Subject: Techniques for Operational Efficiency

Chapter: 1 Systematic Problem Solving and Quality Check Tools

Example of Problem in a company

Ideal Situation
* Customers are satisfied
* Workflow is free of bottlenecks
* Resources are utilized for maximum
profits
* Labor problems are minimized
* Breakdown losses are reduced
Real Situation
* High-level of rejections and
cancellations due to faulty products
* Over-use of raw material & scrap
production due to faulty machinery
* Labor force is dissatisfied and over-
worked

Factors responsible for different problems:

Factors Problems
Material & Equipment Over supply of raw materials and large inventory of sub-
standard goods
Machine Frequent breakdown, repairing and high maintenance costs
Method Instructions for operating techniques missing, absence of
inspection during process, and use of wrong techniques
Labor Frequent strikes, careless attitude and over confidence

Types of problems:
Types Examples of problems
Zero Problem As a floor manager in boiler area of a pesticide firm, you
have to solve the problem of recurring accidents
Increase Problem The production of sports goods in your firm has been
augmented by 55% in order to meet the demand created
by National Athletic Field
Decrease Problem You have to solve the problem of high inventory so that
you can minimize inventory costs incurred by your firm

Quality Check Tools 7 in number

1. Check-Sheets: Used to gather and interpret data in form of a list

2. Graphs: Used to represent accurate status (Line / Bar / Pie)
3. Histogram: Used to represent graphically the variations in a process (e.g.
time)
4. Scatter diagrams: Used to represent correlation between two variables (e.g.
frequent accidents and tired workforce)
5. Stratification: Used to group data to identify influencing factor (e.g.
stratification of absent labor in different groups like sick leave, dissatisfied
worker, family issues, weather conditions, etc) <<<looks like an organization
chart>>>
6. Ishikawa / Fishbone Diagram: Used to represent cause of a problem (root
cause analysis). Also called cause-and-effect diagram
7. Paretos Analysis: Used to find most vital cause of a problem
Exercise 1.1: Which tool is used to resolve which problem?
Problem Tool
The functioning of bottling equipment and canning equipment Check-sheets
has to be monitored
The most important cause of accidents in the factory has to be Paretos Analysis
determined
Data on the level of water table has to be depicted with respect Stratification
to different factors
The relationship between wages and productivity of labors in the Scatter Diagram
factory has to be determined
The variation in flavor of canned juices of different batches Histogram
during the year has to be monitored

Exercise 1.2: Possible causes of spoiled juices

To improve operational efficiency of a process / unit, the problem has to be found by

defining gap between real situation and ideal situation.
Chapter: 2 Managing Resources

Quality Circle (QC)

Advantages of implementing QC
Enables staff to participate in key decisions (Staff feels empowered and the
feeling of us-versus-them is removed effectively
Enables streamlining of processes by implementing the solutions proposed in
Quality Circles

5-S technique for material / resource management:

Seiri: Generates space, prevents unnecessary buying,
clarifies items in stock, reduces unnecessary
maintenance of useless items and creates storage
space
Seiton: Allows the materials to be retrieved easily,
minimizes time taken to search and prevents unnecessary purchase
Seiso: Helps identify problem areas such as leaks and cracks, improves
product quality, induces pride in employees and confidence in customers
Seiketsu: Minimizes errors, improves quality through zero defect, inculcates
sense of pride among staff and ensures safe working conditions
Shitsuke: Sustenance of well-managed / well-organized work place, regular
trainings to staff to maintain Standard Operating Procedures (SOP)

Advantages of 5-S technique for material / resource management:

Focus on effective workplace management
Standardized work procedures
Simplification of work processes
Reduction of clutter and non-essential Activities
Improvement in Quality, Efficiency and safety

Exercise 2.1: Which 5-S technique is used by Pamela in which step?

