(CLP) Programs

Appleton Greene corporate training programs are all process-driven. They are used as vehicles to implement tangible business processes within clients’ organizations, together with training, support and facilitation during the use of these processes. Corporate training programs are therefore implemented over a sustainable period of time, that is to say, between 1 year (incorporating 12 monthly workshops), and 4 years (incorporating 48 monthly workshops). Your program information guide will specify how long each program takes to complete. Each monthly workshop takes 6 hours to implement and can be undertaken either on the client’s premises, an Appleton Greene serviced office, or online via the internet. This enables clients to implement each part of their business process, before moving onto the next stage of the program and enables employees to plan their study time around their current work commitments. The result is far greater program benefit, over a more sustainable period of time and a significantly improved return on investment.

Appleton Greene uses standard and bespoke corporate training programs as vessels to transfer business process improvement knowledge into the heart of our clients’ organizations. Each individual program focuses upon the implementation of a specific business process, which enables clients to easily quantify their return on investment. There are hundreds of established Appleton Greene corporate training products now available to clients within customer services, e-business, finance, globalization, human resources, information technology, legal, management, marketing and production. It does not matter whether a client’s employees are located within one office, or an unlimited number of international offices, we can still bring them together to learn and implement specific business processes collectively. Our approach to global localization enables us to provide clients with a truly international service with that all important personal touch. Appleton Greene corporate training programs can be provided virtually or locally and they are all unique in that they individually focus upon a specific business function. All (CLP) programs are implemented over a sustainable period of time, usually between 1-4 years, incorporating 12-48 monthly workshops and professional support is consistently provided during this time by qualified learning providers and where appropriate, by Accredited Consultants.

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Executive summary

Manufacturing Productivity

History

Frederick Taylor in the late 1900s was the first proponent of Scientific Management. In the following few decades, he had some visible and very effective assistance from a notable few but not too many other people; in developing the concepts of scientific management. Henry Ford was conspicuously cost conscious, in product design and manufacturing innovation.

Heroes to Industrial Engineers are Frank and Lillian Gilbreath, primarily for their work in time study and work measurement. As we review the writings of Frank Gilbreth literally over 100 years ago, he suggested that a primary tool to improve productivity is to reduce waste. One of the two tenants of the Toyota Production System is, you guessed it, to reduce waste.

Taylor and Frank Gilbreth both started with a stopwatch. After all, arguably the most important question in manufacturing is “how long does the job take?”

Our tool to determine priority also goes back more than 100 years, to Vilfredo Pareto who first quantified that a small number of Italian citizens possessed a large amount of Italian wealth. The concept has been broadened to show that, within a given set of elements, a small number of individual elements constitutes a very large portion of total value. We use the Pareto Principle to find productive opportunities.

Otherwise, until World War II there was little organized recognition of, or progress in, manufacturing productivity. Then because of the amounts of armaments required and a national sense of urgency, productivity which led to output was a focus of manufacturing, often skipping the theory phase and going directly into practice. Some of these oldies but goodies are still around because their value has been proven.

Productivity is measured as output divided by input. Therefore, any action taken to increase output, or decrease input, results in higher productivity.

“Productivity” can relate to any element of corporate activity; direct and indirect labor, overhead, materials, equipment, facilities, services. Direct labor cost is quite often not a large percentage of product cost, but direct labor can a good starting point for productivity improvement, for two reasons: 1) Labor has a cost of its own even if not large, and 2) the major function of labor is to operate equipment and processes efficiently and to optimize their capability; to build the product. So, good idea, let’s produce, providing output on time to meet the market demand. Let’s improve labor and equipment productivity, over a wide range of constituent parts.

The latter half of the 20th century and partway into the 21st have evidenced change on such a prolific scale that that it can hardly be defined. Semiconductors, computers, electronics in general, the space age, the growth of Asia as a supplier of products of all kinds. For manufacturers, evolving computers and electronics and programs have introduced the mechanisms to control production more accurately. A negative is that the rate of technology change that is possible has tended to obscure the crystal ball that tells us what comes next.

With the changes, the worldwide manufacturing arena is not the same as it has been, which suggests that participants in the arena may feel it necessary to make further changes on their own part.

