Productivity Improvement Techniques

Measures, methods or techniques to improve productivity are listed below.

These twelve productivity improvement techniques are explained as follows:1. Value Engineering (VE) : Value Engineering (VE) is the process of improving the value of a product at every stage of the product life cycle. At the development stage, VE improves the value of a product by reducing the cost without reducing quality. At the maturity stage, VE reduces the cost by replacing the costly components (parts) by cheaper components. VE also tries to improve the value and quality of the product. Value is the satisfaction which the consumer gets by using the product. VE tries to give maximum value for a lowest price. 2. Quality Circles (QC) : The concept of Quality Circles (QC) was introduced in 1960 in Japan. QC is a small group of employees who meet regularly to identify, analyse, and solve problems in their department. The QC members advise the management to implement new methods to solve work-related problems. QC increases the productivity. 3. Financial and Non-Financial Incentives : The organisation must motivate the employees by providing financial and non-financial incentives. The financial incentives

include better wages and salaries, bonus, etc. The non-financial incentives include better working conditions, welfare facilities, worker's participation in management, etc. 4. Operations Research (OR) : Operations Research (OR) uses mathematical and scientific methods to solve management problems, including problems of productivity. QR technique uses a scientific method to study the alternative courses of actions and to select the best alternative. OR uses techniques such as linear programming, game theory, etc., to make the right decision. Thus, QR helps to improve productivity. 5. Training : Training is a process of increasing the knowledge and skills of the employees. Training is a must, for new employees and experienced employees. Training increases the efficiency of the employee. Thus, training results in high productivity. 6. Job Enlargement : Job Enlargement is a horizontal expansion of a job. It is done to make jobs more interesting and satisfying. It involves increasing the variety of duties. For e.g. a typist may be given the job of accounts writing in addition to the typing work. This technique is used for lower level jobs. 7. Job Enrichment : Job Enrichment is a vertical expansion of a job. It makes routine jobs more meaningful and satisfying. It involves providing more challenging tasks, and responsibilities. For e.g. a manager who prepares performance reports is asked to make plans for his department. Job Enrichment technique is used for higher-level jobs. 8. Inventory Control : There must be a proper level of inventory. Overstocking and under stocking of inventories must be avoided. Overstocking of inventories will result in blocking of funds and there are chances of spoilage or misuse of materials. Under stocking of inventories will result in shortages. This will block the smooth flow of production, and so the delivery schedules will be affected. 9. Materials' management : Materials' management deals with optimum utilisation of materials in the manufacturing process. It involves scientific purchasing, systematic store keeping, proper inventory control, etc. The main objective of materials' management is to purchase the right quantity and quality materials, at the right prices, at the right time, to maintain favourable relations with suppliers, to reduce the cost of production, etc. 10. Quality Control : The main objective of quality control is to produce good quality goods at reasonable prices, to reduce wastages, to locate causes of quality deviation and to correct such deviations, to make the employees quality conscious, etc. 11. Job Evaluation : Job Evaluation is a process of fixing the value of each job in the organisation. It is done to fix the wage rate for each job. A proper job evaluation increases the moral of the employees. This increases the productivity. 12. Human factor engineering : Human factor engineering refers to the man-machine relationship. It is designed to match the technology to a human requirement. The term Ergonomics has originated from the Greek word 'ergos' meaning 'Work' and 'nomikos' meaning 'Law'. So, it means 'Law of Work'. It tells us how to fit a job to a man's psychological and physiological characteristics to increase human efficiency and wellbeing.

Method Study
Method study is the process of subjecting work to systematic, critical scrutiny to make it more effective and/or more efficient. It is one of the keys to achieving productivity improvement. It was originally designed for the analysis and improvement of repetitive manual work but it can be used for all types of activity at all levels of an organisation. The process is often seen as a linear, described by its main steps of:
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Select (the work to be studied); Record (all relevant information about that work); Examine (the recorded information); Develop (an improved way of doing things); Install (the new method as standard practice); Maintain (the new standard proactive).

Although this linear representation shows the underlying simplicity of method study, in practice the process is much more one of repeated passes through the sequence of steps with each dominating at a different stage of the investigation. The cyclic process often starts with a quick, rough pass in which preliminary data are collected and examined before subsequent passes provide and handle more comprehensive and more detailed data to obtain and analyse a more complete picture.

