Production

Production is the act or process of producing something .

Apparel production system is an integration of materials handling , production processes , personnel and equipment that directs work flow and generates finished products .

Three physical elements which are present in every production process :

Materials – Raw material which is being processed

. Machines – The processing equipment. Men – The men executing the process.

• Order received

• Sample review

• Production planning

• Raw material order

• Raw material inhouse

• Marker setting

• Cutting

• Sewing

• Processing • Finishing

• Final inspection

• Packing

Work of production deptt Planning Manufacturing Service Control

Work of production deptt Service functions : Production engineering o Staff function o Line function Personnel and training Machinery and equipment maintenance Technical storesControl functions : Production planning and control Budgetary control Quality control

Productivity

• “Measure of performance towards an established goal, based on relationship between inputs and outputs.”

• “The ratio of output produced to the input resources utilised in the production.”

• “The ratio of output to some or all of the resources used to produce the output.”

• Output is the expected outcome.

• Input may be any of the variables that go into the operation of a firm– land, material, machines and men.

• Productivity is an indicator of the whether a firm is performing as expected.

• Productivity may be determined for a plant, machine or individual, but individuals goals must support goals of the firm.

Basic objectives behind productivity measurement

1. To study the performance of a system over time .

2. To attain a relative comparison of different systems for a given level .

3. To compare the actual productivity of a system with its planned productivity .

Total Productivity is the ratio of the total output to the sum of all input factors .

A total productivity measure reflects the joint impact of all inputs in producing the output .

Advantages : Since it considers all the quantifiable output and

input factors; therfore it is more accurate representation of the real economic picture of the enterprise.

Disadvantages : It does not pinpoint the real cause of decline in

growth .We cannot specify which particular inputs – workers , material , capital , energy etc are being utilized inefficiently so that corrective actions can be taken

Partial productivity is the ratio of the total output to any single input.

• Below are the measures of partial productivity: Labor productivity = units produced /hours worked ,

expressed in output per man hour. Capital productivity = output/capital input Material productivity = output/materials input• Advantages : Partial productivity measures are easy to understand and

use . It is a good diagnostic tool for pinpointing improvement

areas .• Disadvantages : If used alone it can be misleading and may lead to costly

mistakes . Partial measures cannot be used to explain overall cost

increases .

• Labor productivity = units produced / hours worked

• Capital productivity = Output / capital input • Material productivity = Output / materials input

• For our area of study , measurement of productivity in terms of labor productivity is most significant .

Labor productivity

• Direct labor: ones who work directly on the styles being manufactured (line supervisors, operators)

• Indirect labor: workers in the manufacturing area who do not work on the product but are essential to production process (material handlers, repair and maintenance technicians, security people )

Labor

Direct Indirect

Labor productivity Direct labor cost is the key measurement of

productivity.

Evaluation of labor productivity It is based on :1. Number of units produced per labor hour2. Value of finished goods per labor hour

Source of data for evaluating labor productivity Daily time sheet for each operator which reports:1. Style#2. Quantity produced during the working day3. Minutes worked on production standard4. Minutes worked on off production standard

Factors contributing to productivity improvement

• Two issues regarding raising productivity of labor and capital:

1. The time required to produce one unit of an output2. The difference between the actual input that has

gone into the production process and the required input as calculated from the data on actual output and the unit time

Reduction in ‘1’ involves factors related to the

design of the product or the process while reduction in ‘2’ involves removing operational inefficiencies.

Design aspects for raising productivity

a. Factors related to product design• Quality standards• Provision for use of high production machineries

wherever possible

b. Factors related to process design• Specifications of the operating conditions• Interactions among men and machines• Working methods of the operators

Productivity improvement√ Why inefficiencies???• Improper planning of work• Improper machine maintenance• Carelessness and negligence on part of the

operator

In abv cases, factors contributing to raising productivity:

1. Managerial efficiency2. Workers’ efficiency

Steps for productivity improvement

Initiate supervisor and manager training Strengthen Work measurement and methods

improvement . Set up operator selection and training procedures

. Introduce productivity measurement system.

Steps for productivity improvement cont ….

• Strengthen quality system.• Improve worker involvement and working

conditions.• Strategic technology upgradation .• Strengthen production planning , scheduling and

control .• Introduce incentive scheme.