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Current Position

There are very many facets to productivity, and very many circumstances in manufacturing which test the capability of management to optimize productivity. Aha, that means that there will also be very many opportunities for improvement.

And usually in the dynamic world of manufacturing, the most important issues and opportunities have to do with the financial picture. But the manufacturing problem of the day may also be related to labor supply, or to uncertainties in the supply chain, or to the ability to have employees report to work in an environment free of infectious disease. Welcome to the future.

The classic productivity mechanisms for manufacturing have not gone out of style, if anything computer capabilities and electronics have simplified and augmented their use. New concepts are proposed routinely, with broad or narrow application. We have available constructive, productive solutions to a wide range of challenges, in a multitude of industrial settings.

Frank Gilbreth over 100 years ago suggested that a primary tool to improve productivity is to reduce waste. One advantage of our current situation is that several very effective methods with which to reduce waste have been developed. The Pareto Principle zeroes in on the most productive opportunities, to get the biggest bang for the buck.

Any productivity improvement relies on an assumption that is often not spoken. The assumption is that any given project is expected to be beneficial assuming all other factors are equal. And of course other things are never equal; any improvement will be expected to perform within the circumstances of the time however much different from the assumptions. Really useful solutions then will have a short fuse, they will be selected and designed to contribute quickly. A better longer-term solution may be proposed as well but the emphasis will be on rapid results.

Today the situation in international trading is a significant concern. There are mechanical concerns, due to the COVID epidemic; on one hand worldwide demand has been affected and on the other hand individuals are prevented from working; there may be a shortage of oceangoing vessels, or a backup at seaports, individuals may choose to work remotely. There are broader implications too, international tensions and the supply chain imbalances both of which may be short term or longer term.

There is great interest in productivity; of personal productivity, of output in general, and in productivity which targets business and industry. But interest does not necessarily translate into specific practical action.

Work measurement, whether a formal system or otherwise, can be a primary factor in control of labor cost and activity. If measurement is formal, (and continually maintained) then management has an objective knowledge of the activity. But it is not uncommon that production tasks have not actually been observed and measured, that rates in use are from past performance or estimate, or are no longer reflective of actual equipment, methods, materials, specs. In such a case, costs may be incorrectly stated such as production worker pay; manufacturing controls such as scheduling of product or forecasting or number of people required may be off; some Key Performance Indicators that management uses will be incorrect because the value of direct labor content is not up to date.

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Future Outlook

Are you looking for a program laden with technology or buzz words? This isn’t it. This program, Manufacturing Productivity, zeros in on the heart of manufacturing, namely what happens on the manufacturing floor, the warehouse dock, the machine shop site. To describe production in one word, try Dynamic. The one production constant is change.

In the productivity arena, one size does not fit all. That is why this program offers many differentiated processes; they tend to be straightforward; specialized with a concentrated focus, yet they reinforce one another.

Initially, we will assess as-is conditions to determine just what needs attention, although probably you have an idea already. Prioritize issues, judge resources available, set a plan.

It is likely that individuals with different responsibilities at different organizational levels will attend specific portions of the multi-functional workshops, in relationship to the responsibilities of their specific job functions.

Two prime productivity tools of all those available, are the Pareto Principle and a pillar of Frank Gilbreth and the Toyota Production System, eliminate waste. Pareto tells us that a few factors will contribute the majority of cost; of problems; of opportunity. First then let’s identify, quantify and understand those principal elements in your circumstance. Then we’ll start to eliminate waste in subsequent steps of this program.

Typically, a cost reduction effort targets direct labor. That’s often not the right target by the way, because there are usually larger costs. But labor has a cost even if small, and perhaps more importantly labor operates machinery and processes. We want labor to be productive and effective in order to manufacture your product.

The key tool to achieve productivity, alone and in conjunction with other tools, is work measurement.

Production labor rates may be current, or set years ago or only estimated in the first place. But regardless of their accuracy, they are routinely entered into systems such as standard cost, variance analysis, production scheduling, capacity planning, hiring and training. (Your Key Performance Indicators depend on accurate production rates.) To allow sound management decisions, set production rates on today’s methods from which waste has been removed, (workshop #3) with today’s equipment, specs, technology and product mix.

