Variety reduction and standardization
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This document discusses variety reduction and standardization. It defines variety reduction as reducing the number of product, material, or part types within a given range to a lesser number that meets needs. Standardization establishes basic specifications for common product characteristics like size and shape. Simplification eliminates unnecessary varieties, sizes, and features to make products simpler. Benefits include better service, productivity, understanding problems, and inventory control with lower costs. Standardization aims for overall economy, convenience, uniformity, and quality assurance. It discusses levels, types, advantages, and disadvantages of standardization.
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Variety reduction and standardization
- 1. VARIETY REDUCTION AND STANDARDIZATION Navindu Munidasa MSc Logistics and Supply Chain (UK) (Reading); BSc Operations and Logistics Management (UK); Dip in Computer Hardware and Networking ; Certificate in Motor Mechanism (CGTTI); Certificate in Workshop Practices (CGTTI)
- 2. VARIETY REDUCTION The process of standardization logically leads to simplification and variety reduction. Variety reduction defined as a form of standardization consisting of the reduction of the number of types of products, or materials or parts within a definite range to a lesser number which is adequate to meet prevailing needs at a given time.
- 3. HOW TO CONTROL VARIETY? By Simplifications By Standardization By Specialization
- 4. STANDARDIZATION • It is the process of establishing basic specifications for a set of commonly used characteristics of size, shape and performance for products. SIMPLIFICATION • It is defined as the elimination of superfluous varieties, sizes, dimensions, features etc., making the design, assembly or product simpler, less complex and less difficult to use.
- 5. BENEFITS OF VARIETY CONTROL • Better after sales service • Greater technical productivity • Better understanding of technical problems • Lesser set up times • Higher equipment utilization • Reduction in inventory • Higher equipment utilization • Easier inventory control • Better use of storage space • Quicker stock-checking • Reduction in purchasing effort
- 6. HOW STANDARDIZATION REDUCES COSTS? • It enables a firm to purchase fewer items, in large quantities and at lower prices • Due to fewer items are processed and stocked reduces purchasing, receiving, inspection and payment costs • Inventory control becomes easier and less costly because of stocking of fewer items
- 7. AIMS OF STANDARDIZATION To achieve maximum overall economy To ensure maximum convenience in use To ensure uniformity and reduction in variety To help in quality assurance by improving quality in every activity
- 8. OBJECTIVES OF STANDARDIZATION To standardize the materials used in firm To bring the company standards in line with the industry standards To reduce the varieties of raw materials and components used To establish the specifications of materials to be purchased
- 9. LEVELS OF STANDARDS Individual Standard Company Standard Industry Standard National Standard International Standard
- 11. ADVANTAGES OF STANDARDIZATION Fewer parts to deal with inventory and in manufacturing Simpler and more routine purchasing, handling and inspection procedures Facilitates longer production runs and automation Helps in better understanding of customer requirements
- 12. DISADVANTAGES OF STANDARDIZATION Decreased variety of end products results in less consumer appeal and thereby affecting the competitive advantage for the firm. Designs may be frozen with too many imperfections remaining Design changes involve high costs which will increase resistance to improvements in design
- 13. THANK YOU