Problem Tool
Pamela sorted all her clothes and other items, discarded Seiri
unnecessary items and returned the borrowed items
Pamela Put the dirty clothes in laundry hamper. She then Seiton
categorized toys and books and decided where to place them
Pamela arranged all her clothes in proper order. The top drawer Seiso
was reserved for school wear, middle one for home wear, and
the next for socks and handkerchiefs
Pamela is so excited by how her room looks that she now Seiketsu
regularly cleans her room, puts dirty clothes in laundry and
arranges books and toys
Pamelas mom is very pleased with the way Pamela keeps her Shitsuke
room now. Although she doesnt supervise Pamelas daily
cleaning, however, she often shows her how to organize items in
a room
Chapter: 3 Statistical Process Control

Statistical Process Control (SPC) The use of statistical analysis to improve quality
by reducing unwanted variations in industrial and management processes and
process capabilities.

Types of variations:
Variations due to Random Cause e.g., someone bumps your elbow when
you are singing
Variations due to Assignable Cause e.g., all documents in your computer
are changed into bar codes due to a virus attack

Random Cause Assignable Cause

Difficult to identify
Large in number
Economically expensive to rectify since
they need fundamental process changes
Insignificant variation per cause, and is
considered inherent part of process
Examples: Poor lightening, bad
workbench conditions, bad maintenance,
poor machine conditions, fluctuations,
etc.
Identified in operating conditions and can
be statistically controlled
Few in number
Economically inexpensive
Large amount of variation per cause
Examples: faulty jigs and fixtures, poorly
trained staff, defective raw material, etc

A process is capable (or under statistical control) when Assignable Causes have been
identified and removed. SPC is used to:
Decide exactly how much variation is allowed in a process
Ensuring defect-free manufacturing / processing by reducing variations
Measure the consistency of processes
Keep processes under control

Tools for SPC:

Control Charts: Used to graphically represent quantitative measurements of a
process and minimize variations
Two types of control charts:
Control charts by variables
Control charts by attributes

Interpreting Charts: Used to graphically control the variation in the process

In these charts there is a Center Line (CL) which represents the exact measurement
of a variable required in a process. There are two more lines representing Upper
Control Limit (UCL) and Lower control Limit (LCL). If a particular variation falls
beyond the area between UCL and LCL, it is considered a major variation. The
control lines are set at a distance of three-sigma above (UCL) and three-sigma below
(LCL) the center line.

Out-of-Control Processes:
A continuous upward pattern indicates that the process is deteriorating with time. A
common reason may be wear and tear of machines.

A cyclic trend (peaks and valleys) indicate that the process faced variations due to
random causes such as worker fatigue, shift change, etc.

Peaks and valleys outside the control limits indicate the poorly trained workers,
defective materials and frequent readjustments of the machines

Another graph which is an outcome of wrong samples being picked up rather than
wrong processes followed. Apart from improper sampling, biased measurement may
also cause such a type of graph
Exercise 3.1: What can be concluded from appearance of the graph?

This shows that the operators of the unit are not trained properly

Zone Tests:
Zone tests are used to enhance the ability of the control charts to detect / study
small shifts in the process. The dividing line of each zone is exactly one third the
distance between center line and the UCL or LCL.

Nine points in Zone C or beyond: This pattern indicates that the process average has
changed. It is a useful test to alert the quality control engineer to potential shifts in
the process

Two out of three points in a row in Zone A or beyond: This pattern provides early
warning of a process shift

[False-positive error rate = 2%]

Four out of five points in a row in Zone B or beyond: This is also an early warning
indicator for a potential process shift

[False-positive error rate = 2%]

15 points in a row in Zone C: A small variability than is expected based on the
Control Limit points in the graph

Eight points in a row in Zone A or B or beyond in either side of the centerline: This
test indicates that different samples are affected by different factors, resulting in
bimodal distribution of modes.

