Productivity
Productivity
Productivity:
Productivity is a relationship between output and input. Productivity of a production system is
analogous to the efficiency of a machine. It may be defined as the ratio between output of wealth
and input of resources of production. Output means the quantity produced and inputs are the
various resources employed, e.g., land, building, machinery, materials and labor.
Productivity=output/input
Productivity refers to the efficiency of the production system. It is an indicator of how well the
factors of production are utilized.
It may also be defined as human effort to produce more and more with less and less inputs of
resources as a result of which the benefits of production may be distributed more equally among
maximum number of people.
The term "productivity" is often confused with the term "production'. Many people think that the
greater the production, the greater the productivity. This is not necessarily true. We shall show
this by an example, but before doing so, let us clarify the meanings of the terms "production" and
"productivity".
Production is concerned with the activity of producing goods.
Productivity is concerned with the efficient utilization of resources (inputs) in producing
goods (outputs)
There are many factors affecting productivity such as product and system design, machine and
equipments, skills and effectiveness of the workers, production volume. In true sense, the
productivity can be said as increased if more products can be obtained from the same amount of
resources. Indoor environmental quality may affect physiological and psychological processes
that, in turn, may affect performance of tasks that may interact with other factors to affect overall
productivity. To improve productivity, most efficient workers should be placed at the bottleneck
points. It is necessary to improve the existing production capacity of assembly lines through
proper optimization technique. Some applications cannot be applied. Though the decision
variable performance is known and the efficiency of the workers is distinctive i.e. there is no way
to use a portion of the efficiency of worker, linear programming optimization technique is not
applicable. In network optimization model, there are many paths to follow and sometimes there
has a provision to skip any path. But in the apparel assembly line there is no way to skip any
operation as well as path, it is also not applicable.
2 | P a g e
Transportation model is not applicable because in assembly line production system there is a
distinctive path to follow and there is no provision of skipping any operation for the shack of
completing a finish product and sequence of operations must have to be maintained. Assignment
model is not suitable because production capacity of assembly line does not depend on several
points but depends on the bottleneck points. Genetic algorithm is not applicable because in an
assembly line there is no impact of one worker to other.
Quite often the terms productivity, efficiency and effectiveness are confused with each other.
Efficiency is the ratio of actual output attained to standard output expected.
For example, if the output of an operator is 100 pieces of collars per day while the standard rate
is 150 pieces a day, the operator's efficiency is 100/150 = 0.667 or 66.7 per cent.
Effectiveness, on the other hand, is the degree of accomplishment of objectives. A person could
be effective without being efficient. For example, a project manager may have accomplished the
objectives of an assignment very successfully, but if the cost for implementing the project was
very high or the project was completed behind schedule, then he or she may have been effective
but not efficient. Some people differentiate efficiency and effectiveness as follows: efficiency is
doing things right and effectiveness is doing the right things. Productivity is a combination of
efficiency and effectiveness. Hence, it is doing the right things right.
3 | P a g e
Basic productivity measurements:
While productivity has been defined differently by different people, still the various definitions
and interpretations of productivity could be summarized into the relationship between output and
input. The two basic and commonly used approaches for measuring productivity are as follows:
Partial productivity is the ratio of output to one class of input. For example, labour
productivity (the ratio of output to labour input) is a partial measure. Similarly, material
productivity (the ratio of output to material input) and machine productivity (the ratio of output
to machine input) are examples of partial productivity.
Partial productivity measures are easy to understand and use. Partial productivity is also a
good diagnosis tool for pinpointing improvement areas. However, it has some disadvantages. If
used alone, it can be misleading and may lead to costly mistakes. Partial measures cannot be
used to explain overall cost increases. Studies show that among industrial corporations partial
productivity measures are the most commonly used at all organizational levels, particularly in the
plant division level.
Total productivity is the ratio of total output to the sum of all input factors. Thus, a total
productivity measure reflects the joint impact of all inputs in producing the output. It is a kind of
a higher level of productivity assessment combining several or many partial productivity
measures. Total Productivity Measure considers all the quantifiable output and input factors;
therefore it is a more accurate representation of the real economic picture of an enterprise. Total
productivity measure, on the other hand, considers all the quantifiable output and input factors;
therefore it is a more accurate representation of the real economic picture of an enterprise.
However, total productivity measure does not tell the management of a firm which of its
products or services is causing a decline or growth. Nor does it tell them which particular inputs -
workers, material, capital, energy, or other expenses - are being utilized inefficiently so that
corrective action can be taken. Moreover, data for computation are relatively difficult to obtain
unless data collection systems are designed for the purpose.
Studies show that among industrial corporations partial productivity measures are the most
commonly used at all organizational levels, particularly in the plant division level.
4 | P a g e
Measuring output and input:
As explained above, productivity is the relationship between the output of an enterprise and its
required inputs. Productivity can be quantified by dividing the outputs by the inputs. Productivity
increase could be achieved by improving the output and input ratio; that is, by producing more
output, or better output, with a given level of input resources; or by producing the same level and
quality of output but reducing the level of required inputs.
While it seems so simple, actual computation is not that easy because application of the formulas
is not that straightforward. A number of problems are encountered, among which are:
difficulty in gathering all the data required
difficulty in converting all outputs and inputs into a common unit of measure
difficulty in incorporating all factors affecting the productivity index, such as price
fluctuations, quality differences and product mix.
Given these difficulties, some enterprises use qualitative productivity indicators to show that
productivity is improving in the enterprise. These qualitative productivity indicators are based on
judgments, opinions, surveys, feedback and other visible indicators which could be documented
in pictures and videos. We may also keep a record of data in a log book. These records would be
essential for assessing improvements in the quality performance of our enterprise.
5 | P a g e
Qualitative productivity indicators:
These indicators may provide information on very different issues; the most commonly used are:
Higher morale of workers. This is usually manifested in terms of high level of worker
participation in improving activities of the enterprise, enthusiasm, happy faces, high
sense of belonging, high level of initiative, high sense of accomplishment, fast pace of
work and cooperation
Improvements in the work environment. Most of these are visible and could be
supported, if necessary, with photos or video recordings of a brighter, more spacious,
cleaner, and more organized workplace. Several non- standard quantitative productivity
indicators are linked to this indicator.
Reduced effort in doing work Tasks have been organized appropriately to reduce
repetition and physical workload. Workers are less fatigued and more productive
throughout the day.
Improved communication. There is a policy on information and transparency in the
enterprise. Regular information meetings are held. There are fewer grievances and
quarrels.
Improved labour-management relations. Workers have easy access to management and
vice versa. There is a growing shared trust, concern and cooperation from both labour and
management. Labour turnover is reduced.
Better customer satisfaction, the enterprise receives positive feedback and more orders
from clients.
Improved image and reputation of the enterprise. Clients, suppliers, visitors and the
community as a whole give positive feedback about the enterprise. There are more
qualified job applicants.
6 | P a g e
Non-standard quantitative productivity indicators:
Enterprises also use non-standard productivity indicators. These are expressed in quantitative
terms, but are not calculated as a relationship of output and input. Actually, they are enterprise
performance indicators which show how the enterprise is evolving and their impact on
productivity and competitiveness.
These indicators provide information on productivity in different aspects of the business:
production, work organization, workforce, use of premises, etc. The most commonly used are:
increase in volume of outputs;
improved quality of products;
reduction in volume of rework;
reduction in volume of rejects;
reduction in number of late deliveries;
reduction in number of work-related accidents;
reduction in absenteeism;
reduction in number of machine breakdown;
reduction in machine downtime;
reduction in overtime;
reduction in space cost per unit value of product;
reduction in turnover of employees;
reduction in sick-leave;
more customers;
increased number of improvement suggestions;
reduction in complaints;
Higher profits.
7 | P a g e
Benefits of productivity measurement:
Productivity measurement enables an enterprise to assess the efficiency of conversion of its
resources to goods. Based on this assessment, the enterprise would know whether it is doing well
or badly and therefore could take the necessary action to produce more goods for a given amount
of resources used. Measurement enables the enterprise to do resource planning and to set
quantifiable objectives of productivity levels at which it ought to be operating.
