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Started by : Sanjit Biswas, Sales/BD Manager, Larsen & Toubro   04 15 2009 07:41:31 +0000
Industry : Industrial Products/Heavy MachineryFunctional Area : Business Processes(Operations)
Activity:  88 views;  last activity : 07 06 2010 20:18:09 +0000

Measuring and analyzing the productivity of manufacturing facilities have been studied for several decades.The traditional metrics for measuring productivity are throughput and utilization rate, which only measure part of the performance of manufacturing equipment. They are not very helpful for identifying the problems and underlying improvements needed to increase productivity.

There are a number of different methods and systems to help analyze efficiency and work.Than,in measuring Manufacturing Productivity, what do you consider and what do you leave out ....

 
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1 2 3 4 5
1 Overall equipment effectiveness(OEE)
2 Scheduled time
3 MODAPTS
4 Value Added method
5 Value Added Method

Overall equipment effectiveness(OEE)

idea posted by Sanjit Biswas Sales/BD Manager, Larsen & Toubro

I found that there are many opinions and each has a defense. I have always guided clients, that have not already established a method, to follow a general OEE guideline. The benefit of the program is comparison over time, not a moment in time picture.The concept of OEE is becoming increasingly popular and has been widely used as a quantitative tool essential for measurement of productivity in semiconductor manufacturing operations, because of an extreme capacity constrained manufacturing environment and an increasing concern about return on capital facility investment.

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by Mohit Aggarwal, Sales/BD Manager, Oracle  | 04 15 2009 10:35:16 +0000

Hey Sanjit!

I do find OEE a good way to measure quality of process, efficiency of equipment and utilization in one figure which sums up everything you want to achieve in running highly automated equipment.

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Scheduled time

idea posted by Isha Verma Sales/BD Manager, Larsen & Toubro

I would prefer scheduled time as that works very straightforward, especially if your production workers are keeping track of their *actual* working hours excluding breaks and such but including any overtime. However take into account that this leads to relatively high productivity "scores" since you would be including start up, conversion (e.g. converting a line to switch between 2 products) and clean up time in the productive time. This sometimes leads to a false sense of achievement and one should always keep in mind that reducing those 3 times can help a great deal in improving productivity in its strictest sense.

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I will support you but Generally, we should consider all time, from setup time to end time, including lunch breaks, etc. Breaks are part of hours which are paid for.
In different industries it might be considered differently. In process industry, where plant is running continuously, there is no break in production, you need to consider throughput, for a complete cycle, between two setups.

In manual labor work, where wages are paid on piece rate basis, you need not consider breaks.

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MODAPTS

idea posted by Vinit Gupta Sales/BD Manager, Larsen & Toubro

In my point of view, MODAPTS is one of the systems that utilizes software to analyze data collected on the shop floor, to determine theoretical process times.

MODAPTS is a third generation predetermined time system used for:

Calculating reliable production standards,
Improving an organization's productivity,
Analyzing departmental efficiency, and
Improving employee relations.
The name MODAPTS is derived from "MODular Arrangement of Predetermined Time Standards." MODAPTS can be used manually or with the aid of a desktop computer.

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by Puneet Maurya, Project Lead, Aftek  | 04 24 2009 10:56:59 +0000

Yes Ray I agree with you that MODAPTS is eay to learn.The average supervisor can easily learn MODAPTS and how to calculate standards and the average employee can understand MODAPTS and apply in the organization.

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by Mrigena Ray, Sales/BD Manager, IBM  | 04 15 2009 10:42:11 +0000

Yes Vinit I do agree with you because from MODAPTS we can expect an immediate improvement in our operational productivity, because MODAPTS is "solutions" oriented. All motions required of a person to complete a task are recorded and analyzed for methods improvement. MODAPTS is unusually sensitive to improving methods because of its unique coding system.
As MODAPTS is so easy to learn and apply, analysts spend significantly less time developing standards.

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Value Added method

idea posted by Vinit Gupta Sales/BD Manager, Larsen & Toubro

I prefer the “Value Added “ method which measures the wealth created by a company through manufacturing. It is equal to the income from sales of the product less the expenditure on purchased materials and services. In short, Value Added measures the net output rather than the gross output of the business enterprise. An analysis of the Value Added can be used to assess the manufacturing efficiency of the company.

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Value Added Method

idea posted by milind r. nadgouda Project Manager, mazagon dock ltd

Value added includes -ve values asssociated. This is the sumtotal of all the other measures preceeding and hence I consider COMPLETE

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