BASIC INDUSTRIAL ENGINEERING TERMS PRESENTED BY SHARMIN AKTHER

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 OPTIMIZATION OF 5 M (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 � EVERENDING DYNAMIC APPROACH TO IMPROVE ITS WHERE ENGINEERING MEETS WITH BUSINESS MP � EFFICIENCY � QUALITY ⤒ PROFIT ⤒

STANDARD MINUTE VALUE(SMV) SMV defined as " Time taken by a standard worker to perform the task with predefined 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

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. • Suppose Lets see an Example for better understanding, Minimum 100 Pcs Cutting Input I. Batsman faces 10 balls to score 5 Runs Input II. Batsman faces 10 balls to score 12 runs • Operator takes 1 hr III. Batsman faces 10 balls to score 10 runs. transform Operation 100 inputs nd to 95 Obviously 2 one is the potential batsman who uses his outputs inputs(balls) to get maximum output(Runs) Maximum output • Standard operator

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.

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)

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.

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 X 10 X 60)/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=(2400 X. 625) ; [Lets , we have expected efficiency of 62. 5%) =1500 PCs or 150 PCs/Hr

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.

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

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. (8 hrs/day) in Bangla taka. Suppose -50, 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.

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, 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 25 machines 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

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

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 : 1. PRODUCTIVITY IMPROVEMENT 2. EFFICIENCY INCRESE 3. IMPROVED WORK FLOW 4. IMPROVED WORK LAYOUT 5. IMPROVED STANDARDS

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’’

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 LINE LAYOUT CAPACITY STUDY CAPACITY GRAPH FIND BOTTLENECK METHOD ENGINEERIN G LINE BALANCING

STEPS FOR LINE BALANCING ‘BOTTLENECK’ (CONSTRAINT M/C OR MP OR OPERATION THAT REDUCES PRODUCTIVITY) HAVE TO FIND OUT FIND SAME M/C / M/C CONDITION SUCH AS GAUGE/PRESSURE FEET/DEVICE/THREAD ETC FIND OUT OPERATION TO BALANCE WITH BOTTLENECK BY CHECKING WITH HIGER CAPACITY BALANCING OPERATOR TIME STUDY , MOTION STUDY & PRODUCTION STUDY FIND BALANCED OPERATION EVERY MOTION CT(CYCLE TIME) ELIMINATING NON VALUE ADDED TIME & SAM & CAPACITY CALCULATION OPERATION BALANCING/HR ACCORDING TO TARGET & BALANCED OPERATOR CAPACITY

EXAMPLE-LINE BALANCING FOR ITEAM TSHIRT SL NO. OPERATIONS M/C /HELPER MP IMBALANCED CAPACITY/HR BALANCING OPERATION 4 TH/OL 2 162 NO FLAT BED 1 160 NO SNLS 1 164 NO 4 TH/OL 1 180 160 BALANCE (6) 20 PCs/HR SNLS 1 162 NO 4 TH/OL 2 140 160 BALANCE WITH (4) SNLS 1 161 NO 4 TH/OL 2 160 NO 1 Front n back n 1 st shoulder join with / without tape 2 Neck binding 3 2 nd Shoulder inner tack 4 2 nd shoulder join with / without tape 5 Secure 2 nd shoulder @ neck 6 Sleeve n body match n insert sleeve 7 Care Label Make 8 Side/ sleeve Seams inc. care label and Gmts turns 9 Sleeve hem 2 TFL 2 130 160 BALANCE WITH (10) 10 Bottom Hem 2 TFL 1 190 160 BALANCE (9) 30 PCs/HR 11 Thread trims & sticker remove MNL 1 165 NO

IMBALANCED CAPACITY GRAPH 200 180 160 140 120 100 80 60 40 20 0 162 160 Front n back n Neck binding 1 st shoulder join with / without tape 164 2 nd Shoulder inner tack 180 2 nd shoulder join with / without tape 162 Secure 2 nd shoulder @ neck 140 Sleeve n body match n insert sleeve 161 Care Label Make 160 Side/ sleeve Seams inc. care label and Gmts turns 190 165 130 Sleeve hem Bottom Hem Thread trims & sticker remove BALANCED CAPACITY GRAPH(LINE BALANCING) 200 180 160 140 120 100 80 60 40 20 0 162 160 Front n back n Neck binding 1 st shoulder join with / without tape 164 2 nd Shoulder inner tack 160 2 nd shoulder join with / without tape 162 Secure 2 nd shoulder @ neck 160 Sleeve n body match n insert sleeve 161 Care Label Make 160 Side/ sleeve Seams inc. care label and Gmts turns 160 Sleeve hem 160 165 Bottom Hem Thread trims & sticker remove

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

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