Productivity measurement also enables an enterprise to know whether it is improving its
profitability through productivity or through price recovery. Moreover, productivity
measurement enables an enterprise to know the results of management decisions, to monitor
progress, and to provide feedback. Thus, measurement is integral to the productivity
management process.
The WISE1..Productivity Measurement System (WISE-PMS) has been designed to be simple
and easy to understand, use and maintain. The number of productivity measures has been kept to
a minimum so as not to burden and confuse users. The productivity measurement indicators
selected are those which relate to operations and processes to allow immediate and continuous
improvement.
The WISE-PMS aims to provide you with a system which will enable you to measure the impact
on productivity of improvements implemented in the different technical areas of WISE, namely:
materials storage and handling; workstation and product design; productive machine safety,
maintenance and environmental control; lighting; work-related welfare facilities; premises; and
work organization. Hence, the WISE-PMS presents measurement indicators that are applicable
to these technical areas primarily.
Note:
1
WISE stands for Work Improvements for Small Enterprises. It is the acronym of the ILO
methodology for improving working conditions and productivity. It belongs to the series higher
productivity and a better place to work.
8 | P a g e
Standard productivity indexes:
As mentioned before, there are two commonly used approaches for measuring productivity -
partial productivity and total productivity. We will now discuss the three ways to compute partial
and total productivity indexes. These are the physical productivity, the value productivity and the
value-added productivity methods. The main problem here is how to define the outputs, in other
words, what are the units of measure for materials, labour, machine, energy, etc.
1. Physical productivity measurement method
This method uses the quantity of output and input as data for calculating the indexes. The main
physical productivity indexes are:
Labour productivity index = Volume of output / labour input
Material productivity index = Volume of output / volume of material inputs
Machine productivity index = Volume of output / machine input
Energy productivity index = Volume of output / volume of energy input
Total physical productivity index = Total volume of outputs / total volume of all inputs
2. Value productivity measurement method
This method uses the value of outputs and inputs as data for calculating the indexes. Main value
productivity indexes are:
Labour productivity index = Value of output / labour inputs (Physical or value)
Material productive index = Value of output / value of material inputs
Capital productive index = Value of outputs / capital inputs
Machine productivity index = Value of outputs / value of machine input
Energy productivity index = Value of output / value of energy input
Total productivity index = total value of outputs / total value of all inputs
9 | P a g e
3. Value-added productivity measurement method
This method uses value-added (expressed in monetary units) as data for calculation, where
Value added = current income (before tax) + personnel expanses + financial costs + rent + tax +
Depreciation cost
Data for value-added computation are taken from the financial statement. In the absence of a
financial statement, small garment enterprises could use physical and value productivity
measurement methods.
Labour productivity index = value added / labour input
Capital productivity index = value added / capital
Note: An index is a ratio between two quantities; therefore it is a number, with no dimension
associated to it.
The outputs and inputs can be measured in physical units or in financial terms depending upon
the organizational needs. Manufacturers producing a standard product (five pocket jeans or dress
shirt) tend to use physical unit method for measuring output i.e. the output is measured in terms
of number of items (garments) produced. In case of manufacturers producing products with close
similarity, the output is converted into standard equivalent product for physical measurement.
For example, if a manufacturer produces three styles of shirts, each involving direct labour
content of 16, 20 and 24 minutes respectively and the shirt style taking 20 minutes is standard
shirt, then the output of shirts with work content 16 and 24 minutes will be multiplied by 0.8 and
1.2 respectively to arrive at the output in standard shirt equivalent.
In the case of manufacturers with great amount of product variation, the measurement of output
in physical unit terms may not be useful, as the products are not comparable. In such cases, the
output is measured in financial terms. As regards measuring inputs, labour input is generally
measured in physical units like minutes, hours, days or months. Capital inputs like machines can
also be measured in terms of time. In apparel industry it is often seen that productivity is
communicated in terms of number of garments produced per sewing machine per shift or per
operator shift. Input like labour, capital and energy can also be measured in financial terms.
10 | P a g e
As output and input are the important constituents of productivity, it is important that while
communicating productivity the output and input are explained clearly. It is often seen that
productivity communication is incomplete or vague. In apparel industry, it is common to hear the
statement like productivity of a factory is 15 pieces per operator. A statement like this cannot
be understood or the listener cannot make useful judgment on the productivity performance as
the information provided is insufficient. It is vital to provide following information in
productivity communication.
The form of input and output.
Quantum of input and output.
Unit of measuring the input and output.
The productivity performance communication 15 pieces per operator does not say anything
about:
The form of output- Shirt or trouser or jacket etc.
The unit of measuring input- Time
Quantum of input- How much?
A better and easy to understand communication can be to mention that the productivity of
organization XYZ is 15 standard shirts per sewing operator per eight hour shift.
Outputs are the finished units or the partially produced (work-in-progress) units by an enterprise.
They should be tangible or measurable and should meet the quality specifications. As shown in
the foregoing examples, outputs are expressed in different units depending on the product, the
industry practice or client requirements. Outputs and inputs are expressed either in physical
(kilograms, meters, hours, etc.) units or in monetary terms. Ideally, both should be expressed in
uniform physical units. Unfortunately, however, this is seldom the case. Thus, monetary values
are used but in real terms, a reference period (often referred to as "base period") is normally used
for calculations, so that data are in constant values. Deflator or inflator factors may also be used,
depending upon whether the cost of outputs and inputs have gone up or down, to eliminate the
effect of price variations during the period. Thus, the value of output is expressed as follows:
= *
Value of finished unit
of a product produced
in any period of time
(base period)
Number of finished
unit of this product
produced in this period
Selling price per unit for
this product in the base
period
11 | P a g e
Whereas the value of work-in-progress units is expressed as follows:
= * *
As regards input elements, they usually consist of human work input, raw materials, capital,
energy and other inputs.
Human work input usually considers the direct labour cost responsible for the production of a
particular output. Indirect labour cost could be taken separately, and another productivity index
computed separately as well. One could even consider all the human resources employed in
producing the output.
Direct labour are those workers involved in processing, assembly and other operations directly
linked to production, whereas the indirect labour provides services which indirectly assist
production, such as inspection, quality control, storage, transportation, repair and maintenance,
shipping, packaging, utilities operations and research.
Labour is usually measured in units such as worker-hours, worker-days, worker-months and
worker-years. However, if the unit covering too long a period is used, results are likely to be
inaccurate. In principle, it is preferable that labour productivity be measured using worker-hours.
When value of human work input is used, then it is computed by:
= *
Material input consists of all raw materials expressed in physical (kg, meters, bolts, etc.) or
monetary units.
= *
Value of partial units
produced of a
product for this
period
Number of work in
progress units of this
product produced in
this period
Percent
completion
Selling price per
unit in base period
Value of
worker-hours
for the period
Number of
worker hours
Average salary or wage
rate for the period
Value of raw
material consumed
for a product in a
given period
Quantity of
material used for
this product in
this period
Purchase price of the
material in the base
period
12 | P a g e
Capital input: Traditionally, two methods are employed to measure the consumption of fixed
capital. One is the depreciation method, wherein depreciation is used as an approximation of the
fixed capital consumed. The other is the labour-input equivalent method, where the capital
charges are converted into labour-inputs equivalents. The capital input is constituted by the value
of the services of capital which is determined by the lease value.
In many cases, machine productivity is used to represent capital productivity because the number
of machine-hours is easier to obtain.
Energy input: The energy input is the volume or cost of energy incurred for a given period for a
given output. Energy used for different industries vary, but usually these consist of electricity,
natural gas and diesel oil. The usual basis for electricity consumption is the periodic electricity
bill.
13 | P a g e
WISE-PMS application in the garment industry:
Let us apply the above methods and procedures in a medium-sized garment subcontractor
enterprise producing jackets. The purpose of this exercise is to show how to calculate, as a matter
of example, the following productivities and productivity indexes:
direct labour productivity
indirect labour productivity
total labour productivity
value direct labour productivity index
value total labour productivity index
material productivity
machine productivity
energy productivity
Improved productivity of the bundling section due to a better bundling process and
transport.
