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Management
Course : MBA
Waste is the use of any material or resource beyond what the customer requires and
is willing to pay for.
Lean Manufacturing aims to identify and eliminate waste to improve the performance
of the business.
Shigeo Shingo identified “Seven” forms of waste (Plus one – The eighth waste, under
utilization of people) These 7 forms of waste are shown below
1. Over Production
• Takes the focus away from what the customer really wants
• Leads to excessive inventory
Caused by:
• Costs money
• Creates inventory
• Space utilisation
2. Inventory
Any raw material, work in progress (WIP) or finished goods which are not
having value added to them
Caused by:
• Inaccurate forecasting
• Excessive downtime/set up
• Large batching
• Unreliable suppliers
• Adds cost
• Extra storage space required
3. Motion
• Adds cost
• Waste motion occurs when individuals move more than is necessary for the
process to be completed
Caused by:
• Poor housekeeping
• Inadequate training
4. Waiting
• Lack of multi-skilling/flexibility
• Downtime/Breakdown
• Quality,design,engineering Issues
• Stop/start production
• Causes bottlenecks
5. Transportation
Caused by:
• Sharing of equipment
Why one of the 7 Wastes ?:
• Poor communication
6. Over-Processing
Caused by:
• It consumes resource
Caused by:
• Machine inaccuracy
process redesigns.
The following "seven wastes" identify resources which are commonly wasted. They were
identified by Toyota’s Chief Engineer, Taiichi Ohno as part of the Toyota Production
System[4]:
[edit] Overproduction
Overproduction happens each time you engage more resources than needed to deliver to
your customer. For instance, large batch production, because of long change over time,
exceeds the strict quantity ordered by the customer. For productivity improvement,
operators are required to produce more than the customer needs. Extra parts will be
stored and not sold. Overproduction is the worst muda because it hides or generates all
others, especially inventory.[citation needed] Overproduction increases the amount of space
needed for storing raw material as well as finished goods. It also requires a preservation
system.
Each time a product is moved it stands the risk of being damaged, lost, delayed, etc. as
well as being a cost for no added value. Transportation does not make any transformation
to the product that the consumer is supposed to pay for.
[edit] Inventory
[edit] Defects
Whenever defects occur, extra costs are incurred reworking the part, rescheduling
production, etc.
[edit] Over-processing
Over-processing occurs any time more work is done on a piece than what is required by
the customer. This also includes using tools that are more precise, complex, or expensive
than absolutely required.
[edit] Waiting
Whenever goods are not in transport or being processed, they are waiting. In traditional
processes, a large part of an individual product's life is spent waiting to be worked on.
The term ‘maintenance’ means to keep the equipment in operational condition or repair it
to its operational mode. Main objective of the maintenance is to have increased
availability of production systems, with increased safety and optimized cost. Maintenance
management involves managing the functions of maintenance. Maintaining equipment in
the field has been a challenging task since the beginning of industrial revolution. Since
then, a significant of progress has been made to maintain equipment effectively in the
field. As the engineering equipment becomes sophisticated and expensive to produce and
maintain, maintenance management has to face even more challenging situations to
maintain effectively such equipments in industrial environment. This brief lecture on
maintenance management includes maintenance strategies, functions of maintenance
department, maintenance organization and elements of maintenance management.
FUNTIONS OF A MAINTENANCE DEPARTMENT
MAINTENANCE ORGANIZATION
• Maintenance Policy
• Control of materials
• Preventive Maintenance
• Condition Monitoring
• Work Order
• Job planning
• Priority and backlog control
• Data recording system
• Performance measurement measures or indices
6.0 SAFETY
Several definitions exist.
A condition in which the risk of harm and damage is limited to an acceptable level.
The Air Navigation Commission (ANC) has adopted the following definition of Aviation
Safety:
The state of freedom from unacceptable risk of injury to persons or damage to aircraft
and property.
Another way of saying basically the same is to say that acceptable SAFETY means that
all risk levels are kept below the risk limits, reference the ALARP figure, or that all
hazard scenarios are kept in the acceptable region of the Tolerability matrix.
Q.No. 6: What is method study? Describe the procedural steps to develop easier and
effective methods?
Answer:
Method study is the systematic recording and critical examination of existing and
proposed ways of doing work, as a means of developing and applying easier and more
effective methods and reducing costs.
Method study is an organized approach and its investigation rests on the following six
basic steps outlined in the block diagram:
Selections of the jobs to be studied for methods improvement by the method study practioner
is a managerial responsibility and it (selection) may be based on economic technical or human
consideration. Economic consideration justifies selection based on the economic worth (i.e.
money saving potential) of the job.
Recording of facts
Systematic recording is the most crucial step in method improvement. Since recording by
long hand (or by descriptive method) has its limitations, it is not recommended for use in
method study. Instead, five symbols and eight charting conventions are used to record facts
relating to the job under study. Five typical symbols are O, ||, , D and V and eight charting
conventions concern composition of the chart, reject, rework, repletion, change of state,
introducing of new material, combined events and numbering of events. The document on
which details of the process are recorded by the above referred symbols and conventions is
called chart. There are four basic types of chart: (i) operation process chart (ii) Flow process
chart (iii) multiple activity charts and (iv) two handed process chart.
Besides charts, two types of diagrams-flow diagram and string diagram are drawn when
recording details of an existing layout. Travel chart is another typical chart, which is used to
record frequency of movements (weight x distance) between work centers/departments.
Repetitive short cycle operation that involves quick hand / feel motions (i.e. microscopic
motions) may be studied with micro motion study. Glibreth, founder father of micro motion
study, also developed photographic techniques called cyclograph and chronocylegraph to
record path of the motions of the members of the body.
Critical examination
Critical examination aims to analyze the facts critically and thereby give rise to alternatives,
which form the basis of selection and development of easier, and effective methods.
Development and selection stage concerns short listing of ideas generated at the critical
examination stage, testing each short listed idea for its technical and economic feasibility, and
making selection among the alternatives wherever choice exists. To develop ideas and to
ascertain their technical and economical feasibility, the method study practioner needs to
solicit the cooperation of personnel from different departments of the company. Various
techniques available for the development and selection purpose are: cost benefit analysis,
break-even analysis, investment analysis and critical path analysis.
Installation
Installation (or implementation) of the proposed method involves preparation of project report
on recommendations making oral presentation to the top management, securing approval of
the decision maker, assisting line management during implementation, arranging training of
workmen, and getting jobs (operations) retime after implementation, arranging training of
workmen, and getting jobs (operations) retimed after implementation.
Maintenance
Maintenance phase is the follow up phase after implementation, which serves as a monitoring
and control mechanism. It helps to ensure that the revised methods are set into concrete and
workmen do not revert back to old methods. It also provides an opportunity to the
practitioner to assess the effectiveness of the approach followed by him and makes changes in
the methodology (if required).