Design and Re - design

Receipt and Test of Materials

Consumer Feedback
Distribution

Suppliers of Materials and Equipment

Production

Assembly

Inspection

Tests of Processes , Machines , Methods , Costs

Customers

Production Viewed as a System

I believe this Diagram made the difference in Japan. the greatest way I accomplished anything there was through this diagram W. Edwards Deming

Foundation of Modern Operations Management

A META Group Study

Energy Telecommunication Manufacturing Financial Information Technology Insurance Retail Pharmaceutical 30 crores per hour 20 crores per hour 17.5 crores per hour 15 crores per hour 15 crores per hour 12.5 crores per hour 10 crores per hour 7.5 crores per hour

Evolution of Operations Management Pre Industrial Revolution Era

Agriculture Organising and coordinating groups of people to carry out tasks in the fields Military Operations Regimented organisation of groups of people established to protect a settlement from tyranny or conquer Creation of Professions Essentially artisans who developed and passed on trade secrets within their immediate families Handcrafting products or services for individual customers Guilds Structured group of people involved with the same profession creating their own set of rules

Evolution of Operations Management Industrial Revolution

Harnessing of Steam Energy
The First Steam Engine
James Watt George Stevenson

The First Steam Machine

Division of labour

Ginning Machines by Eli Whitney Economist Adam Smith conceives Division of Labour Eli Whitney invents interchangeability of parts

Interchangeable parts

Evolution of Operations Management Industrial Revolution

Principles of Scientific Management

Fredrick W. Taylor

Time and Motion Studies

Frank and Lillian Gilbreth

Activity Scheduling
Henry Gantt

The Moving Assembly Line

Henry Ford

Evolution of Operations Management

The Focus Work Breakdown Structures One best Way of carrying out Processes Piece Rate System The Outcomes The Meteoric Rise of Financial Accounting Extensive interest in Advertising and Branding The rise of Motivational Theorists Elton Mayo Abraham Maslow Fredrick Herzberg Douglas McGregor

Evolution of Operations Management

The Return of Operations The Quality Revolution in Japan W. Edwards Deming and Joseph M. Juran The Development of the Toyota Production System Eigi Toyoda , Taichi Ohno and Shiego Shingo Modern Trends in Operations Business Process Reengineering Six Sigma Supply Chain Optimisation

Operations in Todays World

The Internet Revolution E Commerce E Businesses B2B OEMs or First Fit Businesses B2C Franchises C2B Consultation C2C eBay,Portals,etc Globalisation of trade Globalisation of Operations ( Development of the Virtual Organisation )

Definition of Operations Management

Operations Management is the system of Designing , Running and Improving all transformational processes Transformational processes include : Governmental Creating and Running Societal Structures Physical Manufacturing Exchange Retail Operations , Banks Locational Logistics and Transportation

Physiological Healthcare and Hospitality

Psychological Entertainment Informational Communications Educational Structured Knowledge Transfer Production is but the physical transformation of materials to finished product carried out as a planned activity Production Planning involves accumulating demand information and formulating production plans and schedules . These include short range ; medium range and long range plans .

The Need for Operations Management in todays World

In the ever changing Business Scenario in todays fast developing world where we are witnessing Incessant Fragmentation of Markets Highly Informed and Vocal Customers Creation of Disruptive Technologies resulting in Specialised Knowledge Volatile Inter Organisational Relationships

Objectives of Operations Management

Strategy Gaining a Competitive Edge Processes and Systems Alignment of Backend activities Quality Scientific Methods to Create and Deliver Products / Services Improvement A Constant effort to challenge the Status Quo / Obvious

Topic 1 Introduction to Operations Management (1) Topic 2 Facility Location (2) Topic 3 Facility ( Plant ) Layout (3) Topic 4 Production Planning and Control (6) Topic 5 Materials Management (8) Topic 6 Materials Handling (4) Topic 7 Work Study (7) Topic 8 Quality Management (10) Topic 9 Systematic Maintenance (5) Topic 10 Modern Techniques in Operations Management (9)

Regional Location Factors

Business climate Proximity to customers Number of customers Availability of sites Land cost Construction / leasing costs Infrastructure (e.g., roads, water, sewers) Financial services Community incentives Community services Governmental Incentive Government regulations Environmental regulations

Regional Location Factors

Labour (availability, education, cost, and unions) Modes and Quality of transportation Transportation costs Local business regulations Government services (e.g., Chamber of Commerce) Raw material availability Commercial travel Climate Quality of life Taxes Proximity of suppliers Education system

Global Location Factors

Government stability Government regulations Political and economic systems Economic stability and growth Exchange rates Culture Climate Export import regulations Duties and tariffs Raw material availability Number and proximity of suppliers

Global Location Factors

Transportation and distribution system Labour cost and education Available technology Commercial travel Technical expertise Cross-border trade regulations Group trade agreements

Types of Facilities
Heavy-manufacturing facilities
Large, require a lot of space, and are expensive

Light-industry facilities
Smaller ( as compared to Large Industries ), cleaner plants and usually less costly

Retail and service facilities

Smallest and least costly

Location Analysis Techniques

Multiattribute Preference Theory ( Location Rating Factor ) for Local Sites
Is used when choices are available Has no scientific basis just an agreed upon weighted technique
Attribute
Labour Force Proximity to Customers Wage Rates Proximity to Suppliers Environment Modes of Transport Community Support

Weight
0.30 0.20 0.15 0.15 0.10 0.05 0.05

Location Analysis Techniques

Guidelines for Scores : Labour Force
Highly Skilled Adequately Skilled Semi Skilled Unskilled 75 100 50 75 25 50 0 25

Location Analysis Techniques

Guidelines for Scores : Proximity to Customers
Within 15 kilometres 75 100

Between 15 to 30 kilometres
Between 30 to 50 kilometres Above 50 kilometres

50 75
25 50 0 25

Location Analysis Techniques

Guidelines for Scores : Wage Rates
Upto 10 % of total cost 75 100

Between 10 15 % of total cost

Between 15 20 % of total cost Above 20 % of total cost

50 75
25 50 0 25

Location Analysis Techniques

Guidelines for Scores : Proximity to Suppliers
Within 15 kilometres 75 100

Between 15 to 30 kilometres
Between 30 to 50 kilometres Above 50 kilometres

50 75
25 50 0 25

Location Analysis Techniques

Guidelines for Scores : Environment
Conducive to Ceaseless Productive Work Conducive to Productive Work over 25 % Conducive to Productive Work for a day Conducive to Productive Work for less than a day 75 100 50 75 25 50 0 25

Location Analysis Techniques

Guidelines for Scores : Modes of Transport
Access to any two modes of transport at any given moment Access to any one mode of transport at any given moment Need to plan a day in advance for any mode of transport 75 100 50 75 25 50

Need to plan more than a day in advance for 0 25 any mode of transport

Location Analysis Techniques

Guidelines for Scores : Community Support
Extremely harmonious relationships with communities in close proximity Have Legal relationships with communities in close proximity Have dispassionate relationships with communities in close proximity 75 100 50 75 25 50

Have hostile relationships with communities 0 25 in close proximity

Example A company wanting to relocate its operations has assessed three sites and have tabulated the following results

Attribute Labour Force Proximity to Customers Wage Rates Proximity to Suppliers Environment Modes of Transport Community Support

Site 1 70 80 60 75 65 85 80

Site 2 60 90 95 80 90 90 65

Site 3 90 75 70 80 95 65 90

Which Site qualifies based on the Multiattribute Preference Theory ?