For example, an enterprise with jackets categorized into winter and spring jackets could have
five to seven style- orders per year under each category. Each order normally comes in four sizes
(small, medium, large and extra large). Each style involves different operations, uses different
materials, requires different skills and orders come in different volumes. These factors determine
the worker- hours required to finish one jacket. The estimated worker-hours determine the price
one could ask for a particular style-order.
Considering the differences for each style, it is not accurate to add all outputs together, even if
the enterprise produces only jackets. Each style should be considered as one product and
productivity should be measured for each style. A comparative study could be undertaken to find
out which style has the highest productivity and which has the lowest. An analysis of the
productivity data will identify the factors behind the differences in productivity. This should lead
to improvement actions.
14 | P a g e
Let us suppose that an enterprise has 124 employees, categorized as follows:
Marking and bundling
section
10
Preparatory section 30
Sub assembly section
(front)
15
Sub assembly section
(back)
15
Assembly and final
operations
25
Finishing section 6
Trimmers 4
Line leaders/supervisors 11
Maintenance 4
Administrative staff 4
The enterprise is quickly gaining new markets and, for a trial period, the sewing sections work in
two 12-hour shifts. Given the need to deliver some urgent orders, sewers are requested to work
one extra hour. Sewers are paid on a fixed rate based on skills, which is a function of the number
of machines each worker could operate and the type of operations handled. The length of service
in the enterprise is also considered. Incentives are given to all workers on a pro-rata basis if they
exceed the target output for the day.
Data are collected at operator level. Masking tape and a pencil are provided on every work table
and each operator records her/his output. Every hour, the line leaders collect the data from the
operators, add their respective line outputs and enter the data on the monitoring board. Based on
the output data, the line leaders take the necessary action to ensure that targets are achieved.
Finished outputs and work-in-progress are recorded by the hour, and a balance shown against the
target for the day. The cumulative total of all finished products, work-in- progress of every
critical operation and the balance for a certain style-order, are shown on the bulletin board.
Everybody knows the work status and whether scheduled delivery date can be achieved.
Productivity indexes can be measured daily, or weekly, or for the whole order. In fact, a running
average productivity index could be computed to know whether the productivity performance is
within target. Once the data collection system and the measurement system are in place, it is very
easy to compute the productivity indexes.
15 | P a g e
The following data were taken for one sample day:
output 230 pieces of finished jackets
Sewers present 77 workers
Sewers absent 14 workers
Non-sewers present 30 workers
Non-sewers absent 3 workers
Normal hours of work 12 hours per sewer
Overtime 1 hour per sewer
Actual hours of work 13 hours per sewer
In this enterprise, only sewers are considered direct labour. Non-sewers are considered indirect
labour.
Using the physical productivity measurement method, we have:
Direct labour productivity = volume of output / direct labour input
Direct labour productivity per sewer = 230 pieces / 77 sewers = 2.98 (approx 3 pieces per sewer)
Direct labour productivity per sewer per hour = 230 pieces / 77 sewers * 13 hours
= 0.23 pieces/worker-hour
This means: 77*13 / 230 = 4.35 hours are needed to finish a jacket of this particular style.
Indirect labour productivity = volume of output / indirect labour = 230/ 30*13
= 0.59 jackets per worker-hour
Management may opt to use the total manpower to calculate labour productivity; then
Total labour productivity = 230 pieces / 107 workers * 13 hours
= 0.165 jackets per worker-hour
It means that 6.06 worker-hours are to be paid by the enterprise for every jacket, 4.35 of which is
used in the actual sewing and 1.71 worker-hours for support operations.
Is the enterprise doing well or badly? This is the second phase of the productivity management
process - the evaluation of productivity data. For this you need to carry out the same exercise in
another sample day and compare the new indexes with the above figures.
16 | P a g e
Let us now use the value productivity measurement method. For this we need to know the price
of the jacket (say 100 monetary units - MU) and the cost of the average wage paid per hour (say
10 MU).
Value of direct labour productivity index = value of output / value of labour input
= (230 pieces * MU 100/piece) / (77 workers* 13 hours/workers * MU10/hr)
= 1.653 MU
It means that for every monetary unit spent on labour, the enterprise earns 0.653 monetary units,
which should cover overhead expenses and profit. In absolute monetary units values, this is 107
workers x 13 hours/worker x 10 MU/hr x 0.653 = MU 9,083 - which represents the daily
earnings of the enterprise.
In fact, the amount of MU100 a piece does not represent the actual value of the jacket. This
represents only the value of labour inputs per jacket based on worker-hour estimate of the
owner/manager. All raw material inputs are provided by the contractor. The subcontractor
provides labour only. Thus, labour productivity is very important and significant for the
enterprise.
Material productivity:
Given the situation explained above, the material productivity index is not important to them.
However, following a similar procedure as above, you may calculate the material productivity
index.
Machine productivity:
Machine-hours used are assumed to be equal to worker- hours, thus machine productivity will
have the same index as labour productivity.
Energy productivity:
Energy productivity is also important for a subcontractor enterprise. The electricity consumption
of garment enterprises is relatively high. For this enterprise, electricity daily average cost is, say,
455 monetary units.
Energy productivity = (volume of output/day) / (electricity cost in MU/day)
= (230 pieces) / (MU455/day) = 0.5 piece/MU
17 | P a g e
This means that 2.00 monetary units worth of electricity are used per piece of jacket.
Given that there are 77 sewers in the enterprise, the daily cost of electricity per machine is:
455MU/ 77 workers = 5.91MU per worker
Value productivity indexes:
Using value data-
Energy productivity index = (230 pieces/day * MU100/piece) / (MU455/day) = 50.55
It means that for every monetary unit worth of electricity, 50.55 monetary units of revenue are
generated.
18 | P a g e
Steps in implementing a productivity measurement system
A step-by-step procedure is essential to achieve successful productivity measurement in our
enterprise. If we are considering the implementation of a productivity system, start gathering data
on a limited number of indicators. Once we are confident with them, we can go a step forward.
As with the process of change, the key is to be persistent. The following steps could serve as a
guide.
Select main products
Which are the major products of our enterprise? Select some of them. How do we quantify them?
How do we price them? Knowing the performance of these products is important because
sometimes they comprise 80 per cent of total production and should therefore be given special
attention. To begin, we should select one or two of the products.
Define outputs and inputs
Determine what inputs are used in producing the outputs of the selected products, in what unit of
measure could they best be expressed? We should be able to capture all inputs. Sometimes, there
is a tendency to disregard small quantities but, when added together, these small quantities
become substantial. Some inputs could be very expensive and small quantities may represent a
significant amount in monetary units.
Identify the critical operations in the production process
The production of the selected products may be jeopardized by some critical operations. Critical
operations are those which are difficult to do, costly if errors are committed, require more time,
require special skills or machine and are important in the completion of the final product.
Decide which productivity factors are significant and useful for implementing continuous
productivity improvements
Apart from being interested in keeping track of our main products, or in assessing the impact of
changes in some critical operations, we may also be interested in some productivity factors at
enterprise level. For garment sub- contractors, labour productivity is very important because
labour cost and delivery schedules are greatly affected by labour productivity. If our labour
productivity is decreasing, we may decide to train or re-train our workers.
Decide on the frequency and level of productivity computations
We may need to record data more or less frequently or at different levels, depending on the
information required. Should it be carried out daily, weekly, monthly, per product, per operation,
per section, at individual level, or at enterprise level?
19 | P a g e
Select a base period
For long term monitoring of productivity improvements, there is a need to have a base period,
i.e. a time period used as a reference for computing productivity values and indexes. Usually, the
time when the productivity measurement program is launched is used as the start of the base
period. Other factors, such as seasonality of demand patterns, abnormal developments in the
enterprise and frequency of productivity measurement may also be considered in the selection of
a base period.
Design a data collection system; including forms, data sources and data flow
It is very important that the data collection system be simple, easy to understand, use and
maintain. Start with the productivity measures which are most relevant or critical for our
enterprise.
