The amount of output per unit of input (labor, equipment, and capital).

There are many different ways of measuring productivity. For example, in a factory productivity might be measured based on the number of hours it takes to produce a good, while in the service sector productivity might be measured based on the revenue generated by an employee divided by his/her salary. Define Productivity Classically, productivity is defined as Output divided by Input. -orSome say productivity is the same as profit, selling price minus all costs -orToyota sees Profit = (Price – Cost) x Volume, assuming that the manufacturer cannot dictate the sales price. Different mathematics, same theory: To improve productivity or gain profit, raise output and / or lower input. JPR offers the complimentary summary below, of productivity viewed from the industrial context, because we have found that any theoretical measurement must be carefully interpreted to yield meaningful results. You are welcome to apply the following insights within your organization. Just because there are complicating factors to productivity measurement, do not stop the effort to measure. Recognize that answers may not be perfectly accurate, but still can be a good indicator of productivity change. And you can fine tune the initial mechanism to yield ever better results. This summary is academic in nature. For specific ways to improve business productivity, please click on the Improve Productivity link to the left. Good luck with your productivity improvement. Let me know how useful this summary is to you. Jack Greene, at jack@jacksonproductivity.com, or 843-422-1298. Productivity Measurement A snapshot in time In most cases any single productivity measurement is not very informative, because it is a snapshot in time. Measure the same entity again, a year or a month earlier and the results will be more informative. Measure again in a month, and every month, to monitor changes, or a trend. What do we measure? Aim for a total productivity measurement Generally when "Productivity" is discussed, we really mean "Labor", the people side of the manufacturing enterprise. But if we measure only labor we get information that is useless at best and misleading at worst. One company may be highly automated, so their labor productivity is very good compared to a more manual company. But the automated company may be unprofitable because it has so much money invested in equipment, or runs higher expense to maintain equipment. Delphi in 2005 sought bankruptcy protection at the same time that many of its factories were winning Lean Manufacturing awards. Measure total productivity in an organization to capture the comprehensive effect of labor, executive prowess, waste, equipment utilization, effective automation, employee input, sales and marketing, new products, product quality, customer service. See how the result tracks with the bottom line of the P&L over a period of time. Since corporate results do not indicate where a problem may be, measure smaller entities as well, both line and staff. Many financial measurements are in use already for management to monitor some portion of overall productivity. Accounts receivable days outstanding, and inventory turns, and return on investment, and net profit to name a few. What is a good productivity index? What is bad? Is it possible to look at one productivity number and learn if it represents an acceptable rate or not? No. There is not one magic number because are too many variables involved.

