Need to plan production
During the evolutionary development of organizations, successive changes took place that accompanied social, economic, cultural and technical-scientific changes, with business management.
From self-sufficiency, through handicrafts, barter, industrial production, mass production, etc. etc. Until arriving at the current situation in which all professional techniques are put into play to achieve high competitiveness in an increasingly demanding market, we are witnessing a constant evolution of business management methods and, among them, those of the production.
It is no longer possible to define, from the price-quality-service equation, a single attribute to have a commercial chance, it is necessary to address the entire equation and add new attributes such as utility and positioning.
This situation forces us to achieve a high level of efficiency, considering the production sector as a constitutive element of the "Company" system that must be addressed in its entirety.
Organizational Chart and Chronological Management Network
The organization chart of the company graphically represents the functional structure, mainly highlighting: a) the sectoral division b) the functional chain of dependencies and c) the departmental composition of each sector.
We consider together with the organization chart the Chronological Management Network that also represents, graphically, the correlative summation of the management value-added stages and will allow us to visualize the transformation process from the entry of the raw material to the output of the final product and the subsequent administrative-commercial process that culminates with billing, dispatch and collection.
All this process must necessarily be aligned with the general structure of the company, its policies, objectives and goals, to achieve the efficiency that makes us a competitive company and allows us to grow and develop.
Returning to the organization chart, we observe that we can read in it, first, in how many and which gravitant sectors the integral management of the company is divided or separated; then, the tissue of dependencies, showing us with whom we have the closest relationships without preventing us from maintaining the necessary horizontal or transversal relationships that facilitate the flow of complementary information and, finally, who makes up each work team, or productive unit, which concludes in a stage of adding value to the transformation process.
Not always, the organization chart defines the hierarchical level of each of the components. Being higher or lower in the graphic structure does not define, in a linear way, the hierarchy of the departments. The position depends, fundamentally, on the need to clarify the graph. However, globally, it is assumed that the highest positions correspond to the highest hierarchy within the structure.
At the same time, we mention the Chronological Management Network as a graphic representation that shows us the different stages of adding value in our transformation process, covering not only production but all the activities of the company.
When graphing the RCG we can define, strictly, which are the stages that really add value to the management, discarding all those that, by uses and customs or by historical aggregation, have been installed in the activity of the company without producing profit any.
It also enables us to define the jobs that are required to meet these stages and the number of people we need to meet the objectives of each of the jobs.
Labor Branch
From the beginning of the economic-productive activities, a natural subdivision of the work was operated based, in practice, on the specialization of each participant of the organization.
The specialization was given by the different abilities and the different preferences and desires of the people, forming a group of specialists that defined a de facto subdivision.
It was Adam Smith who in 1976 wrote his work The Wealth of Nations in which he deals with the subject and deploys a critique of the economic theories of mercantilism, linked to the colonial empires while the practices of the Industrial Revolution were nascent.
He precisely proposes, in this work, that the key to social welfare is linked to economic growth and verifies that the extension of markets tends to specialization.
Production Models
The production models, as well as business management models, have always been linked to social, political, economic, scientific, artistic, to the life of societies.
Primitive man began working with his hands until, one fine day, he made the tools that helped him to obtain his production, later he invented the machines that he helped to produce them. In the meantime, artisans were trained with individual activity, self-employed workers who, over time, led to the formation of companies or corporations, generally owners of the machines and with the government of the business, who hired people to work and produce in scale.
In a scenario of great economic growth and, as a consequence of the civil war, in the face of an insufficient supply of labor, the need to make the greatest and best use of the scarce man-hours available is evident. Frederick W. Taylor.
In these circumstances, the American Mechanical Engineer and Economist, Frederick W. Taylor (1856-1915), promoter of the Scientific Organization of Labor, based on scientifically determining the “Standard work”, breaks in, creating a true mental revolution, after analytical studies on the times. of execution of the work and the pertinent remunerations.
