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A Quick Guide to Production Department


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This document is a quick guide to fresh engineers, diploma holders and second generation businessmen in understanding the basics of Production / Shop floor management in a manufacturing unit. This document covers the roles and responsibilities, Process flow, Do's and Don'ts, Lean Manufacturing basics, MIS reports to be generated and the analysis to be done. This would serve as an Induction Kit for anyone who is joining as a Production Engineer / Production Supervisor in a typical Indian manufacturing company.

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A Quick Guide to Production Department

  1. 1. Introduction Not quite sure if this book would be useful for you? If you belong to any of the category of people mentioned below, then this book is for you. • Manufacturing Sector expects the engineers to be Job- ready. However, the engineering curriculum does not cover some of the basics required in the manufacturing sector. This book would help in understanding the basics, so that a fresh engineer can perform his role immediately aCer joining the company. Fresh Engineers interested in joining Manufacturing Sector • This book can serve as an “InducIon Manual” for the new Supervisors and Engineers in the shop floor. Job ResponsibiliIes, Do’s and Don’ts for each role, Tools and Techniques and MIS reports are explained for each department. This would help in faster career growth. Supervisors / Engineers in the Shop floor • This book can serve as a Quick Guide to teach you and your employees, the basics of manufacturing organizaIon. This would also help you in managing your people, building the organizaIon to the next level by creaIng strong processes. Second GeneraIon Entrepreneurs
  2. 2. Why this book? • In India, several studies conducted on the employability skills state that only 5% to 10% of the Engineers graduating from the Institutions are Job-Ready / Employable. • Industries require workforce which are readily employable, so that they do not have to spend a lot of money and effort on providing basic skills and on- the-Job training • While large organisations have Induction training for their employees, many medium and small scale companies do not have proper structure to provide this training • Their employees work with very little awareness of the best practices of the industry, making them frustrated, fire-fighting for day-to-day activities and results in a lot of stress • This also makes the companies uncompetitive, leading to poor business performance, resulting in poor motivation of the people, and this becomes a vicious cycle • This publication is aimed at providing the fundamentals of manufacturing management which are not offered by any of our institutions/curriculum to Engineers and Diploma Holders who are joining Manufacturing Industry • This is our initiative to empower the professionals in performing more efficiently and effectively helping the organization and the nation • In addition, this gives us immense satisfaction that we are giving something back to the ecosystem we are working in and are able to challenge the traditional way of thinking and practices.
  3. 3. What do we cover in the book? A typical manufacturing company has Production, Production Planning, Quality, Stores, Purchase, Maintenance, Finance & Accounts, Marketing, Human Resources, Admin , Information Technology and Sales functions. However, we would cover 1. Production 2. Production Planning 3. Purchase 4. Stores 5. Quality 6. Maintenance functions in this book, since these are the major areas, an Engineer or a Diploma/Degree Holder joins after his/her degree.
  4. 4. Structure of the contents Each department / function is explained in the following structure: • General Introduction to the Function / Department • Organization Structure of the function • Roles and Responsibilities of the key incharges • Process Flow in the function • Tools and Techniques required in the function • Pictures and tables to demonstrate the activities (wherever applicable) • MIS Reports and the Analysis to be done • Key Result Areas (KRAs) and Key Performance Indicators (KPIs) for each function
  5. 5. Chapter 1 Introduction
  6. 6. Introduction to Manufacturing Company A manufacturing company produces goods (or materials) using tools, machines, chemical processing, biologic processing or formulation and with the use of people. Manufacturing ranges from small hand-made products (Handicrafts industry) to large / Hitech products (Aircraft / Bullet Trains). A typical manufacturing company procures many parts/raw materials from various suppliers (or Vendors), process them (discrete manufacturing or flow manufacturing) and sell to its customers. These customers may be the end users of the product or may use the products to make other products. For e.g. A glass manufacturing company procures silica and other raw materials for making glass. This can either be sold as end product to consumers (for home use) or to an Automotive factory to use these glass for cars (of course, the grades would be different). In this book, we consider a typical manufacturing company consisting of a few discrete manufacturing processes (e.g., Turning, Milling, Polishing, etc.).
