operations management siib
TRANSCRIPT
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Production Viewed as a System
Su
pp
liers
of
Ma
teri
als
an
d
Eq
uip
men
t
Receipt and Test of Materials
Consumer FeedbackDesign and Re - design
Distribution
Production Assembly Inspection
Tests of Processes , Machines , Methods , Costs
“ I believe this Diagram made the difference in Japan….the greatest way I accomplished anything there was through this diagram ” W. Edwards Deming
Foundation of Modern Operations Management
Customers
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Energy 30 crores per hourTelecommunication 20 crores per hourManufacturing 17.5 crores per hourFinancial 15 crores per hourInformation Technology 15 crores per hourInsurance 12.5 crores per hourRetail 10 crores per hourPharmaceutical 7.5 crores per hour
A META Group Study
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Evolution of Operations Management
• Hunting• Planned approach towards slaying and hunting living
creatures in defence or for consumption• Agriculture
• Organising and coordinating groups of people to carry out tasks in the fields
• Military Operations• Regimented organisation of groups of people established to
protect a settlement from tyranny or conquer • Creation of Professions
• Essentially artisans who developed and passed on ‘trade secrets’ within their immediate families
• Handcrafting products or services for individual customers• Guilds
• Structured group of people involved with the same profession creating their own ‘set of rules’
Pre – Industrial Revolution Era
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Evolution of Operations Management
Harnessing of Steam Energy• James Watt
The First ‘Steam Engine’• George Stevenson
The First Steam Machine• Ginning Machines by Eli Whitney
Division of labour• Economist Adam Smith conceives Division of Labour
Interchangeable parts• Eli Whitney invents interchangeability of parts
Industrial Revolution
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Evolution of Operations Management
Principles of Scientific Management• Fredrick W. Taylor
Time and Motion Studies• Frank and Lillian Gilbreth
Activity Scheduling• Henry Gantt
The Moving Assembly Line• Henry Ford
Industrial Revolution
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Evolution of Operations Management
The Focus• Work Breakdown Structures• One best Way of carrying out Processes• Piece Rate System
• Elton Mayo• Abraham Maslow• Fredrick Herzberg• Douglas McGregor
The rise of Motivational Theorists
The Outcomes
• The Meteoric Rise of Financial Accounting• Extensive interest in Advertising and Branding
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Evolution of Operations Management
The Return of Operations
The Quality Revolution in Japan• W. Edwards Deming and Joseph M. Juran
The Development of the Toyota Production System• Eigi Toyoda , Taichi Ohno and Shiego Shengo
Modern Trends in Operations• Business Process Reengineering• Six Sigma
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Operations in Today’s World
The Internet Revolution•E – Commerce •E – Businesses
B2BOEMs or ‘First Fit’ Businesses
B2CFranchises
C2BConsultation
C2CeBay,Portals,etc
Globalisation of tradeGlobalisation of Operations ( Development of the Virtual Organisation )
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Definition of Operations Management
Production Management aims at achieving Production in the most efficient and effective manner .
Operations Management is the system of Selecting , Designing , Running and Improving all transformational processesTransformational processes include :
Governmental – Creating and Running Societal StructuresPhysical – ManufacturingExchange – Retail Operations , BanksLocational – Logistics and Transportation Physiological – Healthcare and HospitalityPsychological – EntertainmentInformational – Communication , InterpretationEducational – Structured Knowledge Transfer
Production is the outcome of the combination of different transformational processes ( operations ) aimed at meeting desired Customer needs .
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Transformational Processes
Go
vern
men
tal
Ph
ysic
al
Exc
han
ge
Ph
ysio
log
ical
Psy
cho
log
ical
Lo
cati
on
al
Info
rmat
ion
al
Ed
uca
tio
nal
Org
anis
atio
ns
Operations
Pro
du
ctio
n
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The Need for Operations Management in today’s World
In the ever changing Business Scenario in today’s fast developing world where we are witnessing
• Incessant Fragmentation of Markets• Highly Informed and Vocal Customers• Creation of Disruptive Technologies resulting in Specialised Knowledge
• Volatile Inter – Organisational Relationships
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Objectives of Operations Management
Strategy – Gaining a Competitive Edge
Processes and Systems – Alignment of Back-end activities
Quality – Scientific Methods to Create and Deliver Products / Services
Improvement – A Constant effort to challenge the Status Quo / Obvious
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• Topic 1 – Introduction to Operations Management
• Topic 2 – Facility Location
• Topic 3 – Facility ( Plant ) Layout
• Topic 4 – Production Planning and Control
• Topic 5 – Materials Handling
• Topic 6 – Work Study
• Topic 7 – Systematic Maintenance
• Topic 8 – Quality Management
• Topic 9 – Modern Techniques in Operations Management
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Regional Location Factors
• Business climate• Proximity to customers• Number of customers• Availability of sites• Land cost• Construction / leasing costs• Infrastructure (e.g., roads, water, sewers)• Financial services • Community incentives• Community services• Governmental Incentive• Government regulations• Environmental regulations
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Regional Location Factors
• Labour (availability, education, cost, and unions)• Modes and Quality of transportation• Transportation costs• Local business regulations• Government services (e.g., Chamber of Commerce)• Raw material availability• Commercial travel• Climate • Quality of life• Taxes• Proximity of suppliers• Education system
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Global Location Factors
• Government stability• Government regulations• Political and economic systems• Economic stability and growth• Exchange rates• Culture• Climate• Export import regulations• Duties and tariffs• Raw material availability • Number and proximity of suppliers
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Global Location Factors
• Transportation and distribution system• Labour cost and education• Available technology• Commercial travel• Technical expertise• Cross-border trade regulations• Group trade agreements
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Heavy-manufacturing facilities
Large, require a lot of space, and are expensive
Light-industry facilities
Smaller ( as compared to Large Industries ), cleaner plants and usually less costly
Retail and service facilities
Smallest and least costly
Types of Facilities
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Multiattribute Preference Theory ( Location Rating Factor ) for Local Sites
•Is used when choices are available• Has no ‘scientific’ basis – just an ‘agreed upon’
weighted technique
Location Analysis Techniques
Attribute Weight
Labour Force 0.30
Proximity to Customers
0.20
Wage Rates 0.15
Proximity to Suppliers 0.15
Environment 0.10
Modes of Transport 0.05
Community Support 0.05
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Location Analysis Techniques
Guidelines for Scores : Labour Force
Highly Skilled75 –
100
Adequately Skilled 50 – 75
Semi Skilled 25 – 50
Unskilled 0 – 25
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Location Analysis Techniques
Guidelines for Scores : Proximity to Customers
Within 15 kilometres75 –
100
Between 15 to 30 kilometres 50 – 75
Between 30 to 50 kilometres 25 – 50
Above 50 kilometres 0 – 25
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Location Analysis Techniques
Guidelines for Scores : Wage Rates
Upto 10 % of total cost75 –
100
Between 10 – 15 % of total cost50 –
75
Between 15 – 20 % of total cost25 –
50
Above 20 % of total cost 0 – 25
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Location Analysis Techniques
Guidelines for Scores : Proximity to Suppliers
Within 15 kilometres75 –
100
Between 15 to 30 kilometres 50 – 75
Between 30 to 50 kilometres 25 – 50
Above 50 kilometres 0 – 25
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Location Analysis Techniques
Guidelines for Scores : Environment
Conducive to Ceaseless Productive Work75 –
100
Conducive to Productive Work over 25 % 50 – 75
Conducive to Productive Work for a day 25 – 50
Conducive to Productive Work for less than a day
0 – 25
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Location Analysis Techniques
Guidelines for Scores : Modes of Transport
Access to any two modes of transport at any given moment
75 – 100
Access to any one mode of transport at any given moment
50 – 75
Need to plan a day in advance for any mode of transport
25 – 50
Need to plan more than a day in advance for any mode of transport
0 – 25
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Location Analysis Techniques
Guidelines for Scores : Community Support
Extremely harmonious relationships with communities in close proximity
75 – 100
Have Legal relationships with communities in close proximity
50 – 75
Have dispassionate relationships with communities in close proximity
25 – 50
Have hostile relationships with communities in close proximity
0 – 25
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Example
A company wanting to relocate its operations has assessed three sites and have tabulated the following results
Attribute Site 1 Site 2 Site 3
Labour Force 70 60 90
Proximity to Customers
80 90 75
Wage Rates 60 95 70
Proximity to Suppliers 75 80 80
Environment 65 90 95
Modes of Transport 85 90 65
Community Support 80 65 90
Which Site qualifies based on the Multiattribute Preference Theory ?
