PRODUCTIVITY TECHNIQUES

RECOMMENDED READING
PRODUCTIVITTY TECHNIQUES BY DR UDAY SALUNKE PRODUCTIVITY TECHNIQUES BY P S SHIRKE HANDBOOK OF INDUSTRIAL ENGINEERING AND MANAGEMENT BY IVERSON AND GRANT ILO WORK STUDY HANDBOOK TOTAL PRODUCTIVITY MANAGEMENT BY DAVID SUMANTH

PRODUCTIVITY TECHNIQUES

RESOURCES OF AN ORGANIZATION
Whether Public or Private;The resources that are available to them are: Land & Buildings Materials Plant, Machines & Equipment Energy People Money

INTRODUCTION TO PRODUCTIVITY
PRODUCTIVITY IS RATIO OF GOODS AND SERVICES PRODUCED TO RESOURCES USED OR RATIO OF OUTPUT TO INPUT INCREASED PRODUCTIVITY IS AN OUTCOME OF INCESSANT WAR AGAINST WASTE ; HENCE PRODUCTIVITY CAN BE DEFINED AS AN ATTEMPT TO MINIMIZE WASTE PRODUCTIVITY CAN BE INCREASED BY MINIMIZING USE OF MATERIAL, REDUCED TIME TO DO JOB, etc

EXAMPLES OF OUTPUT
Whether the organization is public or private the outputs are ; Accomplishment of a task Length of an output Distance travelled Number of pieces produced Weight of production

EXAMPLES OF OUTPUT(Contd.)
Volume of output Value of output No. of documents processed Time taken to carry out a job No of jobs attended No. of customers served

EXAMPLES OF INPUT
Labour force or man hours, man days. Etc.. Labour cost (Rs) Area of land(in hectares) Kg. Of material or material cost in Rs. Volume of material or fluid Length of material square area of space Units of power Time etc.

MEANING OF PRODUCTIVITY
PRODUCTIVITY IS OFTEN ASSOCIATED WITH PRODUCTION HIGHER PRODUCTION IS NOT HIGHER PRODUCTIVITY INCREASE IN PRODUCTION CAN BE ACHIEVED BY INCREASING QUANTUM OF INPUT BUT THAT DOES NOT INCREASE PRODUCTIVITY HIGHER PRODUCTIVITY RESULTS IF PRODUCTION PER EMPLOYEE OR PER MACHINE INCREASES ALONGSIDE WITH QUALITY PRODUCTIVITY IS CREATING SURPLUS THRU PRODUCTIVE OPERATIONS WHERE OUTPUT IS ALWAYS GT INPUT PRODUCTIVITY IS DEFINED AS OUTPUT WITHIN DEFINED TIME AND AS PER QLTY NORMS/INPUT

MEANING OF PRODUCTIVITY
BOTH OUTPUT AND INPUT SHOULD BE QUANTIFIED IN TANGIBLE MONETARY TERMS PRODUCTIVITY CAN BE IMPROVED BY -INCREASING OUTPUT WITH SAME INPUT -INCREASING OUTPUT MORE THAN THE INCREASE IN INPUT -DECREASING INPUT FOR THE SAME AMOUNT OF OUTPUT -INCREASING OUTPUT WHILE DECREASING INPUT PRODUCTIVITY IMPLIES EFFECTIVENESS AND EFFICIENCY IN INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE

DEFINITION OF PRODUCTIVITY
PRODUCTIVITY IS THE RATIO BETWEEN OUTPUT OF WEALTH TO THE INPUT OF RESOURCES USED IN THE PROCESS OF MFG PRODUCTIVITY = OUTPUT OF WEALTH/INPUT OF RESOURCES INPUTS ARE MATERIAL , MONEY , MACHINES , PEOPLE ANOTHER PARAMETER OFTEN USED IS PERFORMANCE WHICH IS (ACTUAL ACHIEVEMENT IN TERMS OF EFFECTIVE WORK DONE)/(STANDARD TARGET OF ACHIEVEMENT) * 100

DEFINITION OF PRODUCTIVITY
PERFORMANCE IS EXPRESSED AS PERFORMANCE INDEX WHICH IS % OF STANDARD TARGET OR EFFECTIVENESS OF PRODUCTIVITY .PRODUCTIVITY = OUTPUT/INPUT = PERFORMANCE ACHIEVED/RESOURCES CONSUMED = EFFECTIVENESS/EFFICIENCY PRODUCTIVITY CAN BE APPLIED TO MATERIAL , EQUIPMENT,MEN,CAPITAL MATRL = 1 TONNE OF HOT ROLLED STEEL PRODUCES 0.8 TONNE OF COLD ROLLED STEEL REST IS SCRAP. PRODUCTIVITY WAS 80%. THE ENGINEERS AT TISCO STUDIED THE PROCESS AND THRU METHOD STUDY INCREASED PRODUCTIVITY TO 90% BY REDUCING SCRAP

DEFINITION OF PRODUCTIVITY
MACHINE = RATED THROUGHPUT OF POWER PLANT WAS 100 MWH. ACTUAL THROUGHPUT(PLF) WAS 72% WHICH MEANT THE POWER PLANT HAD 28% LOSSES.AFTER STUDYING HEAT LOSSES AND INSTALLING PREHEATERS AND REGENERATORS THE HEAT LOSS WAS REDUCED BY 8%.HENCE PRODUCTIVITY OF POWER PLANT ROSE TO 80% MAN = STANDARD OUTPUT OF TRAINED 1 YEAR EXPERIENCED ORACLE PROGRAMMER IS 80 DEBUGGED LINES OF CODE PER DAY. ON A PARTICULAR DAY MR X PRODUCED 60 LINES. HIS PRODUCTIVITY WAS 75%

MISCONCEPTIONS ABOUT PRODUCTIVITY

People fear, hate, feel let down, complain about productivity, very often because they have misunderstood it. There are several misconceptions about Productivity

MISCONCEPTION - I

Productivity = Production Productivity is merely a more sophisticated word for production

MISCONCEPTION - II

Productivity means only Labour Productivity

MISCONCEPTION - 3
Productivity can be increased by getting people to work harder TRUE TO SOME EXTENT But this is labour intensity NOT real productivity. Real productivity means working more intelligently not harder

MISCONCEPTION -4
Higher productivity causes retrenchment and large scale loss of jobs

This may happen in the short term but the long term benefits outweigh this disadvantage

Misconception -4(Contd.)
If there is low productivity then in the long term there will be severe, large scale loss of jobs.

MISCONCEPTION - 5
Productivity is relevant only in manufacturing and not relevant elsewhere

MISCONCEPTION - 6

Productivity can be increased by cutting costs across the board

MISCONCEPTION - 7
Productivity and Quality are trade offs. You cannot increase one without affecting the other

MISCONCEPTION - 8
Productivity is directly related to profits. In other words a profitable organization is always a productive one

MISCONCEPTION - 9

Productivity is relevant only in an open economy

MISCONCEPTION - 10
Productivity is only for commercial enterprises and not for the public sector

MISCONCEPTION - 11
Productivity is for organizations and not for you and me

SO DO NOT GET MISLED BY THESE MISCONCEPTIONS

OTHER THOUGHTS ON PRODUCTIVITY

Productivity is an attitude of mind Productivity Productivity means doing something better today than yesterday Productivity means continuous improvement

The quantitative aspects of productivity

By this is meant the concepts behind productivity measurement and their application to performance measurement at the economy and company level

PRODUCTIVITY LEVELS
National Productivity Industry Productivity Company Productivity Divisional Productivity Branch Productivity Individual Productivity

NATIONAL PRODUCTIVITY
= GDP EMPLOYED WORK FORCE

This is a single factor productivity measure and therefore wrong inferences may be made by comparing one country with another

ORGANIZATION PRODUCTIVITYPRODUCTIVITY- HOW TO MEASURE ?

The best method is to use Added Value( as output) per single factor of output Added Value is Sales (Procured Material + Outsourced services) (Added value measures the wealth creation)

EXAMPLES OF ADDED VALUE

Added Value per employee Added Value per Rs of labour cost Added Value per Kg of material Added Value per KWH of power Added Value per litre of fuel

RESOURCES IN PRODUCTIVITY
MANPOWER SKILLS AND CAPABILITY MACHINE MATERIAL MONEY ENERGY METHOD TIME MANAGEMENT

REASONS FOR PRODUCTIVITY LOSS

UNBALANCED WORK ROUTE UNCLEAR INSTRUCTIONS WAITING FOR RESOURCES EXCESS REJECTS/REWORK FREQUENT WORK INTERRUPTIONS ADVERSE WORKING CONDITIONS LEADING TO EXCESS FATIGUE AND HENCE UNDER PRODUCTIVITY EG 15 MIN OVERS/HR IN CRIOCKET REGARDLESS OF WEATHER

PARTIAL PRODUCTIVITY
DEFINED AS RATIO OF TOTAL OUTPUT TO ANY ONE TYPE OF INPUT eg MATERIAL , MONEY ,LABOUR , ENERGY LABOUR PRODUCTIVITY = TOTAL OUTPUT/LABOUR COST eg 1000 cr/300cr = 3.3 MATERIAL PRODUCTIVITY =TOTAL OUTPUT/MATRL COST eg 1000cr/200cr 5.0 CAPITAL PRODUCTIVITY = TOTAL OUTPUT/CAPITAL COST eg 1000cr/800 = 1.25 CAN ALSO BE CALLED FIXED ASSET PRODUCTIVITY ENERGY PRODUCTIVITY =TOTAL OUTPUT/ENERGY COST eg 1000cr/100cr = 10

PARTIAL PRODUCTIVITY
PARTIAL PRODUCTIVITY GIVES MEASURE OF IMPACT OF TYPE OF INPUT ON OVERALL PRODUCTIVITY PARTIAL PRODUCTIVITY HELPS IN DETERMINING IMPORTANCE OF TYPE OF INPUT ON EFFECTIVENESS OF PROCESS

ASSET ENERGY SUSTAINABILITY INDEX

MOST COMPANIES CONCENTRATE ON ACHIEVING A HIGH DEGREE OF OVERALL EQUIPMENT EFFECTIVENESS OEE = UPTIME * EFFICIENCY * QUALITY WHERE EFFICIENCY IS THE THROUGHPUT PRODUCTIVITY BUT WHILE DOING SO HOW MUCH IS THE EXTRA ENERGY CONSUMED ARE WE ACHIEVING HIGHER THROUGHPUTS BUT SACRIFICING ENERGY CONSUMPTION ASSET ENERGY SUSTAINABILITY INDEX = OEE * (EXPECTED ENERGY CONSUMPTION PER UNIT PRODUCED/ACTUAL ENERGY CONSUMED PER UNIT)

COMPARITIVE PLANT FIGURES OF ENERGY CONSUMPTION PER VEHICLE IN HERO HONDA PLANTS
2009
PLANT VEH KWH/VEH 35.85 31.12 24.63 GURGAON 15.59L DHARUHERA 15.99L HARIDWAR 6.30L

2010
VEH 15.93L 15.33L 14.04L KWH/VEH 36.97 32.09 17.31

SOURCE ANNUAL REPORT OF HERO HONDA 2009-2010

PARTIAL PRODUCTIVITY ADVANTAGES

EASY TO UNDERSTAND EFFECT OF INDIVIDUAL FACTOR OF INPUT ON OUTPUT EASY TO OBTAIN DATA EASY TO COMPUTE PRODUCTIVITY INDICES EASY TO CONVINCE MGT OF BENEFITS GOOD DIAGNOSTIC TOOLS AVAILABLE TO PINPOINT AREAS OF PRODUCTIVITY IMPROVEMENT

PARTIAL PRODUCTIVITY DISADVANTAGES

IF USED ALONE CAN BE MISLEADING STRESSES ON ONE FACTOR CANNOT EXPLAIN OVERALL COST INCREASES TEND TO SHIFT BLAME ON WRONG AREAS OF MGT CONTROL IN THE CASE OF PARTIAL LABOR PRODUCTIVITY THE CONTRIBUTION OF INDIRECT LABOR IS NOT TAKEN INTO CONSIDERATION

PROBLEM WITH TRADITIONAL LABOR PRODUCTIVITY

OUTPUT PRODUCED IS A RESULT OF JOINT AND SIMULTANEOUS IMPACT OF ALL RESOURCES NOT ONLY LABOR COMPANIES SHOWING HIGH LABOR PRODUCTIVITY GROWTH RATES ARE NOT ALWAYS COMPETITIVE IN THE MARKET ORGANIZATIONS WITH COLLECTIVE BARGAINING AGREEMENTS BASED ONLY ON LABOR PRODUCTIVITY TEND TO REDUCE THE UNIT LABOR COST BUT NOT ALWAYS THE TOTAL UNIT COST eg COMPUTERIZATION LEADING TO LABOR REDUCTION

PROBLEM WITH TRADITIONAL LABOR PRODUCTIVITY

DIFFICULT TO IMPLEMENT TEAM CONCEPTS OF MGT WHEN PERFORMANCE MGT IS FOCUSED ONLY ON LABOR PRODUCTIVITY RATHER THAN TOTAL PRODUCTIVITY ORG STRUCTURES TEND TO BE LESS FLEXIBLE WHEN EMPHASIS IS ON CONTROL OF LABOR PRODUCTIVITY RATHER THAN TOTAL PRODUCTIVITY DIFFICULT TO DIRECTLY RELATE LABOR PRODUCTIVITY TO PROFITS IN MOST MFG OUTFITS LABOR COST IS NOT A SIGNIFICANT COMPONENT OF DIRECT COSTS eg IN CAPITAL INTENSIVE INDUSTRIES

TOTAL FACTOR PRODUCTIVITY

DEFINED AS RATIO OF NET OUTPUT TO SUM OF LABOUR AND CAPITAL INPUTS NET OUTPUT = TOTAL OUTPUT INTERMEDIATE GOODS AND SERVICES PURCHASED INTERMEDIATE GOODS AND SERVICES PURCHASED INCLUDE RAW MATRL,COMPONENTS,ENERGY COSTS,FUEL,FEES FOR SERVICES etc ALSO CALLED VALUE ADD WHEN COSTS COMPUTED

EXAMPLE OF TOTAL FACTOR INDEX

TOTAL FACTOR PRODUCTIVITY = OUTPUT/CAPITAL + LABOUR INPUT = 100/(20 + 55) =100/75 = 1.33 VALUE ADD = SALES PROCURE PRICE SERVICES PRICE = 2500 1000 500 = 1000 VALUE ADD PER EMPLOYEE = 1000/200 = 5

ADVANTAGES OF TOTAL FACTOR PRODUCTIVITY

DATA IS EASY TO OBTAIN APPEALING FROM ECONOMIST POINT OF VIEW

DISADVANTAGES OF TOTAL FACTOR PRODUCTIVITY

VALUE ADDED APPROACH TO DEFINING OUTPUT IS NOT VERY APPROPRIATE NOT APPROPRIATE WHEN MATRL COST FORMS SIZEABLE PORTION OF TOTAL PRODUCT COST ONLY LABOR AND CAPITAL INPUTS ARE CONSIDERED DATA FOR COMPARISON PURPOSES IS DIFFICULT TO OBTAIN

TOTAL PRODUCTIVITY
TOTAL PRODUCTIVITY IS THE RATIO OF TOTAL OUTPUT TO THE SUM OF ALLINPUT FACTORS MEASURE WHICH TAKES INTO CONSIDERATION THE JOINT IMPACT OF ALL INPUT RESOURCES ON OUTPUT SUCH AS MATERIAL,MACHINES,CAPITAL,ENERGY etc MEASURE VERY POPULAR IN INDUSTRY

ADVANTAGES OF TOTAL PRODUCTIVITY

CONSIDERS ALL QUANTIFIABLE OUTPUT AND INPUT FACTORS AND IS THEREFORE A MORE ACCURATE REPRESENTATION OF THE REAL ECONOMIC PICTURE OF THE COMPANY PROFIT CONTROL THRU THE USE OF THESE INDICES IS OF BENEFIT TO THE MGT IF USED IN CONJUNCTION WITH PARTIAL PRODUCTIVITY CAN DIRECT MGT ATTENTION IN AN EFFECTIVE MANNER SENSITIVITY ANALYSIS IS EASIER TO PERFORM EASILY RELATED TO TOTAL COSTS MULTIPLE GOALS CAN BE ACHIEVED SIMULTANEOUSLY BY INCREASING TOTAL PRODUCTIVITY OF A COMPANY USING THE RELATIONSHIP BETWEEN PROFIT AND TOTAL PRODUCTIVITY A FIRM CAN OBJECTIVELY PLAN ITS PROFIT LEVEL BASED ON ITS ABILITY TO REACH A CERTAIN PRODUCTIVITY LEVEL USING THE CONCEPT OF BREAK EVEN POINT OF TOTAL PRODUCTIVITY A FIRM CAN DETERMINE IF ITS TOTAL PRODUCTIVITY LEVEL IS A VALUE THAT YIELDS PROFITS MGT IS FORCED INTO A LONG TERM ACTION ON QLTY,PROFITABILITY etc

DISADVANTAGES OF TOTAL PRODUCTIVITY

DATA FOR COMPUTATION IS DIFFICULT TO OBTAIN AT PRODUCT AND CUSTOMER LEVEL LIKE THE PARTIAL AND TOTAL FACTOR MEASURES THIS ALSO DOES NOT CONSIDER INTANGIBLE FACTORS OF OUTPUT AND INPUT IN A DIRECT MANNER

AMERICAN PRODUCTIVITY CENTRE MODEL

MODEL DERIVES EQUATION OF PROFITABILITY WITH PRODUCTIVITY AND PRICE RECOVERYFACTOR PROFITABILITY = SALES/COST = OUTPUT QTY * PRICE/INPUT QTY * UNIT COST =OUTPUT QTY/INPUT QTY *UNIT PRICE/UNIT COST =PRODUCTIVITY * PRICE RECOVERY FACTOR PRICE RECOVERY FACTOR INDICATES THE INFLATIONARY EFFECT AND PRODUCTIVITY GIVES THE AMOUNT OF RESOURCES CONSUMED TO PRODUCE THE DEFINED OUTPUT. IT IS THE PRICE RATIO OF CURRENT PERIOD TO THE BASE PERIOD

APPLICATIONS OF PRODUCTIVITY TECHNIQUES

APPLIED TO ALL FUNCTIONAL AREAS BOTH IN MFG AND SERVICES CONCEPTS OF PRODUCTIVITY VITAL TO SUCCESS AND SURVIVAL OF ORG IN TODAYS HIGHLY COMPETITIVE GLOBAL BUSINESS ENVIRONMENT ONLY MEASUREMENT OF PRODUCTIVITY INADEQUATE FOR COMPANY TO SURVIVE CONTINUOUS IMPROVEMENT IN PRODUCTIVITY IN ALL FUNCTIONAL AREAS AT A RATE FASTER THAN COMPETITION IS A DECISIVE BUSINESS FACTOR FOR SURVIVAL AND SUCCESS OF COMPANY

KEY PARAMETERS
MARKETING ACCURACY OF DEMAND FORECASTING -COST LEADERSHIP -SERVICING SPEED AND EFFECTIVENESS -OPTIMISED PRODUCT MIX PRODUCTION -INVENTORY CONTROL -JUST IN TIME -PROCUREMENT COST -SAFETY

AREAS OF PRODUCTIVITY TECHNIQUES

SUPPLY CHAIN MGT DEMAND FORECASTING COST MANAGEMENT LOGISTIC MGT SERVICING SPEED AND EFFECTIVENESS METHOD STUDY PLANT LAYOUT MATERIAL HANDLING INVENTORY CONTROL (INV TURNOVER RATIO) WORK MEASUREMENT

AREAS OF PRODUCTIVITY TECHNIQUES

MOTION STUDY MATERIALS MGT AND CONTROL ENERGY CONSUMPTION CONTROL PRODUCTION PLANNING AND CONTROL INVENTORY MODELS ERGONOMICS SAFETY JOB EVALUATION

CAUSES OF POOR PRODUCTIVITY

LACK OF PRODUCTIVITY MEASURES BY WAY OF ABSENCE OF A SYSTEM TO CAPTURE CORRECT AND TIMELY INPUTS RELEVANT TO PRODUCTIVITY MEASUREMENTS ESPECIALLY FOR ADMINISTRATIVE STAFF FAULTY APPRAISAL SYSTEM BASED ON QUALITATIVE JUDGEMENTS INADEQUATE WORK ASSIGNMENT DEMOTIVATED OR UNDER CAPABLE EMPLOYEES LOW EMPLOYEE INVOLVEMENT HUMAN CONFLICTS LACK OF TRAINING AND SKILLS UPGRADES TECHNOLOGICAL CHANGES ESPECIALLY FROM CLIENT SERVER TO THIN CLIENT UNBALANCED PRODUCTION LINE OR UNRELIABLE LINE RESULTING IN DOWNTIME AND IDLE TIME

MATERIAL BASED PRODUCTIVITY TECHNIQUES

INVENTORY CONTROL SUPPLY CHAIN MGT MATERIAL HANDLING QUALITY ASSURANCE JUST IN TIME MFG AND PROCUREMENT

PEOPLE BASED PRODUCTIVITY TECHNIQUES

INDIVIDUAL FINANCIAL INITIATIVES GROUP FINANCIAL INITIATIVES LIBERAL FRINGE BENEFITS EMPOWERMENT AND OWNERSHIP TRAINING AND PERSONAL DEVELOPMENT JOB ENRICHMENT AND ROTATION EMPLOYEE PARTICIPATION IN MGT

PRODUCT BASED PRODUCTIVITY TECHNIQUES

VALUE ENGINEERING PRODUCT DIVERSIFICATION PRODUCT SIMPLIFICATION PRODUCT FLEXIBILITY AND AGILITY BENCHMARKING

 WORK MEASUREMENT INCLUDING METHOD STUDY , TIME STUDY , MOTION STUDY JOB DESIGN JOB EVALUATION AND JOB SAFETY

TASK BASED PRODUCTIVITY TECHNIQUES

ILO APPROACH TO PRODUCTIVITY IMPROVEMENT

ILO APPROACH IS TASK BASED IT BREAKS MFG TIME INTO BASIC WORK CONTENT ,ADDED WORK CONTENT AND INEFFECTIVE TIME APPROACH FOCUSES ON REDUCING INEFFICIENT TIME IN THE TOTAL WORK CONTENT

INEFFECTIVE TIME
ALL INTERRUPTIONS WHICH CAUSE STOPPAGE IN OPERATION IS REGARDED AS INEFFICIENT TIME BECAUSE NO WORK EFFECTIVE TOWARDS COMPLETION OF OPERATION IN HAND IS BEING DONE DURING PERIOD OF INTERRUPTION INEFFECTIVE TIME DUE TO SHORTCOMINGS BY MGT.TIME DURING WHICH MAN/MC IS IDLE BECAUSE MGT FAILED TO PLAN DIRECT OORDINATE OR CONTROL EFFICIENTLY

REDUCTION IN INEFFECTIVE TIME

INEFFECTIVE TIME WITHIN CONTROL OF WORKER CAN BE REDUCED THRU ADOPTION OF FOLLOWING INITIATIVES - POOR DESIGN AND FREQUENT DESIGN CHANGES -WASTE OF MATERIAL -INCORRECT QUALITY STDS -POOR LAYOUT AND UTILIZATION OF SPACE -INADEQUATE MATEIAL HANDLING -FREQUENT PRODUCTION STOPPAGES -INEFFECTIVE WORK METHODS -POOR WORK PLANNING -FREQUENT BREAKDOWNS -ABSENTEEISM , WRONG ATTITUDES -POOR WORKMANSHIP -ACCIDENTS AND SAFETY ISSUES

SURVEY RESULTS ON PRODUCTIVITY

TYPICAL 8 HR DAY -3.5 HRS(44%) PRODUCTIVE TIME -1.2 HRS(15%) UNAVOIDABLE DELAYS -3.3 HRS(41%) WASTED TIME REASONS FOR PRODUCTIVITY LOSS -POOR PLANNING AND WORK SCHEDULING (35%) -UNCLEAR INSTRUCTIONS TO EMPLOYEES(25%) -INABILITY TO ADJUST STAFF SIZE AND DUTIES DURING PEAK LOADS(15%)eg BANK CASH DISPENSING TELLERS -POOR COORDINATION OF MATRL FLOW ,UNAVAILABILITY OF MACHINE(25%)

COMMON MFG RATIOS

UNITS PRODUCED/LABOR HRS REWORK HRS REQD/UNITS PRODUCED NUMBER DEFECTS/TOTAL UNITS MACHINE UTILIZATION % WT OF WASTE/WT OF FINISHED GOODS WT OF FINISHED GOODS/RM WEIGHT

COMMON SERVICES RATIOS

NUMBER OF CUSTOMER COMPLAINTS/ORDERS DELIVERED OR NUMBER OF PRODUCTS SOLD NUMBER OF DATA ENTRY ERRORS /TOTAL DATA ENTERED LATE DELIVERIES/TOTAL DELIVERIES PROJECT PLANNED COST/ACTUAL COST OVERTIME HRS/REGULAR HRS CUSTOMER RETURNS% WARRANTY COSTS/SALES%

HARD METRICS IN PRODUCTIVITY

PLANT UTILIZATION ENERGY EFFECTIVENESS INDEX NUMBER OF ACCIDENTS AND HRS LOST DUE TO ACCIDENTS OVERALL PLANT EFFECTIVENESS OVERALL PROCUREMENT EFFECTIVENESS OVERALL DISTRIBUTION EFFECTIVESS

SOFT METRICS IN PRODUCTIVITY

EMPLOYE MORALE EMPLOYEE LOYALTY EMPLOYEE INVOLVEMENT JOB SATISFACTION HONESTY

SUMANTHS TOTAL PRODUCTIVITY MODEL

MODEL DEFINES TOTAL PRODUCTIVITY MEASURE WHICH INCLUDES ALL THE OUTPUT AND INPUT FACTORS THE TPM IS BASED ON TANGIBLE OUTPUT AND INPUT ELEMENTS WHICH ARE DIRECTLY MEASUREABLE AND QUANTIFIABLE MODEL ALSO REFLECTS THE IMPACT OF INTANGIBLES DIRECTLY eg IF THE TOTAL PRODUCTIVITY LEVEL GOES DOWN IN A PERIOD IT COULD BE BECAUSE OF POOR QLTY OF RAW MATRL WHICH INCREASE THE MATRL INPUT OR REDUCED OUTPUT AS A RESULT OF REWORK

IMPLEMENTATION PROCESS FOR TOTAL PRODUCTIVITY MGT

MISSION STATEMENT DEVELOPMENT
TOTAL PRODUCTIVITY MODEL AND COMPREHENSIVE TOTAL PRODUCTIVITY MODEL ANALYSIS MGT GOALS DEVELOPMENT FISHBONE ANALYSIS ACTION PLANS DEVELOPMENT PRODUCTIVITY QUALITY TEAM TRAINING IMPLEMENTATION OF ACTION PLANS ASSESSING THE EXTENT TO WHICH THE MGT GOALS ARE ACHIEVED TOTAL PRODUCTIVITY GAINSHARING NEW GOALS DEVELOPMENT

STEP 1 MISSION STATEMENT

AN ENTERPRISE WITHOUT A MISSION STATEMENT IS LIKE A BUILDING WITHOUT A FOUNDATION MOST COMPANIES HAVE SO LITTLE SUCCESS WITH NEW IDEAS BECAUSE THEY DONT HAVE A CENTRAL GUIDING PHILOSOPHY CAPTURED THRU A VISION AND A MISSION A VISION REPRESENTS A VERY LONG TERM GOAL A MISSION REPRESENTS A SHORT TO MEDIUM TERM STATEMENT OF PURPOSE A MISSION STRETCHED OVER A RELATIVELY LONG PERIOD OF TIME BECOMES A VISION A CORRECTLY DRAFTED MISSION SHOULD HAVE SEVERAL CHARACTERISTICS

FACTORS TO BE CONSIDERED IN MISSION STATEMENT

HIGHLIGHT MAJOR STRENGTHS HIGHLIGHT ENVIRONMENTAL FACTORS SUCH AS ECONOMIC,POLITICAL,SOCIAL) STRATEGY FOR COMBATTING COMPETITION QUALITY OF SERVICE STRATEGY FOR SUPPLIERS CUSTOMER CHARACTERISTICS MARKET CHARACTERISTICS

CHARACTERISTICS OF GOOD MISSION STATEMENT

ARTICULATES GUIDING PHILOSOPHY OF ENTERPRISE WITH A CENTRAL FOCUS CONCISELY WORDED COMES NATURALLY TO EVERYONE DEVELOPED CAREFULLY THRU ACTIVE INVOLVEMENT OF EMPLOYEES NEEDS TO BE REVISED AS PER THE TACTICAL AND STRATEGIC PLANS OF THE COMPANY AND THE THEN PREVAILING INDUSTRIAL ENVIRONMENTAL OUTLOOK

STEP 2 TPM ANALYSIS

TRENDS DISCOVERY IN -TOTAL PRODUCTIVITY
-BREAK EVEN POINT OF TOTAL PRODUCTIVITY -HUMAN PRODUCTIVITY -MATERIALS PRODUCTIVITY -FIXED CAPITAL PRODUCTIVITY -WORKING CAPITAL PRODUCTIVITY -ENERGY PRODUCTIVITY -OTHER EXPENSES PRODUCTIVITY

STEP 3 MANAGEMENT GOALS

FOUR CRITERIA FOR A GOAL TO QUALIFY AS A MGT GOAL EVERY MGT GOAL MUST -ACHIEVE MISSION STATEMENT -BE VERY SPECIFIC -BE TIME BASED -BE VERIFIABLE IN HMT THE GOALS ESTABLISHED WERE -INCREASE HUMAN PRODUCTIVITY BY 7% PER YEAR -INCREASE OTHER EXPENSE PRODUCTIVITY BY 3.5% YRLY -REDUCE INVENTORIES BY 5% INORDER TO INCREASE WORKING CAP ITAL PRODUCTIVITY

STEP 4 FISHBONE ANALYSIS

WELL ESTABLISHED TOOL TO ANALYZE THE CAUSES FOR A PROBLEM FISHBONE ANALYSIS DONE FOR EACH OF MGT GOALS IN STEP 3 IF A COMPANY CAREFULLY ANALYZES ALL TASKS , PROCESSES AND TECHNIQUES NEEDED TO ACCOMPLISH EACH MGT GOAL , IT WILL BE BETTER EQUIPPED TO ALLOCATE RESOURCES TOGOALS THAT WOULD ATTAIN ITS MISSION

Cause-and-Effect Diagram for Manufacturing

Exhibit S6.8

STEP 5 ACTION PLANS

ACTION PLAN IS DEVELOPED FOR EACH MGT GOAL ACION PLAN INCLUDES DETAILS OF TASKS ,START AND END DATES,PEOPLE RESPONSIBLE FOR EACH TASK ACTION PLAN IS ANOTHER WAY TO CREATE A CAREFUL THOUGHT OUT PLAN OF ACTION TO ACHIEVE A MGT GOAL TOOL TO ASSIGN PEOPLE TO TASKS WHICH WHEN ACCOMPLISHED WILL ACHIEVE MGT GOALS WHICH IN TURN WILL AID ACHIEVEMENT OF VISION AND MISSION ACTION PLAN HELPS IDENTIFY BOTTLENECKS

STEP 6 PRODUCTIVITY QUALITY TEAM TRAINING

TRG IS PROVIDED TO ALL EMPLOYEES SO THAT THEY HAVE THE REQUISITE TOOLS TO ACCOMPLISH TASKS IN THE ACTION PLANS IN AN EFFECTIVE AND EFFICIENT MANNER TRAINING FOCUSES ON PROBLEM SOLVING

STEP 7 IMPLEMENTATION OF ACTION PLANS

IMPLEMENTATION BECOMES MORE SYSTEMATIC WITH DETAILED ACTION PLAN ACTION PLANS ARE CONSTANTLY REVISED AS THE TASKS PROGRESS THER IS A CONTINUOUS FEEDBACK CONTROL WHICH IS MONITORED CAREFULLY

STEP 8 MGT GOALS ACHIEVED

PROGRESS TOWARDS ACHIEVEMENT OF GOALS IN STEP 3 ASSESSED ON A PERIODIC BASIS SAY QUARTERLY IF A GOAL IS NOT ACHIEVED THE ACTION PLAN RELATED TO THAT GOAL NEEDS TO BE REVIEWED AND CORRECTIVE ACTION INITIATED WHICH INCLUDES DOWNSIZING OF GOAL IF ACHIEVEMENT IS NOT POSSIBLE DUE TO INTERNAL AND EXTERNAL ENVIRONMENTAL CAUSES

STEP 9 TOTAL PRODUCTIVITY GAIN SHARING

BRAINSTORMING APPROACH BASED ON TOTAL PRODUCTIVITY STEP PROVIDES FOR A TANGIBLE MONETARY INCENTIVE TO ACHIEVE THE MAXIMUM POSSIBLE POTENTIAL OF TPM REASONS FOR INCLUDING GAIN SHARING IN TPM INCLUDE -NEED TO SUSTAIN MOTIVATION IN NEW CONCEPTS. INTANGIBLE MOTIVATION IS A NECCESARY CONDITION NOT A SUFFICIENT ONE TO SUSTAIN POSITIVE MOTIVATION -IT IS FAIR TO SHARE GAINS WITH RESPONSIBLE FOR IT -RATE OF NEW HIRING CAN BE REDUCED DRAMATICALLY

SELECTED ELEMENTS IN PRODUCTIVITY LINKED BONUS INCREASED PRODUCTION

REDUCED LABOUR COSTS BETTER MATERIAL UTILIZATION MINIMIZED OVERHEAD EXPENSES OPTIMUM UTILIZATION OF CAPITAL EMPLOYED AND HIGH LIQUIDITY OF CURRENT ASSETS BETTER PRODUCT DESIGNS AND REDUCED TIME TO MARKET REDUCTION IN WASTE

STEP 10 NEW GOALS

SET NEW GOALS WHEN ALL PREVIOUS GOALS HAVE BEEN ACHIEVED SET ANNUAL GOALS. THIS LOOKS OKAY BUT IN A DYNAMICALLY CHANGING SITUATION ANNUAL REVIEW OF GOALS MAY BE A BIT TOO LATE. NEED TO REVIEW EITHER ON A QTRLY BASIS OR WHENEVER SITUATION WARRANTS

HOW DO WE IMPROVE PRODUCTIVITY

THE PROFIT GOAL

PROFIT = REVENUE - COSTS

MAJOR STEPS
Analyze the Revenues Analyze the Costs And then Prioritize Find the Vital Few Components of cost

ANALYZE REVENUE SOURCES

ANALYZE COSTS

CLOSELY LOOK AT
Labour costs Material costs Energy costs Finance costs Overhead costs

HOW PRODUCTIVITY CAN BE IMPROVED

INCREASING OUTPUT WITH SAME INPUT INCREASING OUTPUT MORE THAN THE INCREASED INPUT DECREASING INPUT FOR SAME OUTPUT INCREASING OUTPUT WITH DECREASED INPUT

IMPROVING LABOUR PRODUCTIVITY

Improving working conditions- lighting, ventilation, noise(music), temperature, work times Using appropriate and better tools Ergonomics and better work station layout. Improving factory, stores & office layout. Improving the method/process - use 5Ws & IH Improving the nutritional status of the worker Improving industrial housekeeping(5s) and safety Improving welfare facilities and worker motivation

USE THE BRAINS OF THE WORKER

Quality Circles Staff Suggestion Schemes Kaizen System(Seiri-sort,Seiton-Setorder, Seiso-clean-up-Shine Seiketsustandardize, Shitsuke-Sustain-Training & Discipline) 3 Mu -Muda(Waste), Muri(Strain),Mura(Discrepancy)

IMPROVING CAPITAL PRODUCTIVITY

Implement TQM Reduce Working capital Reduce floor space Utilize machinery & equipment better etc..

IMPROVING MATERIAL PRODUCTIVITY

Cheaper material Alternative material Cheaper sources Better utilization

IMPROVING ENERGY PRODUCTIVITY

Improve power factor Reduce wastage Change processes for less heating Study working procedures etc.

BENEFITS OF TOTAL PRODUCTIVITY MGT

CUSTOMER RESPONSIVENESS QUALITY COMPETITIVENESS TOTAL COST COMPETITIVENESS TEAM BUILDING AND ACCOUNTABILITY TECHNOLOGY PLANNING INVESTMENT ANALYSIS ACQUISITION AND MERGER PLANNING PROFIT TARGETTING

MAKE PRODUCTIVITY A WAY OF LIFE

Think Productivity Talk Productivity Demonstrate Productivity Be Productive at Home, on the Road, and in Office

REMEMBER! Productivity starts with You !

ENERGY PRODUCTIVITY

Energy use transitions hold key to future trajectory

Household energy mix is rapidly moving from inefficiently-utilized biomass to gas and electricity Commercial space is increasing; and energy use is commercial space is increasing at a faster pace Industrial energy intensity is declining, but there is a wide bandwidth of specific energy consumption within industrial sectors

Barriers to Energy Efficiency

Lack of information about comparative energy use especially of appliances bought by retail consumers Perceived risk due to lack of confidence in performance of new technologies in appliances, building design, industrial technologies Higher cost of energy-efficient technologies Asymmetry in sharing of costs and benefits especially in the buildings sector

Energy Policy of India Short term

Maximize returns from the existing assets Current deficit in demand supply is 15% peakload Reduce losses in transmission and distribution(43% losses) and in end use Initiate action to reduce energy intensity of different consuming sectors and promote conservation through organizational and fiscal measures Initiate steps to meet the basic energy need of rural and urban households so as to reduce the existing inequities. Maximize satisfaction of demand for energy from indigenous resources

Source: BEE-IREDA

Energy Policy of India Medium term

Progressive steps to substitute petroleum products by coal, natural gas and electricity Action for accelerated development of all renewable energy resources especially hydro potential Promote programmes to achieve self-reliance in energy sector Create appropriate organizational changes in consistent with the over all energy strategy
Source: BEE - IREDA

Energy Policy of India Long term

Promote an energy supply system, largely based on renewable sources of energy Promote technologies of production, transportation and use of energy that are environmentally benign and cost effective

Sorces: BEE - IREDA

Potential for Energy Conservation

Indias energy intensity per unit of GDP is higher compared to Japan, US and Asia by 3.7, 1.55 and 1.47 times respectively. This indicates inefficient use of energy but also substantial scope for energy saving. One unit of energy saved at the consumer end avoids nearly 2.5 to 3 times of capacity augmentation due to PLF, auxiliary consumption and T & D losses The conservative estimate of potential of energy saving in India is creating nearly 25,000 MW of new capacity Source: Powerline

Potential for Energy Conservation Sector-wise

Sector
Industrial Transport Agricultural Domestic and Commercial Economy as a whole

Potential %
Up to 25 Up to 20 Up to 30 Up to 20 Up to 23
Source: Powerline

Potential for Energy Conservation

Industrial Sector
Industry
Iron and Steel Fertilizer Textile Cement Paper Aluminum Sugar Petrochemicals Refineries

Saving Potential %
10 15 25 15 25 10 20 15 10
Source: Powerline

Potential for Energy Conservation Agricultural Sector

Code Nature of Improvement Reduction in consumption % Up to 25

R1 R2 R3 R4

Low resistance foot valve and suction pipe R2 + Higher efficiency Pump R3 + Lower rating motor
Source: Powerline

R1 + Low friction delivery pipe Up to 35 Up to 45 Up to 60

Potential for Energy Conservation Commercial Sector

End-Use
Lighting Cooling Ventilation Heating Refrigeration Water Heating Miscellaneous

Saving estimate %
Up to 50 Up to 50 50 15 - 40 15 - 40 40 - 60 10 - 30
Source: Powerline

Potential for Energy Conservation Residential Sector

End Use Lighting Cooling / Ventilation Refrigeration Saving estimate % 20 - 50 15 -50 15 - 40

Water heating equipment 20 -70 Miscellaneous Equipment 10

Source: Powerline

Energy Conservation Case Studies Century Rayon (Savings achieved)

Description 2008-09 2009-2010 Reduction in % 22

Electrical energy Cost

204.7 MU

161.1 MU

Rs 633.4 million

Rs 431.3 million
Source: IREDA-BEE

32

Energy Conservation and productivity

In broad sense, energy conservation means more efficient use of energy without reducing production levels and without sacrificing product quality, safety or environmental standards. Productivity is defined as the output of any production process, per unit of input. To increase productivity means to produce more with less. Traditional energy managers considered EC opportunities as independent of other industrial productivity related opportunities Energy-only recommendations had little impact on the productivity of manufacturing plant

Energy Conservation
A key factor to productivity
Indian energy intensive industries (cement, Iron & steel, aluminum, textiles, paper, chlor-alkalis etc) consumes 65 % of Industrial energy Energy cost accounts for
40 % of Aluminum production cost 30 35 % of Iron and Steel production cost 30 32 % of Cement production cost 30 % of Paper production cost 50 60 % of Chlor-alkalis production cost 12 15 % of Textiles production cost
Source: renewingindia, icraindia

Energy Conservation
A key factor to productivity -Contd
The potential for energy conservation is around 25 % in Indian Industries and 23 % for whole Indian economy No other constituent of manufacturing can influence the productivity to this great extent No other constituent of manufacturing can have a great potential for improvement in productivity Energy is a manageable expenses and it can be easily controlled through dedicated efforts. Energy Conservation is the quickest, cheapest and most practicable method of increasing the productivity. Hence Energy Conservation will be one of the most important factor to increase the productivity in the future

Energy Conservation
A key factor to productivity -Contd

Industry
Iron and Steel Textile Cement Paper Aluminum

Energy Saving Potential %

10 25 15 25 10
Source: Powerline

What can I do now to curb rising utility costs?

