Productivity

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Productivity

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  • Productivity

    1. 1. Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 3-1 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Operations Management Productivity
    2. 2. Measurement Problems <ul><li>Quality may change while the quantity of inputs and outputs remains constant. </li></ul><ul><li>External elements may cause an increase or decrease in productivity. </li></ul><ul><li>Precise units of measure may be lacking </li></ul>
    3. 3. <ul><li>Productivity: </li></ul><ul><ul><li>“ production per unit of effort” effectiveness of productive effort </li></ul></ul><ul><li>Work organisation: </li></ul><ul><ul><li>quantitative techniques to optimise productivity </li></ul></ul>Productivity
    4. 4. Efficiency = Output / Unit Input Efficiency is “doing the thing right” Effectiveness is “doing the right thing” Productivity is an efficiency measure usually quoted as: Productivity = Output / Worker hours Machine productivity = output / machine hours or = output / capital invested Energy productivity = output / kilowatt-hours Productivity
    5. 5. Productivity Variables <ul><li>Labor - contributes about 1/6 of the annual increase </li></ul><ul><li>Capital - contributes about 1/6 of the annual increase </li></ul><ul><li>Management - contributes about 2/3 of the annual increase </li></ul>
    6. 6. Service Productivity <ul><li>Typically labor intensive </li></ul><ul><li>Frequently individually processed </li></ul><ul><li>Often an intellectual task performed by professionals </li></ul><ul><li>Often difficult to mechanize </li></ul><ul><li>Often difficult to evaluate for quality </li></ul>
    7. 7. Productivity Growth 1971- 1992 Transparency Masters to accompany Operations Management, 5E (Heizer & Render) © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Whole Economy Manufacturing % per year
    8. 8. Whirlpool Transparency Masters to accompany Operations Management, 5E (Heizer & Render) © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Productivity improved Costs were pared Wages increased
    9. 9. Multi-Factor Productivity Multi-Factor Productivity: which facility has the best productivity? Stator Pty Ltd Rotor Pty Ltd Workers 500 100 Labour costs $20,000/yr/worker $20,000/yr/worker Equipment $1m $5m Output 1500 1200
    10. 10. Multi-Factor Productivity Stator Pty Ltd Rotor Pty Ltd Normal (labour) productivity = 1500 / 500 = 3 machines / worker = 1200 / 100 = 12 machines / worker Capital productivity = 1500 / $1m = 15 machines / $100k = 1200 / $5m = 2.4 machines / $100k Labour/capital multi-factor productivity = 1500 / (500x(20k) + 1000k) = 136 machines / $1m = 1200 / (100x(2k) + 5000k) = 171 machines / $1m
    11. 11. Productivity Summary <ul><li>When analysing productivity the measures must be appropriate </li></ul><ul><li>These measures must be quantitative so that changes can be monitored </li></ul><ul><li>Quality should not be traded for productivity </li></ul>
    12. 12. Work Study
    13. 13. Work Study Work study Method study Work measurement
    14. 14. Method Study Method study is the systematic examination of the way work is carried out currently . There are a number of stages through which the study must progress: <ul><li>Selection process </li></ul><ul><li>Data recording </li></ul><ul><li>Analysis and development of New Method </li></ul><ul><li>Brainstorming </li></ul>
    15. 15. Selection Process The selection may be prompted by any of a number of factors: <ul><li>Management directive </li></ul><ul><li>Consultant report </li></ul><ul><li>Quality circle </li></ul><ul><li>Perceived bottleneck </li></ul><ul><li>Under-utilised equipment </li></ul><ul><li>Poor quality </li></ul><ul><li>Frequent failure </li></ul>
    16. 16. Data Recording Process charts – five basic symbols are generally used <ul><li>Transport </li></ul> Permanent storage O Operation D Delay or temporary storage □ Inspection
    17. 17. Example
    18. 18. Example
    19. 19. Example
    20. 20. Example
    21. 21. Layout Example
    22. 22. Layout Example
    23. 23. Layout Example
    24. 24. Travel Chart
