Lean Production

Week 11:
Numerical analysis for
productivity
improvement

Tran Van Ly
Industrial Engineering & Management
International University
* Email: tvly@hcmiu.edu.vn 1
Room: A2-504
 Recall previous week
▪ Prevention
▪ Improvement
▪ FMEA (Failure mode and effects analysis)
 Recall previous week
Today’s lesson

Shortening
Production
Lead time
 Learning Objectives
🖝Productivity
🖝Improvement
🖝Analysis

Safety, quality & productivity

Sustainable Productivity Growth

Positive contribution to both labour input and
productivity growth
UK, French, US, Japan

4
 Sustainability
⬥ Ability to meet present needs without
compromising those of future generations
⬥ Green product design (Product
Stewardship - For car: Fuel cell
(Battery!!!!)
■ Use fewer materials
■ Use recycled materials or recovered components
■ Don’t assume natural materials are always better
■ Don’t forget energy consumption
■ Extend useful life of product
■ Copyright
Involve entire supply chainSource:
2009 John
Adapted from the Business
Social Responsibility Web site,
Wiley & Sons, Inc.
www.bsr.org, accessed April 1, 2007.
What is productivity?
 What is productivity?
• Productivity = output per worker per hour
Is productivity decreased if the output (salable quantity)
decrease?
When demand decreases 🡺🡺 decrease in number of
workers + expansion of one worker handling
processes 🡺 increase productivity though output
decrease
 Example
4000 hoses are to be assembled per day
during daily operating hours (8 hours).
The assembly line has 5 operators
Output per worker in a given month (20
working days
Productivity = 4000/5*(20) =
Our productivity
 Macro impact

https://www.tutor2u.net/economics/reference/supply-side-eco
nomics-productivity
 Analysis method for
workplace improvements
 Worker capacity
• Worker capacity: refers to number of processes a
worker can handle during the time necessary for
producing one unit, calculated on the daily salable
quantity

• Takt time: time needed to produce one unit

considering daily salable quantity
🡺letting worker handle as many processes as possible
during takt time increases productivity

• Cycle time: total time necessary for performing

manual operations for processes described by the
standard operation routine sheet
 Worker capacity
• Rational load time of worker vs. operating regular
hours
• Rational quota of worker (w/o and with setup) or
rational man day
• Actual operating hours vs. rational load time of
worker
 Facility capacity

• Facility capacity: refers to number of products an

individual facility can process during regular operating
hours

• Bottleneck process determines the process’s

maximum capacity

• Maximum introducible quota of workers

• Rational load time of facility

 Workable rate

• Operating rate of a machine refers to the proportion

of the present performance to the full production
ability of the machine for a certain time (can be more
or less than 100%)

• Workable rate (up time of machines) shows to what

extent the machine is ready to fully operate every
moment (ideal 100%)
 Performance analysis of
facility and worker
🡪 To identify areas for improvement on a
multi-process handling line and facility

• Drawing a performance analysis figure

of facility & worker
• Utilizing the performance analysis of
facility and worker
Performance analysis of
facility and worker
What should you do in
order to balance workload,
capacity etc
 Example
A bottleneck process’ regular operating
time is 460 minutes. Completion time per
unit is 63 seconds. Assume that one
cutting tool can be used for 300 units and
replace this tool in 1200 seconds Setup
=1200/300=4 s. Cycle time is ??? =
63+4=67 secs< TAKT is 96 seconds
1. Facility’s maximum capacity of the line
= ???? Or Upper limit quota of 1 worker
2.Meet demand?
3.Improvement?
4.What else?
 Performance analysis of
facility and worker
1. Bottleneck facility & worker
Rational load time of worker or a facility added to setup
time and non repetitive operation hours > regular
operating hour?
2. Worker capacity
Actual quota of a worker is heavier than the rational
quota of worker?
3. Facility capacity
Rational load time of facility + setup time > regular
operating hour?
 Performance analysis of
facility and worker
4. Workable rates of facility and worker
Improve workable rate --> identify bottleneck --> reduce
actual operating hours of worker or facility to its
rational --> eliminate causes of unworkable time:

- Excessive setup time

- Machine breakdown
- Defects
- Variances in machine and overall cycle
- Parts shortages
 Performance analysis of
facility and worker

5. Balance of facility load

Compare rational load time of different facilities

6. Balance of worker’s allocated operations

Compare rational load time of different workers

7. Priority of improvement activities

Which worker or facility should be improved first?
How to improve productivity?
 Total efficiency of facilities

• workable rate × speed operating rate ×

good product rate ~ OEE
– Formula
– Roles of IE:
• Eliminate shortages (Labor, Mat. Machine
availability.. , allowing resources more “up” time
 Process Cycle Efficiency

• Process Cycle Efficiency (PCE)

 

The Complexity Equation*

• V: total value added time (~AP)
• X: Percent of products or services with quality
  defects
• P: Processing time per unit
• D: To total demand of products or services
• N: Number of different tasks performed any activity
• A: Number of activities or steps in the process
• S: Longest setup time in the process

*Simplified version: see Conquering Complexity in your Business (MaGraw-Hill, 2004)

 Productivity Improvement Indices

Labor productivity (time or VND)

The productivity of labor can be increased by increasing

efficiency of labor and reducing labor time
 Productivity Improvement Indices

Material productivity  

Material productivity can be increased by using skilled

workers, adequate machine tools, good design of product etc.
 
Machine Productivity

Machine productivity depends upon availability of raw

material, power, skill of workers, machine layout etc.
 Productivity Improvement Indices

Capital productivity:

Capital productivity depends on how effectively assets are utilized

Decision is necessary to take about replacement of fixed assets

DMAIC Roadmap
DMAIC Roadmap
Improve Roadmap
 Summary
Lesson learned:

Always room for improvement

Productivity is one of key performance

-New era of IR4.0
-Safety & Quality

Investment is very important (invest in yourself)

 Homework
Given the production system of a semiconductor company.
The processing time and setup time are provided in the
following table (they carry-out daily setup).
Order Process name Process Manual Auto Setup Total Production
Code id Operation feed Time time Capacity
Time time (min.) per
(sec.) (sec.) unit
1 Placing 1 20 50 5
2 Painting 2 35 80 4
3 Heating 3 25 120 30
4 Cooling/washing 4 8 90 10
5 Temperature Test 5 20 60 12
6 Functional Test 6 30 45 10
7 Laser marking 7 25 30 10
8 Packaging 8 10 20 5
 Homework (cont’d)
Based on customer demand, the required output of this
system is 500 units per day. Moreover, the company operates
8 hours a day, there are two workers in this production
system, and the walking time between two consecutive
processes is 6 seconds.
a) Fill in the table above
b) Establish the standard operation chart for the company
production system. Could the company satisfy its customer
demand? Why?