Comparisons over Time Periods A productivity value as stated has no meaning alone. a result does not indicate what actions caused the change. or inventory strategy. or an automated one. These particular groups often incur or cause capital and expense costs in the expectation of increased productivity in an operating department. or vertical integration. Groups such as sales. Including its costs in a productivity measure can make comparison with a non-regulated industry meaningless. which are both major factors in productivity. as costs are extensive yet benefits usually affect future years more than immediate results.One can at best measure productivity over a period of time and determine how much it changes. Define a measurement system. Apples to apples Comparisons tend to be inaccurate unless they are "apples to apples". All of those factors affect productivity measurement. and measure their productivity as they perform the mission. Use a productivity measurement in conjunction with other performance data such as profitability or return on investment or cash flow. Most companies will therefore convert added sales to better . Measure a factory by units of tractors produced. If a company is profitable but has a lower productivity than another. and corporate functions should however be included in productivity results. One significant variable in productivity measurement is sales volume. Measure again in a month using exactly the same procedures. or employee / contractor levels. Some departments are organized to produce a service for the organization. or regulatory requirements. relate units to the business of the entity. incrementally more volume will cause more direct cost of materials and labor. or last year. have much to do with overall productivity but department output is not easily defined. measure within the organization. For meaningful insights. insurance policies written. Yet comparisons over time seldom involve purely identical sets of variables. How do they compare? Internal comparisons between entities may show differences in productivity that reflect operating conditions. perhaps a newer facility is more productive. If possible. or one with a more stable work force. The preferred productivity units for large or small entities should be dollars spent per unit of output generated. and their output is expressed differently. or training levels. A major Research and Development group also is difficult to measure. Different companies have different automation levels. because measuring man-hours alone does not account for capital investment and overhead expense. quality. define expected results. HR. ads sold. but the sales organization by tractors sold. Exclusion from Measurement A Regulatory Affairs group is absolutely necessary in some industries. marketing. tractors produced. Include these people in overall division or corporate measurements. State the mission of such a department. so an overall measurement "before" and "after" can be an effective way to monitor result against intentions. division. If these groups have proven management techniques to plan and control their effectiveness. that indicates an opportunity but not a cause for alarm. make calculations for a particular time frame. packages delivered. or they assure that all factors are the same from one comparison to another. usually of a general management nature. IT may also be hard to measure but that is all the more reason to include them in productivity calculations based on corporate sales and profit values. Other plant. and the customer service group by tractors maintained. they may well be excluded from corporate productivity measures. Overhead allocation must be correct for accurate internal comparisons. because the groups being measured are different. then another calculation for a different time frame. and the values start to have significance. Sales volume will always affect productivity measurement. Units of measure You will probably need to apply different units of measure. The key to meaningful results is to incorporate all functions into one or more productivity measures. but usually no more plant managers or corporate aircraft or receptionists. Some departments. Even then.

Not busy but productive Be advised that the results of any measurement. then the group that generates such output may have 100% busy-ness but zero productivity. In economics. the much emulated Toyota Production System emphasizes personal development of line workers and supervisors. Productivity can be seen not only as a measure of efficiency but also as an indicator of economic development. productivity or otherwise. Other groups who should be idle for good overall productivity are security guards. If output is measurable but has no value to the business entity. advances in productivity stemmed from a number of innovations. a single type of input is selected for the productivity ratio. can report only part of the story. made great strides following the development of such technologies as steam power. training will appear to be unproductive but would shortly lead to even higher productivity. The net effect of variables is that comparisons will be usually require some interpretation. but it becomes difficult when productivity involves a whole company or a nation. One problem with trying to measure productivity is that a decision must be made in terms of identifying the inputs and outputs and how they will be measured. it does not report what caused the result. Later in the 20th century. police and firemen. though productivity calculations are actually seldom made for land or capital since their capacity is difficult to measure. Direct labor hours is a factor that most companies monitor because they pay their employees based on hours worked. and crime prevention and better building codes may take the place of emergency reactions. Busy versus productive A group may be busy but not productive. or capital — can be used as the denominator of the ratio. by counting workers engaged on a particular product. just-in-time manufacturing. Another group may not be always busy but at the same time contribute extensively to the productivity of their overall organization. including assembly lines and automation. the ratio of output production to input effort.S. Partial productivity is the simplest type of productivity measure. and just-in-time inventory management. Industry and government officials have adopted three common types of productivity measures. the effects of increasing productivity are most apparent in the use of labour. database management systems. the final result. and the gasoline motor. The pattern of increase typically exhibits long-term stability interrupted by sudden leaps that represent major technological advances. this can be done by producing more output with the same level of input. In industrialized nations. Costs may be shifted but still be present. Examples are maintenance people who keep their equipment in good repair so that they can stand by while operators produce. . computer-integrated manufacturing. In a business or industrial context. A busy maintenance person usually means the equipment is not at work and that is bad. Productivity increases as a primitive extractive economy develops into a technologically sophisticated one. the railroad. Incrementally less volume will have the opposite effect. a measure of productive efficiency calculated as the ratio of what is produced to what is required to produce it. labour. Productivity can also be increased by producing the same output with fewer inputs. which is usually accomplished by training. Any of the traditional factors of production — land. If the goal is to increase productivity. Increases in productivity have tended to lead to long-term increases in real wages. The productivity ratio is an indicator of the efficiency with which an enterprise converts its resources (inputs) into finished goods or services (outputs). Preventive maintenance hours may take the place of demand maintenance. For instance.productivity as well as better overhead absorption and better profits. Productivity in Europe and the U. The company or organization selects an input factor that it monitors in daily activity. This is relatively easy when productivity of an individual is considered. In a productivity measurement result. Labour is in most cases easily quantified — for example.

