Navneet DwivediPGDM-Operations and Supply Chain

Direct Efficiency and Productivity

To define few Key Production Performance Indicators (Production KPIs)

◦ OEE (Overall Equipment Effectiveness)

◦ Direct Efficiency

◦ Productivity

Agenda

Direct Efficiency

Direct Efficiency & Productivity

Productivity

Efficiency of workers involved in production activity onlyEfficiency and effectiveness of all the workers enrolled in the company

Efficiency ?? Effectiveness??Ratio of input and outputAbility to do thing correctly

Why Direct Efficiency & Productivity ?

Direct Efficiency= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠𝑊𝑜𝑟𝑘𝑒𝑑𝐻𝑜𝑢𝑟𝑠

Productivity= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠𝑃𝑎𝑖𝑑 𝐻𝑜𝑢𝑟𝑠

Theoretical Produced Hours ??Paid Hours ??

Worked Hours ??

Direct Presence Hours

Delegation Hours

Standard Hours

Lets see an example

Punching (2 min)

Trimming (1 min)

Drawing (3 min)

Buffing (2 min)

Packaging (2 min)

Cutting (1 min)

Deburring (1 min)

Drilling (3 min)

Bending (5min)

Washing (2 min)

(a)

(b)

Process

Process Flow Total Time

10 min

12 min

Thus we have Total Time Cycle for Process (a) TTCa =10 minutes Total Time Cycle for Process (a) TTCb =12 minutes

Standard Hour (Item (a) STHa= (10/60) =0.1667 hrs/unitStandard Hour (Item (a) STHb= (12/60) =0.2 hrs/unit

Daily Production ReportManpower Details Production Quantity

Total Enrolled (TE) 11   Item (b) Item (b)Total Present (TP) 10 Total Produced 183 100Setup Man 1 Good Items 180 100Short Leave (hrs) (SL) 4 Scrap 3 0Overtime (hrs) (OT) 1 Total Time Cycle (min) 10 12

Delegated to Other Dept.Department Nos Duration(hrs) Manhours

Stores 1 8 8Technical      Quality 1 4 4

Washing      Rework      

Admin Work 2 4 8Other Misc      

Shift Time (ST) 8.5Break Time (BT) 0.5

Calculation Summary Report

   

Shift Time 8.5Break Time 0.5

Net Shift Time 8Production Hour 50

Direct Presence hours 77Delegated Hours 20

Worked Hours 57Paid Hours 90.5Direct Eff. 87.7%

Productivity 55.2%

Production Hour= (STHa*Qtya) + (STHb*Qtyb= ((10/60)*180)+ ((12/60)*100)= 50 hrs

.Net Shift Time(NST)=Shift Time-Break Time

=8.5 -0.5= 8 hrsDirect Presence Hours= (NST*TP)+OT-SL

= (8*10)+1-4 = 77 hrsDelegated Hours = Sum(all delegation man-hours)

= 20 hrsWorked Hours = D.Presence Hrs- Delegated Hrs

= 77-20 = 57 hrs

Paid Hours=(ST*TE)+OT-SL =(11*8.5)+1-4 = 90.5 hrs Direct Efficiency= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠

𝑊𝑜𝑟𝑘𝑒𝑑𝐻𝑜𝑢𝑟𝑠Productivity= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠𝑃𝑎𝑖𝑑 𝐻𝑜𝑢𝑟𝑠

87.7 %55.2 %

Thankyou

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