How can I better control utility costs in the future? Identify opportunities Optimize use of facilities Switch off power when not needed

WASTE MANAGEMENT

Introductory Quotation
Waste is anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product. Shoichiro Toyoda President, Toyota
1995 Corel Corp.

What is WASTE?
Any Activity that DOES NOT increase the Market Form or Function of the Product or Service based on the Critical Customer Requirements.

These are things the customer is NOT willing to pay for.

120

DEFINITION OF WASTE
THE OXFORD DICTIONARY DEFINES WASTE AS UNPURPOSEFUL OR EXTRAVAGANT ACTIVITY WHICH RESULTS IN UNPRODUCTIVE END RESULTS WASTE IS A PRODUCT,ACTIVITY OR SERVICE FOR WHICH AN EXTERNAL CUSTOMER IS UNWILLING TO PAY FOR CASE OF SECURITY CESS IN RAILWAYS WASTE IS ONLY NUISANCE VALUE TO CUSTOMER

WASTE MANAGEMENT
WASTE EXISTS EVERYWHERE FROM INDUSTRY TO HUMAN ACTIVITIES IN ANY PROCESS WASTE ACCOUNTS FOR A VERY LARGE AMOUNT OF NON VALUE ADD ACTIVITY MGT NEEDS TO CONTROL ACTIVITIES BETTER THRU TIGHTER CONTROL WASTE MGT IMPROVES COSTS AND PRODUCTIVITY AND REDUCES CYCLE TIMES

MUDA MURI MURA

3 JAPANESE TERMS USED BY TOYOTA TO SIGNIFY DIFFERENT TYPES OF WASTES MUDA IS WASTE. TWO TYPES OF WASTE TYPE 1 MUDA UNAVOIDABLE WASTE OR FORCED SCRAP(ESSENTIAL NVA);TYPE 2 OR AVOIDABLE WASTE MURA IS WASTE OF INCONSISTENCY OR UNEVENNESS OF FLOW.UNEVENNESS IN PRODUCTION FORCES PROCESSES TO DEAL WITH SPIKES IN DEMAND AND HAS IDLENESS IN SLACK PERIODS 123 MURI IS OVERBURDENING OF SYSTEM

Eliminate Waste
Muda anything that does not add value for the customer
Products in storage Products being inspected Products waiting in queues Defective products Unnecessary movement of materials or workers - 2 TYPES OF WASTES TYPE 1 WASTE WHICH IS
ESSENTIAL NON VALUE ADD ACTIVITIES AND TYPE 2 WASTE WHICH IS ELIMINATABLE eg INSPECTION
124

 Idle machine run Waiting for parts Counting parts Overproduction Moving parts over long distances Storing inventory Looking for tools Machine breakdown 125Rework

Examples of Waste

Common Causes of Waste

Layout (distance) Long setup time Incapable processes Poor maintenance Poor work methods Lack of training Inconsistent performance measures Ineffective production planning Lack of workplace organization Poor supply quality/reliability

Common Causes of Waste

Excess Manning
Poor layout and material presentation Rework and extra processes Inconsistent / inefficient work methods

Excess Downtime
Tooling condition Unreliable equipment Long changeovers Incapable process

Defectives - Rework or Replace

Incapable processes or process not compatible with customer expectations or design spec (design for mfg) Tooling condition Operator methods and errors

Where is the Waste?

Defects incomplete or incorrect information Overproduction releasing work before next process can work on them, unbalanced work loads Waiting unbalanced work loads, slow system response, incomplete information, approvals Not Utilizing Employees old guard thinking, politics, high turnover, low investment in training Transportation poor layout, poor flow Inventory large batches, complexity to complete task Motion poor organization, no standard work Excess Processing excess communication, lack of communication, unnecessary approvals, customer requirements are not clearly understood

All processes have waste.

128

Types of Waste (Muda) in Toyota production system

.

Overproduction Waiting Transportation Inventory Motion Overprocessing Defects

9-129

PRODUCING DEFECTS
DEFECTS IN PRODUCT / SERVICE ARE MAJOR SOURCE OF WASTE COSTS OF WASTE INCLUDE WARRANTY COSTS,ATTENDING COMPLAINTS AS WELL AS REWORK,INSPECTION CASE OF DELL COMPUTERS PRODUCT DEFECTS TO BE ELIMINATED BY QUALITY ASSURANCE IN DESIGN ELIMINATING NEED TO INSPECT OR REWORK DEFECTS INCREASE PRODUCTION COSTS AND LEAD TIME OF MANUFACTURE DEFECTS DUE TO WRONG OPERATING PROCEDURES,VARIATIONS IN OPERATIONS RESULTING IN M/C WEAR,DEFECTIVE RAW MATRL,OPERATOR ERROR etc

TRANSPORTATION AND MATERIAL HANDLING

ITEMS IN MFG MOVED FROM STATION TO STATION TRANSPORTATION WASTES TIME AND IN THE CASE OF HUMAN BEINGS WHO MAY HAVE TO MOVE FROM STATION TO STATION TO DO WORK IT IS FATIGUING AND CAUSES DECLINE IN PRODUCTIVITY AND INCREASE IN ERROR RATES OBJECTIVE IS TO MINIMIZE HUMAN EFFORT IN TRANSPORTATION AND MATERIAL HANDLING BY HAVING CONVEYOR BELTS CASE STUDY OF AUTOMOBILE ASSEMBLY LINE WHERE AUTOMOBILE MOVES ON THE CONVEYOR BELT AND MAN IS STATIONARY.TIME REDUCED FROM 12HRS/CAR TO 1 HR/ASSEMBLY

INVENTORY
INVENTORY AS PER TOYOTA IS ONE OF THE SEVEN SINS INVENTORY REPRESENTS ITEMS WAITING FOR SOMETHING TO HAPPEN (JUST IN CASE) INVENTORY IS CARRIED TO PREEMPT DELAYS IN DELIVERY OF PROCESS INPUT OR TO PROVIDE FOR CUSHION STOCKS TO TAKE CARE OF MFG REWORK/SCRAP (SOME CUSHIONS ACCOUNT FOR AS MUCH AS 5% OF RAW MATERIAL) WASTES ASSOCIATED WITH HOLDING COSTS, DEPRECIATION, EXPIRY DATES , DETERIORATION. PILFERAGE ETC JUST IN TIME IS THE REMEDY FOR EFFECTING ZERO INVENTORY

OVERPRODUCTION EXCESS PRODUCTION BECAUSE OF WRONG SALES FORECASTS OR ATTEMPT TO KEEP FACILITIES RUNNING MFG OF EXCESS PRODUCTION IS WASTE CASE OF ALL SALES OF READY MADE GARMENTS WASTE FROM OVERPRODUCTION IS REFLECTED IN UNSOLD STOCKS WHICH ADD TO FINISHED GOODS INVENTORY

WAITING
WASTE OF WAITING IS EASY TO IDENTIFY WAITING IS A RESULT OF UNBALANCED PROCESS SEQUENCE OR BREAKDOWN IN BOTTLENECK PROCESS INCLUDES WAITING FOR ORDERS, RAW MATERIAL, POWER, SPARES, LABOUR OR EVEN FUNDS TO PROCURE RESOURCES WAITING ALSO INCLUDES ITEMS FROM PRECEDING PROCESSES EXAMPLE OF PILE UP OF WIP OR PERISHABLES AWAITING CUSTOMS CLEARANCE

WAITING
WAITING MINIMIZED BY BUSINESS PROCESS ACTIVITY IMPROVEMENT OR MINIMIZATION OF LEAD TIME TO PROCURE THROUGH VENDOR MANAGED INVENTORY OR OTHER INITIATIVES WAITING ALSO MINIMIZED BY GOOD MAINTENANCE PRACTICES SUCH AS CBM RESULTING IN MAXIMIZED EFFECTIVENESS

PROCESSING
PROCESS MAY CONTAIN ACTIVITIES WHICH ARE INEFFECTIVE OR UNNECCESARY PROCESSING WASTE CAN BE ELIMINATED BY MINIMIZING MOTION REQUIRED TO PERFORM WORK ACTIVITY ANALYSIS DONE TO DETERMINE PROCESS UTILISATION TIME AND THEREAFTER PROCESS IMPROVEMENT DONE TO ELIMINATE DELAYS AND NON VALUE ADDED ACTIVITIES

MOTION
BEING IN MOTION IS INCORRECTLY CONNOTED TO BE AT WORK MOTION AND WORK ARE NOT THE SAME WORK IS CONSIDERED A PARTICULAR KIND OF MOTION THAT ADDS VALUE AN APPARENTLY BUSY PERSON MAY ACTUALLY PRODUCE VERY LITTLE WORK INHERENT HANDICAP AT RIGHT HANDED WORKPLACE FOR LEFTHANDERS MOTION UNREQD TO DO WORK IS WASTE EXCESSIVE MOTION CAUSES FATIGUE AND LOSS OF PRODUCTIVITY AND INCREASE OF WASTE CASE OF BEARING LIFETIME INVERSELY PROPORTIONAL TO RPM

ROOT CAUSE OF TOYOTA WASTES

USAGE OF 5 WHY ANALYSIS DEFECTS -INADEQUATE DESIGN POOR MATERIAL -WRONG PROCESS SPECIFICATIONS -OPERATOR ERROR -INADEQUATE TESTING TRANSPORTATION -WAIT TIME TO TRAVEL -LAYOUT INVENTORY -OBSOLETE STOCKS JUST IN CASE WRONG FORECST CUSTOMER CANCELLATIONS MKT SLUMP OVERPRODUCTION -WRONG FORECAST

ROOT CAUSE OF TOYOTA WASTES

WAIT TIME -IMBALANCE IN PROCESS THROUGHPUT OR PROCESS BREAKDOWN -POOR SCHEDULING -INADEQUATE LABOUR SCHEDULING MOTION -EXCESS MOTION EXCESS PAPER DISTRIBUTION PROCESSING -INEFFECTIVE OR NON VALUE ADDED STEPS

REMEDIES FOR TOYOTA WASTES

WASTE
OVERPRODUCTION WAITING TRANSPORTATION WRONG PROCESSING EXTRA INVENTORY EXTRA MOTION DEFECTS

REMEDY
JIT/PULL PRODUCTION PROCESS ACTIVITY STUDY MOTION STUDY METHOD STUDY JUST IN TIME MOTION STUDY ROOT CAUSE ANALYSIS AND FMECA

OTHER(canon) WASTES
WASTED CAPACITY WASTED ENERGY WASTE FROM LOST OPPORTUNITY WASTE FROM UNREQD EXPENSES WASTE FROM UNUTILISED TALENT WASTE FROM LOSSES DUE TO EFFICIENCY,STARTUP,IDLING, BATCH CHANGEOVER WASTE DUE TO COMMN LOSSES OR INEFFECTIVENESS OF COMMN WASTED PLANNING EFFORTS WASTED INVESTMENTS WASTED OVERSTAFFING WASTE IN DISPOSAL

OFFICE WASTES
ERRORS IN DOCUMENTS DOING UNREQUIRED WORK NOT REQUESTED PROCESS OF GETTING APPROVALS AND NEEDLESS LEVELS OF APPROVALS BACKLOG OF WORK UNREQUIRED STATIONERY FILES PAPERS AT WORKPLACE UNCLEAR JOB DESCRIPTIONS RESULTING IN UNDEFINED OUTCOMES EXCESS DEBIT CREDIT NOTES DUE TO ERRONEOUS PO INVOICE OBSOLETE DATABASES TYPOGRAPHICAL ERRORS UNREQUIRED COMMUNICATION

LEVELS OF WASTE
FOUR LEVELS OF WASTE -BUSINESS LEVEL WASTES -PLANT LEVEL WASTES -PROCESS AND METHOD WASTES -OPERATING LEVEL WASTES

LEVEL 1 BUSINESS LEVEL WASTE

LONG TERM AND SHORT TERM GOALS NOT COMMENSURATE WITH CAPABILITIES AND CAPACITY SHORT TERM GOALS NOT ALIGNED WITH LONG TERM STRATEGIC GOALS WHICH ENABLE THE REALISATION OF VISION STRATEGIC OBJECTIVES OF EACH FUNCTION NOT IN UNISON WITH CORPORATE OBJECTIVES LACK OF COORDINATION AND UNDERSTANDING WITH STAKEHOLDERS LOP SIDED FINANCING INSTAL OF EXTRA CAPACITY W/O MAXIMISATION OF CURRENT STRATEGIC DIVERSIFICATION IN AREAS WITHOUT OPPORTUNITIES AND CORE COMPETENCE INEFFICIENT PRODUCT LIFECYCLE PLANNING AND MGT

LEVEL 2 PLANT LEVEL WASTE

POOR PPC NOT BASED ON MARKET DYNAMICS HIGH INVENTORIES LOW PLANT EFFECTIVENESS AND UNPROFITABLE OPERATIONS HIGH OVERTIME PAYMENTS BUT LOW EMPLOYEE PRODUCTIVITY

LEVEL 3 PROCESS AND METHODS LEVEL WASTE

INCORRECT OR INEFFECTIVE PROCESS METHODS BORNE OUT OF LACK OF SKILLS OR ATTITUDE NEED TO MONITOR AND DO PERIODIC METHOD STUDIES TO MAXIMIZE PROCESS THROUGHPUT WITH MINIMUM EFFORT

LEVEL 4 OPERATIVE LEVEL WASTE

POOR OPERATIVE CONTROLS RESULTING IN HIGH MFG COSTS HIGH REWORK/REJECT CONTENT eg .04% value of sales realized thru sale of scrap in 2008-09 and 0.16% value of sales realized in 2009-10 UNDULY HIGH REACTIVE MAINTENANCE % ie 17.5% of maintenance time against 2% world class (includes 7% breakdown)

Root cause of waste

Defects
Inadequate Design Inadequate Testing - Poor Matrl - Wrong Proc - Oper Error

Over Production
Over enthusiastic incentive - Wrong Forecast

Excess Inventory
Obsolete Stocks - Wrong Forecast - Customer amendments/cancellation Poor Quality - Market Condition

Unrequired Motions
Over use of paper/distribution - Excess Walking - Excess Motions

Transportation
Layout - wait time to travel

Wait Time
Poor Scheduling - Imbalance in prodn line - Inadequate labor resource

Root cause of waste

Process
Wrong operations or poor material leading to rework or reject Poor process control Poor operating specifications Untrained or de motivated operators

TOTAL WASTE REDUCTION

STRUCTURED APPROACH TO DEAL WITH WASTES AND DELAYS WITH VIEW TO ELIMINATION APPROACH SEPARATES WASTE(NON VALUE ADD ACTIVITIES) FROM VALUE ADDITION AND SCRUTINISES ESSENTIAL NON VALUE ADD ACTIVITIES FOR MINIMISATION OF WASTEFUL ACTIVITIES PREREQUISITE FOR TQM

TOTAL WASTE REDUCTION

WASTE MAY EXIST IN PROCEDURES POLICIES SYSTEMS AND IS DIFFICULT TO IDENTIFY HIDDEN WASTES AUTOMATION IS NOT THE SOLUTION TO WASTE NEED OF THE HOUR IS TO IDENTIFY REAL WASTES THAT AFFECT BOTTOM LINES WASTE MGT SHOULD BE A CONTINUOUS DRIVE ON THE GUIDELINES OF TQM PERIODIC REVIEW OF POLICIES,PROCEDURES,PROCESSES TO ENSURE PROCESS IMPROVEMENT AND WASTE REDUCTION

TOTAL WASTE REDUCTION

DRASTICALLY IMPROVES QLTY, PRODUCTIVITY,FLEXIBILITY AND SAFETY REDUCES CYCLE TIME AND IMPROVES RESPONSIVENESS MAXIMIZES UTILIZATION OF ASSETS AND PROCESSES MINIMISES [PROCESS LOSSES AND COST OF NON CONFORMITY REDUCES PROCESS AND PRODUCT COST AND IMPROVES CONTRIBUTIONS IMPROVES LIQUIDITY BY FREEING MONEY TIED UP IN INVENTORIES AND OTHER WASTES

ELIMINATION OF 3M
3M EXERCISE DONE TO -ELIMINATE WHOLE ACTIVITY -REDUCE STEPS IN ACTIVITY -CHANGE AND SIMPLIFY ACTIVITY -REDUCE THE TIME COST AND FATIGUE INVOLVED IN ACTIVITY

ELIMINATION OF 3M
3M STAND FOR MUDA MURA AND MURI MUDA MEANS WASTES OF ALL KINDS SUCH AS REWORK,TRANSPORTATION,DELAYS MURA MEANS INCONSISTENCES SUCH AS NON CONFORMANCE TO QLTY AND STD OPERATING PROCEDURES MURI MEANS NON RATIONALITY OR DISCREPANCY ie UNSCIENTIFIC WAY OF DOING THINGS

MUDA
MUDA MEANS WASTE WASTE IS ANY ACTIVITY THAT DOES NOT ADD VALUE SUCH ACTIVITIES CONTRIBUTE TO COST OF POOR QUALITY MUDA IS TOTAL COST OF EXTERNAL PRODUCT/SERVICE FAILURE PLUS THE COST OF PREVENTIVE MEASURES MUDA DEFINED IN TOYOTA 7 WASTES AND CANON 9 WASTES ELIMINATING MUDA REDUCES COST OF PRODN , ENHANCES PRODUCTIVITY , REDUCES CYCLE TIME , AND LEADS TO BETTER CUSTOMER SATISFACTION

MUDA (WASTE) EXPLAINED

OVERPRODUCTION WASTE OCCURS WHEN WE PRODUCE WHAT IS UNNECESSARY, WHEN IT IS UNNECESSARY, AND IN UNNECESSARY AMOUNT. INVENTORY WASTE INVENTORY-SYMPTOM OF ILL HEALTH IN FACTORY OPERATIONS. INVENTORY AVOIDS BUT NEVER SOLVES PROBLEMS. CONVEYANCE WASTE IS A RESULT OF POOR LAYOUT, HANDLING, OF MATERIAL ETC. DEFECT PRODUCTION WASTE HUMAN ERRORS CAUSE DEFECTS, DEFECTS ARE WASTE AND ALSO CAUSE WATE OF DETECTION, CORRECTION, CUSTOMER COMPLAINTS ETC. THEY ALSO DISRUPT NORMAL FLOW OF GOODS AND REDUCE PRODUCTIVITY PROCESS-RELATED WASTE EXAMPLES: I. DRILLING MACHINE SCREW HOLES, EVEN AFTER DESIGN HAS CHANGED THE FASTENING METHOD TO WELDING II. USING SIX SCREWS WHERE FOUR MEET THE PURPOSE. OPERATION RELATED WASTE NOT ALL OF WORKERS MOVEMENT IS WORK OR VALUE-ADDING, SUCH WASTE RESULTS FROM POOR EQUIPMENT LAYOUT OR BY POORLY PLACED PARTS, JIGS & TOOLS. IDLE TIME WASTE INCLUDES HUMAN AS WELL AS MACHINE IDLE TIME. GENERALLY IT IS THE TIME OF WAITING FOR SOMETHING.

8 types of Muda

1. Muda of over-production 2. Muda of waiting 3. Muda of transport 4. Muda of processing 5. Muda of inventory 6. Muda of motion 7. Muda of repair/rejects 8. Muda of Untapped Human potential

MURI
MURI MEANS UNREASONABLE OR IRRATIONAL APPROACH TO ANY OPERATION KAIZEN CHECKLIST TRIES TO LOOK INTO IMPROVEMENT BY IDENTIFYING AND ELIMINATING THE UNREASONABLENESS IN AREAS SUCH AS MANPOWER,TECHNIQUE,METHOD,TIME,FACILITIES,TOOLS, MATERIALS,INVENTORY,PLACE,PRODUCTION,,QUANTITY, QUALITY, etc MURI LOOKS FOR IRRATIONALITY WITH FOUR MAJOR APPROACHES

Muri
Muri = Physical Strain Bend to work? Push hard? Lift weight? Repeat tiring action? Wasteful walk? All this is Muri

4 APPROACHES OF MURI
THINGS OR ACTIVITIES THAT ARE EXTREMELY DIFFICULT TO DO AND AT THE MOMENT BEYOND REACH SHOULD BE IDENTIFIED AND ELIMINATED FROM ACTIVITIES DO NOT PURSUE ACTIVITIES THAT DO NOT ADD VALUE IDENTIFY AND REFINE REASONS FOR PERFORMING ACTIVITIES ELIMINATE IRRATIONAL OPERATIONS THAT CAUSE FATIGUE

MURA
INCONSISTENCY IN OPERATIONS DEVIATION FROM STANDARDS LEADING TO INCONSISTENCY MURA CALLS FOR MINIMUM DEVIATION BETWEEN BEST AND WORST PRODUCT BY MINIMIZING RANGE OF STD DEVIATION USING SPC

EFFORTS REQUIRED IN WASTE MGT INITIATIVE

ELIMINATING WASTE REQUIRES A COMPANYWIDE INTEGRATED EFFORT WHICH INCLUDES ALL CORPORATE FUNCTIONS SUCH AS MARKETING,SALES,FINANCE,MANUFACTURING,R&D. INDUSTRIAL ENGG, QUALITY,CUSTOMER SERVICE, DISTRIBUTION,HR ETC WASTE AS SEEN COMPRISES OF MFG AND ADMIN WASTES ADMIN WASTES COULD BE EXCESSIVE COMMUNICATION,UNCONTROLLED DISTRIBUTION OF INFORMATION, DELAYED INFORMATION ,BREAKDOWN IN ADMIN SERVICES, ERRORS IN COMMERCIAL DOCUMENTS,WASTED SALES CALLS,UNPRODUCTIVE MEETINGS ETC COST OF I.T. /INFRASTRUCTURE DOWNTIME A MAJOR ISSUE AND NEED FOR BUSINESS CONTINUITY PLAN

COST OF WASTE
1.WASTE FROM DEFECTS -PLANNED 1ST QLTY FOR MTH 95% -ACTUAL 1ST QLTY FOR MTH 90% -LOSS/MTR FOR 2ND QLTY IS RS 40 -QLTY LOSS/YR = 5% *0.79MILLION MTRS * 40 *12 = RS 1.896 CR

163

COST OF WASTE
2.WASTE FROM INVENTORY -SPARES/RAW MTRL INV = 6.0CR EXCESS OF 1 MTH INV = 5.0 CR HOLD COST ON INV =5*0.20 = 1.0CR INT ON EXCESS SP/RM =5*0.10 = 0.5CR -TTL WASTE ON A/C INV = 1.5 CR

164

COST OF WASTE
3.OWING TO BREAKDOWN AND PROCESS INEFFICIENCY UNIT PRODUCED 0.07 MILLION MTRS LESS FOR THE MTH WHICH AMOUNTED TO 0.84 MILLION MTRS LESS /YEAR -AVERAGE REALISATION PER MTR IS RS 100 -LOSS PER YEAR ON ACCOUNT OF OPPORTUNTIY LOST IS 0.84 MILLION MTRS * 100 RS/MTR = 8.4 CR RS -TOTALCOST OF WASTE IS 1.896CR + 1.5 CR + 8.4CR =11.796 CRORES

165

COST OF WASTE
NEED TO CALCULATE COST OF WASTE FOR MOTION , PROCESSING, OVERPRODUCTION,TRANSPORT WHICH SHOULD BE LOSS IN PRODUCTIVITY COST OF IDENTIFIED WASTE AS PERCENTAGE OF SALES (135 CR) IS 11.7/135 =8.67% CASE STUDY DOES NOT SUFFER FROM OVERPRODN LOSS OF PRODUCTIVITY IS COMPUTED IN TERMS OF EXPECTED THROUGHPUT VERSUS ACTUAL ACHIEVED LOSS OF PRODUCTIVITY CAN CONTRIBUTE TO AS MUCH AS 5% OF TURNOVER

BUSINESS PROCESS WASTE MANAGEMENT

166

5S

8 Pillars Of TPM

Definition of the Five Ss-PILLAR

The Five S practice is a technique used to establish and maintain a quality environment in a company by improving its organization,
in order to achieve high levels of quality, safety, and productivity, for which workers must have a conducive working environment.

The 5s Principles, Flow of the Five Ss

SEIRI SEITON Organisation/Sorting out; Only keeping necessary item Orderliness/ Neatness/ Systematic Arrangement; Everything has its place The Cleaning/ Shining, Spick and span; Keeping the workplace clean STANDARDIZATION; Making the first 3S s a daily job Sustain/ Self-Discipline; Enforcing the Five S s

SEISO SEIKETSU SHITSUKE

THE 5 Ss
Sort (Seiri) - Perform Sort Through and Sort Out, by placing a red tag on all unneeded items and moving them to a temporary holding area. Within a predetermined time the red tag items are disposed, sold, moved or given away. Set in Order (Seiton) - Identify the best location for remaining items, relocate out of place items, set inventory limits, and install temporary location indicators. Shine (Seiso) - Clean everything, inside and out. Standardize (Seiketsu) - Create the rules for maintaining and controlling the first 3Ss and use visual controls. Sustain (Shitsuke) - Ensure adherence to the 5S standards through communication, training, and self-discipline.

1. Sorting Out (SEIRI)

Decide what you need Remove unnecessary clutter All tools, gauges, materials, classified and then stored Remove items which are broken, unusable or only occasionally used

RED TAG TECHNIQUE

GIVE STAFF RED LABELS

RED TAG

ASK STAFF TO GO THROUGH EVERY ITEM IN THE WORK PLACE ASK IF NEEDED & THOSE THAT ARE NEEDED,IN WHAT QUANTITY NOT NEEDED RED TAG IT STORE IN THE RED TAG AREA

For wavering items

RED TAG

PLACE THE SUSPECTED ITEMS IN THE RED TAG AREA FOR ONE WEEK ALLOW THE STAFF TO REEVALUATE THE NEEDED ITEMS AT THE END OF WEEK THOSE WHO NEED ITEMS SHOULD BE RETURNED

Sorting out (Seiri)

PRIORITY FREQUENCY OF USE HOW TO USE

Low

Less than once per year Once per year

Throw away Store away from the workplace Store together but offline Locate at the workplace

Avg.

Once per month Once per week

High

Once Per Day

2. ORDERLINESS (SEITON)
ONCE YOU HAVE ELIMINATED ALL THE UNNEEDED ITEMS, NOW TURN TO THE LEFT OVER ITEMS study and improve how fast you can put items away, and retrieve them in time of need. The goal should be to realize implementing the PEEP principle (A place for everything, and everything in its place).

ORDERLINESS (SEITON) Organise layout of tools and equipment Designated locations Use tapes and labels Ensure everything is available as it is needed and at the point of use

ORDERLINESS (SEITON)
Workplace Checkpoints: Positions of aisles and storage places clearly marked? Tools classified and stored by frequency of use? Pallets stacked correctly? Safety equipment easily accessible? Floors in good condition?

3. SEISO (CLEAN/SHINE) this includes everyone, from the head honcho to the janitor. Create a spotless workplace Identify and eliminate causes of dirt and grime remove the need to clean Sweep, dust, polish and paint

SEISO (CLEAN/SHINE)

Divide areas into zones Define responsibilities for cleaning Tools and equipment must be owned by an individual Focus on removing the need to clean

Cleanliness involves cleaning every aspect of the organization and the removal of dirt, dust,oil, scraps on the floor, & garbage. Key Deliverables

Increased Safety

Increased Efficiency

A clean Systematic Organization results in increased safety and efficiency.

4. SEIKETSU (STANDARDISE)
Generate a maintenance system for the first three, viz., Seiri, Seiton, Seiso Develop procedures, schedules, practices as standardized daily practices. Continue to assess the use and disposal of items Regularly audit using checklists and measures of housekeeping Real challenge is to keep it clean

5. SHITSUKE

(SUSTAIN / SELF-DISCIPLINE)

Means, inculcate courtesy & good habits Driving force behind all 5S Demings point number 1: Constancy of purpose Make it a way of life Part of health and safety Involve the whole workforce* Develop and keep good habits

5S INSPECTION SHEET AT ASHOK LEYLAND

1=NO IMPL;2=ALMOST NO IMPL; 3=PARTIAL IMPL;4=MAJORITY IMPL; 5=FULL IMPL; *ORGANISE -UNREQD ITEMS -UNAUTHORISED ITEMS -CLEAN WKPLACE -FIREFIGHTING TOOLS *SET IN ORDER -CLEAN CLOTHING -CLEAN WKPLACE -ADEQUATE VENTILATION -CLEAN EQPT

5S INSPECTION SHEET AT ASHOK LEYLAND

1=NO IMPL;2=ALMOST NO IMPL; 3=PARTIAL IMPL;4=MAJORITY IMPL; 5=FULL IMPL; *SWEEP -AREA FREE FROM THRASH AND DUST -EQPT OPERATIONS WORTHY -CLEAN FLOOR -CLEANUP RESPONSIBILITY CLEAR *STANDARDISATION -EVERYTHING IN ITS OWN PLACE -THINGS PUT AWAY AFTER USE -WORK AREA UNCLUTTERED -SHELVES,TABLES ORDERLY

5S INSPECTION SHEET AT ASHOK LEYLAND

1=NO IMPL;2=ALMOST NO IMPL; 3=PARTIAL IMPL;4=MAJORITY IMPL; 5=FULL IMPL; *DISCIPLINE -DRESS AS PER REGULATIONS -SMOKING AREAS OBSERVED -PRIVATE BELONGINGS STORED SECUREDLY -REFRAIN FROM EATING IN WKPLACE

KEY BENEFITS of 5s
Improves efficiency of workplace Improves overall appearance of company Improves self-organization

KEY BENEFITS of 5s
Improves self-organization
RESULTS IN A PLACE EASIER TO MANAGE SMOOTH WORKING NO OBSTRUCTION NO DEVIATION, NO PROBLEMS

B/C EVERYONE KNOWS WHERE THE THINGS ARE SPPOSEDF TO BE

KEY BENEFITS of 5s

Health and Safety is ensured Machine maintenance Quality Productivity Lean Manufacturing

KEY BENEFITS of 5s

TIME SAVING QUICK RETRIEVAL ACCIDENTS & MISTAKES MINIMIZED INCREASES SPACE CREATES WORKPLACE OWNERSHIP

KEY BENEFITS of 5s
FOUNDATION OF ALL QC TOOLS

CONTINUOUS QUALITY IMPROVEMENT LEAN MANUFACTURING KINDERGARTEN OF QUALITY TOOLS & TECHNIQUES

KEY BENEFITS of 5s
VISUAL MANAGEMENT SYSTEM VISUAL CONTROL TO SEE THE ABNORMALITIES SIMPLE SIGNALS THAT PROVIDE AN UNDERSTANDING OF THE CONDITION( NORMAL/ ABNORMAL) A LOOK AT THE PROCESS REVEALS ITS DIRECTION (RIGHT/WRONG)

KEY BENEFITS OF 5S
GREATER PEOPLE INVOLVEMENT INCREASED SUGGESTIONS BETTER USE OF FLOOR SPACE REDUCTION OF WIP AND INVENTORY BETTER WORKFLOW LESSER MACHINE BREAKDOWNS

KAIZEN

Pillar 3 - Kaizen
"Kai" means change, and "Zen" means good (for the better) Kaizen Target : Achieve and sustain zero losses with respect
to minor stops, measurement and adjustments, defects and unavoidable downtimes. It also aims to achieve 30% manufacturing cost reduction.

Less Initial Cost

Aims at reducing losses in the workplace that affect the efficiencies

PILLAR 3 -KAIZEN
KAIZEN IS SMALL IMPROVEMENTS CARRIED OUT CONTINUOUSLY STUDY LOSSES,ELIMINATE LOSSES OBJECTIVE TO HAVE ZERO LOSSES, - OPER COST REDN,-INCR EQPT EFFECTIVENESS KAIZEN TOOLS INCLUDE PM ANALYSIS AND 5WHY ANALYSIS

KAIZEN
PROCESS OF SYSTEMATIC,SMALL GRADUAL AND CONTINUOUS IMPROVEMENT THAT USES TECHNIQUES SUCH AS TPM,JIT,PDCA SEEKING BETTER METHODS IN ACCORDANCE WITH REQUIREMENT OF ACTUAL SITUATION KEY ELEMENTS OF KAIZEN INCLUDE ADAPTABILITY OF PROCESSES AND PEOPLE AND OPTIMISING EXISTING CAPACITIES PEOPLE BASED APPROACH WHICH CENTRES AROUND PROCESS ORIENTED THINKING AIM IS TO ALIGN COMPANY FOR CONTINUOUS IMPROVEMENT PRACTICES ELIMINATION OF 3M WHICH ARE MUDA-WASTE MURA-NONCONFORMITY TO QLTY,MURI-DISCREPANCY OF METHOD OF DOING THINGS ALIGNING COMPANY FOR CONTINUOUS IMPROVEMENT GENERATES PROCESS ORIENTED THINKING TRIES TO SIMLIFY,COMBINE,ADD,REARRANGE,ELIMINATE ACTIVITIES(SCARE)

KAIZEN
DEVELOPS EMPLOYEES TO OWN THEIR PROCESSES AND GENERATE PROCESS ORIENTED THINKING EFFECTIVELY TRAINS PARTICIPANTS TO IDENTIFY ROOT CAUSE AND PERMANENTLY RECTIFY PROBLEMS

TYPES OF KAIZEN
GROUP ORIENTED INDIVISUAL ORIENTED

GROUP ORIENTED KAIZEN

KAIZEN IN GROUP WORK IS REPRESENTED BY SMALL GROUP ACTIVITIES LIKE QUALITY CIRCLES CALLS FOR PDCA APPROACH NAND DEMANDS THAT PEOPLE IDENTIFY PROBLEM AREAS IDENTIFY AND ANALYSE CAUSES IMPLEMENT COUNTER MEASURES TO RESOLVEPROBLEMS AT THE ROOT CAUSE AND ESTABLISH NEW PROCEDURES

SMALL GROUP ACTIVITIES

SMALL GROUP ACTIVITIES ARE INFORMAL VOLUNTARY SMALL GROUPS WITHIN DEPT TO CARRY OUT SPECIFIC TASKS eg SAFETY, ZERO DEFECT,PRODUCTIVITY ADVANTAGES OF SMALL GROUP ACTIVITIES ARE: -STRENGTHENING OF TEAM WORK - BETTER COORDINATION OF ROLES - BETTER COMMUNICATION BETWEEN PLANNERS AND EXECUTORS -IMPROVED MORALE -DEVELOPMENT OF MULTI SKILLS AND IMPROVEMENT OF CURRENT SKILLS -IMPROVED LABOUR MGT RELATIONS -

HIERARCHY OF KAIZEN INVOLVEMENT

TOP MANAGEMENT MIDDLE MGT AND STAFF SUPERVISOR WORKERS

TOP MANAGEMENT
INTRODUCE KAIZEN AS CORPORATE STRATEGY PROVIDE SUPPORT AND DIRECTION FOR KAIZEN BY ALLOCATING RESOURCES ESTABLISH POLICY FOR KAIZEN AND CROSS FUNCTIONAL GOALS REALISE KAIZEN GOALS THROUGH POLICY DEPLOYMENT AND AUDITS BUILD SYSTEMS,PROCEDURES AND STRUCTURES CONDUCICE FOR KAIZEN

MIDDLE MANAGEMENT
IMPLEMENT KAIZEN GOALS AS DIRECTED BY TOP MGT THROUGH POLICY DEPLOYMENT USE KAIZEN IN FUNCTIONAL CAPABILITIES ESTABLISH MAINTAIN UPGRADE STANDARDS MAKE EMPLOYEES KAIZEN CONSCIOUS THROUGH TRAINING PROGRAMS HELP EMPLOYEES DEVELOP SKILLS AND TOOLS FOR PROBLEM SOLVING

SUPERVISORS
USE KAIZEN IN FUNCTIONAL AREAS FORMULATE PLANS FOR KAIZENS AND PROVIDE GUIDANCE TO WORKERS IMPROVE COMMUNICATION WITH WORKERS AND SUSTAIN MORALE SUPPORT SMALL GROUP ACTIVITIES AND INDIVISUAL SUGGESTION SYSTEM INTRODUCE DISCIPLINE IN THE WORKSHOP AND PROVIDE KAIZEN SUGGESTIONS

WORKERS
ENGAGE IN KAIZEN THROUGH THE SUGGESTION SYSTEM AND SMALL GROUP ACTIVITIES PRACTICE DISCIPLINE ENGAGE IN CONTINUOUS SELF DEVELOPMENT TO BECOME BETTER PROBLEM SOLVERS ENHANCE SKILLS AND JOB PERFORMANCE EXPERTISE WITH CROSS EDUCATION

KAIZEN STRATEGY
MAINTAIN AND IMPROVE WORKING STANDARDS THROUGH GRADUAL IMPROVEMENT DELEGATE RESPONSIBILITY OF MAINTAINING STANDARDS TO WORKERS WITH MGT IMPROVING STDS PRODUCE A SYSTEMS APPROACH THAT CAN BE APPLIED TO REALIZING THIS GOAL

PREREQUISITES FOR KAIZEN

HIGHLY RESPONSIVE WORKFORCE DEEP UNDERSTANDING OF BUSINESS PROCESS WORKFLOW RULES, OBJECTIVES, DEPENDENCIES PROJECTION OF KAIZEN AS CORPORATE PHILOSOPHY AND VISIBLE IN STRATEGIES ALL EMPLOYEES SHOULD UNDERSTAND AND BE INVOLVED IN THE DRIVE SENSE OF PROCESS OWNERSHIP AND COMMITMENT

Small Group Activities

For Energy Conservation At SHREE CEMENT Ltd.

Fundamentals of Small Group Activities

* * * Activities carried out voluntarily and continuously by all members of small groups. The group sets its own goals (Requires the support & guidance of managers). Guidance of superiors is taken to set goals.

Aim To improve the operation of the work place in line with companys policy.

Basic Idea
I)

To develop work culture that is satisfying and fulfilling by raising workers capabilities and making effective utilisation of their abilities.

II)

To create a lively and bright work place by respectin the human qualities of the workers. To contribute to the improvement and development of the company.

III)

Promotion of Small Group Activities

Form the Circle

Analysis

Decide the theme

Implementation

Incorporate management suggestion

Target & Plan Revise Plan

Yes

No

Management Approval

Evaluation of Alternatives

Confirm effect

Project proposal

Shree cement ltd. has initiated SMALL GROUP ACTIVITY under Green Aid Plan Project (Bilateral Cooperation between Govt.. Of Japan & Govt.. Of India) in association with Bureau of Energy Efficiency, New Delhi.

Benefits
Best utilisation of lower line capabilities. Ensure approach of lower line suggestions upto higher management level. Promotes leadership qualities & personal development. Creates problem solving capability. Inspires more effective team work. Builds an attitude of Problem Prevention. Promotes cost reduction through energy conservation & productivity enhancement. Develops harmonious relationship. Reduces downtime of machines and equipment. Increases employee motivation.

