22102141 method study as a technique of cost reduction

8/3/2019 22102141 Method Study as a Technique of Cost Reduction

1/68

METHOD STUDY

(AS A TECHNIQUE OF COSTREDUCTION)

ZAKIR A PATEL


2/68

CONTENTS

Definition and Objectives of Method Study

Method study procedure


3/68

Man, Machines, Materials, Money, Technology andTime are the main resources required to produce goodsand are to be deployed in the most effective manner

We have to select the best available combination ofthese resources at any point of time.

Method Study helps in analyzing the existingmethods and develop a more efficient method forfuture.

Method Study


4/68

Method Study is the systematic recording and criticalexamination of existing and proposed ways of doing work,as a means of developing and applying easier and more

effective methods and reducing costs.

Definition And Objective of Method Study


5/68

THE OBJECTIVES OF METHOD STUDY

Improvement of processes and procedures Improvement in the design of plant and equipment

Improvement of plant layout.

Improvement in the use of men, materials and machines.

Efficient materials handling

Improvement in the flow of production and process. Economy in human effort and the reduction of unnecessary

fatigue.

Method Standardization

Improvement in safety standards.

Development of a better physical working environment


6/68

METHOD STUDY PROCEDURE

The basic approach to method study consists of the following

eight steps:

1. SELECT :- the work to be studied and define itsboundaries.

2. RECORD :the relevant facts about the job by directobservation and collect such additionaldata as may be needed from appropriatesources.

3.EXAMINE the way the job is being performed andchallenge its purpose, place, sequenceand method of performance.

4. DEVELOP the most practical, economic andeffective method.


7/68

5.EVALUATE different alternatives to developing

a new improved method, and

compare the cost-effectiveness ofthe selected new method with the

current method of performance.

6.DEFINE the new method in a clear manner and present

it to those concerned, management, supervisors andworkers.

7.INSTALLthe new method as standard practice and trainthe persons involved in applying it.

8.MAINTAIN the new method & introduce controlprocedures to prevent a drawback to the previousmethod of work.


8/68

These are the seven essential stages in theapplication of method study ; none can beexcluded. Strict adherence to the sequence, aswell as to their content, is essential for the

success of an investigation. They are showndiagrammatically on the chart.


9/68

There are three factors that should be kept in mind when selecting ajob.

1. Economic or cost-effective considerations.

2. Technical considerations.

3. Human considerations.

1. Economic considerations:It is obviously a waste of time to start or continue a long

investigation if the economic importance of a job is small.

Questions that should always be asked

Will it pay to begin a method study of this job? Or

Will it pay to continue this study?

STEP 1: SELECTINGTHEWORKTOBESTUDIED


10/68

Obvious choices for study are:

A. Key profit-generating or costly operations or ones with the largestScrap/waste rates.

B. Bottlenecks which are holding up other production operations, orlengthy operations that consume a great deal of time.

C. Operations involving repetitive work using a great deal of laborand ones that are likely to run for a long time.

D. Movements of material over long distances between workstations,

those involving the use of a relatively large proportion of labor orwhich require repeated handling of material.

One of the easiest techniques that can be used to identify keyoperations as listed in part (A) is the Pareto analysis (sometimesalso referred to as the ABC analysis of value analysis).

The same observation can be extended by saying that among all theoperations in a given plant a small number account for the largestshare of cost or of profit, or the largest percentage of waste.


11/68

To illustrate the point we will consider the following example.

Let us assume that a certain enterprise produces 20 differentproducts.

Each of these products generates a certain profit.By listing the annual production and profit contribution oneobtains the results shown in table 6.

The next step consists of rearranging these items in descendingorder of importance according to profit. The result would thenappear like the one shown in table 7.

From table 7 it can be seen that three products only, listed asAitems, account for 60 per cent of the profit.

These are the most profitable and any improvement in methodsof producing these particular products would reflect highly onprofits. They would be a priority for study.

Products listed under B, which are seven in number,contribute 25 per cent of the profit. They could then assume a

second importance,while products C would command the last priority since theircontribution to profit is minimal.

The same type of analysis can be conducted to determine themost costly products or processes or the products or processesthat yield the highest waste.