Using Weights ascribed we get

Attribute Labour Force Proximity to Customers Wage Rates Proximity to Suppliers Environment Modes of Transport Community Support

Weight Site 1 0.30 0.20 0.15 0.15 0.10 0.05 0.05 70 80 60 75 65 85 80

Site 2 60 90 95 80 90 90 65

Site 3 90 75 70 80 95 65 90

Weighted Scores Scores : Site 1 72.00 ; Site 2 79.00 ; Site 3 81.75

Attribute Labour Force Proximity to Customers Wage Rates Proximity to Suppliers Environment Modes of Transport Community Support

Site 1 21.00 16.00 9.00 11.25 6.50 4.25 4.00

Site 2 18.00 18.00 14.25 12.00 9.00 4.50 3.25

Site 3 27.00 15.00 10.50 12.00 9.50 3.25 4.50

Site 3 The preferred location

Typical Attributes that an MNC looks for in a Global Operations Site

Attribute Political Stability Economic Growth Port Facilities Airline Support Weight 0.25 0.20 0.13 0.10 0.08 0.08 0.07 0.05 0.02 0.02

Trade Regulations Duties and Tariffs Container Support

Transportation / Distribution Area Roads Land and Construction Cost

Centre of Gravity Technique

Normally used in computing location of sites for Warehouses / Distribution Centres

Current Location is set as ( 0 , 0 ) on a Cartesian Plane

Average Annual Despatch Loads to different sites are indicated in parenthesis

Distribution Site co-ordinates are computed accordingly

A Pictorial Representation in the form of a Graph is drawn

y2

2 (x2, y2), W2

y1

1 (x1, y1), W1

y3

3 (x3, y3), W3

Current Site of Operations

x1

x2

x3

Co-ordinates of New Location ( x , y ) are computed thus (x1)(W1) + (x2)(W2) + (x3)(W3) W1 + W2 + W3

x=

y=

(y1)(W1) + (y2)(W2) + (y3)(W3) W1 + W2 + W3

Example
y
700

C
600 500 400 300 200 100 0

x y Wt (130)

A 200 200 70

B 100 500 100

C 250 600 130

D 500 300 60

Kilometres

(100) D A (70)

(60)

100

200

300

400

500

600

700

Kilometres

Co-ordinates of New Location ( x , y ) are computed thus

(200)(70) + (100)(100) + (250)(130) + (500)(60)

x=

70 + 100 + 130+ 60

240

(200)(70) + (500)(100) + (600)(130) + (300)(60)

y=

70 + 100 + 130+ 60

444

Location of the Warehouse

y
700

C
600 500 400 300 200 100 0

(130)

B (100)

Kilometres

( 240 , 444 )
D (60)

(70)

100

200

300

400

500

600

700

Kilometres

Load Distance Technique

Variation of the Centre of Gravity Technique

Used when Options available for Sites Use of the Straight Line concept ( Based on Geometric Distance Formula )

LD =
LD = li di = = load-distance value

i=1

ld
i

load expressed as a weight being despatched distance between proposed site and location i (x,y) = coordinates of proposed site (xi , yi) = coordinates of existing facility

di = (xi - x)2 + (yi - y)2

Suppliers
A x 200 y 200 Wt 70 B 100 500 100 C 250 600 130 D 500 300 60

Potential Sites Site X Y 1 360 180 2 420 450 3 250 400

x y Wt

A 200 200 70

B 100 500 100

C 250 600 130

D 500 300 60

Potential Sites Site X Y 1 360 180 2 420 450 3 250 400 dC = = (xC - x1)2 + (yC - y1)2 (250-360)2 + (600-180)2

Computing distances for Site 1 dA = = (xA x1)2 + (yA + y1)2

(200-360)2

(200-180)2

= 161.2 dB = (xB - x1)2 + (yB - y1)2 dD =

= 434.16 (xD - x1)2 + (yD - y1)2

(100-360)2 + (500-180)2

(500-360)2 + (300-180)2

= 412.3 = 120019.2

= 184.31

Load Distance = (70)*(161.2)+(100)*(412.3)+(130)*(434.16)+(60)*(184.31)

x y Wt

A 200 200 70

B 100 500 100

C 250 600 130

D 500 300 60

Potential Sites Site X Y 1 360 180 2 420 450 3 250 400 dC = = (xC x2)2 + (yC y2)2 (250-420)2 + (600-450)2

Computing for Site 2 dA = = (xA x2)2 + (yA + y2)2

(200-420)2

(200-450)2

= 333.02 dB = (xB x2)2 + (yB y2)2 dD =

= 226.71 (xD x2)2 + (yD y2)2

(100-420)2 + (500-450)2

(500-420)2 + (300-450)2

= 323.88 = 97036.8

= 170

Load Distance = (70)*(333.02)+(100)*(323.88)+(130)*(226.71)+(60)*(170)

x y Wt

A 200 200 70

B 100 500 100

C 250 600 130

D 500 300 60

Potential Sites Site X Y 1 360 180 2 420 450 3 250 400 dC = = (xC x3)2 + (yC y3)2 (250-250)2 + (600-400)2

Computing for Site 3 dA = = (xA x3)2 + (yA + y3)2

(200-250)2

(200-400)2

= 206.19 dB = (xB x3)2 + (yB y3)2 dD =

= 200 (xD x3)2 + (yD y3)2

(100-250)2 + (500-400)2

(500-250)2 + (300-400)2

= 180.27 = 74614.8

= 269.25

Load Distance = (70)*(206.19)+(100)*(180.27)+(130)*(200)+(60)*(269.25)

Facility Layouts
Definition of Facility Layout
Planned arrangement of areas within a facility commensurate with the product to be realised or service to be delivered

Objectives of Facility Layout

Optimise material-handling ( transaction ) costs Utilise space efficiently Utilise manpower efficiently Work around bottlenecks Facilitate interaction Reduce cycle time Reduce customer turnaround time Eliminate redundant movement Increase capacity Provide for entries, exits, placement of material ( in all stages of realisation ), finished goods, and people

Facility Layouts
Objectives of Facility Layout ( continued ) Incorporate safety and security measures Promote product and service Quality Facilitate proper maintenance activities Provide for visual control Provide for flexibility to adapt to changing conditions

Different Organisational Layouts

Departmental Layout Material Flow Layout Equipment Layout Transportation and Handling Layout Utilities Layout Communication Channel Layout

Basic Types of Layouts

Fixed-position layouts are used where product cannot be moved Process layouts group similar activities together according to process or function they perform Product layouts arrange activities in line according to sequence of operations for a particular product or service
Modern Approach toward Creating Layouts More inclined towards Mass Customisation Traditional Type of Layout Suitable for Mass Production Used for Large Products and Projects Usually one-of-a-kind products or projects

Fixed-position layouts

Typically manufacture of Construction Projects , Rocket Launchers , Space Shuttles , Aircrafts , Ships , Events Equipment, workers, materials, other resources brought to site Highly skilled labour

Process Layout - Bookstore

Video CDs , DVDs

Cassettes

Audio CDs , DVDs

Cookbooks

Billing and Information

Technical and Management Section

Childrens Books

Entry and display area

Coffee Shop

Process Layout - Manufacture

Lathe Section Milling Section Drilling Section

L L L L L

L L L L L

M
G G

M
G G G G

D
P P

Grinding and Finishing Receiving and Shipping

Painting Department

A
Assembly

Product A

Product B

Product Layout - Manufacture

In
Product A

Out

In
Product B

Out

In
Product C

Out

Comparisons between Product and Process Layouts

Product Layout Sequential arrangement of Activities Intermittent work Adaptable Machinery Workers are extensively crosstrained Occupy smaller areas Highly flexible lines Lesser travel time

Process Layout Functional Grouping of Activities Continuous work General Purpose Machinery Workers are trained in a particular process Occupy larger areas Largely Rigid More travel time

Designing Layouts
Relationship Diagramming

based on location preference between areas used when quantitative data is not available Schematic diagram that uses weighted lines to denote location preference
Use of a grid called Muthers grid

Muthers Grid
Different Sections / Areas in an organisation

Extent of their Interactions / Relationships

Production

O U

A Absolutely necessary E Especially important I Important O Okay U Unimportant X Undesirable

Offices
Stockroom

A
O U O

I E X O U A

A
Shipping and receiving

U
Locker room Toolroom

Original layout

Offices

Locker room

Shipping and receiving

Stockroom

Toolroom

Production

A E I O U X

Relationship diagram of original layout

Offices

Locker room

Shipping and receiving

Stockroom

Toolroom

Production

A E I O U X

Production 2 Absolutely Necessary transactions ; 1 Especially Important transaction ; 1 Important transaction ; 1 Okay transaction
Therefore Production needs to be centrally located with the other departments around it .

Solution 1

Stockroom

A E I O U X

Offices

Shipping and receiving

Toolroom

Production

Locker room

Solution 2

Stockroom

A E I O U X Locker room

Offices

Shipping and receiving

Production

Toolroom

Block Diagramming
Purpose is to minimise nonadjacent loads Used when quantitative data is available Steps : Create load summary chart Calculate composite (two way) movements Develop trial layouts minimising number of nonadjacent loads

Load Summary Chart

To

1
1
From

2
100 100

3
50 200 -

4
50 40 -

5
50 60

60 -

2 3 4

50

Composite Movements
Movement 23 24 13 12 45 35 25 34 14 15 Total Load 200 150 110 100 60 50 50 40 0 0

Arranged in a 2x3 Grid

110

100

200

50

60

40

Blocks Rearranged with Non-adjacent loads cancelled out

100

150

200

50

60

Cellular Layouts
1. Identify outputs with similar flow paths 2. Group processes into cells based on output 3. Arrange cells so transactions are minimised 4. Locate shared processes at point of use

Original Machine Layout

5
2 1 3 10

12
11

Original Process Layout

Outputs

5
2 1 3 10

12
11

Inputs

Determine Flow Logic A : 1 2 4 8 10 B : 5 7 11 12 C:369 D : 1 2 4 8 10 E : 5 6 12 F:148 G : 3 6 9 12 H : 7 11 12

Part Routing Matrix

Outputs

A B C D E F G H

1 X

2 X

4 X

X X X X

X
X

Workstations 5 6 7 8 9 X X X X X X X X X X X X

10 11 12 X X X X X X X

Create Binary Algorithm

The procedure works like this :

Assign a value to each column k , where the value is 2N-k N = total number of workstations ; k = chronological workstation number For each row obtain a sum by adding the 2N-k values Rearrange the rows in the decreasing order of the sums obtained Assign a value to each row k where the value is 2M-k M = total number of products ; k = chronological ( rearranged ) sequence number of the product For each column obtain a sum by adding the values Rearrange the columns in decreasing order of the sums obtained

1 A B C D E F G H
2048

2
1024

4
256

Workstations 5 6 7 8 9 10 11 12
16 128 32 64 8 16 128 64 16 64 32 8 2 1 1 4 1 4 2 1 3348 163 584 3348 193 2320 585 35

512 2048 1024 256

2048 512

256

1 A D F G C E B H
2048 2048 2048

2
1024 1024

4
256 256 256

Workstations 5 6 7 8 9 10 11 12
16 16 16 64 64 128 128 64 32 32 2 2 8 8 1 1 1 1 4 4 3348 3348 2320 585 584 193 163 35

512 512

2
x x

4
x x x

Workstations 5 6 7 8 9 10 11 12
x x x x x x x x x x x x x 128 64 32 16 8 4

A D F G C E B H

x x x

x x

x
x

x
x 224 24 192 3

x
x 23

2
1

224

192

24

224

28

Group and Rearrange within the group in descending order

1 A D F G C E B H
224 x x x

4
x x x

8
x x x

2
x x

Workstations 10 6 9 3 12 5 7 11
x x 128 64 32 x x x x x x x x x x x x x x 6 3 x x 3 x 16 8 4 2 1

224

224

192

192

28

24

24

23

Group and Rearrange within the group in descending order

1 A D F G C E B H
224 x x x

4
x x x

8
x x x

2
x x

Workstations 10 6 9 3 12 5 7 11
x x 128 64 32 x x x x x x x x x x x x x x 6 3 x x 3 x 16 8 4 2 1

224

224

192

192

28

24

24

23

Grouping we get
A : 1 2 4 8 10 D : 1 2 4 8 10 F:148 C:369 G : 3 6 9 12 B : 5 7 11 12 E : 5 6 12 H : 7 11 12

Revised Layout
Outputs

10

12

11 4

Cell 1

Cell 2

Cell 3
7

1 A

3 B C

Inputs

Flow Logic A:568 B:5689 C:2457 D:13 E:56 F:134 G:4568-9 H:247

Workstations 3 4 5 6
X X X X

8
X X

9
X

A B C D E F G H

X X X

X X X X X X

Workstations 4 5 6 7
16
16

8
2
2

9
26
1 27 180 320

A B C D E F G H

8
8 4

128 256 64

32

16

16 256 64 32 32 128 32 16

24 352

8 4

59 164

3
64
64

Workstations 4 5 6 7
32

9
352
320

F D C H G B A E

256
256 128 128

32 32 32

16

4 4

180 164 2 2 2 1 1 59 27 26 24

16 16 16 16

8 8 8 8

1 F D C H G B A E
X X

3
X X

Workstations 4 5 6 7
X

9
128 64

X X

X X X

X X

32 16 X X X X X 8 4 2 1

X X X X

X X X X

1 F D C H G B A E
X X

3
X X

Workstations 4 5 6 7
X

9
128 64

X X

X X X

X X

32 16 X X X X X 8 4 2 1

X X X X

X X X X 15 48

192

48

192

184

47

14

12

1 F D C H G B A E
X X

3
X X

4
X

Workstations 2 7 5 6

9
128 64

X X X

X X

X X

32 16

X X X X

X X X X 15

X X X

X X

8 4 2 1

192

192

184

48

48

47

14

12

Direction of part movement within cell HM VM

Paths of three workers moving within cell

Material movement S = Saw L = Lathe HM = Horizontal milling machine VM = Vertical milling machine G = Grinder

