Productivity concepts

Productivity Concepts
Presented By :
Md. Mosaruf Hossan
Asstt. Production Manager
1

What is Productivity?
2
 Productivity is a measure of how well resources are
utilized to produce output
 It relates output to input in any system, where some
value addition is performed on the input resource
 Productivity = Output Obtained
Input Expended

Productivity
The Ratio between “ Output of Work “ and “Input of Resouces “
used in the “Process of Creating Wealth”--- ILO.
It is the ratio between the amount Produced ( Output ) and the amount
of Resources ( Input ) used in Production by eliminating Waste.
3
Input Process Output
W
a
s
t
e

Systems Concept
OutputOutputss
SYSTEMSYSTEM
TransformationsTransformations
InputsInputs
ProductivityProductivity
OO
II
Customers
GoodsGoods
andand
servicesservices
Land
people
capital
facilities
equipment
tools
energy
materials
information

Five Concepts of Productivity :
1. Technical Concept
2. Social Concept
3. Economic Concept
4. Management Concept
5. Intregrated Concept
5
CONCEPTS OF PRODUCTIVITY

The term Productivity is a broad concept which
involves two major aspects :
Productivity = Output/Input
Output = Product of an operation, or Result of
special interest.
Input = Resources Consumed in the production ,
or Delivery of output.
6
TECHNICAL CONCEPTS

Drawbacks/problems with Technical Concept :
A.Increase in productivity with poor quality of
Output.
B.Increase Labour Productivity due to labor
reduction may lead to Labor-Management
Conflict.
Overcome : The concept of Productivity as a
broad Social Concept has been introduced.
7
TECHNICAL CONCEPTS

Productivity is, above all, an attitude of mind.It seeks to
continually improve what already exists.It is based on the
belief that One can do things better today than yesterday
and better tomorrow than today.
-Asian Productivity Organization.
Summary :
A. An innate wish of everyone to make tomorrow better than
today.
B. Aims to achieve a better quality of life for all.
8
SOCIAL CONCEPTS

Refers to one’s ability to create more value for Customer.
For most business Organization, the economic goal and basis for
Existance is value Creation.
Economic gains is measured in terms of Value added – Increase
in Inputs or Improvement in Productivity.
In most cases, Increases in value added are attained through
Expansion in Capital and Labor.
However, a productivity driven growth model focuses on
Resource Efficiency and Output superiority to create higher
value to customers.
Hence. A long-term sustainable growth in the Economy cannot
depend on Expansion strategy alone.
9
ECONOMIC CONCEPTS

Management concept
Productivity is , actually, Doing the Right Things Right.
In this Concept, Management need to provides a working
Definition to manage and improve productivity at micro or
Organization Levels.
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MANAGEMENT CONCEPTS

Efficiency VS Effectiveness
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Machines can compressed
100000 Tablet/Hour
Efficiency
( Doing the right Things )
Effectiveness
( Doing things Right )
90000 Tablet = Good
10000 Tablets = Defective
EFFICIENCY vs EFFECTIVENES

Efficiency VS Effectiveness
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EFFICIENCY vs EFFECTIVENES

Productivity = Output/Input
» As an Objectives Social Concept.►
» As a Means Technical Concept.►
» Need to adopt a long term strategy of Productivity-driven
Economic Growth Economic Concept.►
» Improve the quality of Labor and Capital Management►
Concept.
14
INTEGRATED PRODUCTIVITY

Factors affecting Productivity
Ineffective time due to management
• Marketing policy which demands unnecessarily large number of products.
• No standardization of components between as well as within products.
• Failing to meet customer’s requirement from the beginning.
• No plan for flow of work.
• Improper supply of material, equipment.
• Improper maintenance of plant and machines.
• Insufficient safety measures.
• Improper working conditions resulting in interrupted work.
15
Ineffective time within the control of worker
• Taking time off without good cause: by lateness, by idling at work etc.
• Careless workmanship causing scrap or rework.
• Failing to observe safety standards.