Data forms should be in the local language for easy comprehension by the workers. Cost of data
collection forms could be substantial. Hence, the system should be cost effective.
Accuracy and reliability of the data inputs should be safe- guarded, especially during the
introduction stage of the system.
Data flow should be simple and straightforward, avoiding unnecessary procedures.
Sample forms are annexed at the end of this section for reference or direct use.
Assign and train at least one person (depending on size of enterprise) to handle data
processing, evaluation, monitoring, graph preparation and trend analysis
This could be an additional cost, but it is essential for rational management of the business. The
use of computers for data processing, storage, easy retrieval and report preparation should be
considered. We could also create a core group on working conditions and productivity.
Explain to all workers the reasons for productivity measurement
Understanding and appreciation of the importance and use of productivity data will secure the
cooperation of everyone. Everybody should understand and agree on the importance and use of
data being collected and how to fill up the forms.
Give performance feedback using productivity data
The results of your productivity analysis should be disseminated. Everybody should know the
results, good or bad. Every worker should be informed how well or badly he/she is performing.
Recognition of and rewards for good performance will help in sustaining the measurement
efforts of the enterprise. Disincentives for poor performance should be spelt out too.
20 | P a g e
Encourage worker participation in the continuous efforts of the enterprise to improve
productivity
After the first steps in introducing the productivity measurement system, it is now time to
involve all workers in it. Start with a small group and then move to full cooperation and
involvement.
Share productivity gains
When we decided to introduce the improvements in conditions of work listed in our action plan,
our enterprise benefited with a productivity increase. The ultimate objective of increased
productivity is to improve the quality of life for everybody concerned in our enterprise. This can
be achieved only if productivity gains are fairly shared with the employees, the shareholders and
the consumers. Productivity-based incentive and reward schemes should be developed and
implemented as these will reinforce the productivity increases achieved. Now we are in a
position to tackle new and more complex improvements in working conditions.
21 | P a g e
Factors Affecting Productivity
The concept of productivity is of great significance for the well development of an industry. In
those companies there are limited resources that should be used to get the maximum output i.e.,
there should be attempts to perform a job by cheaper, safer and quicker ways. Generally
industries will follow six lines of attack to improve the productivity:
1. Improve the basic process by research and development.
2. Provide more and improved physical means to motivate workers.
3. Improve the product and reduce the variety i.e., standardize the product.
4. Improve the method of operation.
5. Improve organization, Production Planning and Control.
6. Improve manpower efficiency at all levels.
The first two lines are sometimes known as long term planning, and it requires more time and
capital for implementation. The third one is known as effective planning and can be
implemented immediately. It may or may not need more capital for implementation. The last
three lines are known as short term planning and can be implemented immediately, that may
not need capital investment.
22 | P a g e
Steps for productivity improvements:
1. Management commitment: Productivity improvement schemes require discipline and co-
operation from all concerned, permanent improvements will be maintained only with Top
Management involvement and support. Management cannot be allowed to sit on the fence they
MUST commit, performance levels are too low, there is a comfort level that must be broken. If
management is prepared to accept 45% so will the operators.
2. Training and empowerment: Without sufficient skills and knowledge your main asset, the
people who work for you will not be effective. Real, in depth productivity improvement will
only be achieved by improving the skill base in the business. For productivity purposes we
recommend that Production Managers, Supervisors, Work study and Quality controllers undergo
training courses and that their performance in the training is monitored and decisions made as a
consequence of their results. Allow these people to make decisions and to learn by their
mistakes. Training must start at the top, teaching people communication skills is vital its a fact
that people do not listen and this of course will immediately delay any planned improvements.
3. Fabric saving: Fabric represents 55% to 70% of the product cost, it is imperative to have total
control of all issues. Fabric reconciliations must happen at the end of each P.O. The results of
these calculations should be shown in VALUE, to establish how much profit or loss was made in
every order. Width measurement shade and shrinkage grouping is essential. There is a premise
that if we can save 2% in width we will save 2% in length. This is not really true in every case,
but additional width can sometimes have a significant effect on marker length. Fabric
reconciliations are no simple task, it is detailed and time consuming, but the object is to attempt
to save up to 4% of your fabric this money will reflect directly on your bottom line profits.
4. Work Study: To improve factory floor productivity you need a Work Study Department
Get a qualified Production engineer to head up this department and then create a team of ATDC
students to work in pre-determined areas of the factory (ATDC Teach a work-study course now)
you should also train a few of the intelligent qualified machinists since they understand how to
sew and will give considerable help with the introduction of new methods since they will be able
to show the operators how. The techniques we teach are quick to train, easy to learn and
provided the students are chosen well, extremely effective.
5. Method and Time Study: It is amazing that Supervisors and Managers do not see how
the job is being done they are only interested in the hourly score. There is a huge improvement
potential in teaching work study people to SEE what the operator is doing , many operators
waste huge amounts of effort doing their job, 85% of most sewing operations is handling,
looking at the way this is done can lead to great improvements. It is essential to teach people to
see in detail how the operator is doing the job what actions can be eliminated or at least reduced
to make the operator Work Smarter not harder We ran a Methods Study competition in one
23 | P a g e
factory with a prize for the best improvement, the improvements varied between 37% to 259%
and this from students who had only been in the industry for 2 months
It is important to know how the standards the efficiency are measured, unless your standard
times are set using international standards then the whole exercise is pointless. You cannot judge
yourselves on past experience you cannot judge yourself on times set by timing an operator
over a few garments or by using a stop watch in the sample department or by timing a few
garments on the line. Times must be set after developing a good method, the way the operation is
done creates the time. There are specialized systems to produce accurate times, these are quick to
learn and easy to apply. Time and Method study go together, there is no point setting a time
without looking at how the job is being done. Better methods and making work easier is worth
good efficiency / productivity improvements.
6. Measuring performance: It is vital that operator performance is measured continuously, we
recommend every two hours; do it by scanning bar coded tickets. Operators performing at less
than acceptable efficiency levels are investigated by the Work Study team. The key to success is
acting on the information which must be accurate and easily available.
7. Line Balance:
Step 1. Calculate the line balance efficiency this will indicate to you how well the line is
balanced. Great care should be taken whilst doing the balance since it will dramatically affect the
output of the line. . A skills matrix should be developed and maintained and should be used to
allocate the best people for the job
Step 2. The line must be continuously monitored to ensure that bottlenecks are minimized.
Supervisors must have the ability to see problems in advance and take the action. They need
constant training to become good at this. Work in progress levels have to be sensible and visible
Supervisors must have time to react to the situations that continuously occur during the day.
8. Quality: Quality personnel must be included in all method changes there is no point in
changing the method if the quality fails. The cost of quality must be established and monitored,
quality should be expressed as a number it is then possible to measure improvements. An
overhaul of the quality systems is necessary in most of the factories we have seen in India.
9. Personnel management: Absenteeism is a huge cause of loss of productivity. Many
companies address this problem by offering an attendance bonus and they dont seem to work.
The Personnel team must be given goals to achieve regarding absenteeism and Labour Turnover,
they should be made responsible for departments and suggest solutions to limit absenteeism and
turnover. Labour turnover is also a big problem in some areas of the country and this again is the
responsibility of the HR department. I feel that this department should be much more pro-active
and more involved with the day to day consequences of absenteeism, labour turnover and
24 | P a g e
operator motivation. Production managers have to deal with the consequences and there is no
doubt that they need all the help they can get.
10. Better Equipment: There are some cases where specialized equipment and work aids will
assist in improving productivity but cost justifications and payback calculations must be done
before new purchases are made. It is also necessary to ensure that you are using your current
equipment as efficiently as possible before new investments are made.
25 | P a g e
Findings:
Cheer Sagar Export has many issues regarding production. There are lots of problems occurring
at the sewing floor which are visible and other issues which are indirectly affecting productivity.
Some of the problems we found there are as follows:
Sewing line is not balanced.
Off-standard time of operator is much high.
Available resources are not used properly.
Absenteeism is more than 20%.
Distribution of manpower is not proper.
No concept of capacity study.
Daily target is not defined.
