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1
Context
οƒ˜ What is Industrial Engineering?
οƒ˜ Why IE in apparel Industry?
οƒ˜ Role of IE
οƒ˜ Production Vs. Productivity and its types
οƒ˜ Factors affecting productivity
οƒ˜ Time Study
οƒ˜ Capacity Study
οƒ˜ Work In Process (WIP)
οƒ˜ Operation Bulletin / SAM sheet
οƒ˜ Line Balancing
οƒ˜ Efficiency
οƒ˜ Cost Per Minute (CPM)
2
What is Industrial Engineering?
β€œIt is something to do things in a better way”.
3
Role of Industrial Engineering
οƒ˜ Layout designs
οƒ˜ Material consumptions
οƒ˜ Operational breakdowns
οƒ˜ Capacity study
οƒ˜ Work study
οƒ˜ Manufacturing cost
οƒ˜ KPIs
οƒ˜ Quality Management
οƒ˜ Wage calculations
οƒ˜ Incentives
οƒ˜ Maintenance
οƒ˜ Waste
οƒ˜ Skill Matrix
4
Production Vs. Productivity
οƒ˜ Production:
It is the process of converting resources into products or services
It is the volume of output irrespective of the quantity or quality of resources
employed to achieve a level of output
οƒ˜ Production System:
οƒ˜ Productivity:
It is the ratio of outputs (goods & services) divided by the inputs (resources such
as labor and capital)
Productivity = Output / Input
It is the ration between output and input that totally depends upon both output and
input levels
5
Types of Productivity
Labor Productivity
π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅
𝑳𝒂𝒃𝒐𝒓 𝑯𝒐𝒖𝒓𝒔 𝑼𝒔𝒆𝒅
Machine Productivity
π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅
π‘΄π’‚π’„π’‰π’Šπ’π’† 𝑯𝒐𝒖𝒓𝒔 𝑼𝒔𝒆𝒅
Material Productivity
π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅
π‘΄π’‚π’•π’†π’“π’Šπ’‚π’ π‘ͺπ’π’π’”π’–π’Žπ’†π’…
Land Productivity
π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅
𝑨𝒓𝒆𝒂 𝒐𝒇 𝑳𝒂𝒏𝒅 𝑼𝒔𝒆𝒅
6
Factors Affecting Productivity
β€’ Age, Quality of Machinery
β€’ Machine Maintenance & Utilization (OEE)
β€’ Plant Layout
β€’ Line Balancing
β€’ Material Handling & Storage
β€’ Housekeeping
β€’ Employee Turnover Rate
β€’ Absenteeism
β€’ Rewards, Recognition & Compensation
β€’ Staff Development
β€’ Incoming Material Rejection
β€’ WIP Rejections
β€’ Finished Goods Rejection
β€’ Use of Information Technology
β€’ Use of Quality Tools & Techniques
7
Time Study
It is a work measurement technique for recording the
times and rates of
8
Time Study Procedure
Following steps are taken while making time study
οƒ˜ Collection of details regarding job and machine
οƒ˜ Calculate average single cycle time for the certain operation by
taking no. of observations and averaging them
οƒ˜ Calculate observed time (minutes)
οƒ˜ Rate the operator
οƒ˜ Calculate Basic Time
οƒ˜ Determine allowance factor
οƒ˜ Calculate standard time called SAM( standard allowed minutes)
9
Time Study Equipment's
οƒ˜Stop watch
οƒ˜Clip board
οƒ˜Time Study forms
οƒ˜Pencil
10
Time Study
Average single cycle time
Time of sewing operation (20 observations)
Sec Sec
1 60 11 58
2 58 12 59
3 63 13 78
4 61 14 65
5 59 15 63
6 58 16 64
7 63 17 62
8 69 18 63
9 85 19 61
10 62 20 57
ASCT 61.39
11
Time Study
Average single cycle time
𝐴𝑆𝐢𝑇 =
π‘†π‘’π‘š π‘œπ‘“ π‘œπ‘π‘ π‘’π‘Ÿπ‘£π‘Žπ‘‘π‘–π‘œπ‘›π‘  (𝑠𝑒𝑐)
π‘π‘’π‘šπ‘π‘’π‘Ÿ π‘œπ‘“ π‘œπ‘π‘ π‘’π‘Ÿπ‘£π‘Žπ‘‘π‘–π‘œπ‘›π‘ 
=61.39 sec
Observed Time/BT
𝑂𝑇 =
𝐴𝑆𝐢𝑇
60
=1.02 min
𝑆𝑇 𝑆𝐴𝑀 = 𝐡𝑇 + 𝑀𝐴 + 𝑃&𝐹 + 𝐡𝐻𝐴
12
Allowances
Machine Allowances
SNLS – 12%
DNLS – 15%
3 TH O/L – 7.5 %
5 TH O/L – 9.5 %
P&F Allowances = 7.5% flat
BH Allowances = 0.03 min per piece
13
Capacity Study
Finding out the operator’s potential.
