Productivity improvement strategies for different sectors

Improvement Strategies in Manufacturing sector

1. 2. 3. 4. 5. 6. Reduce manufacturing cost Reduce cycle times Reduce downtime Reduce changeover time Improve communication Increase capacity

1. Reduce manufacturing cost

Make more with what you have or the same with less. It can be achieved by following: Reduce downtime through team awareness
Reduce downtime through team awareness of downtime events when they occur. Once the information is available to those responsible, set goals for reducing it.

Reduce waste

Expose inefficiencies caused by small stops and reduced speed operation then attack the root causes.

Increase Productivity with Real-Time Goals

Deliver real-time production goal information to the plant floor. Display a shift or job based goal.

Reduce Changeover Time Through Training and Awareness

Reduce changeover time significantly through training and awareness. Display the changeover time for all to see. Additionally, by showing a pieces to goal or estimated time to job completion variable aids operators in determining when to initiate internal set-up procedures.

2. Reduce cycle times

Line Pacing to Reduce Cycle Time
Create better line pacing and awareness of real-time efficiency. Expose all key performance indicators to the operators, the people who have the greatest potential effect on production efficiency.

Reduce Load Time to Improve Cycle Time

Create operator awareness of how they affect the efficiency of the process. Split the cycle time into two individual components load time and in-process time with very clear visual distinction.

Increase Capacity by Reducing Cycle Times

Increase equipment effectiveness and output by monitoring the Overall Equipment Effectiveness (OEE). Specifically, OEE Performance for cycle time reduction.

3. Reduce downtime
Expose Downtime and Set Goals for Reducing It
Expose downtime. Set goals for reducing or eliminating unplanned downtime.

Reduce Downtime Through Team Awareness

Reduce downtime through team awareness of downtime events when they occur.

Find Out with OEE

Monitor OEE (Overall Equipment Effectiveness) to identify areas where efficiency losses occur.

4. Reduce changeover time

Reduce Changeover Time Through Awareness
Break changeovers into the three components of changeover time cleanup, setup and startup. Expose overall changeover time and/or any of its components and set goals to reduce it.

Reduce Changeover Time Through Training Reduce changeover time significantly through training. Expose the changeover time for all to see. Additionally, showing a pieces to goal or estimated time to job completion variable aids operators in determining when to initiate internal setup procedures.

5. Improve communication
Inform, Alert and Motivate
improve communication to inform, alert and motivate employees.

Create a Visual Factory Environment

provide real-time feedback of key performance indicators (KPIs).

Real-Time Performance Information

Increase team awareness of real-time production data.

6. Increase capacity
Start with OEE
Monitor OEE (Overall Equipment Effectiveness) to identify areas where efficiency losses occur.

Reduce Down Time

Expose downtime. Set goals for reducing or eliminating unplanned downtime.

Reduce Changeover Time

Break changeovers into the three components of changeover time cleanup, setup and startup. Expose overall changeover time and/or any of its components and set goals to reduce it.

Tackling the Six Big Losses

It represent the most common causes of efficiency loss in manufacturing. Knowing what they are and how to attack them is the key to swift and lasting improvement on your plant floor.

Improvement Strategies in Automobile sector

Since it is more or less similar to the manufacturing sector therefore all the strategies stated there applies on this sector as well. The one main difference in various manufacturing sectors and automobile sector is type of inventory control. Now a days JIT i.e. Just In Time, is being used. The other difference is in the marketing strategies. It plays a vital role in the success of the product.

JIT- Just In Time

JIT is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs. The process is driven by a series of signals, or Kanban , that tell production processes when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency. New stock is ordered when stock drops to the re-order level. This saves warehouse space and costs. However, one drawback of the JIT system is that the re-order level is determined by historical demand. If demand rises above the historical average demand, the firm will deplete inventory faster than usual and cause customer service issues. To meet a 95% service rate a firm must carry about 2 standard deviations of demand in safety stock. Forecasted shifts in demand should be planned for around the Kanban until trends can be established to reset the appropriate Kanban level. Others[1] have suggested that recycling Kanban faster can also help flex the system by as much as 10-30%.

Other strategies
Mostly the marketing of automobile involves advertisements through various modes of communications, eg. Tv, newspapers, internet etc. Selection of the brand ambassador for the product also plays an important role as the customers are influenced by their role models. Launching of the product before the competitor launches its product in the same segment. eg. The failure of Daewoo Matiz was due to its delay in the launch and by the time of its launching Hyundai Santro already took the control on the market. Other important strategy is to keep the cost of the product cost effective. Cars of small segment should have the basic luxuries only, so that its price should be low. eg. Cost of Maruti swift is up to 5 lacs but it is in small car segment, this is the main reason for its low sale. So cost cutting is necessary in this segment. Whereas in luxury segment all the utilities could be provided as the buyer of that segment is not concerned with the price. He goes for the luxury.

Improvement Strategies in Service sector

Innovation
When a paradigm shifts, the rules for success change. As paradigms form a part of the foundation of all our thinking, perceptions, mental models, scientific reasoning, mathematics, verbal descriptions etc is obvious that wrong or ineffective or inappropriate paradigms may or will sooner or later cause a large part of what is built upon them or with their "use" will or may collapse! So the service provider has to think according to the exact needs of the customer and act according to them.

Enhance teamwork and knowledge with a multidisciplinary approach

The specialists work concurrently to identify and improve the areas of lacking in their services. This involves teamwork and knowledge of various approaches, eg. Ergonomics, Psychology etc.

Contrast between national and international strategies

The main difference comes in the government policies and various duties on various products. Availability of work force. In India lot of training of the work force is required to improvement the productivity. This problem is not faced in European countries and US. Automated production is done in various countries but in India its the semi automatic one. So lot of emphasis is given to decrease time in production and all. Difference in the out look of population in different countries. So knowledge of human behavior is required before deciding on issues like customer care, work culture, etc.

Conclusion
Doing the right things (know what to produce and distribute) by continuously reviewing and identifying changing customer and societal needs and expectations (economic, social and ecological) and developing and designing products and services to best satisfy the needs and meet the expectations. Create more customer values. Doing things right (know how) by constantly improving production and distribution processes to produce and deliver the goods and services in the most efficient way while at the same time minimizing their negative social and ecological impacts.

Thank you