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AttributeWei
ghtSit
e 1Site 2
Site 3
Labour Force 0.30 70 60 90
Proximity to Customers
0.20 80 90 75
Wage Rates 0.15 60 95 70
Proximity to Suppliers
0.15 75 80 80
Environment 0.10 65 90 95
Modes of Transport 0.05 85 90 65
Community Support 0.05 80 65 90
Using Weights ascribed we get
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Weighted Scores
Attribute Site 1 Site 2 Site 3
Labour Force 21.00 18.00 27.00
Proximity to Customers
16.00 18.00 15.00
Wage Rates 9.00 14.25 10.50
Proximity to Suppliers
11.25 12.00 12.00
Environment 6.50 9.00 9.50
Modes of Transport 4.25 4.50 3.25
Community Support
4.00 3.25 4.50
Scores : Site 1 – 72.00 ; Site 2 – 79.00 ; Site 3 – 81.75
Site 3 – The preferred location
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Typical Attributes that an MNC looks for in a Global Operations Site
Attribute Weight
Political Stability 0.25
Economic Growth 0.20
Port Facilities 0.13
Airline Support 0.10
Trade Regulations 0.08
Duties and Tariffs 0.08
Container Support 0.07
Transportation / Distribution
0.05
Area Roads 0.02
Land and Construction Cost
0.02
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Centre of Gravity Technique
Normally used in computing location of sites for Warehouses / Distribution Centres
Current Location is set as ( 0 , 0 ) on a Cartesian Plane
Average Annual Despatch Loads to different sites are indicated in parenthesis
Distribution Site co-ordinates are computed accordingly
A Pictorial Representation in the form of a Graph is drawn
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x1 x2 x3 x
y2
y
y1
y3
1 (x1, y1), W1
2 (x2, y2), W2
3 (x3, y3), W3
Current Site of Operations
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Co-ordinates of New Location ( x , y ) are computed thus
x =(x1)(W1) + (x2)(W2) + (x3)(W3)
W1 + W2 + W3
y =(y1)(W1) + (y2)(W2) + (y3)(W3)
W1 + W2 + W3
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A B C Dx 200 100 250 500y 200 500 600 300Wt 70 100 130 60
y
700
500
600
400
300
200
100
0 x700500 600400300200100
A
B
C
D
(130)
(100)
(70)
(60)
Kilometres
Kil
om
etre
sExample
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Co-ordinates of New Location ( x , y ) are computed thus
x =(200)(70) + (100)(100) + (250)(130) + (500)(60)
70 + 100 + 130+ 60
= 240
y =(200)(70) + (500)(100) + (600)(130) + (300)(60)
70 + 100 + 130+ 60
= 444
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y
700
500
600
400
300
200
100
0 x700500 600400300200100
A
B
C
D
(130)
(100)
(70)
(60)
Kilometres
Kilo
met
res
( 240 , 444 )
Location of the Warehouse
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Load Distance Technique
Variation of the Centre of Gravity Technique
Used when Options available for Sites
Use of the Straight Line concept ( Based on Geometric Distance Formula )
∑ li di
i = 1
n
LD =
LD = load-distance value
li = load expressed as a weight being despatched
di = distance between proposed site and location i
di = (xi - x)2 + (yi - y)2 (x,y) = coordinates of proposed site
(xi , yi) = coordinates of existing facility
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A B C Dx 200 100 250 500y 200 500 600 300Wt 70 100 130 60
Potential SitesSite X Y1 360 1802 420 4503 250 400
Suppliers
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Potential SitesSite X Y1 360 1802 420 4503 250 400
= (200-360)2 + (200-180)2
dA = (xA - x1)2 + (yA - y1)2
Computing distances for Site 1
= 161.2
= (100-360)2 + (500-180)2
dB = (xB - x1)2 + (yB - y1)2
= 412.3
= (250-360)2 + (600-180)2
dC = (xC - x1)2 + (yC - y1)2
= 434.16
= (500-360)2 + (300-180)2
dD = (xD - x1)2 + (yD - y1)2
= 184.31
Load Distance = (70)*(161.2)+(100)*(412.3)+(130)*(434.16)+(60)*(184.31)
= 120019.2
A B C Dx 200 100 250 500y 200 500 600 300Wt 70 100 130 60
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= (200-420)2 + (200-450)2
dA = (xA – x2)2 + (yA – y2)2
Computing for Site 2
= 333.02
= (100-420)2 + (500-450)2
dB = (xB – x2)2 + (yB – y2)2
= 323.88
= (250-420)2 + (600-450)2
dC = (xC – x2)2 + (yC – y2)2
= 226.71
= (500-420)2 + (300-450)2
dD = (xD – x2)2 + (yD – y2)2
= 170
Load Distance = (70)*(333.02)+(100)*(323.88)+(130)*(226.71)+(60)*(170)
= 97036.8
Potential SitesSite X Y1 360 1802 420 4503 250 400
A B C Dx 200 100 250 500y 200 500 600 300Wt 70 100 130 60
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= (200-250)2 + (200-400)2
dA = (xA – x3)2 + (yA – y3)2
Computing for Site 3
= 206.19
= (100-250)2 + (500-400)2
dB = (xB – x3)2 + (yB – y3)2
= 180.27
= (250-250)2 + (600-400)2
dC = (xC – x3)2 + (yC – y3)2
= 200
= (500-250)2 + (300-400)2
dD = (xD – x3)2 + (yD – y3)2
= 269.25
Load Distance = (70)*(206.19)+(100)*(180.27)+(130)*(200)+(60)*(269.25)
= 74614.8
Potential SitesSite X Y1 360 1802 420 4503 250 400
A B C Dx 200 100 250 500y 200 500 600 300Wt 70 100 130 60
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Facility LayoutsDefinition of Facility Layout
Planned arrangement of areas within a facility commensurate with the product to be realised or service to be delivered
Objectives of Facility Layout
• Optimise material-handling ( transaction ) costs• Utilise space efficiently• Utilise manpower efficiently• Work around bottlenecks• Facilitate interaction• Reduce cycle time• Reduce customer turnaround time• Eliminate redundant movement• Increase capacity• Provide for entries, exits, placement of material ( in all stages
of realisation ), finished goods, and people
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Facility Layouts
Objectives of Facility Layout ( continued )
• Incorporate safety and security measures• Promote product and service Quality• Facilitate proper maintenance activities• Provide for visual control• Provide for flexibility to adapt to changing conditions
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Different Organisational Layout Representations
• Departmental Layout • Material Flow Layout• Equipment Layout• Transportation and Handling Layout• Utilities Layout• Communication Channel Layout
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Basic Types of Layouts
Fixed-position layoutsare used where product cannot be moved
Used for Large Products and ProjectsUsually ‘one-of-a-kind’ products or projects
Process layoutsgroup similar activities together according to process or function they perform
Traditional Type of LayoutSuitable for Mass Production
Product layoutsarrange activities in line according to sequence of operations for a particular product or service
Modern Approach toward Creating LayoutsMore inclined towards Mass Customisation
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Fixed-position layouts
Typically manufacture of Construction Projects , Rocket Launchers , Space Shuttles , Aircrafts , Ships , Surgeries , “Events”
Equipment, workers, materials, other resources brought to site
Highly skilled labour
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Process Layout - Bookstore
Video CDs , DVDs
Cookbooks
Children’s Books
Cassettes
Billing and Information
Entry and display area
Audio CDs , DVDs
Technical and
Management Section
Coffee Shop
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L
L
L
L
L
L
L
L
L
LM
M
M
M
D
D
D
D
D
D
D
D
G
G
G
G
G
G
A A AReceiving andShipping Assembly
Painting Department
Lathe Section Milling Section Drilling Section
Grinding and Finishing
P
P
Process Layout - Manufacture
Product A Product B
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InIn OutOut
Product Layout - Manufacture
Product A
Product B
InIn OutOut
InIn OutOut
Product C
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Comparisons between Product and Process Layouts
Product Layout Process Layout
• Sequential arrangement of Activities
• Intermittent work
• Adaptable Machinery
• Workers are extensively cross-trained
• Occupy smaller areas
• Highly flexible lines
• Lesser travel time
• Functional Grouping of Activities
• Continuous work
• General Purpose Machinery
• Workers are trained in a particular process
• Occupy larger areas
• Largely Rigid
• More travel time
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Designing Layouts
Relationship Diagramming
• based on location preference between areas
• used when quantitative data is not available
• Schematic diagram that uses weighted lines to denote location preference
Use of a grid called “Muther’s grid”
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Muther’s Grid
Different Sections / Areas in an organisation
Extent of their Interactions / Relationships
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Production
Offices
Stockroom
Shipping and receiving
Locker room
Toolroom
A
A
O
U
O
O
U
A
U
O
E
U
I
X
O
A Absolutely necessaryE Especially importantI ImportantO OkayU UnimportantX Undesirable
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Original layout
Offices
Stockroom
Locker room
Toolroom
Shipping and
receiving
Production
AEIOUX
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Relationship diagram of original layout
Offices
Stockroom
Locker room
Toolroom
Shipping and receiving
Production
AEIOUX
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Production – 2 ‘Absolutely Necessary’ transactions ; 1 ‘Especially Important’ transaction ; 1 ‘Important’ transaction ; 1 ‘Okay’ transaction
Therefore Production needs to be centrally located with the other departments around it .