The essential characteristics of Taylorism consisted of:
- Study of times and movements, identifying, measuring and eliminating dead times and unproductive and useless movements The standardization of the elements in play to carry out the work, raw materials, supplies, tools and machines Standardization of the tasks, implementing a single and a better way of doing things Social and technical division of work that separated planning tasks from execution tasks and, in parallel, the differentiation of the various execution tasks, leading to the functional structure of companies made up of Sectors, Departments, Managements, etc. Professional selection of staff based on the definition of the job profile and a recruitment adjusted to the specific need Assignment of specific tasks to each worker,limited to their work capabilities Specialized technical and / or professional training of an operational nature and limited to the few tasks that had to be carried out continuously Control and supervision of the worker by non-productive supervisors Daily monitoring of the results of the work of each operator on the basis of which the remuneration was set. Remuneration system linked to performance based on the calculation of the “average worker”.Compensation system linked to performance based on the calculation of the “average worker”.Compensation system linked to performance based on the calculation of the “average worker”.
The results of the application of the Taylorist model produced a change in the mental model, not only for work but also for the management of companies. Henry Ford.
The prosperous times continued with high economic and commercial activity that were attended with the improvement of the production times achieved by Taylorism. However, the business activity faced the difficulty that the high productions compromised a huge working capital that made it impossible to bear due to the economic cycles of the business.
It was essential to shorten the time between the purchase of raw materials and supplies and the time of delivery and collection of products.
Henry Ford (1863 - 1947) founder of the company that bears his name, was inspired by the meat packing industry which, due to the perishable nature of its product, did not tolerate a long time between the slaughter of animals and the dispatch to market and consumption, and incorporated the serial production system supported by conveyor belts that advance incessantly, making each operator have to carry out their stage of adding value in a rigid time frame.
The notable features of Fordism consisted of:
- Increase in productivity with long series and homogeneous products Salary remuneration based on productivity and time spent in the company Collective salary negotiation with company management Vertical integration of production Increase in programmed production volume based on of historical sales statistics, instead of responding to demand Permanent stocks of raw materials and inputs to ensure the operation of the production line Strict limitation to innovations on products and processes due to the limited flexibility of the machinery in game.
It can be affirmed that the articulation of Taylorism and Fordism constituted a mode of business organization, the treatment of wages, production and processes that, due to their rigidity, had serious difficulties to adapt to a market with increasingly varied demand.
The later stages of production models incorporated the humanization of production, the diversification of products, the flexibility of demand, technological innovation, and quality requirements, taking the evolution of the models for granted.
Results measurement
To measure management results, we must define the tasks that make up the operating cycle:
Production: is the specific performance of an operation (machining, heat treatment, packaging, etc.).
Storage: deposit the materials, supplies, products, in a certain place waiting for a new step in the cycle.
Inspection: verification of compliance with the characteristics and requirements of the inspected product.
Transportation: transfer of any item from one site to another.
Preparation: setting up a machine or equipment to start or continue a process.
Each of these tasks implies a completion time that must be evaluated to establish the cycle time of the process.
Total cycle time: the total cycle time of a product is the number of minutes that a linked process demands from the input of the raw material to the output of the finished and conditioned final product that passes its dispatch.
Operational time: is the time it takes to carry out each transformation task (does not include equipment preparation, waiting or inspections).
Cycle operating time: it is the sum of the operating times of each task without considering preparation, waiting or inspection.
Dead times: these are non-productive times such as waiting, inspections, preparation or unwanted stops.
So:
Ttc = Top + Tm
Where
T tc = total cycle time
T op = operating time
T m = dead time
The indicators that are commonly established for the measurement of productive results are the following:
Production: number of units produced (NUP) per cycle, shift, day. (statistical and taken as standard)
Productivity: total number of units produced in the unit of total cycle time. (actual at the time of data collection)
P t = NUP
T tc
Operational Productivity: number of units produced in the operating time of the cycle.
P op = NUO
T op
Total cycle efficiency: is the ratio between total productivity and production adopted as standard
E t% = P tx 100
P
Cycle operational efficiency: it is the relationship between actual operational productivity and the standard operational one adopted as a reference.
E op% = P op x 100
P op st.
Use of machines: relationship between operating time and total cycle time.
MU% = T op x 100
T tc
Methodology to generate proposals
There are various management quality tools that are used to generate proposals, analyzing the problems that hinder the achievement of objectives.
A methodology spread throughout the world is the QFD (Quality Function Deployment) designed in the Japanese shipyards of Cobe and extremely practical for the generation of continuous improvement proposals.