a technology consulting service. the gross national product (GNP) is used as the output. Causes o Productivity is linked to employee morale. A study done by the Corporate Executive Board says that because employee engagement is down there has been a 5% decrease in productivity. while outputs are the results. America Online and Salary. capacity. external influences. Production planning. Investment in research and development allows companies to develop new products and processes that are more productive. According to an Inc. The inputs could be grouped in various categories as long as they determine the total inputs required to produce an output. electronic processes for certain tasks can free up employee time so that they can maximize their efficiency with other tasks. Significance o Productivity directly affects a company's profit. Operations research. When employees are happy at work they have more motivation. their efficiency saves their company money in time and labor. In turn. Some general categories for these factors are product. Define Employee Productivity X Kyra Bartolomei This article was created by a professional writer and edited by experienced copy editors. 2010 Productivity is the driving force behind a company's growth and profitability. process. When employees are unproductive. and quality. Wage incentive plans and changes in management structure are two ways that companies focus on the labor force. plagiarism review. factchecking. QuoStar Solutions. eHow Contributor updated: July 23.S. because many governments collect statistics on both labor and capital. they take longer to complete projects.Total factor productivity is a productivity measure combines that labor and capital. Poor morale causes employees to be disengaged. and other steps in an effort to provide reliable information.com report. employers lose about $544 billion every year due to unproductive employees. states that innovative technology is one way that employers can boost productivity. which increases productivity. two of the most common input factors used in the partial productivity measure.com conducted a survey that revealed that U. their productivity will suffer. When employees are productive they accomplish more in a given amount of time. To realize a lucrative enterprise it is important to understand how productivity works. Quality improvement programs can reduce waste and provide more competitive products at a lower cost. All articles go through an editorial process that includes subject matter guidelines. Resources o If employees are not given the proper resources to do their jobs easily and efficiently. Having automated. In calculating at the national level. both qualified members of the Demand Media Studios community. If the outputs are equivalent to the inputs. By Kyra Bartolomei. labor force. There are many different plans that companies develop in an attempt to improve productivity. which cost employers more money due to the lost time. Solutions . Definition o Productivity is a measurement or calculation between inputs and outputs. Inputs are the amount of time and effort spent working. Total productivity is a productivity measure that incorporates all the inputs required to make a product or provide a service. This measure is often used at the national level. See also Methods engineering. Many factors affect productivity. the worker is considered productive.