Factors affecting Productivity
Work content added due to process
• Incorrect machine (and/or hand tool) used
• Process not operated properly
• Non-optimal layout with wasted movements.
• Working methods of operation causing wasted movements, time and efforts.
16
Work content added due to the product
• The product or its components are designed such that it is impossible to use most
economical manufacturing processes.
• Excessive variety or lack of standardization.
• Incorrect quality standards.

Productivity Improvement techniques aT
Enterprise Level
17
The various Productivity Improvement Techniques at Enterprise Level are:
PARETO
ANALYSIS
ISHIKAWA
DIAGRAM
CHECK
SHEETS
HISTOGRAM

PARETO ANALYSIS
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Also Known as 80-20 Rule or The Law of Vital Few.
•The Pareto Chart, at its simplest, is a Bar Chart in which the bars are sorted
into size order, with the highest bar on the left.
•It works on the 20-80 principle.
•Note that the height of the bars implies priority. Usually the bars are a count
of defects or problems. They may be weighted, for example by cost, to improve
the prioritization effect.

Italian Economist, Vilfredo Pareto , during his teaching
period at University of Lausanne in 1896, Published his
First paper “ Cours d’economie politique “ where he
mentioned that approximately 80% of the Land in Italy
was owned by 20% of the Population.
Pareto developed the principle by observing that 20% of
the Peapods in his garden contained 80% of the peas.
In respect to this Principle, in 1992 , UNDP reported that
Distribution of Global Income is very uneven because
20% of the World’s Richest Population controlling 82.7%
of the World’s Income.
19
PARETO ANALYSIS

20
Why use it?
To focus on the problems/issues that offer greatest
potential for improvement
What does it do?
• Helps identify “the vital few” from “the trivial many”
• Displays the relative importance of problems in a simple
graphical way
• Helps in prioritizing efforts for improvements
PARETO ANALYSIS

Ishikawa Diagram
(Cause and Effect Diagram )
21
•Also known as an Ishikawa Diagram (after its originator, Kaoru Ishikawa,
who first used them in Kobe Shipyards in the 1940s).
•It is also more popularly known as the Fishbone Diagram.
•Common uses of the Ishikawa diagram are product design and quality
defect prevention to identify potential factors causing an overall effect. Each
cause or reason for imperfection is a source of variation.

Ishikawa Diagram
Causes are usually grouped into major categories to identify these sources
of variation :
1. Equipment : Any equipment, computers, tools, etc. required to
accomplish the job
2. Process : How the process is performed and the specific requirements for
doing it, such as policies, procedures, rules, regulations and laws
3. People : Anyone involved with the process
4. Materials : Raw materials, parts, pens, paper, etc. used to produce the
final product
5. Environment : The conditions, such as location, time, temperature, and
culture in which the process operates
6. Management : Money/Power
22
Ishikawa Diagram

Ishikawa Diagram
23

Causes can be traced back to root
causes with the Why-Why Analysis
( 5 Why Technique ) .
The 5 Whys is a question-asking technique used to explore the
cause-and-effect relationships underlying a particular
problem. The primary goal of the technique is to determine the
root cause of a defect or problem.
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Ishikawa Diagram

Let us do a Why Why analysis through following example :
Phenomenon: Failure of motor
• WHY did the equipment fail?
: Because a weld broke on the drive spindle
• WHY did the weld break?
: Because the spindle was out of alignment
• WHY was spindle out of alignment?
: Because the alignment had been adjusted to overcome a build up of ink
• WHY was alignment adjusted?
:Because the ink viscosity had become thicker than the original setting could cope with
• WHY did the ink viscosity become thicker?
: Because the Operator did not know how to measure and control ink viscosity
COUNTERMEASURE: Training for Operators on Controlling Ink Viscosity
25
Cause and Effect Diagram

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Example : 1
Area/Line : Solid-1
Equipment/Process : Cadmach 45
Date : 04.07.2015
Clear Description of The Problem : Granules Loss during auto-Loading.
Short Term Action :
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Why
Why-1 Granules leak out through Sealing
Why-2 Main body and Cover of Hopper is not air tight
Why-3 Improper Sealing of Hopper
Why-4 Erosion
Why-5 Long Time Wear & Tear.
Proposed Preventive Counter Measure : Repairment or Modification .