Lack of proper WIP in line.
Some other factors which are affecting productivity, in the other departments are:
No proper checking of cut parts of garment.
No quality standards/instructions are for garment before production in PPM.
Poor management.
Lack of discipline among operators.
Basically these are the problems which affect productivity most. We took some time for the
study of sewing floor and the production scenario. First we observed the procedure then we
analyzed the things and tried to relate the with an ideal work floor. Then we tried to segregate
problems according to departments.
Sewing floor findings:
At sewing floor, there are few problems which are affecting productivity mostly. One of them is
Off-standard time. It is basically the working time which have zero productivity i.e. no
productive work has been done during that time. In every industry, there is a particular allowance
of time to every operator as fatigue or personal work. It is basically 20% of basic time which is
going on to sew the garment. But here we found off-standard time as more than 35%.
Line balancing is the other problem for low productivity. In this industry, sewing lines are
arranged by floor in charge which has very less knowledge of line balancing concept. There is no
idea for machine requirement or manpower requirement i.e. how many of them we are going to
require. There is also no concept for operation bulletin and operation flow chart.
In cheer Sagar exports, the production system which is followed here is Single piece
movement. This system has no work in progress (WIP) which leads to increase idle time for
operator.
26 | P a g e
Analysis:
As we mentioned earlier about problems we found there which caused low productivity. After
that we analyzed these problems and try to find their causes. Some of them are as follows:
Line balancing- in this industry sewing lines are not balanced according to garment
requirement. Line supervisor n floor in charge just create the line on the base of their
understanding and knowledge. There is no concept of SAM or any technical processes.
They did not use their manpower to make the line balanced. Operator efficiency is not an
issue for them. They just did not utilize their available resources properly. So we tried to
find the causes for unbalanced line and analyzed them.
Off-standard time- this is the main reason for low productivity in cheer sagar export. Due
to unbalanced line, bottlenecks are occurring many times in operations. Due to
bottleneck, operators idle time increased and target is not being achieved according to its
capacity.
Distribution of manpower- they did not rate their operators according to their working skill. So
the manpower distribution was uneven. A low skilled or unskilled operator is performing a
critical operation. This leads down the productivity. This also caused poor quality of garment.
Resources utilization- they did not use their resources according to their requirement. As like
industry have the UBT sewing machines which is much faster and energy saver than normal
sewing machine but they did not utilize that because they dont even know about the benefits of
UBT machines.
Absenteeism- absenteeism is also a big problem for the industry. The HRD is not so much
responsible, so the operators do whatever they want. There is no proper recruitment procedure for
the operators or workers. So whenever the operators want to leave they go easily. Their salary
system is on day to day basis, so workers dont even consider the time they spend there on work.
Capacity planning- Production manager and floor in charge did not have any idea about the
capacity of floor/line/operator. So they dont even know how much output they can produce.
There is no Industrial Engineering (IE) department is there so nobody was doing these kind of
study.
WIP- work in progress (WIP) is not there in the line according to their need. So the line/operator
went idle most of the time. They used Single piece movement system for their production. So
WIP was not created according to requirement to fulfill the target. They dont even use multiple
piece movement system or bundling system.
Daily target- in the industry, there is no concept of capacity study or SAM, On-standard time/off
standard time. So without these they cant set their daily target and plan to achieve it. Floor in
charge has no idea about the capacity or garment SAM, so they just cant able to create a
parameter for their work system.
27 | P a g e
Proposal:
First thing we proposed there was establishment of Industrial Engineering department. IE makes
the production system flexible, easy and provides best way to complete the work.
Industrial Engineering:
Present techno economic scenario is marked by increasing competition in almost every sector of
economy. The expectation of the customers are on the rise and manufacturers have to design, and
produce well in as many variety as possible (concept of economics of scale is no more talked off)
to cater to the demands of the customers. Thus there is a challenge before the industries to
manufacture goods of right quality and quantity and at right time and at minimum cost for their
survival and growth. This demands the increase in productive efficiency of the organization.
Industrial Engineering is going to play a pivotal role in increasing productivity. Various
industrial engineering techniques are used to analyze and improve the work method, to eliminate
waste and proper allocation and utilization of resources.
Industrial engineering is a profession in which a knowledge of mathematical and natural sciences
gained by study, experience and practice is applied with judgment to develop the ways to utilize
economically the materials and other natural resources and focus of nature for the benefit of
mankind.
American Institute of Industrial Engineers (AIIE) defines Industrial Engineering as follows:
Industrial Engineering is concerned with the design, improvement and installation of
integrated system of men, materials and equipment. It draws upon specialized knowledge
and skills in the mathematical, physical sciences together with the principles and methods
of engineering analysis and design to specify predict and evaluate the results to be obtained
from such systems.
The prime objective of industrial engineering is to increase the productivity by eliminating waste
and non-value adding (unproductive) operations and improving the effective utilization of
resources.
Engineering - a science by which the properties of matter and the sources of energy in nature are
made useful to man. The truth is that engineers and engineering mean many things to many
people. In our discussion on engineering, we want to talk about the branch of engineering known
as Industrial Engineering and, more specifically, Industrial Engineering as it relates to the
apparel industry. Before we do this, however, let's see if we can define some basic terms and
concepts that will make our discussion more meaningful. In this article we will discuss
introductory and continuation will be in the next few articles about industrial engineering. We
are going to reveal department wise application of the industrial engineering in the apparel
industry.
28 | P a g e
Industrial Engineering is the engineering approach applied to all factors, including the human
factor, involved in the production and distribution of products and services. It was just a couple
of years back that demand of an industrial engineer has increased many times. Reason, an
Industrial engineer can do a lot to improve performance of a company. There are numerous tools
and techniques which are used in by industrial engineers to establish an effective production
system in the company.
Scope of apparel engineering:
The two steps of finding the best way to do a job and then timing to find out how long it takes
are referred to as Motion Study and Time Study. Engineers are taught to do the Motion Study
first, as any time study data on incorrect motions is not of much value.
Some uses of apparel engineering are:
Quotas and piece rates
Costing: By knowing how long it takes to perform a job, the total time and cost for
manufacturing a product can be determined. Determine sales price.
Manpower Planning: By knowing how many units one person can produce it can be
determined how many people are needed to produce a given volume.
Machine Requirements: The number of machines required can be determined by knowing
the output from one machine.
Production Planning: Time study enables us to measure the capacity of a plant to
produce. Decision as to how much volume to load into a plant can be made.
These are only a few of the common uses of Motion and Time Study. As we can now see, the
information obtained is useful far beyond just setting quotas and piece rates.
Activities of Industrial Engineering:
Selection of processes and assembling methods.
Selection and design of tools and equipment. Design of facilities including plant
location, layout of building, machine and equipment.
Design and improvement of planning and control system for production, inventory,
quality and plant maintenance and distribution systems.
Development of time standards, costing and performance standards.
Installation of wage incentive schemes.
Design and installation of value engineering and analysis system.
Operation research including mathematical and statistical analysis.
Performance evaluation.
Supplier selection and evaluation.
29 | P a g e
Objectives of Industrial Engineering:
To establish methods for improving the operations and controlling the production costs.
To develop programmers for reducing costs.
Functions of an Industrial Engineer:
Developing the simplest work methods and establishing one best way of doing the work.
Establishing the performance standards as per the standard methods (Standard Time).
To develop a sound wage and incentive schemes.
To aiding the development and designing of a sound inventory control, determination of
economic lot size and work in process for each stage of production.
Development of cost reduction and cost control programmers and to establish standard
costing system.
Sound selection of site and developing a systematic layout for the smooth flow of work
without any interruptions.
Benefits by using engineering in apparel industry:
Work Simplification:
One of the main benefits of almost any engineering effort is that it makes work simpler to
perform. This holds true for operators, supervisors, and top management. When an engineer
analyses any area of work, he does so with the thought in mind. Do not be misled about into
thinking, however, that work simplification means people always will be doing less work. They
may, in fact, do more work but within the same amount of time as before. Because work has
been simplified, people's ability to produce is increased.
