productivity & quality management 2

8/9/2019 Productivity & Quality Management 2

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S Y BMS

4th Semester


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Productivity is the measure of the quantity ofoutput per unit of input.

Productivity =Amount of output

Amount of input

Workers productivity =Workers output

Number of man hours


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What is output?

2004 2005

No. of tyres producedLife of a tyre in km.

Price of a tyre in Rs.

16,00020,000

2,000

20,00015,000

1,600

Number of tyres productivity has shown a 25% increaseTyre-km output has gone down by 6.66%

On monetary terms its the same at 32 million


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Input in productivity i.e. the denominator can beviewed differently in different situations.

Productivity =Tonnes of metal produced

Units of power consumed

Productivity =Value of metal produced

Cost per units of power


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Input measurements can give different

pictures of productivity.

E.g labour input can be stated in numbers of

employees, or, number of man hours, or, cost

to company (wages).


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There are generally more than one factor of

inputs.

Land cost Salaries / wages

Overheads

Material cost When we measure productivity considering

only any one of these factors its called partialproductivity


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Total factor productivity is calculated through

a complex and systematic frame work

considering all the factors of production. Total Productivity = Total Output / Total Input


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Productivity

BEP

Productivity =Amount of output

Amount of input

Contribution = Price per unit Variable Cost

PV Ratio =Contribution

Sales

X 100

Profit = Contribution - Fixed Cost


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BEP

BEP (units) =ntri uti n

Fixed st

BEP (Rupees) =PV Rati

Fixed st


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Established in 1958 by the Government of

India.

NPC aims to promote the cause ofproductivity in industry, agriculture, service,

infrastructure and sectors of the economy.

It aims to help in achieving sustained all

development in India leading toenhancement of quality of life of people in

general


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NPC aims providing world class services

needed by Indian industry to become

internationally competitive in a globaleconomy.

NPC aims at propagating productivity as an

evolving concept.

NPC is also a change agent & assists the

Central and State governments.


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Agricultural Productivity Enviornmental Management Energy Management Human Resource Development Information Technology International Services In-House Technical Education & Distance

Learning Plant Engineering Productivity Research System/Industrial Engineering Small Industry & Informal Sector


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Improving productivity is at the top of nearly

every manufacturer's list but making it

happen can be a challenge.

There are 2 methods discussed in texts

Conventional methods Modern methods


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Conventional

Increasing output/yield from labour

Automation (low & high cost) Modern

Employee satisfaction

Process and system analysis & measurement

Employee participation

Leadership through mentoring

Innovation and technology


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SQC, ISO & 6 sigma


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Quality system the organisational structure,

responsibilities, procedures, processes and

resources for implementing qualitymanagement.

There are various systems available to acompany to adopt to reap the benefits of

quality. ISO, SQC, 6 Sigma, Awards,Excellence models, QFD studies etc.


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SQC is an effective method of monitoring a

process through the use of control charts.

Developed by Dr. Walter A. Shewhart, while hewas working for Bell Labs in 1920s

Variations in the process that affect the qualityof the end product can be detected and

corrected, thus reducing waste & preventing the

problem before it reaches the customer.


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Control Chart is a chart that plots the

variance of the process to indicate if the

variance is within limits. This is an effective technique to improve

productivity and prevent defects, but itrequires effective and accurate data

collection and measurement methods.

Repeatability and Reproducibility tests

should be conducted


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1979: ISO- HQ at Geneva appoints TC-176 toharmonise Quality system standards

1987:I

SO 9000 series of standards published &adopted in more than 70 countries

1994: Republished standards incorporating phase 1revision

2000: Republished standards incorporating phase 2revision

2008: Clarity to the 2000 standard.


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Management

Leadership

Peopleinvolvement

Systems approach

Continualimprovement

Processapproach

Factualapproach

Customer focusSupplier

relationship

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Plan Establish the objectives andProcesses necessary to deliver results inAccordance with customer requirementsAnd organisation policies

Act Take action to continuallyImprove process performance

Check

Monitor and measureProcesses and product against policies,objectives and requirements for theProduct and report the results

Do Implement theprocesses


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Quality ManualQuality Manual

Work Instructions / specsWork Instructions / specs

Level 1

Level 2

Level 3

Level 4

SOP/ Process ManualSOP/ Process Manual

RecordsRecords


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HelpHelpDeskDesk

MeasurementMeasurement

Analysis &Analysis &

improvementimprovement

ResourcesResources

ManagementManagement

ManagementManagement

ResponsibilityResponsibilityQuality SystemQuality System

RequirementRequirement

ProductProduct

RealisationRealisationprocessprocess

ExcellenceExcellence

ModelModel


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Bob Galvin (chairman of Motorola) in 1986

along with his engineers decided to measure

defects per million instead of the traditionalper thousand standard.

It is a statistically-based method to reduce

variation in electronic manufacturingprocesses in Motorola Inc in the USA.


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Today Six Sigma is used as an all-

encompassing business performance

methodology, all over the world, inorganizations as diverse as local government

departments, prisons, hospitals, the armedforces, banks, and multi-nationals

corporations.


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What is Six Sigma?

A data-driven method for achieving near perfect

quality. Six Sigma analysis can focus on anyelement of production or service, and has a strongemphasis on statistical analysis in design,manufacturing and customer-oriented activities.

(UK Department for Trade and Industry)


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Six Sigma is to be understood at 3 levels

As a metric : sigma the scale for levels of

'goodness' or quality.

As a methodology : Understanding customerrequirements and aligning KBP to meet those

needs through DMAIC model.

As a management system: Align to management

strategy


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The Six Sigma Management System drives

clarity around the business strategy and the

metrics that most reflect success with thatstrategy. It provides the framework to

prioritize resources for projects that willimprove the metrics, and it leverages leaders

who will manage the efforts for rapid,sustainable, and improved business results.."


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Align their business strategy to critical

improvement efforts

Mobilize teams to attack high impact projects Accelerate improved business results

Govern efforts to ensure improvements aresustained


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Sigma and its statistical meaning whichrelates to variation.

MotorolaI

n-house quality initiative program. Following its success it extended its use to itsbusiness processes.

1991 the formalised their 1st black belt six

sigma experts. 1991 Allied Signal also used the system 1995 GEs CEO Jack Welch adopted it and

announced huge savings


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Team and Team Leaders (black / green belt)

Use of measurement and improvement tools

Communication Process understanding

Training


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D - Define opportunity

M - Measure performance

A - Analyse opportunity I - Improve performance

C - Control performance, and optionally:

T - Transfer best practice (to spread the

learning to other areas of the organization)


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'Long Term Yield'(basically thepercentage ofsuccessful outputs

or operations)%

Defects Per MillionOpportunities

(DPMO)

'Process Sigma'

99.99966 3.4 6

99.98 233 5

99.4 6,210 4

93.3 66,807 3

69.1 308,538 2

30.9 691,462 1


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Dabbawala is a person in the Indian city of

Mumbai whose job is to carry and deliver

freshly made food from home in lunch boxesto office workers.

Dabbawala originated when a person namedMahadeo Havaji Bachche started the lunch

delivery service with about 100 men.

Now its services includes cooking also.


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According to a survey, there is only one

mistake in every 6,000,000 deliveries.

The BBC has produced a documentary ondabbawalas, and Prince Charles, during his

visit to India, visited them.

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