It has a logical operation that begins with the "Analysis of Customer Requirements" by using the "Affinity Diagram", or data capture on interest groups.
Then look at the technical characteristics of the product and the required technical characteristics.
Later it analyzes the technical characteristics with the associated manufactures.
It continues to break down the associated manufactures of the quality controls to proceed to the analysis of the quality controls with the statistical processes.
Finally, it re-enters from the statistical processes, again, due to the requirements of the client who, finally, is the focus and objective of the work to achieve the satisfaction of their expectations beyond their needs.
For the deployment of this analysis, the "Quality Management Tools" bag is used. Affinity Diagram, Pareto Diagram, Fishbone Diagram, Tree Diagram and Matrix Diagram.
In this way, it is possible to detect which are the problems and obstacles that prevent the achievement of the planned objectives, what are their causes, what measures we must implement to solve them and who must apply them, closing the circle of proposals and corrective activities of deviations.
MRP (Material Requirement Plan)
It is a system focused on solving the needs and requirements of materials in order to keep the plant continuously running without suffering stoppages caused by the lack of inputs.
Currently there are various computer programs on the market that meet the needs of material requirements.
For the proper functioning of these computer systems, one must start from three unavoidable premises:
- Knowledge and load in the system of the structures of each of the products, considering the raw materials, the commercial products, the specific manufacturing inputs for each product, the sub-assemblies, the constituent assemblies of the product and the composition of the final product.Clear description of each of the components mentioned in point (a) with its planimetry, description and coding. Initial inventory of products in stock, in preparation and finished.
With these three requirements, the production schedules of a period (day, month, year) can be loaded into the system and the netted inventory requirement and the issuance of purchase orders for all the elements that are not counted can be obtained. with sufficient stock in the plant.
Kanbam card
Generally, MRP systems are complemented with Kanbam cards to achieve greater consistency in the objective of having the necessary elements in the required place and time.
Just as Henry Ford was inspired by refrigerators to design his mass production method, the Japanese were inspired by American supermarkets to create this control card.
They saw that the gondolas had a limited amount of products on their shelves and, as they were consumed, they were systematically replaced by warehouse employees.
The same technique that in the supermarket was used, initially, in the application of Kanbam, which, as it was perfected, information was added indicating what tasks should be done on that piece, what was the destination following that stage of tasks, data on quantities to be produced, produced, remaining, withdrawn from the place, name of operator, etc.
The function of the Kanbam card is to be a "Work Order" that accompanies the part or material and that must be fulfilled.
Technology Groups
Technological groups are those that identify and group parts of the final product, similar to each other, to take advantage of their similarity in design and production.
Characteristics:
A central feature in Group Technology is the family of parts.
A family of parts has similarities in geometric shapes and size or in the processing steps used in their manufacture, enabling "cellular manufacturing".
They have the advantage of standardizing the use of tools, machining devices, supports, etc.
It allows to face large or medium manufacturing batches and the best use of the machines, reducing costs.
It has the disadvantage of the tedious initial work of identification and conformation of the GTs and the families of parts.
Kaizen method
The kaizen method is the opposite of complacency, a method focused on continuous improvement that operates on the entire company, based on the study and improvement of the Processes instead of being based on obtaining results.
The method is aimed at achieving comprehensive customer and consumer satisfaction of products and services, putting creativity at the service of innovation.
It was designed in Japan and originally applied in the Toyota factory, spreading rapidly to Honda, Mazda, Isuzu, Yamaha, Kawasaki, Canon, Konica, Sanyo, Casio, Seiko, Hitachi, and many other brands, displacing Western brands.
Some of the features indicate:
- Process orientation before results orientation Start implementation from the top and involving everyone Commitment of senior management levels Efficient and unhindered vertical and horizontal communication Continuous improvement in all products and processes Consistency of objectives and a shared vision. Customer orientation, he rules. Investment in personnel. Quality management begins and ends with training. Two heads think better than one. Everyone participates in the determination and communication of goals.
Just-in-time (JIT) production system
The contribution that the Japanese industry provided to the world is invaluable since, in the last decades, it has delivered for its analysis and application, a series of management systems and methodologies that led to a change in the management model oriented to the "should be" do things well, as it should be, tending to continuous improvement and high competitiveness.