  7. 7. There are various functions (or departments) in organisations, each focusing on a few major activities. 1. Production Function - Focuses on the manufacturing of the product 2. Purchase Function - Focuses on purchasing / buying the raw materials and consumables required for the production 3. Stores Function - Focuses on the receiving the incoming raw materials, holding them properly and issuing them to the user department when there is a need for the materials 4. Maintenance - To keep all the machines ready for production. To prevent break-downs of machines, Each function consists of a group of persons (or a single person) performing their tasks. A company is headed by the CEO / Directors / Owners depending on its structure. Various levels of managers across various functions report to the CEO / Directors. Supervisors / In-charges report to the managers and they manage the operators (shop floor employees across various levels) Pic: 1.1 - Various Levels of Employees CEO / VP / Promoter Process steps that take time, (VA) A process step that transforms or shapes a product or service, which is eventually sold to a customer. resources, or space, but do not add value to the product or service. Directors / Promoters Managers (various levels) Supervisors / Incharges (various levels) Operators / Employees (various levels) Senior Management Level Middle Management Level Junior Management Level Employee Level
  8. 8. Internal and External Customer External Customer: A customer who buys the product / services of a company. All the functions in an organization exist to fulfil the need of these end customers. This customer is not a part of your organization but pays your organization for the products / services. Internal Customer: A member of the organization providing goods / services for other members inside the organization. For e.g. Stores issues raw materials to production. So Production function is a customer for Stores. Inside Production function, each operation sends the product to the next operation thus becomes a supplier to the next operation. These are called Internal Customers and Internal Suppliers. Pic: 1.2 - Internal Suppliers and Customers Stores Production Internal CustomerInternal Supplier
  9. 9. Goals of each department Each department works with a set of goals which are aimed at satisfying / exceeding their Internal / External customer’s needs. These goals are called Key Result Areas (KRA’s) or Department Objectives / Targets. Generally there are 6 major categories of objectives / KRAs: 1. Productivity 2. Quality 3. Cost 4. Delivery 5. Safety 6. Morale These KRA’s needed to be measured through various Indicators. They are called Key Performance Indicators (KPIs). For e.g. Productivity can be measured by indicators like “output per person per day”, “Planned production vs. achieved production”, “Utilisation of the machine”, etc. Similarly, Quality can be measured by “Reduction in defectives”, “% of yield”, etc. All the departments will have KRAs and KPIs to measure their performance. Generally there would be a Monthly Review Meeting (MRM) to discuss the performance and take corrective and preventive actions.
  10. 10. Chapter 2 Production
  11. 11. Introduction to Production Function •Production is one of the most critical functions in any manufacturing organization. This function represents the set of activities through which the product is made and delivered according to the client’s requirements. • Production function normally encompasses various departments/shops based on the type of products and the operations involved (e.g. press shop, machining, polishing, plating, assembly etc.). • The components move from each shop/machine to the other, once the required operations are completed. (Sometimes the product would be stationary and all the operations would be carried out on the product. E.g. Ship building). • At each stage the component is added value (value addition) and transforms to a finished product. Pic: 2.1 - Value Addition Processes Value Addition at every stage
  12. 12. Production Function Department Structure • This is a standard structure for Production Function • Production Manager reports to the CEO of the company • In a large organization, Production Manager might report to Factory Manager / Manufacturing Head • There can be a few Production Supervisors ( for different lines / processes / shop floor) reporting to the Production Manager • Each Production Supervisor would typically focus on a single / specific processes or line • (A typical functional hierarchy is mentioned here. It may vary according to each organization) Pic: 2.2 - Organization Structure of Production Function CEO ProducIon Manager ProducIon Supervisor ProducIon Supervisor ProducIon Supervisor
  13. 13. Production Function Responsibilities of Production Manager • Productivity - Achieving the production targets set by the management / orders given by the customers through optimum usage of the resources (men/materials/machine). In some companies Production Planning would be done by the manager. • Quality - Meeting the Quality requirements set by the customer and taking steps to exceed the quality requirements • Cost – Minimizing cost ( reducing defects , process modifications/improvements ) • Delivery - Overall responsibility of delivering finished goods as per the customer’s requirements – Ensuring 100% on-time delivery • Safety & Morale – Ensuring Safety of personnel and improving Morale of the employees - by implementing rewards and recognition for Attendance, Suggestion Schemes, Performance, etc.