Workshop # 2 will address work measurement; how to create reliable engineered standards, develop applications and gain benefits. A subsequent workshop identifies placement and use of work measurement data within existing systems.

An early workshop will address production constraints, processes to quantify, relieve, and manage them. The constraints workshop, along with the waste removal one, will provide rapid attention to central manufacturing concerns.

One workshop will focus on Outcomes; not just output but also timing, quality, product mix. We will discuss reporting, keeping the score, and which modifications and extensions are possible.

A common interruption to production has to do with batch sizes and product changeovers. A workshop will be dedicated to minimizing the number of batch changes in the first place and expediting the changeover process.

One workshop will address the specific subject of formal cost reduction throughout an organization, offering a wide range of possibilities. A workshop will offer processes of plant layout, flow, and space utilization because arrangement of people, materials and equipment is at the very heart of business productivity, in an organization of any size; engaged in just about any endeavor.

Work measurement can be effective in indirect labor operations of maintenance, materials handling, and quality control. One workshop will address these procedures and processes.

A workshop will summarize the multitude of productivity techniques and theory available, both modern and the golden oldies. As you choose to fit your objectives and cost structure, consider also your organization’s culture and capability.

The final workshop will address the accomplishments of the preceding sessions. Come join us.

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Curriculum

Manufacturing Productivity – Part 1- Year 1

1. Month 1 Situation Assessment
2. Month 2 Establish Work Measurement
3. Month 3 The Pareto Principle and Remove Waste
4. Month 4 Productivity Constraints
5. Month 5 Outcomes
6. Month 6 Improve the Workstation
7. Month 7 Reporting, and Work Measurement Rates in Production Systems
8. Month 8 Batch Size and Changeover
9. Month 9 Cost Reduction
10. Month 10 Management Planning and Control Processes
11. Month 11 Plant Layout, Flow, Space Utilization
12. Month 12 Results Review

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Program Objectives

The following list represents the Key Program Objectives (KPO) for the Appleton Greene Manufacturing Productivity corporate training program.

Manufacturing Productivity – Part 1- Year 1

Month 1: Situation Assessment

Workshop 1: Baseline assessment of the as-is situation.

The client will have received in advance a list of as-is assessment questions, and may well suggest others. The questions address a wide variety of manufacturing circumstances, because productivity is affected positively or negatively by many different factors. There are two primary objectives; one to collect information about today’s status, but also to learn what are considered to be the more important issues. Maybe even some that are not on the list. For instance, within any group of people familiar with operations there might be common consensus about particularly troublesome operations. Be sure that the subject is identified and discussed.

Or, which equipment is the most expensive, the one you would least like to replace? Refer also to reports and KPI’s to highlight issues.

Consider not only direct operations but also support, laboratory, testing, inspection, material handling, changeover, maintenance which delays product delivery. Very early on and continually remove any potential stigma from this analytical exercise. This exercise is merely to identify the fact, not to cast any blame at all.

During the body of today’s workshop, a knowledgeable representative of the client will provide responses to the questions raised. These responses to the as-is assessment, and the ramifications of the answers, can then be the focus of discussion.

This workshop will offer perspectives of the primary management concepts from which the program and the various processes are founded.

As the manufacturing productivity process is constructed around work measurement, the client is requested to suggest which internal department, existing or to be established, will perform work measurement activities.

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Month 2: Establish work measurement

The purpose of this workshop is to establish and institutionalize the fundamental concept of this entire program, namely work measurement. We will briefly define work measurement and list its benefits, but the main purpose will be to explain exactly what to do and how to so it, and to establish work measurement, including the qualified people to do it and the processes which they will use.

A rate quantifies the time for an average trained operator, working at good speed and effort, to perform a sequence of operations. Work measurement is a statistical process, and it requires training to be able to establish rates correctly. The processes for training practitioners will be defined.

The first step in the standard setting process is to remove all waste from the operations observed, and processes to remove waste will be the subject of workshop number 2.

The next rate-setting step is to observe the operation and determine the time which required to perform. Next, we will “read” the studies and convert the raw times into averages, for all of the work elements involved, add in non-cyclical elements and allowances for break, lunch and so forth to create a standard rate.

Rates must be filed and published, and the values given out to departments who used them in their reports and calculations. Rate maintenance, to assure that they are continually up to date, will be continually necessary. The rates will be applied, and actual output compared to expectations periodically, perhaps daily or weekly.

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Month 3: The Pareto Principle, and Remove Waste

Two primary subjects will be presented which are fundamental to good productivity. In each case they will be discussed, and specific processes illustrated for immediate and future use by the client.

The first subject is to reduce waste. The classic industrial engineering adage has always been to ”remove, don’t improve”. Since one Toyota Production Systems tenet is “remove waste”, this action has become much more visible and popular.

Another subject that is at the heart of improvement is the Pareto Principle. Vilfredo Pareto, a 19th century Neo-Classical economist, mathematically described the unequal distribution of wealth that he observed in the world around him. His observations, known as Pareto’s Principle, has been profitably extended into other fields of inquiry. In business Pareto’s Principle tells us that a few of the inventory items will constitute most of the value; a few processes will give most of the trouble; a few line items will generate most of the cost; a few constraints will control the entire pace of operations. Common terms used to define the principle are “ABC inventory”, or the “80-20 rule”.

Now, in this month we will practice Pareto, and waste removal, by reviewing the problematic existing processes and mechanisms which were found during the as-is evaluation. What were they, how important are they, can we contribute to a solution of the problems they raised by eliminating waste in the correct place?

After waste removal, what short term actions appear which may be used to correct the problems? The leader of this discussion will contribute suggestions as to which of the productivity tools will be particularly effective.

The immediate attention to problem areas in manufacturing will have two purposes. Attention will focus on significant problems, and several different processes will be demonstrated which can be used to plan, operate, control and evaluate manufacturing operations.

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Month 4: Productivity Constraints

The lead topic this session will be Productivity Constraints.

Productivity constraints are an aggravating concern. As soon as you identify the primary constraint, and solve it, there will be another primary constraint. Seemingly without end. Constraints can be of different character as well. Immediately you think of a machine as being a constraint, but it could also be of a different nature entirely. It could be for instance a material supply, where a vendor is unable to deliver, and an alternate vendor is not available.

A constraint might be a process for instance, a chemical or biological test that takes an extended period of time. A constraint might be change overs, for product or container size necessary to meet the production schedule for a given product mix.

Although a machine might be generally considered to be a constraint, the real problem may not be the machine but the fact that the manufacturers guidelines for preventive maintenance were not being followed so that the machine was operating less frequently than it was designed to.

A machine might obviously not be a constraint because it has a machine speed and index speed pretty high. and there are four of them. But when one man is assigned to operate the four machines, and because they are of simple design, they jam up a lot, at any given time the output is well less then the index speed.

Unfortunately, there is not a single test, nor form to fill out, that will identify what constraints are. It takes knowledgeable people, investigation and analysis to determine probable culprits.

This workshop will focus on any constraints for which an assessment was made, and any others suggested by attendees. We will define processes to identify, prioritize, and correct constraints.

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Month 5: Outcomes

The lead topic this session will be outcomes, not output.

Output is usually good, when producing widgets, gizmos. Production operators will produce what the schedule calls for, with what equipment is set up, using what materials are on hand.

However, for company results, outcome could well be a more desirable. result. So, in Manufacturing Productivity, 11 days we will talk output, this day we talk outcomes.

Output is product being shipped. Outcomes considers, as we manufacture our product, is it –

the right product; a result of new-product development and introduction process,

in the right quantity; a result of inventory, production planning, Just in Time or Just in Case, batch size, processes,

of the right quality, a result of a quality control process with an appropriate level for the product in the marketplace,

at the right time in the right location; a result of plant loading,

with the right features and priced right; a result of product design,

made with appropriate modern equipment and technology, or a result of planning and engineering or a result of inherited processes?

As we discuss these topics, the purpose will be to understand how the client manages certain specific processes which influence manufacturing. The discussion will likely lead to more comprehensive solutions in workshops yet to come.

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Month 6: Improve the workstation

The lead topic this session will improve the workstation, where the rubber meets the road.

