Productivity and Direct Efficiency
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Discussion about some of the Production Key Performance indicator (KPI) and detailed calculation technique
Productivity and Direct Efficiency
- 1. Navneet Dwivedi PGDM-Operations and Supply Chain
- 2. To define few Key Production Performance Indicators (Production KPIs) OEE (Overall Equipment Effectiveness) Direct Efficiency Productivity
- 3. Direct Efficiency Productivity Efficiency of workers involved in production activity only Efficiency and effectiveness of all the workers enrolled in the company Efficiency ?? Effectiveness?? Ratio of input and output Ability to do thing correctly
- 4. Direct Efficiency= ＄ 諮 諮 Productivity= ＄ 諮 諮
- 5. Theoretical Produced Hours ?? Paid Hours ?? Worked Hours ?? Direct Presence Hours Delegation Hours Standard Hours
- 6. 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/unit Standard Hour (Item (a) STHb= (12/60) =0.2 hrs/unit
- 7. Daily Production Report Manpower Details Production Quantity Total Enrolled (TE) 11 Item (b) Item (b) Total Present (TP) 10 Total Produced 183 100 Setup Man 1 Good Items 180 100 Short Leave (hrs) (SL) 4 Scrap 3 0 Overtime (hrs) (OT) 1 Total Time Cycle (min) 10 12 Delegated to Other Dept. Department Nos Duration(hrs) Manhours Stores 1 8 8 Technical Quality 1 4 4 Washing Rework Admin Work 2 4 8 Other Misc Shift Time (ST) 8.5 Break Time (BT) 0.5
- 8. Summary Report Shift Time 8.5 Break Time 0.5 Net Shift Time 8 Production Hour 50 Direct Presence hours 77 Delegated Hours 20 Worked Hours 57 Paid Hours 90.5 Direct 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 hrs Direct Presence Hours= (NST*TP)+OT-SL = (8*10)+1-4 = 77 hrs Delegated Hours = Sum(all delegation man-hours) = 20 hrs Worked 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= ＄ 諮 諮 Productivity= ＄ 諮 諮 87.7 % 55.2 %
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