Select
Work selected for method study may be an identified problem area or an identified opportunity. It may be identified through a systematic review of available data, normal monitoring or control processes, high levels of dissatisfaction and complaint or as part of a change in management policy, practice, technology or location, and usually because it meets certain conditions of urgency and/or priority.
Define

Before any method study investigation is begun, it is necessary to establish clear terms of reference which define the aims, scale, scope and constraints of the investigation. This should also include an identification of who "owns" the problem or situation and ways in which such ownership is shared. This may lead to a debate on the aims of the project, on reporting mechanisms and frequencies, and on the measures of success. This process is sometimes introduced as a separate and distinct phase of method study, as the "Define" stage. It leads to a plan for the investigation which identifies appropriate techniques, personnel, and timescale.

Record

The Record stage of method study involves gathering sufficient data (in terms of both quality and quantity) to act as the basis of evaluation and examination. A wide range of techniques are available for recording; the choice depends on the nature of the investigation; the work being studied; and on the level of detail required. Many of the techniques are simple charts and diagrams, but these may be supplemented by photographic and video recording, and by computer based techniques. Especially with "hard" (clearly defined) problems, method study often involves the construction and analysis of models, from simple charts and diagrams used to record and represent the situation to full, computerised simulations. Manipulation of and experimentation on the models leads to ideas for development.

Examine
The recorded data are subjected to examination and analysis; formalised versions of this process are critical examination and systems analysis. The aim is to identify, often through a structured, questioning process, those points of the overall system of work that require improvements or offer opportunity for beneficial change.

Develop
The Examine stage merges into the Develop stage of the investigation as more thorough analysis leads automatically to identified areas of change. The aim here is to identify possible actions for improvement and to subject these to evaluation in order to develop a preferred solution. Sometimes it is necessary to identify short-term and long-term solutions so that improvements can be made (relatively) immediately, while longer-term changes are implemented and come to fruition.

Install
The success of any method study project is realised when actual change is made 'on the ground' change that meets the originally specified terms of reference for the project. Thus, the Install phase is very important. Making theoretical change is easy; making real change demands careful planning - and handling of the people involved in the situation under review. They may need reassuring, retraining and supporting through the acquisition of new skills. Install, in some cases ,will require a parallel running of old and new systems, in others, it may need the build-up of buffer stocks, and other planning to manage the change. what matters is that the introduction of new working methods is successful. There is often only one chance to make change!

Maintain
Some time after the introduction of new working methods, it is necessary to check that the new method is working, that it is being properly followed, and that it has brought about the desired

results. This is the Maintain phase. Method drift is common - when people either revert to old ways of workin, or introduce new changes. Some of these may be helpful and should formally be incorporated; others may be inefficient or unsafe. A methods audit can be used to formally compare practice with the defined method and identify such irregularities.

Time Study
Time study is a structured process of directly observing and measuring human work using a timing device to establish the time required for completion of the work by a qualified worker when working at a defined level of performance. It follows the basic procedure of systematic work measurement of:
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analysis of the work into small, easily-measurable components or elements measurement of those components and synthesis from those measured components to arrive at a time for the complete job.

The observer first undertakes preliminary observation of the work (a pilot study) to identify suitable elements which can be clearly recognised on subsequent occasions and are of convenient length for measurement. Subsequent studies are taken during which the observer times each occurrence of each element using a stopwatch or other timing device while at the same time making an assessment of the worker's rate of working on an agreed rating scale. One of the prime reasons for measuring elements of work, rather than the work as a whole is to facilitate the process of rating. The rate at which a worker works will vary over time; if elements are carefully selected, the rate of working should be consistent for the relatively short duration of the element. More information on rating is given within the entry on work measurement. This assessment of rating is later used to convert the observed time for the element into a basic time; a process referred to as "extension". It is essential that a time study observer has been properly trained in the technique and especially in rating. Time study, when properly undertaken, involves the use of specific control mechanisms to ensure that timing errors are within acceptable limits. Increasingly, timing is by electronic devices rather than by mechanical stopwatch; some of these devices also assist in subsequent stages of the study by carrying out the process of "extending" or converting observed times into basic times. The basic time is the time the element would take if performed at a specified standard rating. The number of cycles that should be observed depends on the variability in the work and the level of accuracy required. Since time study is essentially a sampling technique in which the value of the time required for the job is based on the observed times for a sample of observations, it is possible using statistical techniques to estimate the number of observations required under specific conditions. This total number of observations should be taken over a range of conditions where these are variable and, where possible, on a range of workers.