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Solution 1
Offices
Stockroom
Locker room
Toolroom
Shipping and receiving
Production
A EIOUX
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Solution 2
Offices
Stockroom
Toolroom
Locker room
Shipping and receiving
Production
AEI
OUX
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Block Diagramming
Purpose is to minimise nonadjacent loadsUsed when quantitative data is available
Steps :
• Create load summary chart
• Calculate composite (two way) movements
• Develop trial layouts minimising number of nonadjacent loads
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1 2 3 4 5
1 - 100 50 - -
2 - - 200 50 -
3 60 - - 40 50
4 - 100 - - 60
5 - 50 - - -
To
From
Load Summary Chart
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Movement Total Load2 ↔ 3 200 2 ↔ 4 150 1 ↔ 3 110 1 ↔ 2 100 4 ↔ 5 60 3 ↔ 5 50 2 ↔ 5 50 3 ↔ 4 40 1 ↔ 4 0 1 ↔ 5 0
Composite Movements
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1 2 3
4 5
Arranged in a 2x3 Grid
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1 2 3
4 5
100 200
110
60
50150 50
40
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1 2 4
53
100 150
200
50
60
40
110
Blocks Rearranged with Non-adjacent loads cancelled out
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Cellular Layouts
Identify outputs with similar flow pathsGroup processes into cells based on outputArrange cells so transactions are minimisedLocate shared processes at point of use
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Original Machine Layout
1 3
4
5
6 7
8
9
10
11
122
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Original Process Layout
CA B Inputs
Outputs
1
2
3
4
5
6 7
8
9
10
11
12
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Determine Flow Logic
A : 1 – 2 – 4 – 8 – 10B : 5 – 7 – 11 – 12 C : 3 – 6 – 9 D : 1 – 2 – 4 – 8 – 10E : 5 – 6 – 12 F : 1 – 4 – 8 G : 3 – 6 – 9 – 12 H : 7 – 11 – 12
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Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
10
11
12
A X X X X X
B X X X X
C X X X
D X X X X X
E X X X
F X X X
G X X X X
H X X X
ValuValuee
Part Routing Matrix
![Page 70: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/70.jpg)
Create Binary AlgorithmThe procedure works like this :
• Assign a value to each column ‘k’ , where the value is 2N-k N = total number of workstations ; k = chronological workstation number
• For each row obtain a sum by adding the 2N-k values• Rearrange the rows in the decreasing order of the
sums obtained• Assign a value to each row ‘k’ where the value is 2M-k
M = total number of products ; k = chronological ( rearranged ) sequence number of the product
• For each column obtain a sum by adding the values• Rearrange the columns in decreasing order of the
sums obtained
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Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
10
11
12
A 2048
1024
256
16
43
348
B 128
32
2 11
63
C 512
64
85
84
D 2048
1024
256
16
43
348
E 128
64
11
93
F 2048
256
16
2320
G 512
64
8 15
85
H 32
2 13
5ValuValuee
Part Routing Matrix
![Page 72: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/72.jpg)
Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
10
11
12
A 2048
1024
256
16
43
348
D 2048
1024
256
16
43
348
F 2048
256
16
2320
G 512
64
8 15
85
C 512
64
85
84
E 128
64
11
93
B 128
32
2 11
63
H 32
2 13
5ValuValuee
Part Routing Matrix
![Page 73: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/73.jpg)
Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
10
11
12
A X X X X X
D X X X X X
F X X X
G X X X X
C X X X
E X X X
B X X X X
H X X X
ValuValuee
Part Routing Matrix
![Page 74: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/74.jpg)
Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
10
11
12
A1
281
281
281
281
28
D6
46
46
46
46
4
F3
23
23
2
G1
61
61
61
6
C 8 8 8
E 4 4 4
B 2 2 2 2
H 1 1 1
ValuValuee
222424
119292
2244
222424 66
2288
3322
242422
4411
9292 3322
33
Part Routing Matrix
![Page 75: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/75.jpg)
Products
WorkstationsV
alue1 4 8 2
10
6 3 91
25 7
11
A1
281
281
281
281
28
D6
46
46
46
46
4
F3
23
23
2
G1
61
61
61
6
C 8 8 8
E 4 4 4
B 2 2 2 2
H 1 1 1
ValuValuee
222424
222424
222424
119292
119292
2288
2244
2244
2233
66 33 33
Part Routing Matrix
![Page 76: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/76.jpg)
Products
Workstations
1 4 8 21
06 3 9
12
5 71
1
A X X X X X
D X X X X X
F X X X
G X X X X
C X X X
E X X X
B X X X X
H X X X
Part Routing Matrix
![Page 77: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/77.jpg)
Products
Workstations
1 4 8 21
06 3 9
12
5 71
1
A X X X X X
D X X X X X
F X X X
G X X X X
C X X X
E X X X
B X X X X
H X X X
Part Routing Matrix
![Page 78: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/78.jpg)
3
6
9
Outputs
12
4
8 10
5
7
11
12
A B C
Inputs
Cell 1 Cell 2 Cell 3
Revised Layout
![Page 79: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/79.jpg)
Flow Logic
A : 5 – 6 – 8 B : 5 – 6 – 8 – 9 C : 2 – 4 – 5 – 7 D : 1 – 3 E : 5 – 6 F : 1 – 3 – 4 G : 4 – 5 – 6 – 8 - 9 H : 2 – 4 – 7
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Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
A X X X
B X X X X
C X X X X
D X X
E X X
F X X X
G X X X X X
H X X X
ValueValue
Part Routing Matrix
![Page 81: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/81.jpg)
Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
A1
68 2
26
B1
68 2 1
27
C1
283
21
64
180
D2
566
43
20
E1
68
24
F2
566
43
23
52
G3
21
68 2 1
59
H1
283
24
164
ValueValue
Part Routing Matrix
![Page 82: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/82.jpg)
Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
F2
566
43
23
52
D2
566
43
20
C1
283
21
64
180
H1
283
24
164
G3
21
68 2 1
59
B1
68 2 1
27
A1
68 2
26
E1
68
24
ValueValue
Part Routing Matrix
![Page 83: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/83.jpg)
Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
F X X X
D X X
C X X X X
H X X X
G X X X X X
B X X X X
A X X X
E X X
ValueValue
Part Routing Matrix
![Page 84: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/84.jpg)
Products
WorkstationsV
alue1 2 3 4 5 6 7 8 9
F1
281
281
28
D6
46
4
C3
23
23
23
2
H1
61
61
6
G 8 8 8 8 8
B 4 4 4 4
A 2 2 2
E 1 1
ValueValue 119292
4488
119292
118484
4477
1155
4488
1144
1122
Part Routing Matrix
![Page 85: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/85.jpg)
Products
WorkstationsV
alue1 3 4 2 7 5 6 8 9
F1
281
281
28
D6
46
4
C3
23
23
23
2
H1
61
61
6
G 8 8 8 8 8
B 4 4 4 4
A 2 2 2
E 1 1
ValueValue 119292
119292
118484
4488
4488
4477
1155
1144
1122
Part Routing Matrix
![Page 86: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/86.jpg)
Products
Workstations
1 3 4 2 7 5 6 8 9
F X X X
D X X
C X X X X
H X X X
G X X X X X
B X X X X
A X X X
E X X
ValueValue
Part Routing Matrix
![Page 87: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/87.jpg)
Products
Workstations
1 3 4 2 7 5 6 8 9
F X X X
D X X
C X X X X
H X X X
G X X X X X
B X X X X
A X X X
E X X
ValueValue
Part Routing Matrix
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1 3
2 4 7
5 6 8 9
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InInOutOut
Worker 1
Worker 2
Worker 3
Direction of part movement within cell
S
L
HM
VM
G
VM
L
Final inspection
Finished part
S = SawL = LatheHM = Horizontal milling machineVM = Vertical milling machineG = Grinder
Paths of three workers moving within cell
Material movement
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Service Layouts
• Usually process layouts respond to customer needs
• Minimise flow of customers or transactions
• Retailing tries to maximise customer exposure to products
• Layouts must be aesthetically pleasing
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Types of Layouts for Service Organisations
Freeflow Layout
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Types of Layouts for Service Organisations
Grid Layout
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Types of Layouts for Service Organisations
Spine Layout
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Types of Layouts for Service Organisations
Loopy Layout
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Types of Production Processes
Criteria for Selection of Processes
Nature of the Inputs and Outputs Perishable and Non – Perishable
Quantum of Production One – of Few Numbers Mass
Nature of Operations Continuous Processes Intermittent Processes
Capacity of the PlantRestrictions in Space , Equipment , Labour , Technology
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Types of Production Processes
Types of Processes
Jobbing / Project Type MethodThis method is used where , although the Processes remain the same , the outputs are unique in nature .
Example : Construction Projects , Film Making , Job Shops
Features of this Approach• One – of or Very Small Quantity of Production• Highly Skilled Workforce• General Purpose Equipment• Unbalanced Processing• High Cost of Production
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Types of Production Processes
Types of Processes
Batch Type ApproachThis method is used where a limited amount of products ( batches ) are produced at a time either continuously or intermittently .
Example : Chemicals , Pharmaceuticals , Paints , Foods and some types of metal items
Features of this Approach• Fixed Quantities Produced• Semi – Skilled Workforce• General Purpose Equipment• Balanced Processing• Low Cost of Production
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Types of Production Processes
Types of Processes
Mass ProductionThis method is used where a very large amount of products ( batches ) are produced at a time either continuously .
Example : Engineered Products , Fertilisers
Features of this Approach• Very Large Quantities Produced• Semi – Skilled Workforce• General Purpose Equipment• Very High Flows• Low Cost of Production
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Types of Production Processes
Types of Processes
Process Based ProductionThis method is used where Bulk items are producedExample : Sugar , Aluminium , Zinc , Iron and Steel
Features of this Approach• Bulk Items Produced• Semi – Skilled Workforce• General Purpose Equipment• Very High Flows• Low Cost of Production
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K
PRODUCT MIX
Jumbled
PR
OC
ES
S P
AT
TE
RN
Jumbled But Dominant
Line Flow
Continuous Flow
One of Low Volume High Volume Mass
Project Job Shop
Batch
Line
Continuous
Ways of Doing Work
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Production Planning and ControlIntroduction
• Coordination of materials function with suppliers
• Efficient utilisation of people and machines
• Efficient flow of materials within the organisation
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The “Seepok” Model
Inputs
Production
Outputs
Suppliers Customers
S I P O C
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Decision Support
• PPC system does not make decisions but provides support for decision making
• Managers make decisions
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Software for Decision Support• Software not only to support decision
makers but also make some of the decisions• Expert Systems • Neural Networks • Algorithms • Evolutionary Programming • Genetic Programming • Tabu Search• Simulated Annealing
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Activities
• Materials Planning• Purchasing• Raw Material Inventory Control• Capacity Planning• Scheduling Machine and People• Work-in-Process (WIP) Inventory Control• Coordinate Customer Orders• Finished Goods Inventory Control
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Ill-effects of a lack of PPC
• poor customer service• excessive inventories• low equipment and people utilisation• high rate of part obsolescence• large number of expediters
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Work Study
Specifications
Inventory Management
Production Planning and Control
Routing LoadingSchedulin
gDespatching
Expediting
Production Plan
![Page 108: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/108.jpg)
Routing
• Determine the Processes to be followed• Determine the Sequence of the Processes• Determine the Flow of Materials / Activities
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Loading
• Determine the Number of Workstations• Determine their operational characteristics ( speeds ,
capabilities )• Selection of Workstations• Creating a Contingency Plan
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Scheduling
• Determining the exact time at which the Operations will materialise
• Timing the arrival of material ( finished / semi-finished part at different workstations )
• Usually done on a ‘Gantt Chart’
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Despatching
• Creating Work Orders• Creating Shop Travellers• Issuing Authorisations
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Expediting
• Creating Routine Reports• Creating Check Points• Follow up
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Master Production Scheduling
Detailed Material Planning
Material and Capacity Plans
Purchase Order
Demand Management
Resources Planning
Rough-Cut Capacity Planning
Detailed Capacity Planning
Work Order
Production Planning and ControlGeneral Framework
![Page 114: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/114.jpg)
• Forecasting• Order Processing• Order Acceptance• Order Confirmation
Demand Management
![Page 115: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/115.jpg)
• Long-Range Capacity Requirements• Number of Plants• Number of Workstations• Number of Employees• Shifts• Overtime
Resource Planning
![Page 116: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/116.jpg)
Production Planning
Plans for Product FamiliesMaster Planning Schedule ( MPS )
Anatomy of a Plan
Annual Plan
Quarterly PlanMonthly Plan
Fortnightly Plan
Fixed Could be subject to minor changes
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Capacity Requirement Planning for Master Production Scheduling• Open Orders• Planned Orders• Resource Profiles
Rough-Cut Capacity Planning
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Inputs :• Master Production Schedule (MPS) • Bill of Materials (BOM)• Inventory Status• Leadtime (LT)
Detailed Materials PlanningMaterials Requirements Planning
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Shows the constituent components and how many of those are required to build the composite part
Bill of Material (BOM)
![Page 120: Operations management siib](https://reader035.vdocuments.net/reader035/viewer/2022062307/5562b227d8b42a15548b5460/html5/thumbnails/120.jpg)
Product Structures and Parts
C
A B
X X Y
Finished Product
Manufactured Part
Sub Assembly
Purchased Parts
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Single Level Bill of Material
Level 0 Parent A
Level 1 Component X X 2
2 units of component X are used to make 1 unit of item A
Indented Bill of Material ( BOM ) for A is
Level
Part ( nos )
0 A ( 1 )
1 X ( 2 )
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Single Level Bill of Material
Level 0 Parent B
Level 1 Component X X 2
2 units of component X and 1 component of Y are used to make 1 unit of item B
Indented Bill of Material ( BOM ) for B is
Level
Part ( nos )
0 B ( 1 )
1 X ( 2 )
1 Y ( 1 )
Level 1 Component Y X 1
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Single Level Bill of Material
Level 0 Parent C
Level 1 Component A X 2
2 units of component A and 3 components of B are used to make 1 unit of item C
Indented Bill of Material ( BOM ) for C is
Level
Part ( nos )
0 C ( 1 )
1 A ( 2 )
1 B ( 3 )
Level 1 Component B X 3
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Multi Level Bill of Material
Level 0 Parent C
Level 1 2 x A
Level 2
3 x B
2 x X 2 x X 1 x Y
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Summary Bill of Material
Level PartCumulati
ve
0 C 1
1 A 2
2 X 4
1 B 3
2 X 6
2 Y 3
Summary BOM for C
X 10
Y 3
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Create a BOM for a Two layered McDonald’s Maharaja Mac
Bottom Bun Patty Sauce Lettuce
Bottom Bun Sub Assembly
Cheese Patty Onions
Middle Bun Sub Assembly
Sesame Seed Top bun
Middle Bun
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Inventory Status
On Hand (OH) QuantityWhat is physically available in the warehouse
On Order or Scheduled Receipt (SR)What has been ordered but not received ( transitory )
Allocated Inventory (AI)What is in the warehouse but reserved for existing orders (i.e., not available to be used for incoming orders)
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Time between placing an order and receiving the partsParts could be •Purchased – Dependant on Vendor•Manufactured or assembled in house – Dependant on Process / Manufacturing Personnel
Leadtime
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Leadtime Offsetting
1.Front Schedule ApproachSchedule as early as possibleAdvantage: Minimise risk of shortageDisadvantage: Higher Inventory Levels
2.Back Schedule ApproachSchedule as late as possibleAdvantage: Minimise InventoryDisadvantage: Higher Risk of Shortage
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Gross Requirements – Derived from the MPS of the Parent Part
Scheduled Receipts – On Order or Scheduled to be received
On Hand – Physical Available Inventory
Allocated Inventory – Inventory scheduled to be used
Nett Requirements – Actual Quantities Required
Planned Order Receipts – Offset time when Materials are needed
Planned Order Releases – Offset Time when materials need to be ordered ( function of lead time )
Important Terms / Conventions used in MRP
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HeadingWeek Number
1 2 3 4 5
Gross Requirements 85 95
120
100
100
Scheduled Receipts
175
On Hand 45
Allocated Inventory 20
Nett Requirements
Planned Order Receipts
Planned Order Releases
MRP Matrix
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HeadingWeek Number
1 2 3 4 5
Gross Requirements 85 95
120
100
100
Scheduled Receipts
175
On Hand 4511
5
Allocated Inventory 20
Nett Requirements 0
Planned Order Receipts
Planned Order Releases
MRP Matrix
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MRP Matrix
HeadingWeek Number
1 2 3 4 5
Gross Requirements 85 95
120
100
100
Scheduled Receipts
175
On Hand 4511
520
Allocated Inventory 20
Nett Requirements 0 0
Planned Order Receipts
Planned Order Releases
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MRP Matrix
HeadingWeek Number
1 2 3 4 5
Gross Requirements
85
95
120
100
100
Scheduled Receipts
175
On Hand4
51
152
0
Allocated Inventory
20
Nett Requirements 0 0
100
Planned Order Receipts
100
Planned Order Releases
100
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MRP Matrix
HeadingWeek Number
1 2 3 4 5
Gross Requirements
85
95
120
100
100
Scheduled Receipts
175
On Hand4
51
152
0
Allocated Inventory
20
Nett Requirements 0 0
100
100
Planned Order Receipts
100
100
Planned Order Releases
100
100
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MRP Matrix
HeadingWeek Number
1 2 3 4 5
Gross Requirements
85
95
120
100
100
Scheduled Receipts
175
On Hand4
51
152
0
Allocated Inventory
20
Nett Requirements 0 0
100
100
100
Planned Order Receipts
100
100
100
Planned Order Releases
100
100
100
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Detailed Capacity PlanningCapacity Requirements Planning
Creates a load profileIdentifies under-loads and over-loadsInputs
Planned order releasesRouting fileOpen orders file
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Routing File
Inputs• Flow Time• Cycle Time• Number of Workstations• Capabilities of Work Stations
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Scheduling
Last stage of planning before production occursSpecifies when labour, equipment, facilities are needed to produce a product or provide a service
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Objectives in Scheduling
Meet customer due datesMinimise response timeMinimise completion timeMinimise time in the systemMinimise overtimeMinimise work-in-process inventory
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Shop Floor Control
LoadingCheck availability of material, machines and labour
SequencingRelease work orders to shop and issue despatch lists for individual machines
MonitoringMaintain progress reports on each job until it is complete
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Loading
Process of assigning work to limited resourcesPerform work on most efficient resources
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Assignment MethodPerform row reductions
subtract minimum value in each row from all other row values
Perform column reductionssubtract minimum value in each column from all other column values
Cross out all zeros in matrixuse minimum number of horizontal and vertical lines to cover all the 0s
If number of lines equals number of rows in matrix then optimum solution has been found. Make assignments where zeros appearElse modify matrix
subtract minimum uncrossed value from all uncrossed valuesadd it to all cells where two lines intersectother values in matrix remain unchanged
Repeat steps 3 through 5 until optimum solution is reached
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Name
Time taken for completing the task
1 2 3 4Duryodhan 10 5 6 10
Dushyasan 6 2 4 6
Jarasandha 7 6 5 6
Jayadratha 9 5 4 10
Example
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Name
Time taken for completing the task
1 2 3 4Duryodhan 5 0 1 5
Dushyasan 4 0 2 4
Jarasandha 2 1 0 1
Jayadratha 5 1 0 6
Step 1 - Row Reduction
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Name
Time taken for completing the task
1 2 3 4Duryodhan 3 0 1 4
Dushyasan 2 0 2 3
Jarasandha 0 1 0 0
Jayadratha 3 1 0 5
Step 2 - Column Reduction
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Name
Time taken for completing the task
1 2 3 4Duryodhan 3 0 1 4
Dushyasan 2 0 2 3
Jarasandha 0 1 0 0
Jayadratha 3 1 0 5
Step 3 - Cover all Zeros
Number of Lines = 3 ; Number of Rows = 4Modify Matrix
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NameTime taken for
completing the task
1 2 3 4
Duryodhan
3 0 1 4
Dushyasan
2 0 2 3
Jarasandha
0 1 0 0
Jayadratha
3 1 0 5
Step 4 - Modify the Matrix
Take the lowest value in the ‘uncovered’ cells ( in this case = 2 ) and reduce the column to which it belongsAdd this value to the values of the intersecting cells as shown
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Name
Time taken for completing the task
1 2 3 4Duryodhan 1 0 1 4
Dushyasan 0 0 2 3
Jarasandha 0 3 2 0
Jayadratha 1 1 0 5
Step 5 - Select the Tasks
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Name
Time taken for completing the task
1 2 3 4Duryodhan 10 5 6 10
Dushyasan 6 2 4 6
Jarasandha 7 6 5 6
Jayadratha 9 5 4 10
Example
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Name
Time taken for completing the task
1 2 3 4Savani 20 90 40 10Vidhey
a 40 45 50 35
Antara 30 70 35 25Amala 60 45 70 40
Example
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Name
Time taken for completing the task
1 2 3 4Savani 10 80 30 0Vidhey
a 5 10 15 0
Antara 5 45 10 0Amala 20 5 30 0
Step 1 - Row Reduction
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Name
Time taken for completing the task
1 2 3 4Savani 5 75 20 0Vidhey
a 0 5 5 0
Antara 0 40 0 0Amala 15 0 20 0
Step 2 - Column Reduction
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Name
Time taken for completing the task
1 2 3 4Savani 5 75 20 0Vidhey
a 0 5 5 0
Antara 0 40 0 0Amala 15 0 20 0
Step 3 - Cover all Zeros
Number of lines = Number of Rows
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Name
Time taken for completing the task
1 2 3 4Savani 5 75 20 0Vidhey
a 0 5 5 0
Antara 0 40 0 0Amala 15 0 20 0
Step 4 - Select the Tasks
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Name
Time taken for completing the task
1 2 3 4Savani 20 90 40 10Vidhey
a 40 45 50 35
Antara 30 70 35 25Amala 60 45 70 40
Step 5 - Assign Jobs
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Sequencing
Prioritise jobs assigned to a resourceStandardised Sequencing Rules
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Sequencing Rules
FCFS - first-come, first-servedLCFS - last come, first servedDDATE - earliest due dateCUSTPR - highest customer prioritySETUP - similar required setupsSLACK - smallest slackCR - critical ratioSPT - shortest processing timeLPT - longest processing time
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Sequencing Jobs Through Two Serial Processes
Johnson’s Rule
List time required to process each job at each machine. Set up a one-dimensional matrix to represent desired sequence with number of slots equal to number of jobs.
Select smallest processing time at either machine. If that time is on machine 1, put the job as near to beginning of sequence as possible.
If smallest time occurs on machine 2, put the job as near to the end of the sequence as possible.
Remove job from list.
Repeat steps 2-4 until all slots in matrix are filled and all jobs are sequenced.
