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Standard of living Definition of productivity
Standard of living
The extent to which a person is able to provide the things that are necessary for sustaining and enjoying life. Standard of living of a representative family differs greatly in different parts of the world. What is considered a necessity in one part of the world could be considered a luxury in the other. Basic necessities of a minimum decent standard of living: Food, clothing, housing and hygiene. Also, security and education also considered constituents. Greater the amount of goods and services produced in any community, the higher its the average standard of living.
Standard of living
There are two ways of increasing the amount of goods and services produced: - Increase the employment and investment in creating jobs. So that more people are producing goods required for the society. - Increase productivity. Same amount of labor produces more goods. We want: More and cheaper food by increase in agricultural productivity More and cheaper clothing and housing by increased industrial productivity More hygiene, security and education by increasing overall productivity.
Ratio between output and input. Arithmetic ratio between the amount produced and the amount of any resources used in the production. The resources may be: land, material, plant, machines, tools, labor. It could be combination of all! Over a period of time, one can say that productivity has increased. How? Combination of improved technology, better planning, greater skills etc.
Note that, increased production does not mean increased productivity. Higher productivity means that more is produced with the same expenditure of resources; that is, at the same cost in terms of land, material, machine, time or labor. Alternatively, same amount is produced at less cost in terms of land, labor, material etc; thereby releasing some of these resources for the production of other things.
strengthening of the economic foundations of human well-being. As per the ILO.Productivity and standard of living If more is available at the same cost.g. . 3. by reduced working hours In general. 4. 2. or the same amount is available at lesser cost the whole community benefits. e. higher productivity provides ways for raising the standard of living by: Larger supplies of both consumer goods and capital goods at lower cost and prices Higher real earnings Improvement in working conditions. 6 1.
Depending on the individual environments. they are dependent. In countries where capital and skilled labor are in shortage compared to unskilled labor. Increasing the number of unskilled workers may be beneficial if by doing so an expensive machine or skilled craftsmen are enabled to increase production. 7 . decisions are to be made.Productivity in industry Many factors affecting productivity of each organization. one should look to increase the output per machine or per skilled worker. also. Industries where labor and capital costs are low compared to the material costs. better use of material and plant gives the greatest scope of cost reduction.
Government should make provisions for workers who are going to loose jobs because of technology improvement ± training and education programs.Government¶s responsibility 1. 3. Last step is specifically important for a developing country like India. It can: Have a balanced programs of economic development Take steps necessary to maintain employment Make opportunities for employment. Example: India¶s First Five-Year Plan (1952). 8 . 2. Government can create conditions favorable to raise productivity.
Management¶s responsibility The main responsibility for raising productivity in an individual organization lies with the management. We will look at management¶s role in increasing productivity of individual resource: 9 . as well as the organization on the whole. It can create a positive environment and obtain co-operation of the employees. Trade unions should encourage its members to provide such co-operation when the productivity program is beneficial to workers. It can implement productivity programs.
Purchase equipments and plants such that consumption of material is economical. At the operation stage: Use of correct process Right use of the process Operator training Proper handling and storage of products at all stages Proper packaging to reduce damage in transit 10 .Productivity of material At the design stage: Ensure least consumption of material.
before the land is purchased saves capital outlay (as well as interest expenses) A savings in material which has to be imported saves import duty and excise. 11 . machines and manpower Effective utilization and maximum productivity is an important source of cost reduction.Productivity of land. Reduction in the original specification. Productivity of manpower and machines is typically measured in terms of time (man-hours. machine-hours).
Excessive amount of material removal required. 12 . Excessive variety or lack of standardization.Factors tending to reduce productivity Work content added due to the product The product or its components are designed such that it is impossible to use most economical manufacturing processes. Incorrect quality standards.
13 . Working methods of operation causing wasted movements. time and efforts.Factors tending to reduce productivity Work content added due to process Incorrect machine (and/or hand tool) used Process not operated properly Non-optimal layout with wasted movements.
Improper maintenance of plant and machines. Improper supply of material. Failing to meet customer¶s requirement from the beginning.Factors tending to reduce productivity Ineffective time due to management Marketing policy which demands unnecessarily large number of products. equipment. Improper working conditions resulting in interrupted work. No plan for flow of work. Insufficient safety measures. 14 . No standardization of components between as well as within products.
