cost reduction tfn

155 . . . . 73000 : 08 1815 0889 : 0 3425 3558

Email : [email protected]

** http://www.thailandfactory.net

SMEs

How to Achieve Cost Reduction

Training Course :Training Course :How to Achieve Cost ReductionHow to Achieve Cost Reduction

1 April 2009

Law of Minimum

?

- = - = 31

1 2

4

/ /

.

..

/.

(Historical Cost)

(Manufacturing Cost)

(Materials Cost)

(Variable

Cost)

(Controllable

Cost)

(Differential Cost)

(ReplacementCost)

(Labor Cost)

(

(Avoidable Cost)

(Future Cost)

(Non manufacturing Cost)

(Overhead)

(Fixed Cost) (Reducible Cost)

(Opportunity Cost)

6

7

BIG Q 3 MU 6 Big Losses 16 Major Losses 5 Office Losses

Big QP (Profit)Q (Quantity)P (Productivity)

Q (Quality) S (Satisfaction)T (Time)

Q (Quality)C (Cost)

I (Innovation)R (Relationship)R (Ri k)

D (Delivery)S (Safety)

R (Risk)F (Flexibility)V (Value)

M (Morale)E (Environment) V (Value)

E (Ethics)Etc

( )

9

Etc.

3 MU3 MU Muda (7 wastes) :- 7 Mura (unevenness)

:- Muri (Overburden) :- /

7 Muda ( 7 )1.

2. 3

3. 4. 5.

6. 7 7.

6 (6 Big Losses)1. 2.

A

3. P4.

5. 5. 6.

Q

16 Major Losses 16 8

1. (Shutdown Losses)2. (Production Adjustment Losses)3. (Failure Losses)4. (Setting Up & Adjustment)5 (Mi St & Idli Ti )5. (Minor Stoppage & Idling Time)6. (Speed Losses)7. (Quality Defect Losses)8. (Reprocessing Losses)

16 Major Losses 5

9. (Management Losses)10. (Motion Losses)11. (Line Organization Losses)

12. (Losses resulting from lack of automated system)13. (Measurement and adjustment losses)

3 14. (Yield Losses)15. (Energy Losses)16. (Die,Jig and Tool Losses)

Office Wastes1. Asset Wastes :

Inventory Utilization Fixed Cost InsufficiencyInsufficiency Durability

Office Wastes2. People Wastes :

Alignment Alignment Assignment Waiting Motion Processing

Office Wastes3. Information Wastes :

Translation Missingg Inaccuracy Irrelevancy Irrelevancy Collection

Office Wastes4. Process Wastes :

Control Control Variability Reliability Standardization Scheduling Uneven Flow Checking Error Error

Office Wastes5. Leadership Wastes :

Focus Structure Strategic DisciplineDiscipline Ownership

Workshop

20

21

TQATQA

TQM TQM / TQC/ TQC

Total Productive MaintenanceSingle Minute Exchange of DiePoka-Yoke (Fool Proof)Balanced Score Card

Thailand Quality Award

TQM TQM / TQC/ TQC

BSCBSC, SP, Benchmarking, SP, BenchmarkingSupply Chain Mgt.Just In TimeFl ibl M f t i S t

Self Maintenance / Overall Equipment EffectivenessCustomer Relation Mgt.Quality Function DeploymentS i Q lit

Strategic Planning

ABMABM SCMSCM 66--SigmaSigmaCRMCRMTPMTPM

CrossCross--Function ManagementFunction Management

Activity Based Mgt.

Flexible Manufacturing SystemIndustrial Eng. Techniques

Service QualityVoice of Customer

Six-SigmaABCABCCOQCOQ

VA/VEVA/VE

JITJITFMSFMS

IE TechIE Tech

DOEDOEMSAMSASPCSPC

QFDQFDSQSQ

VOCVOC

SMEDSMEDPokaPoka--YokeYokeSM /SM / OEEOEE

Activity Based CostingCost of QualityValue Analysis / Value Engineering

Design of ExperimentMeasurement System AnalysisStatistical Process Control

Wastes AssessmentWastes AssessmentProblem Solving Problem Solving // QCC /QCC / ISOISO

VA/VEVA/VE IE Tech.IE Tech. SPCSPCVOCVOCSM /SM / OEEOEE

2255S, KaizenS, Kaizen-- Suggestion Scheme , Visual Control, KYTSuggestion Scheme , Visual Control, KYT

5. Kai en S ggestion Scheme Kaizen-Suggestion Scheme

Visual Control Wastes Assessment (3 Mu) Problem Solving Techniques

Thailand Productivity Institute

5 5 . .


5 .


Kaizen1. 2.

13. 14.

25. 26.

3. /4. /

15. 16.

27. 28.

5. 6.

17. 18.

29. /30.

7. 8. 9

19. /20. 21

31. 32. 33 9.

10. 11.

21. 22. 23.

33. 34. 35.

Thailand Productivity Institute12. 24. 36.