Those would then become a priority for study by the work study

specialist.


12/68


13/68


14/68

2. Technical or technological considerations:

One of the important considerations is the desire by management to

acquire more advanced technology, i.e. in equipment or in processes.

Therefore, management may want to computerize its office paperworkor its inventory system, or to introduce automation in the productionoperations.

Before such steps are taken, a method study can point out the most

important needs of the enterprise in this respect. The introduction of new technology should therefore constitute an

important factor in the choice of methods of work to be investigated.

3. Human considerations:

Certain operations are often a cause of dissatisfaction by workers.

They may bring on fatigue or monotony or may be unsafe to operate.

The level of satisfaction should point to a need for method study. In asimilar fashion, a choice of a particular job for study may lead to anxietyor ill feeling. The suggestion given here is to leave it alone.


15/68

STEP 2: RECORDING THE FACTS

The next step in the basic procedure, after selecting the work to be studied,is to record all the facts relating to the existing method

The success of the whole procedure depends on the accuracy with which thefacts are recorded, because they will provide the basis of both the criticalexamination and the development of the improved method

Recording techniques known as CHARTS and DIAGRAMS Charts and diagrams broadly grouped as:

Charts Indicating Process Sequence

Charts Using Time Scale

Diagrams Indicating Movement


16/68

PROCESS SEQUENCES includes the following CHARTS

OperationProcess Chart

Flow Process ChartMan , Material andEquipment Type Two Handed

Process Chart


17/68

Process Chart Symbols

Indicates the main steps in a process, method or procedure.

Usually the part, material or product concerned is modified or

changed during the operation.

Inspection

Indicates an inspection for quality and / or check for quantity

Operation

Transport

Indicates the movement of workers, materials or equipment from place

to place


18/68

Temporary Storage or Delay

Indicates a delay in the sequence of events : for example, work waiting

between consecutive operations, or any object laid aside temporarily without

record until required.

Permanent Storage

Indicates a controlled storage in which material is received into or issued

from a store under some form of authorization; or an item is retained for

reference purposes.

Process Chart Symbols


19/68

The Outline Process Chart

An outline process chart is a process chart giving an overall picture byrecording in sequence only the main operations and inspections

It does not portray the details delays , movements, and storage

It does not go into the details of the details of the place of activity, theperson who performs it, or the physical means of achievement

In making an outline process chart we start with a vertical line downthe right hand side of the page to show the operations and inspectionsundergone.


20/68

The Outline Process Chart- Example

For the purpose of illustration , the case of the repair of a bicycle is

taken.

In this example it is assumed that the bicycle had been involved in aminor accident and required restricted repairs to the front wheel, theleft pedal and the steering handle.

The Outline Process Chart would be


21/68


22/68

FLOW PROCESS CHART (FPC)

It is a process chart setting out the sequence of the flow of a product orprocedure by recording all events under review using appropriateprocess chart symbols.

BENEFITS: In identifying ways of improving the process by eliminatingunnecessary idle time, minimizing the distances things must be movedor rearranging tasks for greater efficiency


23/68

Three types of flow process charts

MAN TYPE:

Flow chart which shows the actions of a person

MATERIAL TYPE:

Flow chart which shows what happens to a product or item

EQUIPMENT TYPE:

Flow chart which shows how a tool or other piece of equipment isused


24/68

Flow Process Charts- Material Type

An FPC (Matrl) sets out the sequence of flow of a product or a document ,recording all the events that affect the material or document beingprocessed.

Illustration : The process of charging of batteries by Umesh Motors(P)

Ltd. Is as follows. Customers deposit discharged automobile batteries at the ReceptionBay of the workshop, and obtain a receipt. After three days, they collect their respective batteries from the DeliveryBay of the workshop, on presentation of the receipt and payment ofservice charges.

The reception clerk marks each battery with a customer-identificationnumber.He stacks the batteries on a steel shelf.


25/68

The chargeable batteries are collected twice a day from the Reception Bay bymazdoor Dharam. He transports the batteries on a stillage truck , and delivers them to thecharging shop, which is 50 meters away from the Reception Bay.

