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BASIC INDUSTRIAL ENGINEERING TERMS

BASIC INDUSTRIAL ENGINEERING TERMS. PRESENTED BY, SHARMIN AKTHER DIBA EXECUTIVE,CENTRAL IE METRO KNITTING & DYEING MILLS LTD. BEACON KNITWEAR LTD . http://Ordnur.com. WHAT IS INDUSTRIAL ENGINEERING ?. DEALS WITH OPTIMIZATION OF COMPLEX PROCESSES,SYSTEMS OR METHODS

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BASIC INDUSTRIAL ENGINEERING TERMS

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  1. BASIC INDUSTRIAL ENGINEERING TERMS PRESENTED BY, SHARMIN AKTHER DIBA EXECUTIVE,CENTRAL IE METRO KNITTING & DYEING MILLS LTD. BEACON KNITWEAR LTD. http://Ordnur.com

  2. WHAT IS INDUSTRIAL ENGINEERING ? • DEALS WITH OPTIMIZATION OF COMPLEX PROCESSES,SYSTEMS OR METHODS • OPTIMIZATION OF 5M (MAN,M/C,MATERIAL,METHOD & MONEY) INSTEAD OF REDUCTION. • INDUSTRAIL EMGINEERING IS A COMBINATION OF ANALYSIS,MEASURE,PLAN,ACT & RESULT • IT’S AN ORGANIZATIONAL APPROACH TO GET MAX RESULT USING MIN EFFORT • IE = PROD ⤒ COST ⤓ MP ⤓ EFFICIENCY ⤒ QUALITY ⤒ PROFIT ⤒ • EVERENDING DYNAMIC APPROACH TO IMPROVE • ITS WHERE ENGINEERING MEETS WITH BUSINESS

  3. STANDARD MINUTE VALUE(SMV) • SMVdefined as " Time taken by a standard worker to perform the task with pre-defined conditions" • SMV = BASIC TIME + (BASIC TIME × ALLOWANCE) • Suppose to complete an operation, an standard operator takes 1 minute. • We put 15% allowance(Men, M/c & Time) • SMV=1+(1×.15) Min =(1+.15) Min =1.15 Min • GMT SMV is the sum of SMV for all M/c & Manual operation to complete an item

  4. RELATED TERMS TO SMV(Cont..) • Standard Operator : For a specific item & style, the potential operator who can give maximum output with best quality & can improve productivity. • Lets see an Example for better understanding, • Batsman faces 10 balls to score 5 Runs • Batsman faces 10 balls to score 12 runs • Batsman faces 10 balls to score 10 runs. • Obviously 2nd one is the potential batsman who uses his inputs(balls) to get maximum output(Runs)

  5. RELATED TERMS TO SMV • Pre-defined Conditions : On time input arrival, single piece flow, running m/c conditions, defined quality status etc. are called pre-defined conditions. • Basic Time : Actual time to complete an operation. In other word, basic time is the pick & drop time including operation for quality output. Basic Time= Pick time + Operation + Drop time; Result , Input=Output with required quality • In a broad sense , a GMT SMV=Sum of all operation SMV, not SMV of GMT + allowance.

  6. EFFICIENCY • EFFICIENCY defined as ‘’The comparison of what is actually produced or performed with what can be achieved with the same consumption of resources (Men, M/c, Material etc. )’’ • EFFICIENCY = EARNED MINUTE/AVAILABLE MINUTE • EARNED MINUTE = PRODUCTION(PCs) × SMV • AVAILABLE MINUTE = MANPOWER(HEL+OPR) × WORKING TIME(MIN)

  7. EFFICIENCY % CALCULATION • Suppose any GMT item SMV is 5.5 (For any fixed style SMV always fixed) • We use 22 Manpower(Operator & Helper) to achieve 1500 Pcs for 10 hour working shift • EARNED MINUTE = 1500× 5.5 or 8250 Min • AVAILABLE MINUTE = 22× (10×60) or 13200 Min • EFFICIENCY = 8250 Min/13200 Min or 0.625 • Efficiency is expressed as % ,Then EFFICIENCY =(0.625 ×100)% or 62.50% • Efficiency is a ratio , not a number. • Efficiency vary with LEAD TIME & QUANTITY . More Lead time & Quantity Increase Efficiency , on the other hand less lead time tends us to use more MP or time to get required output , so efficiency reduces.

  8. LINE TARGET • Target= (total MP X WH X 60)/SMV • Suppose We have 22 MP for 10 hr .GMT SMV is 5.5 • TGT=(22 X10 X60)/5.5 =2400 PCs/Hr (That is 100% TGT) • For expected efficiency this 100% TGT is multiplied by efficiency to fix Line Target • LINE TGT=(2400X.625) ;[Lets , we have expected efficiency of 62.5%) =1500 PCs or 150PCs/Hr

  9. CPM & CM • Minute cost or Cost per Minute(CPM) calculation for the garments sewing line is too much needy to earn maximum profit from an export order. • CPM (Cost Per Minutes)= (Direct Labor Cost + Operational Cost)of the month/ Usage Minutes (Available Minutes) of the month.

