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A B U S I N E S S S E N S E P U B L I C A T I O N
W W W . B U S I N E S S E N S E . I N
The Essentials - Production
Overview
Copyright of Hash Management Services LLP www.businessense.in
‘The Essentials’ series from Business Sense is an initiative to empower the professionals and students in performing more efficiently and effectively in the organization
This publication is aimed at bridging the gap between the institutions and the industry by providing the fundamentals of manufacturing management which are not offered by any of our institutions/curriculum
This course would immensely benefit professionals and students who are joining manufacturing organizations
At Business Sense, we help medium scale manufacturing units improve their operational efficiency through consulting engagements focusing on improving their Operations through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and other tools
We promise to double the productivity in less than 33 days of our effort
In addition, our web application would help the senior management in monitoring the important business updates every day and provide them analytics and enable them better decision making. Useful if your organization do not have an ERP
For more details, please visit www.businessense.in
You can subscribe to our bi-weekly newsletter here.
Follow us:
Contents
Copyright of Hash Management Services LLP www.businessense.in
Section 1 – Introduction and Basic Processes
Section 2 – Shop Floor Management
Section 3 – MIS Reports and Analyses Points
Introduction to Production Function
Copyright of Hash Management Services LLP www.businessense.in
Production is one of the most critical function in any manufacturing
organization. This function represents the set of activities through
which the product is made and delivered according to the client‟s
requirements.
Production function normally encompasses various departments/shops
based on the type of products and the operations involved (e.g. press
shop, machining, polishing, plating, assembly etc).
Introduction to Production Function
Copyright of Hash Management Services LLP www.businessense.in
The components move from each shop/machine to the other, once the
required operations are completed. (Sometimes the product would be
stationary and all the operations would be carried out on the product.
E.g. Ship building).
At each stage the component is added value (value addition) and
transforms to a finished product.
Value Addition at each stage
Organization Structure
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This is a standard organization structure* for
Production Function
Purchase Manager reports to the CEO of the
company
In a large organization, Production Manager
might report to Factory Manager /
Manufacturing Head
There can be a few Production Supervisors ( for
different lines / processes / shop floor)
reporting to the Production Manager
Each Production Supervisor would typically
focus on a single / specific processes or line
CEO
Production Manager
Production Supervisor
Production Supervisor
Production Supervisor
* A typical functional hierarchy is mentioned here. It may vary according to each organization.
Responsibilities of an Engineer in Production Department
Copyright of Hash Management Services LLP www.businessense.in
• Productivity - Ensuring a smooth production flow / dynamically monitoring the
production process through allocation of resources (Men/Machine/Materials) and
make necessary changes based on the requirements.
• Quality - Meeting the Quality requirements set by the customer and taking steps to
exceed them. Measuring and analyzing the current quality levels and taking
necessary steps to improve and achieve the required quality levels
• Cost – Minimizing cost (reducing reuse/defects, process
modifications/improvements)
• Delivery - Overall responsibility of delivering finished goods as per the customer‟s
requirements – Ensuring 100% on-time delivery
• Safety & Morale – Achieve 0% Accidents and Incidents(Near-miss). Improving
Morale of the personnel
P
M
S
D
C
Q
Process Flow - 1
Copyright of Hash Management Services LLP www.businessense.in
Production Plan created by the Production
Planning department / production manager is
sent to the production supervisors
Production supervisors plan for the day‟s
production based on the weekly / monthly
production plan
Production Process - 2
Copyright of Hash Management Services LLP www.businessense.in
Order-wise requirements of all materials
(calculated from the Bill of Materials
(BOM)) would be obtained from the
stores using Materials Issue Requisition
(MIR) slip
Once the materials are obtained they are
sent to the respective process/machines
for completion. The Supervisor also
creates a job card for each lot/item
which travels along with the product
throughout the entire processes.
Production Process - 3
Copyright of Hash Management Services LLP www.businessense.in
Quality is measured at each stage so
as to reduce reworks and rejections
At the end of the production process,
necessary quality checks are made
and the products are packed and
delivered to the customers.
Please note this is only the basic process. There may be delays / stoppages in production due to quality issues, non-availability of materials, absenteeism etc.
Contents
Copyright of Hash Management Services LLP www.businessense.in
Section 1 – Introduction and Basic Processes
Section 2 – Shop Floor Management
Section 3 – MIS Reports and Analyses Points
Daily Production Plan
Copyright of Hash Management Services LLP www.businessense.in
Monthly Production plan is broken down into Weekly and Daily
production plan for each shop/operation by the Production manager
and sent to the respective Production Supervisors
Production Supervisor should plan for one day‟s production in
advance. i.e. tomorrow‟s production plan should be planned today by
the individual supervisors (before office closing hours)
Daily Production Plan
Copyright of Hash Management Services LLP www.businessense.in
Once the Production supervisors obtain the daily production plan,
they should plan & allocate the resources ( men, machine and
materials) for the next day‟s production
Resources and work allocation should be carried out in the previous
day evening
Once the employees enter the shop floor, they should be able to pick up
the materials and start working. ( If the production plan happens in the
morning, the company loses around 20 minutes before employees are
allocated some job and start working)
Shop Floor Management
Copyright of Hash Management Services LLP www.businessense.in
Supervisor allocates the job to the right personnel and follows it so
that the production target for the day is achieved.