SHREE CEMENT LTD.

ENERGY POLICY
y To reduce to the maximum extent possible the consumption of energy without impairing productivity which should help in: Increase in the profitability of the company Conservation of Energy Reduction in Environmental pollution at energy producing areas y Since Energy is Blood of Industry, It is the responsibility of all of us to utilizes energy effectively and efficiently ENERGY SAVED IS ENERGY PRODUCED

Activities Performed at Shree Cement

Formation of 7 groups consisting of 5 to 6 members in each group include operating workmen and supervisors in each section. Leaders for each group have been selected. Themes for energy conservation have been identified. Meeting with Technical Head is organised monthly to monitor the progress of Small Group Activity.

Themes Identified By Various Groups

* * * * * * * *

Idle running of belts and crushers should be avoided. Use of FRP type impeller. Appropriate size of motors. Use of Electro Static Filters in compressors. Use of fluid coupling or SMP coupling for power saving in all type of belt drive motors. Use of star- delta starter in hammer crusher of clinker coole Modification of raw coal hopper feeding arrangement. Removal of Insulation from pre-heater outlet to GCT inlet duct.

SAVINGS
Savings in water consumption : 31.77 - 29.11 = 2.66 KL/Hr : 63.87 KL/Day : 21076 KL/Year

Savings in power consumption

: 1480 - 1460 = 20 KW : 480 units/Day : 1.58 Lacs units/Year

COST BENEFIT ANALYSIS

Total Investment Made : Rs 40,000/-

Savings Due to Water Conservation : Rs 543 per day : Rs 1.79 Lacs per year Savings Due to Electrical Energy Conservation : Rs 825 per day : Rs 2.72 Lacs per year Total Savings Pay Back Period : Rs 4.51 Lacs per year : ~ 1 month

KAIZEN IMPL IN ASHOK LEYLAND

MATRL AND INFO FLOW REVIEWED TIME STUDY OF PROCESS ELEMENTS CYCLE TIME OF ACTIVITIES MEASURED PROCESS PROBLEMS IDENTIFIED ANALYSED GOALS SET FOR CHANGE KAIZEN IDEAS DEVELOPED PLANS FOR IMPL DONE AND IMPL IMPACT OF KAIZEN MEASURED REPORT ON ACHIEVEMENT

KAIZEN TRAINING AT ASHOK LEYLAND

CYCLE TIME OF M/C MEASURED PROCESS PROBLEMS IDENTIFIED AND ANALYSED KAIZEN GOALS SET FOR CHANGE KAIZEN IDEAS DEVELOPED AND IMPLEMENTED IMPACT OF KAIZENS ON PROCESSES VERIFIED REPORT ON ACHIEVEMENT PREPARED

KAIZEN CASE STUDY AT BHARAT FORGE

BHARAT FORGE HAD FREQUENT FAILURES (1 IN 7 DYS) ROOT CAUSE DIAGNOSED TO WRONG LOCATION OF ELECTRICAL LOCN COUNTER MEASURE WAS TO REROUTE ELECTRICAL CONNECTION FROM FIXTURES TO DUCTS AND PREVENT COOLANT ENTRY INTO CABLES RESULT WAS MTBF INCREASED FROM 7DAYS TO 210 DAYS

ADVANTAGES OF KAIZEN
ENSURES INCREMENTAL BUT CONTINUOUS IMPROVEMENT IN QLTY,PRODUCTIVITY,SAFETY,CLEANLINESS AND CAPACITY UTILIZATION REMOVES DEFECTS USING ROOT CAUSE ANALYSIS REDUCES WASTE REWORK REJECTION AND LOSS OF ENERGY OFFERS FLEXIBILITY AND REDUCES PROCESS CYCLE TIMES LOWERS PROCESS COSTS AND LESSENS WASTE

SAFETY

Pillar VIII : Safety and Environment Target = Maintenance of peace of mind

Safety Management

Environment Management

Zero Accident Zero Injury

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Zero Pollution Zero Waste

REMEMBER.. No job is so important and No service is so urgent that we cannot take time to perform our work safely.

227

SAFETY
TARGET IS ZERO ACCIDENTS FOCUS IS ON CREATING SAFE WORKPLACE IDENTIFY ALL HAZARDS IN AN OPERATION AND THEIR PRECAUTIONARY MEASURES INTRODUCTION OF WORK PERMITS AND ISOLATION CERTIFICATES WHICH WORK AS SAFETY PLANS WORKING IN CONJUNCTION WITH MAIN JOB PLANS MAINT WORKPLACE CERTIFIED AS SAFE TO WORK AFTER ISOLATION, PRIOR TO WORK COMMENCEMENT AND EQPT CERTIFIED SAFE TO OPERATE AFTER DEISOLATION

SAFETY
PERMITS AND CERTIFICATES -COLD PERMIT -HOT PERMIT -PERSONAL PROTECTION PERMIT -DRIVING LICENCE -CONFINED SPACE PERMIT -VEHICLE ENTRY PERMIT -MECHANICAL VALVE ISOLATION -ELECTRICAL ISOLATION

Introduction to safety audits

This orientation includes:

SAFETY

PROGRAM, INSPECTIONS/AUDITS, SAFETY MEETINGS, HAZARD AWARENESS, HAZARD ABATEMENT, ACCIDENT INVESTIGATION, ACCIDENT REPORTING PERSONAL PROTECTIVE EQUIPMENT

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What is it?
It s a bit like a financial audit Similarities
It provides an external overview It aims to confirm due propriety of internal procedures

Differences
It is Management initiated not a regulatory imposition A principal aim is improvement, training and development The downside is human suffering

Why do we have them?

 A duty of care to employees and neighbours  To reduce risks to the business of untoward events  Management being seen to be serious about safety  For consistent interpretation of management policy  To improve safety by training and development  Internal confluence of experience and ideas

Where in the overall safety scheme of things? Tools for Ensuring Safety
MAJOR HAZARDS DESIGN Hazard Analysis Risk Analysis HAZOP Protection Systems Design Team OPERATIONAL INTEGRITY SYSTEMS Procedures Reporting Statistics Support WORKPLACE SAFETY ACTIVITIES Housekeeping Vigilance Notification Compliance Inspection Tour

Health and Safety Audit

What is the Auditor looking for?

Throughout the process, the Audit Team should be asking itself:
Are Systems and Procedures appropriate and adequate? Are Systems and Procedures correctly followed? Are the correct Documentary Records available? Are the H&S Facilities and Equipment appropriate and adequate? Is there a general awareness of Safety as an issue? Is there a programme for safety training? What about evacuation procedures and mock drills for testing preparedness Could the organisation respond to a serious emergency?

Safety Statistics
To be meaningful, statistics must be consistent and accurate

Typical statistical analysis would include

Injury Frequency Rates Lost time, Medical treatment Injury Severity Index extent of lost time Injury analysis - by type, location, worker group
Central recording and analysis ensures consistency Care with definitions such as Lost-time injury how many days? Figures are only useful if lessons are learned and improvement targets imposed Rigorous recording is essential

Procedures availability and adherence Defined procedures must be set down

Standard Operating Procedures
Default procedures for all main operations Are they Available, Accessible and Clear Use them or change them dont ignore them Obtain user views

Maintenance Safety Procedures

Permit to Work System hot work, confined spaces, heights Isolation and Lock-off arrangements a critical area Authority to sign training essential

Emergency Procedures
Investigate preparedness for emergencies

Response Plan for a major emergency

Does it exist and is it well known and understood Liaison with local services e.g. Fire Service?

Internal Emergency Actions

Fire fighters trained? equipped? First aiders availability and training Evacuation drill clearly posted? practiced?

Notifications to management, authorities, local services Nominated person? Standard routine?

Especially Vulnerable Situations

Growth by Acquisition High Staff Turnover Regular use of Temporary Staff Extensive use of Contractors Language Differences

SAFETY..is part of everyday living. It is an important

consideration for everyone in everything he/she does, in the home, at work or play, on streets and highways wherever he/she goes.

Safe operating practices and procedures are vital in the drilling business because the work is hazardous, involving massive machinery, heavy tools and great physical strength.

When accidents do occur, the work can be a serious peril to life and limb. Drilling personnel must know how to work safely on a rig in order to protect themselves, costly rig equipment, and the expensive hole being drilled.

239

Everyone loses from an accident. Injuries result in pain and suffering and may leave a person disabled or handicapped for life. Even minor injuries may cause loss of time from work and lost pay.

Insurance benefits are helpful, but compensation payments cannot restore a life, hand, eye or leg. Damaged machinery and equipment can usually be repaired but almost always at considerable cost, particularly if down time is taken into account.

An expensive well may be lost because of the oversight of the incompetence of one person. Blowouts and fires cause losses of life and equipment and waste precious oil and gas from underground reservoirs.
240

More than 90 % of all accidents are avoidable, being caused by human error rather than by mechanical failure.

It is extremely important that every person to develop a sense of safety in his area of operations.

That person must use this sense in combination with the kind of good judgment it takes to do anything in a safe manner.

241

HAZARD AWARENESS AND RECOGNITION

242

Hazards are generally grouped into two (2) broad categories:

1. Safety and Injury Hazards

2. Health and Illnesses Hazards.

Always remember to include hazards that involve property and Environmental damage.

243

What Causes Injuries?

Acts of God 2% Unsafe Conditions 20%

20%

Unsafe Acts 78%

78 %

UNSAFE CONDITIONS ACTS OF GOD

UNSAFE ACTS
244

Recognition of Hazards
Identify unsafe acts and conditions Determine the corrective actions Implement corrective actions

245

Hazard Identification:

(examples)

Danger of striking against, being struck by, or making contact with an object? Are rotating equipment or other projections exposed Nip points, such as a belt, sheave, chain, gear? Reciprocating movement to be caught on or between ? Hand/arm contact with moving parts at the point of operation?

246

Machines/equipment receive regular maintenance? Machines operations sufficient for safe work? Room for maintenance operations? Materials being handled adequately for work? Are tools, jigs, work fixtures stored not to interfere with work? Work area well illuminated. Ventilation adequate. PPE used ? Housekeeping satisfactory? Energy sources controlled for maintenance?
247

Can you find the hazard(s)?

4 2 3 1

248

Is there a Hazard?

249

How Hazards are Controlled

At its source. Along its path. (erect a barricade between the hazard and the worker.) At the worker. (remove the worker from the exposure, such as automated/remote controls, worker
rotation, providing PPE when all options have been exhausted.)

Monitoring activities (locate new hazards and assess the effectiveness of existing controls.)

250

Lockout/tagout procedures are for your safety. They are designed to prevent accidents & injuries caused by the accidental release of energy. These procedures prevent workers from being accidentally exposed to injuries and even life threatening situations with energized equipment.

251

Scope and Application

General Industry employees covering the servicing and maintenance of machines and equipment in which the unexpected start-up or the release of stored energy startcould cause injury to employees. (If employees employees.
are performing service or maintenance tasks that do not expose them to the unexpected release of hazardous energy, the standard does not apply.) apply.

252

What is Lockout?
The process of preventing the flow of energy from a power source to a piece of equipment, and keeping it from operating. operating. Is accomplished by installing the lockout device at the power source so that equipment powered by the source cannot be operated. operated.
253

What is Tagout?
The placement of a tag on the power source. source. It acts as a warning, not to restore energy It is not a physical restraint. Tags must clearly state: DO NOT OPERATE or the like, and must be applied by hand.
254

Authorized Employees
Authorized employees physically lock or tag out equipment for servicing or maintenance. maintenance. Note that these individuals are not necessarily the people who normally operate the equipment. equipment.

255

Affected Employees
Are those workers whose job requires them to operate equipment subject to lockout/tagout, or those employees who work in areas where lockout/tagout is used. Your employer will used. inform you if you are an affected employee. employee. An affected employee becomes an authorized employee whenever he or she performs servicing or maintenance functions on machines or equipment that must be locked or tagged. tagged.
256

Other Concerns
Outside Contractors - They must be informed of your lockout/tagout procedure in full detail so that their employees understand the meaning of locks or tags that they may come across during the course of their work. In work. addition, if the contractor will be using locks or tags, they should inform your employer so that everyone affected may be notified. notified.

257

Other Concerns (contd)

Shift and Personnel Changes - In general, if a piece of equipment is locked out at shift change, the person on the next shift must apply his/her lock before the employee who is leaving can remove his/her lock. lock.

258

Other Concerns (contd)

Group Lockout/Tagout - Procedures used must be as effective as that provided by utilizing a personal lockout/tagout device. Your employer device. can assign one person primary responsibility for the group servicing or maintenance operation. operation. This person will verify shutdown and isolation, application of member lockout/tagout devices, completion of group member job assignments prior to removal of lockout/tagout devices, etc... etc...
259

Hazard Communication
Have you prepared a written list of all the hazardous material present in the workplace eg AMRI ? Are you prepared to update your hazardous material list ? Do you have up-to-date MSDS for those materials on your hazardous material list and list of locations to store them

260

Have you developed a system to ensure that all incoming hazardous materials are received with proper labels and MSDS ? Do you have procedures in your workplace to ensure proper labeling or warning signs for building storage or secondary usage containers that hold hazardous materials?

Do you have a complete list of the materials hazards and precautions that you can give to outside contractors ? Have your employees been informed of the hazards associated with performing non-routine tasks ?
261

On multi-employer work-sites, are all employees with potential exposure to materials provided with information on labeling systems and precautionary measures? Do you have a written procedure on how you will inform your employees of the material hazards associated with unlabeled pipes ? Is your hazard communication program in writing and available to your employees and their designated representatives?
262

OSHA requires certain PPE based on the hazards employees are exposed to. OSHA also requires training for employees in the proper selection, use, and maintenance of PPE.

263

PPE
Personal protective equipment should not be used as a substitute for engineering, work practice, and/or administrative controls. Personal protective equipment should be used in conjunction with these controls to provide for employee safety and health in the workplace. Personal protective equipment includes all clothing and other work accessories designed to create a barrier against workplace hazards.
264

Selection of the proper personal protective equipment for a job is important. Employers and employees must understand the equipment's purpose and its limitations. The equipment must not be altered or removed even though an employee may find it uncomfortable.

(Sometimes equipment may be uncomfortable simply because it does not fit properly.)
265

The basic element of any management program for personal protective equipment should be an in-depth evaluation of the equipment needed to protect against the hazards at the workplace. Management dedicated to the safety and health of employees should use that evaluation to set a standard operating procedure for personnel, then train employees on the protective limitations of personal protective equipment, and on its proper use and maintenance.
266

Using personal protective equipment requires hazard awareness and training on the part of the user. Employees must be aware that the equipment does not eliminate the hazard. If the equipment hazard. fails, exposure will occur. To reduce the possibility of failure, equipment must be properly fitted and maintained in a clean and serviceable condition.

267

EMPLOYEE RIGHTS
* RIGHT to a safe and healthy workplace * RIGHT to have questions regarding safety and health addressed * RIGHT to receive and have access to all information regarding workplace hazards * RIGHT to refuse to perform an unsafe act

268

EMPLOYEE RESPONSIBILITIES
RESPONSIBILITY to comply with all policies and procedures RESPONSIBILITY to report all unsafe acts and conditions RESPONSIBILITY to be a team member - to assist others in compliance RESPONSIBILITY to offer suggestions that may have a positive impact on safety

269

Inspection Reasoning ?????

Well-planned safety inspections help in detecting hazards before an accident occurs. Before an inspection, analyze past accidents to determine specific causes and high hazard areas or operations. Both unsafe conditions and unsafe acts are contributing Factors in most industrial accidents. An unsafe condition, in addition to being a direct cause of accident itself, often requires, or suggests, an unsafe act.
270

Why Inspect ?????

Removing hazards increases operating efficiency, because safety and efficiency go hand in hand. A documented self inspection of all facilities/equipment allows you to detect or identify unsafe conditions or hazards, initiate corrective actions as soon as possible and control hazards on an ongoing basis. All inspections should be conducted on an ongoing basis, without interruption
271

A MUST
Employees must be notified of hazards that pose an immediate threat of physical harm or property damage

Informed of measures or steps that will be taken to eliminate, correct or control the hazards

272

Reporting of Accidents/Incidents
As a general rule, all accidents, no matter how minor, should be reported immediately and investigated as soon as possible. Employees must be made aware of their responsibility, to report the incident as soon as possible after it occurs. They must also be aware that when/if they report an incident, the incident will be discussed with them, as to When-Where-Who-WhatWhy-How. They will be expected to cooperate with the investigation, as the goal is to develop the root cause of the incident and abate it so it does not occur again. REMEMBER: Failure to comply with a company policy, such as the requirement to report ANY/All accidents/incidents equals violating company policy. That could result in disciplinary actions up to and including termination. Since companies are different, check your company policies to be sure! In numerous businesses, when there is an incident, there is also a drug test as part of policy. Employees should know this and expect this as a routine occurrence.

273

ACCIDENTS dont just happen THEY ARE CAUSED!!!

274

ACCIDENT SEQUENCE
Worker (Present at the work site.) Faults (Unsafe Act or condition exists) Cause (Unsafe Act or condition occurs) Accident (Occurs) Result (Frequency-Severity)

275

ACCIDENTS ARE CAUSED BY: Unsafe Acts Unsafe Conditions

276

MOST ACCIDENTS WERE CAUSED BY BOTH:

UNSAFE ACTS, and UNSAFE CONDITIONS

277

UNSAFE CONDITION (Hazard):

Is a physical condition or circumstance that permits, or is likely to cause an accident.

278

UNSAFE ACT (Work Practice):

Is any violation of (or departure from) an accepted normal, or correct, procedure or practice.

279

ACCIDENT INVESTIGATION
Accident: An unplanned, undesired event, not necessarily resulting in injury,but damaging to property and/.or interrupting the activity in process.

Incident: An undesired event that may cause personal harm or other damage. (OSHA specifies incidents of a certain severity be recorded.)
With proper hazard identification and evaluation, management commitment and support, preventive and corrective procedures, monitoring, evaluation and training, unwanted events can be prevented.
280

ACCIDENT INVESTIGATION
The ultimate purpose of investigations is to prevent future incidents. Investigations must produce factual information leading to corrective actions that prevent or reduce the number of incidents. Investigations must be FACT FINDING not FAULT FINDING

281

The investigation concentrates on the fact surrounding the incident. After the incident is fully investigated, responsibility will be fixed where personal fault has caused the injury. No person should be excused from the consequences of their actions. Disciplinary actions must not be from the investigating individual or committee, but from management, for violating company policies/procedures.
282

ACCIDENT INVESTIGATION

ACCIDENT INVESTIGATION The purpose of an incident investigation is twofold.

1. Identify facts about each injury and the incident that produced it and to record those facts.

2. Determine a course of action to eliminate a recurrence. The investigation includes the entire sequence of events leading to the injury, as far back in time as the investigator feels is relevant.
283

ACCIDENT As aINVESTIGATION rule of thumb, use the 5-W principle! 5Simply ask Why five (5) times.

1. Why did you slip and Fall in the hall by the water cooler ? <answer> Because the floor was wet. 2. Why was the floor wet? <answer> Because there was water on it. 3. Why was their water on the floor? <answer>I dont know. It was coming out from underneath the water cooler. 4. Why was water coming out from under the water cooler? <answer> I dont know. Lets look. There is a hole in the drain pipe. 5. Why is there a hole in the drain pipe? <answer>It appears as if it rusted out. Was this an UNSAFE ACTIVITY or UNSAFE CONDITION? 284

ACCIDENT INVESTIGATION
It was an Unsafe Condition, caused by an Unsafe Activity. Activity The rusted pipe was caused by lack of preventative maintenance, which was an unsafe activity. If there is blame where does it lie? Was there a preventative maintenance program?, Who was in charge of it. Why was it not checked? Should this be subject to disciplinary actions?

285

ACCIDENTS
Injuries Illnesses Property Damage Near-Misses

286

ACCIDENTS
An undesired event that could involve: Workers Materials Tools Equipment Environment

287

Five Steps to accident Investigation

* Manage the Incident Site * Collect Information * Analyze the Facts * Recommend Corrective Action * Corrective Action Follow-up

288

MANAGE THE ACCIDENT SITE

1. Assist the Injured Employee(s) 2. Eliminate or Control the Risk of Further Injury 3. Preserve the Accident Scene a. shut down equipment b. barricade the site

289

COLLECT INFORMATION
1. Who, What, When, Where, Why, and How 2. Physical Evidence 3. Witness Statements 4. Documentation

290

ANALYZE THE FACTS

Purpose: Find the Underlying Causes Examples: 1. Equipment 2. Methods 3. Personnel 4. Environment

291

Recommend Corrective Action Follow-up

1. Identify corrective actions 2. Assign responsibility 3. Establish deadline for actions and follow-up 4. Obtain management approval 5. Communicate results

292

Safety Facts
Over 90% of accidents are avoidable Workplaces dont cause accidents; people do Safety is everyones responsibility

293

NON VALUE ADDED ACTIVITIES

BUSINESS PROCESSES
EVERYTHING WE DO IS A PROCESS AND CONSISTS OF INPUTS PROCESSING AND OUTPUT PROCESS TAKES INPUT FROM SUPPLIERS,ADDS VALUE AND DELIVERS OUTPUT TO CUSTOMER CUSTOMER COULD BE INTERNAL OR EXTERNAL AND SUPPLIER COULD BE THE SAME AS CUSTOMER PROCESSES ARE SET OF LOGICALLY RELATED ACTIVITIES LINKED BY RULES WHICH COMBINE TO DELIVER VALUE TO CUSTOMERS ACROSS FUNCTIONAL LINES . THEY USE PREDETERMINED LOGIC RULES TO PROCESS INPUTS PROCESSES USE INPUTS FROM SUPPLIERS SUCH AS INFORMATION SKILLS TRAINING PEOPLE,EQUIPMENT,MATERIAL,PROCEDURES METHODS SPECIFICATIONS SERVICES KNOWLEDGE AND VOICE OF CUSTOMER PROCESS PROCESSES INPUTS AS PER THE BUSINESS RULES AND ACTIVITY DEPENDENCIES PROCESSES OUTPUT PRODUCTS SERVICES INFORMATION TO CUSTOMERS OUTPUTS RESULT IN OUTCOMES WHICH ARE MEASURES OUTCOMES ARE COMPARED WITH TARGETS AND RESULT IN IMPACTS

PROCESS MECHANICS
INPUTS PROCESS OUTPUTS

MATERIALS PROCEDURES METHODS DATA PEOPLE WITH SKILLS KNOWLEDGE MANAGEMENT TRAINING EQUIPMENT FINANCE

INPUTS

BUSINESS RULES CONTROLS ACTIVITIES DEPENDENCIES CONSTRAINTS CAPABILITY

OUTPUTS

PRODUCTS SERVICES INFO WASTE

CUSTOMER

VOICE OF PROCESS

VOICE OF THE CUSTOMER

ACTIVITIES IN AN ORGANIZATION
EVERY THING WE DO IN A COMPANY IS A PART OF A LARGER PROCESS WHICH IS EXECUTED TO ACHIEVE BUSINESS RESULTS PROCESS COMPRISES OF SUB PROCESSES SUB PROCESS IS DIDIDED INTO ACTIVITIES WHICH CAN BE // OR IN SEQUENCE ACTIVITIES CAN BE DIVIDED INTO INDIVISIBLE TASKS

PROCESS DECOMPOSITION INTO ACTIVITIES

ORDER TO CASH
ORDER PROCESSING

NET MRP MFG WO

PLAN TO PRODUCE

DELIVER

PROCURE TO PAY INDENT TO PR OPTIONAL PO TO TENDER TENDER TO PO OR PR TO PO DELY TO ACCEPT ACCEPT TO INVOICE INVOICE TO PAY

RECEIVE CASH

ACTIVITIES AWARD TO SUPPLIER

DESPATCH PO

APPROVE PO

MULTI LEVEL APPROVAL

WRITE PROCURE DETAILS WITH QTY, RATE, DELVY SCHEDULE,ETC

VALUE AND NON VALUE ADD ACTIVITIES

MANY ACTIVITIES PERFORMED WHILE WORKING AND ARE THE BUSINESS OUTCOMES OF PROCESSES VALUE ADD ACTIVITIES ARE THOSE WHICH CUSTOMER IS WILLING TO PAY FOR NON VALUE ADD ACTIVITIES ARE THOSE ACTIVITIES WHICH THE CUSTOMER WILL NOT PAY FOR NON VALUE ADD ACTIVITIES MAY BE ESSENTIAL eg SAFETY OR NON ESSENTIAL PROCESS IMPROVEMENT NEEDS TO BE DONE ON ESSENTIAL ACTIVITIES TO REDUCE COSTS,TIME AND RESOURCES NON VALUE ADD ACTIVITIES NEED TO BE EITHER ELIMINATED OR MINIMISED AS THESE ACTIVITIES ONLY ADD TO THE COSTS

VALUE ADDED ASSESSMENT

ACTIVITY

REQD TO PRODUC E O/P

CONTRI BUTES TO CUST REQMT

N
REQD TO PRODUC E O/P

Y
REAL VALUE ADD

Y
ESSENTIAL NON VALUE ADD NON VALUE ADD

ACTIVITY MAPPING AS-IS INDENT TO PURCHASE

ACTIVITY MAPPING AS-IS INDENT TO PURCHASE

ACTIVITY MAPPING AS-IS INDENT TO PURCHASE

ACTIVITY MAPPING AS-IS INDENT TO PURCHASE

ACTIVITY MAPPING AS-IS INDENT TO PURCHASE

ACTIVITY MAPPING AS-IS INDENT TO PURCHASE

ACTIVITY MAPPING TO BE TO BE INDENT TO PURCHASE

ACTIVITY MAPPING TO BE INDENT TO PURCHASE

ACTIVITY MAPPING TO BE INDENT TO PURCHASE

ACTIVITY MAPPING TO BE INDENT TO PURCHASE

ACTIVITY MAPPING TO BE INDENT TO PURCHASE

COST OF QUALITY
COST OF QUALITY IN A COMPANY IS THE SUM OF THE COST OF CONFORMANCE PLUS COST OF NON CONFORMANCE COST OF CONFORMANCE IS THE TOTAL COST A COMPANY INCURS TO ENSURE THAT THE PRODUCT OR SERVICE IS AS PER THE SPECIFICATIONS OF THE CUSTOMER. IT INCLUDES COST OF INSPECTION PLUS COST OF QUALITY CONTROL PLUS COST OF QUALITY ASSURANCE. -COST OF CONFORMANCE = INSPECTION + QC + ASSURANCE COST OF NON CONFORMANCE IS THE COST OF POOR QUALITY. IT IS THE DEFECTS WHICH HAVE TO BE EITHER REWORKED OR SCRAPPED OR PRODUCTS WHICH ARE NOT DEFECTS BUT HAVE MINOR NON CONFORMITIES WHICH CURRENTLY ARE NOT DEFECTS BUT COULD TURN INTO DEFECTS . THESE ARE ALSO CALLED COST OF FAILURES.

PROCESS NON CONFORMITY

COST OF NON CONFORMITY IS THE TOTAL REVENUE LOSS INCURRED BECAUSE OF THE INABILITY TO PRODUCE THE EXPECTED OUTPUT IN THE EXPECTED TIME IN THE EXPECTED COST. THIS IS BECAUSE OF VARIANCES IN UPTIME OF PROCESS ,PROCESS EFFICIENCIES AND PROCESS QUALITITES COST OF NON CONFORMITY CAN BE UPWARDS OF 5% OF ANNUAL TURNOVER OF COMPANY COST OF NON CONFORMITY = PROCESS DOWNTIME COST + PROCESS INEFFICIENCY VARIANCE COST + PROCESS POOR QUALITY COST EXAMPLE OPPORTUNITY LOSS BECAUSE OF DOWNTIME AND INEFFICIENCY IS 8.4 CR; LOSS DUE TO SECONDS QLTY IS 1.896 CR

CASE STUDY OF COST OF NON CONFORMITY OF POWER PLANT ACTIVITY IN JUNE 2011
A 210 MW POWER PLANT EXPERIENCED AN UNPLANNED DOWNTIME FOR 10 HOURS IN JUNE. ADDITIONALLY THE PLANT LOAD FACTOR WAS ONLY 70% AGAINST PLANNED PLF OF 90% FOR THE MONTH. IF THE REVENUE OF PUTTING POWER ON THE GRID WAS 5 RS PER KWH , CALCULATE THE COST OF OPPORTUNITY LOST FOR THE

SOLUTION FOR REVENUE LOSS FOR MONTH

COST OF LOSS OF 10 HRS DOWNTIME IS 10 HRS * 210 MW * 1000 * 5RS/KWH = 1,05,00000 RS COST OF LOST EFFICIENCY = 1. ACTUAL HRS = 720 10 = 710 HRS 2. PLANNED PLF = 90% 3 ACTUAL PLF = 70% 4 PLF UNDER PERFORMANCE = 20% LOSS OF EFFICIENCY = 20% = (720 10 = 710HRS) LOSS OF REVENUE ON ACCOUNT EFFICIENCY = 710HRS * 210 MW * 1000 * 0.20 * 5 RS/KWH = 14,91,00000 RS TOTAL COST OF NON CONFORMITY = 1.05 CR + 14.91 CR = 15.96CR MAXIMUM OPPORTUNITY = 720 * 210 * 1000 * 0.90 * 5 = 75.60 CR

COST OF NON CONFORMITY IN TEXTILE MILL

OWING TO BREAKDOWN AND PROCESS INEFFICIENCY UNIT PRODUCED 0.07(0.79 V/S 0.86) MILLION MTRS LESS FOR THE MTH WHICH AMOUNTED TO 0.84 MILLION MTRS LESS /YEAR -AVERAGE REALISATION PER MTR IS RS 100 -LOSS PER YEAR ON ACCOUNT OF OPPORTUNTIY LOST IS 0.84 MILLION MTRS * 100 RS/MTR = 8.4 CR RS -LOSS DUE TO QLTY (0.79 * 12 * (95-90=5) 0.05 * 40(10060)) = 1.896 CR TOTAL LOSS = 8.4 + 1.896 = 10.296 CR LOSS AS % SALES =10.296/135 = 7.5% SALES
BUSINESS PROCESS WASTE MANAGEMENT 316

VALUE ENGINEERING

DEFINITION OF VALUE
VALUE IS A WORD USED WITHOUT UNDERSTANDING THE MEANING DIFFERENT DEPTS OF SAME COMPANY HAVE VARIED MEANING DESIGNER RELATES VALUE WITH RELIABILITY MFG RELATES WITH COST OF MFG PURCHASE RELATES WITH COST OF RM SALES RELATES TO THE PRICE CUSTOMER IS WILLING TO PAY

DEFINITION OF VALUE
VALUE IS THE RELATIONSHIP BETWEEN COST AND QLTY VALUE = QUALITY/COST VALUE IS PLACED FOR VARIOUS ATTRIBUTES MORE POPULARLY KNOWN AS FUNCTIONS OF A PRODUCT TWO TYPES OF FUNCTIONS -PRIMARY SECONDARY PRIMARY FUNCTIONS ARE THOSE ATTRIBUTES FOR WHICH A PRODUCT IS PURCHASED AND MEANT TO BE USED eg THE PRIMARY FUNCTION OF A CAR IS TO SAFELY TRANSPORT PEOPLE BETWEEN TWO POINTS WITH FUEL ECONOMY SECONDARY FUNCTIONS ARE THOSE ATTRIBUTES WHICH ARE NOT PRIMARY FUNCTIONS BUT WHICH PEOPLE WISH TO SEE AS ATTRIBUTES OR FUNCTIONSS IN A PRODUCT eg IN A CAR WE ALSO WISH TO HAVE A/C AND OTHER ACCESSORIES

DEFINITION OF VALUE ANALYSIS/ENGINEERING

VA/VE DEFINED AS TECHNIQUE WHICH EXAMINES ALL FACETS OF FUNCTION AND COST OF A PRODUCT IN ORDER TO DETERMINE WHETHER CERTAIN PRODUCT COSTS CAN BE REDUCED OR ELIMINATED WHILE RETAINING ALL FEATURES AND QLTY SOCIETY OF AMERICAN VALUE ENGRS DEFINES VALUE ANALYSIS AS THE SYSTEMATIC APPLICATION OF RECOGNISED TECHNIQUES WHICH IDENTIFY FUNCTION OF PRODUCT/SERVICE,ESTABLISH A MONETARY VALUE FOR THE FUNCTION AND PROVIDE FUNCTION RELIABILITY AT LOWEST COST VALUE ANALYSIS IS A FUNCTIONALLY IORIENTED METHOD FOR IMPROVING PRODUCT VALUE BY RELATING ELEMENTS OF PRODUCT WORTH TO ELEMENTS OF COST OBJECTIVE OF VA IS TO IMPROVE VALUE BY REDUCING COSTS WITHOUT SACRIFING QLTY AND RELIABILITY VE IS A COST PREVENTIVEE TECHNIQUE WHICH ELIMINATES UNREQD COSTS FROM BEING BUILT INTO PRODUCT

VALUE ENGG/ANALYSIS
ENGINEERING IS A PROCESS OF ASSESSMENT OF A PRODUCT DURING DESIGN PHASE ANALYSIS IS ASSESSMENT OF A PRODUCT DURING USAGE OBJECTIVE IS TO ELIMINATE UNREQD FEATURES AND FUNCTIONS IN PRODUCT DESIGN MOST ACTIVITIES PERFORMED IN ANALYSIS PHASE VA TEAM ASSIGNS A VALUE TO EACH FUNCTION AND FINDS COSTS TO DELIVER FUNCTION AND RATIO OF VALUE TO COST IS CALCULATED RATIO IMPROVED BY REDUCING COST OF ITEM OR INCREASING WORTH

VALUE ENGG/ANALYSIS
VALUE ANALYSIS IS A MGT TECHNIQUE FOR REDUCING MFG COSTS AND ///LY IMPROVING QLTY AND RELIABILITY OF PRODUCT VALUE ENGG IS USED TO COVER THE INITIAL DESIGN STAGE VALUE MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE AT DIFFERENT TIME VALUE OF AN ITEM DETERMINED ON THE BASIS OF VARIOUS ASPECTS:

FOUR WAYS TO INCREASING VALUE OF FUNCTION

DECREASE COST AND MAINTAIN PERFORMANCE LEVEL eg NANO INCREASE PERFORMANCE AT SAME COST eg TOOTHPASTE/AERATED DRINKS DECREASE COST AND ENHANCE PERFORMANCE eg PC HARDWARE INCREASE BOTH COST AND PERFORMANCE BUT PERFORMANCE INCREASE > COST INCREASE eg BUFFETS

TYPES OF VALUE
COST VALUE IS SUM OF ALL COSTS INCURRED IN MFG OF PRODUCT eg MATRL LABOUR TOOLING O/H USE VALUE IS THE COST INCURRED TO MAKE PRODUCT FUNCTIONAL eg QLTY COSTS INCURRED TO ENSURE A/C COOLS TO REQD TEMPERATURE ESTEEM VALUE IS THE COST INCLUDED INTO PRODUCT TO ENHANCE CUSTOMER APPEAL Eg IN SOME CASES THE MOTOR CAR ESTEEM VALUE > USE VALUE IN TERMS OF FUEL CONSUMPTION LIKE IN THE CASE OF A MERCEDES BENZ WHICH GIVES ONLY 6 KM/LTR AGAINST THE AVERAGE 1518KM/LTR IN OTHER BRANDED CARS EXCHANGE VALUE IS THE VALUE OF PROPERTIES WHICH ENABLES AN ITEM TO BE EXCHANGED FOR SOMETHING ELSE .EXCHANGE VALUE IS GENERALLY RESALE VALUE. Eg REAL ESTATE EXCHANGE VALUE IS INFLATED BY 20% EVERY YEAR PLACE VALUE IS VALUE OF PROPERTY/EQUIPMENT WHICH VARIES IN PRICE WRT LOCATION eg IN MUMBAI REAL ESTATE IS MORE EXPENSIVE IN WESTERN SUBURBS THAN IN EAST TIME VALUE IS PROPERTY OF PRODUCT/SERVICE RENDERED AT THE RIGHT TIME eg THE TIMING OF AN EMERGENCY OPERATION IS CRITICAL FOR SURVIVAL OF THE PATIENT

VALUE ENGG/ANALYSIS
ECONOMIC WORTH = COST VALUE + EXCHANGE VALUE + USE VALUE + ESTEEM VALUE + PLACE VALUE + TIME VALUE REAL WORTH = ECONOMIC WORTH/COST VALUE REAL WORTH = WORTH/LIFE CYCLE COST FOCUS OF VE TO INCREASE REAL VALUE OF PRODUCT PROCESS OR SERVICE VE/VA GENERALLY RESULTS IN COST REDUCTION

QUESTIONS IN VALUE ANALYSIS

CAN WE DO WITHOUT IT DOES IT DO MORE THAN REQD DOES IT COST MORE THAN IT IS WORTH CAN SOMETHING ELSE SUBSTITUTE IT CAN TWO PARTS BE COMBINED OR CAN ONE COMPONENT BE MADE INTO TWO CAN IT BE MADE IN A LESS COSTLY METHOD WITH LESS COSTLY MATRL CAN IT BE MADE CHEAPER BETTER OR FASTER WHAT NEW PROCESSES CAN WE USE

QUESTIONS IN VALUE ANALYSIS

CAN AN ALTERNATIVE MATRL BE USED CAN ANY DIMENSIONS BR REDUCED TO USE LESS MATRL CAN AMOUNT OF WASTE BE REDUCED CAN PARTS BE STANDARDISED CAN TWO PARTS BE COMBINED IS BUYING CHEAPER THAN MAKING WHAT IS THE COST OF ADHERING TO SPECS WHAT NEW PROCESSES CAN BE USED

WAYS TO INCREASE VALUE BY VE

REDUCE FUNCTIONS WITH CUT CORNERS EXERCISE KEEP FUNCTIONS UNCHANGED BUT REDUCE COSTS INCREASE FUNCTIONS BUT RETAIN COSTS INCREASE FUNCTIONS MORE THAN COST INCREASE

USES OF VALUE ENGINEERING

COST PREVENTION AND ELIMINATION TECHNIQUE TO REDUCE COST OF PRODUCT ENABLES BETTER UNDERSTANDING OF EMPL JOBS BALANCES COST AND PERFORMNCE PREVENTS OVER DESIGN OF COMPONENTS MOTIVATES EMPL TO GIVE CREATIVE IDEAS INCREASES PROFITS AND DEFLATES COSTS HELPS SATISFY CUSTOMERS WITH PRODUCTS

PRINCIPLES OF VALUE ANALYSIS

DO NOT USE A PART THAT DOES NOT CONTRIBUTE TO THE VALUE OF THE PRODUCT DO NOT USE A PART WHOSE COST IS NOT PROPORTIONAL TO ITS USEFULNESS DO NOT PROVIDE ANY FEATURES TO THE COMPONENT OR FINISHED PRODUCT THAT ARE NOT ABSOLUTELY REQUIRED ACCEPT CHANGE IF PART OF REQD QLTY IS MADE BY A PROCESS COSTING LESS THEN USE THE ALTERNATIVE PROCESS USE STANDARDISED PARTS WHEREVER POSSIBLE USE PROPER MFG METHODS TAKING INTO ACCOUNT THE QUANTITIES COST OF COMPONENT USED SHOULD BE PROPORTIONAL TO ITS FUNCTION USE THE MATERIAL BEST SUITED FOR THE PURPOSE PURCHASE THE PART INSTEAD OF IN HOUSE MFG IF SUITABLE SUPPLIER CAN PROVIDE THE PART OF GOOD QLTY AT REASONABLE PRICE

WHEN TO APPLY VA
PRODUCTS ARE LOSING THEIR MKT SHARE AND THERE IS DECLINE IN SALES PRODUCTS ARE PRICED HIGHER THAN COMPETITION IN A PRICE SENSITIVE MKT OR PRODUCT COST IS > SALES PRICE OF COMPETITION NEW DESIGNS TO BE UNDERTAKEN RISING MFG COSTS