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Machines
Jobs
A B C D E F
M1 4 8 3 6 7 5
M2 6 3 7 2 8 4
C A F E B D
Johnson’s Rule
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1 2 3 4 5 6 7 8 91
01
11
21
31
41
51
61
71
81
92
02
12
22
32
42
52
62
72
82
93
03
13
23
33
43
5
Machine 1
C A F E B D
Machine 2
C A F E B
D
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Machines
Jobs
A B C D E
M1 10 12 8 15 16
M2 3 2 4 1 5
M3 5 6 4 7 3
M4 14 7 12 8 10
Example
C A E D B
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Sequence
Machine 1
Machine 2
Machine 3
Machine 4
IDLE TIME
IN
OUT
IN
OUT
IN
OUT
IN
OUT
M1
M2
M3
M4
C 0 8 81
21
216
16
28 - 81
21
6
A 81
81
82
12
126
28
42 - 6 5 -
E1
83
43
43
93
942
42
52 -1
31
3-
D3
44
94
95
05
057
57
65 -1
08 5
B4
96
16
16
36
369
69
76 -1
16 4
N
IL4
84
42
5
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MachinesJobs
A B C D
M1 4 3 1 3
M2 3 7 2 4
M3 7 2 4 3
M4 8 5 7 2
The Heuristic Method
Add the time taken on Machines 1 and 2 to create a ‘new’ MachineCompute similarly for Machines 3 and 4
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Example
C A B D
Machines
Jobs
A B C D
M1 7 10 3 7
M2 15 7 11 5
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Sequence
Machine 1
Machine 2
Machine 3
Machine 4
IDLE TIME
IN
OUT
IN
OUT
IN
OUT
IN
OUT
M1
M2
M3
M4
C 0 1 1 3 3 7 7 14 - 1 3 7
A 1 5 5 8 8 151
523 - 2 1 1
B 5 8 81
51
517
23
28 - - - -
D 81
11
51
91
922
28
30 - - 2 -
N
IL3 6 8
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The following 6 jobs have the following Processing Times and Due Dates . Compare which of the following sequencing methods will be best suited for these jobs : FCFS , LCFS , DDATE , SPT
Example
Jobs
Processing Time
Due Date ( from now )
A 2 6
B 5 9
C 3 8
D 4 12
E 1 10
F 7 11
G 6 13
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Jobs
Processing Time
Due Date ( from
now )
Total Flow Time
Delay
A 2 6 2 0
B 5 9 7 0
C 3 8 10 2
D 4 12 14 2
E 1 10 15 5
F 7 11 22 11
G 6 13 28 15
Solution
FCFS – First Come First Served
Average Flow Time = 14Average Delay = 5
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Jobs
Processing Time
Due Date ( from
now )
Total Flow Time
Delay
G 6 13 6 0
F 7 11 13 2
E 1 10 14 4
D 4 12 18 6
C 3 8 21 13
B 5 9 26 17
A 2 6 28 22
Solution
LCFS – Last Come First Served
Average Flow Time = 18Average Delay = 9.14
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Jobs
Processing Time
Due Date ( from
now )
Total Flow Time
Delay
A 2 6 2 0
C 3 8 5 0
B 5 9 10 1
E 1 10 11 1
F 7 11 18 7
D 4 12 22 10
G 6 13 28 15
Solution
DDATE – Earliest Due Date
Average Flow Time = 13.7Average Delay = 4.85
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Jobs
Processing Time
Due Date ( from
now )
Total Flow Time
Delay
E 1 10 1 0
A 2 6 3 0
C 3 8 6 0
D 4 12 10 0
B 5 9 15 6
G 6 13 21 8
F 7 11 28 17
Solution
SPT – Shortest Processing Time
Average Flow Time = 12Average Delay = 4.42
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Comparing the Methods of Sequencing with their Average Flow Time and Average Delays we get :
FCFS – 14 , 5LCFS – 18 , 9.14DDATE – 13.7 , 4.85SPT – 12 , 4.42
SPT , with the least Average Flow Time and Least Average Delay , is the chosen method .
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Material Handling
Definition of Material Handling
The efficient and effective method of facilitating a controlled flow of product between locations and storing thereafter constitutes the activity of Material Handling
* the term product includes hardware , software , a combination thereof , people and information
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Objectives of Material Handling
• To eliminate product damage• To enhance product flow• To optimise operating costs ( high volumes at lower
time frames )• To ensure asset protection• To ensure safety
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Anatomy of Material Handling
The Logical flow of materials in a facility
Receiving Sorting Storage Pick-up
Packaging
Processing
Shipping
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Important terms in Material Handling
• Distribution – The function of transporting finished goods in a safe condition to a separate storage facility or to the customer
• Storage – The act of safekeeping of goods and preserving them in a usable condition until they are required by another facility , workstation or the Customer
• Logistics – Combines the above activities and includes the flow of related information
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Types of Product Movement ( flow )
Horizontal Product MovementThis movement takes place at a single level or elevation
• between workstations • between functional areas• between adjacent structures• within a warehouse
either at floor level , above floor level or overhead in the same facility or location
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Types of Product Movement ( flow )
Vertical Product MovementThis movement takes place at multiple levels or elevations
• between workstations • between functional areas• between adjacent structures• within a warehouse
either at floor level , above the floor level , or overhead at the same facility location
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Types of Transportation Concepts
The different types of Transportation Concepts are based on the following
• The Power Source• Weight and Load Carrying Capacity• Required Travel Space or Path• Volume handled• Ability to load and unload the goods
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Types of Transportation Concepts
Above Floor Non powered Transportation Concept
These require Gravity Force or Human Power to facilitate product flow between locationsHorizontalThis concept is applied at a single level or elevation . Commonly used methods are
• Gradients ( from a higher level to lower level )• Ropeways• Chain-Pulley Blocks• Movable Frames• Weight Differentials• Wheels
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Types of Transportation Concepts
Above Floor Non powered Transportation Concept
VerticalThis concept is applied at multiple levels or elevations . Commonly used methods are
• Gradients ( from a higher level to lower level )• Ropeways• Chain-Pulley Blocks• Weight Differentials• Wheels
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Types of Transportation ConceptsAbove Floor Powered Transportation
Concept
These require an Electric Motor , Fuel Powered Motor , Air Pressure or Vacuum to propel a load carrying surface or product to facilitate product flow between locations
Horizontal
This concept is applied at a single level or elevation . Commonly used methods are
•Trolleys ( Electric Powered , Air Cushioned , Pneumatic , Hydraulic )
•Caddie Cars ( usually Electric Powered )•Pipes ( Vacuum powered )
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Types of Transportation Concepts
Above Floor Powered Transportation Concept
VerticalThis concept is applied at multiple levels or
elevations . Commonly used methods are•Lifts ( Electric Powered , Pneumatic , Hydraulic )•Cable Cars ( usually Electric Powered )•Pipes ( Vacuum powered )
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Types of Transportation Concepts
In Floor Non Powered Transportation Concept
These have a travel path that is embedded in the floor and utilise Gravity or Human Power to facilitate product flow between locations
HorizontalThis concept is applied at a single level or elevation . Commonly used methods are
•Trolleys on Rails•Cars on Specially Designed trenches•Gradient enabled Conduits
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Types of Transportation Concepts
In Floor Non Powered Transportation Concept
VerticalThis concept is applied at multiple levels or elevations . Commonly used methods are
•Light Trolleys with Wall Scaling Rails•Gradient enabled Conduits
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Types of Transportation Concepts
In Floor Powered Transportation Concept
These have a travel path that is embedded in the floor and require Electric Powered Motor and Fuel Powered Motor Trolleys besides Air Pressure to facilitate product flow between locations.
HorizontalThis concept is applied at a single level or elevation . Commonly used methods are
•Mini Trains on Rails•Cars on Specially Designed trenches•Vacuum Conduits
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Types of Transportation Concepts
In Floor Powered Transportation Concept
VerticalThis concept is applied at multiple levels or elevations .
Commonly used methods are•Elevators•Escalators•Vacuum Conduits
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Types of Transportation Concepts
Overhead Non Powered Transportation Concept
These are unique in characteristics in this that the travel path is above the floor level . These require Gravity or Employee power to facilitate product flow between locations. The support for the travel path is from the ceiling , the wall or from the floor with stands or racks . These facilitate movement from a higher to a lower gradient only .
•Slides•Tubes or pipes•Suspended Platforms
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Types of Transportation Concepts
Overhead Powered Transportation Concept
These also have the travel path above the floor level . These require Electric Power , Air Pressure or vacuum to propel the load carrying surface or the product to facilitate flow between locations.
Horizontal Used for a single level or elevation•Conveyor Belts or Lines•Tubes or pipes ( vacuum powered )•Powered Platforms ( suspended )
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Types of Transportation Concepts
Overhead Powered Transportation Concept
VerticalUsed for multiple levels or elevations•Conveyor Belts or Lines•Tubes or pipes ( vacuum powered )•Powered Platforms ( suspended )
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Types of Transportation Concepts
Fixed Travel Path Transportation Concept
These are Load Carrying Surfaces that follow an orderly sequence or travel path through the facility . These are powered by an Electric Motor , air pressure or vacuum or computerised .
• Assembly lines• Trains or Cars• Fork lifts
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Types of Transportation Concepts
Variable Travel Path Transportation Concept
These are Load Carrying Surfaces that do not follow an orderly sequence or travel path through the facility . These are powered by an Electric Motor or Fuel Powered Motors and are driven by employees .
•Cars•Fork lifts
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Types of Activities
There are two types of activities in each of the Product Transportation concepts
•Static Activities•Dynamic Activities
Static ActivitiesStatic activities occur at a Workstation ( either at origination or at the culmination ) before the load carrying surface or the load is readied for transportation
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Types of Activities
Dynamic ActivitiesDynamic activities occur at a workstation ( as before ) and during the transportation process ( as found fit ) at the instant the load carrying surface or the load is readied for transportation
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Types of Activities
Static ActivitiesThese activities include•Compiling necessary information•Presenting the information in a comprehendible form
( to a person or a machine )•Issuing Authorisations accordingly
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Types of Activities
Dynamic ActivitiesThese activities include• Readying the Product and / or the Load Carrying
Surface• Loading the Product / Surface• Despatching the Product / Surface
• manually• mechanised• automated
• Traversing the Path• Diverting wherever necessary• Ensuring correct halts• Unloading• Run Out
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Concept Design Parameters
These Parameters include• Product Dimensions ( length , width , height , weight
, shape )• Product Quantities ( Volumes )• Product Mix ( based on processing , shapes ,
dimensions , despatch )• Open Space required for the Product or Load
Carrying Surface• Customer or Workstation ‘working’ space• Fragility of the Product• Crushability of the Product
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Concept Design Parameters
• Transportation or traversed distance• Orientation of Traversed Distance• Goodness of Traversed Distance• Effort of the Traversed Distance• Number of Pickup and Delivery Points• Location of Pickup and Delivery Points• Loading and Unloading Methods• Production Method• Number of trips in a defined time bucket• Geographic Location of Facility and Safety
Measures
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What is Quality ?