  14. 14. Production Function Responsibilities of Production Supervisors •Planning for Production– Allocation of resources (Men/Machine/Materials) properly so as to ensure smooth production flow and delivery •Productivity – Ensuring a smooth production flow / dynamically monitoring the production process and make necessary changes to achieve production based on the requirements •Quality – Measuring and analyzing the current quality levels and taking necessary steps to improve and achieve the quality levels set by the management •Cost – Taking necessary steps to reduce costs – reducing defects / improving processes •Delivery – Ensuring 100% on-time delivery. Analysis of delays in deliveries and improvement from the current situations •Safety & Morale – Achieve 0% Accidents and Incidents(Near-miss). Improving Morale of the personnel
  15. 15. How Production Department Works? Process 1: • Production Plan created by the Production Planning department / Production Manager and it is sent to the production supervisors • Production supervisors plan for the day’s production based on the weekly / monthly production plan Pic: 2.3 - Production Process 1
  16. 16. How Production Department Works? Process 2: •Order-wise requirements of all materials (calculated from the Bill of Materials (BOM)) would be obtained from the stores using Materials Issue Requisition (MIR) slip •Once the materials are obtained they are sent to the respective process/machines for completion. The Supervisor also creates a job card for each lot/item, which travels along with the product throughout the entire processes. Pic: 2.4 - Production Process 2
  17. 17. How Production Department Works? Process 3: •Producing right quality items is the responsibility of the operators of the shop floor. •Quality is measured at each stage so as to reduce reworks and rejections (however, please note, Inspection by a separate inspector is a non-value added activity and has to be eliminated. It might take a long time for a Small / Medium size company to reach this goal) •At the end of the production process, necessary quality checks are made and the products are packed and delivered to the customers. •Please note this is only the basic process. There may be delays / stoppages in production due to quality issues, non-availability of materials, absenteeism, etc. Pic: 2.5 - Production Process 3
  18. 18. Shop Floor Management Daily Production Plan •Monthly Production plan is broken down into Weekly and Daily production plan for each shop/operation by the Production manager and sent to the respective Production Supervisors •Production Supervisor should plan for one day’s production in advance. i.e. tomorrow’s production plan should be planned today by the individual supervisors (before office closing hours) •Once the Production supervisors obtain the daily production plan, they should plan & allocate the resources ( men, machine and materials) for the next day’s production •Resources and work allocation should be carried out in the previous day evening Pic: 2.6 - Production Plan Formulation
  19. 19. Shop Floor Management Daily Production Plan •Once the employees enter the shop floor, they should be able to pick up the materials and start working. (If the production plan happens in the morning, the company loses around 20 minutes before employees are allocated some job and start working). • Supervisor allocates the job to the right personnel and follows it so that the production target for the day is achieved. • In case of any changes in the plan, he/she consults with the Production manager immediately and makes necessary changes in the shop floor • He/she informs the employees and arranges materials accordingly • At the end of the day, Production status is reported to the Production Manager and the plan for the next day is done Work should start immediately (at the start of the shift)
  20. 20. Best Practices in Manufacturing Communication: Supervisors can use Whiteboards to update the daily production requirement. Operators can see the whiteboards and start the production (without asking the supervisors) Team Work: Supervisors can create various teams in the companies (across levels) for solving quality, productivity and delivery issues. These can be cross- functional teams (from various functions) Daily Production Meeting: Supervisors should conduct a daily / shift-wise production meeting at the start of the shift (for 10 minutes). This meeting is between the supervisor and the operators. In this meeting, supervisor explains the planned production for the day, previous quality issues faced and how to avoid them, any other updates from the company, etc. Lean Manufacturing Principles: Supervisors should learn and implement Lean manufacturing principles in the company such as Single Piece Flow, 5S, SMED and many other tools. Lean Manufacturing helps in improving the Productivity, Quality and On-Time Delivery thus increasing Customer Satisfaction. Some of the tools of lean manufacturing are explained in the coming section.