  10. CM/COM/MC • Cost of Making(CM/COM)/Manufacturing cost(MC) have to calculate after calculating factory CPM. • CM= (SMV × CPM)/ Expected Efficiency% • Suppose , any GMT item SMV is 5.5,Expected efficiency = 62.5 % , CPM[let] = $0.0264 • CM = (5.5 × .0264)/ .625 = $0.23/PCs = ($0.23 ×12)/Dzn =$2.79 /Dzn

  11. Broad Calculation of Garments CM To find out the CM (Cost of Making) of a item you must need the following 06 (six) information at first, as listed below: i. Monthly total expenditure of your factory with factory rent, commercial cost, electricity bill, water bill, transportation, repairing, worker & stuff wages etc. (8hrs/day) in Bangla taka. Suppose -50,00,000/-tk ii. Qty of running Machine of your factory of the following month (which total expenditure we have consider here). Suppose -100 machines. iii. Number of machine to complete the layout for the following Items (which CM we are calculating). Suppose- 25 machines. iv. Production target/capacity of the following items, per hour from the existing layout, excluding alter & reject. Suppose-200 pcs per hour. v. Total working day of the followings month,(though the house rent, commercial expenses, machine overhauling & some other cost remain same) Suppose-26 days. vi. If you want to calculate the CM in US$ (dollar) then pls input present dollar conversation Rate BDT Suppose- $1 = 80 taka.

  12. COST OF MAKING (CM) RULE: ={(Monthly total expenditure of the following factory/ 26) / (Qty of running Machine of your factory of the following month) X (Number of machine to complete the layout)} / [{(Production capacity per hr from the existing layout, excluding alter & reject) X 8}] X 12 / (Dollar conversion rate) = [{(50,00,000 / 26) / ( 100) X (25)} / {(200) X 8}] X 12 / 74 = [{192307.7 / (100) X (25) } / 1600] X 12 / 74 = (48,076.9 / 1600) X 12 / 74 = 30.048 X 12 / 74 = 360.58 / 74 = $4.873 / dozen (this is the making cost (12 pcs) of the following items) However, normally at present (after starting the new salary scale) in Bangladesh we calculate the CM of any item consider the overhead sewing machine cost 1200 tk to 1400 tk/day that means $16.216 to $18.92/per day. Above is for a non-compliance factory. For the a compliance factory the per day machine cost will be 1800 tk to 2100 tk ( $24.32 to $28.37) SO, if the an items produce 1600 pcs per day using 25machines then the CM will be = Overhead machine cost X require machine / produce quantity X 12 / $74 = 1400 X 25 / 1600 X 12 / 74 = $3.547/DOZ

  13. CONVENTIONAL VS MODERN PROFIT THEORY • Conventional : COST + PROFIT = PRICE • Modern : PRICE – COST = PROFIT • Price should be moderate to get maximum order ! • Cost should be minimized to get maximum profit !

  14. WORK STUDY • SYSTEMATIC STUDY OF METHODS OF WORK TO IMPROVE EFFECTIVENESS & SET STANDARDS • 2 STAGES : 1. METHOD STUDY : STUDY OF CURRENT METHOD & FIND OUT TO IMPLEMENT IMPROVED METHOD 2. WORK MEASUREMENT : DETERMINE THE STANDARD TIME REQUIRED TO COMPLETE IMPROVED METHOD • BENEFITS OF WORK STUDY : • PRODUCTIVITY IMPROVEMENT • EFFICIENCY INCRESE • IMPROVED WORK FLOW • IMPROVED WORK LAYOUT • IMPROVED STANDARDS

  15. TIME & MOTION STUDY • TIME STUDY : A WORK MEASURING TECHNIQUE TO CALCULATE BASIC TIME BY FINDING CYCLE TIME & ADDING ALLOWANCE • MOTION STUDY : A TECHNIQUE TO ANALYZE OPERATORS MOTION & SET STANDARD BY ELIMINATING UNNECESSARY MOTION • TWO DIFFERENT THEORY BUT NEED PARALLEL RUNNING TO IMPROVE SYSTEM KNOWN AS ‘METHOD ENGINEERING’ • TIME & MOTION STUDY IS A CONJUGAL TECHNIQUE TO PROCESS CONTROL,IMPROVE DISSIMILAR WORK PERFORMANCE & SET STANDARD GOALS ‘’IE IS A COMBINE PACKAGE TO IMPROVE BY TIME STUDY,WORK STUDY & MOTION STUDY’’

  16. LINE BALANCING • LINE BALANCING IS A MANUFACTURING ENGINEERING FUNCTION IN WHICH WHOLE COLLECTION OF PRODUCTION-LINE TASKS ARE DIVIDED INTO EQUAL PORTIONS. • WELL BALANCED LINES AVOID LABOR IDLENESS & IMPROVE PRODUCTIVITY • LINE BALANCING IS FOR KEEPING WORK LOAD(THEARETICAL MP/ACTUAL MP) AS 1 OR LESS THEN 1 BY BALANCING WORK AS PER CAPACITY & TARGET

  17. STEPS FOR LINE BALANCING

  18. EXAMPLE-LINE BALANCING FOR ITEAM T-SHIRT

  19. CORE LESSON FROM LEARNING • SMV & IT’S USE IN GARMENTS/APPAREL INDUSTRY • EFFICIENCY CALCULATION & ITS RELEVANT TERMS • CPM & CM CALCULATION FOR GARMENTS INDUSTRY • WORK STUDY,TIME & MOTION STUDY • LINE BALANCING & HOW TO APPLY PRACTICALLY

  20. THANK YOU

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