Factors tending to reduce productivity Ineffective time within the control of worker Taking time off without good cause: by lateness. Failing to observe safety standards. by idling at work etc. Careless workmanship causing scrap or rework. 15 .
Management techniques to reduce work content .
it can never be completely scientific. and must partly be regarded as an art. planning and control which can be applied to management problems. always on the basis of ascertained facts. 17 . Since management deals with human beings.Nature of management Management is the organization and control of human activity directed towards specific ends. Management techniques are systematic procedures of investigation. Systematic approach to the solution of the problems proceeds step by step from known to the unknown.
Knowing the customer ± Management should conduct market research and consumer surveys to know the customer better.Reduce work content due to the product Coupling of product design and process design phases (design products such that most economical processes can be used). Pilot project/ prototyping to avoid mistakes at a advanced stage (very common in chemical companies). lenient standards lead to greater variability. 18 . Standardization of components. Setting correct quality standards Stricter standards lead to increased manufacturing time.
Operator training ± Improve working methods of the operative. Includes factory layout. 19 . working methods of the operative. this is specified by the R&D division or the license seller. Proper maintenance. In chemical industry.Reduce work content due to the method Process planning ± Identification of correct machines for the process. Method study ± Combine with process planning to give most suitable tools for the operative. Process research ± Identification of best manufacturing technique.
Proper programs should be applied only on the basis of sound standards of performance. 20 . Work measurement ± Setting up those standards. Material control ± Workers and machines should not be idle because of non-availability of material and tools. Production planning ± It is planning of proper programs of work so that plant and workers are kept supplied without having to wait.Reduce ineffective time due to the management Strategic decisions ± Which markets to enter can affect ineffective time to a great extent.
Hawthorne effect) Effective personnel policy and management¶s attitude towards the worker. A sound wage structure. including incentive schemes (typically based on time standards derived from work measurement).Reduce ineffective time within control of the worker Training. (Create conditions to make the worker get on with his work. Good relationship between management and worker. Make worker want to reduce ineffective time. 21 .
Two branches ± method study and work measurement. and which lead systematically to the investigation of all the factors which affect the efficiency and economy of the situation being reviewed. Work study focuses on human workers and can increase productivity at a lower cost. in order to effect improvement. Huge capital investment in process R&D may increase productivity.´ Rapid developments after World War II. Widely known as ³time and motion study. However.Work study Technique used in the examination of human work in all contexts. 22 . it is expensive and time consuming.
They should not be entrusted with the work study responsibilities. Therefore. without direct management duties. Someone in the staff and not a line position. they can only look at work study during their free time. responsibility should be given to someone who can work full-time on work study. 23 .Work study Since line managers are typically busy with the day-to-day activities. Workers also ruled out because they usually lack the knowledge of the big picture.
stores. Systematic process ± Covers all aspects of raising productivity. Applied everywhere: not only in manufacturing shops. offices. 24 . etc.Work study: A tool for management Means of raising productivity (and efficiency) of the factory by reorganization of work. Savings from work study start at once and continues as long as the improved operations are performed. Very accurate in setting standards of performance. laboratories. Typically involves low or no capital expenditure. and service industries like restaurants. One of the most penetrating tools of investigation available to management. shops.
time. 25 . effort or human ability. and throughout the organization.Work study: Beyond systematic Should be applied continuously. Basis of successful work study: complete intolerance of waste in any form ± whether of material.
Work measurement ± The application of techniques designed to establish the time for a qualified worker to carry out a specified job at a defined level of performance.Techniques of work study Method study ± Systematic recording and critical examination of existing and proposed ways of doing work. Method study is associated with the reduction of the work content of a job or operation. as a means of developing and applying easier and more effective methods and reducing costs. while work measurement is mostly concerned with the investigation and reduction of any ineffective time associated with it. 26 .
Basic procedure of work study 1. Define the new method and time to standardize. 7. Develop most economic method taking in to considerations all circumstances. 2. Measure the quantity of work involved in the method selected and calculate a standard time for doing it. 5. Maintain the new standards by control procedures. 27 . Record from the direct observations everything that happens. 6. Examine the recorded facts critically and challenge everything that is done. Institutionalize the new method and time as practice. 8. 3. 4. Select the job or process to be studied.
Method study .
Improvements of factory.Objectives Improvement of processes and procedures. shop and workplace layout and of design of plant and equipment. machines and manpower. 29 . The development of a better physical working environment. Improvement in the use of materials. Economy of human efforts and the reduction of unnecessary fatigue.