  21. 21. Lean Manufacturing What is Lean Manufacturing? •A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product or service at the pull of the customer. •This is one of the most important knowledge a shop floor manager or supervisor should know about •Lean Manufacturing would help in improving the Productivity, Delivery and Quality of the products and would help in reducing the costs Pic: 2.7 - Value Added and Non-Value Added Activities Value Adding Activity (VA) A process step that transforms or shapes a product or service, which is eventually sold to a customer. Non-Value Added Activity (NVA) Process steps that take time, resources, or space, but do not add value to the product or service. Only the activities that bring change to the product or service (Physically or chemically) NVAs are called “Wastes” in Lean Manufacturing
  22. 22. 7 Wastes in Lean Manufacturing Lean Classifies wastes into 7 major categories. They are listed below: 1. Transportation 2. Inventory 3. Motion 4. Waiting 5. Over Production 6. Over Processing 7. Defects
  23. 23. 1. Transportation Definition • Any unnecessary material movement that does not support the lean manufacturing system • Please note, whenever a material is transported from one place to another, there is no physical or chemical change happening in the material. So it should be considered as a waste How to spot this waste in the shop floor? • Presence of multiple storage locations • Multiple handling of materials • Conveyors, Extra carts, forklifts, dollies, material racks • Machines and processes not created for “Flow of the Products” • Return of materials not used in production • Batch processing and WIP present in the shop floor
  24. 24. 2. Inventory Definition • Any unnecessary supplies or materials that do not support the ‘Just In Time Production System’ • Note that whenever a material is stored as an inventory, there is no physical or chemical change in the product. So it is a waste • It is important to manage the inventory of a company as it helps in better working capital management (more details in Purchase Section) • However, the company may store higher inventory of some critical materials (imported items / seasonal items) How to spot this waste in the shop floor? • Multiple stores in the unit • Extra space on receiving docks • Build up of material between processes (WIP) • Not using FIFO (first-in-first-out) • Extensive rework when problems surface • Additional material handling
  25. 25. 3. Motion / Movement of People Definition • Any movement of people which does not add value to the product • Note that whenever a person is moving to take a material or a tool, there is no change in the material. So it is a waste • Work stations should be designed in such a way that all the required tools and materials should be available to the operator (hands-reach) without bending, climbing or twisting How to spot this waste in the shop floor? • Searching for tools and parts • Excessive reaching or bending • Material too far apart (walk time) • Extra equipment for moving parts • Picking up things only to set them back down • Large batch sizes • Poor plant layout
  26. 26. 4. Waiting Definition • Idle time in which no value added activities take place • Person waiting for materials and machines • Machine waiting for materials and persons • Material waiting for machines How to spot this waste in the shop floor? • People watching machines run • Lack of concern for equipment breakdowns or downtime • Long setup times • Unbalanced operations (difference in cycle times) • Inconsistent work methods • WIP between processes
  27. 27. 5. Over-Production Definition • Producing more than needed • ‘Work ahead’ than the “Internal customer” • Producing at a faster pace than needed, resulting in piling up of materials as WIP How to spot this waste in the shop floor? • Inventory stockpiles • Extra or Over-capacity equipment • Unbalanced material flow and confusion about priority • Extra parts storage racks and manpower • Building stocks ahead of demand • Large lot sizes or batch processing
  28. 28. 6. Over Processing Definition • Effort which adds no value to a product or service • Work that can be combined with other processes • Enhancements that are transparent to the customer (not valued by the customer) How to spot this waste in the shop floor? • Lack of clear customer expectations • Lack of customer input concerning requirements • Redundant approvals • Extra copies and excessive information • Inefficient policies and procedures • Multiple Tests • Multiple Inspections • Multiple Counting of materials at various stages
  29. 29. 7. Defects Definition • Repairing a product to fulfil customer requirements • Reworking on the service, a customer asked for. How to spot this waste in the shop floor? • Extra floor space, tools and equipment - for reworking • Extra manpower to inspect, rework and repair • Additional inventory • Inconsistent quality • Large number of scrap / defectives in the shop floor • Incapable processes with excessive variation • Inadequate tools or equipment for measuring These are the seven wastes present in any organization according to lean principles. Many of these wastes can be eliminated or reduced.
