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Productivity Techniques – 2015 Paper Solve.What is Productivity? What was the Learning’s from the Case study – Super Market Woman Discussed in Class?Answer: ProcessProductivity - Input OutputWaste (MUDA)Productivity = Output InputAccording to ILO Definition Productivity is the ratio between “Output of work” and “Input of Resources” used in the process of creating wealthFor e.g. A worker produces 100 pieces is now able to produce 130 pieces after undergoing training session. The productivity of worker has increased by 30% A farmer used natural fertilizer for his land, after which the yield of rice increased from 200 quintals/hectare to 300 quintals/hectare.Productivity of land has increased by 50%Learning from Video: Synopsis of Case Study Supermarket Woman Revolves around the story of a local grocery store, Goro’s that has to face a new challenger in the undercutting Bargain's Galore. The owner of Goro's is despondent, until a chance encounter with former classmate Hanako who gives him a ray of hope. Hanako convinces Goro to set up his store around the needs of the housewives who do all of the shopping, and the idea of pushing quality rather than shoddy quantity.Hanako points out all the faults of that store too. She starts to modify the way business is done at the store, and gradually, the store starts seeing more and more customers. Supermarket Woman is really about how products are sold to us, the consumers, and how we need to be savvy enough to not be taken in by the tactics and outright trickery of the more unscrupulous.Basically in This Movie Main Customer is Housewife. In this Case Study Hanako helps to improve customer service and introduces new sales techniques and a policy of selling only fresh food. However, in doing so she angers senior staff members who don't want to change their ways. However, the store gradually attracts more customers. Despite the resistance of the two-timing store manager and the entrenched "pros" in the back (the butcher, the fishmonger etc.), Hanako gradually manages to change things around, relying on her housewife's savvy. The point is made again and again that as far as supermarket shopping is concerned, moms and housewives are the ones making the purchasing decisions, and they know best, rather than the "pros".Meanwhile, the manager of 'Honest Goro' is taking back-handers from 'Bargains Galore', and eventually resigns to start work at the new supermarket, trying to take the rest of the staff with him. After an impassioned speech by Hanako, the majority decide to remain loyal to Goro, and redouble their efforts to provide customer satisfaction.Learning can be given on basis of following Five Areas:1) Human Resources:Prevention of Unethical Business Practices which is necessary in today’s business world as it ruins business in Future.Appropriate Change ManagementQuick Problem Solving Skills Quick Decision Making AbilityCapability to Retain ManpowerGreat Leadership Quality (Both Goro & Hanako Leading from Front)Proper use of Human ResourcesHonestyGood Customer Relationship ManagementPrioritizing customer satisfactionScrapping of old Policies & Introduction of New ones to sell fresh foods to customers which indicates customer centric and customer welfare approachGoro’s Urge to Become Best in Business Attending Customers Complaints & Acceptance of Mistakes by Hanako:This is in one of the incident when there is difference between actual price and labeled price of that itemMotivation to workers:Bringing Multitaskingness in workers/StaffInnovative Thinking for Business Keeping Continuous Cleanliness of Supermarket which is appreciableFuturistic Thinking – Hanako Tells Goro that how housewife can bring happiness to her house by buying all needed items from supermarketKeeping Inter-personal Conflicts away.Regulation & Rules to everyone – As Hanako tries to tell Politian’s wife to follow rules of not bringing pet inside the store market2) MarketingGood Market Research Door to door marketingGood Sales Forecasting SkillsExcellent Market Visualization & Immediate Thinking By Hanako as she observes that Rival’s Market sale is low in morning time and suggests that they should capture this opportunityLowering Prices of Leftover Items Instead of Throwing which experiment goes successful as more customers buys it.Providing Exciting Offers to Customers – Egg Coupons to customers valid for one weekGood knowledge of customer needs – As Hanako tells Goro in one incident that customer always looks for Better & Cheaper.Greeting to Customers by Saying Big Thank you & Have a Nice day which attract customer to visit shop once again – which shows nice quality of Hanako3) FinanceAppropriate Identification of Opportunity CostTo Cover Loss – Raising Price on Regular MealsGood knowledge of Financing Skills.Effective analysis of sales figures4) ITAssembly Line OperationsConveyor Belts Technology5) OperationsKaizen Technique useExcellent Supply ChainAssembly line OperationsBeing at Gemba – Hanako always used to be present at Gemba(Workplace) to avoid all unethical