The JIT system tends to eliminate all types of activity that do not add value and to achieve an agile production system that is flexible enough to satisfy market fluctuations.
The reasons that define disadvantages in the daily life of companies and prevent efficient operation and minimum cost are the following:
- High stocks Excessive lead times Delays Lack of agility and speed of reaction Poor grade out and thread diagrams Excessive time in tooling changes Unreliable suppliers Quality problems Scrap and disorder Lack of supplies and materials Waste in time, material, etc.
These disadvantages are products of:
- Inadequate distribution of machines and circuits The time to change tools Faults Quality problems Difficulties with supplies
The main causes of production management difficulties are:
- Inappropriate distribution of machines and lengths of journeys Tool change times Reliability of equipment Inefficiency in the quality control system Problems originating from suppliers
Making the JIT possible implies having continuity in continuous improvement activities to eliminate all the obstacles that prevent efficient management.
The fundamental philosophical concepts for the development of production are the following:
- Flexibility at work Encouragement of innovative ideas Control of defects.
The objectives of the JIT are:
- Attack fundamental problems Eliminate waste Seek simplicity Design systems to identify problems
What we should do:
- Produce what the customer needs and wants. Short manufacturing and delivery times. Manufacture what is necessary. Buy the immediately necessary quantities. Avoid waiting and wasting time. Dispose of materials, parts and supplies in the places where they are needed. Achieve high reliability in the equipment Manage the quality of production Have qualified, versatile personnel, identified with the company and its objectives and motivated.
Indicators of performance
The objective of companies is to make profits, so profitability levels must be constantly monitored. At the same time, it is necessary to develop a series of indicators of particular interest to each company that define the operational efficiency of the management systems and policies.
Some of the indicators that can be taken as an example:
1) Productive indicators
Productivity = units produced
Hs. Man
When the company manufactures more than one product, the equivalences between them must be calculated, forming an equivalence table.
Equivalence coefficient = Standard time of the piece considered = Ce
Standard time of the reference piece
Equivalent global productivity = ∑ (Qty. Total pieces ix Ce)
Total time pieces i
Consider the following data:
- Total machine times used Dead times Operating times Total times Machine utilization
(Machine utilization) UM = ∑ Operating times x 100
∑ Total times
Process scrap
Scrap = Bad Units x 100
Units manufactured
Manufacturing order fulfillment
COF = No. of scheduled orders fulfilled x 100
No. of scheduled orders
Compliance with productive objectives
COP = Number of programmed units completed x 100
Number of programmed units
2) Quality indicators
The quality indicators try to reflect the degree of customer satisfaction and the efficiency of the Quality Management System.
Claims index
Claims index = No. of OF claimed x 100
No. of OF delivered
Also Claims index = No. of products claimed x 100
No. of products delivered
External returns index
DE Index = Units returned externally x 100
Units delivered
Internal returns index
DI index = Units returned internally + scrap + internal rework x 100 / Units manufactured
Failure detection rate
Index of DF = Unit. dev. Internally + scrap + internal reprocessing x 100
Units returned
Reprocess rate
Rework rate = Units reprocessed x 100
Units manufactured
3) Indicators of the commercial area
They indicate the degree of customer satisfaction with commercial management
Delivery deadline compliance index
CPE index = No. of orders delivered on time x 100
Total No. of orders for said period
Customer satisfaction index
SC index = Points obtained in the surveys x 100
Total points of the survey
Billing index
Billing index = N ° of wrong invoices issued x 100
Total N ° of invoices issued
Technical Assistance Index
Claim response date
Claim receipt date Claim
response time (averages are obtained for all claims).
4) Index of the HR area.
These indices reflect investment in training, efficient use of human resources, safe work management, and absenteeism.
Training index
Training index = Training man hours x 100
total man hours
Overtime index
Overtime index = Overtime man hours X 100
normal man hours
Absenteeism rate
Rate of absenteeism = Hs. Man absenteeism x 100
Hs. Normal men
Accident frequency index
AF index = No. of accidents x 100
man-hours worked
Accident severity index
GA index = No. of days lost due to accident leave x 100
man hours worked