  30. 30. Lean Manufacturing 3 Types of Wastes (NVAs) • Muda: Non-Value Added Activities (as explained in the previous pages) • Mura: Process Variations / Inconsistencies in operation • Muri: Physical Strain / Fatigue caused to the people or machines (by overloading, poor working conditions, etc.) Some of the Lean Tools used regularly in the manufacturing units are given below. This book would cover only 5S in detail. Few other tools are given a basic introduction. Pic: 2.8 - Lean Tools
  31. 31. 5S - Five steps for better workplace management • 5S is fundamental to all improvements • A set of five words starting with “S” – about good housekeeping • Five steps to the culture of keeping the work place clean, organized, systematic and safe • A foundation for all improvements and Lean Journey • Every employee is engaged and empowered. • Reveal the wastes and their causes in the process not seen by observation. • To put it simply “Work Place Organization” • It is a Continual Process CULTURE OF THE COMPANY 1. SORT Separate Items which are required and unwanted. Dispose unwanted items 5. SUSTAIN Regular Audits, Internal Competitions, Rewards and Recognitions. Continual Improvement 2. SET IN ORDER Arrange all items based on the place of requirement. Facilitate easy retrieving 3. SHINE Keep the workplace clean (everyday). Follow Preventive Maintenance 4. STANDARDIZE Create Visual Indicators, SOPs and ensure training for all employees regularly Pic: 2.9 - 5S and its explanation
  32. 32. Steps in implementing 5S STEPS EXPLANATION 1S SORT Separate items which are required and not-required. Dispose the items which are not required 2S SET IN ORDER Arrange all the required items based on the place of requirement. “A place for everything and everything in its place” 3S SHINE Clean your machines, workplace daily. Follow a cleaning schedule. Follow Preventive Maintenance for machines 4S STANDARDIZE Ensure all the above 3 steps are followed by all the employees in the company. Create Visual Indications, SOPs so that the best practices don’t slip back to original condition. 5S SUSTAIN 5S becomes a culture of the organization. Regular audits, training, competitions, rewards and recognitions ensure that 5S sustains in the organization. There is no end to 5S and has to be a part of continual improvement
  33. 33. 1. Sort Removing unwanted items from the Workplace • Take Pictures of the area and display in a notice board • Include all the members in the area for segregating required and not- required items in their workplace • All the unwanted items to be sent to a Red Tag Area with a red tag mentioning the date, item name and why it is not required • Senior Management to focus on disposing the items in the Red Tag area • Items that are required only would go to the subsequent steps How to Sort? • Determine red tagging criteria for all non-moving items • Designate red tag holding area in the stores separately • Identify person responsible for holding area • Obtain red tags • Talk to area workers • Perform red tagging and record tagged items in log book
  34. 34. 2. Set In Order Arrange the necessary items in a specific place (based on the usage) • After Sorting out the unnecessary items, the needed items have to be classified by use and arranged as following: • To minimize search time and effort • To facilitate easy return and retrieval • Place each item in a designated address • In simple terms - “A place for everything and everything in its place” Frequently Used Items Moderately Used Items Rarely Used Items Store it in the Point of Use Store it at a small distance Store it in a central location / store
  35. 35. 2. Set In Order Few examples to show how the tools can be arranged near the machines / Point of Use Pic: 2.10 - Images for Set In Order
  36. 36. 3. Shine Clean the machines, Shop floor and Inspection - Everyday • This involves cleaning the work place including machines, tools, floor, walls and other areas. • On cleaning, a lot of abnormalities like cracks, loose nuts, bolts, oil leakage, loose wires, etc. can be detected and rectified • Follow Preventive Maintenance Check list provided by the Machine Manufacturer - as per the schedule • Cleaning is inspection and a health check • Clean your workplace everyday - for 10 minutes • Maintain a cleaning schedule at your workplace How to Shine? • Give 10 minutes every day (start and end of the shift) to all the operators for cleaning the machines and the shop floor • It is the responsibility of the shop floor employees to keep the factory clean • Managers and Supervisors should also be present and perform the cleaning in their respective areas