REASONS FOR UNNECCESARY COSTS

LACK OF RELEVANT INFO LEADS TO WRONG DECISIONS WHICH INCREASE COSTS WRONG BELIEFS FROM ACCEPTING OPINIONS LACK OF IDEAS

DIFFERENCE BETWEEN VE AND OTHER COST REDUCTION TECHNIQUES ORIENTED TRADITIONAL TECHNIQUES ARE POST PRODUCTION
AND CONCENTRATION IS ON THE PART OR ELEMENT IN CONTRAST TO VALUE ANALYSIS WHICH IS FUNCTION ORIENTED OTHER TECHNIQUES TRY TO REDUCE THE COST BY EXISTING METHOD WHEREAS VA NEVER CONSIDERS ANY PROCESS METHOD OR ELEMENT GRANTED AND IT ANALYSES BY FUNCTION RATHER THAN PART OR ELEMENT COST REDUCTION CAN REDUCE THE COSTS UPTO 10% WHEREAS VA CAN REDUCE COSTS UPTO 40-50% WITHOUT SACRIFICING QLTY AND PERFORMANCE VALUE ANALYSIS QUESTIONS THE VERY EXISTENCE OF PARTS OR PROCESS BY ANALYSIS OF ITS DESIGN SPECIFICATIONS, MATRLS AND PROCESS OF MFG COST REDUCTION IS COST ORIENTED AND CONCENTRATES ON FINDING THE CHEAPER COST WHEREAS VALUE ANALYSIS IS FUNCTION ORIENTED AND TRY TO PRODUCE THE PRODUCT AT LOWEST COST WITHOUT SACRIFICING QLTY AND PERFORMANCE

STRATEGIC STEPS IN VALUE ANALYSIS

DETERMINE FUNCTION AND COST OF EACH ELEMENT IN FINISHED PROD CONSIDER ALTERNATIVES THAT FULFIL FUNCTIONS SELECT BEST ALTERNATIVE WHICH INCLUDES MATRL,STANDARDISATION OF DIMENSIONS STRATEGIC CHOICE OF MAKE EXPENSIVE PRODUCTS OR SUBCONTRACT MODIFY DESIGN TO REDUCE COSTS

VA PROCEDURE
IDENTIFY ITEMS TO BE ANALYSED DIFFERENTIATE WHETHER ITEM OR PROCESS IDENTIFY INTERNAL AND EXTERNAL CUSTOMERS IDENTIFY BASIC FUNCTIONS IDENTIFY SECONDARY FUNCTIONS WHICH SUPPORT BASIC TO PRIORITISE DETERMINE VALUE OR IMPERTANCE TO CUSTOMER OF EACH FUNCTION BREAK ITEM/PROCESS INTO CONSTITUENT COMPONENTS BY USING FLOWCHART ASSOCIATE COMPONENTS WITH FUNCTIONS LOOK FOR COMPONENTS WHICH CAN BE MODIFIED OR ELIMINATED

OPTIONS IN VA/VE
MODIFY INTEGRATE SUBSTITUTE SIMPLIFY

EXAMPLES OF VALUE ANALYSIS

MODIFY-MOTOR CAR ENGINES HAVE BEEN MODIFIED TO RUN ON CNG INTEGRATE-AIR CONDITIONER AND HEAQTER INTEGRATED INTO ONE UNIT SUBSTITUTE-INHOUSE WIRING HAS BEEN CHANGED FROM COPPER TO ALUMINIUM OR COKE BOTTLES CHANGED FROM GLASS TO PLASTIC SIMPLIFY-APPLICATION SOFTWARE SIMPLIFIED BY BEING MADE MODULAR.EARLIER ALL MODULES WERE BUNDLED OR COMPLICATED EQUIPMENT MADE MODULAR WHICH SIMPLIFIES MAINTENANCE

WHEN TO USE VA/VE

AIM IS TO EVALUATE REAL VALUE OF PRODUCT/PROCESS FOCUS IS ON SAVING COSTS AIM IS ON INCREASING VALUE OF PROCESS/PRODUCT

BENEFITS OF VALUE ENGINEERING

COST REDUCTION/ELIMINATION TECHNIQUE BALANCES COSTS AND PERFORMANCE PREVENTS OVER DESIGN OF PRODUCT (CUSTOMER FUNCTION DEPLOYMENT) INCREASES PROFITS AND REDUCES COSTS INCREASES CUSTOMER SATISFACTION

BENCHMARKING

OVERVIEW OF BENCHMARKING
External focus on internal activities or operations in order to achieve continuous improvement Starting from analysis of existing activities and practices within the firm objective is to understand existing processes and then identify an external standard by which activity can be measured or compared Benchmarking provides management with tools needed to make decisions thru provision of objective measurement Measures companys ability to meet various stakeholder needs Provides ground for kaizen exercises

DEFINITION OF BENCHMARKING
MEASURES PERFORMANCE OF REFERENCE COMPANY WITH TARGETTED TO FIND OUT WHERE WE STAND IN PERFORMANCE OBJECTIVE IS TO IDENTIFY AREAS OF IMPROVEMENT IN OUR OPERATIONS AND THROUGH COMPARISON WITH OTHER COMPANIES INITIATE AN IMPROVEMENT PROGRAM BENCHMARKING DONE FOR STRATEGIC,TACTICAL OR OPERATIONAL PROCESSES SHOULD BE A CONTINUOUS PROCESS BENCHMARKS COULD BE BETWEEN DEPTS OF A PLANT ,BETWEEN 2 SBU IN A PLANT,BETWEEN 2 PLANTS,BETWEEN COMPETITION AND EVEN WITH DISSIMILAR COMPANIES

TYPES OF BENCHMARKS
ACTIVITIES WITHIN DEPT SIMILAR ACTIVITIESBETWEEN DEPTS OF A SBU SIMILAR ACTIVITIES BETWEEN TWO SBU SIMILAR ACTIVITES BETWEEN TWO PLANTS SIMILAR ACTIVITIES WITH COMPETITION BENCHMARKING WITH SIMILAR ACTIVITIES WITH DISIMILAR OPERATIONS

CRITERIA FOR BENCHMARKING

STRATEGIC FOCUSSETTING OF OBJECTIVES AND GOALS BASED ON UNDERSTANDING OF CUSTOMER REQMNTS AND PROCESS CAPABILITY OPERATIONAL FOCUSDETERMINE GAPS IN PERFORMANCE AND FIND REMEDIAL MEASURES TO ADDRESS GAPS CUSTOMER FOCUSMKT DRIVEN STRATEGIES FOCUSSING ON CUSTOMER,SETTING CUSTOMER BASED TARGETS,OPTIMISING LEVEL OF OUTPUT/SERVICE WHICH REPRESENT VALUE FOR CUSTOMER PROCESS FOCUS--FOCUS ON OPTIMISATION OF PROCESS THRUPUT AND TIME AND ELIMINATION OF WASTE/NON VALUE ADD ACTIVITIES QUALITY FOCUSENSURE THAT ALL PROCESSES DELIVER OUTPUT WHICH IS IN CONFORMITY WITH THE EXPECTATION OF THE CUSTOMER LEARNING FOCUSCONTINUOUS UPDATION OF SKILLS AND KNOWLEDGE

STEPS FOR BENCHMARKING

IMPLEMENTING BEST PRACTICES 11 STEP PROCESS FOLLOWED BY XEROX A.PLANNING 1.IDENTIFY PROCESS 2.IDENTIFY TARGET 3.DETERMINE DATA COLLECTION METHOD B.ANALYSIS 4.COLLECT DATA AND ANALYSE 5.IDENTIFY GAPS IN PERFORMANCE AND REASONS 6.DETERMINE METHODOLOGY TO IMPROVE AND ADDRESS GAPS

STEPS FOR BENCHMARKING

C.IMPLEMENTATION 7.ESTABLISH FUNCTIONAL GOALS OF IMPROVEMENT EXERCISE 8.DEVELOP ACTION PLANS FOR IMPROVEMENT, MEASUREMENT AND CONTROLS 9.IMPLEMENT ACTION PLANS ,MEASURE ,CONTROL AND REASSESS SITUATION AND CONTINUALLY IMPROVE 10.RECALIBRATE BENCHMARK D.MATURITY 11. ACHIEVE PROCESS CAPABILITY,MATURITY AND INDUSTRY LEADERSHIP

Ratios

TVS

Hero Honda

4.5625636 ASSET TURNOVER RATIO 0.999 MFG COST/EXPENDITURE RM COST/SALES RM cost/Mfg cost ACR in days ACP in days PLANT REPLACEMENT VALUE % HUMAN CAPITAL ROI HC VALUE ADD MCV Total Tangible Assets TOTAL INTANGIBLE ASSETS INTANASSETS/TANGIBLE ASSETS RATIO 0.699 0.739 17.93 54.3 4.89% 12.98 1.105cr 1927 1862.98 64 0.03

9.4998

0.9871

0.64 0.977 2.51 24.17 3.68% 7.83 cr 0.8476 cr 41489 4135.6 37353 9

Ratios
INV IN DAYS WIP IN DAYS RM IN DAYS FG IN DAYS GOODS IN TRANSIT IN DAYS SPARES IN DAYS INVENTOR Y IN MONTHS RAW MATERIAL CONSUMPTION INDEX SPARES CONSUMPTION INDEX INVENTORY TURNS Inventory Index Scrap sale as % sale Purchasing cost % Sales PURCHASI NG COST%MF G COST

TVS
23.58 2.47 9.97 9.76 16.67 NA

Hero Honda
10.11 1 1 1 46.11

0.786 31.70001 NA 6.9368198 14.549066 0.007105 69.57

0.337 33.3769391 0.433171592 24.27770948 164.1377163 0.077030821 20.83

73.57

31.68

Ratios
COST PER UNIT SALES REALIZATION PER UNIT CONTRIBUTION PER UNIT PRODUCTI VITY/EMPL Sales/Employee Profit per Employee Sustainable Growth Maintenance cost as a % Mfg Costs Maintenance costs as a % of sales Maintenance costs as a % of Net Fixed assets Cost of Raw Material consumed per unit produced COST OF ENERGY CONSUMED PER UNIT PRODUCED RAW MATERIAL TURNS FINISHED GOODS TURNS

TVS
24900

Hero Honda
34169

24941 220 361.42 1.0557156 0.071 1947.2262 1.1332112 1.07% 4.89% 0.00

36477 12475 967 3.53 0.596 798137.7971 0.778476132 0.40% 3.69% 23339.25 87.93

29.42829 37.505678

387.8742775 445.4921162

BENEFITS OF BENCHMARKING
IDENTIFICATION OF BOTTLENECKS AND POORLY PERFORMING ACTIVITIES CORRECTIVE ACTION TAKEN LEADING TO IMPROVEMENT IN OPERATIVE PARAMETERS AND REDUCTION IN COSTS AND TIME TO MKT CREATES A CULTURE THAT VALUES CONTINUOUS IMPROVEMENT TO ACHIEVE EXCELLENCE INCREASING SENSITIVITY TO CHANGES IN EXTERNAL ENVIRONMENT FOCUS THRU PERFORMANCE TARGETS PRIORITISING AREAS THAT NEED IMPROVEMENT SHARING BEST PRACTICES BETWEEN BENCHMARKING PARTNERS

SUCCESSES IN BENCHMARKING
QLTY IMPROVEMENT TO 150 PPM DEFECTS INCOMING PARTS DEFECTS < 5% INVENTORY REDUCTION BY 60% MKTNG PRODUCTIVITY ENHANCED BY 40% SERVICE LABOR COST REDUCED 30%

Productivity Technique

352

Introduction
Definition: Work Study is the systematic examination of the methods of carrying on activities so as to improve the effective use of resources and to set up standards of performance for the activities being carried out.

Work Study succeeds because it is systematic both in the investigation of the problem being considered and in the development of its solution.
353

Continue.
If work study results in cutting down the time of performing a certain activity by 20 per cent  Merely as a result of rearranging the sequence or simplifying the method of operation Without additional expenditure Then productivity will go up by a corresponding value, that is by 20 per cent.

354

WORK STUDY
OPERATIONS MGT IS ABOUT ADDING VALUE IN ACTIVITIES AND PRODUCING RESULTS AS DESIRED BY THE CUSTOMER. ACTIVITIES HAVE INPUTS WHICH ARE IN VARIOUS FORMS. THEY ALSO HAVE BUSINESS RULES AND METHODS BY WHICH THEY HAVE TO BE PERFORMED.THEY ALSO PRODUCE RESULTS WHICH SHOULD CONFORM TO CUSTOMERS REQUIREMENT WORK STUDY DEFINED AS SCIENCE OF EXAMINATION OF HUMAN WORK IN ALL CONTENTS WHICH LEADS TO SYSTEMATIC INVESTIGATION OF ALL FACTORS WHICH AFFECT EFFICIENCY GENERIC FORM OF TECHNIQUES WHICH ARE USED TO EXAMINE HUMAN WORK IN ALL ASPECTS AND WHICH SYSTEMATICALLY LEAD TO THE INVESTIGATION OF ALL FACTORS WHICH AFFECT THE EFFICIENCY OF THE

WORK STUDY
WORK STUDY INVESTIGATES AND CRITICALLY EXAMINES WORK DONE AND FINDS THE BEST AND MOST EFFECTIVE WAY OF USING RESOURCES TO AHIEVE BEST QUALITY RESULTS IN THE LEAST TIME AND COST CRUX OF WORK STUDY IS TO OPTIMIZE USAGE OF INPUT RESOURCES AND TO MAXIMIZE PRODUCTIVITY WORK STUDY HELPS IN DECIDING RESOURCE REQUIREMENTS AT THE

Operational Time
Definition: The time taken by a worker or a machine to carry out an operation or to produce a given quantity of a certain product . Basic work content of product and/or operation Work content added by poor product design or material utilization Work content added by inefficient methods of manufacturing or operation. Ineffective time resulting from human resources contribution
357

Techniques of work study

Method study :The systematic recording and critical examination of ways of doing things in order to make improvements. Work measurement :The application of techniques designed to establish the time for a qualified worker to carry out a task at a defined rate of working.

358

Work Study Relationship

Method Study
To simplify the job & develop more economical methods of doing it

Work study

Work Measurement
To determine how long it should take to carry out

Higher Productivity

359

BASIC WORK CONTENT

WORK CONTENT OF IS THE AMOUNT OF WORK CONTAINED IN A GIVEN PRODUCT OR PROCESS MEASURED IN MANHOURSOR MACHINE HOURS BASIC WORK CONTENT IS THE NON REDUCIBLE MINIMUM TIME REQUIRED TO PRODUCE ONE UNIT OF OUTPUT

ADDED WORK CONTENT

WORK CONTENT ADDED BY DEFECTS IN DESIGN OR SPECS OF PRODUCT ADDITIONAL WORK CONTENT IS TIME TAKEN OVER AND ABOVE TIME OF BASIC WORK CONTENT DUE TO FEATURES INHERENT IN PRODUCT WHICH CAN BE ELIMINATED WORK CONTENT ADDED BY INEFFICIENT OR UNASSURED METHODS eg INSPECTION THIS IS TIME TAKEN OVER AND ABOVE THE BASIC WORK CONTENT PLUS TIME

ADVANTAGES OF WORK STUDY

IMPROVED PRODUCTION FLOW HIGHER PRODUCTIVE EFFICIENCY REDUCE MANUFACTURING COSTS FAST AND ACCURATE DELIVERIES BETTER EMPLOYEE RELATIONS BETTER SERVICE TO CUSTOMERS JOB SATISFACTION TO EMPLOYEES BETTER WORKING CONDITIONS HIGHER INCENTIVE BASED WAGES BASED ON HIGHER PRODUCTIVITY

ADVANTAGES OF WORK STUDY

PRODUCTION SMOOTHING DUE TO LINE BALANCING REMOVAL OF BOTTLENECKS LEADING TO REDUCED INVENTORY HIGHER PRODUCTIVE EFFICIENCY REDUCED MFG COST ACCURATE DELIVERY DATES TO CUSTOMER AS PER COMMITMENT BETTER SERVICE TO CUSTOMER

How to apply Work Study

Method Study
Analyzing the specific Methods used in carrying out an operation And simplifying job thru Economical ways

Work Measurement
-Determine the time required to perform the operation and it s elements -Comprises of Motion and Time study

APPLICATIONS IN WORK STUDY

INDUSTRIES MARKETING SALES AND DISTRIBUTION OFFICES , STORES AND WAREHOUSES MATERIAL HANDLING DESIGN CONSTRUCTION TRANSPORT HOSPITALS DEFENCE AGRICULTURE

BENEFITS OF WORK STUDY

PRODUCTION SMOOTHING DUE TO LINE BALANCING REMOVAL OF BOTTLENECKS LEADING TO REDUCED INVENTORY HIGHER PRODUCTIVE EFFICIENCY REDUCED MFG COST ACCURATE DELIVERY DATES TO CUSTOMER AS PER COMMITMENT BETTER SERVICE TO CUSTOMER

BENEFITS OF WORK STUDY

REDUCTION IN WASTAGES JOB SATISFACTION IN WORKERS BETTER WORKING CONDITIONS REDUCED FATIGUE IN WORKERS HIGHER WAGES TO WORKERS BECAUSE OF PRODUCTIVITY LINKED WAGES

METHOD STUDY

METHOD STUDY
DEFINED AS SYSTEMATIC AND SCIENTIFIC ANALYSIS OF PROPOSED METHOD OF DOING A JOB IN ORDER TO DEVELOP A SIMPLE EFFICIENT EFFECTIVE AND LESS FATIGUING PROCEDURE OF DOING THE SAME JOB AT A LESSER COST BY OPTIMIZING INPUT RESOURCES IT USES DIFFERENT PROCESS MAPPING TECHNIQUES TO IDENTIFY AND ERADICATE THE NON VALUE ACTIVITIES OBJECTIVE OF METHOD STUDY IS TO IMPROVE PROCESS OF VALUE ADDITION .THIS IS DONE BY MAXIMIZING VALUE ADDED OPERATIONS AND MINIMIZING OR ELIMINATING DELAY STORAGE

METHOD STUDY
METHOD STUDY INVOLVES THE STUDY OF HOW ACTIVITIES ARE PERFORMED AND ATTEMPTS TO REMOVE NON VALUE ADDED ACTIVITIES AS WELL AS IMPROVE THE PROCEDURE AND WAY IN WHICH THE ACTIVITY IS PERFORMED SO THAT THE TIMING TO EXECUTE MAY BE REDUCED AND THE ACTIVITY IS PERFORMED IN LESSER TIME WITH LESSER EFFORT. Eg DENNIS LILEE BOWLING ACTION AFTER BACK OPERATION

METHOD STUDY
METHOD STUDY IS SYSTEMATIC RECORDING AND CRITICAL EXAMINATION OF WAYS OF DOING THINGS OBJECTIVE OF METHOD STUDY IS TO IMPROVE ACTIVITY ACTIVITY CAN BE IMPROVED THROUGH PROCESS REENGINEERING BY ELIMINATING NVA ACTIVITIES OR BY REDUCING EXISTING TIMINGS OF ACTIVITIES THROUGH BETTER WAYS NEED TO DRAW PROCESS CHARTS AND ACTIVITY CHARTS WITH MOVEMENT,STORAGE,DELAY,INSPECTION,ACTIVITY,DECI SION ALONG WITH TIMINGS

PHILOSOPHY OF METHOD STUDY

THERE IS ALWAYS A BETTER WAY TO DO A JOB THE BEST WAY IS NEVER ACHIEVED IT IS A CONTINUOUS IMPROVEMENT EXERCISE;LIMITATIONS ARE IMPSED CONSTRAINTS

INDICATIVE AREAS OF METHOD STUDY

EXCESSIVE MATERIAL USAGE BENCHMARK MATERIAL COSTS AND PROCUREMENT COSTS TO MFG COST AND EXPENDITURE EXCESSIVE SCRAP GENERATION UNDER UTILIZATION OF EQUIPMENT AND LABOR POOR PLANT LAYOUTS EXISTENCE OF BOTTLENECK(UNDER CAPABILITY)S OR CAPACITY CONSTRAINTS(TOC) UNDER LABOUR PERFORMANCE DUE TO FATIGUING OR WRONG WORK METHODS

CASE STUDY OF BHEL MATERIALS MANAGEMENT RATIOS

DATA FOR BHEL MM RATIOS 2009-10 &200809 FIGURES IN CRORES

2009-10
SALES PROFIT EXPENDITURE VALUE ADD RAW MATERIAL CONSUMPTION FINISHED GOODS INVENTORY RAW MATERIAL INVENTORY TRANSIT INVENTORY SCRAP INVENTORY SCRAP SALE INVENTORY ACP CASH ACR 34154 5174 28979 13171 17454 600 2922 968 44 189 9235 223 9790 20689

2008-09
28033 3706 24327 9894 15304 521 2633 634 40 190 7837 97 10315 15976

DATA FOR BHEL MM RATIOS 2009-10 &200809 FIGURES IN CRORES

2009-10
MANUFACTURING COSTS RAW MATERIAL CONSUMPTION EXCISE ENERGY MAINTENANCE TAXES TOTAL MANUFACTURING COST 17454 68 338 437 49 18346

2008-09
15304 95 342 371 47 16159

BHEL MM RATIOS 2008-09 AND 2009-10

2009-10
INVENTORY TO IN DAYS RM INVENTORY TO IN DAYS TRANSIT INV TO IN DAYS SCRAP INV TO IN DAYS SCRAP SALE % SALES(%) VALUE ADD/SALES(%) PROCUREMENT CR(SLA-VA) RM CONS % SALES PROCUREMENT/SALES %
INVENTORY TURNS(SLES-PR/((OP+CL)/2) RM CONS % MFG COST RM CONS%EXP INVENTORY %NET WORKING CAPITAL (NWC=CASH+ACR+INV-ACP)

2008-09

99 HIGH 103 31 34 10 8 0.47 0.52 0.55 HIGH(<0.04) 0.68 38.56 LESS(>50%) 35.29 20983 18139 50.64 54.59 61.44 45-50% (HIGH)64.70
257.6 76.05 95.14 AUTOMATED(60) 94.71 60.24 40% (HIGH) 62.96 23.50 80% (LOW NWC) 23.15

BHEL MM RATIOS 2008-09 AND 2009-10

2009-10
ACR(DEBTORS) IN DAYS ACP IN DAYS INVENTORY IN MTHS ((OPBAL+CLBAL)/2 )/ ANNUAL CONS/12 RM IN MTHS 221 VERY HIGH 2.38 VERY LOW

2008-09
208 1.26

5.87MTHS 1.91MTHS

PAINT INDUSTRY Ratio Analysis Asian Paints Vs Kansai Nerolac

Financial & Operational data Parameters Asian(In Cr.) Nerolac(In Cr.)

Share Capital Net Fixed Assets Current Assets Inventories (Closing balance) Inventories (Opening balance) Accounts Receivable(ACR) Accounts Payable(ACP) Work in progress Finished Goods COGS Sales Gross Profit Expenditure Wages Profit 95.9 1057.2 1546.2 1049.7 645.3 366.7 1407.7 57.9 547.0 4674.43 6943.9 2269.45 5177.7 454.0 775.2 53.9 381.8 654.1 354.1 247.4 260.3 351.3 24.2 206.8 1462.6 2365.8 903.2 1898.4 83.9 289.1

Parameters

Cont Asian(In Cr.)

199.87 3646.9 3081.9 34.6 25.0 3120.1 NA 849056.0 667928.0 4640.0 61.1 416.2 547.0 10.0 2434.8 11.2

Mfg cost Raw material cost Raw Materials consumed Repairs & Maintenance cost Consumption of Spares Purchasing Cost Scrap Sales Units Produced Units Sold No. of employees Cost of energy consumed Raw Material Inventory FG inventory No. of Equity shares(in crores) Avg market value of shares After tax return on sales

Nerolac(In Cr.) 63.0 1269.3 1233.1 6.3 15.7 1499.7 NA 234845.0 231959.0 2220.0 33.4 98.7 173.7 6.0 799.3 12.2

Ratios ASSET TURNOVER RATIO MFG COST/EXPENDITURE RM COST/SALES

Ratios Asian

Nerolac 6.57 6.20 0.04 0.03 0.53 0.52

6 5 4 3 2 1 0
ASSET TURNOVER RATIO RM COST/SALES Asian Paints Kansai Nerolac

Ratios RM COST/MFG COST ACR IN DAYS ACP IN DAYS

80 70 60 50 40 30 20 10 0 RM COST/MFG COST

Ratios Asian

Nerolac 18.25 19.58 19.27 40.15 74.00 54.19

Asian Nerolac

ACR IN DAYS

ACP IN DAYS

Ratios INV IN DAYS WIP IN DAYS RM IN DAYS FG IN DAYS INVENTORY TURNOVER

60.00 50.00 40.00 30.00 20.00 10.00 0.00

Inventory Ratios Asian Nerolac

55.18 3.04 21.88 28.75 6.74 54.63 3.73 15.23 26.79 4.86

Asian Nerolac

INV IN DAYS WIP IN DAYS RM IN DAYS FG IN DAYS

Ratios HUMAN CAPITAL ROI SALES PER EMPL PROFIT PER EMPL

EmployeeNerolac Ratios Asian

4.89 1.50 0.27 6.57 1.07 0.41

7.00 6.00 5.00 4.00 Asian 3.00 2.00 1.00 0.00 HUMAN CAPITAL ROI SALES PER EMPL PROFIT PER EMPL Nerolac

OBJECTIVES OF METHOD STUDY

IMPROVED WORK PROCESS LEADING TO ENHANCED PRODUCTIVITY REDUCED COSTS AND RESOURCES IMPROVE QUALITY WITH NO ADDITONAL RESOURCES REDUCE SCRAP AND REWORK1FD STANDARDIZED PROCEDURE LEADIND TO CONSISTENCY IN ACTIVITY EXECUTION;HENCE GENERALLY CONSISTENCY IN PERFORMANCE BETTER WORKPLACE LAYOUT SAFER WORKING CONDITIONS IMPROVED PRODUCT QUALITY DUE TO HIGHER QUALITY ASSURANCE IMPROVED WORK ERGONOMICS LEADING TO HIGHER PRODUCTIVITY

Objective of Method Study

 Improvement of processes and procedures  Improvement in the design of plant and equipment  Improvement of layout  Improvement in the use of men, materials and machines  Economy in human effort and reduction of unnecessary fatigue  Improvement in safety standards  Development of better working environment.
387

HUMAN OPERATIONS ANALYSIS

DETAILED STUDY OF DIFFERENT OPERATIONS INVOLVED IN DOING WORK WITH THE OBJECTIVE TO FIND DEFECTS IN EXISTING METHODS AND TO DEVELP IMPROVED PROCEDURE AIMS AT OPTIMIZING UTILIZATION OF RESOURCES AND ESPECIALLY THOSE PARTS OF HUMAN BODY INVOLVED IN DOING WORK

METHOD STUDY PROCEDURE

SELECT WORK TO BE STUDIED AND DEFINE OBJECTIVES TO BE ACHIEVED OBJECTIVE MAY BE TO REDUCE COSTS BOTTLENECKS OR TO REDUCE FATIGUE INCURRED BY WORKERS AND TO INCREASE THEIR EFFICIENCY eg CONVEYOR BELT BY FORD RECORD RELEVANT INFORMATION PERTAINING TO EXISTING METHOD IN DETAIL AND DOCUMENT ACTIVITIES BY WAY OF MATERIAL FLOW CHARTS , PROCESS FLOW CHARTS , ACTIVITY FLOW CHARTS,INFORMATION FLOW CHARTS

METHOD STUDY PROCEDURE

EXAMINE THE RECORDED EVENTS CRITICALLY .ANSWERS QUESTIONS TO WHETHER AN ACTIVITY CAN BE ELIMINATED , SIMPLIFIED OR COMBINED WITH ANOTHER.BASIC QUESTIONS ARE -PURPOSE WHAT IS DONE -PERSON WHO DOES IT -PLACE WHERE IT IS TO BE DONE -MEANS HOW IS IT DONE -SEQUENCE IN WHAT ORDER IS IT DONE DEVELOP BEST METHOD WHICH IS PRACTICAL , FEASIBLE, SAFEAND ,EFFECTIVE,ECONOMICAL AND ACCEPTABLE TO ALL PARTICIPANTS IN THE

METHOD STUDY PROCEDURE

INSTAL THE BEST DEVELOPED METHOD MAINTAIN AND CONTINUOUSLY REVIEW AND IMPROVE THE NEW METHOD (ADLI)

Method Study Procedure

1. 2. 3. 4. 5. 6. 7. DEFINE RECORD EXAMINE DEVELOP DEFINE NEW METHOD INSTALL MAINTAIN
392

ADVANTAGES OF METHOD STUDY

IMPROVED WORK PROCESS LEADING TO HIGHER PRODUCTIVITY STANDARDIZED PROCEDURE LEADING TO CONSISTENCY IN PERFORMANCE AND OPTIMIZED THROUGHPUT AND REDUCED WASTE EFFECTIVE MATERIALS HANDLING BETTER WORK PLACE LAYOUT AND POSITIONING AND ARRANGING FACILITIES AND MACHINES NEAT AND CLEAN ENVIRONMENT REDUCED FATIGUE IN WORKERS SAFER OPERATIONS AND FEWER ACCIDENTS IMPROVES PRODUCT QUALITY AND RESOURCE UTILIZATION ENSURES SAFETY AND MINIMIZES HEALTH HAZARDS AT WORKPLACE ENSURES EFFECTIVENESS OF RESOURCE UTILIZATION GREATER JOB SATISFACTION HIGHER PRODUCTIVITY HENCE LOWER COSTS AND HIGHER PROFITS

TIME STUDY(WORK MEASUREMENT)

WORK MEASUREMENT(TIME STUDY)

TECHNIQUE DEVELOPED TO ESTABLISH TIME REQD TO CARRY OUT A JOB AT A DEFINED LEVEL OF PERFORMANCE WORK MEASUREMENT ISA;SO KNOWN AS TIME STUDY

TIME STUDY
TIME STUDY CAN BE DEFINED AS THE APPLICATION OF SCIENTIFIC TECHNIQUES TO MEASURE WORK CONTENT OF ACTIVITY IN A NORMAL DEFINED SITUATION AND ESTABLISH TIME REQUIRED TO EXECUTE JOB BY VARIOUS SKILLS AT A DEFINED LEVEL OF PERFORMANE. FALLACY LIES IN DEFINING STD TIME FOR ALL LEVELS OF CAPABILITY AND EXPERIENCE

TIME STUDY
IT DETERMINES THE TIME TAKEN TO DO A JOB DECIDES MANPOWER REQUIRED (QUANTITY VS QUALITY) DECIDES EQUIPMENT REQUIRED PROVIDES VALUABLE INFO FOR PRODN PLANNING IN TERMS OF TIME ESTIMATION FOR EACH STEP IN THE ROUTING INDICATES REALISTIC LABOR BUDGETING PROVIDES BASE FOR STD COSTING (CHECK CHANGING PARAMETERS) RESULTS IN EFFECTIVE LABOUR CONTROL

TIME STUDY
CONSISTS OF A WIDE VARIETY OF PROCEDURES FOR DETERMINING THE AMOUNT OF TIME REQD UNDER CERTAIN STD CONDITIONS OF MEASUREMENT A TERM WORK MEASUREMENT IS ALSO USED FOR TIME STUDIES

Objective of Work Measurement

 To find ineffective time in a process  To set standard for output level  To evaluate worker's performance  To plan work force needs.  To determine available capacity  To compare work methods  To facilitate operations scheduling  To establish wage incentive schemes

399

USE OF WORK MEASUREMENT DATA

COMPARISON OF ALTERNATE METHODS PEOPLE AND SKILL ALLOCATION TO A JOB eg S/W PROJECTS WORK MEASUREMENT FORMS A BASIS FOR TIME ESTIMATION AND MAN POWER PLANNING CONTROL LABOR COSTS ESPECIALLY OVERTIME DECIDING OUTPUT STDS FOR JOB ESTIMATION IN TERMS OF COSTS AND TIME TO DELIVER DECIDING PRODUCTION NORMS AND INCENTIVES BASIS OF RESOURCE ALLOCATION

STANDARD TIME
AMOUNT OF TIME REQUIRED TO COMPLETE A UNIT OF WORK -UNDER EXISTING WORKING CONDITIONS -USING SPECIFIED METHOD AND MACHINERY -BY OPERATOR AT STANDARD PACE ALLOWANCES SUCH AS IDLENESS ,STOPPAGES,PERSONAL REST/RELAXATION ARE ADDED TO NORMAL TIME TO ARRIVE AT STD TIME

USE OF STANDARD TIME

STANDARD TIME IS USED AS A NUMERICAL COEFFICIENT FOR CONVERTING A QUANTITATIVE STATEMENT OF THE WORKLOAD TO A QUANTITATIVE STATEMENT OF THE REQUIRED RESOURCES PLANNED COSTS ARE DERIVED FROM STANDARD TIMES BECAUSE BUDGETS ARE DERIVED FROM THE ACTIVITIES PERFORMED IN STANDARD TIME WHICH REQUIRE MONEY MATERIAL MEN etc. STANDARD TIME IS USED TO DETERMINE LABOR AND EQUIPMENT REQUIREMENTS ESPECIALLY OUTSOURCED EQUIPMENT .IN CERTAIN JOBS STANDARD TIME IS OF CRITICAL IMPORTANCE BECAUSE OF RESTRICTIONS IN DOWN TIME eg AN OIL AND GAS PRODUCTION WELL CAN BE DOWN FOR ONLY 120 HOURS IN A YEAR AND ALSO THEY NEED TO OUTPUT A MINIMUM FLOW OF GAS FAILING WHICH HEAVY PENALTIES ARE LEVIED

USE OF STANDARD TIME

TO ASSIST IN DEVELOPING EFFECTIVE METHODS TO DETERMINE THE NUMBER OF EQUIPMENT A PERSON CAN MANAGE AT A TIME eg WEAVERS 8/16 LOOMS. TIME VALUES SHOULD BE SET IN SUCH A WAY TAKING INTO ACCOUNT AN AVERAGE WORKER WITH A CERTAIN MINIMUM LEVEL OF SKILLS.TODAY THE STD TIMES ARE ERRONEOUSLY CALCULATED ON EITHER VERY HIGH SIDE LEADING TO LOW PRODUCTIVITY FIGURES OR LOW SIDE LEADING TO MISLEADING HIGH PRODUCTIVITY FIGURES. Eg STD TIME 20 MIN ACTUAL TIME 10 MIN PRODUCTIVITY 200% DISTRIBUTION OF WORK AMONG CREW COMPARE METHODS TO SET SCHEDULES TO SET LABOR STANDARDS FOR WAGE INCENTIVES

USE OF STANDARD TIME

TO SET SUPERVISORY OBJECTIVES TO ASSIST IN COMPARING PLANS WITH ACHIEVEMENT WITH RESPECT TO WORKLOAD AND RESOURCE USAGE FOR TOTAL PRODUCTIVITY MEASUREMENT

ALLOWANCES
ALLOWANCES ARE ADDED TO NORMAL TIME TO ARRIVE AT STANDARD TIME TYPES OF ALLOWANCES INCLUDE PROCESS ALLOWANCE AND PERSONAL ALLOWANCE PROCESS ALLOWANCE ARE ALLOCATED TO COVER ENFORCED IDLE TIME OR SPECIAL CASES WHICH ARE NOT PART OF WORK CYCLE BUT ARE ESSENTIAL FOR PERFORMING WORK eg BEAM CHANGE IN WEAVING OR MACHINE SET UP TIME OR INTERFERENCE ALLOWANCE WHEN WORKER HANDLES MORE THAN ONE MACHINE eg WEAVER HANDLES 8/16 MACHINES PERSONAL ALLOWANCES INCLUDE TIME ALLOWED FOR FATIGUE MONOTONY BOREDOM SLEEP , CALLS OF NATURE , DIFFICULT WORKING CONDITIONS etc. VARIES FROM 15% TO 30% DEPENDING ON SITUATIONS

FACTORS AFFECTING FATIGUE ALLOWANCE

METACARPAL DYSFUNCTION OR BACK TROUBLE DUE TO INCORRECT POSTURES IN WORK POSTURE FATIGUE eg COUNTER SALESMEN IN MARK & SPENCER HAVE FOOT MASSAGE AFTER OFFICE EFFORT STRAIN eg LIFTING ATMOSPHERIC CONDITIONS INCLUDING NOISE eg MINERS VISUAL STRAIN eg PATHOLOGISTS MENTAL STRAIN eg PROLONGED WORK LEADING TO LOSS OF CONCENTRATION ILO SPECS OF 7 HRS

WHAT DOES STANDARD TIME RELATE TO

IN WHAT UNITS IS WORKLOAD OR OUTPUT EXPRESSED IN WHAT UNITS ARE STAFF RESOURCES EXPRESSED A STANDARD TIME DETERMINED BY TIME STUDY WAS DEFINED AS INDICATING HOW LONG A GIVEN RATE OF WORK INPUT MUST BE MAINTAINED TO PRODUCE A UNIT OF OUTPUT TAKES INTO ACCOUNT INPUT ISSUES SUCH AS CONDITIONS OF WORK (ILLOGICAL RULE IN CRICKET-BOWL MINIMUM 15 OVERS AN HOUR IN 35 DEGREE CELSIUS WITH 90 % HUMIDITY),EQUIPMENT COMPLEXITY,SKILL AND

USE OF TIME STUDY

DETERMINING SCHEDULES AND PLANNING WORK DETERMINING STD PRODN NORMS ESTIMATING PRODUCT COSTS DETERMINING SKILLS AND CAPABILITIES REQUIRED FOR A JOB

ADVANTAGES OF TIME STUDY

DETERMINES TIME TAKEN TO DO JOB USING THE MOST OPTIMUM MEANS.HOWEVER THE STANDARD TIME EMPLOYED IS A BIT HAZY SINCE ONE STANDARD IS APPLICABLE TO DIFFERENT LEVELS OF COMPETENCES THEREBY CREATING A UNFAIR ADVANTAGE TO THE EXPERIENCED PERSONS. ALSO THE SAME PERSON PRODUCES DIFFERENT OUTPUTS AT DIFFERENT TIMES BECAUSE OF VARIOUS FACTORS RELATED TO HUMAN MOODS

ADVANTAGES OF TIME STUDY

DECIDES MANPOWER SKILLS (AND SHOULD ALSO DECIDE CAPABILITIES) REQUIRED TO DO THE JOB DECIDE EQUIPMENT REQUIRED PROVIDES INFORMATION FOR EFFECTIVE PRODUCTION PLANNING AND MAINTENANCE PROCEDURES AIDS AT CALCULATING REALISTIC DE3LIVERY DATES AND DOES REALISTIC LABOR BUDGETING PROVIDES BASIS FOR STANDARD COSTING FORMS THE BASE FOR INCENTIVE SYSTEMS

MOTION STUDY

MOTION STUDY
ANALYSIS OF AN OPERATION IN TERMS OF INDIVIDUAL MOTIONS OF A WORKER AS WELL AS WORKPLACE LAYOUT AND ERGONOMICS FOR ACHIEVING HIGH PRODUCTIVITY PURPOSE OF MOTION ANALYSIS IS TO DESIGN AN IMPROVED METHOD WHICH ELIMINATES UNNECESSARY MOTIONS AND EMPLOYS HUMAN EFFORTS MORE PRODUCTIVELY OBJECTIVE IS ALSO TO MINIMIZE FATIGUE TO OPERATORS AND AT THE SAME TIME MAXIMIZE PRODUCTIVITY

MOTION STUDY
MOTION STUDY CONSISTS OF A WIDE VARIETY OF PROCEDURES FOR SYSTEMATIC ANALYSIS AND IMPROVEMENT OF WORK PROCESS AND ORDER OF WOR METHODS CONSIDERING RAW MATRL,DESIGN OF PHYSICAL OUTPUTS,SERVICES,TOOLS WORKPLACE AND EQUIPMENT REQUIRED FOR EACH STEP IN THE PROCESS;HUMAN ACTIVITY REQUIRTED TO PERFORM EACH STEP AIM IS TO ESTABLISH AND DESIGN (SOP) CRITERION IS EFFECTIVENESS OF ACTIVITY,ACCURACY,RELIABILITY AND ECONOMY OF A PREFERABLE WORK METHOD

ANALYSIS OF MOTION
ANALYSIS OF AN OPERATION FOR ATTAINMENT OF END OBJECTIVE IS CARRIED OUT IN TERMS OF INDIVIDUAL MOTIONS OF A PERSON AS WELL AS THE WORK PLACE LAYOUT AND ERGONOMICS FOR ATTAINMENT OF HIGHEST LEVEL OF PRODUCTIVITY PURPOSE OF MOTION ANALYSIS IS TO ELIMINATE UNNECESSARY MOTIONS TO REDUCE FATIGUE AND EFFORT AND MAKE HUMAN EFFORT MORE PRODUCTIVE eg WEIGHT LIFTING

STEPS FOR MOTION STUDY

CHART VARIOUS MOTIONS PERFORMED BY OPERATORS IDENTIFY LABORIOUS AND IDLE MOTIONS.ALSO IDENTIFY COMPLEX MOTIONS WHICH ARE DIFFICULT TO PERFORM.OCCASIONALLY PERFORMER EXAGGERATES COMPLEXITY OF MOTION eg SIMPLE CATCH IS MADE TO LOOK DIFFICULT IDENTIFY PRODUCTIVE ,NON VALUE ADD AND IDLE MOTIONS ELIMINATE NON PRODUCTIVE AND UNREQUIRED MOTIONS OR SIMPLIFY COMPLEX MOTIONS eg WEIGHT LIFTING REDESIGN EXISTING OPERATING PROCEDURE BY IMPROVING THE MOTIONS INVOLVED IN WORK TAKING INTO ACCOUNT THE ABOVE OBSERVATIONS IMPART REQUIRED INSTRUCTIONS AND TRAINING TO OPERATORS

PRINCIPLES GOVERNING USE OF HUMAN BODY

BOTH HANDS TO BE USED FOR PRODUCTIVE WORK eg SEVERAL PEOPLE TYPE ON PC USING ONLY FORE FINGER BOTH HANDS SHOULD START AND FINISH THEIR MOTIONS AT THE SAME TIME EXCEPT FOR REST PERIOD TWO HANDS SHOULD NOT BE IDLE AT ONE TIME MOTIONS SHOULD BE SYMETRICAL SIMULTANEOUS MOTIONS SHOULD GENERATE MINIMUM FATIGUE MOTIONS SHOULD BE INCREMENTALLY INCREASED / DECREASED OR POSITION

PRINCIPLES GOVERNING DESIGN OF WORKSTATIONS

DEFINITE AND FIXED PLACE FOR TOOLS AND MATERIAL NEED FOR LEFT HANDED TOOLS MATRL AND TOOLS TO BE LOCATED TO PERMIT BEST SEQUENCE OF MOTION GOOD ILLUMINATION AND VENTILATION AT WORKPLACE

PRIMARY OBJECTIVES OF MOTION STUDY

MAXIMIZE FINANCIAL ADVANTAGE THRU -LESS DIRECT LABOR EFFORT AND TIME -FEWER STEPS IN PROCESS -MORE PRODUCTIVE LABOR -LESS EQUIPMENT USAGE -LESS SPACE USAGE -LESS SCRAP GENERATED -LOWER OVERALL COSTS -LESSER IDLE TIME AND LESSER FATIGUE -FEWER HAZARDS IN OPERATIONS -

PLANT LAYOUTS

PLANT LOCATIONS
HISTORICALLY CERTAIN INDUSTRIES GREW IN CERTAIN AREAS DUE TO A NUMBER OF FACTORS PLANT LOCATIONS ARE PRIMARILY DECIDED BY PROXIMITY TO THE SOURCE OF RAW MATERIAL THOUGH NOT ANYMORE. OTHER FACTORS WHICH INFLUENCE THE CHOICE OF LOCATION INCLUDE -INFRASTRUCTURE AVAILABILITY -TRANSPORTATION FACILITY -AVAILABILITY OF SKILLED LABOUR AND RAW MATERIAL AND ECONOMICS OF COSTING eg HIGH LABOUR COSTS -AVAILABILITY OF POWER -PROXIMITY TO MARKETS BOTH INPUTS AND FINISHED GOODS - POLITICAL COMPULSIONS FINALLY CERTAIN TECHNICAL ISSUES MAY DETERMINE THE LOCATION SUCH AS

Facility Design
Facility layout: Arrangement of machines, storage areas, and/or work areas usually within the confines of a physical structure, such as a retail store, an office, a warehouse, or a manufacturing facility. Factors that influence layout
Volume, weight of items to be produced. Nature of the service to be provided. Cost of the building to house the operation. The product mix that must have a facility. The fragility of the product or component.

What Is Layout Planning

Layout planning is determining the best physical arrangement of resources within a facility Facility resource arrangement can significantly affect productivity Two broad categories of operations: Intermittent processing systems low volume of many different products Continuous processing systems high volume of a few standardized products

INTRODUCTION
Plant layout planning includes decisions regarding the physical allocation of the economic activity centers in a facility.

An economic activity center is any entity occupying space. The objective of plant layout planning is a more effective work flow at the facility, allowing workers and equipment being more productive.
Facility layout techniques apply to the case where several physical means have to be located in a certain area, either industrial processes or services. The objective of the chapter is not only Plant layout but re-layout also (most common situation for a company). To carry out an appropriate plant layout, its important to take into account the business strategic and tactical objectives

Example: space requirements/cost per m2 in Malls; accessibility/privacy in offices.

INTRODUCTION
To make a decision about layout planning, 4 different questions must have an answer:
Which centers do we have to consider? How much space and capacity is required for each center?
If there is not enough space, productivity may be reduced. Too much space is expensive and may also reduce productivity.

How must the space be configured at each center?

Space quantity, shape and the elements of the work center are related to each other.

Where should each center be located at within the facility?

The allocation of the different centers may affect productivity.

INTRODUCTION
The plant layout process starts at an aggregate level, taking into account the different departments. As soon as we get into the details, the different issues arise, and the original configuration may be changed through a feedback process. Most (if not all of them) layouts are designed properly for the initial conditions of the business, although as long as the company grows and has to be adapted to internal and external changes, a relayout is necessary.

INTRODUCTION
The reasons for a re-layout are based on 3 types of changes:
Changes in production volumes. Changes in processes and technology. Changes in the product.

The frequency of the re-layout will depend on the requirements of the process.

 Symptoms that allow us to detect the need for a re-layout:

Congestion and bad utilization of space. Excessive stock in process at the facility. Long distances in the work flow process. Simultaneous bottle necks and workstations with idle time. Qualified workers carrying out too many simple operations. Labor anxiety and discomfort. Accidents at the facility. Difficulty in controlling operations and personnel.

INTRODUCTION

A Good Layout ...

Reduces bottlenecks in moving people or material. Minimizes materials-handling costs and material in process Reduces hazards to personnel. Utilizes labor efficiently. Increases morale. Utilizes available space effectively and efficiently. Provides flexibility. Provides ease of supervision. Facilitates coordination and face-to-face communication where appropriate. Implements safety measures

Lay Out
Types of Plant Layout
Product Layout Process Layout Fixed Position Layout Cellular Layout

Layout for Services

Objectives of Plant Layout

These main objectives are reached through the attainment of the following facts:
Congestion reduction. Elimination of unnecessary occupied areas. Reduction of administrative and indirect work. Improvement on control and supervision. Better adjustment to changing conditions. Better utilization of the workforce, equipment and services. Reduction of material handling activities and stock in process. Reduction on parts and quality risks. Reduction on health risks and increase on workers safety. Moral and workers satisfaction increase. Reduction on delays and manufacturing time, as well as increase in production capacity.

All these factors will not be reached simultaneosly, so the best solution will be a balance among them.

Factors for a Plant Layout has to take into account a affecting Plant Layout The final solution
Materials Machinery Labor Material Handling Waiting Time Auxiliary Services The building Future Changes

balance among the characteristics and considerations of all factors affecting plant layout, in order to get the maximum advantages. The factors affecting plant layout can be grouped into 8 categories:

Factors affecting Plant Layout

The factors affecting plant layout can be grouped into 8 categories:
Materials
The layout of the productive equipment will depend on the characteristics of the product to be managed at the facility, as well as the different parts and materials to work on. Main factors to be considered: size, shape, volume, weight, and the physical-chemical characteristics, since they influence the manufacturing methods and storage and material handling processes. The sequence and order of the operations will affect plant layout as well, taking into account the variety and quantity to produce.

Factors affecting Plant Layout

The factors affecting plant layout can be grouped into 8 categories:
Machinery
Having information about the processes, machinery, tools and necessary equipment, as well as their use and requirements is essential to design a correct layout. The methods and time studies to improve the processes are closely linked to the plant layout. Regarding machinery, we have to consider the type, total available for each type, as well as type and quantity of tools and equipment. Its essential as well to know about space required, shape, height, weight, quantity and type of workers required, risks for the personnel, requirements of auxiliary services, etc.

Factors affecting Plant Layout

The factors affecting plant layout can be grouped into 8 categories:
Labor
Labor has to be organized in the production process (direct labor, supervision and auxiliary services). Environment considerations: employees safety, light conditions, ventilation, temperature, noise, etc. Process considerations: personnel qualifications, flexibility, number of workers required at a given time as well as the type of work to be performed by them.

Material Handling
Material handling does not add value to the product; its just waste. Objective: Minimize material handling as well as combining with other operations when possible, eliminating unnecessary and costly movements.

Factors affecting Plant Layout

The factors affecting plant layout can be grouped into 8 categories:
Waiting time - Stock
Objective: Continuous Material Flow through the facility, avoiding the cost of waiting time and demurrages that happen when the flow stops. On the other hand, the material waiting to flow through the facility not always represents a cost to avoid. As stock sometimes provides safety to protect production, improving customer service, allowing more economic batches, etc.
Its necessary then to consider space for the required stock at the facility when designing the layout.

Resting time to cool down or heating up

Factors affecting Plant Layout

The factors affecting plant layout can be grouped into 8 categories:
Auxiliary Services
Support the main production activities at the plant:
Related to labor: Accessibility paths, fire protection installations, supervision, safety, etc. Related to material: quality control. Related to machinery: maintenance and electrical and water lines.

The auxiliary services represent around 30% of the space at a facility. The space dedicated to auxiliary services is usually considered as waste.
Its important to have efficient services to insure that their indirect costs have been minimized.

Types of normally determines the type of Plant Layout The production process
plant layout to be applied to the facility:
Fixed position plant layout

Product stays and resources move to it.

Product oriented plant layout

Machinery and Materials are placed following the product path.

Process oriented plant layout (Functional Layout).

Machinery is placed according to what they do and materials go to them.

Cell Layout

Hybrid Layout that tries to take advantage of different layouts types.

Product Layout

Product A Product B Product C

Step 1

Step 2

Step 3 Step 4

Step 1

Step 2 Step 3

Step 4

Step 1

Step 2 Step 3 Step 4

7-14

Product Layout
This type of plant layout is useful when the production process is organized in a continuous or repetitive way.
Continuous flow: The correct operations flow is reached through the layout design and the equipment and machinery specifications. Repetitive flow (assembly line): The correct operations flow will be based in a line balancing exercise, in order to avoid problems generated by bottle necks.

The plant layout will be based in allocating a machine as close as possible to the next one in line, in the correct sequence to manufacture the product.

Traditional Process Layout

Process Layout
Process oriented plant layout (Functional Layout)
This type of plant layout is useful when the production process is organized in batches. Personnel and equipment to perform the same function are allocated in the same area. The different items have to move from one area to another one, according to the sequence of operations previously established. The variety of products to produce will lead to a diversity of flows through the facility. The variations in the production volumes from one period to the next one (short periods of time) may lead to modifications in the manufactured quantities as well as the types of products to be produced.

Process Layout
Grouping together of machines and/or workers doing similar tasks. Applicable to both manufacturing and non manufacturing operations. Advantages
Flexibility: equipment and personnel can be used where they are needed. Smaller investment in equipment: duplication is not necessary unless volume is large. Expertise: supervisors for each department become highly. knowledgeable about their functions Diversity of tasks: changing work assignments make work more satisfying for people who prefer variety.
442

Fixed-Position Layout
Used when product is large Product is difficult or impossible to move, i.e. very large or fixed All resources must be brought to the site Scheduling of crews and resources is a challenge

 Work cells
Definition:

Cellular Layout

Group of equipment and workers that perform a sequence of operations over multiple units of an item or family of items.

Looks for the advantages of product and process layouts:

Product oriented layout: Efficiency Process oriented layout: Flexibility

Group Technology
Grouping outputs with the same characteristics to families, and assigning groups of machines and workers for the production of each family.

Cellular Layout
Process (Functional) Layout Group (Cellular) Layout

T T M M

T T M M

T T D D

CG SG D D

A cluster CG or cell T
SG D SG D M D

T M D CG

T T M CG SG M D D

Similar resources placed together

Resources to produce similar products placed together

MATERIAL HANDLING

Material Handling
Material handling is the function of moving the right material to the right place in the right time, in the right amount, in sequence, and in the right condition to minimize production cost.

Material Handling
Right Definition
Material handling uses the right method to provide the right amount of the right material at the right place, at the right time, in the right sequence, in the right position, in the right condition, and at the right cost.
This is a relatively broad definition of material handling.

Material handling can represent between 1030% of manufacturing cost

MATERIAL HANDLING
Objectives
A. Reduce Unit Material Handling Cost p Eliminate Unnecessary Handling p Handle Material in Batch Lots p Minimize Required Handling Time p Replace Handling Equipment as Appropriate Increase efficiency B. Reduce Production Time p Minimize Delays of Machine Operations p Maintain Uniform, Appropriate Movement of Material p Use Automatic Processing When Appropriate C. Reduce Overhead p Minimize Non-Productive Labor p Prevent Damage to Materials p Coordinate All Material Handling Systems D. Conserve Floor Space p Avoid Excessive Stock Storage p Move Materials in a Position to Save Space p Use Equipment Requiring No Floor Space E. Prevent Accidents p Reduce Physical Load Required p Insure Handling Equipment is Safe F. Improve Employee Morale p Provide Proper Relationship Between Employee & Work

HIDDEN COSTS OF MATERIAL HANDLING

40-75% OF INDUSTRIAL ACCIDENTS ARE DUE TO MATRL HANDLING eg RAYMOND FACTORY AT YAVATMAL 25-80% OF TOTAL LABOUR COST INCURRED ON A/C HANDLING 50-70% TOTAL MFG CYCLE TIME SPENT IN HANDLING 15-25% MATRL DAMAGE DUE TO MATRL HANDLING eg DROPPING OF DISK DRIVE CASE AT PALAM APT OVERALL PLANT PRODUCTIVITY CAN BE IMPROVED BY 1520% BECAUSE OF EFFICIENT MATRL HANDLING

MECHANIZATION OF MATERIAL HANDLING

MECHANIZATION IS REPLACEMENT OF HUMAN POWER WITH MECHANICAL POWER BUT GENERALLY CONTROLLED BY MAN MECHANIZED MATRL HANDLING SYSTEMS USE ELECTRICAL POWER

Overview of Material Handling Equipment

Material handling equipment includes:
Transport Equipment: industrial trucks, Automated Guided vehicles (AGVs), monorails, conveyors, cranes and hoists. Storage Systems: bulk storage, rack systems, shelving and bins, drawer storage, automated storage systems. Unitizing Equipment: palletizers Identification and Tracking systems

Material Handling System Equation

Why?

What?

Where?

When?

How?

Who?

Which?

Materials +

Moves

Methods

Preferred System

Material Handling System Alternatives

MH Performance

Support efficient production operations Throughput Response time Cost Space and cube utilization Flexibility Expandability

Basic types of Material Handling Equipment

Conveyors Lifts Chutes Cranes & Hoists Trucks Auxiliary equipment Containers and supports Automated Storage/Retrieval Systems

ADVANTAGES OF MECHANIZED SYSTEMS

LOW OPERATING OCST FOR HANDLING LARGE VOLUMES OF MATERIAL COMPARED TO MANUAL SYSTEMS REDUCES TOTAL PRODUCTION TIME REDUCES WAIT TIME OF MATERIAL AT WORKSTATIONS HELPS IN REDUCING IN PROCESS INVENTORY HELPS IN REDUCING TOTAL PRODUCTION COSTS AND MATERIAL HANDLING COSTS REDUCES DAMAGE AND MATERIAL WASTE SIMPLIFIES MATERIAL FLOW

ADVANTAGES OF MECHANIZED SYSTEMS

INCREASED MATRL HANDLING CAPACITY INCREASED PRODUCTIVITY REDUCED LEAD TIME INCREASED UTILIZATION OF M/C AND LABOUR REDUCED IN PROCESS INVENTORY REDUCED UNIT HANDLING COSTS

DISADVANTAGES OF MECHANIZED SYSTEMS

HIGH COST OF EQUIPMENT LOSS OF PRODUCTION WHEN EQUIPMENT DOWN HIGH COST OF BREAKDOWN REPAIRS SYSTEM TAILORED TO SPECIFIC PLANT LAYOUT AND CANNOT BE MODIFIED PROPER TRAINING FOR EMPLOYEES REQUIRED eg FORK LIFT HIGHER MAINTENANCE SKILLS

WAGE INCENTIVES

Defining & Understanding Wage Incentives

According to the Commission on Labour, wage incentives are : Extra financial motivations designed to stimulate human effort by rewarding the person, over and above the time rated remuneration, for improvements in the present or targeted results. According to Hummel and Nickerson: It refers to all the plans that provide extra pay for extra performance in addition to regular wages for a job Florence observes: It refers to increased willingness as distinguished from capacity. Incentives do not create but only aim to increase the national momentum towards productivity.

DEFINITION OF WAGE INCENTIVE

INCENTIVE OR REWARD IS ANYTHING THAT ATTRACTS PEOPLES ATTENTION AND STIMULATES HIM TO WORK IT IS A PAYMENT PLAN RELATED DIRECTLY TO OUTPUT WITH A QUALITY RIDER WAGE INCENTIVE IS AN EXTRA FINANCIAL MOTIVATION DESIGNED TO STIMULATE HUMAN EFFORT BY REWARDING THE PERSON OVER THE AND ABOVE TIME/PIECE RATED WAGES OBJECTIVES OF INCENTIVE PLANS ARE -TO IMPROVE PROFIT OF FIRM THRU REDUCTION IN UNIT COST OF LABOR -AVOID OR MINIMIZE ADDITIONAL CAPITAL INVESTMENT FOR EXPANSION OF PRODUCTION CAPACITY -INCREASE WORKERS EARNINGS WITHOUT INCREASING WAGE STRUCTURE -SECURE BETTER MANPOWER UTILIZATION INCENTIVES ARE PIECE BASED OR QUALITY BASED

Objectives of Wage Incentives

To improve the profit of a firm through a reduction in the unit costs of labour and materials or both; Enhance motivational level of employees thru gains due to enhanced productivity Increase productivity quality and reduce costs To avoid or minimize additional capital investment for the expansion of production capacity; To increase a worker s earnings without dragging the firm into a higher wage rate structure regardless of productivity; To use wage incentives as a useful tool for securing a better utilization of manpower, better production scheduling and performance control, and a more effective personnel policy.

TYPES OF INCENTIVES
NON FINANCIAL -IMPROVED WORKING CONDITIONS -INCREASED INFRA STRUCTURE FOR LEISURE - FLEXI TIMINGS -WORK FROM HOME SCHEMES -RECOGNITION AWARDS

TYPES OF INCENTIVES
SEMI FINANCIAL -SUBSIDIZED MEALS -CLUB MEMBERSHIPS -EXPENSE PAID ENTERTAINMENT -EXPENSE PAID INCENTIVE FOREIGN TRIPS WITH FAMILY -MEDICAL FACILITIES FOR FAMILY -SCHOOL ADMISSION FOR CHILDREN

TYPES OF INCENTIVES
FINANCIAL -PROMOTIONS -INCREMENTS -PRODUCTIVITY LINKED WAGES -GAIN SHARE -YEARLY BONUS

Examples of Payments or Benefits which are not Incentives

Most mandated benefits such as unemployment insurance, workers compensation Non - mandated benefits that do not fluctuate, such as housing Wage increases, vacation, or rewards that, once earned, are seldom lost Pay tied to time worked (except for bonuses for attendance, difficult shifts, and likewise).

Key considerations for an incentive program

The incentive is not a substitute for wages but an addition to a fair and equitable wage. It should be large enough to provide a proper incentive. As a rule, it should average 15 to 20 percent of the base wage. The incentive should be based on performance levels that are observable, measurable, and controllable by the employee. The objective of the incentive is to motivate employees to improve their performance level. Incentive payment should be paid promptly and regularly. The incentive plan should be reviewed regularly and modified as the employee gains skills or is assigned new duties and responsibilities.

Key considerations for an incentive program

Standards for work performance or norms of production should be decided on the basis of work measurement techniques Incentive scheme must be easy to understand and compute Scheme should be fair and should cover as large a base as possible eg if a software company salesman gets an incentive trip abroad what about the pre sales support team which made the sale possible Management should pay all allowances and incentives within the time specified unlike Air India Incentives do not replace wage hikes eg an increased ex gratia payment cannot replace a promotion or increment Incentives should be linked to quantity as well as quality Incentive schemes may be negotiated through labour agreements

JOB EVALUATION

DEFINITION OF JOB EVALUATION

SALARIES AND WAGES ARE ISSUES OF CONCERN FOR EMPLOYER AND EMPLOYEE EMPLOYER WANTS TO ESTABLISH FAIR AND EQUITABLE PAY STRUCTURE JOB EVALUATION IS A TECHNIQUE WHICH DETERMINES THE WORTH OF A JOB AND IN TURN ENABLES THE ESTABLISHMENT OF A SALARY HIERARCHY IT IS ALSO AN ATTEMPT TO DETERMINE AND COMPARE THE DEMANDS WHICH THE NORMAL PERFORMANCE OF A PARTICULAR JOB MAKES ON NORMAL WORKERS WITHOUT TAKING INTO ACCOUNT INDIVIDUAL ABILITIES OR PERFORMANCE OF CONCERNED WORKERS JOB EVALUATION IS DIRECTED TOWARDS RATING THE JOB INVOLVES JOB DESCRIPTION AND JOB ANALYSIS INVOLVES ANALYSIS OF TIME SPENT ON JOB BY PERSON

DESCRIPTION OF JOB EVALUATION

JOB EVALUATION IS THE PROCESS OF ANALYSIS AND ASSESSMENT OF JOBS AND TASKS PERFORMED TO ASCERTAIN THEIR WORTH WHILE DECIDING COMPENSATION TO BE PAID IN RETURN FOR EFFORTS PUT IN IT IS THE RATING OF JOBS TO DETERMINE THE POSITION ON A JOB HIERARCHY

OBJECTIVES OF JOB EVALUATION

SECURE AND MAINTAIN COMPLETE ACCURATE AND IMPERSONAL DESCRIPTION OF EACH DISTINCT JOB PROVIDE PROCEDURE FOR DETERMINING RELATIVE WORTH OF EACH JOB AND DECIDING WAGE STRUCTURE DETERMINING RATE OF PAY FOR EACH JOB REMOVE INEQUALITY IN WAGE STRUCTURE AND OFFER COMPARITIVE OR HIGHER WAGES PROVIDES CLEAN BASIS FOR COLLECTIVE BARGAINING ON WAGE STRUCTURE

JOB ANALYSIS
BASIC PROCEDURE USED TO DEFINE DUTIES , RESPONSIBILITIES AND ACCOUNTABILITY OF A JOB. IT INVOLVES -DETAILED DESCRIPTION OF JOB AND CAPABILITY IN VARIOUS ATTRIBUTES WHICH GO TOWARDS MAKING THE JOB DESCRIPTION SUCCESSFUL -DETERMINING DEPENDENCY AND RELATIONSHIP OF JOB WITH OTHER JOBS IN THE ORG -EXAMINING KNOWLEDGE QUALIFICATION FOR THE JOB

JOB ANALYSIS
JOB ANALYSIS IS A PROCESS THRU WHICH JOB DESCRIPTION AND JOB SPECS ARE DETERMINED AND EVALUATION IS PERFORMED JOB DESCRIPTION IS A DESCRIPTION OF THE JOB CONTENT ENVIRONMENT AND CONDITIONS OF WORK.IT SHOULD CLEARLY DEMARCATE THE BOUNDARIES OF AUTHORITY AND RESPONSIBILITY JOB SPECIFICATION STATES THE MINIMUM ACCEPTABLE PERSONAL PROFILE IN TERMS OF SKILLS ,KNOWLEDGE ,EXPERIENCE AND CAPABILITIES. IT IS A TECHNIQUE THAT SYSTEMATICALLY DETERMINES THE RELATIVE WORTH OF JOBS IN RELATION TO OTHER JOBS IN THE ORG

JOB ANALYSIS
JOB ENRICHMENT IS INCREASING DEPTH OF A JOB SO THAT EMPLOYEES EXPERIENCE GREATER JOB AUTONOMY THRU MPLOYEE EMPOWEMENT AND HENCE ALSO TEND TO GET MORE INVOLVED IN THEIR JOBS JOB INVOLVEMENT IS THE DEGREE TO WHICH EMPLOYEES INVOLVE THEMSELVES IN THE JOB AND INVEST TIME AND ENERGY AND VIEW WORK AS A CENTRAL PART OF THEIR LIFE

LIMITATIONS OF JOB EVALUATION

AT TIMES VERY COMPLICATED AND UNLESS APPRAISER KNOWS THE INS AND OUTS OF THE PROCESS,IT MAY BE POSSIBLE THAT HE UNDER/OVER ESTIMATES THE COMPLEXITY OPPOSITION BY TRADE UNIONS

TOTAL EMPLOYEE INVOLVEMENT AND EMPOWERMENT

TOTAL EMPLOYEE INVOLVEMENT

EMPLOYEE INVOLVEMENT IS A MATTER OF ASKING PEOPLES OPINION BEFORE MAKING DECISIONS THAT AFFECT THEM EMPLOYEE INVOLVEMENT INVOLVES FORMING GROUPS LIKE QLTY CIRCLE,TPM CIRCLE ETC ALL EMPLOYEES ENCOURAGED TO GIVE CREATIVE AND INNOVATIVE SOLUTIONS (KAIZENS) DEVELOPING MUTUAL TRUST RESPECT BETWEEN EMPLOYER AND EMPLOYEE-EMPL PARTICIPATION IN MGT INVOLVES GIVING OWNERSHIP OF QLTY TO WORKERS ,LISTENING TO THEIR IDEAS AND EMPOWERING THEM TO MAKE MORE DECISIONS IN THE BETTERMENT OF QLTY CONFLICT SITUATIONS TACKLED DIRECTLY CROSS FUNCTIONAL TRAINING AND GREATER CUSTOMER FOCUS EMPHASISE IMPORTANCE OF QLTY IN COMPANY ADVANTAGE BASE INCENTIVES ON QLTY RATHER THAN QUANTITY TEI = LEADERSHIP + TEAM + EMPOWERMENT + COMMITMENT + COMMUNICATION + CONSENSUS

TOTAL EMPLOYEE INVOLVEMENT

VOLUNTARY INVOLVEMENT TEI IS A STRATEGIC LING TERM STRATEGY TEI A MUST FOR CUSTOMER SATISFACTION

REQUIREMENTS OF TOTAL EMPLOYEE INVOLVEMENT

SYNERGY ACROSS THE ORGANISATION WITH EMPL AND SUPPLIERS ALIGNED WITH ORG MISSION AND VALUES EMPLOYEES AND SUPPLIERS KNOW THE CUSTOMER NEEDS AND WANTS AND ARE AWARE OF THEIR ROLE ORG STRATEGIES GOALS AND PLANS ARE THE OUTCOME OF TOTAL INVOLVEMENT OF ALL STAKEHOLDERS CRITICAL ELEMENT IS EMPOWERMENT PROCESS OWNERSHIP BY EVERYBODY AVAILABILITY OF INFORMATION AND KNOWLEDGE MOTIVATION OF EMPLOYEES AND RECOGNITION OF THEIR KNOWLEDGE MINIMISATION OF WASTE TRANSPARANCY IN SHARING IDEAS CONTINUOUS IMPROVEMENT IS A LONG TERM STRATEGY MUTUAL TRUST BETWEEN EMPLOYERS AND EMPLOYEES GROUP ACTIVITIES PART OF WORK CULTURE PERFORMANCE MEASURES BASED ON QLTY AND QTY

PRIMARY OUTCOMES OF TEI

CONFORMANCE OF INFORMATION ACCEPTANCE OF ROLES AND RESPONSIBILITIES CONTRIBUTION IN PROBLEM SOLVING COMMITMENT TO SOLVING PROBLEMS COOPERATION BETWEEN GROUPS TO RESOLVE PROBLEMS INVOLVEMENT AT PLACE OF WORK IN ISSUES RELATED TO THE WORKPLACE ACCOUNTABILITY OF ACTIONS AT WORKPLACE WITH LEAST SUPERVISION OWNERSHIP IN RUNNING WORKPLACE AND RESPONSIBILITY FOR TARGETS,QLTY,CLEANLINESS AND SAFETY

EMPOWERMENT
EMPOWERMENT MEANS GIVING POWER TO LINE LEVEL PEOPLE TO DO WHAT IS REQD TO SATISFY CUSTOMERS AND TRUSTING THE JUDGEMENT OF EMPLOYEES NATURAL EXTENSION OF EMPLOYEE INVOLVEMENT INVOLVES WORKERS PARTICIPATION IN DECISION MAKING EMPOWERMENT ADVOCATED BY DEMING OBJECTIVE OF EMPOWERMENT IS TO TAP THE INTELLECTUAL ENERGY OF ALL EMPLOYEES

IMPORTANCE OF EMPOWERMENT
EMPLOYEES FEEL THEY ARE GIVEN THE OPPORTUNITY TO TAKE DECISIONS AND HENCE IDENTIFY CLOSER WITH THE COMPANY THEY BELIEVE THEIR OPINIONS COUNT THEY GET COMMITED TO QUALITY THEY CONNECT THEIR WORK TO THE COMPANYS GOALS,MISSION AND VISION

HOW TO EMPOWER EMPLOYEES

PROVIDE A CLEAR ROLE FOR EACH EMPLOYEE PROVIDE ADEQUATE TRAINING AND EMPOWERMENT SHOULD INCLUDE RESPONSIBILITY AND AUTHORITY ALLOW CREATIVITY AND INNOVATION ALLOW PEOPLE TO EXERCISE THEIR JUDGEMENT WITHOUT FEAR ENCOURAGE CONTINUOUS LEARNING AND IMPROVEMENT RECOGNISE GOOD WORK DONE

FAILURE OF EMPOWERMENT
EMPOWERMENT IS USED AS A TOOL TO MAKE WORKERS VULNERABLE USED AS A MANIPULATIVE TOOL TO CRITICISE AND VICTIMISE MANAGERWS ABDICATE RESPONSIBILITY AND BLAME OTHERS FOR FAILURE NO FEEDBACK CONTROL SYSTEM

7 BASIC SQC TOOLS

The Basic Quality Control Tools

Seven Basic Quality Control (QC) Tools -CHECK SHEETS -HISTOGRAMS -PARETO ANALYSIS -SCATTER DIAGRAMS -RUN CHARTS -PROCESS FLOWCHART -CAUSE AND EFFECT ANALYSIS

Seven Tools for TQM

488

CHECK SHEETS

SIMPLE TOOLS FOR DATA COLLECTION DATA SHEETS USE COLUMNAR FORMS TO RECORD DATA

Checklist
Simple data check-off sheet designed to identify type of quality problems at each work station; per shift, per machine, per operator

490

Checksheet for Recording Complaints

Checksheet for Group Sizes in a Restaurant

HISTOGRAM
GRAPHICALLY SHOWS FREQUENCY OR NUMBER OF OBSERVATIONS OF A VARIABLE RANGE OF HORIZONTAL SCALE SHOULD EXTEND OVER THE FULL RANGE OF ACTUAL OBSERVED VALUES INTERVALS MUST BE OF EQUAL WIDTH THERE MUST NOT BE TOO MANY OR TOO FEW INTERVALS HISTOGRAMS DO NOT SUGGEST CAUSES OF VARIATION NOR DO THEY SHOW DATA VARIATION OVER TIME DATA SHOULD BE INDICATIVE OF TYPICAL PROCESS CONDITIONS AND LARGE ENOUGH TO PROVIDE GOOD CONCLUSIONS

Histograms
A chart that shows the frequency distribution of observed values of a variable like service time at a bank drive-up window Displays whether the distribution is symmetrical (normal) or skewed

Wiley 2007

494

Bar Chart of Daily Units Produced

PARETO ANALYSIS

PARETO DISTRIBUTION IS ONE IN WHICH THE CHARACTERISTICS OBSERVED ARE ORDERED FROM LARGEST FREQUENCY TO SMALLEST OFTEN USED TO ANALYSE DATA COLLECTED IN CHECK SHEETS

Pareto Analysis
Technique that displays the degree of importance for each element Named after the 19th century Italian economist Often called the 80-20 Rule Principle is that quality problems are the result of only a few problems e.g. 80% of the problems caused by 20% of causes

Wiley 2007

497

Pareto Analysis of Defects (Total Defects = 75) 100% 97%

70 60 50 40 30 20 10 0
Scratches Porosity Nicks Contamination Misc.

88% 54 72%

93%

100% 80% 60% 40%

Frequency (Number)

12 5 4 2

20% 0%

72%

16% 5% 4% Causes, by percent total defects

3%

498

Cumulative Percent

SCATTER DIAGRAM

GRAPHICAL COMPONENTS OF REGRESSION ANALYSIS POINT TO IMPORTANT RELATIONSHIPS BETWEEN VARIABLES

Scatter Diagrams
A graph that shows how two variables are related to one another Data can be used in a regression analysis to establish equation for the relationship

Wiley 2007

500

Scatterplot of Customer Satisfaction and Waiting Time in an Upscale Restaurant

RUN CHART
SHOWS RESULT OF INSPECTION TAKEN AT PRESCRIBED INTERVALS LINE GRAPH WHERE DATA PLOTTED AGAINST TIME RESULTS ARE PLOTTED AGAINST TIME TO SEE IF EXCESSIVE RESULTS OR PATTERNS EXIST CONSTRUCTING CHART INVOLVES FOLLOWING STEPS: -COLLECT DATA -EXAMINE RANGE OF DATA -PLOT POINTS ON CHART AND CONNECT THEM -COMPUTE AVERAGE OF ALL PLOTTED POINTS AND DRAW AS A HORIZONTAL LINE THROUGH DATA

Process Chart
Shows sequence of events in process Depicts activity relationships Has many uses
Identify data collection points Find problem sources Identify places for improvement Identify where travel distances can be reduced
503

PROCESS FLOWCHART

USED TO HELP ANALYSE A PROCESS OR PIN POINT A PROBLEMBY SEQUENTIALLY SHOWING RELEVANT STEPS IN A PROCESS AND HOW THEY ARE INTER RELATED ALL ACTIVITIES MUST BE SHOWN INCLUDING NON VALUE ADD

Process Chart Example

SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol   75  Description

D Write order D On desk D To buyer

  D Examine  = Operation; = Transport; = Inspect; D = Delay; = Storage

505

Cause and Effect Diagram Example

Method Drill Slow Wood Steel Material Machinery Old Lathe Manpower Tired Overtime Too many defects

506

Cause-and-Effect Diagrams
Called Fishbone Diagram Focused on solving identified quality problem

507

Cause-and-Effect Diagram for Manufacturing

Exhibit S6.8

Cause-and-Effect Diagram for Service

A Framework for Applying Different Quality Control Tools

QUALITY CIRCLES

QUALITY CIRCLE
PARTICIPATORY MGT PROCESS IN WHICH A SMALL GROUP OF PEOPLE AT GRASS ROOT LEVEL ARE INVOLVED QC IS A QLTY,PRODUCTIVITY,SAFETY IMPROVEMENT TECHNIQUE QC IS A HRD AND A PROBLEM SOLVING TECHNIQUE AND IS BASED ON THE FACT THAT SUGGESTIONS AFFECTING WORKPLACE SHOULD BEST COME FROM PEOPLE WHO WORK THERE QC IS A GROUP OF PEOPLE FROM DIFFERENT WORK AREAS WHO MEET ON A REGULAR BASIS FOR RESOLVING PROBLEMS RELATED TO QLTY , PRODUCTIVITY, COST REDUCTION,SAFETY,CUSTOMER SERVICE QC IDENTIFIES PROBLEMS OR OPPORTUNITIES FOR FURTHER IMPROVEMENT THRU ANALYSIS OF DATA RELATED TO WORK PEOPLE EXPERIENCE AUTONOMY AT PLACE OF WORK AND CONTROL DECISIONS THAT AFFECT THEM

Quality Circle
Presentation
Implementation Monitoring

Organization
8-10 members Same area Supervisor/moderator

Training
Group processes Data collection Problem analysis

Solution
Problem results

Problem Identification
List alternatives Consensus Brainstorming

Problem Analysis
Cause and effect Data collection and analysis

CHARACTERISTICS OF QC
SMALL GROUPS FORMED IN WORKPLACE WITH MEMBERSHIP BEING VOLUNTARY MEMBERS TRAINED IN PROVBLEM SOLVING TECHNIQUES ENABLES MEMBERS TO USE HIDDEN TALENTS,SKILLS ENHANCES JOB SATISFACTION THRU CHALLENGES FACED BY WORKERS QC EFFORTS RECOGNISED BY MGT MINIMISES BOREDOM IN WORKPLACE

OBJECTIVES OF QC
IMPROVE QLTY AND PRODUCTIVITY THUS CONTRIBUTING TO IMPROVING AND DEVELOPING ERNTERPRISE REDUCE COSTS OF PRODUCTS BY WASTE REDUCTION,SAFETY,EFFECTIVE UTILIZATION OF RESOURCES,MINIMIZING DEFECTS AND ELIMINATING NON VALUE ADDED ACTIVITIES IDENTIFY AND SOLVE WORK RELATED PROBLEMS MAXIMIZE CREATIVE INTELLIGENCE OF PEOPLE DEVELOP INDIVISUALS AND ASSISTANCE IN SELF ACTUALIZATION INCREASE EMPLOYEE COMMITMENT AND LOYALTY SHARING OF IDEAS AND EXPERTISE

QC OPERATION CYCLE
BASIC PURPOSE OF QC IS TO IDENTIFY AND SOLVE WORK RELATED PROBLEMS EACH PROBLEM PASSES THRU STAGES SUCH AS: -IDENTIFICASTION SELECTION ANALYSIS -IDENTIFICATION OF SOLUTION WITH ALTERNATIVES -EVALUATION OF RISKS AND PROBABILITY -SELECTION OF SOLUTION -PREPARE ACTION PLANS WITH DESIRED OUTCOMES AND RETURNS -PREPARE BUDGETS FOR RESOURCES DURING IMPL -ALLOCATE RESOURCES TO PROJECT -IMPLEMENTATION,REVIEW AND FOLLOW UP

QC METHODOLOGY
WORKER PARTICIPATION IN QC ON VOLUNTARY BASIS FACILITATORS PROVIDED TO ASSIST TEAMS TRG PROVIDED FOR SUPERVISORS AND TEAM MEMBERS PROJECTS INITIATED BY ALL MEMBERS QC ISSUES CHOSEN BY MEMBERS

STRUCTURE OF QC
STEERING COMMITTEE WHICH INCLUDES TOP MGT(CEO,VP,GM,HOD) COORDINATORS(I/F BETWEEN TOP MGT AND LINE OPERATORS) FACILITATORS(SHIFT MGR) CIRCLE LEADERS(SR.FOREMAN) CIRCLE MEMBERS(LINE LEVEL WORKERS) INVITEES AND NON MEMBERS

QC AND EMPLOYEE EMPOWERMENT

EMPLOYEES UNDERSTAND WHAT IS REQD OF THEM TOOLS REQD FOR EXECUTION OF A JOB ARE AVAILABLE TO EMPLOYEES PEOPLE KNOW THE GOALS AND CRITICAL SUCCESS FACTORS

QC IN ASHOK LEYLAND
SELECTION OF PROBLEM WITH MATERIAL LOSS IN WKSHOP QC FORMED TO SOLVE PROBLEM AND MINIMIZE MATRL WASTAGE AND CONSUMPTION FIGURES RELATED TO LOSSES BEFORE/AFTER QC IMPL BEFORE IMPL AFTER IMPL EXP CONS YRLY 105KG 105KG ACTUAL CONS YRLY 210KG 165KG LOSS KG 105KG 60KG LOSS RS 1.785LACS RS 1.02 LAC RS

QC IN ASHOK LEYLAND
USING QC CAUSES RELATED TO MAN,M/C,MATRL,METHOD DETECTED CAUSES RELATED TO MAN :-LACK OF KNOWLEDGE OF MATRL IMPROPER WK INSTR -EXCESS OPER LACK OF KNOWLEDGE OF OPS/TOOLS CAUSES RELATED TO MACHINES -SUB OPTIMUM CONDITIONS FRICTIONAL WEAR OF PARTS MISALIGNMENT OF PARTS CAUSES DUE TO METHODS -IMPROPER MATRL HANDLING/STORAGE -LACK OF PROPER STD OPER INSTR CAUSES RELATED TO MATERIALS -IMPROPER SPECS TO SUPPLIERS INADEQUATE INSP METHODS REASONWISE % ATTRIBUTABLE FOR LOSS -MAN 35.7% -M/C 28.6% -METHODA 21.4% -MATERIAL 14.3%

OBSERVATIONS POST QC IN ASHOK LEYLAND

IMPROVED INTER PERSONAL RELATIONSHIP AND TEAMWORK ENHANCEMENT OF KNOWLEDGE BASE IN WORKERS MINIMIZED MATERIAL WASTAGE RESULTING IN MONETARY GAINS

BENEFITS OF QC IN BHEL
PERIODIC MEETING OF SHOP FLOOR WORKERS TO SOLVE THEIR WORK RELATED PROBLEMS AND DEVELOP MUTUAL TRUST AND COOPERATION BETWEEN MGT AND WORKERS AND INVOLVES WORKERS IN DECISION MAKING PROCESS IN THEIR AREAS QC LEADS TO ENHANCED PRODUCTIVITY DEVELOPS KNOWLEDGE MGT CULTURE AND PEER KNOWLEDGE IS SHARED

BENEFITS OF QC IN BHEL
QC EFFORTS IMPROVES QLTY OF PRODUCTS AND SERVICES TO CUSTOMER PRODUCTIVITY IMPROVEMENT RESULTS IN REDUCED TIME TO DELIVER AND REDUCED MFG COSTS ENSURES BETTER HOUSE KEEPING QC INCREASES PROFITABILITY BY REDUCTION OF WASTE ENRICHED QLTY OF WORK LIFE BETTER INTER PERSONAL COMMN

QC IN TOYOTA
WIDE USAGE OF QC MEETING ONCE A WEEK FOR 1 HR PEOPLE ENCOURAGED TO GIVE SUGGESTIONS PRINCIPLE OF KAIZEN FOLLOWED PROBLEMS ADDRESSED INCLUDE SAFETY,COST REDN,QLTY,PRODUCTIVITY,EQPT PERFORMANCE CERTAIN AREAS ARE OFF LIMIT EG WAGES,COMPANY OPERATING PRINCIPLES,HR POLICIES,SUPPLIER SELECTION,SALES AND MKTNG POLICIES AND PERSONALITIES HOWEVER PRIVATE SUGGESTIONS IN ABOVE AREAS COULD BE OFFERRED AS KAIZEN CREATION OF ANGER VENTING ROOM

ERGONOMICS

ERGONOMICS
 The word Ergonomics comes from the Greek words Ergos--(work) and Namos-- (natural law).

