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IE 324 PROCESS MANEGEMENT PROJECT: PRODUCTIVITY IMPROVEMENT BY WORK STUDY TECHNIQUE: A CASE ON LEATHER PRODUCTS INDUSTRY OF BANGLADESH 05.05.2020 GAZI UNIVERSITY ENGINEERING FACULTY 0 CONTENTS Chapter 1: Understanding Research and Study…………………………………………………2 Chapter 2: Methodology and Equations Used………………………………………………….4 Chapter 3: Analysis of Work Study and Conclusion…………………………………………..5 1 Chapter 1: Understanding Research and Study Why Leather Products Industry? In Bangladesh, the leather and leather products industry plays a crucial role for the country's economic development. The authors consider it necessary to increase productivity in order to maintain this positive growth in the industry. For this, unnecessary excess work in production should be minimized. The production system of the leather products industry can be illustrated by the following scheme (Figure 1). Productivity According to the article, efficiency can be defined as the ratio between the output of wealth and the input of resources used in the production process. Productivity = OUTPUT / INPUT (1) Productivity analysis is important for all sectors. Increasing efficiency is important to make more profit from limited resources. Productivity increase is the continuous improvement process of all kinds of activities. The increase in efficiency can be considered as an increase in profit. Various methods are listed in the article to increase efficiency. These can be classified as; • classification of elimination • repair of ineffective process • simplification of the method • optimizing the system • reducing diversity • maximizing participation quality or response speed • reduction of installation time 2 In the article, 'Work Study' is classified as in Figure 2. The research team initially selected a special production line in which a particular product was produced (Ladies Bag). They observed all special operations with the help of a stopwatch. After observing all the operations, they identified the current problem with the critical query technique. After identifying the problems, they developed a new method or process for certain products. They tried to balance the line by reducing the work content with critical analysis and time study. The research team used the conceptual table in Figure 3 to analyze a particular production line. After observing the duration of each transaction, the standard time of each transaction was calculated, including ratings and two types of permissions. This research had two main objectives. These: 1. To analyze the production system with the help of work study technique to increase efficiency. 2. Identify the current problem on a particular production line and develop a new system with the help of critical analysis. 3 Chapter 2: Methodology and Equations Used Observed time: Time taken to perform an operation or combination of operations obtained by direct measurement. Time selected: Time selected to represent the time group representing an operation or study group by calculating the mean, median, or mode. Rating: Rating is the evaluation of the employee performance ratio according to the rate concept corresponding to the standard speed of the observer. The rating scale used in this study is given in table 1. Basic time: The basic time is the minimum time required to theoretically produce a unit of output. Basic Time = Observed Time x Observed Rating/ Standard Rating (2) Standard time: Standard time is the total time a job must be completed at standard performance. Standard Time = Basic Time + Allowances (3) For allowances, we consider 15% relaxation allowances and 3% contingency allowances. Relaxation allowances: Relaxation Allowance is a supplement to the basic time to develop the employee with the opportunity to get rid of the physiological and psychological effects of performing a particular operation and to pay attention to personal needs. The amount of tolerance depends on the nature of the job. Usually the relaxation allowance is 15% of the basic time, added to calculate the standard time from the basic time. Contingency allowances: A contingency allowance is a very small amount of time that can be included in a standard time study. In this study, the probability of 3% probability of the basic time was evaluated to calculate the standard time. Efficiency = Minutes Output / Minutes Input (4) Increasing efficiency = [(The efficiency of proposed line – Present Eff.)/Present Eff. ] * 100 (5) % of work content reduction per piece= [ ] (Present work content/piece – Proposed work content/piece) (Present work content/piece *100 Increasing productivity at 100% capacity= [(Proposed std output – Existing output) / Existing output] * 100 4 (7) (6) Chapter 3: Analysis of Work Study and Conclusion The authors chose Picard Bangladesh Ltd, a Bangladesh-Germany joint venture for research. For this research study, they chose a women's bag to observe each operation, along with a time study. After observing all the operations with time studies, they observed that the selected female bag production consisted of 60 separate elements. Time study was performed for each operation. The names, descriptions and results of the transactions are shown in Table 2. When we look at Table 2, the number of workers is 97 and the average ratings of workers are 81.33. Each station can have different numbers of workers, and since their capacity varies from station to station, they are not proportional to the number of workers. We see that Total Basic Time is 6787 and Total Standard Time is 8004. In other words, the average Basic Time for each element is 113.12 and the average Standard Time is 133.4. In addition, we can see in Table 2 that production is limited due to the shortage of capacity in some places. Some operations are repeating themselves. The researchers measured 5 times for each operation and calculated the basic time for each worker using equation (2). Then they converted this basic time to standard time using equation (3). They added two types of tolerances to calculate standard time. The graphical representation of the capacity of each station is shown in Figure 5. When we look at Figure 5, we see that there is a scattered capacity in the stations. For example, we see that there are 1 operation on 2000, 4 on 1500-2000, 9 on 1000-1500, 19 on 500-1000, and 26 on 0-500. As a result of the work on the selected assembly line, the line was balanced and increased efficiency. The proposed line balance calculation is given in table 4. When we examine Table 4, we can see that the number of operations, which is 60, decreased to 53. This means that some operations have been combined or removed because some are unnecessary. In addition, capacities were balanced by making arrangements in the number of workers in operations. For example, on the existing line, only one worker works for the Cutting All Leather operation, and 3 workers work on the proposed line. Thus, the bottleneck problem caused by the initial capacity shortage was solved. If we examine Table 3, we can observe the changes. Since the use of a brush in the adhesion processes slowed down the process, they replaced it with a spray adhesive. Here is a second suggestion: If there are parts that will not affect the production and will not be processed again (bottom part, inner part etc.), we can move them to a separate line like a bonding section and reduce the number of people with machines and distribute the workforce to other operations. 5 Result The number of daily production in the current line was 240. The working hours of the factory are 8 hours. 97 workers are employed in this line. Using equation (1), we can see that the efficiency of this line is about 2.5 bags / day. The factory has 48,000 cent minutes working hours. The job content per bag is 8004 cents minutes. Standard output at 100% efficiency is 582 pieces bag per day. As a result, if we calculate the efficiency using equation (3), we find 41.23%. While the working content per piece was 80.04 minutes in the current line, the operations in Table 3 were performed and reduced to 71.03 minute per piece. This recommended line is 656 bags per day with 100% efficiency standard output. If we use equation (6), we see that efficiency has increased to 12.71%. 6