Worker 3

VM

Worker 2

L
Final inspection

Worker 1

Finished part

In

Out

Line Balancing
Cycle Time

The Maximum amount of time a product spends at a workstation

Flow Time The Total Time required to complete the production of an item

T=4 Piece 1 T=8 Piece2

T=9 Piece 1 T = 14 Piece2

T = 13 Piece 1 T = 18 Piece2

1
4 minutes

2
5 minutes

3
4 minutes

Flow Time = 13 minutes Cycle Time = 5 minutes

Desired Cycle Time

Cd = production time available desired units of output (8 hours x 60 minutes / hour) (120 units) 480 Cd = = 4 minutes 120

Cd =

Number of Workstations

ti = ( t1 + t2 + t3 + t4 + . )

Cd

ti= completion time for element i Cd = desired cycle time

Efficiency
E =
ti = ( t1 + t2 + t3 + t4 + . )

n*Ca

ti = completion time for element i n = actual number of workstations Ca = actual cycle time

Line Balancing Process

1. Draw and label a precedence diagram. 2. Calculate the desired cycle time required for the line. 3. Calculate the theoretical minimum number of workstations. 4. Group elements into workstations, recognising cycle time and precedence constraints. 5. Calculate the efficiency of the line. 6. Stop if theoretical minimum number of workstations on an acceptable efficiency level is reached. If not, go back to step 4.

Steps in the Process A B C D Press out sheet of dough Cut into strips Outline different shapes Bake and package

Precedence Chart
Steps in the Process Press out sheet of dough Cut into strips Precedence A

Outline different shapes

Bake and package

A
B,C

Precedence Diagram
B
0.2

0.1 0.4 C

0.3

Desired Cycle Time

Cd = production time available desired units of output (48 hours x 60 minutes / hour) (7200 units) 2880 Cd = = 0.4 minutes 7200

Cd =

Number of Workstations
N =
ti = ( t1 + t2 + t3 + t4 + . )

Cd
( 0.1 + 0.2 + 0.4 + 0.3 )

0.4
~
3

= 2.5

Cycle Time = 0.4 minutes

B
0.2

0.1 0.4 C

0.3

Wk Stn 1

Wk Stn 2

Wk Stn 3

A,B
0.3 minute

C
0.4 minute

D
0.3 minute

Assembly Line Diagram

Efficiency
E =
ti = ( t1 + t2 + t3 + t4 + . )

n*Ca
( 0.1 + 0.2 + 0.3 + 0.4 )

= =

3*0.4 83.33 %

Service Layouts
Usually process layouts respond to customer needs Minimise flow of customers or transactions Retailing tries to maximise customer exposure to products Layouts must be aesthetically pleasing

Types of Layouts for Service Organisations

Freeflow Layout

Types of Layouts for Service Organisations

Grid Layout

Types of Layouts for Service Organisations

Spine Layout

Types of Layouts for Service Organisations

Loopy Layout

Production Planning and Control Introduction

Coordination of materials function with suppliers Efficient utilisation of people and machines Efficient flow of materials within the organisation

The Seepok Model

Production

Inputs
Suppliers

Outputs Customers

Decision Support
PPC system does not make decisions but provides support for decision making Managers make decisions

Software for Decision Support

Software not only to support decision makers but also make some of the decisions
Expert Systems Neural Networks Algorithms Evolutionary Programming Genetic Programming Tabu Search Simulated Annealing

Activities
Materials Planning Purchasing Raw Material Inventory Control Capacity Planning Scheduling Machine and People Work-in-Process (WIP) Inventory Control Coordinate Customer Orders Finished Goods Inventory Control

Ill-effects of a lack of PPC

poor customer service excessive inventories low equipment and people utilisation high rate of part obsolescence large number of expediters

Specifications

Work Study

Inventory Management

Production Planning and Control

Routing

Scheduling

Loading

Despatching

Expediting

Production Plan

Routing
Determine the Processes to be followed Determine the Sequence of the Processes Determine the Flow of Materials / Activities

Loading
Determine the Number of Workstations Determine their operational characteristics ( speeds , capabilities ) Selection of Workstations Creating a Contingency Plan

Scheduling
Determining the exact time at which the Operations will materialise Timing the arrival of material ( finished / semi-finished part at different workstations ) Usually done on a Gantt Chart

Despatching
Creating Work Orders Creating Shop Travelers Issuing Authorisations

Expediting
Creating Routine Reports Creating Check Points Follow up

Production Planning and Control General Framework

Resources Planning Demand Management

Rough-Cut Capacity Planning

Master Production Scheduling

Detailed Capacity Planning

Detailed Material Planning

Material and Capacity Plans

Work Order

Purchase Order

Demand Management
Forecasting Order Processing Order Acceptance Order Confirmation

Resource Planning
Long-Range Capacity Requirements Number of Plants Number of Workstations Number of Employees Shifts Overtime

Production Planning
Plans for Product Families Master Planning Schedule ( MPS ) Anatomy of a Plan
Annual Plan
Quarterly Plan Monthly Plan

Fortnightly Plan

Fixed

Could be subject to minor changes

Rough-Cut Capacity Planning Capacity Requirement Planning for Master Production Scheduling Open Orders Planned Orders Resource Profiles

Detailed Materials Planning Materials Requirements Planning Inputs : Master Production Schedule (MPS) Bill of Materials (BOM) Inventory Status Leadtime (LT)

Bill of Material (BOM)

Shows the constituent components and how many of those are required to build the composite part

Product Structures and Parts

Finished Product

Manufactured Part

Sub Assembly

Purchased Parts

Single Level Bill of Material

2 units of component X are used to make 1 unit of item A Level 0 Level 1 Parent Component
A X

X2

Indented Bill of Material ( BOM ) for A is

Level Part ( nos ) 0 A(1)

1 X(2)

Single Level Bill of Material

2 units of component X and 1 component of Y are used to make 1 unit of item B

Level 0
Level 1 Level 1

Parent
Component Component

B X Y

X2 X1

Indented Bill of Material ( BOM ) for B is

Level Part ( nos ) 0 B(1)

1
1

X(2)
Y(1)

Single Level Bill of Material

Level 0 Level 1 Parent Component
C A

X2

Level 1

Component

X3

2 units of component A and 3 components of B are used to make 1 unit of item C Indented Bill of Material ( BOM ) for C is

Level Part ( nos ) 0 C(1)

1
1

A(2)
B(3)