Increased Productivity:
The ability to produce more within the same amount of time is a company's insurance for
survival. This ability means that the company can now accept more work. It means that costs can
be lowered by avoiding overtime. It means that fixed costs can be spread out over more units of
production. It means that profits Improve.
Increased Profits:
When a company's profits increase, everyone involved is in a better position. Owners and
stockholders prosper. Management and supervision are rewarded for their performance. Money
is available to do more for the operators. A company is able to expand which creates more Jobs.
30 | P a g e
Increased Earnings:
Most engineering projects not only increase company profits, but also result in higher earnings
for employees. Most companies are willing, and in fact eager, to share with its employees the
financial gains that are available through engineering.
Techniques of Industrial Engineering:
Method study: To establish a standard method of performing a job or an operation after
thorough analysis of the jobs and to establish the layout of production facilities to have a
uniform flow of material without back tracking.
Time study (work measurement): This is a technique used to establish a standard time
for a job or for an operation.
Motion Economy: This is used to analyses the motions employed by the operators do the
work. The principles of motion economy and motion analysis are very useful in mass
production or for short cycle repetitive jobs.
Value Analysis: It ensures that no unnecessary costs are built into the product and it tries
to provide the required functions at the minimum cost. Hence, helps to enhance the worth
of the product.
Financial and non-financial Incentives: These helps to evolve at a rational
compensation for the efforts of the workers.
Production, Planning and Control: This includes the planning for the resources (like
men, materials and machine) proper scheduling and controlling production activities to
ensure the right quantity, quality of product at predetermined time and pre- established
cost.
Inventory Control: To find the economic lot size and the reorder levels for the items so
that the item should be made available to the production at the right time and quantity to
avoid stock out situation and with minimum capital lock-up.
Job Evaluation: This is a technique which is used to determine the relative worth of jobs
of the organization to aid in matching jobs and personnel and to arrive at sound wage
policy.
Material Handling Analysis: To scientifically analysis the movement of materials
through various departments to eliminate unnecessary movement to enhance the
efficiency of material handling.
Ergonomics (Human Engineering): It is concerned with study of relationship between
man and his working conditions to minimize mental and physical stress. It is concerned
with man-machine system.
Application of Industrial Engineering:
The roles and responsibilities of the industrial engineering department are not just limited to
timing operators and making operation bulletins as it is only a part of the job. The I.E function
31 | P a g e
can contribute significantly to improvement in working and productivity of almost all the
departments of apparel manufacturing. Let us discuss few of the activities of various sections of
apparel manufacturing which can be associated with industrial engineering:
Merchandising:
In merchandising section the Industrial engineer can work closely in following:
a) Product Analysis-
Determine the optimum method of construction to achieve required finished product
efficiently.
Establish the operation sequence (Operation bulletin).
Specify the equipment type and work aids to be used
Operation Bulletin is an important tool used for product analysis. Operation bulletin is a
documented form of sequence of operations in a product. It contains all the information about the
machine required and the total no. of operations, total no. of operator required.
Operation bulletin contains the standard times for each operation. Operation bulletin also
contains some other parameters as follows:
Output (pieces per day)
Target efficiency
Minutes per day
Total standard time
Total no of work places
In simple way we can say that operation bulletin is a record of
Equipment type
Machine attachments
Workplace engineering aids
Standard time for each operation
It can be extended to include
Hourly/ period targets for each operation
Manpower Requirements
Equipment Requirements
It should cover all operations that can be directly related to single unit of a product e.g.
Spread and cut
32 | P a g e
Sew including manual operations
Finish and pack
The operation bulletin is a fundamental planning tool used for many functions such as
Capacity planning
Methods engineering
Line planning
Performance measurement
Manpower planning
Investment appraisal
Incentive payment
Factory loading
The operation Bulletin should be developed at the earlier stage of product development.
b) Costing-
The first stage is to calculate the SMV of the garment
To calculate the production cost for that particular garment by multiplying the total SMV
of the garment with the average cost incurred by the factory to produce one SMV.
Production Planning
Production planning is an essential prerequisite to production control. It involves management
decisions on the resources that the firm will require for its manufacturing operations and
selection of these resources to produce the desired goods at the appropriate time and at the least
cost.
Production planning is defined as, the technique of foreseeing or picturing ahead, every step in
a long series of separate operations, each step to be taken in the right place, of the right degree
and at the right time, and each operation to be done at maximum efficiency.
Production planning provide a line for effective, balanced flow of product, incorporating line and
individual (operation) productivity standards. The end product of production planning efforts is
the formulation of production plans. The plans are formulated in light of specified future period.
The plans are to be implemented in the light of the estimated cost and agreed policies
Plant capacity can be calculated by I.E dept so that planning can book order as per the
available capacity.
I.E can assist in better planning by helping in better style allocation to different units or
lines.
33 | P a g e
I.E can formulate an efficiency/performance build-up for a particular style based upon the
work content or past performance. This can inform the planning dept that a particular line
will take how many days to produce a specific quantity of a style. This will help the
planning dept to plan the availability of resources and material in advance.
Production
Industrial engineering is a key part of a production process. One of the basic functions of
engineering is to get facts. These facts may be in form of a time study, the engineer has made or
cost report the engineer has designed. So we can say that the basic need for engineering is the
need for management information.
Work-in-Progress (WIP) control-
WIP is made up of all garments and their parts that are not completely finished. For example a
bundle of shirts that has everything attached but has no bottom hem. There are two cost areas
that can be reduced if WIP is controlled:
Investment in inventory- Inventory is money invested in raw materials. When we dont
move the goods through the plant quickly we are affecting cash flow directly.
Ability to reduce the production cycle- By having low inventory between operations,
garments usually have less waiting time and go through the production cycle in less time.
Large inventory levels between operations keeps goods waiting longer to be processed.
This increases the overall throughput time.
Low throughput time permits better co-ordination between sales and production. It also permits
a quicker turnaround on which improves cash flow. Low cycle times give manufacturers the
ability to handle multiple styles.
Buyers are looking for manufacturers that can meet production schedules, that can handle
multiple styles, and since they want to invest as little as possible in inventory, manufacturers that
can handle low inventories. Only factories that work with low WIP will be able to sell their
services.
Managing WIP:
I) Production planning- This requires planning from marketing and sales to determine what will
sell and what needs to be produced and when. This provides the basis to determine how many
operators and machines will be needed. I.E can calculate the required resources to any style and
block the capacity for this style at a specific efficiency build up.
II) Trims control- Trims are buttons, zippers, labels, thread, elastics, and so on. A cut should
enter the production line only when someone has verified that all the trims needed are available.
34 | P a g e
An updated inventory of trims should be kept. A missing label could halt a 12,000 unit cut.
Holding the 12,000 units in inventory is not acceptable and could lead to other problems.
III) Production Build-up- Careful consideration should be given to loading the production lines.
If you feed into the line more product that can be processed you will overload the line with work
that will just sit stagnant. I.E can provide figures in terms of production to be expected from any
line which can help in feeding control and thus managing the WIP.
IV) Balancing- Even if you load the line based on its capacity, you might find the inventory
accumulating due to an unbalanced production. Absenteeism and turnover can greatly affect the
lines balance. A change in style and irregular feeding are two other factors that can put a line
off-balance. To keep a line balanced you need information on the inventory levels. While
allocating operator to the operation, the skill requirement for that operation should be kept in
mind. To help regain balance in an unbalanced situation industrial engineer can use Utility
operators, operator transfers and overtime as the last option.
V) Cut Flow Control- In order to keep control over WIP and to keep the cycle times low you
need to have cuts go as close as FIFO as possible. For this reason strict control must be placed
on the tracking of cuts as they flow through the production floor.
The industrial engineering is very useful in:
A. Standardization- We can appreciate the need for standard convocations in managing your
department. Think of confusion that would result if each operator on a job performed his or her
work differently from anyone else. Suppose quality specifications changed every day so that
what passed yesterday rejected today. Effective supervision is impossible without
standardization of methods, equipment; and conditions. Engineering helps to standardize.