In case of any changes in the plan, he/she consults with the
Production manager immediately and make necessary changes in the
shop floor
He/she informs the employees and arranges materials accordingly
At the end of the day, Production status is reported to the Production
Manager and the plan for the next day is done
Shop Floor Management
Copyright of Hash Management Services LLP www.businessense.in
Lean Manufacturing
A set of Management practices originated in Japan, useful in eliminating
non-value added activities and improving the productivity in a faster and
efficient manner !
Lean Manufacturing
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A systematic approach to identifying and eliminating waste (non-
value-added activities) through continuous improvement by flowing
the product or service at the pull of the customer.
Doing more and more with less and less…
Lean Manufacturing - Terms
Copyright of Hash Management Services LLP www.businessense.in
Value Adding
Process:
A process step that transforms or shapes a product or service which is eventually sold to a customer.
Non-Value Adding Process (Waste):
Process steps that take time, resources, or space, but do not add value to the product or service.
7 wastes in Lean Manufacturing
Copyright of Hash Management Services LLP www.businessense.in
Waiting
Transportation
Over-Processing
Inventory Motion
Defects
Over-Production
7 Wastes
Waste no: 1 - Waiting
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Examples
•Idle time in which no value added activities take place • Person wait time • Machine wait time • Material wait time
Characteristics
•Person waiting for a machine •People watching machines run •Machine or materials waiting for a person •Lack of concern for equipment breakdowns or downtime •Long setup times •Unbalanced operations •Inconsistent work methods
Waste no: 2 - Transportation
Copyright of Hash Management Services LLP www.businessense.in
Examples
•Any unnecessary material movement that does not support the lean manufacturing system
•Conveyors •Forklifts •Transfer Carts •Movement between shops
Characteristics
•Multiple storage locations •Multiple movement of material •Poor facility layout •Return of materials not used in production
Waste no: 3 – Over-Processing
Copyright of Hash Management Services LLP www.businessense.in
Examples
•Effort which adds no value to a product or service • Work that can be combined with other processes • Enhancements that are transparent to the customer
•Multiple Tests •Parts Handling •Inspections
Characteristics
•Process bottlenecks •Lack of clear customer expectations •Lack of customer input concerning requirements •Redundant approvals •Extra copies and excessive information •Inefficient policies and procedures
Waste no: 4 – Inventory
Copyright of Hash Management Services LLP www.businessense.in
Examples
•Any unnecessary supplies or materials that do not support the „Just In Time Production System‟
•Material on site (WIP) •Strategic Buys
Characteristics
•Extra space on receiving docks •Build up of material between processes •Long lead times for engineering change •Long Supply Channels
Waste no: 5 – Motion
Copyright of Hash Management Services LLP www.businessense.in
Examples
•Any movement of people which does not add value to the product
Characteristics
•Looking for tools and parts •Excessive reaching or bending •Material too far apart (walk time) •Poor plant layout
Waste no: 6 – Defects
Copyright of Hash Management Services LLP www.businessense.in
Examples
•Repair of a product or service to fulfill customer requirements
•Warranty •Rework •Scrap
Characteristics
•Extra floor space, tools and equipment •Extra manpower to inspect, rework and repair •Additional inventory •Questionable quality •Lower profits due to scrap •Incapable processes with excessive variation •Inadequate tools or equipment
Waste no: 7 – Over-Production
Copyright of Hash Management Services LLP www.businessense.in
Examples
•Producing more than needed • „Work ahead‟ •Producing at a faster pace then needed
•Stock •Over build of capacity •Unbalanced production
Characteristics
•Inventory stockpiles •Extra or oversized equipment •Unbalanced material flow and confusion about priority •Extra parts storage racks and manpower •Build ahead of demand •Large lot sizes or batch processing
5S
Copyright of Hash Management Services LLP www.businessense.in
(Seiri) – Sort Distinguish between what is necessary and unnecessary items. Remove the unnecessary items
Seiton – Set in Order Enforce a place for everything and everything in its place
Seiso – Shine Clean up the workplace and look for ways to keep it clean
Seiketsu - Standardize Maintain and monitor adherence to the first 3‟S
Shitsuke – Sustain Follow the rules to keep the workplace 5S-right “Hold the gain.“
5S – a series of 5 words in Japanese language aimed at workplace organization
5S
Copyright of Hash Management Services LLP www.businessense.in
Five steps to the culture of keeping
the work place clean, organized,
systematic and safe
A foundation for all improvements
and lean journey
Every employee is engaged and
empowered.
Reveal the wastes and their causes in
the process not seen by observation.
To put it simply “Work Place
Organization”
End of Free Content
Copyright of Hash Management Services LLP www.businessense.in
Please visit our website www.businessense.in to access the full content through an interactive E-
Learning course
Our website also contains list of ready-to-use templates and report formats with Charts and pivot
tables.
Templates and report formats are available for Purchase, Stores, Production, Quality, Maintenance and
HR functions
These templates come in excel /word and can be downloaded and used right away
At Business Sense, we help medium scale manufacturing units improve their operational efficiency
Our app would help them in monitoring the important business updates every day and provide them
analytics and enable them better decision making
We also work with our clients on consulting engagements focusing on improving their Operations
through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and other tools
We promise to double the productivity in less than 33 days of our effort
You can subscribe to our bi-weekly newsletter here.
Follow us:
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