At the Charging Shop , the battery is tested, cell by cell , for voltage andspecific gravity. The cells are toppedup to the correct level. The battery is then moved to the charging bench, and placed on charge by

connecting the terminals to the bus bars. While on charge , it is tested every fourhours for specific gravity.On completion of charging, which is determined by the specific gravity of theelectrolyte , the connections to the bus bars are removed.The battery is tested for voltage of each individual cell.It is then placed on a stillage(small wooden platform with low legs)

Mazdoor Dharam collects a stillage of charged batteries and transports them, by astillage truck, to the delivery bay , which is 35 meters away from the charging shop. Here the Delivery Clerk takes over the batteries and places them on a steel rack.


26/68


27/68

Flow Process Charts- Man Type

An FPC(Man), sets out the sequence of activities of an individual performing a

task under study .

Only four symbols are employed- operation , inspection, delay, transport


28/68


29/68

TWO HANDED PROCESS CHARTS

Two handed process charts is a chart in which the activities of a workers hands

individually(or limbs) are recorded in the relationship to one another

SYMBOLS AND THEIR DESCRIPTIONS FOR TWO HANDED CHARTS

Operation

Is used for activities for grasp, position, use, release etc. of atool, component or material

Transport

To represent the movement of hand to or from thework, or a tool, or material


30/68

Temporary Storage or Delay

Denotes time during which the hand being charted is idle(although the others may be in use)

HOLD

In two handed process chart , hold is used to represent the activity of

holding work , tool or material i.e when the hand being charted is

holding something


31/68


32/68


33/68

MULTIPLE ACTIVITY CHART

A chart on which the activities of more than one

subject (worker, machine or equipment) are each

recorded on a common time scale to show their

interrelationship

Useful in organizing teams of operatives on mass

production workand also on maintenance workwhen

expensive plant cannot be allowed to remain idle

longer

Time (Hours) WORKER 1 WORKER 2 WORKER 3 WORKER 4


34/68

Time (Hours) WORKER 1 WORKER 2 WORKER 3 WORKER 4

5

10

15

20

25

30

35

Disassembly of lathe Disassemble lathe. Head

stock, bed, fed and lead

screws, carriage and

tailstock

Disassemble head stock,

Remove main spindle,

speed change

mechanisms, and change

gears.

Idle

Inspection to determine

fault

Wash with thinner to

remover grease and

clean parts

Repair carriage bed and

lay out screw, nuts, etc.

Repair and assembly of

feed gear box

Repair carriage bed,

check and repair feed

screw and apron of the

carriage.

Repair and assemble

feed gear box

Grind lathe beds

Fit saddle to bed

Assemble tailstock

Assemble and mount bed

and headstock on stand

Repair carriage way and

lay out screw, nuts, etc.Assemble tailstock.

Idle

Fit cross slide and top

slide

Assemble cooling system

Repair and assembly of

apron

Install electric motor

Install feed gear box,

apron and feed rod

Installing feed gear box

apron and feed red

Mount electric motors

and fit reservoirs

Running in and finishing Run in and finish Run in and finish

Testing the lathe Test and calibrate

assembly


35/68

MAN-MACHINE CHART

Variant of Multiple Activity Chart

Present a picture of the operations performedsimultaneously by a man and one or more machines

Useful for

1. Better coordination between man andmachine

2. Reduction / elimination of idle times of manand

machine to improve the utilization3. Exploration of alternative man-machine

arrangements suitable to the plant conditions


36/68

TIME

Min.

Man Machine

2 Remove finished casting clean with compressed

air

Idle

4 Gauge depth on surface plate

5

6

Break sharp edge and clean with compressed air

8 Place in box obtain new casting

10 Clean machine with compressed air

12 Locate castig in fixture: start machine and

automatic feed

15 Idle Mill second face

20


37/68

DIAGRAMSINDICATING

MOVEMENTS

String DiagramTravel Charts

Flow Diagrams


38/68

STRING DIAGRAM

String diagram is a useful tool to record the distance

traveled by a worker in the working area. The string

diagram is a scale plan or model on which a thread is

used to trace and measure the distance traversed which

has to be minimum by

WORKERS

MATERIALOR

EQUIPMENT

during a specified sequence of events


39/68

Observe the clusters of points, pins, turning points. Also observe the grid lines which represent a measure of the

distance between the points.