Usual Responses
• Inspection• Responsibility of the Quality Control Department• Measurement Activity• Statistics• Technical Activity• Support Function
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The total composite product and service characteristics of marketing , engineering , manufacture , and maintenance through which the product and the service in use will meet the expectations of the customer - Armand V. Feigenbaum
A product or a service possesses Quality if it helps someone live better materially and /or otherwise and enjoys a large and sustainable market
- W. Edwards Deming
Quality is defined as fitness for purpose . To be fit for purpose , the product/service must have features that satisfy customer needs and must be delivered free of deficiencies. - Joseph M. Juran
Quality is conformance to requirements - Phillip B. Crosby
Different Definitions of Quality
...degree to which a set of inherent characteristics fulfils requirements- ISO 9000 : 2008
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“ A people focussed management system that aims at continual increase in customer satisfaction at continually lower cost , working horizontally across functions and departments , involving all employees and processes , top to bottom , extending forwards and backwards to include the Supply chain as well as the Customer chain . ”
Quality Management
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SP
EC
IFICA
TIO
NPRODUCTION
INS
PE
CTI
ON
SHEWHART CYCLE
Specification
A commitment that has to be met implying “satisfied requirements”
Production
An effort that is carried out to meet these requirements
InspectionAn act carried out to assess the effectiveness of the
efforts to meet these requirements
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1. Idea for placing importance on Quality2. Responsibility for Quality3. Research4. Standards for Designing and Improvement of Products5. Economy of Manufacturing6. Inspection of Products7. Expansion of Sales Channels8. Improvement
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Customer
1.Design the Product (with appropriate Tests)
2.Make it, test it in the Production Line and in the Laboratory
3. Put it on the Market
4.Test it in Service, through Market Research, find out what the user thinks of it, and why the non-user has not bought it
THE DEMING WHEEL
manufacturerthe user andthe non user
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Plan a change or a test aimed at improvement
Do - Carry out the change or test ( preferably on a small scale )
Study the results . What went wrong? What did we learn?
Act - Adopt the change , or abandon it , or run through the cycle again
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What is a Control Chart?A Control Chart is a statistical tool used to distinguish between process variation resulting from common causes and variation resulting from special causes.
Statistical Methods
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What Are the Control Chart Types?
• X-Bar and R Chart
• Individual X and Moving Range Chart
Other Control Chart types:
• nP Chart
• c Chart
• p Chart
• u Chart
Statistical Methods
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Are youchartingattributedata?
Data arevariables
Data
Is sampleSize equal
to 1?
Use XmRchart forvariables
data
Use XmR for Attributes data or
other control chart types
For sample sizebetween 2 and15, use X-Barand R Chart
NO
YES
YES
NO
Control Chart Decision Tree
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Control Chart used where the Sample size is the Same
nP Chart
UCL = nP + 3
LCL = nP - 3
nP = Average Number of Rejections
P = Overall Proportion of Rejects
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Example
A lot of 50 pieces were being produced per worker per day in a factory . The following rejects were observed every day for each worker . Draw a Control Chart and state your conclusions .
WorkersDay
1 2 3 4
Worker 1 9 11 7 8
Worker 2 6 11 11 9
Worker 3 12 7 5 5
Worker 4 11 10 13 9
Worker 5 14 8 9 11
Worker 6 4 11 12 12
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nP = Average Rejections = Total number of Rejections / Total number of attempts = 225 / 24 = 9.38
P = Overall Proportion of Rejects = Total number of Rejections / total number produced = 225 / 24*50 = 225 / 1200 = 0.188
Now
UCL = nP + 3 LCL = nP - 3
= 9.38 + 3
= 9.38 + 3(2.76)
= 9.38 + 8.27
= 17.66
= 9.38 - 3
= 9.38 - 3(2.76)
= 9.38 - 8.27
= 1.11
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Control Chart used where the Bulk Sample is the Samec Chart
UCL = c + 3 LCL = c - 3
c = Average Number of Blemishes
An officer from the NHAI provided the following data for the number of potholes found for every 10 kilometres over a stretch of 150 kilometres on the Mumbai Nasik Highway . Draw a c Chart and state your conclusions
Sample
1 2 3 4 5 6 7 8 91
01
11
21
31
41
5
Potholes
2 4 1 1 4 5 2 1 2 3 4 3 5 2 1
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c = Average Number of Blemishes = Total number of blemishes / Total number of Samples
= 40 / 15 = 2.667
UCL = c + 3 LCL = c - 3
= 2.667 + 3
= 2.667 + 4.889
= 7.567
= 2.667 - 3
= 2.667 – 4.889
= -2.222 LCL = 0
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Steps in drawing an XmR Chart
• Decide what are the data to be collected
• Collect Data
• Arrange data in their chronological sequence
• Calculate Average ( X bar )
• Compute Moving Range ( MR )
• Calculate Average Moving Range ( MR bar )
• Substitute in the formulae
• UCL = Xbar+2.66(MRbar)
• LCL = Xbar-2.66(MRbar)
XmR Chart
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XmR Chart
Example
Date1
/82
/83
/84
/85/
86/
87/
88
/89/
81
0/8
Minutes
19
22
16
18
19
23
18
15
19
18
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Calculating MR bar
Compute differences between successive values arranged in their chronological sequence and take the modulus of those values ( MR )
Calculate the average of the differences (MR bar)
Example
XmR Chart
Date1
/82
/83
/84
/85/
86/
87/
88
/89/
81
0/8
Minutes
19
22
16
18
19
23
18
15
19
18
Ranges
3 6 2 1 4 5 3 4 1Average = 187 / 10 = 18.7 ; MRbar = 29 / 9 = 3.2
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Steps in drawing an XmR ChartSubstituting in the formulaeUCL = Xbar+2.66(MRbar) = 18.7+2.66(3.2) = 27.27LCL = Xbar-2.66(MRbar) = 18.7-2.66(3.2) = 10.13Plotting the Chart we get…
XmR Chart
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Constructing an X – bar and R Chart
Step 1 - Determine the data to be collected.Step 2 - Collect and enter data by subgroupStep 3 - Calculate and enter subgroup averagesStep 4 - Calculate and enter subgroup rangesStep 5 - Calculate grand meanStep 6 - Calculate average of subgroup rangesStep 7 - Calculate UCL and LCL for subgroup averagesStep 8 - Select scales and plotStep 9 - Document the chart
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Average X = X1 + X2 + X3 +…..+Xn
nWhere X is the averageand X1… are the individual values in the subgroupn is the total values in the subgroup
X = X1 + X2 + X3 + ……+Xn nRange R = Largest value in each Subgroup – Smallest value in each Subgroup
Average R = R1 + R2 + R3 +…..+Rn
n
Where R is the average Range and R1… are the individual Ranges of the subgroups n is the total number of Subgroups
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UCL = Xdbar + A2 Rbar
LCL = Xdbar – A2 Rbar
Use value of A2 based on number of
values in subgroup = n
n A2
3 1.023
4 0.729
5 0.577
6 0.483
7 0.419
8 0.373
9 0.337
10
0.308
11
0.285
12
0.266
13
0.249
14
0.235
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Subgroup
1 2 3 4 5 6 7 8 9
X115
.314
.41
5.315
.01
5.314
.915
.61
4.014.
0
X214
.915
.51
5.114
.81
6.415
.316
.41
5.815.
2
X315
.014
.81
5.316
.01
7.214
.915
.31
6.413.
6
X415
.215
.61
8.515
.61
5.516
.515
.31
6.415.
0
X516
.414
.91
4.915
.41
5.515
.115
.01
5.315.
0
Averages
15.36
15.04
15.82
15.36
15.98
15.34
15.52
15.58
14.56
Ranges
1.5
1.2
3.6
1.2
1.9
1.6
1.42.