  37. 37. 4. Standardize Follow the first 3 steps every day. Ensure all the employees can easily follow the 3 steps by providing visual indications, pictures, colour codes, etc. • Maintain all the above “3S” regularly by providing Visual Controls, SOPs, Training and use of colours for identification • This stage is when 5S become systematic and starting to become the culture of the organization How to Standardize? • Each area would have a person responsible for 5S • Provide Visual Indicators in the shop floor • Give Colour coding for the tools / raw materials and WIP items • “Before” and “After” pictures can be displayed • Standard Operating Procedures (SOP) to be created in local languages and all operators have to be trained on the same • Use whiteboards to display order status
  38. 38. 5. Sustain Follow the 4 steps every day. Conduct regular audits, internal competition between different zones. Encourage participation of the employees • 5S becomes a part of the every day work and becomes a culture of the company • The greatest benefits of 5S are to help people to focus and acquire Self- Discipline. People’s behaviour is a reflection of the environment • Conduct regular 5S audits and recognise the teams and give them rewards. Conduct 5S Slogan Contests, Internal competitions, regular training to employees (by employees) • Everybody should feel proud to take part in 5S How to Sustain? • Senior Management participation is very essential for the sustenance of 5S • Regular discussions with the employees on improving 5S in the factory • Displaying the 5S Audit results • Providing a healthy and safe work place
  39. 39. Lean Tools - Single Piece Flow Producing in Batches lead to high Work In Progress (WIP) • Single Piece Flow reduces WIP and improves Quality, and generates more space. • Quality will improve in Single Piece Flow because, internal customer immediately notices the defect whereas in batch production, the defect is noticed after the entire batch is produced Batch Production Single Piece Flow Production • Less WIP • Improvement in Quality • Less space utilization Pic: 2.11 - Batch Production Vs. Single Piece Flow Operation 1 Operation 2 Operation 3 Input Output Input Input Output Output WIP in all operations, More transportation and space utilisation Operator 1 Operator 3 Operator 2 Operation 1, 2 & 3 Input Output Operator 1 Operator 2 Operator 3
  40. 40. Lean Tools - Single Minute Exchange of Dies (SMED) • In a single piece flow production, there is a need to quickly change from one SKU/article production to another (delay in changing over, reduces the overall output) • So the question is, how quickly can a change-over be done, so that the line does not stop for long time? • Single Minute Exchange of Dies (SMED) is a tool helps in reducing the change-over time between articles • Change-Over / Set-up time is the time taken between the last good piece (of the previous article) to the first good piece (of the new article). This includes the time taken for checking the quality How to do SMED? • Take a video shoot of the current change-over process • Analyse the video (with the persons in involved in the changeover) • Separate Internal and External activities. Internal activities are done inside the machine (e.g. Tool change) and External activities can be done outside the machine (e.g. Arranging the tools required near the machine) • Reduce the internal activities and eliminate the external activities • Practice and record the “Before” and “After” changeover times and gradually reduce them to less than 1 minute
  41. 41. MIS Reports The list below explains the various MIS Reports to be generated in the Production Function. Please note this is only a guideline, List of MIS reports vary across organisations. Report – 1 Report Name Monthly Production Report Nature of Report Product-wise / order-wise Frequently Monthly Who Prepares it Production Supervisor Analysis Points What is the achievement against the plan? For each product / product categories ? Is there a trend that week-end production is higher than other days? Last week's production is higher than other week's production? Why? How to avoid this in the future? Report – 2 Report Name Monthly Rejection / Rework Report Nature of Report Product-wise / order-wise Frequently Monthly Who Prepares it Production & Quality Supervisors Analysis Points What is the rejection rate / rework rate? Is this monitored frequently? What is the pareto of defects? How long the major defect is figuring in the list? When and How, it will be resolved?