Red is the staring point and blue is the ending point


40/68

CONSTRUCTIONOFA STRINGDIAGRAM

Step-1 Produce a scale map of the work area

Identifying all machines, furniture and other equipments in the diagramthat can be moved. These could be shaped as pieces of card that canbe pinned to the work area map

Step-2

Identify the points in the process where actions take place and alsoidentify the doorways, pillars etc that effect the path movements andmark the positions of these on the map with map pins and action

symbols. Step-3

Tie the end of a pieces of string to the pin where the process startsand then wrap it around each pin in turn, following the movementaround the process


41/68

CONTINUE..

Step-4

Mark the string at the start and finish points, using a pen.

Step-5

Measuring between the pen marks, will give the totaldistance travelled during the process.

Step-6

Rearrange the movable items on the map, aiming toreduce the total distance


42/68

Mobility:- Rearrange items and movements around fixed or

immovable items such as heavy machines.

Function:- Put machines or people together that perform the

same function. This is useful when varying loads may bebetween machines.

Product:- Put machines or people together that make thesame product. This works well when each machine is used for

only one product.

Strategies for deciding layouts include:


43/68

TRAVELCHART

A travel chart is a tabular record for presenting

quantitative data about the movements of workers,

materials or equipment between any number of places

over any given period of time.

The travel chart also identifies movement, when

movements along complex paths are involved.


44/68

WHY TRAVELCHART ?

Although the string diagram is a neat and effective way of recordthe movement of worker or material

o They take long time to construct ;

o Look increasingly like a complex maze with increasing

complexity of movement paths.

When the movement patterns are complex, the travel chart is

quicker and more manageable to record.


45/68

Count of occurrence

Distance between places


46/68

FLOW DIAGRAM

While the flow process chart describes the flow of a product orprocess, it is generally supplemented with a flow diagram.

While the flow process chart records travel distances and time

taken for various operations, the flow diagram is a plan , drawnto scale of the work area, correctly indicating the position ofmachines and working positions.

The example indicates the flow diagram of receiving,inspection, marking and storing materials.


47/68

IMPROVED FD OF INSPECTIONAND MARKING


48/68

Types of Jobs Examples Recording Technique

Complete Sequence of

manufacture

Manufacture of an electric motor from

raw material to dispatch;

Transformation of thread into cloth from

preparation to inspection;

Receipt, packing and dispatch of fruit

Outline process chart

Flow process chart

Flow diagram

Factory layout : movement of

materials

Movements of a diesel engine cylinder

head through all machining operations.

Movements of grain between milling

operations.

Outline process chart

Flow process chart material type

Flow diagram

Travel chart

Suitability of different recording techniques:-


49/68


Factory layout :

movement of

workers

Laborers servicing spinning machine

Cooks preparing meals in a restaurant kitchen

Flow process chart-man type

String diagram

Handling of

materials

Putting materials into and taking them out of

stores

Loading lorries with finished products.

Flow process chartmaterial type

Flow diagram

String diagram

Workplace layout Light assembly work on a bench

Typesetting by hand

Flow process chart-man type.

Two-handed process chart.

Multiple activity chart.

Continue..


50/68


Gang work or

automatic machine

operation

Assembly line

Operator looking after semi-automatic lathe

Multiple activity chart

Flow process chart-equipment

type

Movements of

operatives at work

Female operatives on short cycle repetition work

Operations demanding great manual dexterity

Multiple activity chart

Flow process chart

equipment

type

Continue..

EXAMINE


51/68

EXAMINE

The questioning technique is the means by which the

critical examination is conducted, each activity being

subjected in turn to a systematic and progressive series of

questions.


52/68

PRIMARY QUESTIONS

The PURPOSE for which

The PLACE at which

The SEQUENCE in which

The PERSON by whom

The MEANS by which


53/68

THIS EXAMINATION SEEKS TO

the recorded activitiesIdentify possibility of

ELIMINIATING

COMBINING

REARRANGING

OR

SIMPLIFING


54/68

THE SECONDARY QUESTIONS

Definition

The secondary questions cover the second stage of thequestioning technique, during which the answers to theprimary questions are subjected to further query to

determine whether possible alternatives to place,sequence, persons and/or means are practicable orpreferable as the means of improvement up on theexisting method


55/68

Combining the two primary questions with the twosecondary questions under each of the headings

purpose, place, etc., yields the following list,which sets out the questioning technique in full:

PURPOSE: what is done?

why is it done?

what else might be done?what should be done?


56/68

PLACE: where is it done?

Why is it done there?

Where else might it is done?

Where should it be done?

SEQUENCE: When is it done?

Why is it done?

When might it be done?

When should it be done?

PERSON: who does it?

Why does that person do it?

Who else might do it?

Who should do it?


57/68

MEANS: How is it done?

Why is it done that way?

How else might it be done?

How should it be done ?

These questions, in the above sequence, must be asked

systematically every time a method study is undertaken.

They are the basis of successful method study.

Remember Rudyard Kipling's

I keep six honest serving men, They taught me all Iknew, Their names are What and Why and How andWhere and When and Who

DEFINING THE IMPROVED METHOD


58/68

DEFINING THE IMPROVED METHOD

The report should show:1.

Relative costs in material, labour and overheadsof the two methods, and savings expected.

2.The cost of installing the new method, includingthe cost of new equipment and of re-layingout shops or working areas

3. Executive actions required to implement the newmethod.

It should also give details regarding :

1. The tools and equipment to be used2. A description of the method

3. A diagram of the work place layout, jigs/fixturesetc

I


59/68

INSTALLATIONOFTHENEWMETHOD

The success of method study is realized when actual change is

made on ground.

The first part of installation is to define the new method bypreparing the written standard practice.

This method is perhaps the most difficult step ofmethod studyprocedure as it needs reassuring, retraining and supportingthrough acquisition of new skills.

New method involves gaining approval of following personnel for

the changes suggested:1. Concerned department supervision

2. Works and general management

3. Workers and their representatives


60/68

The install Phase in some cases, will require a parallel running of

old and new systems.

While in other cases it may require the build up of buffer stocks.

It may also require changes in procedures, or minor addition ofequipment and process.

Thus, the successful introduction of new working methods isextremely important because very often there is only one chanceto make change.


61/68

MAINTAINTHE NEWSTANDARD

After the introduction of new working methods, it is necessary to

check and verify that the new method is working and is it bringingthe desired results or not. This is the maintain phase.

Proper control procedures are used to ensure that new method ispracticed to achieve the benefits of method study and also to

achieve higher productivity.

One of the common problems of maintaining the new standard ismethod drift.

At last, installation is to be preceded by retraining the workers tooperate new methods. Close contact with the progress of the jobmust be maintained, till it is performed.


62/68

FINAL EXAMPLE

Here I took an example of car manufacturingprocess.

As first step is to select the work to be studied,here, I select the process of car manufacturing.

Step-1 select, manufacturing process of car


63/68

STEPSINCLUDEINMANUFACTURINGPROCESS

Parts are produced in various plantsStart with the frameInstalling the parts

Engine and Transmission InstalledBuilding the ShellFinal Body ComponentsInspection and WashingPaint

The Inner WorkingsThe Shell and the FrameTest the Car


64/68

RECORDINGOFWORK

Suppose, here I used string diagram to record the work.

Plants

`


65/68

EXAMINE

Here assume that total length of thread is 30cm andtherefore total distance has to covered within theprocess is 30*100= 3000 m. More distance meansmore time and more time mean more cost.

So improvement is required to reduced thedistance.

After considering all activities. It can be seen that allmachineries are movable. So here we rearrange all

machineries and after that will see the synergy.


66/68

INSTALLATION MAINTANCE OF NEW


67/68

INSTALLATION, MAINTANCE OF NEWSYSTEM

Before installation of new plan Length of thread

Distance

Time

Cost

Of the new model should be major and compare with theoriginal one

If profitable then install the new plan and maintain itthrough regular check on it


68/68

22102141 method study as a technique of cost reduction

Documents