B. Production Scheduling- In order to run your department efficiently, you need a firm schedule
of production. Suppose there was no way of knowing how more work your section could handle.
Do you think that there would be much of that someone could guess exactly right as to how
much work to load in? Of course not! In order to schedule work accurately, someone needs to
know how long it takes to go through each operation. Engineering data helps to make this
decision.
C. Fair Payment of Employees- In order to pay employees fairly, we need to know the value of
the work they produce, since part of engineering function is to measure work.
D. Prevention of Chaos- Any attempt to run a department without standardized conditions,
without a production schedule, and without fair payment to the employees is doomed to chaos
and failure.
35 | P a g e
So main production functions of engineering are:
A) Develop detailed production methods, from detailed manual moments to major decisions on
technology.
B) Documents all the methods using manuals, computer based system as appropriate.
C) Justify all changes based on analyses of the work content in the operation, taking account of
skill requirements.
D) Define the appropriate WIP level and develop WIP measuring and control techniques.
Maintenance
Proper maintenance leads to better capacity utilization of same asset, avoiding thus the
investment in addition facilities. So far industries have a tendency to neglect maintenance
function, thinking it be a not so important job, however necessary. It has been taken just for
granted. Plant maintenance is important and inevitable service function of an efficient production
system. It helps in maintaining and increasing the operational efficiency of plant facilities and
thus contributes of the revenue by reducing the operating cost and increasing the quality of
quality of the production.
Quality
Quality is an asset, which may be offered to the potential customer of a product. There are two
aspects of quality, which contribute to the ultimate quality of the product. Quality of design is the
first aspect, which depends on the type of materials used, specs specified by the buyer, method of
production, knowledge of the design and skill level of the person. The degree to which this
quality is achieved in production that is the quality of conformance is the second aspect.
Industrial Engineering can help converting quality specifications into technical parameters to
ensure that quality requirements are met with during the manufacturing process. I.E helps in
selecting the equipments and method of the job so as the final product conforms to the
specifications.
36 | P a g e
Capacity Study:
When we make a capacity study on an operator, we are measuring the performance she should
attain if she continues to work at the same pace and use the same method as observed during the
study. This means that at the end of the study we can say that operator has the capacity to be a
120 percent performer" or whatever performance level the study indicates.
What exactly do we mean by capacity? Well, it means the same as capability. It means that the
operator is capable of achieving the performance measured by the study.
Can any of you think of reasons why it would be valuable to know what performance levels your
operators were capable of achieving? Here are some reasons why most supervisors find it useful
to know the production capabilities of their operators:
1. Check Quotas
It is a fairly common occurrence for an operator to complain to her supervisor. I can't make the
quota on this Job. It's too high" When a new quota is set, the supervisor may have a group of
operators making this complaint.
There is often quite a difference between what an operator says she can do and what she can
actually do. This is especially true when new quotas are involved. A capacity check can measure
what performance the operator is capable of achieving and this can be compared to the quota to
test its fairness
The supervisor can then answer the operator's complaint based on facts. Can you see how this
would be helpful to a supervisor?
2. Motivate Operators
One of the main duties of a supervisor is to motivate her operators to perform at the highest level
possible. In many cases, however, operators perform at less than their capabilities simply
because they do not realize what their full capabilities are or do not realize what it would mean to
them to perform at this level.
It is not at all unusual in making capacity studies to discover habitual 90 percent o 95 percent
operators having capacities of 110 percent to 115 percent. Why then are they not performing at
this level if they have the capability?
The word Habitual" may be part of the answer. Some operators get into the habit of being 90
percent performers. Once it becomes a habit, the operator tends to think that 90 percent is all she
can do.
37 | P a g e
Generally speaking, people will do what they think they can do, but usually what they think they
can do is less than what is actually achievable. A good example of this is the Four minute mile".
Until 1954, no human had ever run a mile in less than four minutes. For years people talked
about a four minute mile and many tried but failed and it was just about concluded that there was
a limit to a human's capacity that prevented him from running that fast.
Then in 1954, a medical student in England ran a mile in three minutes and 59 seconds to set a
new world's record and become the first man to break the four minute barrier. Several weeks
later, an Australian ran a mile in three minutes and 58 seconds. Then a German broke four
minutes, and then two Hungarians and finally an American.
Once it had been done, four minutes was no longer considered difficult to achieve and today
running a mile in four minutes is not considered a great accomplishment.
A capacity study is a means of showing an operator that she is capable of more than she realises.
It shows her with facts.
Many supervisors have found capacity studies useful in motivating their operators to higher
performance.
3. Measure Section Production Capability
By measuring individual operator capacities, supervisors can determine the overall capacity of
their sections. The section is simply the sum of the individuals.
This is useful to a supervisor in setting production and performance goals for her section. It can
give the supervisor and her operators common goals to work toward
These things are going to occur regardless of the operator's ability therefore, they are not
considered to be a measure of how she is able to perform her job. When this type delay does
occur, it will cause the operator to take longer on that particular cycle than she normally does. In
making a capacity study, we would circle such a cycle when it occurs and not use it to calculate
our average cycle.
38 | P a g e
How to make a Capacity Study!
The capacity study is a 10-cycle study to estimate an operators production ability. If the
actual production and capacity are different, then follow up studies should be made.
During the capacity study, the operators average time per cycle to sew her operation is
determined. We then assume the operator works at this pace all day and takes the full
amount of lost time (machine delay, personal and fatigue time) provided for in the target.
We call the time left, after lost time has been deducted, the available sewing minutes.
These are divided by the average time per piece to estimate production.
Operators benefit from capacity studies only if you spot wasted motions and make
suggestions and corrections. Results of every capacity study should be reviewed with the
operator.
Allowances:
Allowances are added to the 100% time determined by a time study to give a Standard Time
which will provide the average operator to earn a satisfactory wage, provided there is no
abnormal incidence of delays and she applies herself to her work. These are also used while
estimating an operators capacity. Three categories are recognized: -
1. Machine delay
2. Personal and fatigue
3. Incentive
Machine delay: Delays due to machine stoppage including thread changes, bobbin changes,
cleaning and oiling of machine, first 15 minutes of machine delay, thread breaks, needle breaks,
minor adjustments or changes in folders, attachments, minor delays caused by attachment etc.
The machine delay factor is applied to the total of cyclic elements when the work is largely
machining, although not applied to wholly manipulative work such as clipping or turning parts.
This has the effect of giving a delay allowance on the manipulative elements within a machine
cycle such as pick up garment. On the average, this does not present any problem since the
percentages have been worked out from experience. However, a job with an unusually high or
low percentage of pure work in the cycle would merit a discretionary adjustment to the factor,
and the engineer is expected to be alert for these.
39 | P a g e
Personal and fatigue:
Some aspects of normal required personal time can be quantified, but fatigue itself cannot be
measured. It is also impossible to separate personal and fatigue time because of their inter-
relation with one another. This allowance came into being through guesswork and trial based on
general use. History and experience have proven these allowances to be reasonably correct for a
great many varying situations. Personal and fatigue allowance covers break periods, personal
needs such as water, rest rooms, minor conversations etc.
It should be noted that the machine delay factor is applied to 100% time, and the personal and
fatigue time (with the incentive factor added) is applied to this to give the SAM.
With the help of IE tools like time study and method study, we create operation breakdown and
introduce the concept of SAM in the industry. Here is the OB of one style we prepared there:
Style___#KSK CH-206
Buyer___KOSIUKO
Machine Garment SAM
No of
Operator(s)
SNLS 0.3 1 140
O/L 0.3 1 140
SNLS 0.68 1 62
O/L 0.65 1 65
DNLS 1 2 84
SNLS 0.68 1 62
O/L 0.6 1 70
DNLS 0.82 2 102
SNLS 0.84 2 100
O/L 0.8 1 53
SNLS 1.2 2 70
O/L 1 2 84
SNLS 0.94 2 89
SNLS 0.8 2 105
SNLS 0.3 1 140
SNLS 0.3 1 140
SNLS 0.4 1 105
14 SNLS, 5 O/L & 4 DNLS 15 24 84
Expected Out-
Put (Per Hour)
@70% eff.