  42. 42. MIS Reports Report - 3 Report Name Daily Production Report Nature of Report Product-wise / order-wise Frequently Daily Who Prepares it Production Supervisor Analysis Points Achievement of day's production vs. planned target. Are there any bottlenecks in achieving the target? If any product does not meet the plan, move it to the next days' plan? Any quality issues faced? How the issue is solved? What is the corrective and preventive solution? Report - 4 Report Name Delivery Performance Report Nature of Report Product-wise / order-wise Frequently Monthly Who Prepares it Production Supervisor Analysis Points What is the delivery performance against the customer orders? How many orders are delivered On-Time-In-Full (OTIF).( OTIF means, all the customer's orders have been sent on time and the full quantity ordered )
  43. 43. MIS Reports Report-5 Report Name Accident / Near Miss Report Nature of Report zone-wise / operation-wise Frequently Monthly Who Prepares it Production Supervisor Analysis Points How many accidents occurred in the month? How many near- miss happens in a month? Are they being recorded? How to eliminate the accidents in the future? Corrective and Preventive Action? Report-6 Report Name 5S Audit Report Nature of Report 5S scores of various zones Frequently Monthly Who Prepares it Production Supervisor Analysis Points Are the shop floors looking tidy and clean? Is it visibly managed? Is the area free of dust? Are the machines cleaned daily?
  44. 44. What are the KRAs and KPIs of your department? Goals / KRAs Performance Indicators / KPIs Measure Current Level Target Productivity Achieving Monthly Production Targets in % 85% 100% Productivity Achieving planned export orders production Quality Reducing Rejections in PPM 5000 1000 Quality Reducing Reworks in PPM 20000 10000 Delivery Achieving On-Time Delivery in % 90% 100% Prepare your department’s KRA’s in case your organization does not have them.
  45. 45. Learning’s from the Section Now that you have completed this Production Section, Are you clear on the following? • Key Processes in the Production Function • Roles and Responsibilities of Production Team Members • Shop Floor Management • Difference between Value Added and Non-Value Added Activities • 7 Wastes of Lean Manufacturing • Importance of Single Piece Flow Manufacturing • Implementation of 5S at the shop floor • MIS reports to be generated and the analysis to be done
  46. 46. Interested in buying the book? Please click on any of the following links to buy. View Listing Print Book India View Listing View Listing View Listing View Listing View Listing International Print Books View Listing View Listing eBooks View Listing View Listing View Listing View Listing
  47. 47. Meet the Author Ananth is the CEO and Founder of Hash Management Services LLP. Ananth has over 12 years of experience in the areas of Implementation of Lean Manufacturing concepts, Quality Management, and Supply Chain Management initiatives. Some of the industries he works/worked with are Textiles, Leather and Footwear, Castings and Forgings, Electronic Equipment, Pump Manufacturing, Fabrication, White goods, Heavy Engineering and Light Engineering sectors. He works with Industry bodies like CII, FICCI and currently working with International Labour Organization (ILO) for implementing their SCORE Program in a few auto ancillaries in Chennai. He is also an empaneled Lean Manufacturing Consultant (LMC) with National Productivity Council (NPC) and working on Implementing Lean Manufacturing principles for Small and Medium Enterprises. Prior to Hash Management Services LLP, he was a consultant with Deloitte`s consulting practice in India. Earlier, Ananth worked with Titan Industries Ltd, as a Senior Engineer responsible for productivity improvements and various quality initiatives. He holds PGDM from the IFMR, Chennai and a Bachelors degree in Mechanical Engineering from the Government College of Engineering, Tirunelveli. Please visit to know more about the ways we help manufacturing companies improve their operations and profitability.
  48. 48. Disclaimer The advice contained in this material is for a specific audience and not for general public. The author designed the information to present his opinion about the subject matter. The reader must carefully investigate all aspects of any business decision before committing him or herself. The author obtained the information contained herein from sources he believes to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy. The author particularly disclaims any liability, loss or risk taken by individuals who directly or indirectly act on the information herein. The author believes the advice presented here is sound, but the readers cannot hold him responsible for either the take or the result of those actions.
  49. 49. Acknowledgements This book would not have been a reality without the contribution from V N Shiju who worked with me on creating the contents, L S Kannan contributed Quality section, Veerabaghu, my mentor and guide, my wife Jeyalakshmi who helped me in documentation, A S Senthil Kumar, my first boss who helped me understand the basics of manufacturing industry, my colleagues at Deloitte and all my friends who stood by me during some of the toughest times in my life.