Once a basic time for each element has been determined, allowances are added (for example, to allow the worker to recovere from the physical and mental effects of carrying out the work) to derive a standard time. Time study is a very flexible technique, suitable for a wide range of work performed under a wide range of conditions, although it is difficult to time jobs with very short cycle times (of a few seconds). Because it is a direct observation technique, it takes account of specific and special conditions but it does rely on the use of the subjective process of rating. However, if properly carried out it produces consistent results and it is widely used. Additionally, the use of electronic data capture devices and personal computers for analysis makes it much more cost effective than previously.

JUST-IN-TIME (JIT) PRODUCTION

Just-in-time (JIT) is defined in the APICS dictionary as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It also has been described as an approach with the objective of producing the right part in the right place at the right time (in other words, just in time). Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rework. JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise.
JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit.

The basic elements of JIT were developed by Toyota in the 1950's, and became known as the Toyota Production System (TPS). JIT was well-established in many Japanese factories by the early 1970's. JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used.
Some Key Elements of JIT

1. Stabilize and level the MPS with uniform plant loading (heijunka in Japanese): create a uniform load on all work centers through constant daily production (establish freeze windows to

prevent changes in the production plan for some period of time) and mixed model assembly (produce roughly the same mix of products each day, using a repeating sequence if several products are produced on the same line). Meet demand fluctuations through end-item inventory rather than through fluctuations in production level. Use of a stable production schedule also permits the use of backflushing to manage inventory: an end items bill of materials is periodically exploded to calculate the usage quantities of the various components that were used to make the item, eliminating the need to collect detailed usage information on the shop floor. 2. Reduce or eliminate setup times: aim for single digit setup times (less than 10 minutes) or "one-touch" setup -- this can be done through better planning, process redesign, and product redesign. A good example of the potential for improved setup times can be found in auto racing, where a NASCAR pit crew can change all four tires and put gas in the tank in under 20 seconds. (How long would it take you to change just one tire on your car?) The pit crews efficiency is the result of a team effort using specialized equipment and a coordinated, wellrehearsed process. 3. Reduce lot sizes (manufacturing and purchase): reducing setup times allows economical production of smaller lots; close cooperation with suppliers is necessary to achieve reductions in order lot sizes for purchased items, since this will require more frequent deliveries. 4. Reduce lead times (production and delivery): production lead times can be reduced by moving work stations closer together, applying group technology and cellular manufacturing concepts, reducing queue length (reducing the number of jobs waiting to be processed at a given machine), and improving the coordination and cooperation between successive processes; delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers to locate closer to the factory. 5. Preventive maintenance: use machine and worker idle time to maintain equipment and prevent breakdowns. 6. Flexible work force: workers should be trained to operate several machines, to perform maintenance tasks, and to perform quality inspections. In general, JIT requires teams of competent, empowered employees who have more responsibility for their own work. The Toyota Production System concept of respect for people contributes to a good relationship between workers and management. 7. Require supplier quality assurance and implement a zero defects quality program: errors leading to defective items must be eliminated, since there are no buffers of excess parts. A quality at the source (jidoka) program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop production when something goes wrong. Techniques such as "JIT lights" (to indicate line slowdowns or stoppages) and "tally boards" (to record and analyze causes of production stoppages and slowdowns to facilitate correcting them later) may be used. 8. Small-lot (single unit) conveyance: use a control system such as a kanban (card) system (or other signaling system) to convey parts between work stations in small quantities (ideally, one

unit at a time). In its largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have instituted a JIT program along with a MRP system), although JIT is required to implement a kanban system and the two concepts are frequently equated with one another.

Just in time production (JIT)

Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct. Supplies are delivered right to the production line only when they are needed. For example, a car manufacturing plant might receive exactly the right number and type of tyres for one days production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot. Advantages of JIT
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Lower stock holding means a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Disadvantages of JIT
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There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders however, JIT is a very responsive method of production