Method
οƒ˜ Get details of operation and machine
οƒ˜ Take observations while operator works with best method
οƒ˜ Ignore cycles containing breakdown (bundle handling, machine delay
etc.)
οƒ˜ Calculate ASCT and Capacity
14
Work in Process (WIP)
β€œThe sum of semi finished and finished goods”
οƒ˜ Can be measured in pieces or time
Why to control WIP?
οƒ˜ Investment on inventory
οƒ˜ Ability to reduce production cycle
How to manage WIP?
οƒ˜ Production Planning
οƒ˜ Trims control
οƒ˜ Production build up
οƒ˜ Line balancing
οƒ˜ Cut flow control
15
Operation Bulletin (OB)
Sequence of activities in making OB
οƒ˜ Thorough study of the style
οƒ˜ Preparation of operations breakdown
οƒ˜ Simplifying operations
οƒ˜ Defining attachments required
οƒ˜ Get customer convince on any changes required in construction
οƒ˜ Calculate SAM
οƒ˜ Calculate targets
οƒ˜ Calculate manpower requirement
οƒ˜ Balance the line for optimum productivity
16
Line Balancing
What is Line Balancing?
οƒ˜ Technique of maintaining same level of inventory on each workstation in
the production line.
Why Line Balancing?
οƒ˜ To lower the inventory cost
οƒ˜ To enable worker for optimum pace
οƒ˜ To enable supervisor to address other problems
οƒ˜ Better production planning
οƒ˜ On time shipment, low cost and hence increased customer value
17
Line Balancing
Goals for balancing
οƒ˜ Meet production schedule
οƒ˜ Avoid the waiting time
οƒ˜ Minimize over time
οƒ˜ Protect operator earning
Rules for balancing
οƒ˜ Have 3-5 bundles on each W/S
οƒ˜ Solve the problem before it becomes large
οƒ˜ Keep the operators busy at full capacity by ensuring sufficient
availability of work
18
Line Balancing
Considerations to balance the line
οƒ˜ Meet production targets
οƒ˜ Constant workflow
οƒ˜ Avoid overtime
οƒ˜ Determine HR required
οƒ˜ Check absenteeism
οƒ˜ Monitor hourly production
19
Line Balancing
Balanced production system
A production line where the line targets are achieved in all the operations
with same amount of normal WIP at all workstations.
Steps in balancing the line
οƒ˜ Calculations of labor requirement
οƒ˜ Operations breakdown
οƒ˜ Theoretical operation balance
οƒ˜ Initial balance
οƒ˜ Balance control
20
Line Balancing
Balance Control
οƒ˜ Maintain WIP for 5 to 10 min at each W/S
οƒ˜ Keep the WIP in order
οƒ˜ Keep the utility operators to manage absenteeism
οƒ˜ Keep the spare machines for any replace to overcome sudden
breakdown
οƒ˜ Develop preventive maintenance plan to avoid sudden breakdown
οƒ˜ Eliminate bottlenecks
οƒ˜ Supervisor must know the available skill set
21
Efficiency
β€œEfficiency is the measure of effectiveness of production line”.
It is another way of expressing productivity
It tells how do we perform against targets which have been set
by scientific means.
𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’
π‘₯ 100%
𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
π‘ˆπ‘›π‘–π‘‘π‘  π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘’π‘‘ π‘₯ 𝑆𝐴𝑀
π‘€π‘Žπ‘β„Žπ‘–π‘›π‘’π‘  𝑒𝑠𝑒𝑑 π‘₯ π‘ β„Žπ‘–π‘“π‘‘ π‘‘π‘–π‘šπ‘’
π‘₯ 100%
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’ βˆ’ πΏπ‘œπ‘ π‘‘ π‘šπ‘–π‘›
π‘₯ 100%
𝐸𝑓𝑓. =
π‘ˆπ‘›π‘–π‘‘π‘  π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘’π‘‘ π‘₯ 𝑆𝐴𝑀
π‘€π‘Žπ‘β„Žπ‘–π‘›π‘’π‘  𝑒𝑠𝑒𝑑 π‘₯ π‘ β„Žπ‘–π‘“π‘‘ π‘‘π‘–π‘šπ‘’ βˆ’ πΏπ‘œπ‘ π‘‘ π‘šπ‘–π‘›
π‘₯ 100%
22
Efficiency
Exercise:
A sewing line produced 1200 garments with 15 minute SAM, in 8
hours shift using 50 work stations. Provided that 15 workers
could not continue their work for 120 minutes owing to
unavailability of work, calculate overall efficiency and on
standard efficiency of the line?