Multi Level Bill of Material

Level 0

Parent

Level 1

2xA

3xB

Level 2

2xX

2xX

1xY

Summary Bill of Material

Level Part Cumulative

0 1 2 1 2 2

C A X B X Y

1 2 4 3 6 3

Summary BOM for C

X Y 10 3

Create a BOM for a Two layered McDonalds Maharaja Mac

Sesame Seed Top bun

Bottom Bun Sub Assembly Bottom Bun Patty Sauce Lettuce

Middle Bun Sub Assembly Cheese Patty Onions

Middle Bun

Inventory Status
On Hand (OH) Quantity What is physically available in the warehouse On Order or Scheduled Receipt (SR) What has been ordered but not received ( transitory ) Allocated Inventory (AI) What is in the warehouse but reserved for existing orders (i.e., not available to be used for incoming orders)

Leadtime
Time between placing an order and receiving the parts Parts could be Purchased Dependant on Vendor Manufactured or assembled in house Dependant on Process / Manufacturing Personnel

Leadtime Offsetting
1. Front Schedule Approach Schedule as early as possible Advantage: Minimise risk of shortage Disadvantage: Higher Inventory Levels 2. Back Schedule Approach Schedule as late as possible Advantage: Minimise Inventory Disadvantage: Higher Risk of Shortage

Important Terms / Conventions used in MRP

Gross Requirements Derived from the MPS of the Parent Part Scheduled Receipts On Order or Scheduled to be received On Hand Physical Available Inventory Allocated Inventory Inventory scheduled to be used Nett Requirements Actual Quantities Required Planned Order Receipts Offset time when Materials are needed Planned Order Releases Offset Time when materials need to be ordered ( function of lead time )

MRP Matrix
Heading Gross Requirements

Week Number
1 85 2 95 3 4 5 120 100 100

Scheduled Receipts On Hand Allocated Inventory

Nett Requirements Planned Order Receipts Planned Order Releases

175 45 20

MRP Matrix
Heading Gross Requirements

Week Number
1 85 2 95 3 4 5 120 100 100

Scheduled Receipts On Hand Allocated Inventory

Nett Requirements Planned Order Receipts Planned Order Releases

175 45 115 20
0

MRP Matrix
Heading Gross Requirements

Week Number
1 85 2 95 3 4 5 120 100 100

Scheduled Receipts On Hand Allocated Inventory

Nett Requirements Planned Order Receipts Planned Order Releases

175 45 115 20
0 0

20

MRP Matrix
Heading Gross Requirements

Week Number
1 85 2 95 3 4 5 120 100 100

Scheduled Receipts On Hand Allocated Inventory

Nett Requirements Planned Order Receipts Planned Order Releases

175 45 115 20
0 0 100 100 100

20

MRP Matrix
Heading Gross Requirements

Week Number
1 85 2 95 3 4 5 120 100 100

Scheduled Receipts On Hand Allocated Inventory

Nett Requirements Planned Order Receipts Planned Order Releases

175 45 115 20
0 0 100 100 100 100 100 100

20

MRP Matrix
Heading Gross Requirements

Week Number
1 85 2 95 3 4 5 120 100 100

Scheduled Receipts On Hand Allocated Inventory

Nett Requirements Planned Order Receipts Planned Order Releases

175 45 115 20
0 0 100 100 100 100 100 100 100 100 100

20

Detailed Capacity Planning Capacity Requirements Planning

Creates a load profile Identifies under-loads and overloads Inputs

Planned order releases Routing file Open orders file

Routing File

Inputs Flow Time Cycle Time Number of Workstations Capabilities of Work Stations

Scheduling Last stage of planning before production occurs Specifies when labour, equipment, facilities are needed to produce a product or provide a service

Objectives in Scheduling
Meet customer due dates Minimise response time Minimise completion time Minimise time in the system Minimise overtime Minimise work-in-process inventory

Shop Floor Control

Loading
Check availability of material, machines and labour

Sequencing
Release work orders to shop and issue despatch lists for individual machines Maintain progress reports on each job until it is complete

Monitoring

Loading
Process of assigning work to limited resources Perform work on most efficient resources

Assignment Method
1. Perform row reductions subtract minimum value in each row from all other row values 2. Perform column reductions subtract minimum value in each column from all other column values 3. Cross out all zeros in matrix use minimum number of horizontal and vertical lines to cover all the 0s 4. If number of lines equals number of rows in matrix then optimum solution has been found. Make assignments where zeros appear 5. Else modify matrix subtract minimum uncrossed value from all uncrossed values add it to all cells where two lines intersect other values in matrix remain unchanged 6. Repeat steps 3 through 5 until optimum solution is reached

Example
Time taken for completing task 1 Duryodhan Dushyasan Jarasandha Jayadratha 10 6 7 9 2 5 2 6 5 3 6 4 5 4 4 10 6 6 10

Name

Step 1 Row Reduction

Time taken for completing task 1 Duryodhan Dushyasan Jarasandha Jayadratha 5 4 2 5 2 0 0 1 1 3 1 2 0 0 4 5 4 1 6

Name

Step 2 Column Reduction

Time taken for completing task 1 Duryodhan Dushyasan Jarasandha Jayadratha 3 2 0 3 2 0 0 1 1 3 1 2 0 0 4 4 3 0 5

Name

Step 3 Cover all 0s

Name Duryodhan Dushyasan Time taken for completing task

1
3 2

2
0 0

3
1 2

4
4 3

Jarasandha
Jayadratha

0
3

1
1

0
0

0
5

Number of Lines = 3 ; Number of Rows = 4 Modify Matrix

Step 4 Modify the Matrix

Name
Duryodhan Time taken for completing task 1 3 2 0 3 1 4 4

Dushyasan
Jarasandha Jayadratha

2
0 3

0
1 1

2
0 0

3
0 5

Take the lowest value in the uncovered cells ( in this case = 2 ) and reduce the column to which it belongs Add this value to the values of the intersecting cells as shown

Step 5 Select the tasks

Name Duryodhan Dushyasan Time taken for completing task

1
1 0

2
0 0

3
1 2

4
4 3

Jarasandha
Jayadratha

0
1

3
1

2
0

0
5

Example
Time taken for completing task 1 Duryodhan Dushyasan Jarasandha Jayadratha 10 6 7 9 2 5 2 6 5 3 6 4 5 4 4 10 6 6 10

Name

Example
Time taken for completing task 1 Gauravi Vidheya Antara Amala 20 40 30 60 2 90 45 70 45 3 40 50 35 70 4 10 35 25 40

Name

Step 1 Row Reduction

Time taken for completing task 1 Gauravi Vidheya Antara Amala 10 5 5 20 2 80 10 45 5 3 30 15 10 30 4 0 0 0 0

Name

Step 2 Column Reduction

Time taken for completing task 1 Gauravi Vidheya Antara Amala 5 0 0 15 2 75 5 40 0 3 20 5 0 20 4 0 0 0 0

Name

Step 3 Cover all 0s

Time taken for completing task 1 Gauravi Vidheya Antara Amala 5 0 0 15 2 75 5 40 0 3 20 5 0 20 4 0 0 0 0

Name

Number of lines = Number of Rows

Step 4 Assign Jobs

Time taken for completing task 1 Gauravi Vidheya Antara Amala 5 0 0 15 2 75 5 40 0 3 20 5 0 20 4 0 0 0 0

Name

Step 4 Assign Jobs

Time taken for completing task 1 Gauravi Vidheya Antara Amala 20 40 30 60 2 90 45 70 45 3 40 50 35 70 4 10 35 25 40

Name

Sequencing
Prioritise jobs assigned to a resource Standardised Sequencing Rules

Sequencing Rules
FCFS - first-come, first-served LCFS - last come, first served DDATE - earliest due date CUSTPR - highest customer priority SETUP - similar required setups SLACK - smallest slack CR - critical ratio SPT - shortest processing time LPT - longest processing time

Sequencing Jobs Through Two Serial Processes

Johnsons Rule 1. List time required to process each job at each machine. Set up a one-dimensional matrix to represent desired sequence with number of slots equal to number of jobs. 2. Select smallest processing time at either machine. If that time is on machine 1, put the job as near to beginning of sequence as possible. 3. If smallest time occurs on machine 2, put the job as near to the end of the sequence as possible. 4. Remove job from list. 5. Repeat steps 2-4 until all slots in matrix are filled and all jobs are sequenced.

