What is productivity

Productivity

Output Input
=

value if goods/services cost of resources consumed

Resources/Inputs Materials, Capital, Labour/Manpower Technology information Performance

PRODUCTIVITY INDEX
OUTPUT ______ INPUT PERFORMANCE ACHIVEMENT _____________________ RESOURCES CONSUMED EFFECTIVENESS ___________ EFFICIENCY

Productivity- measurement

Input variables

Output variables

Payroll Costs Employment Costs No. of Manpower No. of Hours Worked Time taken.

Units produced Products sold Tasks completed Revenue obtained Value added Standard reached

Performance Ratios

St. Hours for Production Actual Hrs Worked

Target Performance Actual Performance

Influencing Labour Productivity

Where labour has no control
Material Supplies Reliability of Design Production Methods Product Variety Reliability of
plant electricity water other services

New Labour

Influencing Labour Productivity

Where labour has full control
Starting time Stoppage time Lunch breaks Scraps due to Carelessness Accidents Absenteeism

Measuring Labour Productivity

Quantitative Statements
Historical Costs Variance Statements under Budgetary Control

Variance Statements under Standard Costing

Total Quality Management

What is TQM ?
Total quality management refers to the deep commitment of an organisation to quality. Quality of products and services is an obsession, and every step in the companys processes is subjected to intense and regular scrutiny for ways to improve it. Almost every issue is subject to exploration and is a continous one.

PHASE1: Identify the opportunity Customer surveys, employee surveys, Brainstorming by workgroups

PHASE2:Analyse the current process Develop process flow diagram Define target performance measures Collect the available data and information using Pareto chart analysis, Flow chart, run charts, check sheets, cause and effect diagram, opportunity flow diagram, control charts
PHASE3:Develop the optimal solution(s) Creativity plays a major role Create new processes Combine different processes Or Modify the existing processes Brainstorming is principle technique

PHASE4:Implement changes Contents of implementation plant report must fully describe WHY will it be done? HOW WHEN WHO WHERE Monitoring activities using measurement tools like pareto diagrams, run charts , questionaires , etc. PHASE5:Study the results Institutionalize meaningful change Ongoing Measurement Evaluation to achieve continuous improvement If the team is not satisfied then some of the phases will be repeated.

PHASE6:Standardise the solution Positive control (Positrol)of process Process certification Operator certification Prevents back sliding PHASE7:Plan for the future Regardless of the how successful initial improvement efforts are, the improvement process continues.

Kaizen: The Key to Japan's Competitive Success

MEANING
In Japanese Kai (Change) Zen ( become good) Japanese companies distinguise between Innovation (Radical) and Kaizen (continuous) Resulting in: Continuous Incremental Improvement

Process:
It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.

 People at all levels of an organization can participate in kaizen, from the CEO down, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group.

EXAMPLE:
At Toyota, it is usually a local improvement within a workstation or local area and involves a small group in improving their own work environment and productivity. This group is often guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's key role. While kaizen (at Toyota) usually delivers small improvements, the culture of continual aligned small improvements and standardization yields large results in the form of compound productivity improvement. Hence the English usage of "kaizen" can be: "continuous improvement" or "continual improvement." Literally, it translates to: "good change."

Implementation

TOYOTA :
The Toyota Production System is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen.

Shewhart cycle /Deming cycle / PDCA

The PDCA cycles The cycle of kaizen activity can be defined as: standardize an operation measure the standardized operation (find cycle time and amount of in-process inventory) gauge measurements against requirements innovate to meet requirements and increase productivity standardize the new, improved operations continue cycle.

Key features:
Key elements of Kaizen are: 1. Quality, effort , 2. Involvment of all employees, 3. Willingness to change and 4. Communication. The Five Foundation Elements Of KAIZEN: 1) Team work 2) Personal Discipline 3) Improved morale 4) Quality circles 5) Suggestions for improvement

OUT OF THESE FOUNDATION:

THREE KEY FACTORS ARISE: 1) Elimination of waste (muda) and efficiency 2) The Kaizen five - S framework for good housekeeping. Seiri- Tidiness Seition- Orderliness Seiso cleanliness Seiketsu- Standardized clean up Shiitsuke 3) Standardization

What is a Quality Circle?

 Joel E. Ross and William C. Ross define a quality circle as "a small group of employees doing similar or related work who meet regularly to identify, analyze, and solve product-quality and production problems and to improve general operations. The circle is a relatively autonomous unit (ideally about ten workers), usually led by a supervisor or a senior worker and organized as a work unit.

 Quality Circles is a term used in human resources management that refers to the technique of motivating workers by allowing them input into decisions concerning the production process, thereby increasing productivity and profits.

 Productivity will increase for two reasons: because the person best able to decide the most efficient way to do a job is the person who does it for a living and because employees who have greater control over the product will be more committed and effective workers

 They are based on two ideas: Employees can often make better suggestions for improving work processes than management; and Employees are motivated by their participation in making such improvements. Thus, implemented correctly, quality circles can help a small business reduce costs, increase productivity, and improve employee morale.

Concept
The concept of QC is primarily based upon recognition of the value of the worker as a human being, as someone who willingly activises on his job, his wisdom, intelligence, experience, attitude & feelings. It is based upon the HRM considered as one of the key factors in the improvement of product quality & productivity. QC concept has 3 major attributes:

a. Quality Circle is a form of participation management.

b. Quality Circle is a human resource development technique.

c. Quality Circle is a problem solving technique

Objectives
To improve quality, productivity & profitability To secure employee involvement, motivation & development To improve management-employee relations To improve communications at all levels To develop team spirit among the employees To provide better working environment of employees.

Benefits of Forming Quality Circles

The benefits are that QCs: Promote individual self-development

Promote teamwork and fellowship

Improve overall company performance and corporate image

THANK YOU