TRAINING : 7 PM TOOLS.

PERFORMANCE MONITORING TOOLS :1.Not right first time (PPM) 2.People peoductivity (PP) 3.Stock turns (ST) 4.Delivery schedule acheivement (DSA) 5.Overall Equipments effectiveness (OEE) 6.Value added per person. 7.Floor space utilization.

1.No Right First Time (Not RFT)

Defination :Not right first time (Not RFT) is a measure of the products ability to match a specification and its expressed in number of defects parts per million.

Formula :A defination unit is a unit that does not confirm to specification & may beascrapped or reworked part. PPM= Quality of defective units x 10 6 Total quantity supplied or produced

Rationale :1.PPM is a key internal & exernal measure . 2.To the manufacture : 3.It means wasted efforts. Wasted resources Wasted production time. All leading to excess costs.

3)To the customer :It means : interrupted production flow. Poor quality. 4) Higher prices.

1)People Productivity :Defination : People productivity (PP) is a measure of the ratio between the number of units
made and the number of direct operator hours associated with manufacture of those units.

Pp measures the preparation of time spent adding valve to the conversion of process as raw materials transformed into a product and the associated people cost per unit made.

Objectives :The PP objective is to maximise the PP figure by either reducing direct content or increasing the no. of units made.

Formula :People productivity = No. of units made. Number of direct operator hours.

] Rationale: 1.Work which adds valve. 2.Work which does not add valve. 3.Work is wasteful.

PURPOSE :1)The purpose of measuring PP is to encourage a continous focus on a key element of product.

2)To stimulate action to improve process techniques to reduce processing time. 3)Stock turn (ST)

Defination :
Stock turns (ST) is a measure of how frequently the stock, raw material, work in progress and finished gods are turned over in relation to the rates revenue of a product.

Formula :Stock turns = Sales turnover of product Valve of (RM+WIP+FG)

Ratioanle :1)ST is a important measure because it reflects the level of control and co-ordination of materials that flow through the process.
2)Inventory levels are key indicators of learness of the process & are directly related to the simplicity of production. 3)Suppliers to respond to the customer faster & work to much tighter schedules. 4)Inventories of incoming parts is measure of the efficiency of material flow from the supplier.

Meaning :1)ST ratio can also reveal the level of control that a producer has of the process because tightly controlled processes display low value of raw material & WIP.

2)Poorly controlled processes require excess stocks raw material & involve more WIP in order to accommodate the variation of process.

3)Delivery schedule acheivement Defination :Delivery schedule acheivement (DSA) measure low well a supplier match the planned delivery requirement of customer :It includes : 1) 100% on time delivery 22) Correct quantity. 33) Conformance to specification.

Formula : Late deliveries = Delivery of the correct qty. but not on time. Part deliveries = Deliveries of incorrect quantity which are on time. DSA = No. of deliveries correct on plan. Total no. of deliveries made.

Rationale :1)The ability to deliver the product ordered on time is fundamental to customer satisfaction. 2)100% on time delivery must be achieved without unnecessary additional costs such as special deliveries overtime. 3)These additional cost are a reflection of lack of control over the manufacturing process. 4)DSA is a function of good plant performance which in turn is a reflection of good management.

5)Over-all Equipment Effectiveness. Defination :Overall equipment effectiveness (OEE) is a total measure of performance that relates the availability of the process to the productivity & quality. The OEE measure shows how well the company is utilising resources which include the equipment, the labour & the ability to satisfy the customer in terms of matching the quality specification.

Formula :Availability : The uptime of the process as a presentage of the total available time. Productivity : The real production rate compared to the optimal rate. Quality :- The ratio of good parts to the total no. of part produced OEE = %Availability xProductivity%xQuality%

1.Availability = Total available time unplanned down time

Total available time

2.Productivity = Actual qty. produced

Target qty.
3.Quality = No. of pcs. Accepted

No. of pcs. Produced

Rationale :OEE calculation provides focus & simplicity to decision making with respect to controlling the unplanned down time the cycle time of process & the quantity rate. Lowest figure of OEE should be prioritised for improvement.

6)Value added per person : Defination : Value added per person (VAPP) is a financial measure that relates the number of
direct people involved in the conversion process to add value to the product. i.e. It shows that how well people are used to transform material into the finished product.

Rationale :The output & input value reflects the difference between the final value of the end product & value of the raw material & services used.

Formula :Output :- Output value is defined as the value of the unit after production. Input :- Input value is defined as the value of raw material before production.
Direct employees are those employees without which the production process cannot operate Value added per person = Output value Input value Number of employees

7)Floor space utilisation :Floor space utilisation (FSU) is a measure of he sales revenue generated per square meter of factory floor space. This often means reconfiguring a process to reduce the necessary space to the minimum.

Formula: -

FSU = Turnover of model area. Square metres of model area.