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Navneet DwivediPGDM-Operations and Supply Chain
Direct Efficiency and Productivity
To define few Key Production Performance Indicators (Production KPIs)
◦ OEE (Overall Equipment Effectiveness)
◦ Direct Efficiency
◦ Productivity
Agenda
Direct Efficiency
Direct Efficiency & Productivity
Productivity
Efficiency of workers involved in production activity onlyEfficiency and effectiveness of all the workers enrolled in the company
Efficiency ?? Effectiveness??Ratio of input and outputAbility to do thing correctly
Why Direct Efficiency & Productivity ?
Direct Efficiency= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠𝑊𝑜𝑟𝑘𝑒𝑑𝐻𝑜𝑢𝑟𝑠
Productivity= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠𝑃𝑎𝑖𝑑 𝐻𝑜𝑢𝑟𝑠
Theoretical Produced Hours ??Paid Hours ??
Worked Hours ??
Direct Presence Hours
Delegation Hours
Standard Hours
Lets see an example
Punching (2 min)
Trimming (1 min)
Drawing (3 min)
Buffing (2 min)
Packaging (2 min)
Cutting (1 min)
Deburring (1 min)
Drilling (3 min)
Bending (5min)
Washing (2 min)
(a)
(b)
Process
Process Flow Total Time
10 min
12 min
Thus we have Total Time Cycle for Process (a) TTCa =10 minutes Total Time Cycle for Process (a) TTCb =12 minutes
Standard Hour (Item (a) STHa= (10/60) =0.1667 hrs/unitStandard Hour (Item (a) STHb= (12/60) =0.2 hrs/unit
Daily Production ReportManpower Details Production Quantity
Total Enrolled (TE) 11 Item (b) Item (b)Total Present (TP) 10 Total Produced 183 100Setup Man 1 Good Items 180 100Short Leave (hrs) (SL) 4 Scrap 3 0Overtime (hrs) (OT) 1 Total Time Cycle (min) 10 12
Delegated to Other Dept.Department Nos Duration(hrs) Manhours
Stores 1 8 8Technical Quality 1 4 4
Washing Rework
Admin Work 2 4 8Other Misc
Shift Time (ST) 8.5Break Time (BT) 0.5
Calculation Summary Report
Shift Time 8.5Break Time 0.5
Net Shift Time 8Production Hour 50
Direct Presence hours 77Delegated Hours 20
Worked Hours 57Paid Hours 90.5Direct Eff. 87.7%
Productivity 55.2%
Production Hour= (STHa*Qtya) + (STHb*Qtyb= ((10/60)*180)+ ((12/60)*100)= 50 hrs
.Net Shift Time(NST)=Shift Time-Break Time
=8.5 -0.5= 8 hrsDirect Presence Hours= (NST*TP)+OT-SL
= (8*10)+1-4 = 77 hrsDelegated Hours = Sum(all delegation man-hours)
= 20 hrsWorked Hours = D.Presence Hrs- Delegated Hrs
= 77-20 = 57 hrs
Paid Hours=(ST*TE)+OT-SL =(11*8.5)+1-4 = 90.5 hrs Direct Efficiency= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠
𝑊𝑜𝑟𝑘𝑒𝑑𝐻𝑜𝑢𝑟𝑠Productivity= h𝑇 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑𝐻𝑜𝑢𝑟𝑠𝑃𝑎𝑖𝑑 𝐻𝑜𝑢𝑟𝑠
87.7 %55.2 %
Thankyou
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