Check Sheets
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•The check sheet is a form (document) used to collect data in real time at the
location where the data is generated.
•One of the side-effects of using Check Sheets is that the person using it
becomes very aware of the data they capture and can see the patterns of data
building up in front of their eyes
•Check Sheets are sometimes called Data Collection Sheets. They also get called
Tally Charts, although as 'tally' means 'to count', these do not strictly include
such as Checklists and Location Plots.

Check sheets typically employ a heading that answers the Five Ws:
• Who filled out the check sheet
• What was collected (what each check represents, an identifying batch or
lot number)
• Where the collection took place (facility, room, apparatus)
• When the collection took place (hour, shift, day of the week)
• Why the data were collected
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Check Sheet

Why use it?
To provide a structured way to collect quality-related data
as a rough means for assessing a process or as an input to
other analyses
What does it do?
 A Process Distribution Check Sheet measures the frequency of a single item
across a range of measures, visually showing the distribution. These are
interpreted as histograms.
 A Defective Item Check Sheet counts and classifies defects by type, as below.
If the expected ordering is known (e.g. the Pareto sequence), then the Check
Sheet can be designed with this ordering set up, so any deviation may be
detected. These may be interpreted as Pareto Charts (and can be redrawn as
such).
Check Sheets
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Example :
We have to Select 3 Staff for a Special Campaign Production.
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Check Sheets
SN Name Category Staff No
Absenteeism Trend OT Trend
Prese
nt
OT
% of
Attend
ance
% of
OT
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 Mr. Abu Hanif JM 4039 P A P P P P P A P A A P A P 6 3
86 43
2 Mr. Arif Hossain JM 10723 P P P P P P P A A A A A P P 7 2
100 29
3 Mr.Md.Ali Haider CASUAL HA-278 P A P P A P P P A A P A A P 5 3
71 43
4 Mr.Shamresh Howlader CASUAL HA-283 P P P A A A P P P A A A A P 4 3
57 43
5 Mr.Rakib Hossain CASUAL 13774 P P P P P P A P P P P P A A 6 5
86 71
6 Mr.Arman Hossain CASUAL DL-100 P P P A A P P A P P A A A P 5 3
71 43
7 Mr.Ruhul Amin JM 1649 P P P P P A A P P P A A A A 5 3
71 43
8 Mr. Samir Ranjon JM 5527 A P P P P A A A A P P P A A 4 3
57 43
9 Mr. Nasiruddin US 1208 P P P A A P P P P A A A P P 5 4
71 57
10 Mr. Faruque Ahamed JM 7845 P P P A A P P P P P A A A P 5 4
71 57

Histograms
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What is It ?
A bar chart which is used to graphically represent a group of data.
Also, which gives a visual indication of data symmetry
Why use it?
•Gives useful information regarding future process performance
•To visually identify as to how much of the data exceeds required specs,
especially when dealing with large data sets.
Purpose:
•To determine the capability of a process to meet customer requirements.
•To indicate if there has been a change in the process, by comparing it with
standard.
•To show centre, spread, outliers, skewness & multi-modes (if any) in the
given data.

Productivity Improvement at
Workplace
34
The various Productivity Improvement Techniques at Workplace
are:
Lean Manufacturing
Kaizen
Six Sigma
5S Principle

What is Lean Manufacturing?
36
It is a manufacturing philosophy which shortens the time line
between the customer order and the product shipment by
eliminating waste.
Customer
Order
Time
Product
Shipment
Waste
Customer
Order
Time (shorter)
Product
Shipment
Waste
Normal Manufacturing
Lean Manufacturing

8 Types of Wastes ( DOWNTIME )
37

8 Types of Wastes
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1. Overproduction
Overproduction occurs when operations continue after they should have
stopped. The results of overproduction are;
 Products being produced in excess of what’s required
 Products being made too early
 Excess inventory carrying costs
2. Waiting
Also known as queuing, waiting refers to the periods of
inactivity in a downstream process that occur
because an upstream activity does not deliver on
time. Idle downstream resources are then often
used in activities that either don’t add value or
result in overproduction

8 Types of Wastes
40
3. Transport
This is unnecessary motion or movement of
materials, such as work-in-process (WIP) being
transported from one operation to another.
Ideally transport should be minimized for two
reasons;
 It adds time to the process during which no
value-added activity is being performed.
 Handling damage could be incurred
4. Extra Processing
This term refers to extra operations, such as rework,
reprocessing, handling or storage that occurs
because of defects, overproduction or excess
inventory

8 Types of Wastes
41
5. Inventory
This refers to inventory that is not directly required
to fulfill current Customer orders. Inventory
includes raw materials, work-in-process and
finished goods. Inventory all requires additional
handling and space.
6. Motion
This term refers to the extra steps taken by employees
and equipment to accommodate inefficient process
layout, defects, reprocessing, overproduction or
excess inventory. Motion takes time and adds no
value to the product or service.

8 Types of Wastes
42
7. Defects
These are products or services that do not
conform to the specification or Customer’s
expectation, thus causing Customer
dissatisfaction.
8. Non-Utilized Talent
Unable to utilize properly of Human Resources
( Knowledge, Skill & Talent )

Various Tools of Lean
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 Poka Yoke
 Kanban
 5S
 Kaizen

POKA YOKE
 It is a Japanese Term that means ‘mistaking proofing’
 It is a mechanism of lean manufacturing that avoids (Yokeru) mistakes
(Poka)
 Its purpose is to eliminate product defects by preventing, correcting or
drawing attention to human errors
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KANBAN
 Kanban is a scheduling system that tells you what to
produce, when to produce it & how much to
produce.
 It is a system of continuous supply of components &
parts such that workers have what they need, where
they need & when they need.
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KANBAN
Toyota introduced and refined the use of kanban in a relay
system to standardize the flow of parts in their just-in-time
(JIT) production lines in the 1950s.
The approach was inspired by a management team's visit to a
Piggly Wiggly supermarket in the United States, where
Engineer Taiichi Ohno observed that store shelves were
stocked with just enough product to meet consumer demand
and inventory would only be restocked when there was a
visual signal -- in this case, an empty space on the shelf.
47

5 S Principle
50
 5S is a Japanese philosophy focused on planning
organizing & managing the shared workplace like a
shopfloor or office.
 This is achieved by eliminating all wastes, improving flow
of resources (like men & material) & organizing processes
in an efficient manner.

5 S Principle
51
 5S Principle are based on 5 Japanese terms:
1. SEIRI i.e. Sort – Aims at eliminating everything that makes the
workplace cluttered & is not required for the job being
performed.
2. SEITON i.e. Set in Order – Efficient placement, arrangement,
organization & scheduling of equipments / material.
3. SEISON i.e. Shine – Maintenance of tidiness & cleanliness in the
workplace.
4. SEIKETSU i.e. Standardization – Ongoing, standardize, continually
improving Seiri, Seiton, Seison.
5. SHITSUKE i.e. Sustain – Discipline with leadership, involvement of
people , integration into the performance measurement of
people

5 S Principle – Sort & Set Order
52
 Sort - Unneeded tools /parts /supplies removed
 Set in Order - A place for everything and everything is in its place
After 5 SBefore 5 S

5 S Principle – Shine
53
Return items in clean and Polished condition
Disposal of scrap and left –over materials,
 Shine/Sweep/Clean: Fresh, Orderly environment & Mind.
Area is cleaned as the work is performed (best) and a routine
to keep the work area clean.

5 S Principle – Sustain
54
 Standard : To do things right first time, every time
 Sustain : Regards to safety rules , practices and punctuality.
Creating a workplace with good working habits.