practices and to guide and give suggestions to Staff.Transferring Operation & Delegation of CostFocus on Quality –Incident of Rice BallsGood Inventory ManagementAppropriate use of Value Stream MappingDifferential DiagnosisCorrect Identification of MUDA (Wastes) by HanakoWrite Short Note On :Answer: Problem Solving Techniques: KanbanAnswer: Kanban in Japanese means a Card. It is an order card. Whenever someone requires an item, he posts a Kanban (one Kanban for each piece) stating the time and place the item is required, on the bulletin board of the concerned supplying department. It is posted with just the adequate notice for manufacturing of the item. Thus, Kanban serves the purpose of “supply order”. Concerned department starts manufacturing/procurement of the item only on receipt of the Kanban. Once the item is ready, the Kanban card is attached to the item and sent to the demanding department.5S7 QC ToolsAnswer: 1. Stratification:-What we see as problems is actually the symptom (effect) of the problems. Root cause lies somewhere else. Often, there could be more than one cause having same symptoms and what we experience is the combined effect of all the causes.??Thus, there is a need to identify the root causes and their individual effects On performance. This process is called stratification.??Need skills and expertise to do stratificationEg. Problem: Low output on a dayCauses: 1st shift - machine breakdown, 2nd shift power cut, 3rd shift – raw materials shortage. Conclusion: Problem is same but reasons are different2. Cause & Effect diagram (Fishbone or Ishikawa Diagram)It is an investigative tool. Rearrange possible causes of the problem. All the possible causes are identified by brain storming method. Segregate into 4 M’s; Men, Machine, Method & MaterialAdvantages: (a) Good starting point for diagnosis(b) Ensures no cause has been missed out(c) Must be prepared by experts3. Tally Table/Check list. All possible causes of problem (symptom) are listed and each time the problem occurs, tally line is increased against the particular cause by one. Thus, we get the frequency of each cause.E.g. A machine drawing a very delicate copper wire is experiencing repeated breaking of wire. We draw the tally table as follows –4. Pareto AnalysisIt is an 80/20 analysis and the principle says, 80% of total effect is generated by 20% of the causes. Example: 80% revenue is generated by 20% products. 80% of total stock or inventory value is built up by 20% of items. Pareto diagram is built up to identify vital 20 which are the causes/effects of 80% of total problems.5. HistogramMethod of representation of Pareto Analysis, This is useful to locate the concentration of gravity.6. Scatter DiagramIt tries to establish relationship between any two parameters or variables. One variable or parameter is plotted on X axis second is on Y axis. It shows whether the relationship exists between 2 variables which is (a) directly proportional (b) Inversely proportional (c) There is no co-relation between each other/f the relationship between variables is directly or inversely proportional, the block at either end can be selected for corrective action.7. Control Charts: Control Charts are used to investigate whether the manufacturing process is in stable condition or not and is used to maintain the process within the tolerance (acceptable variance). If the tolerance is crossed (-ve or +ve) control charts try to assign the reason of variance either to (a) Machine and tool (b) Process Capability. This technique helps in taking the right decision for selection of the machine with higher processing capabilities (lower variances)Explain briefly any 2 of the following creativity based techniques. How do these techniques help in productivity improvement?BrainstormingNominal Group TechniqueDelphi TechniqueSynecticsAnswer:Most of the productivity techniques that we have discussed so far are attempt to improve and perfect the existing process; make the processes faster, make the people work faster; cut out the steps to increase process speed, eliminate waste (effort as well as material) and so on. But, such methods bring only percentage improvements. They may at the best improve productivity by 100%. Anything more than that is often farfetched, if not completely impossible.But then, there could be other method to do the same job which could be many times superior. For example, take the case of dictation taken by the secretary. One option is to keep training secretary to improve her shorthand speed and accuracy. Other option is to equip her with a Dictaphone which takes away all the effort, time and money involved in training her. Even better method is to use Voice Recognition Software which converts speech into typed text. Such path breaking methods emerge out of creativity of people.There are various methods to coax out the creativity of people –?Brain Storming?Nominal Group technique?Delphi Technique?SyneticsBRAIN STORMINGMeans of getting large number of ideas from a group of people in a short time by following certain rules Even though brain storming gives a large number of ideas, there is no guarantee that the ideas will be practicable. It works on the premise that among the large quantity, there will be at least some good quality ones too by theory of probability. But, there are no methods or thumb rules or any hint as to which idea is best among them. Finding the best and discarding the rest is the job of the management.Ground Rule s for Brain Storming(a) Size – The group should be between 6-20 people. Ideal size is 12.