23
Efficiency
Solution:
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’ βˆ’ πΏπ‘œπ‘ π‘‘ π‘šπ‘–π‘›
π‘₯ 100%
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
1200 π‘₯ 15
50π‘₯ 480 βˆ’ (15 π‘₯ 120)
π‘₯ 100% = 81.1%
𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘
𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’
π‘₯ 100%
𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
1200 π‘₯ 15
50 π‘₯ 480
π‘₯ 100% = 75 %
24
Cost Per Minute
𝐢/𝑀 =
π‘‡π‘œπ‘‘π‘Žπ‘™ π‘π‘œπ‘ π‘‘ π‘–π‘›π‘π‘’π‘Ÿπ‘Ÿπ‘’π‘‘
π‘‡π‘œπ‘‘π‘Žπ‘™ π‘šπ‘–π‘›π‘’π‘‘π‘’π‘  π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘
𝐢/𝑀 =
π‘†π‘’π‘š π‘œπ‘“ π‘Žπ‘™π‘™ 𝑓𝑖π‘₯𝑒𝑑 π‘π‘œπ‘ π‘‘π‘ 
π‘ˆπ‘›π‘–π‘‘π‘  π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘’π‘‘ π‘₯ 𝑆𝐴𝑀
25
Cost Per Minute
Why to measure cost?
οƒ˜ To estimate the cost of operations
SMV = SAM x CM
οƒ˜ To evaluate the performance metrics, by comparing costs of
before and after improvement processes
οƒ˜ To estimate the cost of loss time
οƒ˜ To monitor the cost of production against benchmarks
26
27

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Industrial Engineering in the Apparel Industry

  • 1. 1
  • 2. Context οƒ˜ What is Industrial Engineering? οƒ˜ Why IE in apparel Industry? οƒ˜ Role of IE οƒ˜ Production Vs. Productivity and its types οƒ˜ Factors affecting productivity οƒ˜ Time Study οƒ˜ Capacity Study οƒ˜ Work In Process (WIP) οƒ˜ Operation Bulletin / SAM sheet οƒ˜ Line Balancing οƒ˜ Efficiency οƒ˜ Cost Per Minute (CPM) 2
  • 3. What is Industrial Engineering? β€œIt is something to do things in a better way”. 3
  • 4. Role of Industrial Engineering οƒ˜ Layout designs οƒ˜ Material consumptions οƒ˜ Operational breakdowns οƒ˜ Capacity study οƒ˜ Work study οƒ˜ Manufacturing cost οƒ˜ KPIs οƒ˜ Quality Management οƒ˜ Wage calculations οƒ˜ Incentives οƒ˜ Maintenance οƒ˜ Waste οƒ˜ Skill Matrix 4
  • 5. Production Vs. Productivity οƒ˜ Production: It is the process of converting resources into products or services It is the volume of output irrespective of the quantity or quality of resources employed to achieve a level of output οƒ˜ Production System: οƒ˜ Productivity: It is the ratio of outputs (goods & services) divided by the inputs (resources such as labor and capital) Productivity = Output / Input It is the ration between output and input that totally depends upon both output and input levels 5
  • 6. Types of Productivity Labor Productivity π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅 𝑳𝒂𝒃𝒐𝒓 𝑯𝒐𝒖𝒓𝒔 𝑼𝒔𝒆𝒅 Machine Productivity π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅 π‘΄π’‚π’„π’‰π’Šπ’π’† 𝑯𝒐𝒖𝒓𝒔 𝑼𝒔𝒆𝒅 Material Productivity π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅 π‘΄π’‚π’•π’†π’“π’Šπ’‚π’ π‘ͺπ’π’π’”π’–π’Žπ’†π’… Land Productivity π‘Όπ’π’Šπ’•π’” 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅 𝑨𝒓𝒆𝒂 𝒐𝒇 𝑳𝒂𝒏𝒅 𝑼𝒔𝒆𝒅 6
  • 7. Factors Affecting Productivity β€’ Age, Quality of Machinery β€’ Machine Maintenance & Utilization (OEE) β€’ Plant Layout β€’ Line Balancing β€’ Material Handling & Storage β€’ Housekeeping β€’ Employee Turnover Rate β€’ Absenteeism β€’ Rewards, Recognition & Compensation β€’ Staff Development β€’ Incoming Material Rejection β€’ WIP Rejections β€’ Finished Goods Rejection β€’ Use of Information Technology β€’ Use of Quality Tools & Techniques 7