Johnsons Rule
Example

Machines

Jobs
A B C D E F

M1
M2

4
6

8
3

3
7

6
2

7
8

5
4

Sequence

35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 A C F Machine 1 C 1 Machine 2 A E F B E B D D

5
4 3 2

Example
Jobs A B 12 2 C 8 4 D 15 1 E 16 5

Machines

Machine 1 10 Machine 2 3

Machine 3

6
7

4
12

7
8

3
10

Machine 4 14

Example
Machines Jobs A B 12 C 8 D 15 E 16

Machine 1 10

Machine 2
Machine 3

3
5

2
6 7 E

4
4 12 D

1
7 8 B

5
3 10

Machine 4 14 C A

Sequence Machine 1 Machine 2 Machine 3 Machine 4

IN C 0 OUT 8 IN 8 OUT IN 12 12 OUT 16 IN 16 OUT 28

IDLE TIME
M1 M2 8 M3 12 M4 16

A
E D B

8
18 34 49

18
34 49 61

18
34 49 61

21
39 50 63

21
39 50 63

26
42 57 69

28
42 57 69

42
52 65 76

6
13 10 11

5
13 8 6 44

5 4 25

NIL 48

Example
Machines Machine 1 Jobs A 4 B 3 C 1 D 3

Machine 2
Machine 3 Machine 4

3
7 8

7
2 5

2
4 7

4
3 2

Add the time taken on Machines 1 and 2 to create a new Machine Compute similarly for Machines 3 and 4

Example
Machines Machine 1 Jobs A 7 B 10 C 3 D 7

Machine 2 15

11

Sequence Machine 1 Machine 2 Machine 3 Machine 4 IN C 0 OUT 1 IN 1 OUT IN 3 3 OUT 7 IN 7 OUT 14

IDLE TIME M1 M2 1 M3 3 M4 7

A B D

1 5 8

5 8 11

5 8 15

8 15 19

8 15 19

15 17 22

15 23 28

23 28 30

NIL

2 3

1 2
6

1 8

Material Handling
Definition of Material Handling The efficient and effective method of facilitating a controlled flow of product between locations and storing thereafter constitutes the activity of Material Handling
* the term product includes hardware , software , a combination thereof , people and information

Objectives of Material Handling

To eliminate product damage To enhance product flow To optimise operating costs ( high volumes at lower time frames ) To ensure asset protection To ensure safety

Anatomy of Material Handling

The Logical flow of materials in a facility

Receiving

Sorting

Storage

Pick-up

Processing
Packaging

Shipping

Important terms in Material Handling

Distribution The function of transporting finished goods in a safe condition to a separate storage facility or to the customer Storage The act of safekeeping of goods and preserving them in a usable condition until they are required by another facility , workstation or the Customer

Logistics Combines the above activities and includes the flow of related information

Types of Product Movement ( flow )

Horizontal Product Movement This movement takes place at a single level or elevation between workstations between functional areas between adjacent structures within a warehouse either at floor level , above the floor level , or overhead at the same facility location

Types of Product Movement ( flow )

Vertical Product Movement This movement takes place at multiple levels or elevations between workstations between functional areas between adjacent structures within a warehouse either at floor level , above the floor level , or overhead at the same facility location

Types of Transportation Concepts

The different types of Transportation Concepts are based on the following The Power Source Weight and Load Carrying Capacity Required Travel Space or Path Volume handled Ability to load and unload the goods

Types of Transportation Concepts Above Floor Non powered Transportation Concept

These require Gravity Force or Human Power to facilitate product flow between locations Horizontal This concept is applied at a single level or elevation . Commonly used methods are Gradients ( from a higher level to lower level ) Ropeways Chain-Pulley Blocks Movable Frames Weight Differentials Wheels

Types of Transportation Concepts Above Floor Non powered Transportation Concept

Vertical This concept is applied at multiple levels or elevations . Commonly used methods are Gradients ( from a higher level to lower level ) Ropeways Chain-Pulley Blocks Weight Differentials

These require an Electric Motor , Fuel Powered Motor , Air Pressure or Vacuum to propel a load carrying surface or product to facilitate product flow between locations Horizontal This concept is applied at a single level or elevation . Commonly used methods are Trolleys ( Electric Powered , Air Cushioned , Pneumatic , Hydraulic ) Caddie Cars ( usually Electric Powered ) Pipes ( Vacuum powered )

Types of Transportation Concepts Above Floor Powered Transportation Concept

Types of Transportation Concepts Above Floor Powered Transportation Concept

Vertical This concept is applied at multiple levels or elevations . Commonly used methods are Lifts ( Electric Powered , Pneumatic , Hydraulic ) Cable Cars ( usually Electric Powered ) Pipes ( Vacuum powered )

These have a travel path that is embedded in the floor and utilise Gravity or Human Power to facilitate product flow between locations Horizontal This concept is applied at a single level or elevation . Commonly used methods are Trolleys on Rails Cars on Specially Designed trenches Gradient enabled Conduits

Types of Transportation Concepts In Floor Non Powered Transportation Concept

Vertical This concept is applied at multiple levels or elevations . Commonly used methods are Light Trolleys with Wall Scaling Rails Gradient enabled Conduits

Types of Transportation Concepts In Floor Non Powered Transportation Concept

These have a travel path that is embedded in the floor and require Electric Powered Motor and Fuel Powered Motor Trolleys besides Air Pressure to facilitate product flow between locations. Horizontal This concept is applied at a single level or elevation . Commonly used methods are Mini Trains on Rails Cars on Specially Designed trenches Vacuum Conduits

Types of Transportation Concepts In Floor Powered Transportation Concept

Vertical This concept is applied at multiple levels or elevations . Commonly used methods are Elevators Escalators Vacuum Conduits

Types of Transportation Concepts In Floor Powered Transportation Concept

These are unique in characteristics in this that the travel path is above the floor level . These require Gravity or Employee power to facilitate product flow between locations. The support for the travel path is from the ceiling , the wall or from the floor with stands or racks . These facilitate movement from a higher to a lower gradient only . Chutes Tubes or pipes Suspended Platforms

