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Prepared By:Urvesh Dungarani(140050119506)
Guided by: Shalini Singh
INDUSTRIAL
ENGINEERING
 Organizational objective
• VFM for customers
• Improve overall productivity
 Q : Quality
 S : Service
 R : Customer relationship
 P : Price
 L : Lead time
Output : Good or services
Input : Man, Machine, Material, Information, Capital
 Technique of improving
◦ VFM
◦ Productivity
 Major discipline of Industrial engineering
The systematic examination of the method of carrying
on activities so as to improve the effective use of
resources and to set up standards of performance for
the activities being carried out.
Systematic recording and critical examination of
existing and proposed ways of doing work, as a means
of developing and applying easier and more effective
methods and reducing cost
 Select job/process to be examined & observe current
performance
• high process cost, bottlenecks, tortuous route, low
productivity, erratic quality
 Record & document facts
• activities performed
• operators involved - how etc
• equipment and tools used
• materials processed or moved
 Apply critical examination - challenge job components &
necessity (purpose, place, sequence, method).
 Develop alternative methods & present proposals
 Document as base for new work system
 Install, monitor (slippage) & maintain
 Improvement in use of all inputs
 Economy in human effort
 Layout improvement
 Improvement in design of plant and machinery
 Improvement in safety standards and
procedures
 Better working environment
 Outline process chart
 Flow process chart
 Travel chart
 Multiple activity chart
 Data flow diagrams
 High operating cost
 High wastage & scrap
 Excessive movement of materials and workmen
 Excessive production bottlenecks
 Excessive rejections and rework
 Complaints about quality
 Complaints about poor working condition
 Increasing number of accidents
 Excessive use of overtime
The application of technique designed to establish time
for a qualified worker to carry out a task at a defined
rate of working at a defined level of performance
Fair Day’s work
 Why define/measure work?
◦ standard, reliable methods
◦ control performance & quality
◦ obtain predictability
◦ defined labour costs & performance
◦ set pay rates & provide data for effort-reward
relationship
 Why set standard times
◦ assumptions about competent, motivated workers
◦ be clear about "allowances" & fatigue
 Finding ineffective time in an activity
 Setting standards (norms) for output level
 Performance evaluation – capability management
 Capacity management
 Comparing work methods
 Scheduling – facility operations
 Establishing wage incentives schemes
 Stop – watch time study
 Work sampling
 Predetermined times standards
 Standard data
 Techniques to establish the time for a qualified,
motivated worker to carry out a task at a defined rate
of working
 Example – Cricket pitch curator
 One of the most common types of work measurement
is time study
 For example - Purpose
An international coffee shop chain may want to find
out how long a barista should take to make a specific
coffee drink. Some of the stated condition may include
using cold milk that needs to be steamed, rather than
already steamed milk.
 Observations
◦ A qualified practitioner should observe the
employee using a time measurement device. The
observer should also assess the quality of work
 Observed Person
◦ The observed person in the time study must be fully
trained in the measured task
 Employees are your company's life. Providing
incentives for employees can boost productivity and
confidence in the workplace, especially in a poor
economy
 Customers place pizzas orders
 A single order may contain several pizzas
 Each customer is in one of many service areas
 Each customer is serviced by one of 6 outlets
 Each customer is allocated an outlet depending on
their area location
 All pizzas are made at all outlets
 All work is different - idiographic vs/ nomothetic
 Large firm/employer and large engineered systems only
 Work study is obsolete
 It is exploitative of workers
 It has never been and never will be accepted here
 Increased productivity and increased efficiency
 Reduced manufacturing costs
 Improved work place layout
 Better manpower planning and capacity planning
 Fair wages to employees
 Better working conditions for employees
 Improved workflow
 Reduced material handling costs
 Better industrial relations and employee morale
 Provides better job satisfaction to employees
 Human capital managers
 Capability managers
 Capacity managers
 Project managers
 Consultants
 Leaders
F W Taylor(1856 – 1915)
◦ Father of scientific measurements and IE
◦ Criticism
 Raising standards
THANK YOU

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IE Methods for Improving Productivity & Reducing Costs

  • 1. Prepared By:Urvesh Dungarani(140050119506) Guided by: Shalini Singh INDUSTRIAL ENGINEERING
  • 2.  Organizational objective • VFM for customers • Improve overall productivity
  • 3.  Q : Quality  S : Service  R : Customer relationship  P : Price  L : Lead time
  • 4. Output : Good or services Input : Man, Machine, Material, Information, Capital
  • 5.  Technique of improving ◦ VFM ◦ Productivity  Major discipline of Industrial engineering
  • 6. The systematic examination of the method of carrying on activities so as to improve the effective use of resources and to set up standards of performance for the activities being carried out.
  • 7.
  • 8. Systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing cost
  • 9.  Select job/process to be examined & observe current performance • high process cost, bottlenecks, tortuous route, low productivity, erratic quality  Record & document facts • activities performed • operators involved - how etc • equipment and tools used • materials processed or moved  Apply critical examination - challenge job components & necessity (purpose, place, sequence, method).  Develop alternative methods & present proposals  Document as base for new work system  Install, monitor (slippage) & maintain
  • 10.  Improvement in use of all inputs  Economy in human effort  Layout improvement  Improvement in design of plant and machinery  Improvement in safety standards and procedures  Better working environment
  • 11.  Outline process chart  Flow process chart  Travel chart  Multiple activity chart  Data flow diagrams
  • 12.  High operating cost  High wastage & scrap  Excessive movement of materials and workmen  Excessive production bottlenecks  Excessive rejections and rework  Complaints about quality  Complaints about poor working condition  Increasing number of accidents  Excessive use of overtime
  • 13. The application of technique designed to establish time for a qualified worker to carry out a task at a defined rate of working at a defined level of performance Fair Day’s work
  • 14.  Why define/measure work? ◦ standard, reliable methods ◦ control performance & quality ◦ obtain predictability ◦ defined labour costs & performance ◦ set pay rates & provide data for effort-reward relationship  Why set standard times ◦ assumptions about competent, motivated workers ◦ be clear about "allowances" & fatigue
  • 15.  Finding ineffective time in an activity  Setting standards (norms) for output level  Performance evaluation – capability management  Capacity management  Comparing work methods  Scheduling – facility operations  Establishing wage incentives schemes
  • 16.  Stop – watch time study  Work sampling  Predetermined times standards  Standard data
  • 17.  Techniques to establish the time for a qualified, motivated worker to carry out a task at a defined rate of working  Example – Cricket pitch curator
  • 18.  One of the most common types of work measurement is time study  For example - Purpose An international coffee shop chain may want to find out how long a barista should take to make a specific coffee drink. Some of the stated condition may include using cold milk that needs to be steamed, rather than already steamed milk.
  • 19.  Observations ◦ A qualified practitioner should observe the employee using a time measurement device. The observer should also assess the quality of work  Observed Person ◦ The observed person in the time study must be fully trained in the measured task
  • 20.  Employees are your company's life. Providing incentives for employees can boost productivity and confidence in the workplace, especially in a poor economy
  • 21.
  • 22.
  • 23.  Customers place pizzas orders  A single order may contain several pizzas  Each customer is in one of many service areas  Each customer is serviced by one of 6 outlets  Each customer is allocated an outlet depending on their area location  All pizzas are made at all outlets
  • 24.  All work is different - idiographic vs/ nomothetic  Large firm/employer and large engineered systems only  Work study is obsolete  It is exploitative of workers  It has never been and never will be accepted here
  • 25.  Increased productivity and increased efficiency  Reduced manufacturing costs  Improved work place layout  Better manpower planning and capacity planning  Fair wages to employees  Better working conditions for employees  Improved workflow  Reduced material handling costs  Better industrial relations and employee morale  Provides better job satisfaction to employees
  • 26.  Human capital managers  Capability managers  Capacity managers  Project managers  Consultants  Leaders
  • 27. F W Taylor(1856 – 1915) ◦ Father of scientific measurements and IE ◦ Criticism  Raising standards

Editor's Notes

  1. Finding customers and retaining them- continually provide max VFM to customers to sustain highest level of customer satisfaction or as Prof. NJ “Customer astonishment” Improving – overall productivity and min the overall cost as much as possible .. Thus max profits
  2. Value for customer Service : Pre, during and post customer service
  3. Measure of output per unit input Output should be acceptable by the cutomer. Increase output and keep input constant Keep output constant and increase input Increase both keeping proportional increase in o/p is more than i/p
  4. Pioneering techinque of improving VFM and productivity Major discipline of Industrial Engineering and even to date remains the basic of all other technique
  5. Inputs: Man, machine, material, capital and information.
  6. A qualified worker is one who is accepted as having the necessary physical attributes, possessing the required intelligence and the education and having acquired the necessary skill and knowledge to carry out the work in hand to satisfactory standards of safety, quantity and quality. It measures time and separated effective time from in effectives and hence by this we can reduce the inefective time Fair days work : amount of work done by qualified employee in standard condition and not limited by processes
  7. Capacity mgmt – resources and plant and machinery
  8. When our qualified worker is doing a defined job with standard performance, the time taken to do it (use a stop-watch) is the basic time for the job. If we have time data for mowing and marking up a cricket pitch then we can estimate how many hours it will take to prepare all the cricket pitches on a public sports ground. Contracts to grounds-keeping firms can be prepared. A standard time = basic time + relaxation allowance + other allowance
  9. Assumes: set sequence, routine work cycle (all workers), little discretion, 100% effort rating - trained/qualified, motivated/committed, working at normal pace & not fatigued .Fix standard time and enter into measured work manual/database. Time study determine how long a qualified worker under stated conditions can reasonably be expected to complete a task. time Study: establish standard times - management knowledge rate operator performance - criteria for appraisal gather information to calculate production capabilities & data for capacity planning. define/cost work content of finished goods and services e.g. for charging & estimating
  10. Observations: For instance, the manager in the example would be an ideal observer in conducting a time study of coffer making work. Observed Person: A person making coffee, for example, must be fully trained and familiar with the process of coffee making if the time study wishes to determine how long it takes to make the coffee.
  11. Nomethetic – philosophical Idiographic – clinical science – describes pecularity
  12. Nomethetic – philosophical Idiographic – clinical science – describes pecularity The human factor is very important for WS Good relations is a key factor for success Eductaional qualification
  13. Leaders – captains MS Dhoni, BA, analysis, estimators
  14. Critics : labors .since work could be measured now… goal were met management raised standard