    25. 25. Analysis of new method <ul><li>Have an open mind </li></ul><ul><li>Employ a systematic approach </li></ul>One technique used to force a systematic investigation of the data is a set list of questions What is being done? Why is it being done? What else could be done? What else should be done? When is it done? Why then? When else could it be done? When should it be done? Where is it being done? Why there? Where else could it be done? Where should it be done? Who does it? Why that person? Who else might do it? Who should do it? How is it done? Why that way? How else can it be done? How else should it be done?
    26. 26. Brain Storming Brainstorming may help in the development of new ideas and methods
    27. 27. Installation of new method The new method will need to be: <ul><li>Sold to all those concerned </li></ul><ul><li>Implemented efficiently </li></ul><ul><li>Supported with training </li></ul><ul><li>Monitored to ascertain the level of improvement </li></ul>
    28. 28. Work Measurement (Time and Motion Study <ul><li>Reasons why work rates may need to be measured </li></ul><ul><li>Scheduling and loading </li></ul><ul><li>Line balancing and manning levels </li></ul><ul><li>Method comparison </li></ul><ul><li>Budget and cost control systems </li></ul><ul><li>Estimation costs and loads </li></ul><ul><li>Financial incentives </li></ul>
    29. 29. Time Study The rating for a qualified worker is 100 basic time = observed time (% rating) for work element 1 = 1.7 x (135/100) = 2.3 minutes Work element Observed time Rating 1 1.7 135 2 3.1 90 3 1.2 80
    30. 30. Time and Motion Study The observed time only covers actual work done. Other factors <ul><li>Relaxation allowance </li></ul><ul><li>Contingency allowance for extra work </li></ul><ul><li>Contingency allowance for delay </li></ul><ul><li>Unoccupied time allowance </li></ul><ul><li>Interference allowance </li></ul>
    31. 31. Time and Motion Study Work content = Basic + Relax’n allowance + Contingency allowance (extra work) (% of basic time) (% of basic time) Standard time = Work content + Contingency allowance + Unoccupied allowance (% of work content) (% of work content) + Interference allowance + ……... (% of work content)
    32. 32. TMS <ul><li>Relaxation 12% </li></ul><ul><li>Extra work 3% </li></ul><ul><li>Delay 4% </li></ul><ul><li>Unoccupied time 3% </li></ul><ul><li>Interference 2% </li></ul>Observed time element (min) Rating Basic time (min) 1.3 90 1.17 4.2 110 4.62 8.6 115 9.89 9.3 85 7.9 5.2 125 6.5
    33. 33. TMS Work content = 30.08 + 3.61 + 0.9 = 34.59 Standard time = 34.59 + 1.38 + 1.04 + 0.69 = 37.7 minutes
    34. 34. Activity Based Sampling <ul><li>Explain with the operators the reason for the study </li></ul><ul><li>Examine the process and identify activities </li></ul><ul><li>Carry lut a preliminary study of the activities to establish the number of observation required for a full study (100 – 200 random observations) </li></ul><ul><li>Determine the number of observations required to establish a given degree of accuracy in the amount of down time observed </li></ul>
    35. 35. ABS Number of observations required: N = 4P(100 – P) / (L2) where P = percentage occurrence of desired activity L = required percentage activity If a preliminary study indicated that the machine was productive for 35% of the time, and a full study was required to give an answer of 2% accuracy on this figure. Then N = 4 x 35(100 – 35)(2 x 2) = 2275 observations
    36. 36. Pre Determined Motion and Time Study Human movement is broken down and classified For each movement there is an associated time, usually expressed as a Time Management Unit (TMU) where: 1 TMU = 0.00001 hours = 0.036 seconds
    37. 37. Nine Categories of MTM-X <ul><li>Category Description Code </li></ul><ul><li>Get Reach to and grasp an object GE (easy) GD (difficult) </li></ul><ul><li>2 Put Move and position an object PE (easy) PD (difficult </li></ul><ul><li>3 Regrasp Shift the grasp on an object R </li></ul><ul><li>4 Handle weight Apply force to move an object HW </li></ul><ul><li>5 Apply pressure Apply force where no movement is involved A </li></ul><ul><li>6 Eye action Eye focus and eye travel E </li></ul><ul><li>7 Step A pace in walking S </li></ul><ul><li>8 Bend down Bend the trunk BD </li></ul><ul><li>9 Arise from bend Straighten the trunk AB </li></ul>
    38. 38. MTM-X GE GD PE PD N 8 17 5 19 F 16 25 14 28 X 13 20 9 22 In addition to the initial classification, some may be qualified by the distance of reach or weight: F = far N = near X = variable

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