(b) Composition – The group should be as heterogeneous as possible; age gender, specialization, profession, experience, etc. Such heterogeneity is important because it brings out different viewpoints from a cross section.(c) Encourage Free Wheeling – Let people suggest wild, patently grotesque appearing ideas. Such out of the box thinking only will yield to new methods. More often than not, new methods will emerge out of most silly, appalling and contrarians ideas.(d) Suspend Judgment – Don’t pass any judgment either way till the end of session. Just listen and keep listing them. Don’t even discuss them for too long. Let the person explain his/her idea and logic followed by small discussion.(e) Cross Fertilization of Ideas – Encourage group members to hitch hike on each other’s ideas. Often two or three ideas complement each other and together become an implementable idea. NOMINAL GROUP TECHNIQUEThe Nominal Group Technique is a consensus planning tool that helps prioritize issues.In the nominal group technique, participants are brought together for a discussion session led by a moderator. After the topic has been presented to session participants and they have had an opportunity to ask questions or briefly discuss the scope of the topic, they are asked to take a few minutes to think about and write down their responses. The session moderator will then ask each participant to read, and elaborate on, one of their responses. These are noted on a flipchart without the name of the person (no ownership of idea). Once everyone has given a response, participants will be asked for a second and then next response, until all of their answers have been noted on flipcharts sheets posted around the room. There after the duplications are eliminated and each unique response is assigned a letter or number. Session participants are then asked to choose up to 10 responses that they feel are the most important and rank them according to their relative importance. These rankings are collected from all participants, and aggregated. For example:Sometimes these results are given back to the participants in order to stimulate further discussion, and re-ranking of the responses. This is done only when group consensus regarding the prioritization of issues is important to the overall research or planning project.Steps:Step 1: Small group gathers, receives instructions, identifies problemsStep 2: Write down ideasStep 3: Each one presents ideas; Leader notes these ideas on a chartStep 4: Group discusses, clarifies and evaluates each of the ideasStep 5: Participants privately rank ideas in their order of preferenceStep 6: Group selects highest ranking idea as a group decisionDelphi Techniques:This technique solicits estimates from a group of experts, and HRP experts normally act as intermediaries, summarizes various responses and report the findings back to experts.SYNECTICS: Synectics is a problem solving tool that stimulates thought processes which would normally not occur to the person. This method, developed by William Gordon, has as its central principle:"Trust things that are alien, and alienate things that are trusted."What it means simply is that don’t take anything for granted while seeking solution to your problems. Don’t limit yourself to your trusted old methods nor should you disregard a old failed method. It is thus possible for new and surprising solutions to emerge. Its main tool is analogy or metaphor. Synectics is more demanding a process than brainstorming, since it involves many stepsProcedure1. Analyze and Define the Problem – Like, Team functioning getting affected due to regular quarrelling by two workers.2. Start by Looking for Spontaneous Solutions – Like, terminate the services of the troublesome worker, or counsel them or warn them.3. Reformulation of the Problem - Like, quarrel between two groups of members (please note that in this reformulation, blame has shifted equally between two groups rather than two workers taking entire blame for quarrel)4. Create Direct Analogies – Like, Create situations that lead to clashes between two groups.5. Personal Analogies (Identification) – Like, Put yourself in the shoes of those two workers and then analyze the situation.6. Symbolic Analogies (Contradictions) – Look for contradictory approach. Could it be that those two workers are right and other wrong? Could it be that others are instigating these two workers to fight due to some hidden motive.7. Analyze the Analogies – Once you have all possible analogies, analyze them. Leave none as “Beyond Doubt”.8. Development of Possible Solutions.Explain 3M’s (MUDA, MURA, and MURI) and what are