  • 8. Time Study It is a work measurement technique for recording the times and rates of 8
  • 9. Time Study Procedure Following steps are taken while making time study οƒ˜ Collection of details regarding job and machine οƒ˜ Calculate average single cycle time for the certain operation by taking no. of observations and averaging them οƒ˜ Calculate observed time (minutes) οƒ˜ Rate the operator οƒ˜ Calculate Basic Time οƒ˜ Determine allowance factor οƒ˜ Calculate standard time called SAM( standard allowed minutes) 9
  • 10. Time Study Equipment's οƒ˜Stop watch οƒ˜Clip board οƒ˜Time Study forms οƒ˜Pencil 10
  • 11. Time Study Average single cycle time Time of sewing operation (20 observations) Sec Sec 1 60 11 58 2 58 12 59 3 63 13 78 4 61 14 65 5 59 15 63 6 58 16 64 7 63 17 62 8 69 18 63 9 85 19 61 10 62 20 57 ASCT 61.39 11
  • 12. Time Study Average single cycle time 𝐴𝑆𝐢𝑇 = π‘†π‘’π‘š π‘œπ‘“ π‘œπ‘π‘ π‘’π‘Ÿπ‘£π‘Žπ‘‘π‘–π‘œπ‘›π‘  (𝑠𝑒𝑐) π‘π‘’π‘šπ‘π‘’π‘Ÿ π‘œπ‘“ π‘œπ‘π‘ π‘’π‘Ÿπ‘£π‘Žπ‘‘π‘–π‘œπ‘›π‘  =61.39 sec Observed Time/BT 𝑂𝑇 = 𝐴𝑆𝐢𝑇 60 =1.02 min 𝑆𝑇 𝑆𝐴𝑀 = 𝐡𝑇 + 𝑀𝐴 + 𝑃&𝐹 + 𝐡𝐻𝐴 12
  • 13. Allowances Machine Allowances SNLS – 12% DNLS – 15% 3 TH O/L – 7.5 % 5 TH O/L – 9.5 % P&F Allowances = 7.5% flat BH Allowances = 0.03 min per piece 13
  • 14. Capacity Study Finding out the operator’s potential. Method οƒ˜ Get details of operation and machine οƒ˜ Take observations while operator works with best method οƒ˜ Ignore cycles containing breakdown (bundle handling, machine delay etc.) οƒ˜ Calculate ASCT and Capacity 14
  • 15. Work in Process (WIP) β€œThe sum of semi finished and finished goods” οƒ˜ Can be measured in pieces or time Why to control WIP? οƒ˜ Investment on inventory οƒ˜ Ability to reduce production cycle How to manage WIP? οƒ˜ Production Planning οƒ˜ Trims control οƒ˜ Production build up οƒ˜ Line balancing οƒ˜ Cut flow control 15
  • 16. Operation Bulletin (OB) Sequence of activities in making OB οƒ˜ Thorough study of the style οƒ˜ Preparation of operations breakdown οƒ˜ Simplifying operations οƒ˜ Defining attachments required οƒ˜ Get customer convince on any changes required in construction οƒ˜ Calculate SAM οƒ˜ Calculate targets οƒ˜ Calculate manpower requirement οƒ˜ Balance the line for optimum productivity 16
  • 17. Line Balancing What is Line Balancing? οƒ˜ Technique of maintaining same level of inventory on each workstation in the production line. Why Line Balancing? οƒ˜ To lower the inventory cost οƒ˜ To enable worker for optimum pace οƒ˜ To enable supervisor to address other problems οƒ˜ Better production planning οƒ˜ On time shipment, low cost and hence increased customer value 17
  • 18. Line Balancing Goals for balancing οƒ˜ Meet production schedule οƒ˜ Avoid the waiting time οƒ˜ Minimize over time οƒ˜ Protect operator earning Rules for balancing οƒ˜ Have 3-5 bundles on each W/S οƒ˜ Solve the problem before it becomes large οƒ˜ Keep the operators busy at full capacity by ensuring sufficient availability of work 18