Productivity in the individual enterprise

• Productivity in the individual enterprise may be affected by a series of external factors as well as number of deficiencies in its operations or internal factors .

External factors are : • Availability of raw materials and skilled labour • Government policies towards taxation and tariffs • existing infrastructure • capital availability and interest rates • Adjustment measures applied to the economy or

to certain sectors by the government . These external factors are beyond the control of

any one employer .

The input and output factors in an enterprise

• Output – is defined in terms of products or services rendered .

• In manufacturing concern , products are expressed in numbers , by value and by conformity to predetermined quality standards .

• In service enterprise such as public transport company or travel agency , the output is expressed in terms of the services rendered. In a transport company it may be the number of customers or tons of cargo per kilometer carried .

In a travel agency it could be value of tickets sole or average value of tickets per customer .

• What is lead time ? The time interval between the initiation and the

completion of a production process. In terms of a supply chain, the total time needed

for an order to be processed.

LEAD TIME

Factors determining the lead time of a product • Styling • No. of parts in the product .• No. of different operations on each part .• Extend to which the processes are dependent ,

that is processes which cannot be performed until previous operations have been completed .

WIP – Work In Process

• Work in process consists of products that are in the process of being manufactured or fabricated but are not yet complete . Work in process consists of the cost of direct materials , direct labour , direct purchased services and indirect costs including general and administrative costs , used in producing an end item .

• Work in process or in-process inventory consists of the unfinished products in a production process. They are not yet complete but either being fabricated or waiting in a queue or storage. The concept is used in production and supply chain management.

• Production management aims to minimize work in process. Work in process requires storage space, represents capital investment and presents a risk of expiration of the goods. A queue to a production step shows that the step is probably under-capacity with respect to other steps.

Throughput time• Throughput is the volume of work that can be

completed in a specific amount of time . The time block may be hour , day or week .

• Throughput time is the amount of time it takes for a style to go through the production process , cutting to shipping .

• It includes actual processing time and the time a style waits to be processed ahead of each operation .

• It can be minutes , days or weeks .

Effect of WIP on the throughput time

• When WIP is more , throughput time increases due to back log ahead .

Capacity • Capacity – Is the maximum amount of work that

an organization is capable of completing in a given period of time .

How to determine capacity requirement ?

• Understand the work load • Determine the unit of work • Identify service levels for each workload .

• Capacity of a sewing line is commonly measured in terms of number of garments produced per shift , per hour or per month.

• But as garments do not have standardized work content , pcs per hour is not the correct representation of capacity .

• Capacity of one sewing operator is 60 minutes

per hour maximum .

Efficiency • It is primarily a measure of the effectiveness of

the manager and supervisor and as such is best applied to sections / departments / factories and not the individual operators .

• Efficiency = (SMV earned on standard / attended time ) x 100

• It is usually calculated for a line and not really relevant to the individual unless incentives are paid on efficiency and not performance .

• Efficiency or line utilization is calculated by “minutes produced” / “minutes attended” expressed as percentage.

• In sewing line of 20 operators a style of 20 SMV is produced in 8 hour shift . If the average daily production of the style is 400 pcs / shift then the line utilization or line efficiency can be calculated as under :

• Minutes utilized = SMV x pcs / shift = 20x400 • Minutes attended = number of operator X

number of minutes per shift = 20 x 480 = 9600 • So , the line utilization or line efficiency is 8000 x

100 / 9600 = 83.33%• This measure is also called as balance efficiency .

SAM or SMV• SAM – Standard Allowed Minutes • SMV – Standard minute Value

• SAM and SMV are considered to be the same . • SMV earned is the measure of work done by

operator . It is calculated from output from an operation generated in attended minutes and SMV of the operation.

• SMV earned = ( SMV x output in number of units )

• It is usually calculated for individuals as well as for a line .

• As it is needed for individuals for incentive payment calculation and performance and needed for lines for efficiency calculation .

• Also sometimes aggregated for departments and factories to get factory efficiency .

Lost time or lost output Reasons for time loss or output loss : • Poor balancing • No or improper feeding of the cut parts . • Non availability of accessories ( thread , zipper ,

cord etc ) • Shifting of operators resulting start up loss . • Machine breakdown • Loss due to repairs