Beyond World-Class Productivity: Industrial Engineering Practice and Theory

by Shigeyasu Sakamoto

Overview

From the automotive industry to the semiconductor industry, manufacturers are suffering from an overabundance of automation methods that they cannot fully comprehend or afford, and glamorous leadership techniques that are simply not sustainable. In this respect, management has lost its way. Beyond World-Class Productivity shows why a return to traditional tools and the power of people can help companies meet today’s challenges in the manufacturing sector. Beyond World-Class Productivity gives readers a balance of essential information, theory and case studies. Readers can expect to gain new insights into engineering approaches to productivity, profitability and real or non-real gain, including: • useful tools for industrial engineering • effectiveness in unit labor costs; • feasibility studies • work simplification; and • developing mind innovation. Practical examples and their accompanying commentary come from the author’s 40 years of real-world experience on the shop floor and in the boardroom. Figures are also provided to illustrate actual productivity results from real companies. Both managers and engineers can appreciate Beyond World-Class Productivity as an enlightening guide to the improvement of productivity and profitability within the manufacturing sector.

Product Details

ISBN-13:	9781849962681
Publisher:	Springer London
Publication date:	09/02/2010
Edition description:	2010
Pages:	231
Product dimensions:	6.10(w) x 9.25(h) x 0.02(d)

About the Author

Shigeyasu Sakamoto is a management consultant in productivity improvement and president of Productivity Partner Incorporation. Before his current appointment, Dr Sakamoto was vice president of Maynard MEC AB (Sweden) and vice president of JMAC (Japan).

Dr Sakamoto is a Fellow at the World Academy of Productivity Science. He received his doctorate degree of policy science from the Graduate School of Doshisha University in Japan and is certified as a P.E. by the Japanese government. He is also certified as an industrial engineer by the European Institute of Industrial Engineers, an MTM instructor by the International MTM Directorate (IMD), and a MOST instructor by Maynard Management Institute. He worked for the IMD as the technical coordinator responsible for developing a new system of MTM. Dr Sakamoto is a senior member of the Institute of Industrial Engineers. He is also a Work Factor and Mento Factor Instructor for WOFAC Corporation.

Dr. Sakamoto has published many books and papers in English and Japanese regarding productivity, industrial engineering and work measurement. Recently, he explored the subject of company dignity through experiences as management consultant of productivity. Dr. Sakamoto insists that the fundamentals for a higher level of Syakaku* are only achieveable through a higher level of profitability based on a higher level of productivity.

*Shakaku is company dignity; that is, intentional management of the compatibility of social and economical items, and reconsideration of wealth or welfare.