e. Remarks Area Column/Bar Yes Yes Cumulated totals (numbers or Percentage.o There are ways to tackle low productivity. Efficiency is getting all your testing done in the shortest time possible with the least amount of resources. according to some measure. 1. Overview of Chart Types and their Uses Chart Type PIG Typical Applications Variants.They are often mistaken for each other. A bar chart or bar graph is a chart with rectangular bars with lengths proportional to the values that they represent. According to Tech Republic. which when varied can achieve any combination of the two qualities. etc. engine. multiple columns/bars. Effectiveness is the quality of completing a number of satisfactory. some examples of continuous data would be 'height' or 'weight'. according to some measure. I am not a SQA specialist. work items in whatever time frame. data which has discrete values and is not continuous. usually expressed as a percentage. and let humans do what we do best--think. must be small columns/bars centered at zero Proportional relationships over May be scaled to 100% Segmented Yes . 2. time frame. 2. 3. horizontal different conditions. competency in performance. Multi-task. but they are both effective. 4. but not more than 3-5 tasks at a time. but not equivalent. Bar charts also look a lot like a histogram. Efficiency is the quality of completing a given number of work items in satisfactory. data sets (bars). The bars can be plotted vertically or horizontally. the ratio of the work done or energy developed by a machine. The concepts are related. for which you would use a bar chart. A bar chart is very useful if you are trying to record certain information whether it is continuous or not continuous data. Effectiveness : Effectiveness is the extent to which the program satisfies specifications and fulfills user needs. accomplishment of or ability to accomplish a job with a minimum expenditure of time and effort: The assembly line increased industry's efficiency. 3. A diesel engine is more efficient than a gasoline one. to the energy supplied to it. Cumulative percentages) over time Observations over time or under Vertical (columns). Also let computers do what they do best--compute.. Some examples of discontinuous data include 'shoe size' or 'eye colour'. but probably the general answers would suffice. Effectiveness is doing the job right. efficiency the state or quality of being efficient. This will eliminate wasted employee hours spent surfing the Internet or talking to friends over email and instant messaging. In contrast. Note that both effectiveness and efficiency depend on certain pre-agreed measures. productivity can be combated by installing monitoring software that tracks what employees do all day long. Bar charts are used for plotting discrete (or 'discontinuous') data i. Efficiency : Efficiency is amount of computing resources and code required by a program to perform a function.

human or animal bodies Chart Types Different sets of data are particularly suited to a certain chart type. lined up side-by-side. This type of chart is best suited for showing data for a large number of groups (for example. Area An area chart displays data as areas filled with color or patterns. OR. Pie A pie chart displays data as a pie. If. displaying data as sections of a circle or doughnut. and WA). This type of chart is best suited for representing three series of data. you have the option to choose multiple pie charts for multiple groups of data. you would see the total number of sales (the figure) in the center of the doughnut and the regions as colored sections of the doughnut. the percentage of sales for the entire inventory). you charted sales by region on a particular report. sales for 1997.Column/Bar Frequency Polygon Histogram Line. and 1999). 3-D Riser A 3-D Riser chart displays data in a series of 3-dimensional objects. The following is an overview of the main chart types and their most common uses. The 3-D Riser chart shows the extremes in your report data. For example. Bar A bar chart (also known as a column chart) displays or compares several sets of data. percentage of total sales for AZ. if an analog relation can data. CA. Two useful bar charts are the Side-by-Side bar chart and the Stacked bar chart. however. This type of chart is best suited for showing data for a limited number of groups (for example. • Stacked bar chart A Stacked bar chart displays data as a series of vertical bars. split and filled with color or patterns. each series represented by a color stacked in a single bar (for example. OR. Pie charts are typically used for one group of data (for example. and WA). 1998. . CA. This type of chart is best suited for showing data for several sets over a period of time (for example. Curve Pie No No Yes Yes time Discrete frequency distribution Discrete frequency distribution Trends. can also be used for parts of be used for representing data devices. the differences between sales by customer by country are visually dynamic when presented in this chart. functional relations Columns/bars without gaps Data point connected by lines or higher order curves Proportional relationships at a Segments may be pulled out of point in time the the pie for emphasis (exploded pie chart) Distribution of data points along One-dimensional. in a 3-dimensional plane. last year's sales figures for AZ. Line A line chart displays data as a series of points connected by a line. one or two dimensions dimensional two- Scatterplot Map No No Typically used for geographical Useful. • Side-by-Side bar chart A Side-by-Side bar chart displays data as a series of vertical bars. As with the pie chart. Doughnut A doughnut chart is similar to a pie chart. for example. total sales over the past several years). you have the option to choose multiple doughnut charts for multiple groups of data.