30 . Select an unpopular job for method study.Selecting the work to be studied Economic considerations Bottlenecks Movements of material over long distances Operations involving repetitive work Technical considerations Relatively straight forward Based on the technical knowledge of the process Human considerations Most difficult to foretell ± because of mental and emotional nature.
6.Important considerations 1. 2. 3. 4. 5. 31 . Product and operation Person who proposed investigation Reason for proposal Particulars of the job Equipment Layout Product Savings and/or increase in productivity expected. 7. 8.
Chronocyclegraph .Travel chart 32 .Two-handed process chart Charts using a time scale .PMTS chart Diagrams indicating movement .Multiple activity chart .Cyclograph .Flow diagram . Material and Equipment type .Simo chart .Outline process chart .Flow process chart ± Man.Method study charts and diagrams Charts indicating process sequence .Sting diagram .
Man-type ± Records what the worker does Material-type ± Records what happens to materials. Equipment-type ± Records how the equipment is used. Flow process chart: A chart setting out the sequence of flow of a product or a procedure b recording all events under review using the appropriate chart symbols.Method study charts and diagrams Outline process chart: Is a process chart giving an overallpicture by recording in sequence only the main operations and inspections. 33 .
Should not be from memory. Increased value if following is included: Product. equipment details (code#. Neatness and accuracy important. 5. 2. 4. Details on the chart must be obtained from direct observation. It gives a complete picture of what is being done and helps to understand the facts and its relationship to one another. 3. drawing#) Job or process being carried out Location and time (date) of the study Observer¶s name Chart reference number 34 .Why charts? 1.
are considered ³nonproductive. All other activities. Grouping of activities: Five sets of activities can be grouped in two categories Those in which something actually happens to the work-piece (it is moved. however necessary. worked upon or examined) Those in which it is not being touched (in storage or in delay) Objective is to maximize proportion of ³do´ activities.´ 35 .Examine critically Means by which each activity is subjected to a systematic and progressive series of questions.
COMBINING. With a view to ELIMINATING.Primary questions The PURPOSE for which The PLACE at which The SEQUENCE in which The PERSON by whom The MEANS by which «««««««««. 36 .««««the activities are undertaken. or SIMPLIFYING those activities. REARRANGING.
Primary questions PURPOSE PLACE SEQUENCE PERSON MEANS What? Why? Where? When? Who? How? SIMPLIFY the operation 37 ELIMINATE unnecessary part of the job COMBINE wherever possible or REARRANGE the sequence for better result .
The secondary questions PURPOSE PLACE SEQUENCE PERSON MEANS What else might be done? What should be done? Where else might be done? Where should be done? When else might be done? When should be done? Who else might be done? Who should be done? How else might be done? How should be done? 38 .
Facility layout .
Flow diagram ± 3D diagram and/or model. Ensure that diagrams/models are to the scale. CAD models more common now. 2D cardboard models and 3D wood/plastic models. Work study methods: Flow diagram and process flow chart. More recently. because of cost minimization aspects. 40 .Facility layout: Method study considerations Important considerations: Easiest flow of material. Operations personnel solves the layout problem. at the lowest cost and with minimum handling. Essentially a work study problem. Err on the safe side.
) Analyze the current practice using a flow chart. Map all the material movements on the flow diagram/model. thread method.Facility layout: Method study considerations Start with the flow diagram/model. Measure distances of travel (computer output. Go through the usual rounds of primary and secondary questions. Develop the improved method. drawing lines on the diagram etc. 41 .
Material handling .
Material handling Typically material handing may take up to 85% of the total process time. Only important method study principle: Motion Economy! Material handling adds to the cost of manufacture but adds nothing to the value of the product. Most important question: WHY is this handling done? 43 . Therefore. ideally there should be no material handling. Typical material handling problem solved in the same way as all method study problem ± start with asking questions.
Specially critical when one is buying material handling equipment for the workplace. 44 . Change in workplace layout affects not only the quantity but also the type of material handling equipment necessary. AIM: Minimization of movement in any plane ± horizontal or vertical.Material handling: Process Traditional way of solving any method study problems Use of outline and process flow charts and flow diagrams to ensure a correct workplace layout.