41.6
Grand Average = 15.40Range Average = 1.82
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Factors in Job Design
Task analysis• how tasks fit together to form a job
Worker analysis• determining worker capabilities and responsibilities
for a job
Environment analysis• physical characteristics and location of a job
Ergonomics• optimising number of limb and eye movements to
complete the task
Technology and automation• replacing the human element in the task to be
performed
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Task Analysis
• Description of tasks to be performed• Task sequence• Function of tasks• Frequency of tasks• Criticality of tasks• Relationship with other jobs/tasks• Performance requirements• Information requirements• Control requirements• Error possibilities• Tasks duration(s)• Equipment requirements
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Worker Analysis• Capability requirements• Performance requirements• Evaluation• Skill level• Job training• Physical requirements• Mental stress• Boredom / Fatigue• Motivation• Number of workers• Level of responsibility• Monitoring level• Quality responsibility• Empowerment level
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Environmental Analysis
• Workplace location• Process location• Temperature and humidity• Lighting• Ventilation• Safety• Logistics• Space requirements• Noise• Vibration
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Three Aspects of Job Instructions
• Knowledge of “Supposed to do”• Knowledge of “Is Doing”• Knowledge of “Regulating the Process”
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Different Types of Process Charts
• Outline Process Chart• Flow Process Chart ( Man , Material , Equipment )• Two Handed Process Chart• Multiple Activity Chart
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Worker-Machine Multiple Activity Chart
Job : Photo ID CardsJob : Photo ID Cards Date : 3/2/2013Date : 3/2/2013
Operator Time (min)Time (min) Photo Machine
Key in Customer Data on Card
2.6 minutes Idle
Feed Data Card in 0.4 minutes Accept Card
Position Customer for photo
1.0 minutes Idle
Take Picture 0.6 minutesBegin Photo
process
Idle 3.4 minutes3.4 minutesPhoto / Card
processed
Inspect Card and Trim edges 1.2 minutes1.2 minutes Idle
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Worker-Machine Time Chart
SummarySummary
Operator Time
%Photo
Machine Time%
WorkWork 5.8 63 4.8 52
IdleIdle 3.4 37 4.4 48
TotalTotal 9.2 100 9.2 100
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Work Measurement
• Determining how long it takes to do a job ( in manufacture and in service )
• Time studies• Standard time
• is time required by an average worker to perform a job once
• incentive piece-rate wage system was based on time study ( now used for improvement purposes only )
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1. Establish standard job method2. Break down job into elements3. Study job4. Rate worker’s performance (RF)5. Compute average time (t)
Work Measurement
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6.Compute normal time
7.Compute standard time
Normal Cycle Time = NT = ΣNt
Normal Time = (Elemental average) x (rating factor)
Nt = (t )(RF)
ST = (NT)(1 + AF)
Standard Time = (normal cycle time) x (1 + allowance factor)
Work Measurement
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Computation of Standard Time
Observed Time
Rating Factor
Normal Time
Process Allowance
Relaxation Allowance
Contingency Allowance
Special Allowance
Policy Allowance
Standard Time
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Performing a Time Study
Time Study Observation Sheet
Identification of operation Sandwich Assembly Date 6/2
Operator Approval Observer
Cycles Summary
1 2 3 4 5 6 7 8 9 10 Σ t NtRFt
Place ham, cheese, and lettuce on bread
1
2
3
4
Grasp and lay out bread slices
Spread mayonnaiseon both slices
Place top on sandwich,Slice, and stack
t
t
t
t
R
R
R
R
.11 .44 .79 1.13 1.47 1.83 2.21 2.60 2.98 3.37
.04 .05 .05 .04 .06 .05 .06 .06 .07 .05 .53 .053 1.05 .056
.04 .38 .72 1.05 1.40 1.76 2.13 2.50 2.89 3.29
.07 .06 .07 .08 .08 .08.07 .07 .10 .09 .77 .077 .0771.00
.11.12 .14 .12 .12.13.13.13 .14 .14 1.28 1.28 1.10 .141
.93.23 .55 1.25 1.60 1.96 2.34 2.72 3.12 3.51
.12.10 .08 .09 .12 .10.11 .11 .10.10 1.03 1.03 1.10 .113
.33 .67 1.01 1.34 1.71 2.07 2.44 2.82 3.24 3.61
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Normal time = (Elemental average)(rating factor)Nt = ( t )(RF) = (0.053)(1.05) = 0.056
Normal Cycle Time = NT = Σ Nt = 0.387
ST = (NT) (1 + AF) = (0.387)(1+0.15) = 0.445 min
Average element time = t = = = 0.053 Σt10
0.5310
Performing a Time Study
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How many sandwiches can be made in 2 hours?
= 269.7 or 270 sandwiches120 min0.445 min/sandwich
Performing a Time Study
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Performing a Time StudyExample
Operator is Rated at 110 %Allowable Factor is 9.1 %Fatigue Factor is 10 %
Compute Standard TimeCompute Output in 8 hours
Job Element
Cycles
1 2 3 4
1 0.160.
120.
330.
15
2 0.60.
60.
590.
61
3 0.330.
370.
350.
35
4 0.50.
50.
490.
51
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Learning CurvesIllustrates improvement rate of workers as a job is repeatedProcessing time per unit decreases by a constant percentage each time output doubles
Units produced
Pro
cess
ing
tim
e p
er u
nit
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Learning Curves
tn = t1nbTime required for the nth unit =
where:
tn = time required for nth unit producedt1 = time required for first unit producedn = cumulative number of units produced
b = where r is the learning curve percentage (decimal coefficient)
loger
loge2
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Learning Curve Example
A Process designed to assemble Computers had the following attributes.t1 = 18 hourslearning rate = 80%What is time taken for 9th, 18th, 36th units?
t9 = (18)(9)ln(0.8)/ln 2 = (18)(9)-0.322
= (18)/(9)0.322 = (18)(0.493) = 8.874hrst18= (18)(18)ln(0.8)/ln 2 = (18)(0.394) = 7.092hrst36= (18)(36)ln(0.8)/ln 2 = (18)(0.315) = 5.674hrs
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Learning Curve for Mass Production Job
Standard time
End of improvement
Units produced
Pro
cess
ing
tim
e p
er u
nit
I
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Element
Elemental Average Time in
minutes
Rating Factor
Step 1
0.20 5 %
Step 2
0.08 10 %
Step 3
2.20 7.5 %
Step 4
0.05 12.5 %
Step 5
0.10 20 %
ExampleThe following times in minutes were observed for different steps carried out to complete a job . The following factors were considered besides the Rating factors mentioned in the table . Relaxation Allowance was 10 % . Special Allowance was 5 % . Calculate Standard time . Calculate standard output in 8 hours . Suppose one of the operators makes 100 jobs in 6 hours – what is his efficiency ?
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Maintaining and Improving Equipment
Maintenance• Often viewed as an ‘Overhead Cash
Pit’• Largely : Breakdown Repair• Highly understaffed• Carried out in haste
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Maintaining and Improving Equipment
Breakdown Maintenance• Finding the Breakdown• Remedying the Breakdown• Shuffling to make up for lost time
Outcomes :• Unnecessary Capital Investment• Large Inventories of finished / semi-finished
product• Large Inventories of Spares
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Equipment Problems
Machine Malfunction• Machine Deterioration resulting in
shortened machine life• Machine Inefficiency resulting in eventual
high costs• Incorrect output – Scrap and Rework
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Equipment Problems
Machine Breakdown• Safety Hazards resulting in Injuries• Idled workers resulting in High
Inventories• Idled Facilities resulting in Schedule
delays
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Preventive Maintenance
The practice of tending to equipment so that it is never idle because of a malfunction or a breakdown thus being in a state of optimal operation at all times
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Maintainability
Maintainability is the effort and cost of performing maintenance . There are two measures of maintainability
• Mean Time To Repair ( MTTR )• Mean Time Between Failures ( MTBF )
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Mean Time To Repair ( MTTR )
MTTR = Σ ( Downtime for Repair ) / Number of Repairs
Downtime for repair includes :
• Waiting for repair Personnel• Diagnose Problem• Locate necessary Spares• Remedy the problem ( Repair )• Test the Equipment• Handover to owner
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Mean Time Between Failures ( MTBF )
MTBF = Total Running Time / Total Number of Failures
MTBF is used to estimate Reliability of an item expressed as a function of time
So Reliability R(t) = e-λT
where
λ = 1 / MTBF ( failure rate )T = Specified timee = Naperian Logarithm ( 2.718 )
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ExampleTwenty Machines are operated for 100 hours . One Machine fails at 60 hours and another machine fails at 70 hours . The rest of the eighteen machines run for the complete 100 hours . Calculate MTBF .
Total Running Time for the machines is
18 ( 100 ) + 60 + 70 = 1930 hours
Total Number of Failures = 2
So MTBF = 1930 / 2 = 965 hours
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Example
For the same example what would be the reliability of the machine ata)500 hoursb)900 hours
λ = 1 / MTBF = 1 / 965 = 0.0010362
So by the formula
R ( 500 ) = e -0.0010362(500) = 0.596 or 60 %
And
R ( 900 ) = e -0.0010362(900) = 0.394 or 40 %
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ExampleFor the same example suppose there is a component that helps the machine revert to a reliability of 100 % , when should it be replaced so that the machine performance does not slip below 90 %
Reliability R(t) = e-λT where
R(t) = 0.9
So , substituting we get
0.9 = e -0.0010362(T)
Solving by transposing , T = 109.2 hours(101.7)
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AvailabilityAvailability is the proportion of time the equipment is actually available to perform work out of the time it should be available to perform work
Taking into account MTBF and MTTR
The total time of running of a machine in a given period of time is MTTR + MTBFTime it is available is MTBF
So Availability ( A ) = MTBF / ( MTBF + MTTR )
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MTTR MTBF
MTTR = 5 ; MTBF = 15 ; A = 75%
MTTR MTBF
MTTR = 5 ; MTBF = 20 ; A = 80%
MTTR MTBF
MTTR = 2 ; MTBF = 20 ; A = 90%
Relationship between Availability and MTTR + MTBF
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AvailabilityAvailability can also be given asA = Actual Running Time / Planned Running Time
where
Planned Running Time = Total Plant Time – Planned Downtime
Actual Running Time = Planned Running Time – All other Downtime
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AvailabilityPlanned Downtime includes
• Meals• Rest Breaks• Scheduled Preventive Maintenance
All other Downtime includes• Setup Time• Equipment Breakdown• Unavailability of Material
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ExampleA plant working in 2 shifts of 8 hours each has 2 hours of planned downtime per shift . On an average it has been observed that 110 minutes are consumed for set up of the machine and 75 minutes for breakdown / malfunction . Calculate Availability
Planned Running Time = 16 – 2(2) hours = 12 hours = 720 minutes
Actual Running Time = 720 – 110 – 75 = 535 minutes
A = 535 / 720 = 0.7431 = 74 %
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Efficiency
Efficiency is a measure of how well an equipment performs when it’s running . There are two components of efficiency
Rate EfficiencySpeed Efficiency
Rate Efficiency =
Actual Production Volume x Actual Cycle Time / Actual Running Time
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Example
If in 535 minutes it has been observed that 830 units have been produced but the actual cycle time for each unit is 0.6 what is the rate efficiency of the equipment ?