Types of Transportation Concepts Overhead Non Powered Transportation Concept

These also have the travel path above the floor level . These require Electric Power , Air Pressure or vacuum to propel the load carrying surface or the product to facilitate flow between locations. Horizontal Used for a single level or elevation Conveyor Belts or Lines Tubes or pipes ( vacuum powered ) Powered Platforms ( suspended )

Types of Transportation Concepts Overhead Powered Transportation Concept

Vertical Used for multiple levels or elevations Conveyor Belts or Lines Tubes or pipes ( vacuum powered ) Powered Platforms ( suspended )

Types of Transportation Concepts Overhead Powered Transportation Concept

These are Load Carrying Surfaces that follow an orderly sequence or travel path through the facility . These are powered by an Electric Motor , air pressure or vacuum or computerised . Assembly lines Trains or Cars Fork lifts

Types of Transportation Concepts Fixed Travel Path Transportation Concept

These are Load Carrying Surfaces that do not follow an orderly sequence or travel path through the facility . These are powered by an Electric Motor or Fuel Powered Motors and are driven by employees . Cars Fork lifts

Types of Transportation Concepts Variable Travel Path Transportation Concept

Types of Activities
There are two types of activities in each of the Product Transportation concepts Static Activities Dynamic Activities Static Activities Static activities occur at a Workstation ( either at origination or at the culmination ) before the load carrying surface or the load is readied for transportation

Types of Activities
Dynamic Activities Dynamic activities occur at a workstation ( as before ) and during the transportation process ( as found fit ) at the instant the load carrying surface or the load is readied for transportation

Types of Activities
Static Activities These activities include Compiling necessary information Presenting the information in a comprehendible form ( to a person or a machine ) Issuing Authorisations accordingly

Types of Activities
Dynamic Activities These activities include Readying the Product and / or the Load Carrying Surface Loading the Product / Surface Despatching the Product / Surface manually mechanised automated Traversing the Path Diverting wherever necessary

Types of Activities
Dynamic Activities Ensuring correct halts Unloading Run Out

Concept Design Parameters

These Parameters include Product Dimensions ( length , width , height , weight , shape ) Product Quantities ( Volumes ) Product Mix ( based on processing , shapes , dimensions , despatch ) Open Space required for the Product or Load Carrying Surface Customer or Workstation working space Fragility of the Product Crushability of the Product

Concept Design Parameters

Transportation or traversed distance Orientation of Traversed Distance Goodness of Traversed Distance Effort of the Traversed Distance Number of Pickup and Delivery Points Location of Pickup and Delivery Points Loading and Unloading Methods Production Method Number of trips in a defined time bucket Geographic Location of Facility and Safety Measures

Latest Trends in Design Concepts

These include Numerically Controlled Devices Automatic Identification Methods Aimed at Flexible Labour Usage Cross-Dock Operations

Future Trends in Design Concepts

These include Automatically Guided Vehicles Code Delivery Destination Entry These will result in Narrower Travel Paths Faster Traversing Time Lesser Human Intervention Multiple elevations

Relationship between Concept and Layout

The following factors have a great influence on the layout of a facility The product travel length between two workstations The product travel width ( inclusive of the load carrying surface ) The product travel height ( inclusive of the load carrying surface ) Elevation of the load carrying surface above the floor Number of Load Carrying Surface trips Required Personnel Backup travel paths

Relationship between Concept and Layout

The Number of turns in the Travel Path The number of elevations in the travel path The kind of power source

Factors for Travel Length

The minimum travel path length , width and height Loading and Unloading surface area The Return Travel path length Personnel travel path Area for Maintenance Travel Path run-out distance

Factors for Travel Width

The Width of the product including the Load Carrying Surface Width required for movement of Personnel

Factors for Travel Height

The height of the transportation concept is determined by The required drive train mechanism Load carrying surface side guards Travel path structural support members Product characteristics Product stability Seismic location

Factors for Elevation

The elevation of the transportation concept is determined by Support for the propelling mechanism Number of surfaces that carry the maximum weight

Number of Turns
The number of turns of the transportation concept is determined by Workstation sequence Load Carrying surface

Some Standardised Rules

For Powered Pallet Trucks recommended width is 9 feet For Powered Counterbalanced Lift Truck the recommended with is 13 feet For all Train of Carts transportation concept recommended width is 12 feet All aisles must indicate travel path of the trucks along with zebra crossing lines to indicate movement of personnel All doors and door frames must have guard rails or posts

Occupational Safety and Hazards Administration ( OSHA ) OSH Act 2002 Documents OSHA 2236 Materials Handling and Storing OSHA 3072 Sling Safety OSHA 3077 Personal Protective Equipment OSHA 3100 Crane or Derrick Suspended Platforms OSHA 3106 Concrete and Masonry Construction OSHA 3120 Control of Hazardous Energy ( Lockout / Tagout )

Occupational Safety and Hazards Administration ( OSHA ) OSH Act 2002 Hazardous Materials Acetylene Acetaldehyde Butadiene Cyclopropane Diethyl Ether Ethylene Ethylene Oxide Hydrogen Isoprene Propylene Oxide Unsymmetrical Dimethyl Hydrazine

Occupational Safety and Hazards Administration ( OSHA ) OSH Act 2002 Services Offered Safety and Health Management Programme Management Leadership and Employee involvement Worksite Analysis Hazard Prevention and Control Safety and Health Training Voluntary Protection Programme Awards Demonstration Merit Star

Maintaining and Improving Equipment

Maintenance Often viewed as an Overhead Cash Pit Largely : Breakdown Repair Highly understaffed Carried out in haste

Maintaining and Improving Equipment

Breakdown Maintenance Finding the Breakdown Remedying the Breakdown Shuffling to make up for lost time Outcomes : Unnecessary Capital Investment Large Inventories of finished / semifinished product Large Inventories of Spares

Equipment Problems
Machine Malfunction Machine Breakdown

Equipment Problems
Machine Malfunction Machine Deterioration resulting in shortened machine life Machine Inefficiency resulting in eventual high costs Incorrect output Scrap and Rework

Equipment Problems
Machine Breakdown Safety Hazards resulting in Injuries Idled workers resulting in High Inventories Idled Facilities resulting in Schedule delays

Preventive Maintenance
The practice of tending to equipment so that it is never idle because of a malfunction or a breakdown thus being in a state of optimal operation at all times

Maintainability
Maintainability is the effort and cost of performing maintenance . There are two measures of maintainability Mean Time To Repair ( MTTR ) Mean Time Between Failures ( MTBF )

Mean Time To Repair ( MTTR )

MTTR = S ( Downtime for Repair ) / Number of Repairs Downtime for repair includes : Waiting for repair Personnel Diagnose Problem Locate necessary Spares Remedy the problem ( Repair ) Test the Equipment Handover to owner

Mean Time Between Failures ( MTBF )

MTBF = Total Running Time / Total Number of Failures MTBF is used to estimate Reliability of an item expressed as a function of time So Reliability R(t) = e-lT where l = 1 / MTBF ( failure rate ) T = Specified time e = Naperian Logarithm ( 2.718 )

Example
Twenty Machines are operated for 100 hours . One Machine fails at 60 hours and another machine fails at 70 hours . The rest of the eighteen machines run for the complete 100 hours . Calculate MTBF .