Table of Contents

Part I Strategy for Improving Profitability and Productivity

1 Changing Strategy for Productivity and Profitability Activity 3

1.1 Is Japanese Productivity Really High in World Competition? 3

1.2 Constantly Declining Profit Margins 5

1.3 Potential for Major Profitability Increases 7

1.4 Enhancing Corporate Dignity Rather than Economic Growth 10

1.4.1 Changing from Growth to Maturity 11

1.4.2 Estrangement Results Between Welfare and Gross National Product 12

1.4.3 One Crucial Assignment of Productivity 12

1.4.4 Company Dignity Should Be Enhanced 13

1.5 Strategy for Manufacturing 14

1.6 Case Studies: Successful Companies in Productivity 15

1.6.1 Productivity 15

1.6.2 Profitability 18

1.6.3 Effectiveness in Unit Labor Costs 20

References 22

2 Systematic Approach for Manufacturing Strategy 23

2.1 Seven Losses Regarding Productivity and Profitability 23

2.2 Feasibility Study of Productivity Improvement 24

2.2.1 Difference Diagnosis and Different Results 24

2.2.2 Symptoms and Background 27

2.2.3 Points of Feasibility Study Practice 28

2.2.4 Practice of Feasibility Study 30

2.2.5 Sensitivity Analysis of Profitability 32

2.3 Four Levels of Manufacturing Strategy 34

2.3.1 The First Level: Recognizing Poor Levels and Conquering Them 34

2.3.2 The Second Level: Eradicate Old Corporate Position 35

2.3.3 The Third Level: Preparing an Auditing System for Production 35

2.3.4 The Fourth Level: Accomplishing WCM 36

References 37

3 General Meaning of Engineering As It Relates to Management 39

3.1 Definition of Engineering 39

3.2 Management and Management Engineering 40

3.2.1 Management Should Always Include Measurement 41

3.2.2 How Much Productivity Improvement Is Expected? 42

3.2.3 Methods Improvement Based on Engineering Approach 42

3.3 Industrial Engineering and Productivity 43

3.4 Necessity of Facts (Work Measurement) 45

References 45

Part II Theory of Productivity

4 Definition of Productivity/Requirements for Improving It 49

4.1 What Is Productivity? 49

4.2 Purpose of Productivity Improvement 52

4.3 Different Approaches Lead to Different Results 54

4.3.1 Input Reduction First 54

4.3.2 Engineering Approach for Productivity 56

4.3.3 Three Levels of Improvement 57

References 64

Part III Outline of the Engineering Approach to Productivity

5 Three Dimensions of Productivity 67

5.1 Points of Successful Productivity 67

5.2 Relationship of M, P, and U to Standard Time 68

5.2.1 Dimension of Methods 69

5.2.2 Dimension of Performance 71

5.2.3 Dimension of Utilization 73

5.3 Methods and Performance Meaning with Standard Time 76

5.4 Meaning of Standard Time on the Productivity Dimension 78

References 80

6 Methods Design Concept 81

6.1 Application Results 81

6.1.1 Improvement of Workers Number 81

6.1.2 Improvement of Set-up Operations 83

6.1.3 Sequence Analysis for Mechanized Machine 84

6.2 Fundamental Points of MDC 86

6.2.1 Disregard or Leave Behind Current Methods 86

6.2.2 Functional Analyses with Output Definition 87

6.2.3 New Ideas Through Creative or Innovative Thinking 87

6.2.4 Faithful Reflection of Management Requirements or Policy 87

6.2.5 Target/Kaizenshiro Oriented Design 87

6.3 Features of MDC 87

6.3.1 What Is the Objective of Applying MDC? 87

6.3.2 Designing New Methods with an Engineering Approach 88

6.3.3 Focusing Function of Work Contents 89

6.3.4 New Methods Are Easy to Implement 92

6.3.5 Design Company Owns Original Methods 92

6.4 Areas of Design 93

6.4.1 Manufacturing Methods 93

6.4.2 Manufacturing Systems 93

6.4.3 Management Systems 94

6.5 Development Steps of MDC 95

6.5.1 Freedom from Three Restrictions - What is the Real Reason? 108

6.5.2 Discarding Fictitious Restrictions 109

6.5.3 Separate to Find a Solution 110

6.5.4 Successful Brainstorming 111

6.5.5 Limited Hours of Brainstorming/Three Rounds 111

6.5.6 Two Stages for Identifying Ideas 112

6.5.7 Reasonable Theme Setting 112

6.5.8 Demand 100 Ideas 112

6.5.9 Aid for Finding Ideas 113

References 120

7 Work Measurement 121

7.1 Standard Time 121

7.1.1 Definition of Standard Time 121

7.1.2 Why Standard Time Is Effective? 123

7.1.3 Two Standards of Working Pace 123

7.1.4 How to Set Standard Time, Measuring Methods? 129

7.1.5 Crucial Steps for Setting Basic Time 133

7.1.6 Maintaining Standard Methods and Time 141

7.2 Allowances 144

7.3 Performance Control 144

7.3.1 Cases of Improved Performance 144

7.3.2 Three Control Systems for Shop Floors 146

7.3.3 Why Performance Improved? 146

7.3.4 Keys to a Successful Performance Improvement 154

References 158

8 White-collar Productivity 161

8.1 Managing Office Productivity: a Tool for White-collar Work 161

8.2 Feasibility Study for Office Productivity 162

8.3 Methods of Managing Office Productivity Outline 163

Reference 166

Part IV Monitoring Productivity

9 MBM: Measurement/Monitoring-based Management 169

9.1 Monthly Productivity Reports 169

9.2 Two Measures of Office Productivity 173

Reference 174

Part V Keys to Success for Improved Management

10 Changing for Productivity 177

10.1 Creation of New Methods in MDC 177

10.1.1 Manning Number Depends on Production Rate 177

10.1.2 "What You Can Do" vs. "What You Should Do" 179

10.1.3 A New Standard vs. New Practice 179

10.1.4 MDC Practice Is Not an Objective 180

10.1.5 The Importance of Performance Control: Practical Hints 180

10.2 Developing an Innovation-Minded View of Organization with Performance Control 181

10.3 Designing Systems for Success 183

10.3.1 Top-down Activities 183

10.3.2 Design Approach 186

10.3.3 Full-time Project Teams 187

10.3.4 A Key Person Is the Project Leader 188

Appendix 191

A.1 Sequential Activity and Methods Analysis (SAM) 191

A.1.1 Introduction to the SAM System 191

A.1.2 Supplementary Activities 192

A.1.3 SAM Symbols for the Supplementary Activities 193

A.1.4 Repetitive Activities 193

A.1.5 The SAM System Analysis Form 194

A.1.6 Theoretical Balance Time for the SAM System 194

A.1.7 SAM System Activities 195

A.l.8 Repetitive Activities 201

A.2 MTM-1 Data cards 208

A.3 MTM-2 Data Card 211

A.4 Motion Economy 213

A.4.1 Principles of Motion Economy as Related to Use of the Human Body 213

A.4.2 Principles of Motion Economy as Related to Use of the Work Place 213

A.4.3 Principles of Motion Economy as Related to the Design of Tools and Equipment 214

A.5 Work Sampling 214

A.5.1 Calculation of Sampling Sizes 215

A.6 25% Selection 217

References 218

Bibliography 219

Index 221