Never keep material on floor. Always handle in bulk over distances. platforms or container available at the workplace.Material handling: Important aspects Always try to keep material at the height at which they are to be worked upon. Always have sufficient boxes. Keep gangways clear. Don¶t reduce the supplementary human labor if it means increase in the load for direct operators. 45 . Always keep distances over which material is handled as short as possible. Let gravity work for you.
Movement of workers .
47 . In stores and shops when variety of materials are being removed from or put away into racks or bins. In restaurants and canteens kitchens during preparation of meal. Bulk material is fed to or removed from a continuous process. This happens when. Laborers are delivering material to or removing work from a series of machines. An operator is looking after two or more machines.Effects of shop layout on worker movement There are many activities in which workers move at irregular intervals between a number of points in the working area. with or without material.
material or equipment during a specified sequence of events. 48 . whereas regular flow diagram can be drawn only approximately to scale. it will most often be used to supplement a flow process chart. Like flow diagram. Start using the string diagram by recording all the relevant facts from direct observation. Necessary that the string diagram be drawn correctly to scale.String diagram A scale plan or model on which a thread is used to trace and measure the path of workers. in which a thread is used to measure distance. A special form of flow diagram.
Flow process chart will be examined critically in order to make sure that all unnecessary activities are eliminated before a new method is proposed and tested using string diagram. string diagram and flow chart can give clearest possible picture of what is actually being done. 49 . String diagram can be used to plot movements of material to know how far the materials travel. Most commonly. the string diagram is used for plotting the movements of workers.String diagram Thus.
together with doorways. as stated earlier. should be drawn to scale. stores etc. the heads being allowed to stand well clear of the surface. benches. with higher accuracy. Machines. partitions. Completed plan should be attached to a softwood board and pins driven into it firmly at every stopping point. A measured length of thread is then taken and tied around the pin at the starting point of the movements. 50 . Pins should also be driven in at all the turning points on the route.String diagram: Process A scale plan of working area similar to that required for a flow diagram must be made. pillars.
Of two or more workers are studied over the same working area.String diagram: Process It is then led around the pins at the other points of call in the order noted on the study sheet until all the movements have been dealt with. the distance traveled by the worker can be calculated. 51 . those which are most frequently traversed being covered with the greatest number of strings. By measuring the length of the thread. The result is to give a picture of the paths of movement of the operators. different colored threads may be used to distinguish them.
Difference in length of threads represent the reduction in distance traveled as a result of improved layout.String diagram: Analysis Examination of diagram and development of new layout done in a similar fashion as with a flow diagram. 52 . keeping the same sequence. Pins and templates are moved around until an arrangement is found by which the same operation can be performed with a minimum movement between them. The length of the thread for the new layout is measured and compared with the length of thread for original layout. This can be checked by leading the thread around the pins in their new positions.
the travel chart is quicker and more manageable recording technique. distance traveled etc. It is represented as a square matrix: columns indicating origin of movement and rows the destination. Data could be travel time taken. materials or equipment between any number of places over any given period of time. When the movement patterns are complex. It is a tabular record for presenting quantitative data about movements of workers. the diagram looks like ugly mess of criss-crossing lines.Travel chart String diagrams take a rather long time to construct. Or vice versa. And when a great many movements along complex paths are involved. 53 .
Travel chart The person conducting the study doesn¶t have to trace the actual path from origin to destination. 54 . Just the start and end of the travel is recorded as corresponding columns and row.
g. Essential to attach a sketch showing the path of movement of the worker while carrying out the operation charted. Service and maintenance work.g. Frequently used in the study of jobs which are not highly repetitive and standardized. ³hole drilled´). Written in active voice (e. worker ³drills hole´) as against passive voice of other flow charts (e. Since the chart follows one individual or a group performing the same activities in sequence. laboratory procedure and supervisory and executive work can be recorded on this type of chart. the standard forms are used.Man type process flow chart A flow process chart which records what the worker does. 55 .
also on maintenance work when scheduling expensive plant.Multiple activity chart A chart on which the activities of more than one subject (worker. or bars to represent the activities of different operators or machines against a common time scale the chart shows the periods of idleness on the part of any subjects. Extremely useful in organizing teams of operatives on massproduction work. during the process. equipment) are each recorded on a common time scale to show their interrelationship. 56 . machine. This makes it possible to rearrange these activities so that such ineffective time is reduced. By using separate vertical columns.
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