Total Running Time for the machines is 18 ( 100 ) + 60 + 70 = 1930 hours Total Number of Failures = 2 So MTBF = 1930 / 2 = 965 hours

Example
For the same example what would be the reliability of the machine at a)500 hours b)900 hours

l = 1 / MTBF = 1 / 965 = 0.0010362 So by the formula

R ( 500 ) = e And R ( 900 ) = e
-0.0010362(500) -0.0010362(900)

= 0.596 or 60 % = 0.394 or 40 %

Example
For the same example suppose there is a component that helps the machine revert to a reliability of 100 % , when should it be replaced so that the machine performance does not slip below 90 % Reliability R(t) = e-lT where R(t) = 0.9 So , substituting 0.9 = e -0.0010362(T) Solving by transposing , T = 109.2 hours (101.3)

Availability
Availability is the proportion of time the equipment is actually available to perform work out of the time it should be available to perform work Taking into account MTBF and MTTR The total time of running of a machine in a given period of time is MTTR + MTBF Time it is available is MTBF So Availability ( A ) = MTBF / ( MTBF + MTTR )

Relationship between Availability and MTTR + MTBF

MTTR MTBF

MTTR = 5 ; MTBF = 15 ; A = 75% MTTR MTBF

MTTR = 5 ; MTBF = 20 ; A = 80%

MTTR

MTBF

MTTR = 2 ; MTBF = 20 ; A = 90%

Availability
Availability can also be given as A = Actual Running Time / Planned Running Time where Planned Running Time = Total Plant Time Planned Downtime Actual Running Time = Planned Running Time All other Downtime

Availability
Planned Downtime includes Meals Rest Breaks Scheduled Preventive Maintenance All other Downtime includes Setup Time Equipment Breakdown Unavailability of Material

Example
A plant working in 2 shifts of 8 hours each has 2 hours of planned downtime per shift . On an average it has been observed that 110 minutes are consumed for set up of the machine and 75 minutes for breakdown / malfunction . Calculate availability Planned Running Time = 16 2(2) hours = 12 hours = 720 minutes Actual Running Time = 720 110 75 = 535 minutes A = 535 / 720 = 0.7431 = 74 %

Efficiency
Efficiency is a measure of how well an equipment performs when its running . There are two components of efficiency Rate Efficiency Speed Efficiency Rate Efficiency = Actual Production Volume x Actual Cycle Time / Actual Running Time

Example
If in 535 minutes it has been observed that 830 units have been produced but the actual cycle time for each unit is 0.6 what is the rate efficiency of the equipment ? Rate Efficiency = Actual Production Volume x Actual Cycle Time / Actual Running time = 830 x 0.6 / 535 = 498 / 535 = 0.9308 = 93 %

Efficiency
Speed Efficiency The Ratio of Designed Cycle Time to Actual Cycle Time is called as Speed Efficiency of the Equipment Speed Efficiency = Designed Cycle Time / Actual Cycle Time Example If designed cycle time is 0.5 per unit for previous example Speed Efficiency = 0.5 / 0.6 = 0.833 = 83%

Efficiency
Performance Efficiency Performance Efficiency = RE x SE = 0.9308 x 0.8333 = 0.7756 = 77 %

Yield
Yield is also termed as Quality Rate and is expressed as a ratio of Good Units Produced / Total Units Produced Example If the equipment under consideration produces 800 good units out of 830 units , Yield is given as 800 / 830 = 0.9639 = 96 %

Overall Equipment Effectiveness ( OEE )

OEE = Availability x Performance Efficiency x Yield Example For the equipment under consideration , OEE = 0.7431 x 0.7756 x 0.9639 = 0.55 55 %

The Need for TPM

Operators accepted chronic stoppages as inevitable Operators suffered from an attitude of I operate you clean and fix The relation between the chronic stoppages and equipment components was not explored fully Maintenance Operators were not trained in the Science of Investigation and Remedy of Equipment Problems Slight Defects were often ignored

TPM = Total Productive Maintenance

TPM
First implemented at Toyota Motor Company in 1962 The Mission Advanced Products for an Advancing Society The Policy Aim for World-class Quality Corporate Growth through Product Leadership Product Development through Technological Research Greater Efficiency through Greater Flexibility Revitalise the Corporation through Employee Talent

The Need for TPM

The Purpose The purpose of TPM is not only to keep the equipment in a state of optimal operation at all times but also to tailor the equipment so that it becomes robust enough to withstand any changes in its vicinity and flexible enough to be adaptable in the wake of technological advances The Philosophy We are all responsible for our Equipment

TPM Policy and Objectives

To Maximise Overall Equipment Effectiveness through Total Employee Involvement To continually improve reliability and maintainability of equipment resulting in higher productivity and Quality To maximise economy of operation for the entire life of the Equipment To continually enhance skills and expertise of all employees ( with relation to their equipment ) To continually enhance the work environment and enrich jobs

Eight Steps to TPM

1. 2. 3. 4. 5. 6. 7. 8. Conduct Initial Cleaning Address causes of Dirty Equipment Reduce the number of Hard-to-Clean areas Document and Standardise Maintenance Activities Familiarise Operators with Optimal operating conditions Develop Diagnostic Skills and Cultivate Autonomy Organise and Manage the entire Workspace Strive for Continual Improvement

Conduct Initial Cleaning

Get rid of all debris and prevent accelerated deterioration Identify hidden problems made apparent by cleaning and correct them Familiarise Operators with the nuances of equipment operation

Cleaning is Inspection

Causes of Dirty Equipment

Prevent Scattering of dust and contaminants wherever possible Prevent dirt from adhering to different parts of the equipment Work on Improving Equipment

Localise scattering of Debris

Work on Hard-to-Clean Areas

Design better methods for continual cleaning Work on creating Visual Controls Make equipment more transparent

Hard to Clean is Hard to Inspect

Standardise Maintenance Activities

Enlist factors of Deterioration Draft provisional standards of cleaning , inspecting and maintenance Study the structure and function of the Equipment thoroughly

Adhere and Empower

Develop Operating Conditions

Learn of Equipment Optimal Performance Parameters Work with experts to learn of Equipment Deterioration Document relationship of deterioration to surroundings and effects of deterioration Work on establishing early warning signals

Establish Conditions

Develop Diagnostic Skills

Create Checklists and Use them appropriately Improve Operational Reliability and Clarify Abnormal conditions Establish and Document appropriate Corrective and Preventive Measures

Control Conditions

Manage Entire Workspace

Standardise and Document Workshop Housekeeping Procedures Facilitate an All-encompassing Companywide Maintenance Programme Establish the 5S System Cover all areas and all assets in the organisation

Manage Conditions

Improve Continually
Train each and every person in the organisation in TPM Record and Analyse Equipment Data continually and facilitate organised feedback Relate Maintenance Goals to Company Goals Integrate Equipment Management into Long term and Annual Organisational Plans

Transcend Performance Standards