  • 19. Line Balancing Considerations to balance the line οƒ˜ Meet production targets οƒ˜ Constant workflow οƒ˜ Avoid overtime οƒ˜ Determine HR required οƒ˜ Check absenteeism οƒ˜ Monitor hourly production 19
  • 20. Line Balancing Balanced production system A production line where the line targets are achieved in all the operations with same amount of normal WIP at all workstations. Steps in balancing the line οƒ˜ Calculations of labor requirement οƒ˜ Operations breakdown οƒ˜ Theoretical operation balance οƒ˜ Initial balance οƒ˜ Balance control 20
  • 21. Line Balancing Balance Control οƒ˜ Maintain WIP for 5 to 10 min at each W/S οƒ˜ Keep the WIP in order οƒ˜ Keep the utility operators to manage absenteeism οƒ˜ Keep the spare machines for any replace to overcome sudden breakdown οƒ˜ Develop preventive maintenance plan to avoid sudden breakdown οƒ˜ Eliminate bottlenecks οƒ˜ Supervisor must know the available skill set 21
  • 22. Efficiency β€œEfficiency is the measure of effectiveness of production line”. It is another way of expressing productivity It tells how do we perform against targets which have been set by scientific means. 𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘ 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’ π‘₯ 100% 𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = π‘ˆπ‘›π‘–π‘‘π‘  π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘’π‘‘ π‘₯ 𝑆𝐴𝑀 π‘€π‘Žπ‘β„Žπ‘–π‘›π‘’π‘  𝑒𝑠𝑒𝑑 π‘₯ π‘ β„Žπ‘–π‘“π‘‘ π‘‘π‘–π‘šπ‘’ π‘₯ 100% 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘ 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’ βˆ’ πΏπ‘œπ‘ π‘‘ π‘šπ‘–π‘› π‘₯ 100% 𝐸𝑓𝑓. = π‘ˆπ‘›π‘–π‘‘π‘  π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘’π‘‘ π‘₯ 𝑆𝐴𝑀 π‘€π‘Žπ‘β„Žπ‘–π‘›π‘’π‘  𝑒𝑠𝑒𝑑 π‘₯ π‘ β„Žπ‘–π‘“π‘‘ π‘‘π‘–π‘šπ‘’ βˆ’ πΏπ‘œπ‘ π‘‘ π‘šπ‘–π‘› π‘₯ 100% 22
  • 23. Efficiency Exercise: A sewing line produced 1200 garments with 15 minute SAM, in 8 hours shift using 50 work stations. Provided that 15 workers could not continue their work for 120 minutes owing to unavailability of work, calculate overall efficiency and on standard efficiency of the line? 23
  • 24. Efficiency Solution: 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘ 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’ βˆ’ πΏπ‘œπ‘ π‘‘ π‘šπ‘–π‘› π‘₯ 100% 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 1200 π‘₯ 15 50π‘₯ 480 βˆ’ (15 π‘₯ 120) π‘₯ 100% = 81.1% 𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘ 𝑀𝑖𝑛𝑒𝑑𝑒𝑠 π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’ π‘₯ 100% 𝐺. 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 1200 π‘₯ 15 50 π‘₯ 480 π‘₯ 100% = 75 % 24
  • 25. Cost Per Minute 𝐢/𝑀 = π‘‡π‘œπ‘‘π‘Žπ‘™ π‘π‘œπ‘ π‘‘ π‘–π‘›π‘π‘’π‘Ÿπ‘Ÿπ‘’π‘‘ π‘‡π‘œπ‘‘π‘Žπ‘™ π‘šπ‘–π‘›π‘’π‘‘π‘’π‘  π‘’π‘Žπ‘Ÿπ‘›π‘’π‘‘ 𝐢/𝑀 = π‘†π‘’π‘š π‘œπ‘“ π‘Žπ‘™π‘™ 𝑓𝑖π‘₯𝑒𝑑 π‘π‘œπ‘ π‘‘π‘  π‘ˆπ‘›π‘–π‘‘π‘  π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘’π‘‘ π‘₯ 𝑆𝐴𝑀 25
  • 26. Cost Per Minute Why to measure cost? οƒ˜ To estimate the cost of operations SMV = SAM x CM οƒ˜ To evaluate the performance metrics, by comparing costs of before and after improvement processes οƒ˜ To estimate the cost of loss time οƒ˜ To monitor the cost of production against benchmarks 26
  • 27. 27