Industrial Engineering Study

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This project of Fettling Study as part of contract system, was identified for the reason, that the activity is very critical and crucial to the dispatches which the ...
Industrial Engineering Study Fettling Template

October, 2010

Dr. Krishnan Umachandran

Summary This project of Fettling Study as part of contract system, was identified for the reason, that the activity is very critical and crucial to the dispatches which the organization has committed and is liable to the customers. The existing state of affairs was that there is a PULL demand for the fettling activity and further the fettlers were also demanding for price rise (the organization had by then also issued price rise for the following 10 items*). Scenario The impact of recession on the foundry which went to a bottom low of around 600MT per month in 2008 rejuvenates back to 3000 plus MT per month in 2010 - this situation created pressure on all the resources concerned with the fettling activity. The management to jack-up the productivity had to give-in some way

to motivate and also to build up

a good relationship with the existing contractors. During the study the existing contractors were 26 in number; a new shed had by then also come up adjacent to the factory having 5 contractors, in addition to this there were some fettling contractors

(from Coimbatore) being

evolved as new sources under the leadership of the Post Production GM . Out of many outsourced/ contract activities, fettling was chosen because, it was investigating

already

team

covered

thought

that

under fettling

SAP (ERP system) the study

can

have

an

immediate opportunity for implementation and regularization with the Enterprise Resource Planning System. Based on the learning other activities can be covered for study. Pre-study facilitation was done by personally inviting all the fettling contractors to come up for a meeting and identify ways and means for improving productivity. The Meeting was attended by 13 Fettling Contractors, State holders (HOD’s & Study Team).

CONCERN. The sample study on 3 Bore Cylinder was conducted and presented to the Senior Management Team for Pre-Alignment before commencing the study on the remaining items at P1. Approach to Study The payments done to the fettlers are done on the basis of weight of the casting, on a adhoc conversion ratio of cost per ton. The team identified the need to study the “extend of work” that is required to be paid and not the weight of the costing. However, the weight of casting needs to counted only when physical handling of the casting takes place.

Equation 1 Extend of work i.e, EOW = Manual Effort (volumetric removal of metal) from the casting + Manual Effort (Handle) the Casting while fettling Equation 2 Cost of Fettling i.e, COF = EOW + Overheads + Travel Cost Equation 3 Payment for Fettling i.e, POF = COF + Margin Equation 4 Motivation to perform Relative Scales 1. Manual Effort : Linked to Minimum wages applicable in the area. 2. Overheads : Based on the past 6 months trend equated with the volume handled (Electricity, Rent & Travel ) 3. Margin : profit and business benefit. The current report carries the following. 1.

Time study on individual sub-activities of Fettling operation (chipping, Swing frame grinding, Cutter wheel grinding and A11 Stone grinding).

2.

Time study on handling the item ( Loading, Unloading)

3.

Weight of the raw casting

4.

Fins and Flashes retrieved during the fettling process.

5.

Overheads per minute at the fettlers end (Rent, Power, Cutting tools and consumables)

6.

Transportation cost (to and from the fettlers site).

7.

Comparison of existing price with the study price calculations.

8.

Items on which the Organization or Fettler has a gain / loss with respect to the current pricing.

9.

Scope for Management on “Future Pricing”

10.

Productivity possible per shift (with the existing facilities)

11.

Motivation possibility to enhance Productivity, quality and Turn around time (TAT)

Pre-Final Alignment

Introduction

Fettling Study - Process Flow Time Lines

Work Load

Manpower Costs

Motivation ? To motivate those contractors who achieve the targets set by the organization the following plan of enablers are specified Motivational Objectives of the Study

•To identify factors affecting Fettling - Root cause • To increase the Fettling Productivity • To iron-out the loss (Direct & Indirect) • Basis for Future Products Hurdles

• Pattern Shop Skills • New Work force in KW • Quality target for ARPA Operations • Strict Process Control • Wanton Contractors • Cost targets for Executives Expectations on Fettlers

• Timely Delivery (24 hrs) • Increase Productivity from

existing level of 5 MT/ day per

each contractor

• Return Scrap (or Payment adjust) • Flexible / Progressive Targets (Differential Pricing as per volumes)

Price = x1 + x2 + x3 + x4 Motivational Price = share from % of gain (more study needed)

As the sub activities are carried out in parallel, the optimum output possible depends upon the Critical time consuming activity.  Productivity Possible per Shift with in the existing facilities  Turn around time  Effort on Machining  Effort on Handling  Effort of Work  Fins Recovery  Fettling Time per item  Cost of Fettling per item  Payment of Fettling per item  Scope for Future Price Rise (Without Fins return)

References 1.Krishnan Umachandran,(2014),Roles-Responsibility-Authority (Managers & Supervisors) 2. Krishnan Umachandran,(2014),Applying POM in Organizing-Scenario

3.Krishnan Umachandran,(2014),Ergonomical adaptions. 4.Krishnan Umachandran,(2014),MANUFACTURING EXCELLENCE