The earliest recorded interest in scientific management, by Frederick Taylor, was in the late 1800s. The most recent interest in scientific management is going on today. Very early and still today, the workplace itself has been the focus of much attention.

We will explain and evaluate popular and less well-known processes to improve the workplace. The earlier workshop on Constraints will have addressed productivity issues unique to mechanical workstations, so this will focus on less automated production.

Not all improvement processes or created equal. Certainly not all improvement processes are applicable to any given problem. This workshop will identify many tools to insert into the client’s tool belt. so that it will be possible to pull out and utilize the correct one for a particular circumstance.

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Month 7: Reporting, and work measurement rates in production systems

This workshop will have two primary topics.

A lead topic this session will be reporting, making information useful to the people who receive it, from floor supervision through staff functions and management.

A useful report will contain reliable numbers but not just in a vacuum; a number should be accompanied by expected results for example. That’s true for other values on a report; reject rate, employee efficiency or productivity, schedule attainment.

For production employees a very valuable value is the production number that they actually produced. The best way to reference that number is as a percentage. And for attainment the magic, expected number is 100%. Different functions and management levels need different results reported, which should lead to tailored reports.

The production floor supervisor must not be overlooked in this process. A supervisor needs to know information that tells how the employees are performing, what the production was, and of any quality problems. Not only actual but also in comparison to what was expected.

A second topic is, utilize work measurement data in operational control.

Traditionally the most value of work measurement is to the operating department whether it be manufacturing, construction, warehousing or another sector. Such techniques and processes will be discussed, and processes demonstrated.

The production department will also find it useful to apply rates to plan capacity, initiate acquisition of needed equipment; calculate actual labor efficiency, (Performance while working), productivity (performance over the entire shift); and equipment utilization.

Operations will be able to quantify output expectations for direct labor; identify and manage constraints; determine crew sizes, balance lines; resolve contested workloads.

Both the maintenance department and the warehouse employ a number of people who are engaged in activities which are repetitive. Repetitive work of any type is receptive to productivity improvement.

Financial departments will find information generated for manufacturing very useful to quantify the labor element of standard cost systems, to administer pay for output plans, conduct usage variance analysis, set overhead allocation (labor portion of quality, maintenance, material handling departments).

Materials management can use the expected hours per task to establish reasonable timing for scheduling production output, estimate cycle times, to calculate changeover cost versus inventory cost carrying costs.

Management strategy, for existing and potential strategy, can be more accurate and objective: Build in the USA? Make / Buy / Vertical integration; justify technology or equipment or automation, calculate equipment utilization. Product pruning, to identify products with low profit margin.

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Month 8: Batch size and changeover

The lead topic this session will be batch size and changeover.

Three departments are usually involved in batch size and changeover, and a fourth keeps score and waves the go flag when it is justified. Now, all four departments (production, materials management, maintenance, and quality) are involved in changeovers in two ways; one their people are involved in actual tasks, and secondly some policies and procedures of each department have a bearing on frequency and duration of the changeover itself. The results of the changeover however show up in the reports of only one department namely production.

A materials management department may establish the batch size itself, perhaps from market demand. A constraint in the process such as kettle size, or line speed, or number of people available, or a sterilizer load may set batch size.

Manufacturing does not like changeovers because they interrupt the flow of the product. Operators will just have gotten used to that particular product and its characteristics and the line will be cruising along. Then they’ll have to change. The line may perform its own changeover for instance a label change. Maintenance may be involved in the change if there are size issues, or if the physical characteristics of the line have to be changed.

A product change may involve several time-consuming steps. There are actions possible to mitigate machine changeovers for instance spare machine parts, clean and ready for use.

Paperwork relating to a batch or lot is also involved in changeover, possibly in a major way in a pharmaceutical, or food or beverage, operation.

This workshop session will involve discussions of all of these factors. Batch size determination, frequency, timing and actions will be discussed, and processes demonstrated to quantify and reduce costs. Techniques to expedite change will be defined.

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Month 9: Cost Reduction – A Vital Practice in any Economy

Vital, but not always easy. This workshop offers specific ideas on cost reduction; what, where how; for manufacturing, warehousing, industry.