Rate Efficiency = Actual Production Volume x Actual Cycle Time / Actual Running time
= 830 x 0.6 / 535 = 498 / 535 = 0.9308
= 93 %
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EfficiencySpeed Efficiency
The Ratio of Designed Cycle Time to Actual Cycle Time is called as Speed Efficiency of the Equipment
Speed Efficiency = Designed Cycle Time / Actual Cycle Time
ExampleIf designed cycle time is 0.5 per unit for previous example
Speed Efficiency = 0.5 / 0.6 = 0.833 = 83%
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Efficiency
Performance Efficiency
Performance Efficiency = RE x SE
= 0.9308 x 0.8333 = 0.7756 = 77 %
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Yield
Yield is also termed as Quality Rate and is expressed as a ratio of
Good Units Produced / Total Units Produced
Example
If the equipment under consideration produces 800 good units out of 830 units , Yield is given as
800 / 830 = 0.9639 = 96 %
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Overall Equipment Effectiveness ( OEE )
OEE = Availability x Performance Efficiency x Yield
Example
For the equipment under consideration , OEE
= 0.7431 x 0.7756 x 0.9639 = 0.55
55 %
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The Need for something "New"
• Operators accepted chronic stoppages as ‘inevitable’
• Operators suffered from an attitude of “I operate – you clean and fix”
• The relation between the chronic stoppages and equipment components was not explored fully
• Maintenance Operators were not trained in the Science of Investigation and Remedy of Equipment Problems
• Slight Defects were often ignored
TPM = Total Productive Maintenance
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TPMFirst implemented at Toyota Motor Company in 1962
The MissionAdvanced Products for an Advancing Society
The Policy
• Aim for World-class Quality• Corporate Growth through Product Leadership• Product Development through Technological
Research• Greater Efficiency through Greater Flexibility• Revitalise the Corporation through Employee
Talent
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The Need for TPMThe Purpose
The purpose of TPM is not only to keep the equipment in a state of optimal operation at all times – but also to tailor the equipment so that it becomes robust enough to withstand any changes in it’s vicinity and flexible enough to be adaptable in the wake of technological advances
The Philosophy
We are all responsible for our Equipment
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TPM Policy and Objectives
• To Maximise Overall Equipment Effectiveness through Total Employee Involvement
• To continually improve reliability and maintainability of equipment resulting in higher productivity and Quality
• To maximise economy of operation for the entire life of the Equipment
• To continually enhance skills and expertise of all employees ( with relation to their equipment )
• To continually enhance the work environment and enrich jobs
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Eight Steps to TPM
1. Conduct Initial Cleaning2. Address causes of Dirty Equipment3. Reduce the number of ‘Hard-to-Clean’ areas4. Document and Standardise Maintenance
Activities5. Familiarise Operators with Optimal operating
conditions6. Develop Diagnostic Skills and Cultivate
Autonomy7. Organise and Manage the entire Workspace8. Strive for Continual Improvement
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Conduct Initial Cleaning
• Get rid of all debris and prevent accelerated deterioration
• Identify hidden problems made apparent by cleaning and correct them
• Familiarise Operators with the nuances of equipment operation
Cleaning is Inspection
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Causes of Dirty Equipment
• Prevent Scattering of dust and contaminants wherever possible
• Prevent dirt from adhering to different parts of the equipment
• Work on Improving Equipment
Localise scattering of Debris
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Work on Hard-to-Clean Areas
• Design better methods for continual cleaning• Work on creating ‘Visual Controls’• Make equipment more ‘transparent’
Hard to Clean is Hard to Inspect
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Standardise Maintenance Activities
• Enlist factors of Deterioration• Draft provisional standards of cleaning , inspecting
and maintenance• Study the structure and function of the Equipment
thoroughly
Adhere and Empower
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Develop Operating Conditions
• Learn of Equipment Optimal Performance Parameters• Work with experts to learn of Equipment Deterioration• Document relationship of deterioration to
surroundings and effects of deterioration• Work on establishing early warning signals
Establish Conditions
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Develop Diagnostic Skills
• Create Checklists and Use them appropriately• Improve Operational Reliability and Clarify Abnormal
conditions• Establish and Document appropriate Corrective and
Preventive Measures
Control Conditions
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Manage Entire Workspace
• Standardise and Document Workshop Housekeeping Procedures
• Facilitate an All-encompassing Companywide Maintenance Programme
• Establish the 5S System• Cover all areas and all assets in the organisation
Manage Conditions
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Improve Continually
• Train each and every person in the organisation in TPM
• Record and Analyse Equipment Data continually and facilitate organised feedback
• Relate Maintenance Goals to Company Goals• Integrate Equipment Management into Long term and
Annual Organisational Plans
Transcend Performance Standards
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5 S Technique5 S Process
The 5 - S practice is a technique used to maintain a “Quality Culture” in an organisation.
The name stands for 5 Japanese words
•Seiri•Seiton•Seiso•Seiketsu•Shitsuke
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5 S Process
整理 – Seiri = Sort
Arrange and discard unnecessary items
• Have all unnecessary items been removed ?• Is it clear why the unnecessary items were there in
the first place ? • Are all loose wires tied up and bundled ? • Have all hoses / pipes been grouped ? • Are all walkways clearly outlined ?
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5 S Process 整頓 – Seiton = Straighten
Everything has a place and everything in it's place
• Have special Areas been designated for different items ?
• Are things put away after use ? • Have all joints been tightened / fastened ? • Are all workstations , drawers , shelves and
cleaning implements kept in an orderly fashion ? • Are any visual indicators used to indicate things
out of place ?
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5 S Process 清掃 – Seiso = Scrub
Clean all areas / remove dust and grime
• Are all workstations free from dry dust and wet dust ? • Are all relevant fixtures , jigs , tools clean ? • Are the work areas clean ? • Are suitable ventilation equipment / exhausts clean ?
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5 S Process
清潔 – Seiketsu - Standardise
Standardise the above three activities
• Have procedures been written for the above three activities ?
• Have instructions for cleanliness and 'everything in it's place' been given ?
• Are regular checks being carried out ? • Is maintenance a part of activities being carried
out ?
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5 S Process
躾 – Shitsuke - Systemise
Systemise all of the above activities
• Have all of these disciplines been extended for personal activities ?
• Have all office spaces been assigned 5S activities ?
• How often are audits carried out companywide ?
• What are the improvements being carried out ?
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Seiri
Throw away things that are not neededDeal with causes of dirt leaks and noiseOrganise cleaning the floors and housecleaningTreat defects, leakage and breakageOrganise the storage of parts and filesPolicy of “One-is-best”- one set of tools/stationery- one page form/memo- one day processing- one stop service for customer- one location file
Typical Activities Location Action by
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Seiton
Everything has a clearly designated name and place30-second retrieval and storageFiling standards and controlZoning and placement marksEliminate covers and locksFirst in, first out arrangementNeat notice boards (also remove obsolete notices)Easy-to-read notices (including zoning)Straight-line and right angle layoutFunctional placement for materials, parts, tools etc
Typical Activities
Location Action by
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Seiso
Individual cleaning responsibility assignedMake cleaning and inspection easierRegular cleaning campaignsCleaning inspections and correct minor problemsClean even the places most people do not notice
Typical Activities Location Action by
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Seiketsu
Transparency ( e.g. glass covers for see-through)Inspection “OK” marks or labelsDanger zones marked on meters and switches‘Danger’ warning signs and marksFire extinguisher and ‘Exit’ signsDirectional markings on pipes, gangways etcOpen and shut directional labels on switches etcColour-coded pipesFoolproofing (Poka-yoke) practicesResponsibility labelsElectrical/telephone wire managementColour coding - paper, files, containers etcPrevent noise and vibrationDepartment/office labels and name platesPark-like environment (garden office/factory)
Typical Activities Location Action by
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Shitsuke
All-together cleaningPractice pick-up of components and wasteWear your safety helmet/gloves/shoes etcPublic-space 5-S managementPractice dealing with emergenciesExecute in individual responsibilityGood telephone and communication practicesDesign and follow the 5-S manualSeeing-is-believing: check for 5-S environment
Typical Activities Location Action by
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Mistake proofing
Mistake proofing is a scientific technique for improvement of operating systems including materials, machines and methods with an aim of preventing problems due to human error
The term “error” means a sporadic deviation from standard procedures resulting from loss of memory, perception or motion.
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Defect Vs errors
It is important to understand that defects and errors are not the same thing.
A defect is the result of an error, or an error is the cause of defects as explained below.
Error Defect
Cause Result
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Prevention of defects
Machineor
human errorDetect error
Take corrective
action
zerodefect
Analyse for preventive
action
Cause Intermediate result End result
Modify workprocedure to
prevent such errors
WorkProcedure
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• Error in memory of PLAN : Error of forgetting the sequence/ contents operations required or restricted in standard procedures.
• Error in memory of EXECUTION : Errors of forgetting the sequence/contents of operations having been finished.
• Error in PERCEPTION of type : Error of selecting the wrong object in type or quantity.
• Error in perception of MOVEMENT : Error of misunderstanding/misjudging the shape, position, direction or other characteristics of the objects.
• Error in motion of HOLDING : Error in failing to hold objects.
• Error in motion of CHANGING : Errors of failing to change the shape , position , direction , or other characteristics of object according to the standard.
Types of Error
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Human error provoking situations
• Complex design• Inadequately written standards• Too many parts• Mix up• Too many steps• Specifications or critical conditions• Too many adjustments• Frequent repetition
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Finger print ID lock is an excellent example of mistake proofing. There's no need to fumble for your keys in the dark any more. The Fingerprint ID Door Lock is a cylindrical lock combined with a security bolt that will let you into the house using just your finger. It reads your unique fingerprint and only allows entry to prints it recognises.
Examples of mistake proofing
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Examples of mistake proofing
Gas pumps are equipped with hose couplings that break away and quickly shutoff the flow of petrol.
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Examples of mistake proofing
Automobiles controls have a mistake proofing device to ensure that the key in the on position before allowing the driver to shift out of park ( for automatic gears ).The keys can not be removed until the car is in park.
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Examples of mistake proofing
3.5 inch diskette can not be inserted unless diskette is oriented correctly.This is as far as diskette can be inserted upside-down.
The beveled corner of the diskette pushes a stop in the disk drive out of the way allowing diskette to be inserted.This feature,along with the fact that the diskette is not square,prohibit incorrect orientation.
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Examples of mistake proofing
Electronic car locks can have three mistake proofing devices:
• Ensures that no door is left unlocked.
• Door automatically locks when car exceeds a predetermined speed
• Lock won’t operate when door is open and engine is running.
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Examples of mistake proofing
New lawn mowers are required to have a safety bar on the handle that must be pulled back in order to start the engine.If you let go of the safety bar,the mowers blade stops in 3 seconds or less.This is an adaptation of the”dead man switch” from railroad locomotives.
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Examples of mistake proofing
Retail stores use electronic article surveillance to ensure that no one walks away without making payment.