DEFINITION OF ERGONOMICS
APPLICATION OF THE HUMAN BIOLOGICAL SCIENCES IN CONJUNCTION WITH ENGG SCIENCES TO THE WORKER AND HIS WORKING ENVT TO OBTAIN MAX SATISFACTION FOR WORKER AND ENHANCE PRODUCTIVITY OBJECTIVE IS TO ENSURE WORKER SATISFACTION AND ENHANCE PRODUCTIVITY ERGONOMICS ACHIEVES THE ABOVE BY STUDY OF CONDITIONS IN WHICH PEOPLE WORK EFFECTIVELY AND COMFORTABLY IT ENTAILS MAKING WORKING CONDITION SYNERGETICAL TO HUMAN ACTIVITIES THEREBY IMPROVING HUMAN PRODUCTIVITY eg

DEFINITION OF ERGONOMICS
ALSO CALLED HUMAN ENGINEERING DEFINED AS THE SCIENTIFIC STUDY OF RELATIONSHIP BETWEEN MAN AND HIS WORKING ENVIRONMENT ERGONOMICS IMPLIES FITTING THE JOB TO THE WORKER COMBINES THE KNOWLEDGE OF PSYCHOLOGIST ANATOMIST AND BIO METRICIAN

ERGONOMICS
Definition:
u Ergonomics is an interdisciplinary approach

toward adapting the manmade environment around man, rather than man around the environment.

ERGONOMICS
Definition:
u Ergonomics is the study of how human beings relate to their work environment. The result of ergonomics is the adaptation of the workstation design and work tools to suit the individual performing a particular job function. The application of ergonomic principles to workstation design can result in increased effectiveness, work quality, health and safety, and job satisfaction.

SCOPE OF ERGONOMICS
SUGGEST BEST WAY OF USING HUMAN BODY THRU METHOD STUDY SUGGEST BEST WAY OF ARRANGING WORKPLACE SUGGEST THE BEST DESIGN OF TOOLS AND EQUIPMENT

OBJECTIVES
Provide basic training regarding the identification, evaluation, and control of ergonomic exposures and hazards. This will include: The role of ergonomics Ergonomics-related injuries and their causes Proper workstation arrangement Controlling ergonomic hazards

OBJECTIVES OF ERGONOMICS STUDY

OPTIMIZE INTEGRATION OF MAN AND MACHINE IN ORDER TO INCREASE PRODUCTIVITY AND QUALITY INVOLVES DESIGN OF -WORK PLACE BEFITTING THE NEEDS AND REQUIREMENT OF WORKERS -EQUIPMENT CONTROLS IN SUCH A WAYTO MINIMIZE MENTAL AND PHYSICAL

ENVIRONMENTAL ASPECT OF ERGONOMICS

DAYLIGHT TO BE REINFORCED WITH ARTIFICIAL LIGHT DEPENDING ON THE NATURE OF WORK PROPER VENTILATION IN PLACE DUST AND FUME COLLECTORS AND DISPATCHERS SHOULD BE ATTACHED TO MACHINES eg SCENE IN TEXTILE MILLS REFLECTIONS TO BE AVOIDED TEMERATURE AND HUMIDITY CONTROL TO BE IN PLACE NEED TO REDUCE NOISE EMISSION LEVELS

TOTAL QUALITY MANAGEMENT

DEFINITION OF QUALITY

-JURAN-QLTY IS FITNESS FOR USE -CROSBY-CONFORMANCE TO REQMT FROM THE USERS POINT OF VIEW QLTY IS MEETING NEEDS AND WANTS OF THE USER. USER NOT ONLY EXPECTS PRODUCT/SERVICE TO MEET HIS FUNCTIONAL REQUIREMENTS-PRIMARY&SECONDARY BUT ALSO HIS EMOTIONAL REQUIREMENTS QUALITY MEANS -DEGREE OF EXCELLENCE -CONFORMANCE WITH REQUIREMENTS -ABILITY OF FUNCTIONALITIES TO SATISFY STATED OR IMPLIED NEEDS -FREEDOM FROM DEFECTS IMPERFECTION -SATISFYING AND DELIGHTING CUSTOMERS QUALITY IS PRODUCT/PROCESS/SERVICE ORIENTED

DEFINITION OF QUALITY
QUALITY IS - DEFINED BY CUSTOMER - MEASURE OF ACHIEVEMENT OF CUSTOMER SATISFACTION. - FULFILING CUSTOMER NEEDS & WANTS - VALUE FOR MONEY - DEFECTLESS PRODUCT TRADITIONAL WAY IN WHICH QUALITY IS EXPRESSED QUANTITATIVELY IS AQL (ACCEPTABLE QUANTITY LEVEL) WHICH IS EXPRESSED AS A % OF DEVIATION FROM STD. E.G. 1% AQL ON AN ORDER OF 1000 PRODUCT QTY TO BE MFG IS 10 DEFECTIVE OR PRODUCT NUMBERS NOT CONFORMING TO SPECIFICATIONS. AQL IS OFTEN FORCED ON SUPPLIERS BY CUSTOMERS ANOTHER MEASURE OF QUANTITATIVE EXPRESSION OF QUALITY IS SIGMA.

IMPORTANCE OF HIGHER QUALITY

INCREASED CUSTOMER SATISFACTION MORE SALEABLE PRODUCTS MEET COMPETITION INCREASED MKT SHARE SECURE PREMIUM PRICES REDUCE ERROR RATES

IMPORTANCE OF HIGHER QUALITY

REDUCE REWORK AND WASTE REDUCE FIELD FAILURES AND WARRANTY CHARGES REDUCE CUSTOMER DISSATISFACTION REDUCE INSPECTION SHORTEN TIME TO MARKET INCREASE ASSET UTILIZATION INCREASE DELIVERY PERFORMANCE

KEY FACTORS IN ACHIEVING QUALITY

DEFINE CRITICAL SUCCESS FACTORS MANDATORY REQUIREMENTS OF BEING A SUPPLIER BY CHOICE COMPANY WIDE APPROACH TO QUALITY CUSTOMER SATISFACTION MEASURES V/S INTERNAL MEASURES EFFECTIVENESS

QUALITY BARRIERS
LACK OF TOP MGT COMMITMENT POOR UNDERSTANDING OF QLTY FUNCTIONAL BOUNDARIES CUSTOMER EXPECTATIONS SPEED OF ACTION GAP BETWEEN PROCESS EXPECTATION AND ACHIEVEMENT VENDOR CAPABILITY COST

NEED TO IMPLEMENT TQM

BUSINESS FACTORS AND CHANGING CIRCUMSTANCES SLOW ECONOMIC GROWTH AND SEVERE COMPETITION ACHIEVE LEADERSHIP IN COST,QLTY DELIVERY ELIMINATE DEFECTS FROM PRODUCT/SERVICE

NEED TO IMPLEMENT TQM

SLOW ECONOMIC GROWTH AND SEVERE COMPETITION INEFFECTIVE NEW PRODUCTS LAUNCHED CONCERNS ABOUT HOW TO ACHIEVE LONG TERM GOALS OF QLTY,COST,DELIVERY CHRONIC DEFECTS OR SUB EFFICIENCES IN PROCESS TO GET STARTED WE NEED TO -HAVE CUSTOMER FOCUS AND IMPLEMENT TOOLS SUCH AS QLTY FUNCTION DEPLOYMENT,BPI,CONTINUOUS IMPROVEMENT BENCHMARKING ETC TO MANAGE TQM EFFECTIVELY WE NEED TO IMPLEMENT PERFORMANCE MEASUREMENT SYSTEMS SUCH AS BALANCED SCORECARD,MALCOLM BALDRIDGE ETC

QUALITY MANAGEMENT PROCESS

ASSESS ORGANISATION VISION, MISSION, CRITICAL SUCCESS FACTORS IDENTIFY CUSTOMER SEGMENTS AND UNDERSTAND, ANTICIPATE THEIR NEEDS & WANTS DEFINE BUSINESS PROCESSES WITH CAPABILITIES RULES & MEASURES TO MEET SHORT TERM & LONG TERM GOALS. MANAGE BUSINESS PROCESSES THROUGH CONTROL OF EFFICIENCIES & EFFECTIVENESS THROUGH BENCH MARKING & ROOT CAUSE ANALYSIS AS WELL AS MEASURING VOICE OF CUSTOMERS. EFFECT BUSINESS PROCESS IMPROVEMENT ON A CONTINUOUS BASIS.

8 DIMENSIONS OF QUALITY LEVELS

CUSTOMERS HEAVILY INFLUENCED BY 8 DIMENSIONS IN DETERMINING QUALITY LEVELS. - PERFORMANCE: OPERATING CHARACTERISTICS - FEATURES: SECONDARY CHARACTERISTICS THAT SUPPLEMENT BASIC CHARACTERISTICS. - RELIABILITY: PROBABILITY OF PRODUCT FAILING WITHIN SPECIFIED PERIOD OF TIME. - CONFORMANCE: DEGREE TO WHICH PRODUCT DESIGN AND OPERATING CHARACTERISTICS MATCH PRE ESTABLISHED STANDARDS - DURABILITY: MEASURE OF PRODUCTS LIFE - SERVICEABILITY: SPEED AND COMPETENCE OF REPAIR - AESTHETICS: HOW A PRODUCT LOOKS - PERCEIVED QLTY: ASSESSMENT OF STDS RELYING ON COMPARISON BETWEEN PRODUCT BRANDS

TOTAL QUALITY MANAGEMENT

MEETING CUSTOMER REQMNT AT MINIMUM COST INVOLVES UNDERSTANDING EXTERNAL/INTERNAL CUSTOMERS AS WELL AS UNDERSTANDING THE BUSINESS IN TERMS OF FUNCTIONAL ANALYSIS AND QUALITY COSTS INVOLVES IMPLEMENTATION AND MONITORING OF QUALITY PARAMETERS USING INITIATIVES SUCH AS ISO 9000,ISO 14000,OSHAS 18000,CMM ,CMM-P ,TS 16949,SA 8000 CONTINUOUS QUALITY IMPROVEMENT THROUGH MGT COMMITMENT,EMPLOYEE INVOLVEMENT,QLTY MEASUREMENT AND ERROR PREVENTION USAGE OF QLTY TOOLS SUCH AS SPC,QFD AND BENCHMARKING

8 QUALITY MGT PRINCIPLES

CUSTOMER FOCUS CONTINUAL IMPROVEMENT MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS INVOLVEMENT OF PEOPLE FACTUAL APPROACH SYSTEMS APPROACH PROCESS APPROACH LEADERSHIP

CUSTOMER FOCUS
ORGS DEPEND ON CUSTOMERS AND SHOULD UNDERSTAND CURRENT AND FUTURE NEEDS, MEET CUSTOMER REQUIREMENTS AND STRIVE TO EXCEED EXPECTATIONS COMMUNICATION WITH CUSTOMERS CUSTOMER CARE MANAGEMENT COMMITMENT

CONTINUAL IMPROVEMENT
CONTINUAL IMPROVEMENT OF ORG OVERALL PERFORMANCE SHOULD BE A PERMANENT OBJECTIVE CONTINUAL IMPROVEMENT REFLECTED THRU REQMNT ADDRESSING: -IMPROVEMENT PROCESSES -IDENTIFYING PROCESSES -REVIEWING DOCUMENTATION OF PROCESSES

MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS

ORG AND SUPPLIERS ARE INTERDEPENDENT AND A MUTUAL BENEFICIAL RELATIONSHIP ENHANCES ABILITY OF BOTH TO CREATE VALUE MUTUALLY BENEFICIAL SUPPLIER RELATONSHIP IS REFLECTED IN REQUIREMENT ADDRESSING -EVALUATION OF SUPPLIERS -CONTROL OF SUPPLIERS -ANALYSIS AND REVIEW OF SUPPLIER DATA

PEOPLE INVOLVEMENT
PEOPLE AT ALL LEVELS ARE ESSENCE OF ORG AND THEIR FULL INVOLVEMENT ENABLES ABILITIES TO BE USED FOR ORG BENEFIT INVOLVES: -PARTICIPATION IN DESIGN REVIEWS -DEFINING OBJECTIVES RESPNSBLTS AUTHORITIES -CREATING ENVT OF MOTIVATION -INTERNAL COMMUNICATION -IDENTIFYING COMPETENCY NEEDS

FACTUAL APPROACH
MGT BY FACT IS CORNERSTONE VALUE FOR EFFECTIVE PLANNING OPERATIONAL DECISION MAKING AT ALL LEVELS EMPLOYEE INVOLVEMENT EMPOWERMENT AND LEADERSHIP DATA ON WHICH DECISIONS ARE BASED SHOULD BE FACTUAL ACCURATE TIMELY RELIABLE AND CONSISTENT DATA SHOULD NOT BE BASED ON INTUITION OR GUT FEEL EFFECTIVE DECISIONS BASED ON ANALYSIS OF DATA

FACTUAL APPROACH
PRINCIPLE IS REFLECTED THRU REQMNT ADDRESSING: -REVIEWS MEASUREMENT AND MONITORING TO OBTAIN FACTS -CONTROL OF MEASURING PROCESSES -ANALYSIS TO OBTAIN FACTS FROM INFO -RECORDS FOR DOCUMENTING FACTS -APPROVAL BASED ON FACTS

SYSTEMS APPROACH
IDENTIFYING UNDERSTANDING AND MANAGING INTERRELATED PROCESSES AS A SYSTEM CONTRIBUTING ORG EFFECTIVENESS AND EFFICIENCY IN ACHIEVING OBJ SYSTEMS APPROACH REFLECTED THRU THE REQMNT ADDRESSING: -ESTABLISHMENT IMPLEMENTATION AND MAINTENANCE OF MGT SYSTEM -INTERCONNECTING INTERRELATING AND SEQUENCING OF PROCESSES AND ESTABLISHMENT OF LINKS BETWEEN PROCESSES -ESTABLISHING MEASUREMENT PROCESSES

PROCESS APPROACH
DESIRED RESULT ACHIEVED MORE EFFICIENTLY WHEN RELATED RESOURCES AND ACTIVITIES MANAGED AS A PROCESS PROCESS APPROACH IS ABOUT MANAGING PROCESSES -THAT HAVE A CLEARLY DEFINED OBJ THAT IS BASED ON NEEDS -THAT ARE DESIGNED TO ACHIEVE OBJ THRU TASKS THAT USE CAPABLE RESOURCES HUMAN,PHYSICAL,INTELLECTUAL,INFORMTNL AND FINANCIAL -PRODUCE OUTPUTS THAT SATISFY CUSTMRS -MEASURE REVISE CONTINUALLY IMPROVE PROCESS EFFICIENCY AND EFFECTIVENESS

PROCESS APPROACH PRINCIPLES

IDENTIFY A PROCESS DEFINE PROCESS INPUTS AND OUTPUTS PROVIDE INFRASTRUCTURE AND RESOURCES FOR PROCESSES TO FUNCTION

LEADERSHIP
ESTABLISHES UNITY OF PURPOSE AND DIRECTION FOR ORG LEADERS SHOULD CREATE AND MAINTAIN INTERNAL ENVT IN WHICH PEOPLE ARE FULLY INVOLVED IN ACHIEVING ORG OBJECTIVE LEADERSHIP PRINCIPLES INVOLVE -SETTING OF OBJECTIVES -PLANNING - INTERNAL COMMN -CREATING EFFECTIVE WORKING ENVT

COMPONENTS OF LEADERSHIP
Failures in an org are faults of systems controlled by mgt. Work must be analysed and improved Process must be standardised to minimize variation in output Customer focus external and internal Improved relations with suppliers

COMPONENTS OF LEADERSHIP
Emphasis on process improvement Total employee commitment

COMPONENTS OF LEADERSHIP
Emphasis on process improvement Total employee commitment

USING PRINCIPLES OF QLTY MGT

PRINCIPLES CAN BE USED IN VALIDATING DESIGN OF PROCESSES IN VALIDATING DECISIONS IN AUDITING SYSTEMS AND PROCESSES PROCESS AUDIT CAN BE CARRIED OUT BY SEEKING ANSWERS TO THE FOLLOWING QUESTIONS:

QUALITY GAINS BY XEROX

SELF ASSESSMENT DONE USING MBNQA FRAMEWORK RESULTANT IMPROVEMENT INCLUDED: -DEFECT REDUCTION FROM 10000PPM TO 300 PPM -PRODUCT PERFORMANCE INCREASED BY 40% -CUSTOMER SATISFACTION INCREASED BY 38% -LABOUR OVERHEAD REDUCED BY 50% -MATERIAL OVERHEAD REDUCED BY 40%

EDWARD DEMING
STRESSES ON IMPROVING QLTY IN MFG THRU USE OF SQC TECHNIQUES AND SHOWED HOW PRODUCTIVITY PROFITABILITY ROI CAN BE IMPROVED THRU QLTY IMPROVMNT QLTY OF DESIGN,QLTY OF CONFORMANCE,QLTY OF SALES AND QLTY OF SERVICE APPROACH PROPOSED THRU 14 PRINCIPLES OF QLTY MGT WHICH FOCUS ON -CONFORMANCE TO REQUIREMENTS -TOP MGT COMMITMENT TO QLTY -PROCESS DESIGN AND CONTROL -CONTINUOUS CORRECTION OF QLTY PROBLEMS -EMPHASIS ON QLTY RATHER THAN COST -EMPLOYEE PARTICIPATION IN QLTY MGT -QUALITY INFDORMATION SYSTEMS -SYSTEM OF PREVENTION AND NOT APPRAISAL OF QUALITY -ZERO DEFECT AS THE IDEAL PERFORMANCE STANDARD -PRICE OF NON CONFORMANCE AS A MEASURE OF QUALITY

14 PRINCIPLES OF DEMING
CREATE STRATEGY TOWARDS IMPROVEMENT OF PRODUCT WITH AN AIM TO BE COMPETITIVE CREATE LEADERSHIP FOR CHANGE MGT ELIMINATE NEED FOR INSPECTION BY BUILDING QLTY INTO PRODUCT AWARD BUSINESS ON QLTY NOT PRICE COST REDN THRU CONTINUOUS IMPROVEMENT OF QLTY CONTINUOUS TRG FOR EMPLOYEES QLTY MGT SHOULD BE AN IMPORTANT CRITERIA FOR PERSONNEL APPRAISAL ENCOURAGE PEOPLE TO CONTRIBUTE EFFECTIVELY BREAK DOWN INTER DEPT BARRIERS ELIMINATE SLOGANS AND CLICHES IN WORKPLACE CORELATE WORK STDS TO QLTY STDS TARGETS SHOULD INCLUDE QUANTITATIVE AND QUALITY MEASURES CONSTITUTE SELF IMPROVEMENT PROGRAMS INVOLVE EVERYBODY IN ORG TO ACCOMLISH BUSINESS PROCESS QLTY IMPROVEMENT

Deming Wheel: PDCA Cycle

4. Act
Institutionalize improvement; continue cycle.

1. Plan
Identify problem and develop plan for improvement.

3. Study/Check
Assess plan; is it working?

2. Do
Implement plan on a test basis.

DEMING PDCA
PDCA IS PLAN DO CHECK ACT PLAN -IDENTIFY PROBLEM BY FACTS AND DATA -COLLECT DATA AND DETERMINE GOALS TO BE ACHIEVED -ANALYSE PROBLEM AND POSSIBLE CAUSES AND ISOLATE ROOT CAUSE DO -REMEDIAL STEPS FOR ERADICATION OF ROOT CAUSE OF PROBLEM CHECK -CHECK,MEASURE,ANALYSE AND MONITOR RESULTS ACT -STANDARDISE IMPROVEMENTS -CONTINUOUS REVIEW AND IMPROVEMENT

JOSEPH JURAN
DEFINES QUALITY AS FITNESS FOR USE FITNESS ACHIEVED THRU QUALITY OF DESIGN,QLTY OF CONFRMNCE AVAILABILITY AND SERVICE DETAILED 3 STEPS FOR QLTY CTRL -QLTY CTRL:GAIN CONFORMANCE THRU PREVENTION OF DEFECTS -QLTY IMPROVEMENT:CONTINUOUS IMPROVEMENT OF QLTY AND INCREASED ADHERENCE TO CONFORMANCE -SETTING GOALS,ESTABLISHING PLANS FOR MEETING GOALS AND EXECUTING PROJECTS TO ATTACK PROBLEMS

JOSEPH JURAN
JURAN EMPHASISES ON QLTY PLANNING,QLTY THRU PRODUCT DESIGN,QLTY AUDIT,QLTY COSTS TEN STEPS TO QLTY IMPROVEMENT:

JURAN 10 STEPS FOR QLTY IMPROVEMENT

BUILD AWARENESS OF NEED FOR IMPROVEMENT SET GOALS FOR IMPROVEMENT ORGANISE TO REACH GOALS PROVIDE CONTINUOUS TRG CARRY OUT CONSTANT SEARCH FOR SOLUTIONS REPORT AND DOCUMENT PROGRESS GIVE RECOGNITION COMMUNICATE RESULTS KEEP SCORE MAKE IMPROVEMENT PART OF THE REGULAR SYSTEMS AND PROCESSES OF COMPANY

JURAN PROCESS FOR QLTY IMPROVEMENT

ESTABLISH NEED FOR IMPRVMNT AND IDENTIFY AREAS ORGANISE DATA AND FACTS DIAGNOSE CAUSES OF PROBLEMS IDENTIFY AND PROVIDE REMEDIES FOR CAUSES ENSURE THAT REMEDIES SOLVE PROBLEM ONCE AND FOR ALL CONTINUOUSLY IMPROVE

JOSEPH JURAN
DEFINES QUALITY AS FITNESS FOR USE FITNESS ACHIEVED THRU QUALITY OF DESIGN,QLTY OF CONFRMNCE AVAILABILITY AND SERVICE DETAILED 3 STEPS FOR QLTY CTRL -QLTY CTRL:GAIN CONFORMANCE THRU PREVENTION OF DEFECTS -QLTY IMPROVEMENT:CONTINUOUS IMPROVEMENT OF QLTY AND INCREASED ADHERENCE TO CONFORMANCE -SETTING GOALS,ESTABLISHING PLANS FOR MEETING GOALS AND EXECUTING PROJECTS TO ATTACK PROBLEMS

JOSEPH JURAN
JURAN EMPHASISES ON QLTY PLANNING,QLTY THRU PRODUCT DESIGN,QLTY AUDIT,QLTY COSTS TEN STEPS TO QLTY IMPROVEMENT:

JURAN 10 STEPS FOR QLTY IMPROVEMENT

BUILD AWARENESS OF NEED FOR IMPROVEMENT SET GOALS FOR IMPROVEMENT ORGANISE TO REACH GOALS PROVIDE CONTINUOUS TRG CARRY OUT CONSTANT SEARCH FOR SOLUTIONS REPORT AND DOCUMENT PROGRESS GIVE RECOGNITION COMMUNICATE RESULTS KEEP SCORE MAKE IMPROVEMENT PART OF THE REGULAR SYSTEMS AND PROCESSES OF COMPANY

JURAN PROCESS FOR QLTY IMPROVEMENT

ESTABLISH NEED FOR IMPRVMNT AND IDENTIFY AREAS ORGANISE DATA AND FACTS DIAGNOSE CAUSES OF PROBLEMS IDENTIFY AND PROVIDE REMEDIES FOR CAUSES ENSURE THAT REMEDIES SOLVE PROBLEM ONCE AND FOR ALL CONTINUOUSLY IMPROVE

JURANs TRILOGY
QUALITY PLANNING A PROCESS FOR PRESENTING THE QUALITY GOALS AND PREPARATIONS TO MEET THESE GOALS QUALITY CONTROL THE PROCESS OF ENSURING THAT GOALS ARE ACHIEVED QUALITY IMPROVEMENT PROCESS OF BREAKING THROUGH TO HIGHER LEVELS OF QUALITY AND MEETING THE NEEDS OF CUSTOMERS FOE SUPERIOR PERFORMANCE

JURAN STAGES OF QUALITY PLANNING

Set up a vision , mission and a long term goal Define value systems that will guide the org Break mission statement into annual short term goals

JURAN STAGES OF QUALITY PLANNING

Identify the customer at each stage of the process Determine customer needs and expectations Develop product/service features in line with customer needs and expectations Establish quality goals to meet customer and supplier needs at minimum combined cost Develop resources to provide the needed features Ensure resources are capable of meeting quality goals under operating conditions right first time

JURAN STAGES OF QUALITY PLANNING

Develop systems and processes to produce these product features Prove process capability and hand over the plan at operative level Findings of Juran on planning -20% deficiencies are normally inherent due to bad quality planning -The best quality control can do is to maintain 20% deficiencies and not allow deterioration -Quality planning integrates attainment of mission and milestones of progress with routine activities

JURANS 7 STAGES OF QUALITY CONTROL

Choose control parameters-what to control Define units of measure Establish standards of performance Create methods of measurement Measure performance Interpret the results actual against standard Take action on the deviation

JURANS 8 STEPS FOR IMPROVEMENT

IDENTIFY NEEDS IDENTIFY PROJECTS ORGANIZE FOR PROJECTS ORGANIZE FOR DIAGNOSIS DISCOVER CAUSES ENSURE ACCEPTANCE OF REMEDY IMPLEMENT CHANGE HOLD GAINS

AJAY PIRAMAL GROUP MAHINDRA AND MAHINDRA OTIS ELEVATORS MUKAND INDUSTRIES TATA GROUP BOMBAY DYEING MARICO LTD PUNJAB TRACTORS LTD

INDIAN REFERENCES OF DEPLOYMENT OF JURAN TRILOGY

JURAN MANAGING FOR QUALITY(PLANNING)

ESTABLISH QUALITY GOALS IDENTIFY CUSTOMERS DETERMINE THEIR NEEDS DEVELOP FEATURES WHICH RESPOND TO THEIR NEEDS DEVELOP PROCESSES TO PRODUCE THESE FEATURES ESTABLISH PROCESS CONTROLS

JURAN MANAGING FOR QUALITY(CONTROL)

EVALUATE ACTUAL PERFORMANCES COMPARE ACTUAL PERFORMANCE TO QUALITY GOALS ACT ON GAP

JURAN MANAGING FOR QUALITY(IMPROVEMENT)

ESTABLISH INFRASTRUCTURE IDENTIFY IMPROVEMENT PROJECTS ESTABLISH PROJECT TEAMS WITH RESOURCES DIAGNOSE CAUSES AND FIND REMEDIES ESTABLISH CONTROLS

QUALITY ASSURANCE
PRIMARY CONCERN IS QUALITY ASSURANCE EMPHASIS ON PRODUCTION LINE AND QUALITY FROM THE FIRST STAGE QUALITY SYSTEMS DEVELOPMENT IMPLEMENTATION OF QFD, COST OF QUALITY, FMECA, VALUE ANALYSIS MOTTO IS DO THE RIGHT THING ALWAYS ELIMINATE NON VALUE ACTIVITIES AND FUNCTIONALITIES

QUALITY ASSURANCE
QUALITY ASSURANCE IS A PREVENTIVE BASED SYSTEM WHICH IMPROVED PRODUCT/ SERVICE BY ELIMINATING THE ROOT CAUSE OF PROBLEM LASTING AND CONTINUOUS IMPROVEMENT IN QUALITY CAN BE ACHIEVED BY DIRECTING ORG EFFORTS TOWARDS PLANNING AND PREVENTING PROBLEMS FROM OCCURING AT SOURCE QA FOCUSES ON PROVIDING CONFIDENCE THAT QLTY REQMNTS WILL BE FULFILED (ISO 9000:2000)

QUALITY ASSURANCE
ADDL FEATURES REQD WHEN PROGRESSING FROM QC TO QA ARE QMS TO INCREASE CONFORMITY, SEVEN QLTY CONTROL TOOLS, SPC, FAILURE MODE EFFECT ANALYSIS AND QLTY COSTS ACCENT IS ON PREVENTION OF NON CONFORMANCE EMPHASIS IS ON DESIGN IMPROVEMENT, PROCESS CONTROL IMPROVEMENT, ETC. QA IS A PREVENTION BASED SYSTEM WHICH INCREASES PRODUCTIVITY BY EMPHASISING ON DESIGN ASPECTS OF PRODUCT / SERVICE

QUALITY ASSURANCE
BY INTEGRATING QLTY INTO PLANNING & DESIGN STAGE IT STOPS NON CONFORMITY FROM OCCURING PROACTIVE APPROACH WHICH LOOKS AT PROCESS CONFORMITIES RESULTING IN PRODUCT CONFORMITIES SIX SIGMA ADVOCATES A METHODOLOGY CALLED PDCA QLTY CREATED AT DESIGN STAGE CHANGING FROM DETECTION TO PREVENTION REQUIRES NEW OPERATING PHILOSOPHY SUCH AS CROSS FUNCTIONAL TEAMS AND ROOT CAUSE ANALYSIS

COST OF QUALITY
MOST IMPORTANT CONSIDERATION IN TQM PROVIDES ABILITY TO ENHANCE CORPORATE PROFIT COST OF QLTY IS CARDINAL FOR JUDGEMENT OF PROCESS EFFECTIVENESS QLTY COSTS ARE DIRECTLY PROPORTIONAL TO THE QLTY CONFORMANCE OF THE PRODUCT MEASUREMENT OF COSTS HELPS TO HIGHLIGHT IMPORTANCE OF PRODUCT QLTY;FORMS BASIS OF DECISION MAKING;IDENTIFIES AREAS NEEDING IMPROVEMENT;MEASURES EFFECTS OF ACTIONS TAKEN; QLTY COSTS ARE CATEGORIZED INTO 4 MAJOR CATEGORIES-PREVENTION COSTS;APPRAISAL COSTS;FAILURE COSTS(INTERNAL AND EXTERNAL)

QLTY COSTING
QUALITY COSTS ARE INCURRED DURING THE ENTIRE PRODUCT LIFECYCLE eg DESIGNING,IMPLEMENTING,OPERATING,MAINTAINING, COSTS INCURRED IN MAKING CONTINUOUS IMPROVEMENT TO PRODUCT/PROCESS AND SUSTAINING QLTY COSTS INCURRED IN PRODUCT/SERVICE FAILURE QLTY COSTS CAN RANGE FROM 5% TO 25% OF SALES ALMOST 90% TO 95% OF THESE COSTS COME FROM APPRAISAL AND FAILURES REDUCING FAILURE COSTS BY ELIMINATING CAUSES OF FAILURE CAN LEAD TO REDUCTION OF APPRAISAL COSTS USAGE OF ACTIVITY BASED COSTING THRU COST DRIVERS MAKES IT EASIER TO GATHER QLTY RELATED COSTS ABC BREAKS DOWN COSTS INTO ELEMENTS CALLED COST DRIVERS eg m/c set up FOR EACH COST DRIVER AN OVERHEAD RATE IS DETERMINED COST DRIVERS RESULT IN MORE ACCURATE COSTING AND ENABLES QLTY COST ASSOCIATED WITH AN ACTIVITY TO BE IDENTIFIED

APPRAISAL COSTS
COSTS INCURRED TO MEASURE EXTENT OF CONFORMANCE AND INCLUDE COSTS MENTIONED BELOW -MEASURING,INSPECTING,TESTING AND AUDITING PERFORMANCE TO DETERMINE CONFORMANCE WITH STDS -QUALIFICATION TESTS FOR DESIGN REQUIREMENTS -EVALUATING PURCHASED ITEMS AND INSPECTION COSTS OF INCOMING MATERIAL -COST OF STORAGE OF MATERIAL AWAITING INSPECTION -EMPLOYEE AND EQUIPMENT PERFORMANCE -IN PROCESS INSPECTION AND CONTROL -FINAL TESTING AND INSPECTION -PRODUCTION TRIALS -MATERIAL CONSUMED DURING INSPECTION AND TESTING -FIELD PERFORMANCE TESTING -MAINTENANCE AND CALIBRATION OF EQUIPMENT -AUDIT OF PREVENTIVE SYSTEM TO ENSURE EFFECTIVENESS

PREVENTION COSTS
AIMED AT PREVENTING DEFECTS AND BUILDING ACCEPTABLE QLTY INTO PRODUCTS AND SERVICES INCLUDES TRAINING, DESIGNING PROCEDURES, VENDOR ASSURANCE EXERCISES,PROCESS CAPABILITY BUILDING ,TRAINING AND CONSUMER RESEARCH ORIENTED AT IMPROVING QLTY,PLANNING QUALITY ASSURANCE PREVENTION IS AVOIDABLE ACTIVITY AND SHOULD BE REPLACED BY TQM WHICH ADVOCATES COST OF BUILDING ACCEPTABLE QLTY PREVENTIVE COSTS INCLUDE DEVELOPMENT AND MAINTENANCE COSTS AS WELL AS QLTY PLANNING WHICH INCLUDESCOSTS INCURRED IN MFG PROCESS ,PROCESS RELIABILITY, PROCEDURE MANUALS,VENDOR DEVELOPMENT COSTS ,ADMIN COSTS,TRAINING COSTS, AND QLTY AUDIT COSTS

FAILURE COSTS
TWO CATEGORIES: INTYERNAL FAILURE COSTS AND EXTERNAL FAILURE COSTS INTERNAL FAILURE COSTS ARE COSTS INCURRED BECAUSE OF DEFECTS IN PRODUCT BEFORE SHIPMENT TO CUSTOMER AND INCLUDES COSTS SUCH AS: -COST OF SCRAPPING PRODUCT -COST OF REWORK -COST OF LOSS OF PRODUCTIVE TIME LOSS DUE TO DEFECTS SALE -LIABILITY INSURANCE COST OF OPPORTUNITY LOSS EXTERNAL FAILURE COSTS REPRESENTS COSTS INCURRED AFTER DELIVERY TO CUSTOMER AND INCLUDES HEADS SUCH AS COST OF COMPLAINT HANDLING,COST OF REPLACEMENT,WARRANTY COST OF REPAIRS AND EXTENDED WARRANTY,COST OF ADDITIONAL CLAIMS TO BE PAID TO CUSTOMER TO COVER LITIGATION COSTS AND PENALTY COSTS,LOST CUSTOMERS,BAD DEBT,SALES RETURNS

INDICATIVE COSTS OF QUALITY

Quality costs in Cimmco machines was 4% of turnover In Bharat Dynamics it was 11% of the cost of production and 4.4% of turnover. Staff time spent on quality related issues was failure(23%), prevention (20%) and appraisal (7%) Quality costs in a reputed textile mill has been reduced from 13% to 8% of - TO 3 yrs

BREAKUP OF QLTY COSTS ATN ASHOK LEYLAND

TOTAL QLTY COST IS 8.2% OF REV EXTERNAL COSTS IS 0.2% QLTY ASSURANCE IS 71.1% QLTY INSPECTION IS 12.8% QLTY CONTROL IS 15.9%

COST OF QUALITY IN RETAIL AS % SALES

RETURNS TO MANUFACTURER SECONDS REWORK INSPECTION 7.7% 17.9% 10.3% 64.1%

COST OF QUALITY
MANY ORG ARE UNAWARE OF HOW MUCH IT COSTS THEM TO PRODUCE NON QLTY COST OF QLTY DOES NOT SHOW UP IN PROFIT/LOSS STATEMENTS IT COULD COST COMPANIES AS MUCH AS 40-50% OF SALES TURNOVER TO GET THINGS RIGHT TQM HAS NOTHING TO DO WITH COST REDUCTION MEASURE THE INTANGIBLES IN THE SERVICE AREAS FIRST THAT IS WHERE THE REALWASTE IS EVIDENT

COST OF QUALITY
80-85% OF THE PROBLEMS ORIGINATE FROM NON MFG AREAS COST OF QLTY IS COMPOSED OF THE COST OF ERRORS AND REWORK COST OF INSPECTION AND COST OF PREVENTION REWORK AND INSPECTION COSTS CAN BE REDUCED THRU INCREASE IN ACTIVITIES OF PREVENTION ALL FUNCTIONS SHOULD IDENTIFY COQ MEASURES

TQM IN MARKETING
TQMMAR INVOLVES CONTINUOUS IMPROVEMENT IN THE MARKETING FUNCTION COMPANY OPERATIONS MUST BE COORDINATED AND MATCHED WITH NEEDS OF CUSTOMERS EVERYBODY WHO WORKS FOR THE COMPANY MUST PARTICIPATE IN A TOTAL MARKETING ENVIRONMENT

TQM MARKETING PROCESS

CLARIFY THE VISION IN RELATION TO MKT OPPORTUNITIES eg WHAT SORT OF BUSINESS WE WISH TO BE IN SET TANGIBLE GOALS TO EXPRESS WHAT THE COMPANY WANTS TO ACHIEVE eg LOW COST PRODUCER CHALLENGE DEVELOP AWARENESS AND KNOW OF WHERE COMPANY IS NOW,HOW SITUATION HAS EVOLVED AND WHAT TRENDS ARE OPEN IN THE FUTURE eg COMPARITIVE PERCEPTION BETWEEN CUSTOMERS AND SALESMEN MAINTAIN BUSINESS ACTIVITIES TO ENSURE THAT STRATEGIES AND TACTICS ARE MUTUALLY REENFORCING eg APPLY DEMING PDCA CYCLE IN STRATEGIC PLANNING AND DEPLOYMENT SET DYNAMIC STANDARDS TO CREATE CLEAR AND CONSISTENT OPERATING MILESTONES WHICH ARE RELEVANT TO CHANGING DYNAMICS OF MKTPLACE PLANNED IMPLEMENTATION DESIGNED TO ENSURE STRATEGIES AND POLICIES ARE PUT INTO PLACE THROUGH MARKETING PLANNING SYSTEMS ESTABLISH SOUND FEEDBACK CONTROL SYSTEMS TO REPORT ANALYZE AND RECTIFY THREATENING AND OUT OF CONTROL SITUATIONS

TQM IN PURCHASING
ORGANIZATIONWIDE PARTICIPATION IN THE IMPROVEMENT OF THE LOGISTIC PROCESS TO MEET THE NEEDS OF THE CUSTOMER IN MFG COMPANIES AROUND 50% OF PRODUCT COST COMES FROM MATERIAL COST IN SUPPLY CHAIN AREA PURCHASE QLTY IS CONSIDERED PARAMOUNT TO THE PROFITABILITY OF THE BUSINESS AND HENCE ACCENT ON PURCHASE QLTY PURCHASING NEEDS TO BE HENCE CONSIDERED AS A STRATEGIC FUNCTION

TQM IN PURCHASING
PURCHASING EFFECTIVENESS PURCHASING EFFICIENCY

PURCHASING EFFECTIVENESS
PURCHASING PRICE/COST DIMENSION PURCHASING QUALITY DIMENSION PURCHASING LOGISTICS DIMENSION

PRICE/COST DIMENSION
MATERIAL COSTS/PRICES COMPARISON COORDINATION TRANSPORTATION

QUALITY DIMENSION
SPECIFICATIONS REJECTS PURCHASING ENGINEERING REWORK PRODUCTION STOPS

LOGISTICS DIMENSION
LEAD TIMES ORDER QUANTITY INVENTORIES VENDOR PERFORMANCE DELIVERY PERFORMANCES

PURCHASING EFFICIENCY
PURCHASING ORGANIZATION DIMENSION -WORKLOAD ORDERS/QUOTATIONS -PROCEDURES -INFORMATION SYSTEM -MANAGEMENT -EXPERTISE

TQM IN HR
NEED TO DEFINE HR CAPABILITIES AND CAPACITY REQUIRED TO ACHIEVE SHORT AND LONG TERM GOALS HR QLTY RANGES FROM EFFECTIVE TRANSLATION OF ORG STRATEGIC GOALS TO HR LONG TERM AND SHORT TERM TARGETS AND TRANSLATE THEM INTO EFFECTIVE PERSONNEL OUTCOMES

PREREQUISITES FOR TQM IN HR

EMPLOYEE INVOLVE,EMPOWER HUMAN CAPITAL INCREASE RECRUIT AS PER COMPETENCE REQMNT QUALITY OF RELATIONSHIP WITH STAKEHOLDERS MOTIVATION OF EMPLOYEES TURNOVER CONTAINMENT ALIGNMENT OF PERSONAL GOALS

PREREQUISITES FOR TQM IN HR

TRAINING NEED TO BREACH SKILL GAPS WORK CULTURE SUCCESSION PLANNING CAREER DEVELOPMENT SAFETY AND HEALTH

TQM IN FINANCE
Effective risk management Expenditure control with respect to budget Reduced cost of operations Effective internal controls adhering to clause 49 , sox 404 and sas 70 Reduced cost of capital thru judicious borrowing Effective working capital management and minimized debts

CASE STUDY OF TQM IMPLEMENTATION AT ASHOK LEYLAND ASHOK LEYLAND HAS CHOSEN A TQM MODEL WHICH IS BASED

ON THE FOLLOWING PILLARS - TOTAL QUALITY CONTROL - JUST IN TIME - TOTAL PRODUCTIVE MAINTENANCE MODEL DESCRIBED IN THEIR PURSUIT OF WORLD CLASS MFG PURSUIT STEPS - CHANGE MGT & WORKER INVOLVEMENT / OWNERSHIP - BENCHMARKING OF TQM GOALS - CREATION OF SKILLS / MULTI SKILLS FOR TQM - CREATION OF PROCESSES FOR MONITORING OF IMPROVEMENT AND QUALITY CONTROL - IMPLEMENTATION OF INITIATIVES SUCH AS 5S, AUTONOMOUS MAINTENANCE, DESIGN FOR QUALITY, KAIZEN etc AIMED AT MAXIMISING THROUGHPUT OF PROCESSES AS PER CUSTOMER REQMNT.