Radar A radar chart positions group data. the user can determine. It is useful for monitoring financial or sales activities. including sales. For example. in a visually dynamic and relational format. like pie charts. In this way. are typically used for one group of data (for example. for example. This type of chart can also be useful in identifying potential problem areas in an organization's sales processes. you would have a collective of plotted points that represents the pool of customer information. months. you might consider using the 3-D Surface chart. weeks. increasing in value. and track specific tasks in a project. A bubble chart would be very effective with the number of products sold in a certain region." and the start and end-date fields should be added to the "Show value(s)" area of the Chart Expert's Data tab. while the vertical axis shows a series of tasks or events. countries. from the center of the radar to the perimeter. thus creating a true numeric X-axis or a true date/time X-axis. If. the greater the number of products sold in that region. and years. Bubble A bubble chart displays data as a series of bubbles. The field you choose for the data axis should be set to "For Each Record. XY Scatter An XY Scatter chart is a collective of plotted points that represent specific data in a pool of information. the percentage of sales for the entire inventory). how specific group data relates to the whole of the group data. days. A Gantt chart is constructed with a horizontal axis representing the total time span of the project. Stock A stock chart presents high and low values for data. Gauge charts. The radar chart then places numeric values. Frequently used in project management. at a glance. For example. or months) and a vertical . Viewing all of this data on an XY Scatter chart would allow you to speculate as to why certain products were selling better than others or why certain regions were purchasing more than others. The horizontal axis shows a time span. Numeric Axis A numeric axis chart is a bar. Horizontal bars on the chart represent event sequences and time spans for each item on the vertical axis.3-D Surface 3-D Surface charts present a topographic view of multiple sets of data. such as countries or customers. A funnel chart is similar to a stacked bar chart in that it represents 100% of the summary values for the groups included in the chart. You should use only date fields when creating a Gantt chart. Gauge A gauge chart presents values graphically as points on a gauge. The XY Scatter chart allows the user to consider a larger scope of data for the purpose of determining trends. an American engineer and social scientist. coordinate. products. Numeric axis charts provide a way of scaling your X-axis values. antt charts may be simple versions created on graph paper or more complex automated versions created using project management applications such as Microsoft Project or Excel. the larger the bubble. A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L. Gantt A Gantt chart is a horizontal bar chart often used to provide a graphical illustration of a schedule. where the size of the bubble is proportional to the amount of data. Funnel Funnel charts are often used to represent stages in a sales process. line. or area chart that uses a numeric field or a date/time field as its "On change of" field. you need a chart to show the number of sales by customer by country. at the perimeter of the radar. a Gantt chart provides a graphical illustration of a schedule that helps to plan. if you input customer information. broken down into increments (for example. the amount of potential revenue shown for each stage. Gantt.

and time span for each task. as. Horizontal bars of varying lengths represent the sequences. As water is poured out of a bottle. and then enter the other tasks below the first one and representative bars at the points in time when you expect to undertake them. By increasing the width of the bottleneck one can increase the rate at which the water flows out of the neck at different frequencies. Automated Gantt charts store more information about tasks. such that its limited capacity reduces the capacity of the whole chain. a fact that would be heeded as a deleterious and significant overall drawback on the process. but one problem with them is that they don't indicate task dependencies . Another example is in a Surface Mount Technology (SMT) Board Assembly Line with several equipments aligned. It looks ahead ensure that the inputs consists not only of machinery and raw materials but of people skills. almost inevitably. Such limiting components of a system are sometimes referred to as bottleneck points. the rate of outflow is limited by the width of the conduit of exit—that is.5 THE CONCEPTS OF PRODUCTION PLANNING AND SCHEDULING The concept of production planning is probably best defined by reversion that to read “The planning of production”. install software). A bottleneck is a phenomenon where the performance or capacity of an entire system is limited by a single or limited number of components or resources. control systems funds and various types of inventories. you would put "conduct research" at the top of the verticle axis and draw a bar on the graph that represents the amount of time you expect to spend on the research. which is helpful. Charts may be adjusted frequently to reflect the actual status of project tasks as. and notes about the procedures. and facilities for manufacturing operations to produce product required for future. A bottleneck in project management is one process in a chain of processes. The term bottleneck is taken from the 'assets are water' metaphor. never allowing the slower ones to fully stop. procedures. They also offer the benefit of being easy to change. inducing the better and faster machines to always keep the PCB supply flowing up. The PERT chart. A vertical line is used to represent the report date. if the project is outfitting your computer with new software. they diverge from the original plan.hence. choose software.you cannot tell how one task falling behind schedule affects other tasks. As the project progresses.axis representing the tasks that make up the project(for example. it refers to the establishment of policies. arrowheads. usually the common sense is driven to set up and shift the bottleneck element towards the end of the process. In essence. Related concepts in project management are: • Critical path method • Theory of Constraints And an example is the lack of smelter and refinery supply which cause bottlenecks upstream. Effectiveness is also a measure of the quality of attainment in meeting objectives (Resource effectiveness or team effectiveness). As used here. Using the same example. It is ultimately tied to both capacity planning and product determination in which products will be produced and in what quantities and is future oriented. The bar spans may overlap. the major tasks involved might be: conduct research. secondary bars. timing. is designed to do this. is closely related to productivity Production Planning And Control 1. another popular project management charting method. or the portions of tasks that have been completed. Gantt charts give a clear illustration of project status. bottleneck. production . such as the individuals assigned to specific tasks. you may conduct research and choose software during the same time span. Effectiveness is to be distinguished from efficiency. or darkened bars may be added to indicate completed tasks. which is measured by the volume of output achieved for the input used and . for example.