A process which is in statistical control need not necessarily produce product or

services that meet the design specification of a product or service. To ensure that
the process is meeting design specifications, we need to measure the process
capability by calculating two indices of process capability CP and CPK
CP calculates the capability of a process by measuring overall process performance
considering both positive and negative deviations.
CP = (USL LSL) / 6 sigma
Typical features of CP are:
These have no upper limits
This doesnt take into account any non-centering of a process
Non-centering reduces margin of safety

CPK calculates the capability of a process by measuring clustering effect on the

Upper and Lower specification limits.
CPK = MIN [USL x.bar / 3 sigma, (x.bar LSL) / 3 sigma]
Exercise 3.2: Estimating Process Capability

Step 1: What is the CP of the machine?

USL = 25 + 0.02 = 25.02
LSL = 25 0.02 = 24.98
Sigma = ?
CP = (USL LSL)/6 sigma = (25.02 24.98) / (6 * 0.01973) = 0.337

Step 2: What is the CPK of the machine?

CPK = MIN [USL x.bar / 3 sigma, (x.bar LSL) / 3 sigma]
= MIN [(25.02 25.01) / (3 * 0.01973), (25.01 24.98) / (3 * 0.01973)]
= MIN [0.1689, 0.5068]
= 0.1689

Step 3: Is the process capable of meeting specifications? (Yes / No)

No, because process variation exceeds specification limits when CP < 1

Step 4: Is the process correctly centered? (Yes / No)

No, because CP < 1

Variations are not only unproductive but also expensive. For an operation to be a
success it is very important to eliminate or at least minimize the variations
Chapter: 4 Total Productive Maintenance

Total Productive Maintenance (TPM) is a continuous improvement strategy that

involves an innovative approach to maintenance that improves and maximizes
equipment effectiveness. Advantages of TPM:
TPM works with full support of management and cascades down to lowest
level
TPM shows quick results but is not a quick one-time solution for all problems.
TPM is proactive, as all employees are trained to anticipate problems that
may arise, instead of reporting only when there is a breakdown
TPM works well in small group of employees and allows greater participation /
involvement, improved morale and development of those involved
TPM increases equipment availability and quality and at the same time
decreases production costs and industrial accidents.

Pillars of Total Productive Maintenance:

Jishu-Hozen: Begin by cleaning, inspecting, lubricating and performing corrective
action on the machinery (daily chores) [Adv: System fell in place]
Kobestu-Kaizen: Used to handle chronic problems, done by finding route cause of
the problem, suggest and implement the most effective solution, test it and display
the results. [Adv: Losses dealing with breakdown, speed, defects, setup, etc were
removed]
Planned Maintenance: Corrective, preventive and productive maintenance
involved. Replacement of unsatisfactory equipments, improvements in design
weaknesses were made to achieve zero defects and maximize MTBF (Meantime
between failures)
Quality Maintenance: Checklists were used to maintain quality and train workers
on TPM
Initial Equipment Control:
Education & Training:
Office TPM: TPM was used not just to maintain machines and upgrade skills of
workers, but also for improving office administration. The TPM Standards for office
include:
Uncluttered, paperless work desk
Automated office space, where files are easily available
Short and to the point meetings
Optimum inventory available
Minimal and non-repetitive manual work
Safety, Hygiene & Environmental Control: TPM Standards for zero accidents,
zero diseases and zero pollution include:
Preparation of safety manual
Audits on safety and hygienic conditions
Safety work permit system and upgrading the pollution control system
Safety award scheme
Campaign on awareness of safety and environmental issues
Regular monitoring of accidents
Environmental review
Eliminating spills and leakages
Tree plantation

OPE = Overall Plant Efficiency (e.g., gone up by 1.5 times)

OEE = Overall Equipment Effectiveness (e.g., gone up by 90%)
Exercise 4.1:

Steps for implementing TPM:

1. Announcement by Upper Management about implementation of TPM in the
organization
2. Initial Education and propaganda for TPM
3. Setting up TPM Committees for TPM Pillars
4. Establishing basic policy and target and master plan for TPM Implementation
5. TPM kick-off events
6. Implementing all TPM pillar activities
7. Total application of TPM, monitoring implementation on continuous basis and
raising its level.

Exercise 4.2: