Productivity Lecture

ProductivityProductivity

Production and Production and Operations Operations

ManagementManagement

OCTOBER 1, 2011OCTOBER 1, 2011

DR. Zeny J. LontocDR. Zeny J. Lontoc

Baseline Parameters

168 Hours/Wk168 Hours/Wk

DowntimeDowntime

AVAILABILITYAVAILABILITY

GapGap

MachineMachine

UtilizationUtilization

Machine Utilization = { (Availability) / (1 + PC)}Machine Utilization = { (Availability) / (1 + PC)}

• Machine Utilization –the Machine Utilization –the percentage of time a percentage of time a machine is capable of machine is capable of producing productproducing product

Baseline Parameters


DowntimeDowntime


GapGap

MachineMachine

UtilizationUtilization

• GapGap – Wasted time caused – Wasted time caused by variability in equipment by variability in equipment availability, operator/WIP availability, operator/WIP availabilityavailability

Baseline Parameters

Availability = (168 – (scheduled + unscheduled Availability = (168 – (scheduled + unscheduled DT))/168DT))/168


DowntimeDowntime


GapGap

• AVAILABILITY – Time the AVAILABILITY – Time the machine is not down due to machine is not down due to scheduled or unscheduled scheduled or unscheduled DT. DT.

Unscheduled Downtime

• REPAIRS:• MTBF (hrs): Mean time between failure.• MTTR (hrs): Mean time to repair.

• ASSISTS:• MTBA (hrs): Mean time between Assist.• MTTA (mins): Mean time to assist.

Machine Capacity Metrics

•Runrate–The number of units a machine can produce in a week (thousands - ku)

RUNRATE = (MU * EUPH * Mfg Hrs per Week) / 1000


• Effective Units Per Hour (EUPH) – The average number of units that can be

produced in 60 minutes (machine is up to prod). Includes any task associated with a lot.

EUPH = 3600/( Cycle Time + Lot-lot setup + rework + rework setup time)

Unit of Measure: Percentage

Rework = 3600/(Pure UPH/Rework%)Rework = 3600/(Pure UPH/Rework%)

Unit of Measure: Seconds (seconds per hour)

Unit of Measure: Seconds

Derived from Time Studies.

Cycle Time = 3600 / Pure UPHCycle Time = 3600 / Pure UPH


Equal to the sum of all NORMAL ‘per Lot’ Labor activities

(EXT and MACH)


Sum of REWORK Labor Activities (EXT and MACH)

______________


RUNRATERUNRATE

MUMU

EUPHEUPH

MFGMFG

HRS/WKHRS/WK

XX

XX

AvailabilityAvailability

PCPC

Scheduled DTScheduled DT

Unscheduled DTUnscheduled DT

168hrs168hrs

3600sec/hr3600sec/hr

Cycle time

Rework

Lot to Lot Set-up time

Rework Set-up time

++

++

++

3600/ Pure UPH3600/ Pure UPH

Rework Percentage (Assy)Rework Percentage (Assy)

Retest Percentage (Test)Retest Percentage (Test)

Reburn Percentage (Burn In)Reburn Percentage (Burn In)

Internal Labor TimeInternal Labor Time

External Labor TimeExternal Labor Time

Machine TimeMachine Time

Why is Runrate important ?

• It is used in calculating the tool required in the production of products.

Tool Requirement = Volume

RunrateMarch April May June July August

Runrate 100 100 100 100 100 100Volume 1000 3000 1000 2000 4000 1000No. of tools installed 15 15 15 15 15 15Tool Requirement 10 30 10 20 40 10Tool Delta 5.00 (15.00) 5.00 (5.00) (25.00) 5.00

If Total Requirement > Tool Inventory?

If Total Requirement < Tool Inventory?

Productivity

• Productivity– A measure of the effective use of resources,

usually expressed as the ratio of output to input

Productivity = Output

Input

Productivity

Current Period Productivity – Previous Period ProductivityPrevious Period Productivity

Productivity Growth =

Productivity Growth = IS - WAS

WAS

Measures of Productivity

• Partial measures– output/(single input)

• Multi-factor measures– output/(multiple inputs)

• Total measure– output/(total inputs)


Partial Output Output Output Output

measures Labor Machine Capital Energy

Multifactor Output Output

measures Labor + Machine Labor + Capital + Energy

Total Goods or Services Produced

measure All inputs used to produce them

Examples of Partial Productivity Measures

Units of output per kilowatt-hourDollar value of output per kilowatt-hour

Energy Productivity

Units of output per dollar inputDollar value of output per dollar input

Capital Productivity

Units of output per machine hourmachine hour

Machine Productivity

Units of output per labor hourUnits of output per shiftValue-added per labor hour

Labor Productivity


• Determine the multifactor productivity for the combined input of labor and machine time using the following data:– Given:

• Output: 7,040 units @ $1.10 each• Input:

– Labor: $1,000– Materials: $520– Overhead: $2,000


MFP = OutputLabor + Materials + Overhead

MFP = (7040 units)*($1.10)$1000 + $520 + $2000

MFP = 2.20

Factors Affecting Productivity

Capital Quality

Technology Management

Methods

• Standardization• Quality• Use of Internet• Computer viruses• Searching for lost or misplaced

items• Scrap rates• New workers

Other Factors Affecting Productivity

• Safety• Shortage of IT workers• Layoffs• Labor turnover• Design of the workspace• Incentive plans that reward

productivity

Other Factors Affecting Productivity

Improving Productivity

• Develop productivity measures• Determine critical (bottleneck)

operations• Develop methods for productivity

improvements• Establish reasonable goals• Get management support• Measure and publicize improvements• Prioritize productivity projects

Bottleneck Operation

Machine #2Machine #2BottleneckOperation

BottleneckOperation

Machine #1Machine #1



10/hr10/hr

10/hr10/hr

10/hr10/hr

10/hr10/hr

30/hr30/hr

Bottleneck Operation

Process AProcess A10 units / hr10 units / hr

Process BProcess B5 units / hr5 units / hr

Process CProcess C15 units / hr15 units / hr

Ways to Determine Productivity

• Graphical representation– Marking– Molding

• Time Motion Validation– Machine Pure Units per Hour (PUPH)

• Start / Stop

– Labor elements

• Simulation – Pro Model Simulation– Extend Player

Sample Productivity Problem

• Metrology tool queuing problem.• “In Pursuit of Happyness”

Queuing Problem

• 1:4 machine to metrology algo.• 5 machine.• Start of the shift per machine adhesive weight

measurement.• Waiting time 30 min on 2 machines and 1 hour for 1

machine. 2 hrs total.

Tool # 7:00 - 7:30 7:30 -8:00 8:00 - 8:30

FOLD # 1set-up time using

metrology tool


metrology tool

FOLD # 3Waiting time for metrology tool

set-up time using metrology tool




Waiting time for metrology tool


Machine Number

Machine # 1

Machine # 2

Machine # 3

Machine # 4

Machine # 5

Queuing Solution

• Review machine spec, need revision on the “start of the shift” statement.

• Should include strategizing adhesive weight measurement.• While 2 machines are doing the set-up, 3 machines are processing lot.• Shiftly set-up will not be skipped but will only be delayed. Will not

impact capacity.

Tool # 7:00 - 7:30 7:30 -8:00 8:00 - 8:30 8:30 - 9:00


metrology toolLot processing



FOLD # 3 Lot processingset-up time using

metrology toolLot processing Lot processing

FOLD # 4 Lot processingset-up time using

metrology toolLot processing Lot processing

FOLD # 5 Lot processing Lot processingset-up time using


Machine Number

Machine # 1

Machine # 2

Machine # 3

Machine # 4

Machine # 5

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Productivity Lecture