the different types of Wastes?Answer: Muda: Muda is specifically called as waste. Any activity or process step that does not change the product’s form, size, shape, color or characteristic in the direction specified by the customer is called MudaThe primary focus is to identify and eliminate all such Muda in order to:Increase the throughput i.e. velocity of material flow through the system – thereby reducing WIP and associated costs of storage, handling etc.Increase productivity as non-value adding resources come down which can be redeployed in value adding operationsMuri or Physical Strain:Strenuous working conditions not only reduce the productivity of manual operations but also lead to dissatisfaction of the workmen. Variations in the process generally lead to defects generation.As the shift progresses, production rate will automatically drop. Identifying and taking action to reduce the strain for workmen will help improve productivity as well as make the workmen amenable to achieving the production targets as they realize that their overall effort has reducedMura or Inconsistency: Variations in the process generally lead to defects generation. In Software Industry it can be expressed as follows:MUDA:Multiple check-ins and compilations of codeUse of in-appropriate softwareRepeated manual entry of dataMURI:Understaffed teams and less or almost nil tools Excessive strains put on the development teams and expecting unrealistic outcomes with less time available. MURA:Not following standards / tools / best practicesNot understanding requirements, ambiguity in requirements.Explain the Terms :Answer: Process a) Productivity - Input OutputWaste (MUDA)Productivity = Output InputAccording to ILO Definition Productivity is the ratio between “Output of work” and “Input of Resources” used in the process of creating wealthFor Eg: A worker produces 100 pieces is now able to produce 130 pieces after undergoing training session. The productivity of worker has increased by 30% A farmer used natural fertilizer for his land, after which the yield of rice increased from 200 quintals/hectare to 300 quintals/hectare.Productivity of land has increased by 50%b) Partial Productivity - Ratio of output to one class of inputAt a given time it considers only one input and ignores all other inputsIt is important as it focuses utilization of one resourceLabour productivity is measured using utilization of labour-hours, whereas capital productivity is measured in Rupees Such ratios are used for selection of a particular area of anizations can use this formula to determine performance of labour, machines, energy, capital, department, organization, etc.Example:Bajaj Auto produces 5000 scooters in a shift employing 200 workers, whereas Hero motors manufactures 9000 scooters employing 300 workers. The productivity in relation to manpower of Hero motors is higher compared to Bajaj Autos.Advantages:Easy to understand.Easy to obtain the data.Easy to compute the productivity indices Easy to sell to managementbecause of the above three advantages. Some partial productivity indicator data is available industry wide.Disadvantages:Profit control through partial can be a hit-and-miss approach.Tend to shift the blame to the wrongareas of management control.Do not have the ability to explain overall cost increasesc) Total Factor ProductivityLabour and capital are always considered important contributors to the process of production.In TFP model was developed by John W. Kendrick He has taken labor and capital as only two input factors for calculating TFPData is easy to obtain in TFPIt does not consider the impact of material and energy input, even though materials constitute 60% of the costExample: production worth Rs.80 lakhs was manufactured and sold in a month. It consumed labour hours’ worth Rs.12 lakhs and capital worth Rs.48 lakhs TFP = Output Inputs of (Labour + Capital) = 80 = 1.33 (12+48)d) Total Productivity Model Total Productivity Model developed by David J Sumanth in 1979 Sumanth considered five items as inputs ,those were Human,Material,Capital,Energy and Other ExpensesThe model is applicable in manufacturing and service organizationTotal Productivity = Total Tangible Output/Total Tangible Input Total Tangible Output =Value of finished units produced + dividends from securities+ interests from bonds + other incomesTotal Tangible Inputs = Value of human inputs + capital inputs+ materials purchased+energy inputs+other expenses (taxes,transport,office etc.)Benefits:All quantifiable inputs are consideredSensitivity Analysis can be doneProvides both firm level and operational unit level Disadvantages:Data is difficult to computeDoes not consider intangible inputs and outputse) Multi Factor Productivity ModelScott D. Sink further developed the total factor productivity modelMFP model considers labour, material and energy as major inputsCapital was left out since it is very difficult to estimate how much capital is being consumed in a unit of time.MFP = Output Inputs (labour + energy + material) ................
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