Platitudes and buzzwords alone won’t do the job. Successful cost reduction requires a hands-on approach, to select and prioritize targets, find and effect solutions (literally a line-by-line analysis), consider options, define and implement solutions, measure and brag about results. Your business is unique, but these insights are often useful:

Find and manage constraints, bottlenecks, delays; that extend the cycle time of any activity.

Quantify expectations, measure performance, ask for accountability.

Cherry pick on the floor; look for delay, workload imbalance, high scrap.
Target issues which are relatively easy to find and correct.

Cherry pick at the management level, non-value-added activity, inventory policy that causes changeover or out-of-stock. Match throughput to customer demand, match facilities and workforce to customer demand. Do your internal operating practices or paperwork interfere? Is the quality expectation appropriate, because rocket ships need tighter controls than thumbtacks? Some of these opportunities are not difficult to implement, once they get the attention they deserve.

There is a practice called product pruning. A company decides annually which if any products should be eliminated, based on cost versus income. That is not as simple as it sounds because it requires an accurate knowledge of real costs and net sales prices. Many times, there are individual products crying out for pruning but still in the sales catalogue.

This session will be primarily about ideas for cost reduction. The processes are necessary, but they are pretty simple. What was the unit cost before? What will be the unit cost afterwards? Multiplied the reduction by the volume and that’s the answer.

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Month 10: Management planning and control processes

The lead topic this session will be modern management planning and control processes, and the golden oldies, and the inherent conflicts between some processes.

It has it has been a long time since Frederick Taylor started Scientific Management in the late 19th century. He was one of very few who was considering productivity in any sense at that time. In the 21st century there seems to be no end of the people, and qualified people, with proven processes, who contribute to productivity in all endeavors. Including of course Appleton Greene and this program.

In this session we will consider literally dozens of modern, and time-tested, processes; some with wide ranging goals and some with narrowly targeted objectives. Some are proprietary, some are so well known that we quote their tenets offhand.

The Toyota Production System, or TPS, is one of the most well-known tools recently but even it is some 70 years old at this point. It is perhaps best known for JIT, Just in Time inventory system. But, as expressed by Executive Vice President Taiichi Ohno, “The most important objective of the Toyota System has been to increase production efficiency by consistently and thoroughly eliminating waste. This concept and the equally important respect for humanity … are the foundations of the Toyota production system.” Great ideas, Frank Gilbreth thought so when he wrote about them in 1916.

This entire program follows the practice to select perceptive elements or tools, rather than entire systems. A selected portion is more apt to contain pertinent elements for your situation than an entire system.

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Month 11: Plant layout, flow, space utilization

Arrangement of people, of materials and equipment, is at the very heart of business productivity; in an organization of any size; engaged in just about any endeavor.

This activity usually goes by the name of layout or facility planning but it includes aspects which are not the same for all operations in the facility. For instance, within production, a primary objective may be to create a short, well-defined flow of materials. In warehousing, flow is important too, but a primary consideration may be “cube utilization”, or the effectiveness which with the volume of the building contains the contents.

Major layouts are often infrequent events, but minor layouts can occur much more frequently. Both frequencies involve a number of processes that simplify, standardize, and optimize the resulting layouts. This workshop will address those processes for immediate and future use. Layout and facility planning can: relieve a jam-packed facility; allow more output with today’s product mix; add output and capacity, facilitate introduction of new products or technology; rearrange to cut through a wasteful “spaghetti” flow; provide area to re-shore production.

Variables in a layout can include the activity involved, the geometry of the facility, equipment, and products; even constraints management, batch sizes and inventory policy. A good layout will provide some open space to facilitate short-term change, and general paths for future expansion.

A key is to maintain output during rearrangement, so a resolution should create both short and long-term activities. Target problems by applying layout technique, then perform moves in a checkerboard sequence, one step at a time.

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Month 12: Results Review

The topic this session will be review, of subjects and action assignments throughout the twelve-month series.

The client is requested to have an individuals speak, please, for a functional area, in regard to activities during the twelve months program period. The presentations can include successes, failures, value, intangible benefits and costs, the next step, or other related aspect.

A representative of the organization which has the primary responsibility for performing work measurement activities. That person is requested to speak on the current status of that function, and how it has progressed over the period, and short-term plans.

A financial representative is requested to speak about the status of updated labor rates and standards, and the extent to which they have been built into reporting and financial calculations, and Key Performance Indicators. Are there significant financial findings or revelations from the period? Is there consideration of a pay-for-work plan?

A manufacturing representative is requested to speak about updated labor rates as they are being applied in manufacturing, and the effect which they have had on output, planning, and control.

Other functions may be invited to speak as the client chooses.

The leader will comment on two areas. One will regard impressions of the status of work measurement, its application within the client organization, successes and disappointments. The second comment will be to suggest programs or processes which would be useful to the client, having spent 12 months with the client staff and issues.

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Methodology

Manufacturing Productivity

Program Planning

There are many facets to manufacturing productivity, and many circumstances which test the capability of management to optimize productivity.

Just as there are many facets to manufacturing productivity, there are likewise many very successful processes which have been developed historically and recently, with a proven capability to deal with the myriad of complexities. This program will present a selection of these processes.

Productivity is designed as output divided by input, so any act which increases output or reduces input will increase productivity. And any department whether direct or indirect can contribute.

An assessment of as-is circumstances will profile the status of existing factors which affect production costs and potentials, and direct attention to specific needs, issues and processes in the client facility. “Productivity” can relate to any element of activity, labor, materials, equipment, facilities, services.

The program will then use the assessment to suggest specific issues to address, processes to utilize. Removal of waste from activity is a basic step, so an early workshop will initiate that process, as well as the practice to consider the most important concerns first.

We will move through a series off subjects, tools and processes which have a proven history of success. Emphasis will be placed on the results of the assessment, to prioritize actions and processes which are especially relevant.

Usually, the most important factors in production are perceived to be labor or equipment. Labor is often a good starting point, for two reasons: 1) Labor has a cost of its own, and 2) even if labor cost is not a large percentage, the major function of labor is to operate equipment and processes efficiently and to optimize their capability. The program will concentrate on improving labor and equipment productivity.

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Program Development

Production areas, or a maintenance shop or a warehouse, are dynamic environments. A common characteristic is sense of urgency, which means that if a specified mechanism is not available for some reason, then another way will be chosen so that work goes on. These one-time occurrences may, in total, change factors of the work environment.

This program centers on the manufacturing floor, or shop, or the shipping warehouse; and addresses elements which contribute to productivity.
Work measurement, whether a formal system or otherwise, is a primary tool to measure labor cost and equipment activity. Work measurement processes are well established. After all, arguably the most important question in manufacturing is, “how long does the job take?”

This program has been developed with work measurement at the center. Work measurement will, in itself, reduce manufacturing cost compared to non-measured rates, past performance, rates which use earlier equipment and methods, or estimates.

Multiple planning and reporting systems depend on labor content, in finance, materials, hiring, forecasting, capacity. Key Performance Indicators often contain a labor content. Obviously, accuracy in the labor standard procedures is vital.

Techniques which are used in work measurement, especially the watch and direct observation of an operation are also the preferred methods to evaluate other productivity processes. Workshop two will present work measurement history and practices to the attendees, as well as detail which will serve as a foundation of training for practitioners. The workshop presentation contains guidance for later administrative aspects of work measurement.

Formal work measurement includes removing waste activity, engineering methods, for current equipment and products and specs.

Formal work measurement, as the client prefers,

a) Can become an incentive, more pay for more output.

b) Can be “Reasonable Expectations”, a formal system to quantify and communicate expectations for people and processes. There is no tie of pay to output. Published reports will itemize actual results by operator.

c) Can be “measured day work”. There is no tie of pay to output. No reporting is performed, or expectations enforced.

Each has pros and cons.

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Program Implementation

Suggested attendees for the workshops:
Productivity is composed of practices throughout an organization. The multiple levels of the organization chart, and most if not all functional departments, can contribute.

This program, Manufacturing Productivity, is arranged to present instruction to different functions in the organization, to spread the practice of productivity widely.

Each workshop is intended for about ten attendees, chosen for their knowledge, guidance, responsibility, and strategy acumen. For a manufacturing plant, job titles could be such as Plant Manager, Director of Operations, Director of Manufacturing, Director of Materials, Director of HR, Director of Finance, Manufacturing Manager, Manager of Engineering / Maintenance, Manager of IE / Manufacturing Engineering . Process Engineering, Manager of Cost Accounting. The titles relate to a typical organization of a manufacturing plant, and the client organization or titles may be different.

The following workshop schedule is planned:

Workshop 1: Baseline assessment of the as-is situation.

The client will have received in advance a list of as-is assessment questions, and may well suggest others. The questions address a wide variety of manufacturing circumstances, because productivity is affected positively or negatively by many different factors. There are two primary objectives; one to collect information about today’s status, but also to learn what are considered to be the more important issues. Maybe even some that are not on a standard list. During the body of the workshop, the answers to the as-is assessment, and the ramifications of the answers, will be the focus of discussion, as they relate to primary management concepts within the workshops.

As the manufacturing productivity process is constructed around work measurement, the client is requested to suggest which internal department, existing or to be established, will handle work measurement.

Workshop 2: Establish or modify work measurement within the organization. A full exploration is presented, of purposes, processes, mechanisms and tools to be used in developing objective work measurement. This workshop will allow the attendees to understand work measurement and its critical place in productivity improvement; to experience some of the challenges and unique applications. It also provides the curriculum for subsequent detailed instruction of the practitioners, as they measure work, maintain accurate records, and apply results.

Workshop 3: Reduce waste, and the Pareto Principle

Reduce waste

Just what is waste? A March 2009 “Business Week” article presents this test:

Will a customer pay for this activity?

Will my service fail without this activity?

Will I go to jail if I eliminate this activity?

Answer “no” to all three, and the activity can essentially be defined as waste. Sounds good.

Pareto Principle, 20% of the elements will constitute 80% of the cost, or problems, or time. Let’s work on the most important opportunities.

Workshop 4: Productivity Constraints

Consider factors and equipment which limit client output and / or productivity. Suggest processes to identify and manage constraints. Specify frequent constraints to productivity, across the organization, and suggest improvements.

Workshop 5: Achieve outcomes, not just output.

• right product; new product development and introduction.
• in the right quantity; inventory, JIT, batch size.
• of the right quality; for the product, theory and practices through out an organization.
• at the right time in the right location; site search, plant loading, relocate, consolidate, modernize
• Appropriate metrics to evaluate manufacturing performance.

Workshop 6: Improve the workstation

Processes to improve the workplace, especially less-automated production workstations, but also the workstations in non-production groups such as materials handling, quality, maintenance.

Workshop 7: Floor reporting, scorekeeping, using production rates to set schedules.

The lead topic this session will be production department reporting currently in use; shortcomings, usefulness to management, to floor supervisors, and its timeliness. Improve the extent to which reports inform direct supervision. A second topic identifies particular work measurement data, which may be used, for accuracy and objectivity, to establish direct labor requirements current and future, such as production schedules, capacity, cycle times, effect of product mix.

Workshop 8: Changeover and interruptions to production

This workshop will focus on interruption to production, on practices and performance not only there but also within maintenance, materials management, and the quality departments. These support groups contribute to manufacturing productivity, by the ways in which they conduct their own activities. How to analyze and improve changeovers, and the processes available to assist.

Workshop 9: Product cost reduction; overhead cost reduction, profit improvement.

Remember the Pareto Principle. Institute formal Cost Reduction or Profit Improvement. Processes are available to assist, and many practical avenues are explored for cost reduction.

Workshop 10: Modern management planning and control processes, and the golden oldies.

Topics for discussion; useful modern and classic processes to optimize, the capabilities and limitations and particular areas of usefulness.

Workshop 11: Facility Planning and Plant Layout.

Arrangement of people, of materials and equipment, is at the very heart of productivity. Location and capability of operations, or Facilities Planning, sets the stage for productivity. It, and Plant Layout especially major layout are not necessary every day. But there are processes to perform major or minor projects correctly and these will be presented for the time that they are useful.

Workshop 12: Results and achievements from previous workshops. Further development of selected topics.

Summarize client action, short term and long term, and results to date. Plan the future.

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