CASE STUDY OF TQM IMPLEMENTATION AT ASHOK LEYLAND ACHIEVEMENT

- INCREASE IN OEE BY 6% SINCE JUNE 2005 - DECREASE IN INVENTORY BY 12% BUT NO STOCKOUTS. APPROX. RS. 3.0 LAKHS / VEHICLE - 6200 KAIZENS IMPLEMENTED SINCE JAN 1, 2005. - ZERO DEFECTS ACHIEVED IN 3 SHOP FLOORS - SUCCESSFUL IMPLEMENTATION OF AUTONOMOUS MAINTENANCE AND POKA YOKE RESULTING IN ENHANCED SALE OF 8%. - 75% ELIMINATION OF WASTE

TQM INITIATIVES IN VIKRAM CEMENT

INITIATIVES PRACTISED INCLUDE: - BUSINESS PROCESS IMPROVEMENT (CONTINUOUS IMPROVEMENT) - KAIZEN IN WORKPLACE - LIFE CYCLE COST MGT - JUST IN TIME - ZERO DEFECT - SPARE PARTS MGT - PROCESS CAPABILITY IMPROVEMENT THROUGH MEASUREMENT, ROOT CAUSE ANALYSIS, ETC. - FAILURE MODE EFFECT ANALYSIS - PLAN DO CHECK ACT - VALUE ANALYSIS - STATISTICAL PROCESS CONTROL - QUALITY FUNCTION DEPLOYMENT - TOTAL PRODUCTIVITY MAINTENANCE - CORPORATE SOCIAL RESPONSIBILITY PERFORMANCE MEASUREMENT SYSTEMS INCLUDE - BALANCED SCORECARD - EUROPEAN FOUNDATION FOR QUALITY MGT

TQM IN GODREJ INDUSTRY

CUSTOMER SATISFACTION THRU QUALITY FUNCTION DEPLOYMENT PDCA CYCLE MANAGEMENT BY FACT-5W + 1H APPROACH=WHAT,WHY,WHO,WHEN,WHERE + HOW TOTAL EMLOYEE INVOLVEMENT TOTAL WASTE ELIMINATION TOTAL QUALITY CONTROL CII-EXIM BUSINESS EXCELLENCE MODEL SUPPLIER DEPARTMENTAL PURPOSE ANALYSIS KEY BUSINESS PROCESS IMPROVEMENT SMALL GROUP ACTIVITY QUALITY CIRCLES KAIZEN 5S HOUSE KEEPING + TPM SIX SIGMA ENVIRONMENTAL HEALTH SAFETY COMMITTEES ISO 9000 CONTINUOUS COMPETENCY DEVELOPMENT

BENEFITS FOR GODREJ INDUSTRY

INCREASED CUSTOMER FOCUS CONTINUOUS IMPROVEMENT MINDSET BETTER PRODUCT QUALITY BETTER SYSTEMS AND PROCEDURES BETTER CROSS FUNCTIONAL TEAMWORK INCREASED PLANT RELIABILITY WASTE ELIMINATION IN OFFICES AND FACTORIES

TQM IN SERVICE SECTOR

SERVICE SECTOR IS ALL ABOUT INTERACTING WITH CUSTOMERS HENCE CONCEPT OF SERVICE QUALITY TQM IS A MEASUREMENT OF QUALITY PERFORMANCE TO APPLY TQM TO SERVICE SECTOR REQUIRES ANALYSIS OF CHARACTERISTICS OF SERVICE OPERATIONS SERVICE IS AN ACT OR PERFORMANCE THAT ONE PARTY OFFERS TO ANOTHER, AND IS INTANGIBLE AND DOES NOT RESULT INTRANSFER OF OWNERSHIP OF A TANGIBLE ASSET SERVICE IS PROVIDED TO A CUSTOMER INTERNAL AND EXTERNAL

DIMENSIONS OF SERVICE QUALITY

CUSTOMER PERCEIVED SERVICE QUALITY IS VIEWED AS A RESULT OF TECHNICAL (OUTPUT) QLTY AND FUNCTIONAL (PROCESS) QLTY. TECHNICAL REFERS TO TRADITIONAL QC IN MFG FUNCTIONAL IS WAY SERVICE IS DELIVERED THRU PROCESS IN WHICH CUSTOMER IS A PARTICIPANT CUSTOMER EVALUATES QLTY DURING OR AFTER SERVICE TEN DETERMINANTS OF SERVICE QUALITY - TANGIBLES SERVICE SHOULD BE A TANGIBLE FACILITY OR ADVICE RENDERED TO CUSTOMER - RELIABILITY CONSISTENCY OF PERFORMANCE AND ABILITY TO HONOUR PROMISED - RESPONSIVENESS READINESS AND TIMELINESS TO PROVIDE SERVICE

DIMENSIONS OF SERVICE QUALITY

- COMPETENCE POSSESSION OF REQD SKILLS AND KNOWLEDGE TO PERFORM SERVICE - COURTESY POLITENESS, RESPECT OF CONTACT PEOPLE - CREDIBILITY TRUST WORTHINESS AND HONESTY - SECURITY FREEDOM FROM DANGER & RISK - ACCESS APPROACHABILITY - COMMUNICATION KEEPING CUSTOMERS INFORMED IN LANGUAGE THEY UNDERSTAND LISTENING TO CUSTOMERS - UNDERSTANDING CUSTOMER MAKING REPORTS TO UNDERSTAND NEEDS AND WANTS

SERVICE PERFORMANCE GAP

COMPANY PERCEPTION OF SERVICE OUTCOME SHOULD MATCH CUSTOMER EXPECTATION IF IT FAILS TO DO SO THERE IS A SERVICE GAP OVERALL GAP BETWEEN EXPECTATION AND PERCEIVED PERFORMANCE IS DETERMINED BY IMPORTANT GAPS WHICH INCLUDE INFO, DESIGN, COMMN 1. GAP BETWEEN CUSTOMER EXPECTATION AND MGT PERCEPTION OF EXPECTATION. 2. GAP BETWEEN MGT PERCEPTION OF CUSTOMER EXPECTATION AND COMPANY QLTY SPECIFICATIONS 3. GAP BETWEEN SERVIE QLTY SPECS AND ACTUAL SERVICE DELY 4. GAP BETWEEN ACTUAL SERVICE DELY AND EXTERNAL COMMUNICATION ABOUT SERVICE 5. GAP BETWEEN CUSTOMER EXPECTATION AND PERCEIVED SERVICE

SERVICE PERFORMANCE GAP

CRITERIA USED BY CUSTOMERS IN JUDGING SERVICE - TANGIBLE PHYSICAL EVIDENCE POTENTIAL / DELVD - RELIABILITY HONOURING PROMISES. GETTING IT RIGHT - FEATURES ADDL PERFORMANCE OF SUPPLEMENTARY SERVICES - RESPONSIVENESS READINESS TO PROVIDE SERVICE ESPECIALLY AGILITY (OUTSIDE SPECS) - COMMUNICATION KEEPING CUST INFORMED IN LANGUAGE THEY UNDERSTAND - CREDIBILITY HONESTY TRUST - TIMELINESS PROVIDE CORRECT SERVICES IN TIME - SECURITY PHYSICAL & FINANCIAL - FLEXIBILITY ABILITY TO PROVIDE NON STD SERVICES - COMPETENCE POSSESSION OF CORE COMPETENCE - EFFECTIVENESS ACHIEVES DESIRED RESULT

SERVICE PERFORMANCE GAP

- COURTESY POLITENESS, RESPECT - UNDERSTANDING KNOWING THE CUST NEEDS & WANTS - ACCESS ERASE OF APPROACH & CONTACT - PERCEPTION REPUTATION OF QLTY LEVEL - FUNCTION PERFORM PRIMARY FUNCTION - CONFORMANCE SATISFACTION OF PRESET REQMNT

ROLE OF TOTAL QUALITY IN SERVICE

ESTABLISH SERVICE GOALS THAT SUPPORT BUSINESS AND PRODUCT LINE OBJECTIVES IDENTIFY AND DEFINE CUSTOMER EXPECTATIONS FOR SERVICE QUALITY AND RESPONSIVENESS TRANSLATE CUSTOMER EXPECTATIONS INTO CLEAR DELIVERABLE SERVICES ,FEATURES

ROLE OF TOTAL QUALITY IN SERVICE

SET UP EFFICIENT RESPONSIVE INTEGRATED SERVICE DELIVERY SYSTEMS AND ORGS MONITOR AND CONTROL SERVICE QLTY AND PERFORMANCE PROVIDE QUICK COST EFFECTIVE RESPONSE TO CUSTOMER NEEDS EFFICIENT COMPLAINT MGT CUSTOMER RELATIONSHIP BUILD

REASONS FOR IMPLEMENTING TQM

PRODUCTS/SERVICES DONT MEET CUSTOMER REQUIREMENT CUSTOMER EXPECTATIONS ARE CONSTANTLY INCREASING AND ARE DIFFICULT TO MEET CURRENTLY HIGH QUALITY DEFECTS AND COSTS ATMOSPHERE OF INDIFFERENCE IN ORG WITH PEOPLE FEELING THAT QLTY IS JOB OF INSPECTION PRODUCT DELIVERY TIME IS HIGH AND DOES NOT MEET THE CUSTOMER EXPECTATION

RESULTANT BENEFITS OF TQM

GREATER CUSTOMER LOYALTY AND RETENTION LOWER EMPLOYEE ATTRITION GREATER QUALITY OUTPUTS FOCUS ON MARKET NEEDS AS WELL AS INDIVISUAL CUST NEEDS IMPROVED MARKET SHARE FACILITATES QLTY PERFORMANCE IN ALL PROCESSES THRU REMOVAL OF NON VALUE ADD ACTIVITIES GREATER PRODUCTIVITY AND LOWER QLTY COSTS HIGHER PROFITABILITY THRU DECREASED COST OF QUALITY REDUCED WARRANTY COSTS BETTER BUSINESS RESULTS POSITIVE WORK CULTURE IN ORGANISATION HIGHER EMPLOYEE MORALE COMMAND OF SOCIAL RESPECT GAIN IN TANGIBLE BENEFITS SUCH AS PRODUCTIVITY IMPROVEMENT ,REDUCED QLTY COSTS,INCREASED PROFITABILITY AND IN INTANGIBLE ASSETS SUCH AS EFFECTIVE TEAM WORK,IMPROVEMENT IN RELATIONS,CUSTOMER SATISFACTION AND ENHANCED PROBLEM SOLVING CAPACITY

ROADBLOCKS IN TQM IMPLEMENTATION

NO FORMAL STRATEGY OR METHOD LACK OF EFFECTIVE COMMUNICATN INADEQUATE TRG AND FOCUS ON QLTY LACK OF TOP MGT COMMITMENT AND INCOMPATIBLE STRUCTURES AND ISOLATED INDIVIDUALS LACK OF COMPETENCE OF LEADERS INADEQUATE DATA SYSTEMS AND ANALYSIS THRU UNAVAILABILITY OF PROPER TOOLS NO CUSTOMER FOCUS LACK OF PROPER SYSTEMS AUDIT LACK OF CROSS FUNCTIONAL EFFORTS EMPHASIS ON QUICK FIXES INABILITY TO CHANGE CULTURE IMPROPER PLANNING INEFFECTIVE MEASUREMENT TECHNIQUES LACK OF EMPOWERMENT FAILURE TO CONTINUALLY IMPROVE

REASONS FOR TQM FAILURE

LACK OF TOP MGT COMMITMENT IMPLEMENTATION OF CHANGES ARE NOT EXTERNALLY FOCUSED OR CUSTOMER FOCUSED LACK OF FOCUS ON CRITICAL BUSINESS PROCESSES;NO SUPPORT FOR LONG TERM IMPROVEMENT

REASONS FOR TQM FAILURE

LACK OF PROPER MEASURES ESPECIALLY AT STRATEGIC LEVEL WEAK CHANGE AND MINDSET MGT PROCESS

POKA YOKE

POKAYOKE
TECHNIQUE USED TO PREVENT ERRORS BEING CONVERTED TO DEFECTS QA APPROACH NON STATISTICALLY DRIVEN BASED ON ASSUMPTION THAT MISTAKES WILL OCCUR UNTIL PREVENTIVE MEASURES ARE TAKEN AFTER EVERY OPER PRODUCT ANALYSED FOR COMPLETENESS OF SPECS AND ADHERENCE TO QLTY AND IF EXCESS VARIATION PROCESS STOPPED SOURCE OF MISTAKE TO BE KNOWN ANALYSED AND CORRECTED EMPHASIS ON SOURCE ANALYSIS WHICH CHECKS FOR FACTORS WHICH CAUSE MISTAKES AND SOLUTIONS FOUND AND APPLIED TO PREVENT REOCCURENCE FORMIDABLE TOOL FOR ACHIEVING ZERO DEFECT ENCOURAGES WORKERS TO BECOME SENSITIVE TO QLTY ISSUES AND AVOIDS PASSING RESPONSIBILITY TO QLTY DEPT ENCOURAGES A BUILT IN QLTY CHECK SYSTEM DRASTICALLY REDUCES REWORK AND REJECTS AND OVERALL LEAD TIME

REASONS FOR ERRORS

HUMAN ERRORS OR ATTITUDE MACHINE MALFUNCTION OR POOR INPUT MATRL UNCLEAR OPERATING INSTRUCTION OR PROCEDURES

STEPS IN POKA YOKE

DETECTING DEFECT PREVENTING OCCURRENCE OF DEFECT PURPOSE IS TO STOP PROCESS WHEN CONDITIONS EXIST THAT CAUSE PROBLEMS AND PREVENT NON CONFORMING WIP FROM GOING DOWNSTREAM TWO TYPES OF POKAYOKE REGULATORY-DEVICES WHICH GIVE FOREWARNING AND SHUT DOWN PROCESS BEFORE ACCIDENT WHEN ABNORMALITY DETECTED EG PHOTOCOPIER SETTING POKAYOKE-DEVICES THAT CHECK THAT SETTINGS ARE OK BEFORE MAIN RUN

TECHNIQUES USED IN POKAYOKE

5S CAUSE EFFECT DIAGRAMS ROOT CAUSE ANALYSIS

ADVANTAGES OF POKAYOKE
REMOVES DEFECTS FROM SOURCE FASTER DEFECT DETECTION IMPROVES ENVT SAFETY ENSURES IMMEDIATE FEEDBACK IMPROVES EQPT EFFECTIVENESS AND RELIABILITY PROMOTES WORK CULTURE FOR PERFECTION

FMEA Failure Mode Effects Analysis

Agenda

Why does it always seem we have plenty of time to fix our problems, but never enough time to prevent the problems by doing it right the first time?

638

Failure Mode:
The manner in which a system fails.

Failure Modes
Premature operation Failure to operate on time Intermittent operation Failure to cease operation on time Loss of output or failure during operation Degraded output or operational capability Unique failure conditions

Failure Mode and Effects Analysis

A technique employed by engineers to improve system performance.

Failure Modes and Effects Analysis (FMEA)

FMEA is an inductive (bottom-up) engineering analysis method. It is intended to analyze system hardware, processes, or functions for failure modes, causes, and effects. Its primary objective is to identify critical and catastrophic failure modes and to assure that potential failures do not result in an adverse effect on safety and system operation. It is an integral part of the design process. It is performed in a timely manner to facilitate a prompt action by design organization and project management.

642

FAILURE MODE EFFECT ANALYSIS

ENGG TECHNIQUE USED TO DEFINE IDENTIFY AND ELIMINATE KNOWN/POTENTIAL FAILURES PROBLEMS,ERRORS WHICH OCCUR ALL PROBABLE FAILURE MODES WITH THEIR CAUSES AND RESULTS LISTED WITH LIKELIHOOD OF FAILURE DONE BEFORE PRODUCT REACHES CUSTOMER IN BUSINESS PROCESSES THE DIRECT/INDIRECT FINANCIAL/NON FINANCIAL IMPACT COMPUTED FMEA AIMS TO ASSESS WHETHER EFFECTS OF FAILURE MODE ARE CRITICAL CONSIDERATIONS LIKE SEVERITY OF FAILURE,LIKELIHOOD OF FAILURE AND DETECTABILITY (FORESEEN THRU DEGRADATION,INSPECTION)

Failure Mode & Effects Analysis (FMEA)

FMEA is a systematic method of identifying and preventing system, product and process problems before they occur FMEA is focused on preventing problems, enhancing safety, and increasing customer satisfaction Ideally, FMEAs are conducted in the product design or process development stages, although conducting an FMEA on existing products or processes may also yield benefits

FMEA is a Tool
FMEA is a tool that allows you to: Prevent System, Product and Process problems before they occur reduce costs by identifying system, product and process improvements early in the development cycle Create more robust processes Prioritize actions that decrease risk of failure Evaluate the system,design and processes from a new vantage point

A Systematic Process
FMEA provides a systematic process to: Identify and evaluate
potential failure modes potential causes of the failure mode

Identify and quantify the impact of potential failures Identify and prioritize actions to reduce or eliminate the potential failure Implement action plan based on assigned responsibilities and completion dates Document the associated activities

Failure Modes, Effects, & Criticality Analysis

Virtually same as FMEA Identifies criticality of components Emphasizes probability of failure Criticality components
Failure effect probability Failure mode ratio Part failure rate Operating time

Failure Modes, Effects, and Criticality Analysis (FMECA)

A FMECA is similar to a FMEA; however, a FMECA provides information to quantify, prioritize and rank failure modes.
It is an analysis procedure which identifies all possible failure modes, determines the effect of each failure on the system, and ranks each failure according to a severity classification of failure effect.

MIL-STD-1629A, Procedures for Performing a FMECA, discusses the FMECA as a two-step process:
Failure Modes and Effects Analysis (FMEA). Criticality Analysis (CA).

Criticality analysis can be done quantitatively using failure rates or qualitatively using a Risk Priority rating Number (RPN). CA using failure rates requires extensive amount of information and failure data. A RPN is relatively simple measure which combines relative weights for severity, frequency, and detectability of the failure. It is used for ranking high risk items.
648

Failure Modes, Effects, and Criticality Analysis (FMECA) Example

Part name/ Part number

Potential Causes (failure Failure modes Mechanism)

1. Bellows fracture/fatigue 2. Flange/duct fracture 3. Seal failure

Effects
Fire and Explosion Fire and Explosion Fire and Explosion Fire and Explosion Fire and Explosion

Risk Priority Rating Sev Freq Det RPN

Recommended Risk Priority Rating Improvement Sev Freq Det RPN

Turbine Exhaust External Duct Assembly leakage of hot exhaust P/N gas (System 10206-0002-102 A and/or B)

4. Seal surface defect 5. Improper torque

6. Contamination Fire and during assembly Explosion 7. Improperly lockwired Fire and explosion

649

SFMEA, DFMEA, and PFMEA

When it is applied to interaction of parts it is called System Failure Mode and Effects Analysis (SFMEA) Applied to a product it is called a Design Failure Mode and Effects Analysis (DFMEA) Applied to a process it is called a Process Failure Mode and Effects Analysis (PFMEA).

METHODOLOGY OF FMEA
IDENTIFY PROCESS CHARACTERISTICS IN EACH OPERATION DEFINITION OF WHAT IS FAILURE-TOTAL,PARTIAL WITH EFFECTS FIND OUT ALL POSSIBLE FAILURE MODES AND ANALYSE EFFECTS ESTIMATE SERIOUSNESS OF FAILURE MODES AND EFFECT TO CUSTOMER BY RATING FAILURE IN TERMS OF RISK PRIORITY NUMBER FIND OUT ROOT CAUSE OF FAILURE SUGGEST ACTIONS TO IMPROVE DETECTION AND ELIMINATE FAILURE MODE OR REDUCE OCCURRENCE AND IMPACT FAILURES ADDRESSED BASED ON RPN OBJECTIVE OF FMEA TO ANTICIPATE FAILURES INTER RELATIONSSHIP BETWEEN FAILURES DRAWN THRU FAULT TREE ANALYSIS USING AND/OR GATES FTA/FMEA DEVELOPED BY BELL LAB AND WIDELY USED BY US DEFENCE UNDER THE INITIATIVE RCM 1

Failure Mode and Effects Analysis

1. Define failure mode. 2. Identify cause of failure. 3. Identify effects of failure. 4. Corrective action.

Failure Modes and Effects Analysis (FMEA)

Items in a typical FMEA sheet for the Shuttle program: Nomenclature and function Failure mode and cause Failure effect on subsystem Failure effect on element Failure effect on mission/crew and reaction time Failure detection Redundancy screens Correcting action/timeframe/remarks Criticality
653

Strategy to Improve
Try to eliminate the failure mode. Minimize the severity of the failure. Reduce the occurrence of the failure mode. Improve the detection.

KEY DEDUCTIONS OF FMEA

PROCESS RELIABILITY AND UPTIME ROOT CAUSE FAILURE ANALYSIS CAUSE EFFECT CHAIN OF FAILURES WITH PATTERNS PROCESS EFFECTIVENESS AND EFFICIENCY CUSTOMER COMPLAINTS AND RETURN DATA ANALYSIS

CATEGORIES OF FMEA
SYSTEM FMEA USED TO ANALYSE COMPONENTS/SUBSYSTEMS IN EARLY STAGE OF DESIGN CONCEPT DONE THRU COP AID SIMULA DESIGN FMEA USED TO ANALYSE PRODUCTS/PARTS BEFORE THEY ARE RELEASED TO MFG THRU CAE-CAD PROCESS FMEA APPLICABLE IN ANALYSIS OF FAILURE MODES CAUSED BY PROCESS DEFICIENCES SEVICE FMEA USED TO ANALYSE SERVICES BEFORE THEY REACH THE CUSTOMER THRU ENSURING OF QLTY AND RELIABILITY OF SERVICE

FMEA Process
Define system & analysis scope Construct block diagrams Assess each block for effect on system List ways that components can fail Assess failure effects for each failure mode Identify single point failures Determine corrective actions Document results on worksheet

Getting Started on FMEA What Must be done before FMEA Begins!

Understand your Customer Needs Develop & Evaluate Product/Process Concepts

=QFD

Ready?
Determine Effects of The Failure Mode

=Brain Storming

Create an Effective FMEA Team

=4 to 6 Consensus Based Multi Level Experts

= What we Define the FMEA are and are Scope not working

Develop and Drive 7 Action Plan

Severity Rating

Determine Product or Process Functions 658

Determine Failure Modes of Function

Determine Causes of The Failure Mode

Determine Controls

Calculate & Assess Risk

6 6

Detection Rating

Occurrence Rating

OUTPUT OF FMEA
POTENTIAL LIST OF FAILURE MODES POTENTIAL LIST OF CRITICAL CHARACTERISTICS AND EFFECTS POTENTIAL LIST OF FAILURE MODES PRIORITIES RANKED BY RPN POTENTIAL LIST OF PARAMETERS TO BE TESTED FOR A PROCESS SHORT AND LONG TERM PROCESS CAPABILITIES

The FMEA Worksheet

Product or Process Failure Mode Failure Effects S O E Causes C Controls V C D R Actions E P / Plans T N Resp. & p Target S Complete E Date V p O C C p p D R E P T N

1
Determine Product or Process Functions

5
Determine Controls Detection Rating

7
Develop and Drive Action Plan

Determine Effects of The Failure Mode Severity Determine Rating Failure Modes of Function

Determine Causes of The Failure Mode

Occurrence Rating

Calculate & Assess Risk

If an FMEA was created during the Design Phase of the Program, USE IT Create an Action Plan for YOUR ROOT CAUSE and Re-Evaluate the RPN Accordingly
660

PROCEDURAL STEPS IN FMEA ANALYSIS

IDENTIFY ALL COMPONENTS AND ASSEMBLIES OF THE SYSTEM LIST ALL POSSIBLE FAILURE MODES OF A SYSTEM WITH PROBABILITIES AND CAUSEEFFECT CHAIN DIAGRAM ESTIMATE EFFECTS EACH FAILURE MODE HAS ON PROCESS/PRODUCT LIST ALL POSSIBLE CAUSES OF EACH FAILURE MODE CALCULATE RPN=PROBABILITY*SERIOUSNESS*DIFFICULTY OF DETECTION

RISK PRIORITY NUMBER

HELPS IN DEFINING CRITICALITY OF FAILURE GOAL OF FMEA TO REDUCE RPN RPN=SEV* OCCUR*DET SEV 1=NO EFFECT SEV 10=HAZARD OCCURRENCE PROBABILITY 1-9 WITH 1 BEING REMOTE AND 9 CERTAIN FAILURE DETECTION IS POSSIBILITY AND EASE OF DETECTION WITH 1 BEING EASILY DETECTED AND 4 BEING DETECTED ONLY AFTER CAUSE EFFECT AND ROOT CAUSE ANALYSIS

SEVERITY CODES
1 NO EFFECT 2 VERY SLIGHT EFFECT ON PERFORMANCE. NON VITAL FAULTS OBSERVED.CUST NOT ANNOYED 3 SLIGHT EFFECT ON PERFORMANCE.CUST SLIGHTLY ANNOYED 4 MINOR EFFECT ON PERFORMANCE.FAULT DOES NOT REQUIRE IMMEDIATE ATTENDANCE.CUST OBSERVES MINOR EFFECT ON PERFORMANCE.NON VITAL FAULTS OBSERVED 5 MODERATE EFFECT ON PERFORMANCE.CUST DISSATISFIED.FAULT REQUIRES REPAIRS 6 SIGNIFICANT DEGRADATION OF PERFORMANCE BUT SYSTEM OPERATIONAL.CUST DISCOMFORT.NON VITAL PART INOPERABLE 7 MAJOR PERFORMANCE RETARDATION BUT SYSTEM OPERATIONAL. SUBSYSTEM INOPERABLE.CUST VERY DISSATISFIED 8 EXTREME SITUATION.SYSTEM INOPERABLE BUT SAFE CUST VERY DISSATISFIED 9 SERIOUS POTENTIAL HAZARD GRADUAL WHOLE FAILURE.SAFETY ENDANGERED 10 CATASTROPHIC HAZARDOUS EFFECTS SAFETY RELATED FAILURES.

OCCURRENCE PROBABILITY
RATING 1 2 3 4 5 6 7 8 9 CHANCE LIKELY 10**-8 REMOTE 10**-7 ISOLATED 10**-6 OCCASIONAL 10**-5 MODERATE LOW 10**-4 MODERATE HIGH 10**-3 RSNABLE PROBABLTY 10**-2 HIGH PROBABLTY 10**-1 IMMINENT 100% FAILURE

DETECTION RATING
1 FAULT OBVIOUS 2 FAULT DISCOVERED AFTER INSPECTION 3 FAULT DICOVERED AFTER FAILURE ANALYSIS 4 FAULT DISCOVERED AFTER PERFORMING CAUSE EFFECT AND ROOT CAUSE ANALYSIS

FMEA Scoring
Severity
Severity of Effect Extreme
May endanger machine or operator. Hazardous without warning May endanger machine or operator. Hazardous with warning Major disruption to production line. Loss of primary function, 100% scrap. Possible jig lock and Major loss of Takt Time Reduced primary function performance. Product requires repair or Major Variance. Noticeable loss of Takt Time Medium disruption of production. Possible scrap. Noticeable loss of takt time. Loss of secondary function performance. Requires repair or Minor Variance Minor disruption to production. Product must be repaired. Reduced secondary function performance. Minor defect, product repaired or "Use-As-Is" disposition. Fit & Finish item. Minor defect, may be reprocessed on-line. Minor Nonconformance, may be reprocessed on-line. No effect

Rating

10 9 8 7 6 5 4 3 2 1

666

None

Low

Moderate

High

Occurrence FMEA
Very High

Likelihood of Occurrence
Failure is almost inevitable

Scoring Failure Capability

Rate
1 in 2 1 in 3 1 in 8 1 in 20 1 in 80 1 in 400 1 in 2000 < .33 > .33 > .51 > .67 > .83 > 1.00 > 1.17 > 1.33 > 1.50 > 1.67

(Cpk) Rating 10 9 8 7 6 5 4 3 2 1

High

Process is not in statistical control. Similar processes have experienced problems.

Process is in statistical control but with isolated failures. Previous processes have experienced occasional failures or out-of-control conditions.

Moderate

Process is in statistical control.

Low

1 in 15k

Process is in statistical control. Only isolated failures associated with almost identical processes. 1 in 150k Failure is unlikely. No known failures associated 1 in 1.5M with almost identical processes.

667

Remote

Detection
Very Low

Likelihood that control will detect failure

FMEA Scoring

Rating

No known control(s) available to detect failure mode.

10 9 8 7

Low Moderate

Controls have a remote chance of detecting the failure.

Controls may detect the existence of a failure

6 5 4 3 2 1

High Very High

Controls have a good chance of detecting the existence of a failure The process automatically detects failure. Controls will almost certainly detect the existence of a failure.

668

RPN or Risk Priority Number

The Calculation !

Severity x Occurrence x Detection= RPN

669

FMEA CHART AT ASHOK LEYLAND

PROCESS-PROJECTION WELDING POTENTIAL FAILURE MODES: -THREAD TIGHT NUT DAMAGE -NUT MISSING POTENTIAL EFFECTS OF FAILURE -FITMENT PROBLEM SEVERITY 9 POTENTIAL CAUSES OF FAILURE: -CURRENT FLUCTUATION -IMPROPER WELDING OCCURRENCE 8 DETECTION METHOD-PROCESS CHECKING DETECTION 3 RPN 216

Benefits of FMEA
Contributes to improved designs for products and processes. Higher reliability Better quality Increased safety Enhanced customer satisfaction Contributes to cost savings. Decreases development time and re-design costs Decreases warranty costs Decreases waste, non-value added operations Contributes to continuous improvement

Failure Modes and Effects Analysis (FMEA)

Benefits: The FMEA provides a systematic evaluation and documentation of failure modes, causes and their effects. It categorizes the severity (criticality category) of the potential effects from each failure mode/failure cause. It provides input to the CIL (Critical Items List). It identifies all single point failures. The FMEA findings constitute a major consideration in design and management reviews. Results from the FMEA provide data for other types of analysis, such as design improvements, testing, operations and maintenance, and analysis of mission risk.
672

Fault Tree Analysis

FAULT TREE ANALYSIS

WELL ESTABLISHED TECHNIQUE FOR FINDING FAILURE RELATIONSHIP AND IS FAULT ORIENTED WHERE IT LOOKS AT ALL POSSIBLE WAYS IN WHICH A PRODUCT COULD FAIL FOCUSES ON RELATIONSHIPS BETWEEN FUNCTIONAL EFFECTS AND PRODUCT COMPONENT AND IS DONE TOP DOWNWARDS AND BEGINS BY IDENTIFYING THE TOP UNDESIRABLE EVENTS IN THE SYSTEM BASIC STEPS INVOLVED IN PERFORMING FTA : -ESTABLISHING SYSTEM DEFINITION -CONSTRUCTING FAULT TREE - EVALUATING FAULT TREE QUALITATIVELY -COLLECTING DATA SUCH AS FAILURE RATES REPAIR RATES AND FAILURE PROBABILITY AND MTBF -RECOMMENDING CORRECTIVE MEASURES WHEREAS FMEA CONSIDERS FAILURE OR INDIVIDUAL COMPONENTS OF SYSTEM ONE AT A TIME AND NOTING FAILURE CONSEQUENCES FROM BOTTOM UP FTA IS REVERSE OF FMEA USES OR /AND GATES FOR DRILLING DOWN

Fault-Tree Analysis (FTA)

FMEA and FMECA are bottom-up approaches to reliability analysis. FTA is top-down and yields a graphic portrayal of events that might lead to failure. There are various symbols used in FTA: Gate Symbol Gate Name AND gate Causal Relations Output event occurs if all the input events occur simultaneously. Output event occurs if any one of the input events occur.

OR gate

Inhibit gate

Input produces output when conditional event occurs.

Fault-Tree Analysis (FTA)

Gate Symbol Gate Name
Priority AND Gate

Causal Relations
Output occurs if all the input events occur in the order from left to right.

m n inputs

Exclusive OR Gate

Output event occurs if one, but not both, of the input events occur.

m-out-of-n gate

Output event occurs if m-out-of-n input events occur.

Qualitative Fault Tree Analysis (FTA)

X-34 Hydraulic System Example
Inadequate Power to Pump Package 1 Motor

MTR-1-PWR Page X

Pump Package 1 Motor Controller Off / Low

Inadequate / No Power to Pump Package 1 Motor Controller

MTR-CTRL-1-OFF

MTR-CTRL-1-PWR

Pump Package 1 Motor Controller Fails Off / Low (Component Failure) MTR-CTRL-1-FOF

Pump Package 1 Motor Controller Commanded Off / Low (Software / Pressure Transducer Error) MTR-1-CTRL-CMD-OFF

Pump Package 1 Battery Failure (Loss of Charge / Inadequate Charge) PMP-PKG-1-BAT-F

Pump Package Relay Fails / Commanded Off

PMP-PKG-1-REL-OFF

Page XX Pump Package 1 Relay Fails Off Pump Package 1 Relay Commanded to "Off" Position

PKG-1-REL-FOF

PMP-PKG-1-CMD-OFF

Quantitative Fault Tree Analysis (FTA)

X-33 Methane Ground Storage and Loading Example
Inability to Load Methane (CH4)

NO-LOAD-CH4

CH4 Not Supplied Through Manual Valve V-1537

VIA-VLV-1537

Loss / Blockage of CH4 in Loading Line (Post V-1537)

LOAD-LINE

Valve V-1557 Fails Open

Valve V-1537 Fails Closed

CH4 Vented Through Load Line

CH4-LOAD-VNT

CH4 Transfer Blocked Through Load Line

CH4-LOAD-BLK

VLV-1557-OP

VLV-1537-CL

3.90E-04 Solenoid Operated Valve SOV-1549 Mech. Fails Open

SOV-1549-MECH-OP

3.90E-04 Solenoid Operated Valve SOV-1549 Solenoid Fails Open

SOV-1549-SOL-OP

Relief Valve RV1552 Open

RV-1552-OP

Solenoid Operated Valve SOV-1561 Fails Closed

SOV-1561-MECH-CL

Check Valve CV1548 Fails Closed

CV-1548-CL

6.50E-06

3.90E-04

3.90E-05 Solenoid Operated Valve SOV-1561 Mech. Fails Closed Solenoid Operated Valve SOV-1561 Solenoid Fails Closed
SOV-1561-SOL-OP

2.86E-08

678

SOV-1561-MECH-OP

6.50E-06

3.90E-04

Fault-Tree Analysis Steps

Generic Fault-Tree Analysis Steps are:
1. Define the top or primary event. This is the failure condition under study. 2. Establish the boundaries of the FTA. 3. Study the system to see how the various elements relate to one another and to the primary event. 4. Construct the fault tree, starting with the primary event and working downward. 5. Analyze the fault tree to identify ways of eliminating events that lead to failure. 6. Prepare a corrective action and contingency plans for preventing and/or dealing with failures. 7. Implement the plans. 8. This is iterative return to step one.

Root cause analysis of failure

Getting to the "Root" of the Problem

Sometimes the thing we think is a problem is not the real problem, so to get at the real problem, probing is necessary Root Cause Analysis is an effective method of probing it helps identify what, how, and why something happened Definition of root cause:
Specific underlying cause Those that can reasonably be identified Those that management has control to fix

ROOT CAUSE ANALYSIS OF FAILURE

UNDERTAKEN TO SEARCH FOR ROOT OF PROBLEM EFFECTIVE RCA IS ABOUT SEEKING SOLUTIONS THAT CONTROL CAUSES OF PROBLEMS LOOK FOR CAUSES FROM EFFECTS EACH CAUSE OR SET OF CAUSES CAUSE THE NEXT EFFECT(S) SOLUTION IS ATTACHED TO THE CAUSE THAT PREVENTS THE PROBLEM FROM REOCCURING UNDERSTANDING CAUSE EFFECT RELATIONSHIP IS VITAL IN EFFECTIVE MAINTENANCE PROGRAM TECHNIQUE FOR FAULT ANALYSIS WHICH TRACES ROOT CAUSE IS CALLED 5-WHY ANALYSIS

ROOT CAUSE ANALYSIS OF FAILURE

SEARCH ROOT CAUSE OF PROBLEM EACH CAUSE PRODUCES 1 OR MORE NEXT EFFECTS SOLUTION IS ONE THAT PREVENTS CAUSE FROM REOCCURING QUESTION WHY 5 TIMES MAY LEAD TO ROOT CAUSE OF PROBLEM

Root Cause Analysis Technique Five Whys

Five Why's refers to the practice of asking, five times, why the problem exists in order to get to the root cause of the problem
Employee turnover rate has been increasing

Why?