5 S Principle – at Texas Die Casting
55
5S was implemented in the Maintenance Dept of Texas Dies & the following
benefits were seen:
 Easier to find tools & parts
Found $1,000 worth of replacement parts which were about to be ordered.
Found 20% more space in maintenance area

5 S Principle – at home
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Before After

58
Six Sigma
 Six Sigma stands for six standard deviations
It is a statistical term which measures how far a process varies from
perfection.
It was started in Motorola, in its manufacturing division, where millions of
parts are made using the same process repeatedly
 The concept was first introduced by Mikel Harry in 1986 .
In 1987, Bob Galvin launched a long term quality program called ‘ The Six
Sigma Quality Program ‘
It provides techniques & tools to improve capability & reduce defects in a
process

59
Six Sigma
 It improves any existing business process by constantly reviewing and re-
tuning the process
 Six Sigma strives for perfection. It allows only 3.4 defects per million
opportunities for each product or service transaction.

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DMAIC Tool Kit for Six Sigma
Define:
 Problem defined
Stakeholder & resources identified
Goal & objective statement
Measure:
Criticality
Performance standard
Data collection system
Analyze:
Root cause
Analysis process mapping
Improve:
 Alternate solution
Implement
Control:
Realize benefits of Implementing
solutions
Close project & communicate
results

61
DMAIC Tool Kit for Six Sigma

Six Sigma
62
Six sigma is a stretch goal of achieving 3.4 defects per million opportunities.
Sigma Permissible defects per million
opportunities
6 sigma 3.4
5 sigma 233
4 sigma 6210
3 sigma 66807
2 sigma 308,537
1 sigma 690000

Six Sigma - in various industries
63
 Adoption of Six Sigma techniques led Wipro to complete 91% of its
projects on time against an industrial average of 55%
 Pharmaceutical companies like Pfizer have used the Six Sigma technique
to reduce wastage & rework involved in production. (typically 5-10% of the
medicines produced are discarded or reworked upon due to defects)
 Major Players of the Airline industry like – Kingfisher, Jet Airways & Indian
Airlines, adopted the Six Sigma technique to reduce number of errors in
handling customer calls & ticketing.

Kaizen
64
Kai = Change
Zen = For Goods
Kaizen = Continuous Improvement

Kaizen
66
Kaizen refers to philosophy or practices that focus upon continuous
improvement of processes in manufacturing, engineering, supporting
business processes, and management
It aims at improving productivity at the workplace by minimizing or
eliminating Troublesomeness (Muri), waste (Muda), Inconsistency (Mura).

Kaizen
67
 Kaizen is a system that involves every employee - from upper
management to the cleaning crew.
 Everyone is encouraged to come up with small improvement suggestions
on a regular basis. This is not a once a month or once a year activity. It is
continuous.
Systematic Approach for a Kaizen :

Benefits of Kaizen ( PQCDSM )
68
 Productivity
 Quality
 Cost
 Delivery
 Safety
 Morale

Productivity
10 laws of productivity :
1. Break the seal of hesitation.
2. Start small.
3. Protoype, prototype, prototype.
4. Create simple objectives for projects, and revisit them regularly.
5. Work on your project a little bit each day.
6. Develop a routine.
7. Break big, long-term projects into smaller chunks or “phases.”
8. Prune away superfluous meetings (and their attendees).
9. Practice saying “No.”
10. Remember that rules – even productivity rules – are made to be broken.
70

10 laws of productivity
1. Break the seal of hesitation.
A bias toward action is the most common trait we’ve found across the
hundreds of creative professionals and entrepreneurs we’ve interviewed.
While preparing properly as you start a new project is certainly valuable,
it’s also easy to lose yourself in planning (and dreaming) indefinitely. We
must challenge ourselves to take action sooner rather than later. The
minute that you start acting (e.g. building a physical prototype, sharing a
nascent concept with your community), you start getting valuable
feedback that will help refine your original idea – and move forward with
a more informed perspective.
71

2. Start small.
When our ideas are still in our head, we tend to think big, blue sky
concepts. The downside is that such thinking makes the barrier to entry –
and action – quite high. To avoid “blue sky paralysis,” pare your idea down
to a small, immediately executable concept. Can you trial the idea of a
multi-day festival with a smaller performance series? Take an idea for a
skyscraper and model it in miniature? Work out the flow of an iPhone app
by sketching on paper? Once you’ve road-tested your idea on a small
scale, you’ll have loads more insight on how to take it to the next level.
72

