MMS IV:PT: DGM 30.01.2010.

Date :

L3 - ILO, KAIZEN & MUDA - APPROACHES

INTRODUCTION : World class practices improves production in every activity of firm, apart from productivity increase in quantity, improving value of Product i.e. Productivity in Finance, marketing, R & D, Material Management, Administration etc.

ILLUSTRATIONS : 1) Marketing Dept. makes strategy of putting priority on sales of higher profit making products viz. Maruti dealer prefer sales of Zen Car instead of Maruti 800 (Higher Profitability of Zen). 2) 3) 4) Finance Dept. searching lower interest loans to finance project. R & D Dept. using Model in short time. Material Management search for cheaper material. Also render development to produce cheaper Sub-assembly. (Sub-contract instead of Mfg.) 5. Administration Dept. reducing trime reduction). approval procedure. (Process Concurrent Engineering to produce New

Varieties of Productivity improvement techniques are broadly classified into 3 approaches.

Productivity Improvement Approaches

Classiic ILO Approach

Kaizen

Muda

Management 1)

Group

Individual

Classical ILO Approach : International Labour Organisation at Geneva (Switzerland) has broad objective of raising living stasndard of human life (among other objectives of resolving various issues of Labour). They aim at raising productivity from its resources so that economy can grow and sustain better quality of life. Large proportion of world population is below poverty line and their basic needs of Food, Water, Cloth, Shelter etc. are not fulfilled. Hence ILO suggest Classic approach for raising productivity (or extracting best possible yield from available resources). Exhibit - I shows broadly Management's co-ordinating role for man, material, machine, capital, energy etc. for enterprise to increase productivity of product & services. It does not mean exploitation of labour but harnessing of all available resources to stimulate a higher rate of economic growth that can be used for social betterment, higher standard of living and improved quality of life.
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Towards above braod objectives, they have developed classic ILO approach / technique for improving productivity in Mfg. organisation. This technique states that apart from basic work to perform on products, there are many work are required to be performed which are non-value added. Exhibit II shows this basic work and other work which increases work content leading to increasing mfg. cycle time, more cost, quality reduction etc. Thus not able to produce required quantity & quality of products.

Basic Work A1) Bad Design A2) Incorrect Quality A3) Removal of material A4) Lack of Standardisation B1) Wrong Machine Use B2) Incorrect Process B3) Wrong Tools - Used B4) Bad-Layout

Basic Work

Added Work

Added Work

Ineffective Time

Illustration : Production of Steel Cupboard contains following work content. Sr.No. Work Content 1. Basic Work 2. Work added due 3. 4. Time (Hrs.) 4 Hrs. 2 Hrs. 1 Hr. 1 Hr. 8 Hrs. Remarks

to

defects in design / spray Work added due to inefficient operations Ineffective time due to worker & management. Total Work Content

Lack of Planning Personal Time

Thus production of 1 cupboard will take 8 hours ( Mfg. cycle time - 8 Hrs.) Although basic work content is 4 hrs. but due to added work 4 hrs. are added. Following factors are suggested for reducing added work content. 1) 2) 3) Poor design Too high quality standards Improve plant layout
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4) 5) 6) 7) 8)

Proper material handling Efficient production methods Minimise Plant break-down Absentism & Lateness Minimising accidents & Hazards By putting efforts on above factors, mfg. cycle time can be

reduced. Let us suppose mfg. cycle is reduced to 6 hrs. This will lead to production of 4 cupboards in 1 day (3 shifts = 24 hrs.) (previous production = 3 cupboards/day). Productivity improvement = 4-3 3 2) IMAI'S KAIZEN APPROACH : It is process of improvement mfg. methods, material handling, storge, layout, design etc. i) ii) iii) i) It is categorised in 3 forms depending upon complexity & level of work as follows : Management Kaizen Group Kaizen Individual Kaizen x 100 = 33.33

Management Kaizen : It focuss on improvements in facility system and procedure. It volves modifications in machines, material handling, layout, major changes in procedure, specification etc. Some investments occur. Usually managers are involved in planning & implementation. Generally it takes few months to complete. Finally new system, facility is established which produce more quantity, improve quality etc.
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ii)

Group Kaizen : It is performed by Q.C. circle. It focusses on particular workplace. Working takes few weeks. Generally there is no investment. In a year 2 ot 3 kaizen are performed. Finally improved procedure, standard, workplace etc. are evolved. It improves quality, quantity, mfg. cycle time etc. (imporoved productivity).

Illustration : Arranging workplace for proper tool arrangement for Lathe Machine, scrap removal cleaning etc. encourages work place. iii) Individual Kaizen : Employee's own palce is focussed for improvement. employee can improve method, work place etc. factory, store, testing, sales, accounting etc. productivity is improved. Illustrations : i) ii) iii) Putting tool chart in work place for convinience. In sales office, enquiry files of different colours used viz. Red colour file for hot enquiry, orange for medium etc. Putting arrows location. (By Painting) for direction of department Any It can be

Any time can be

done. No Investment. It may crete working convenience. Thus

Note :
i) ii) For analysis, 7 Statistical tools & common sense is used. Kaizen process is explained in Annexure I.

3)

MUDA APPROACH In Mfg. process, series of operation are performed. (generally

in sequnece).

But

their

work / activities performed after However, those

manufacturing operation do not add value to WIP.

activities are essential. These activites are thus use labour hours , but does not add value. These wasteful activities are referred as * "MUDA". Detail study of these activities and minimising it, leads to reduction in mfg. cycle time. (Thus increase in Quantity of product i.e. improvement in productivity.) Transportation of WIP & Storage are such activities. Labour waiting for material, instructions etc. is also MUDA. Non-optimum movement of hands of Labour is waste. Defective product is MUDA. (involving reworking / rejection). Illustration : Following operation chart shows production of Scorpio Car Engines (85 HP, 8 cylinder)at Mahindra & Mahindra Co.

Pouring Iron Storage ( Hr.)

Cooling ( Hr.)

Transport ( Hr.)

Heat Treatment ( Hr.)

Mfg. Cycle Time : a) b) Operations (1,2,3 & 4) =

+ + = 1 Hr. = Hr.
= 1

Transportation (3 times) =

++
Total Cycle Time

Hr.

Japanese Word. (It means wastages).

References : i) Productivity by ILO. (pp). 18 - 27 ii) Productivity Management by Jamb. (pp) 650 - 64. *********

EXHIBIT I

Bldg.

Material

Machine

Men

Energy

Management - Direct - Plan - Organise - Co-ordinate - Control

Product & 8 Services