PART IV - Main & Wash Care Label
PART I - Shoulder And Neck
PART II - Sleeve Operations
PART III - INSEAM & HEM OPERATIONS
40 | P a g e
For operation SAM and operation criticality, we create a database of SAM calculation which is
as follows:
This SAM database is created on the basis of time and motion study i.e. basically IE. The
procedures are as follows:
Definition of Time Study:
Time study is a method of measuring work for recording the times of performing a certain
specific task or its elements carried out under specified conditions. An operator does same
operation (task) throughout the day. Time study help to define how much time is necessary for
an operator to carry out the task at a defined rate of performance.
Time study tools:
A stop watch
Time study format
One pen or pencil
S.No Operations Type nos of observations Length Time Taken total time
Placket 10 L 3
Shoulder Attachment 10 L 3.2
Dart Preparation 10 L 2.8
Bottom Hemming 10 L 4
Circle attachment 10 L 4.12
Sleeve Hemming 10 L 4.3
Placket 10 L 3
Shoulder Attachment 10 L 3.2
Dart Preparation 10 L 2.8
Sleeve Attachment 10 L 4.8
Piping attachment 10 L 4.92
Gathering 10 L 4.68 4
so, now we have factor of operation Criticality of
critical operations with respect to Easy operation .
i.e.., Total time taken During Critical
operation/Easy operation
Factor of critical operation w.r.t. easy operation = 1.38
1
2
3
Factor of Very critical operation w.r.t. easy operation = 1.6
Easy 9
Critical 12.42
Easy 9
Very
Critical
14.4
so, now we have factor of operation Criticality of
critical operations with respect to Easy operation .
i.e.., Total time taken During Very Critical
operation/Easy operation
41 | P a g e
Time Study Procedures:
An operation cycle consists of material handling, positioning and aligning parts, sewing,
trimming threads and tying and untying a bundle. So in the time study format, divide whole task
into various elements according to the motion sequences of the operation. For example, in
operation collar run stitch, task elements may be i) pick up panel to sew first seam, ii) turn
collar to sew second seam, iii) turn collar to sew third seam iv) check work and dispose and v)
waiting for next pieces.
Step 1: Preparation
Ready with stationeries like time study format, stop watch (digital one) and pencil.
Select one operation for Time study.
Tell the operator that you are going measure time he/she taking to do the job.
Observe the operation carefully and break down operation into elements.
Fill the basic information in the time study format. Like machine category, guide or
attachment used.
Outline steps
Observe job and analyze to determine the elements
define the breakpoints
record the elements
Rate each element to compare with the accepted Standard
try to rate every cycle
Use the stopwatch to time each element select the elements to enable you to do this
This gives the Raw element time
Average the selected element times
This gives the Average element time
Multiply the average element time by the rating
This gives the Basic time for the element
Add the basic times for all of the elements
Make sure the frequencies of the different elements are accounted for In particular bundle
handling will apply once per bundle This gives the Basic time for the operation
Add allowances
Personal and Fatigue and Machine delay. This gives the Standard time for the operation
42 | P a g e
Step 2: Time capturing:
Now measure the time taken for completing each elements of the operation cycle by the operator.
Time should be captured in seconds. Similarly, capture element timing for consecutive 5
operation cycles. During data capturing only note down reading of the stop watch and later
calculate element timing. If we found any abnormal time in any elements record time during time
study and later discard that reading. Or we capture time for one more cycle. Abnormal time may
be occurred due to bobbin change, thread break, power cut or quality issues.
Calculation of Basic time:
From the Reading (R) calculates time taken for each element for all five cycles just by deducting
previous Reading from elemental reading. Sum up times of five cycles for each element. Note, if
we discard any reading than in that case no. of cycles will be four. Calculate average element
times. This average time is called basic time.
Calculation of Standard time:
To convert basic time to normal you have to multiply it with operator performance rating. Here
for example, rating has been taken 100%. Now we have add allowances for machine allowances,
fatigue and personal needs etc. Add machine allowance only to those elements where machine is
running and fatigue and personal needs to all elements. Now we got standard time for each
element in seconds. Sum up all elemental time and convert seconds into minutes. This is
standard minutes or SAM.
Elements & break points:
Definition: Elements are the small components into which an operation is divided for time study
purposes. They are selected for convenience of observation, measurement and analysis.
A break point marks the end of one element and the beginning of the next. The total of all the
elements in an operation represents the operation cycle. The cycle time is the time from one
point on one garment to the same point on the next garment.
43 | P a g e
Operations are divided into elements for the following reasons:
It permits comparison of the same piece of work in different cycles of the operation.
Operators may work at different speeds at different parts of the work cycle. Division into
elements enables these to be graded accordingly. This point is particularly significant
where some of the elements are wholly machine controlled, while in others the operator
is the controlling factor.
Standard elements, occurring on more than one job, can be identified and used to build up
a time for another job.
Elements should be:
Clearly & fully described on the study sheet (except where they are widely recognized).
The break point should be defined if there is any risk of doubt.
Select break points so that they can be easily recognized look for distinctive motion and
listen for distinctive sounds.
Select with a clear distinction between machine & manual work.
Not too short to make timing difficult, not too long to permit operators rating to vary,
and our attention to wander!
Notes on time study:
Be cordial and polite, but do not talk unnecessarily to the operator.
Do not stand in front of the operator. Stand in a less discomforting position, such as off to
the side or in the back.
Never sit down during a time study!
Always calculate the time study results immediately after the date gathering.
Controversy over rating arises from a misunderstanding of what is being rated. An
operators output can vary only if:
1. She varies her pace of work.
2. Varies her method. Method includes the motion pattern, no. of motions and
Inter-motional delays.
When studying, the observer notes the speed at which the operator performs, and
compares this mentally with the concept of the standard pace at which an operator would
work if motivated to apply herself and is free from fatigue (100% operator).
The engineer should:
1. Have a mental concept of the 100% operator.
2. Recognize deviation from the 100% pace and be able to put a relative value onto it.
Do not confuse smooth, fluid motion with slow motion. Dont mistake rhythmic intensity
for fast productive motion.
44 | P a g e
Machine paced operations or elements should be graded 105% to 115%, depending on
the effectiveness of the operator in utilizing the machine cycle to do their job properly.
Before starting a study the engineer must ensure that he understands the correct motion
for the operation, and then checks that the operator is using them. The study should not
be taken if the motion pattern is incorrect unless the engineer is prepared to compensate
for the incorrect motion in his elemental rating or else assures himself/herself that the
discrepancy is insignificant.
Have the quality supervisor or in-line sampler check the bundle. This ensures that the
time standard is not established on an unsatisfactory quality standard.
Non-representative element times are circled. They may arise because:
1. Inclusion of work not identified by the element (such as changing bobbin)
2. Faulty operation of some sort.
3. Missing an element time.
Allowances are added to the 100% time determined by the time study to give a Standard
allowed time which will permit the average operator to earn a satisfactory wage, provided
there are no abnormal delays and she applies herself to her work.
Machine delay includes the following:
Thread changes
Bobbin changes (on lockstitch)
Cleaning & oiling machine
Thread breaks caused by operator, machine & thread
Needle breaks
Minor adjustments or changes in folders and attachments
First 15 minutes of machine delay
The machine delay factor is applied to the total cycle time. This has the effect of
giving a delay allowance on the manipulative elements within a machine cycle such
as pick up garment. On the average this does not present a problem since the
percentage has been developed from actual experience.
Personal & fatigue allowance covers:
Break periods
Personal needs such as water, rest rooms etc
Minor conversations
Factors for loss of pace due to getting tired.
45 | P a g e
To motivate operators in the industry, we proposed some kind of incentives program like
Employee of the month in which operator which will give his/her best performance or perform
best among all operators will be rewarded with some kind of prize.
46 | P a g e
Expected outcomes:
After implementation of our proposal regarding sewing floor or production system or
Industrial Engineering, productivity should increase by 10-15%.
Operator performance will be increased.
Idle time will be reduced by 10-15%.
Line balancing has been done and proper WIP will be created.
opertor