funds availability and inherent product restrictions like process time or special storage requirements. than a count Pareto can. Schedules may be as specific as time and cost per. you will need to know the categories and how often each occurred. The purpose of a Pareto diagram is to separate the significant aspects of a problem from the trivial ones. suppose the problem that occurred 50 times costs only $. It is important to note that the division between planning. you would be likely to tackle the problem that occurred 50 times first. not just because they permit measurement of planning and scheduling abilities. He found that wealth was concentrated in the hands of the few and poverty in the hands of the many. By graphically separating the aspects of a problem. For example. how often each occurred. manpower and material etc on provides as detailed pots for utilizing there facilities to achieve immediate product objectives. but also because they provide cards warning of deviations and permit corrective action at early stages. The principle is based on the unequal distribution of things in the universe. However. Much of the value of production plans and scheduled are lost if procedures do not exist to provide information feedback.planning make sure that everything is available on time to meet the production target manufacturing system is circumscribed by various limiting factors such market price quality delivery requirements. identify and arrange everything in a work area • Shine . a team will know where to direct its improvement efforts. It is the law of the "significant few versus the trivial many. Scheduling. Based on the cost Pareto. you will need to know the categories. how well are plans functioning? How well as the schedules being adhered to ? These are important inputs. suppose you have 50 occurrences of one problem and 3 occurrences of another. A cost Pareto provides more details about the impact of a specific category. They also provide useful managerial developments tools and valuable information for future planning efforts. through inventors control is a complex attain involving both cost and the use of certain important Pareto diagram: What is it? A Pareto diagram is a simple bar chart that ranks related measures in decreasing order of occurrence. The principle was developed by Vilfredo Pareto. They may outline general steps needed to complete a task or they may lay down specific operations. while the trivial many will make up about 20%. Planning must take these into account so as to ensure task performance with both limitations and objectives. Based on a count Pareto. To create a counts Pareto.make it easy to maintain . an Italian economist and sociologist who conducted a study in Europe in the early 1900s on wealth and poverty. A scheduling starts with the desired end results and provides BLUE-PRO for accomplishing the task on hand. you will need to do a counts Pareto diagram. is more specific and less oriented to the future scheduling accepts current conditions like available machinery. Often the more specific a schedule is the better it can be used as a production control device. Cost Pareto Use this type of Pareto analysis if you want to know which category of problem is the most expensive in terms of some cost. starts times completion times etc. hat are the Five S's? Use the following links to learn more about 5S • Sort . There are two ways to analyze Pareto data depending on what you want to know: Counts Pareto Use this type of Pareto analysis to learn which category occurs most often.simplify and standardize .50 per occurrence ($25 total) and the problem that occurs 3 times costs $50 each time ($150 total). on the other hand. Reducing the largest bars identified in the diagram will do more for overall improvement than reducing the smaller ones. scheduling an control is artificial. you may want to tackle the more expensive problem first.regular cleaning and maintenance • Standardize . To create a cost Pareto. and a cost for each category.organize.the first step in making things cleaned up and organized • Set In Order ." The significant few things will generally make up 80% of the whole. The inventory control is the related aspect under production control.