3. Protoype, prototype, prototype.
Trial and error is an essential part of any creative’s life. As Ze Frank says,
usually when we execute an idea for the first time, it kinda sucks. The
important thing is to synthesize the knowledge gained during the process
to refine the idea, and create a new-and-improved version. Serial idea-
makers like Jack Dorsey, Ben Kaufman, and Studio 7.5 all attest:
Prototyping and iteration is key to transforming a so-so idea into a game-
changing product. Rather than being discouraged by your “failures,” listen
closely and learn from them. Then build a new prototype. Then do it
again. Sooner or later, you’ll hit gold.
To avoid ‘blue sky paralysis,’ pare your idea down to a small, immediately
executable concept.
73

4. Create simple objectives for projects, and
revisit them regularly.
When working on in-depth projects, we generate lots of new
ideas along the way. This can lead to a gradual expansion of
the project’s goals, or “scope creep.” This insidious habit can
make it impossible to ever really complete anything. The best
way to avoid it is to write down a simple statement
summarizing your objective at the start of each project. (If
you have collaborators, make sure there is agreement about
the objective.) And then – this is the part we overlook! –
revisit it regularly. When scope creep starts to happen, you’ll
notice.
74

5. Work on your project a little bit each day.
With projects that require a serious infusion of creative juice – developing
a new business plan, writing a novel, or just learning a new skill – it’s
incredibly important to maintain momentum. Just as when you run
everyday, the exercise gets easier and easier, the same thing happens
with your brain. Stimulate it regularly each day, and those juices start to
flow more freely. As Jack Cheng argues in a great blog post, “Thirty
Minutes A Day”: “the important thing isn’t how much you do; it’s how
often you do it.”
75

6. Develop a routine.
Part of being able to work on your project a little bit each day
is carving out the time to do so. Routines can seem boring
and uninspiring, but – on the contrary – they create a
foundation for sparking true insight. In his recent memoir,
What I Talk About When I Talk About Running, famed
Japanese author Haruki Murakami writes about how a
rigorous routine – rising at 5am and going to bed at 10pm
every day – is crucial to his impressive creative output.
76

7. Break big, long-term projects into smaller
chunks or “phases.”
To help manage expectations and stay motivated for year-
long or even multi-year endeavors, break each project into
smaller chunks that only take a few weeks or a month to
complete. The dual benefit of this approach is: (1) making the
project feel more manageable, and (2) providing incremental
rewards throughout the project. It’s crucial to pause
periodically to take stock of what has been accomplished –
even if there’s a long way to go.
• With projects that require a serious infusion of creative juice,
it’s incredibly important to maintain momentum.
77

8. Prune away superfluous meetings(and their
attendees).
Few activities are more of a productivity drain than meetings.
If you must meet (and this should be a big “if”), make sure
everyone knows what needs to be accomplished from the
outset. If people are present who don’t help out with
achieving that objective, let them leave. Qwest COO Teresa
Taylor, recently interviewed in the NYT‘s Corner Office, starts
her meetings with the question, “Do we all know why we’re
here?” and then follows with, “Does everyone need to be
here?” To trim the runtime of internal meetings, you can also
try the standing meeting.
78

9. Practice saying “No.”
Creative energy is not infinite. Seasoned idea-makers know that they must
guard their energy – and their focus – closely. Take author Jim Collins for
example. His books Built to Last and Good to Great have sold millions of
copies. His business acumen and insights are in demand. Yet, “even
though Collins demands over $60,000 per speech, he gives fewer than 18
per year.” More than that and Collins wouldn’t have enough time to focus
on the research and writing that yield those bestselling books. When
you’re in execution mode, keep in mind that “unexpected opportunities”
also mean distraction from the work at hand. Saying no is an essential
part of the productivity equation.
79

10. Remember that rules – even productivity
rules – are made to be broken.
Did we say develop a routine? This and other tips here should
only be followed as long as they are working. If forward
motion has become impossible with your current routine, try
something else. Whether it’s taking a long distance trip,
popping into the art museum, walking around the block, or
talking to a perfect stranger, make sure you occasionally
shake up your normal routine. Breaking habits offers new
perspective and helps recharge us to head back into the fray.
80

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