Why?

Why?

Why?

Why?

Employees are leaving for other jobs

Employees are not Employees feel satisfied that they are underpaid

Other employers are paying higher salaries

Demand for such employees has increased in the market

ROOT CAUSE ANALYSIS

Eroding Profits

Reduced Sales

Rising costs

Poor Cash flow

Contd /-

ROOT CAUSE ANALYSIS

Reduced Sales

Poor customer service

Increased competition

Uncompetitive pricing

Contd /-

ROOT CAUSE ANALYSIS

Poor customer service Increased competition Uncompetitive pricing

Delayed delivery Poor quality

Incorrect shipment

5 Why Analysis Effects

Cost of failure/non-conformity

ROOT CAUSE ANALYSIS

PROBLEM IS REDUCED SALES CAUSE 1:WHY?CUSTOMERS REJECTED PRODUCT CAUSE 2:WHY?QUALITY WAS POOR CAUSE 3:WHY?INCORRECT RM CAUSE 4:WHY?RM NOT AS PER SPECS CAUSE 5:ROOT CAUSE:NO PROCEDURES IN PLACE TO CERTIFY SPECS GIVEN TO SUPPLIER

STAGES IN ROOT CAUSE ANALYSIS

UNDERSTANDING THE PROBLEM DATA COLLECTION AND REVIEW DATA ASSESSMENT ANALYSIS AND ROOT CAUSE DETERMINATION CORRECTIVE ACTION TAKEN CORRECTIVE ACTION REPORTING AND ANALYSIS

 PROBLEM-CONVEYOR BELT GOT CUT ALONG WIDTH WHY BELT CUT--FOREIGN MATRL STUCK WHY FOREIGN MATRL STUCKENTRAPPED AROUND ROUTE WHY ENTRAPPEDMATRL NOT SCREENED WHY MATRL NOT SCREENEDINADEQUATE PROCESS CONTROL ROOT CAUSEWHY INADEQUATE PROCESS CONTROL SCREENING FACILITY NOT AVAILABLE

5 WHY ANALYSIS OF CONVEYOR BELT AT ASHOK LEYLAND

QUALITY FUNCTION DEPLOYMENT

QUALITY FUNCTION DEPLOYMENT

METHODOLOGY WHERE ALL KNOWLEDGE ABOUT NEEDS AND WANTS OF CUST ARE INCORPORATED INTO ALL STAGES OF DESIGN,MFG,DELVY AND SERVICES QFD IS METHODOLOGY WHERE ALL REQMNT ARE UNDERSTOOD AND INCORPORATED FOR BENEFIT OF CUSTOMERS QFD EMPLOYS A STEP BY STEP APPROACH FROM CUSTOMER NEEDS AND EXPECTATIONS THRU 3 PLANNING PHASES OF: -PRODUCT PLANNING PRODUCT DEVELOPMENT -PROCESS DELIVERY AND SERVICES QFD IS PROCEDURE WHICH HELPS TO BUILD QLTY INTO UPSTREAM PROCESSES AND INTO NEW PRODUCT DEV VOICE OF CUSTOMER IS CARDINAL TO QFD IMPORTANT TO DETERMINE WHO ACTUALLY IS THE CUSTOMER INTERNAL OR EXTERNAL LEVELS OF CUSTOMER EXPECTATIONS: -BASIC FUNCTIONAL EXPECTATION PERFORMANCE EXPECTATIONS -SERVICE EXPECTATIONS -INVESTMENT PROTECTION EXPECTATIONS -MINIMUM COST OF OWNERSHIP

QUALITY FUNCTION DEPLOYMENT

CUSTOMER REQUIREMENTS AND PERCEPTIONS PRODUCT PLANNING(TRANSLATION OF REQMNT INTO FUNCTIONAL FEATURES AND SPECIFICATIONS) DESIGN REQUIREMENT TRANSLATED INTO DESIGN ATTRIBUTES AND ENGINEERING MEASURES PART DEPLOYMENT AND CHARACTERISTICS PROCESS PLANNING- OPERATIONAL STEPS AND MEASURES OPERATIONAL TASKS,MEASURES,CONDITIONS CONTROLS DEPLOYED THRU PRODUCT PLANNING, PART DEVELOPMENT,PROCESS PLANNING,PRODUCTION PLANNING,SERVICE PLANNING VARIOUS DEGREES OF PLANNING INVOLVED IN QFD INCLUDE: -PRODUCT PLANNING -PART DEVELOPMENT -PROCESS PLANNING -PRODUCTION PLANNING -SERVICE PLANNING -

LEVELS OF CUSTOMER EXPECTATION

BASIC FUNCTIONAL EXPECTATIONS PERFORMANCE EXPECTATIONS SERVICE EXPECTATIONS INVESTMENT PROTECTION EXPECTATIONS MINIMISED COST OF OWNERSHIP EXPECTATIONS

QFD PROCESS
REQUIRES THAT COMPANY ADOPT A CUSTOMER ORIENTED PHILOSOPHY QFD HAS MULTIPLE MATRICES FOR TRANSLATRING CUSTOMER NEEDS INTO PRODUCT REQMNT AND SYSTEM SPECS PHASES EMPLOYED ARE: -CONVERTING CUSTOMER REQMNT INTO TECHNICAL REQMNT -CONVERTING TECHNICAL REQMNT INTO CHARACTERISTICS OF KEY PARTS OF PRODUCT -CONVERTING CHARACTERISTICS OF KEY PARTS INTO THE PROCESS TO MFG OF THESE PARTS -CONVERTING CHARACTERISTICS OF THE MFG PROCESS INTO DETAILED PRODN PROCEDURES AND CONTROL METHODS 1 CUSTOMER REQUIREMENT TECHNICAL ATTRIBUTES -CUSTOMER PERCEPTIONS -ENGINEERING MEASURES 2 DESIGN MATRIX -TECHNICAL ATTRIBUTES -PRODUCT FEATURES MEASURES 3 OPERATING MATRIX PRODUCT FEATURS -PROCESS STEPS MEASURES -PROCESS STEPS 4CONTROL MATRIX -PROCESS STEPS OPERATIONAL TASKS,CONDITIONS,CONTROLS MEASURES

IMPLEMENTING THE QFD PROCESS-SEQUENCE OF ACTIONS OBTAIN CUSTOMER NEEDS AND PERCEPTIONS
TRANSLATE CUSTOMER NEEDS INTO PRODUCT/ SYSTEM REQMNT & SPECS MEASURES OF CUSTOMER NEEDS ARE TRANSLATED INTO DESIGN ATTRIBUTES AND ENGINEERING MEASURES DESIGN ATTRIBUTES ARE TRANSLATED INTO PRODUCT/SERVICE FEATURES REQUIRED FEATURES ARE BASED DIRECTLY ON MEASURES OF CUSTOMER NEEDS FEATURES ARE THEN USED TO DEFINE PROCESSES AND OPERATING CONDITIONS THAT ARE REQUIRED TO DELIVER VALUE TO CUSTOMER CONTROLS ARE DEFINED FOR OPERATING CONDITIONS HOUSE OF QLTY DESIGN MATRIX OPERATING MATRIX CONTROL MATRIX

BENEFITS OF QFD
PROMOTES BETTER UNDERSTANDING OF CUSTOMER DEMANDS AND COMPLAINTS AND SIMPLIFIES REMEDIAL ACTION PROMOTES BETTER UNDERSTANDING OF DESIGN INTERACTIONS INVOLVES MFG IN DESIGN PROCESS IMPROVES DOCUMENTATION OF DESIGN AND DEVELOPMENT PROCESS REDUCES NUMBER OF ENGG CHANGES BRINGS NEW DESIGNS TO MARKET FASTER REDUCES OVERALL COSTS OF DESIGN AND MFG FACILITATES IDENTIFICATION OF CAUSES OF CUSTOMER COMPLAINTS AND MAKES IT EASIER TO TAKE PROMPT ACTION INCREASES CUSTOMER SATISFACTION USEFUL TOOL FOR IMPROVING PRODUCT QLTY MINIMIZES REJECTS AND REWORK MINIMIZES CUSTOMER CLAIMS SUBSTANTIALLY

BENEFITS OF QFD
INREASES THE ASSURANCE OF MEETING VOICE OF CUSTOMER WITH A NEW PRODUCT PROVIDES A MECHANISM TO TARGET SELECTED AREAS WHERE COMPETITIVE ADVANTAGE WOULD HELP INCREASE MARKET SHARE QFD REDUCES NUMBER OF ENGG CHANGES AS WELL AS ENGG COSTS IDENTIFIES CONFLICTING DESIGN REQUIREMENTS FOCUSES COMPANY ACTIVITIES ON CUSTOMER ORIENTED OBJECTIVES REDUCES PRODUCT DEVELOPMENT CYCLE REDUCES COST OF ENGG , MFG AND SERVICE IMPROVES QLTY OF PRODUCTS AND SERVICES

SMED(SINGLE MINUTE EXCHANGE OF DYES)

Traditional Setup Practices

Material movement occurs after the machine is turned off.

Completed products are transferred to next operation. Raw material is moved after the machine is stopped.

Detection of defects or missing equipment is noticed when the machine is running.

Setup tooling delivered after the changeover has begun. Defective product identified after internal setup has begun.

Defective tooling, fixtures, setup instruments are noticed after the machine is turned on.

The operator notices that equipment is missing after internal setup has begun.

700

WHAT IS SMED
MEHOD DEVELOPED BY SHINGO AIM OF APPLYING SMED METHODOLOGY IS TO SYSTEMATICALLY REDUCE TIME LOST IN PRODN FOR MACHINE SETUPS FROM HOURS TO MINUTES APPLIES TO ALL PRODN ACTIVITIES AND IS AN IMPORTANT INITIATIVE IN THE LEAN MFG AREA VERY RELEVANT IN THE DAYS OF INCREASED REQUESTS FOR CUSTOMISED PRODUCTS AT SHORT NOTICE SMED LEADS TO REDUCED LEADTIMES

Definition of Changeover Time

The time taken from the last good product on one run to the first good product on the next run.

The Best Setup is

No Setup
703

Setup reduction methodology

Many key ideas developed by Shigeo Shingo Shingo called it SMED Single minute exchange of dies Means single digit, i.e. Less than 10 minutes Example: 1000-ton press Before: 4 hr After: 3 min Improvement: 98.7%, or a factor of 80

704

Set-up time Reduction

Why do set-up reduction activities? Lower set-up times More frequent set-ups Smaller batch sizes Shorter lead times Competitive advantage

How will Quick Changeover help to improve our process?

A reduction in changeover time gives us :
a reduction in inventory a reduction in leadtime a reduction in waste and improvements in yield and quality

Quick Changeover techniques will make us more competitive in a marketplace which is becoming more and more demanding.

Setup reduction
Typical setup activities
Prepare Attach machine parts Measure, center Adjust 30% 5% 15% 50%

707

BATCH CHANGEOVER ACTIVITIES

IN CLASSICAL CHANGEOVER BETWEEN TWO BATCHES THE FOLLOWING ACTIVITIES TAKE PLACE: -FINISH ACTUAL BATCH -DISMOUNT OLD TOOLS -STOP MACHINE -CHANGE TOOLS -ADJUST MACHINE TO NEW REQMNT -START MACHINE -TRIALS -PROCESS NEW BATCH CHANGEOVER SEQUENCE GENERALLY DONE WITHOUT STD METHOD OR PROCEDURES AND DURATION DEPENDS ON INDIVISUAL SKILLS CHANGEOVERS CAUSE PRODUCTIVITY LOSS AND CREATES TEMPTATIONS FOR LARGER EBQ

4 Main Stages of Changeover

Prep

Adjust Setting -ments Change

Actual

Typical Setup Process:

Operation Preparation (before & after) checking dies, jigs, raw material, Removing blades, jigs, and mounting fresh ones,( ink, sleeve) Centering, setting parameters circulating water, pressure) Trial runs and final adjustments portion of Time 30%

5%

15% 50%

APPROACH OF SMED
SETUP TIME REDUCTION IS OF CRUCIAL IMPORTANCE FOR PROFITABILITY APPROACH OF SMED IS TO REDUCE OUTPUT AND QLTY LOSSES DUE TO CHANGEOVER SMED APPROACH IS RECOMMENDED BY JIPM TO REDUCE SETUP LOSSES

EMPLOYEE PARTICIPATION IN MANAGEMENT

Continuum of Employee Participation

No Involvem ent

Receive Informati on

Joint Consultati on

Employe Joint Decision- e Control Making

Source: Blyton and Turnbull

Control Level Co-determination Collective Bargaining Consultation Communication Information Scope of Involvement

Linkages within High Performance Work Systems

HR Practices and operating systems designed and bundled to enhance Ability Motivation Opportunity

Expanded employee potential and increased discretionary effort

Improved company performance

Improved systemic response to employee effort Supportive company, industry and societal context

Improved worker outcomes

Guest (2000) Link HRM and Business Performance

HR Strategy

Business Strategy

HR Practices

HR Effectiveness HR Outcomes
Quality of Service Financial Performance Productivity

Employee Involvement
Employee Involvement includes: Teamworking (including self-managing teams) Team Briefing Downward communications Two-way communications Suggestion schemes Problem-solving groups Financial participation (includes profit sharing schemes and ESOPs)

And Engagement?
Engagement is an idea whose time has come.it represents an aspiration that employees should understand, identify and commit themselves to the objectives of the organisation they work for..(however).HR professionals need to recognise that engagement is a strategic issues that cannot simply be left to manage itself (CIPD 2005, 2006) An illustration of the assumed links between engagement and other factors is contained on the next slide

Opps for upward feedback

Employee Engagement

Feeling informed

Engagement

Mgt commitment to organisation

Performance

Managers fairness re: issues

Intention to Stay
Treating employees With respect

What Does Evidence Tell Us?

Management control involvement on managements terms? Emphasis on top-down communications unitarist More communication and consultation far less negotiation Is management listening? Management cultures is knowledge still power?

CREATIVITY BASED TECHNIQUES

New Challenge
A company manufactures glassware. The last step of the process is to wrap glasses individually in used newspapers and then place them in a specially designed box. The box is then sealed. Management notices low productivity with this last step, observing that workers occasionally stop to read the newspapers? What can management do to increase productivity?

Envisioning Techniques
Linear
step-by-step; scenario planning, etc.

Intuitive
brainstorming

Stimulants to Work Creativity*

1) FREEDOM in deciding work to do or how to do it 2) CHALLENGE to work hard on important projects 3) RESOURCES needed to do the work 4) ENCOURAGEMENT from a supervisor who is a good work model, sets appropriate goals, supports and has confidence in the work group 5) WORK GROUP SUPPORTS such as diverse skills, people who communicate well, are open to new ideas, constructively challenge one anothers work, trust and help each other, and feel committed to their work 6) ORGANIZATIONAL ENCOURAGEMENT in a culture that supports creativity and communicates a shared vision of organization

Obstacles to Work Creativity

1) ORGANIZATIONAL IMPEDIMENTS such as internal political problems, harsh criticism of new ideas, destructive internal competition, avoidance of risk and overemphasis on the status quo 2) WORKLOAD PRESSURES such as extreme time pressure, unrealistic expectations, or distractions

CREATIVE PROBLEM SOLVING

726

CREATIVE PROBLEM SOLVING

What is creative problem solving?

727

Some Additional Thoughts

The creative person uses information to form new ideas. The real key to creative problem solving is what you do with the knowledge. Creative problem solving requires an attitude that allows you to search for new ideas and use your knowledge and experience. Change perspective and use knowledge to make the ordinary extraordinary and the usual commonplace.
728

DEFINITION

Creative problem solving is - looking at the same thing as everyone else and thinking something different.

729

LETS TALK ABOUT:

z Why dont we think creatively more often? z What are the barriers that get in our way?

730

BARRIERS THAT GET IN OUR WAY

Time Why change? Usually dont need to be creative Habit Routine Havent been taught to be creative
What are some other barriers that get in our way?
731

MENTAL BLOCKS

Mental blocks are reasons (attitudes) why we dont think something different.

732

CREATIVE PROBLEM SOLVING PROCESS

STEP 1. State what appears to be the problem.
The real problem may not surface until facts have been gathered and analyzed. Therefore, start with what you assume to be the problem, that can later be confirmed or corrected.
733

CREATIVE PROBLEM SOLVING PROCESS

STEP 2. Gather facts, feelings and opinions.
z What happened? z Where, when and how did it occur? z What is its size, scope, and severity? z Who and what is affected? z Likely to happen again? z Need to be corrected? z May need to assign priorities to critical l elements.

734

CREATIVE PROBLEM SOLVING PROCESS

STEP 3. Restate the problem.
The real facts help make this possible, and provide supporting data. The actual problem may, or may not be the same as stated in Step 1.

735

CREATIVE PROBLEM SOLVING PROCESS

STEP 4. Identify alternative solutions.

Generate ideas. Do not eliminate any possible solutions until several have been discussed.
736

CREATIVE PROBLEM SOLVING PROCESS

STEP 5. Evaluate alternatives.

z Which will provide the optimum solution? z What are the risks? z Are costs in keeping with the benefits? z Will the solution create new problems?

737

CREATIVE PROBLEM SOLVING PROCESS

STEP 6. Implement the decision!

z Who must be involved? z To what extent? z How, when and where? z Who will the decision impact? z What might go wrong? z How will the results be reported and verified
738

CREATIVE PROBLEM SOLVING PROCESS

STEP 7. Evaluate the results.

z Test the solution against the desired results. z Make revisions if necessary.

739

TOOLS & TECHNIQUES

BRAINSTORMING Purpose: To generate a large number of ideas in a short period of time.

740

Brainstorming
Getting Ideas Before You Write

To successfully compete organizations will need to:

Increase the number and quality of their innovations Select the most competitive innovations from the pool of generated options

What is brainstorming?
Brainstorming is a means of generating ideas. Brainstorming can be used to identify alternatives, obtain a complete list of items and to solve problems. There are a variety of brainstorming techniques. The common principle of brainstorming is to set aside the restrictive thinking processes so that many ideas can be generated.

743

Creativity is ...

A state of doing, not being If you want to be creative you need to do creative things

Brainstorm - What is it?

A sudden inspiration, idea, or plan.

(Webster)

You can use brainstorming in a project when:

When to use brainstorming?

Developing the solution definition, particularly in identifying alternative solutions. Identifying all potential risks on a project. Developing the Work Breakdown Structure (identifying all the deliverables and work items). Dealing with difficult problems that arise during the course of the project.

746

BRAINSTORMING
Rules for Brainstorming:
The more ideas the better! No discussion No idea is a bad idea Build on one anothers ideas Display all ideas
747

Brainstorming
Principles for generating ideas
have clearly defined subject try to maintain criticism free setting when ideas generated,
ideas flow freely, not be hampered by critical comments or attacks from other group members

all ideas receive approval

or neither praised nor criticized

Brainstorming
Principles for generating ideas
related atmosphere sufficient time small group leader or not?

 Brainstorming can:

Why use brainstorming techniques?

break through traditional thinking about a problem. generate new ways of thinking. provide an environment for building on new ideas. reduce the tendency to prematurely discard new ideas. facilitate team building. encourage team problem solving.

750

The brain storming process has two fundamental stages:

Divergence, or generating ideas & Convergence, or evaluating ideas.

DIVERGENT V/S CONVERGENT THINKING

Creativity flourishes when divergent thinking is separated from convergent thinking.

Tools for Brainstorming Use the divergent rules to create and capture these ideas:Brainstorming
Goals in Idea Capture
Create as many ideas as possible Get input from as many good minds as possible

Goals in Idea Analysis

Select right ideas Analyze ideas

Step 1: Defining the problem

What is the paradigm that you are working with?? What you think is the problem, is probably not the problem. Generate lots of problem statements - dont try to solve the problem right away, rather try to solve the right problem. This step is probably the most important:
if this is done poorly all the work following this is irrelevant.

Step 2: Planning
The basic questions you should consider before doing a brainstorming session: Who should I invite to participate ? When should I hold the meeting? Where should I hold the brainstorming session ? Why should I use Brainstorming?
And

What should I brainstorm?

Following answering those questions you must consider: How should I do the Brainstorming session?

In identifying the right people for Brainstorming consider including whom??:

Users of the product Customers/sponsors Potential Team participants Open and creative individuals Subject Matter Experts, Generalists

Step 2: Why it is critically important to involve the users??: The Railway Paradox Problem Statement: When railroads are asked to establish new stops on the schedule, they study the requirements, by sending someone to the (requested stop) at the designated time to see if someone is waiting for the train. Of course, nobody is there because no stop is scheduled, so the railroad turns down the request because there is no demand.

Step 2: Conclusion:

Decision makers must talk to the ultimate users of the product to establish the true need for the product or the improvement.

Step 2: Planning: Why should I use Brainstorming??

Brainstorming is used to examine all the options available needed to solve the defined problem
It is used to help ensure that you are solving the problem in the best manner possible.

Step 2: Planning: When should I hold the

meeting?
Select a time that is not in time conflict with other activities Hold the Session only after the Problem has been defined Chose a time and duration that can accommodate the Participants
Participants should not be under time pressure in doing a brainstorm

Do not allow interruptions

People leaving the meeting to do something urgent No phone interruptions

Step 2: Planning:What should I brainstorm?

A clear and written definition of the real problem. Set criteria and their importance

Step 3: Conducting Brainstorming Session

Techniques to Improve Quality of Brainstorming Session Output

Basic Rules in How to Conduct a Brainstorming Session

Make sure the team understands and agrees to the problem at hand. Select a discussion Leader (Facilitator) Select a scribe whose job is to write without censorship ideas given by participants. Lay down the rules of divergent thinking.
No criticism, no negative reactions, etc (see below) No Analysis of the ideas Be patient with silence Allow mutation and growth of ideas

Basic Rules in How to Conduct a Brainstorming Session How do you know you are doing the right thing? Heres a summarycheck list.
No criticism or debate of ideas Let the imagination soarthe wilder the idea the better Need for a safe uncritical and friendly meeting Be patient with silence Test: if no one is laughing, it is not a good session Go for quantity (but dont go hog wild either) Mutate and combine ideas (build not destroy) Do your brainstorming in a manner suitable for you and your team but observe the basic rules! Only Later Concentrate ideas to manageable number using methods

Hints on Open your mind to new ideas

When you always do what youve always done, you always get what you always got. - Socrates How else can I do this? What If? How can I use something that doesnt fit with this at all? Careful, cautious people, always casting about to preserve their reputations, can never effect a reform. Susan B. Anthony

What if you get stuck? What should I do??

Forced Connections
When your mind goes blank try selecting an unrelated word, object or picture and ask,
When you look at this ____, what ideas do you get for how to solve the problem

Scamper
Ask yourself, what might you substitute, combine, adapt, magnify/minimize, put to other uses, eliminate, or reverse.

Gap Analysis
How many gaps can you fill/eliminate/simplify?

Analyzing Results of Brainstorming Session: Making the final list. Methods used:
Voting with a threshold All participants are given 5 votes (say)
Participant can vote any way they want for the posted ideas Idea with most votes from group gets included This cycle could be repeated with a second thresholding vote

Voting with campaign speeches

Give (say) 3 votes per person. Tally all votes. Ideas with 1 or more votes get considered. Select a person who did not vote for the idea to promote the idea (positively) Repeat voting after the speeches Ref: D.C Gause & G.M
Weinber: Exploring Requirements: Quality before Design

Creativity Promoting Environment

Freedom To approach the work or problem in ones own way. Challenging Work The individuals skills are challenged. Sufficient Resources Access to data or the ability to create it. Sufficient time to do the work

 Supervisory Encouragement of Creativity Acceptance of dumb ideas Acceptance of mistakes Supportive Work Group Peer support and acceptance Culture of acceptance of new ideas Organizational Encouragement of Creativity

Factors that shape climate:Obstacles to Creativity

Organizational Impediments
Structure of organization Not allowed to make a mistakemust always look good Idea stealing by superiors or peers Business Culture
Bottom line is all important Quarterly Financial Report must look good Short term focus vs long term view Risk aversion Politics of organization

Workload Pressures (individual, team, organization)

We dont have time for that. But some how we all have lots of time to do the work over and over again !!!

Right Braining
Use of drawing to spur right-brain artistic ideas Establish the important attributes of what you want to design visually or graphically Sketch (quickly) each attribute Then, pair randomly the various individual pictorial attributes Continue until all attributes are included.

Ref: D.C Gause & G.M Weinber: Exploring Requirements: Quality before Design

Right Brain Methods

Right side of brain: visual, graphical Left side of brain: verbal, analytical All ideas so far are largely left brain ideas Techniques:
Use mapping tools: sketches, drawings, maps, cartoons, etc.
Ref: D.C Gause & G.M Weinber: Exploring Requirements: Quality before Design pg 123

Braindrawing
Use pictures sketches etc to capture ideas Does not use words in description

Ref: D.C Gause & G.M Weinber: Exploring Requirements: Quality before Design

Delphi Method 1
Process 2:
Questionnaire is distributed to the members. Each member jots down as many ideas as possible All items are collected and redistributed by the coordinator to the participants. They again add to the ideas or modify by variation. This continues until a stable set of ideas result.

Problem
very expensive, time consuming and tainted by peer influence
(1) Rand Corp late 1960s (2) P H Francis: Principles of R&D Management pg 169

Setting the scene

Explain the brainstorming technique. Specify the rules. Loosening up: use a free thinking exercise and/or a practice brainstorming session*. For example: how could safety of taxi drivers be improved?

* The facilitator provides exercises and determines when the participants are ready to proceed with the technique.
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BRAINSTORMING GUIDELINES
Remember Creative Thinking

1. Practice question: How Do We Motivate Our Local Optimist Club Members?

Re-state the question to keep the process going

What did you mean by that?!!!

2. Clarify understanding. Once all the ideas have been generated (it may take approximately 5 to 6 minutes), review ideas offered.

776

BRAINSTORMING GUIDELINES
Lets combine ideas!!!

3. Combine items that are similar and/or eliminate duplicates. 4. Completion.

Are we done yet?

777

MIND MAPPING
Definition : A visual picture of a group of ideas,
concepts or issues.

Purpose :
Unblock our thinking.

See an entire idea or several ideas on one sheet of paper. See how ideas relate to one another. Look at things in a new and different way. Look at an idea in depth.
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Limitations

Brainstorming

discussion generally succumbs to influence of few individuals due to status, personality & other forces

Post idea generation

analysis is separate function, apart from idea generation ranking of ideas by group members task force to review suggestions & make recommendations group leader to choose

NOMINAL GROUP TECHNIQUE

What is NGT?
Basic process:
Team members silently write down ideas Ideas are shared and discussed Team members vote

Nominal Group Technique (NGT)

nominal refers to process in which individuals are together in a group,
in name only since verbal exchange is excluded or limited

reflects silent and independent generation of ideas

Why use NGT?

Helps eliminate biases and peer-pressure Encourages participation from all team members All opinions are heard and weighted equally

What inhibits people?

They dont want conflict. They dont want to be criticized.

Advantages
More unique ideas More participation Members have greater sense of contribution Time-efficient Better decisions Productive

Disadvantages
Addresses only one problem at a time Mechanical Requires preparation Hard to combine ideas at the end for even better output

Best to use NGT when

Some members are very vocal. People work better in silence. Some members are reluctant to participate. There is concern that enough ideas will be generated. Some participants are new to the team. The issue is controversial and the discussion could become heated.

Stages

Preparation

Introduction Idea Generation

Idea Sharing

Discussion Voting/Ranking

Preparation
A team is assembled to include participants from varying areas. Materials needed:
Pen and paper for each member Flip chart Markers Tape Sticky notes (optional)

Preparation: members
Members can be heterogeneous, unlike a focus group
heterogeneous groups can be more creative there can be communication difficulties
individuals should be able to speak a common language
if have doctors and patients, doctors should not use medical jargon could have a variety of social scientists

Preparation: members
members in an NGT should be
interested in the problem have either experience or education which makes them a resource to the group flexible so they can openly explore various points of view

selection bias
if suspect, try a different mixture of participants in future groups

Introduction
A facilitator introduces themselves, explains the NGT process. The key problem or question is presented, explaining the purpose of the meeting. Telling team members about problem sooner allows them to come prepared.

Introduction
Role of Facilitator: A facilitator is chosen from among group members. Their responsibilities include:
Helping group avoid conflict Encouraging participation Keeping time Facilitating rounds Recording ideas

Idea Generation
Individuals silently and independently write down as many ideas as possible during pre-determined time period. (usually 10 minutes)

Idea Sharing
There are various approaches to idea sharing, but the same principles apply:
Everyone has equal chance to share their ideas All ideas shared are recorded on flip chart, except repeat ideas There is no discussion during this stage

Discussion
c Now ideas are disussed. Members can ask for details or clarification. The purpose is clarification not changing peoples opinions. Ideas are not eliminated. Ideas can be re-worded.

Discussion
Facilitator tries to keep all members involved, continue the flow of discussion, and not get caught on any point for too long. This phase typically lasts 3040 minutes.

Discussion
If there are many ideas (over 40), there can be an elimination stage before voting. Members can choose to eliminate their own ideas, or combine ideas together. Alternatively, idea elimination can require approval by all members.

Voting/Ranking
Voting or ranking determines the NGTs output. Facilitator should number the ideas to make voting easier. Members either vote anonymously, with the facilitator totaling points, or they can publicly write their votes on the flipchart.

Voting/Ranking
Voting method 1: Members can vote for ideas based on a chart like the following:
Number of ideas Less than 20 20-35 Over 35 Number of votes 4 6 8 Value of votes 1, 2, 3, 4 1, 2, 3, 4, 5, 6 1, 2, 3, 4, 5, 6, 7, 8

Points for each idea are totaled after all members vote.

Voting/Ranking
Voting method 2: Members rank all ideas, with the highest number as the most favored idea. Points are totaled after all members rank ideas. The idea with the most points wins.

Voting/Ranking
If the top 5 ideas are all within several points of each other, a second round of votes will best determine the real winner. Repeat the voting stage using only the top 5 ideas.

Visibility
Throughout the process, all charts should remain visible. Tape them to the walls around the room.

Example of NGT
The faculty at X-University is concerned that the students are not getting internships and jobs. A team is created involving faculty, students, and recruiters. The goal is to identify the cause of this problem. After this NGT process, the faculty will create an action plan based on the outcome.

Example of NGT
Statement of Problem: Why arent students getting internships and job offers?

Example of NGT
Individual idea generation:
The job market is slow. Poor interview skills. Theyre not networking.

Not enough recruiters come. Their resumes are weak. Students are unwilling to relocate. Students are unprepared. No internships prevents them from getting jobs later on. The career fair is not productive. Everyone wants to stay instate.

Example of NGT
Idea Sharing:

Example of NGT
Discussion:
Should we combine unwilling ness to relocate with students wanting to stay instate?
Is the career fair not productive because there are too many people or too few? Can we re-word that to say, There arent job opportunities through the career fair?

What do you mean by poor interview skills? Does that include lack of training?

Example of NGT
Idea # Rank 7 6 5 4 3 2 1 Idea # 1 Rank 3+1+1=5 4+2+3=9 7+6+7=20 6+3+6=15 2+4+2=8 1+5+4=10 5+7+5=17

Voting/ranking:
1. Unwilling to relocate 2. Poor interview skills 3. Weak resumes 4. Career fair doesnt offer very many job opportunities 5. Students arent networking. 6. Not enough recruiters. 7. Bad job market

3 4 7 2 1 5 6

List of ideas Individual rankings Combined points

2 3 4 5 6 7

Definition:

In summary: NGT allows groups to reach optimal solutions by generating ideas privately, sharing ideas, discussing, and voting. It eliminates biases and groupthink. Members can participate equally with less intimidation. Try using NGT for your organizations future questions and challenges.

SYNECTICS
THE ART OF ENHANCING CREATIVE THOUGHT

 is a teaching approach using metaphors and analogies as tools to help students gain new insights and perspectives for use in the writing process the basic tools of learning are analogies that serve as connectors between the new and the familiar good teaching traditionally makes ingenious use of analogies and metaphors to help student visualize content

Synectics, from the Greek word synectikos, means bringing forth together or bringing different things into unified connection

How long has Synectics been around?

Take a guess?

40 Years

Definition
Synectics are: teaching approaches using metaphors and analogy to increase the understandings of students about a particular topic or issue. They can also help develop student's ability to think creatively because it can deliberately force strange things together and form uncommon connection.
http://www.centralischool.ca/~bestpractice/synectics/process.html

Why their thinking from 1. help students to move Synectics? the literal to non-literal (promotes high order thinking skill) 2. guide students to identify similarities and differences to enhance students' understanding of and ability to use knowledge. 3. assist students to identify similarities and differences which enhances students' understanding of and ability to use knowledge. 4. enhance students understanding through representing similarities and differences in graphic or symbolic form. 5. enrich projects and writing by giving students another form of representation.

Synectics
provides an approach to creative thinking that depends on looking at what appears on the surface as unrelated phenomenon and draws relevant connectionsIt helps users break existing mind sets and internalize abstract concepts (Gordon, 1961) it can be used with all ages and works well with those who withdraw from traditional methods (Couch 1993)

Synectics is well-supported by research, and is easily integrated with technology.

The Teachers Challenge

Synectics opens the door to creative thinking through metaphors and analogies.

Synectics Approach involves 6 Strategies

Describe the topic Create direct analogy Describe Personal Analogies Identify Compressed Conflicts Create a New Direct Analogy Reexamine the Original Topic

Unlocking Creative Thinking

Creative problem solving, breaking set, and thinking outside the box...these are all necessary skills in todays academic environment and global business economy.

Problem Statement
Students do not use adequate descriptive prose in their writing.

Ac t i o n R e s e a rc h

Pro b l e m

Will prior use of a Synectics activity, facilitate higher order and creative thinking, thus enabling students to use descriptive prose in their writing?

Action Research G o a l
To integrate Synectics with technology to teach students a process that will help them develop:

concept clarity
and

descriptive writing skills

resulting in a measurable use of descriptive prose

Model Synectics Activity

1. 2. 3. 4. 5. When I say____Teacher____ what do you think about? _____Teacher______is like what plant or animal? Describe (word from #2) and become that animal or plant. How do you feel? What do you think? i.e. I am. Looking at the words in column #2 and column # 3, find two words that are opposites (fight each other). What else can be (analogy from #4)? Teacher picks one of the examples and students describe that example in more detail. Tell me something about (word from #5). Now, look at everything on the board and see if there is anything else we can say about (#1). Create a analogy that connects the original topic to one of the new words, i. e. Teachers are like Using the words on this chart or any additional descriptive words, write a poem about #1.

6. 7.

8.

Lets apply the Synectics process to analyze the concepts presented in Shakespeares play

Julius Caesar

PRESENT SITUATION
Thinking about the play

I.
When I say Julius Caesar, what words come to your mind?

DIRECT ANALOGY II.

The play Julius Caesar is like what plant or animal?

What can you think of ?

PERSONAL ANALOGY III.

Describe a word (from II. Direct Analogy) and become a (same word as above). How do you feel? What do you think?
What can you think of ? Slimy Beautiful Stealthy Flexible Smooth Scaly Aggressive Evil Powerful Afraid

CONFLICT IV.
Looking at Direct Analogy (II) and the Personal Analogy (III), find two words that seem to fight each other. (Conflict)
Direct Analogy Snake Personal Analogy Slimy Beautiful Stealthy Flexible Smooth Scaly Aggressive Evil Powerful Afraid

What can you think of ?

DIRECT ANALOGY Part 1 V.

What else can be an afraid snake?

What can you think of ?

DIRECT ANALOGY Part 2 VI.

Tell me something more about an afraid snake (from #V, Direct Analogy). Apply more attributes to conflicting words. Start your statement with I am.. Dry Adaptive Stately
Juicy Hardy Old Alive Lonely Small Large Forbidding

What can you think of ?

RETURN TO THE ORIGINAL ANALOGY

VII.
Now look at everything on the board and see if there is anything else we can say about the play Julius Caesar (# I).
The play Julius Caesar is like

What can you think of ?

First PORTFOLIO PRODUCT

VIII. Using information from this chart or any additional information you know, write a poem about:

Students print a copy of the finished list from the Synectics activity as a reference for writing their poem.

Example outcomes of: Student-centered constructivist activity (Hilda Taba)

Chaos results when the prescribed social Social Order order is broken.

Stable Rule
Is dictatorship preferable to social chaos?

Power of Language Themes in Julius Caesar

Language is a powerful weapon in the hands of a skilled orator.

Morality

Power

Violence and Democracy Absolute power bloodshed can never corrupts absolutely? have morally good What is the price of democracy? results.

Integrating Synectics Ideas Concept Mapping and Technology with Paragraph Development Student paragraph development guide using Inspiration.
Haynes, Charles & Mcmurdo, Kathleen "Using Inspiration Software to Teach Paragraph Development Iste publications http://www.iste.org

Integrating Synectics Ideas Concept Mapping and Technology with Essay Development

Student essay development guide using Inspiration.

Haynes, Charles & Mcmurdo, Kathleen "Using Inspiration Software to Teach Paragraph Development" Iste publications. http://www.iste.org

Concept Mapping Research Review Excerpts Concept maps provide teachers with an avenue for developing insight into student understanding. (Edmundson 2000) effects of cognitive mapping on science content comprehension of low-achieving seventh grade students from an urban parochial school. Improvement of reading performance of students; efficacy of the concept maps; use of cognitive maps for spatial configurations (Guastello 2000) Advanced organizers are the primary means of strengthening cognitive structure the most effective organizers are those that use concepts, terms, and propositions that are already familiar to the learners (Joyce & Weil p.253)

California Language Arts Standards addressed in this Synectics lesson and subsequent assignment:
1.0 Word Analysis, Fluency, and Systematic Vocabulary Development 1.2. Distinguish between the denotative and connotative meanings of words and interpret the connotative power of words. 2.0 Reading Comprehension (Focus on Informational Materials) 2.6 Demonstrate use of sophisticated learning tools by following technical directions (e.g., those found with graphic calculators and specialized software programs and in access guides to World Wide Web sites on the Internet). 3.0 Literary Response and Analysis 3.12 Analyze the way in which a work of literature is related to the themes and issues of its historical period.

California Language Arts Standards continued 1.0 Writing Strategies 1.1 Establish a controlling impression or coherent thesis that conveys a clear and distinctive perspective on the subject and maintain a consistent tone and focus throughout the piece of writing. 1.2 Use precise language, action verbs, sensory details, appropriate modifiers, and the active rather than the passive voice. 1.6 Integrate quotations and citations into a written text while maintaining the flow of ideas. 1.8 Design and publish documents by using advanced publishing software and graphic programs. 2.0 Writing Applications 2.2 Write responses to literature: a. Demonstrate a comprehensive grasp of the significant ideas of literary works. 2.3 Write expository compositions, including analytical essays and research reports: d. Include visual aids by employing appropriate technology to organize and record information on charts, maps, and graphs.

Synectics + Concept Mapping + Technology add up to Meaningful learning that facilitates students understanding, creative thinking and the ability to use descriptive prose
Synectics allows one to think creatively and then stimulates active processing of information Concept mapping allows one to analyze, evaluate and make meaningful connection among and between concepts Technology allows one to synthesize and apply knowledge and skills

The ability to think creatively, to analyze, synthesize, apply and evaluate information are the skills needed both for today and even more so for the future. (Morrison 1996)

Synectics is like finding a treasure chest of words and new ideas. Concept maps are like a pair of hands reaching out to guide you along an unfamiliar path. Technology is like a magic wand