Table 1 shows what these individual words mean. and standardization in the workplace. and Shitsuke. or simply "5S". Tidiness Orderliness Cleanliness Standardization Discipline Throw away all rubbish and unrelated materials in the workplace Set everything in proper place for quick retrieval and storage Clean the workplace. promoting a sense of pride in their work and ownership of their responsibilities. and stands for five (5) Japanese words that start with the letter 'S': Seiri. If everyone has quick access to an item or materials. work flow becomes efficient. The correct place. or material must be chosen carefully in relation to how the work will be performed and who will use them. Every single item must be allocated its own place for safekeeping. as well as returned in that same place quickly. or orderliness. Table 1. Because of seiri. The idea is to ensure that everything left in the workplace is related to work. Seiso. "5S" was invented in Japan. Some purists do not agree with these English words they argue that these words have lost the essence of the original 5 Japanese words. and the worker becomes productive. everyone should be a janitor Standardize the way of maintaining cleanliness Practice 'Five S' daily . is all about efficiency. It boosts the morale of the workers. item. seiri. and Sustain. effective use of space.• Sustain -maintaining what has been accomplished he 5S Process. A well-organized workplace results in a safer. and each location must be labeled for easy identification of what it's for. and careful purchase of items follow. simplification of tasks. Standardize. cleanliness. is a structured program to systematically achieve total organization. and unrelated materials in the workplace. Shine.make it a way of life. Seiketsu. An equivalent set of five 'S' words in English have likewise been adopted by many. position. Even the number of necessary items in the workplace must be kept to its absolute minimum. Seiton. this also means 'commitment' Fishbone Diagram . or holder for every tool. more efficient. Set (in place). People involved in Seiri must not feel sorry about having to throw away things. These are: Sort. 5S Definitions Japanese Term English Equivalent Meaning in Japanese Context Seiri Seiton Seiso Seiketsu Shitsuke Seiri The first step of the "5S" process. This step consists of putting everything in an assigned place so that it can be accessed or retrieved quickly. and more productive operation. Seiton Seiton. unnecessary. to preserve the "5S" acronym in English usage. refers to the act of throwing away all unwanted.

It can be used to structure a brainstorming session. Layers of branches indicate causal relationships.Also Called: Cause-and-Effect Diagram. When to Use a Fishbone Diagram • • When identifying possible causes for a problem. the facilitator writes it as a branch from the appropriate category. Ishikawa Diagram Variations: cause enumeration diagram. CEDAC (cause-and-effect diagram with the addition of cards). desired-result fishbone. Agree on a problem statement (effect). Again ask “why does this happen?” about each cause. process fishbone. time-delay fishbone. reverse fishbone diagram Description The fishbone diagram identifies many possible causes for an effect or problem. When the group runs out of ideas. Continue to ask “Why?” and generate deeper levels of causes. 2. Fishbone Diagram Example . It immediately sorts ideas into useful categories. Write sub-causes branching off the causes. Brainstorm all the possible causes of the problem. If this is difficult use generic headings: o Methods o Machines (equipment) o People (manpower) o Materials o Measurement o Environment 3. 5. 6. 4. Write the categories of causes as branches from the main arrow. Fishbone Diagram Procedure Materials needed: flipchart or whiteboard. Write it at the center right of the flipchart or whiteboard. Brainstorm the major categories of causes of the problem. Especially when a team’s thinking tends to fall into ruts. 1. marking pens. focus attention to places on the chart where ideas are few. Causes can be written in several places if they relate to several categories. Draw a box around it and draw a horizontal arrow running to it. Ask: “Why does this happen?” As each idea is given.

