Essentials of Production

H A S H M A N A G E M E N T S E R V I C E S L L P

C H E N N A I

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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 students(freshers) and

professionals in performing more efficiently and effectively in the organization

This document is a part of the “Certified Manufacturing Professional” course offered by Business Sense

This course 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 students and professionals who are joining manufacturing

organizations

For more details, please visit www.businessense.in

At Business Sense, we help clients through consulting engagements focusing on improving their

Operations through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and other tools.

We also serve clients on Preparation of Detailed Project Reports, Market Assessments, and Supply

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Contents


Section 1 – Introduction and Basic Processes

Section 2 – Shop Floor Management

Section 3 – MIS Reports and Analyses Points

Introduction to Production Function


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


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


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



* A typical functional hierarchy is mentioned here. It may vary according to each organization.

Responsibilities of an Engineer in Production Department


• 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


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


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


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


Section 1 – Introduction and Basic Processes

Section 2 – Shop Floor Management

Section 3 – MIS Reports and Analyses Points

Daily Production Plan


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


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


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


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


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


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


Waiting

Transportation

Over-Processing

Inventory Motion

Defects

Over-Production

7 Wastes

Waste no: 1 - Waiting


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


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


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


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


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


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


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


(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


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


Please visit our website www.businessense.in to access the full course – “Certified Manufacturing

Professional”

Our website also contains list of ready-to-use templates and report formats containing 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 clients through consulting engagements focusing on improving

their Operations through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and

other tools.

We also serve clients on Preparation of Detailed Project Reports, Market Assessments, and

Supply Chain Re-engineering.

You can subscribe to our bi-weekly newsletter here.

Follow us:

http://www.businessense.in/

http://eepurl.com/pgLJr





Essentials of Production

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