“Iron tools” can be considered a “Methods” problem when taking samples or a “Manpower” problem with maintenance personnel. . “Calibration” shows up under “Methods” as a factor in the analytical procedure. the intent of SPC is to monitor product quality and maintain processes to fixed targets. No matter how good or bad the design. SPC will not improve a poorly designed product's reliability. of the manufactured product itself and its asdesigned reliability. SPC is used to monitor the consistency of processes used to manufacture a product as designed. Layers of branches show thorough thinking about the causes of the problem. SPC can ensure that the product is being manufactured as designed and intended.” the idea “materials of construction” shows four kinds of equipment and then several specific machine numbers. variation reduction. Statistical process control (SPC) involves using statistical techniques to measure and analyze the variation in processes. therefore. Fishbone Diagram Example For example. experimental design. Thus. but can be used to maintain the consistency of how the product is made and. Note that some ideas appear in two different places. and process improvement plans.This fishbone diagram was drawn by a manufacturing team to try to understand the source of periodic iron contamination. and also under “Measurement” as a cause of lab error. process capability analysis. The team used the six generic headings to prompt ideas. Most often used for manufacturing processes. Statistical quality control refers to using statistical techniques for measuring and improving the quality of processes and includes SPC in addition to other techniques. under the heading “Machines. It aims to get and keep processes under control. such as sampling plans.

a graphical representation of certain descriptive statistics for specific quantitative measurements of the manufacturing process. These descriptive statistics are displayed in the control chart in comparison to their "in-control" sampling distributions. such as how quickly major vs. Control charts are also used with product measurements to analyze process capability and for continuous process improvement efforts. Benefits: . The comparison detects any unusual variation in the manufacturing process. Typical charts and analyses used to monitor and improve manufacturing process consistency and capability (produced with Minitab statistical software). which could indicate a problem with the process. minor shifts in process means are detected. Several different descriptive statistics can be used in control charts and there are several different types of control charts that can test for different causes.A primary tool used for SPC is the control chart.

while work measurement is typically concerned with any ineffective time associated with the method and subsequent establishment of time standards for the operation.• • • • • • • • Provides surveillance and feedback for keeping processes in control Signals when a problem with the process has occurred Detects assignable causes of variation Accomplishes process characterization Reduces need for inspection Monitors process quality Provides mechanism to make process changes and track effects of those changes Once a process is stable (assignable causes of variation have been eliminated). standard deviation (s). exponentially weighted moving average (EWMA) Selection of measures for SPC Process and machine capability analysis (Cp and Cpk) Process characterization Variation reduction Experimental design Quality problem solving Cause and effect diagrams Time Study & Methods Engineering Time Study and Methods Engineering (Analysis) are directly related. Time Study measures the time necessary for a job or task to be completed using the best method. provides process capability analysis with comparison to the product tolerance Capabilities: • • • • • • • • All forms of SPC control charts o Variable and attribute charts o Average (X— ). CuSum. combined Shewhart-CuSum. Time Study is the analysis of a specific job by a qualified worker in an effort to find the most efficient method in terms of time and effort. Methods Engineering/Analysis is the systematic recording and critical examination of the way tasks are completed in order to make improvements. Methods analysis is concerned with the reduction of the work content of a job or operation. Shewhart. Range (R). Methods Analysis Objectives are: .

For each operation performed on every part ask: • • • • • • Why? What? When? Who? Where? How? .• • • • • The improvement of processes and procedures. the following six questions can help to pinpoint areas for improvement. machines and manpower. Economy in human effort and the reduction of unnecessary fatigue. The improvement of plan. Development of a better physical working environment. In methods analysis. Improvement in the use of materials. office or service area layout.