9 --


12 1. 2. 3. 4. 5. 6. 7. 8. 9 9. 10. 11


11. 12.

Visual Control

(Act)



33

1 2 3

1 2 3

34

35

36

(VISION) (WISDOM)

(KNOWLEDGE) (INFORMATION)

(DATA)


(COMMON SENSES)

1. Interim Action 2 Adaptive Action 2. Adaptive Action 3. Corrective Action 4. Preventive Action 5 Emergency Action 5. Emergency Action


(Work Study) (Work Study) (Reduction Of COQ)


(Waste)

(Job)

/ (Non Value Added Job)

40Frederick Winslow Taylor

3 (Process Analysis)

(Operation Analysis)

(Motion Analysis)

41

Process Analysis

42

43

Workshop # 1

20 (Packing)

44

FLOW DIAGRAM

1

( Man-Type )

34

123

45 45

66 7

88

6

45

Flow Diagram (1)1. Cross Traffic -

1 2 1 21 2

4 3

1 2

4 34 3

5

4 3

5

46

Flow Diagram (2)2. Backtracking -

1 2 3 4 5

3. Distance Traveled - 1 2 3 4 5

10 10 10 10

47

MC2 MC1 MC3RM

MC2 MC1 MC3FG

1 352

48 96 7 8 96

10

RM MC1 MC2 MC3 FG

MC23

RM C C C FG

1 2 3 4 5

6 RM

MC1 MC3

FG1

2 4

5

48

6

Flow Process Chart 1 2 11 25441 1 ________________ ___________________

______________________________________________________________________ ___________ _________________________________ ______________________________________________________

11 25441 1A

5

21

Man Type /

1--

Man-Type

() / 1234

104

5678

10

( 20 )

4920 25 1 - -

Flow Process Chart 1 2 11 25441 1 ________________ ___________________

______________________________________________________________________ ___________ _________________________________ ______________________________________________________

11 25441 1A

2

21

Material Type /

112

Material-Type

() / 1234

10 4

5678

10

20

5020 22 1 1 2

E C R S :

: :

(Eliminate)

:

(Combine) (Rearrange)

: :

(Rearrange)

(Simplify)

51

Workshop

52

. . .

( )

. (Idle Time)

(A)

(B)

(C)

53

=

Man - Machine Chart ()Chart No 8 1/1

Man - Machine Chart

Chart No.8 1/1 : : 2 2.00 2.00

1.20

0.80 : ____________________ : ____________________ 0.80 : ____________________ : ____________________ 1.20

60%40%

/ 40%

() ()0.20 0.200.40 0.400.60 0.60

0.80 0.801.00 1.001.20 1.201.40 1.40

54

1.60 1.601.80 1.802.00 2.002.20 2.20

Man - Machine Chart ()Chart No 8 1/1

Man - Machine Chart

Chart No.8 1/1 : : 2 2.00 1.36 0.64 2.00 1.36 0.64

1.20 1.12 0.08

0.80 0.8 0.00 : ____________________ : ____________________ 0.80 0.24 0.56 : ____________________ : ____________________ 1.20 0.56 0.64

60% 82% 22.35%40% 59% 18 82%

/ 40% 59% 18.82%

() ()0.20 0.200.40 0.40

0.600.600.80 0.801.00 1.00

1.40 1.401.20 1.20

55

1.60 1.601.80 1.802.00 2.002.20 2.20

Multiple activity chart ()

0

1

2

3

4

5

6

56 converter

Multiple activity chart ()

0

1

2

3

4

5 1 40

6

57 converter

(Therblig)

58

Traditional Cost of Poor Quality

/

/

/ (, , , , )

Traditional Cost of Poor Quality

/

/

/ (, , , , )

?

: Traditional View

t Totallitt o

f pro

duct quality

costsInternaland external

failurecosts

er g

ood

uni

Minimumtotal cost

Cos

t pe total cost

Preventionand appraisal

costs

0 100%Quality level (q)Optimum


Optimum quality level

: Zero Defect View

of p

rodu

ct Totalqualitycosts

Internaland external

failurecosts

good

uni

t o

Minimumtotal cost

Cos

t per

Preventionand appraisal

costs

0 100%Quality level (q) Optimum lit l l


quality level

: Quality is Free View

ctni

t of p

rodu

cTotal

qualitycosts

Internaland external

failurecosts

per g

ood

un

Minimumtotal costPreventionand appraisal

t

Cos

t p

ppcosts

0 100%Quality level (q) Optimum quality level


FC FC

AC AC[Failure Cost]FC

PCAC

PCAC

[P ti C t]PC

[Appraisal Cost]AC


[Prevention Cost]

Workshop

(vendor assurance) (production trials)


Workshop

(re-inspection) (re-testing)


Workshop

67

( Overall Equipment Effectiveness ; OEE ) M/C : Comerio : (1-30/8/2551)

Planned Shutdown

25 600 Hrs = 36,000

Breakdown Losses

A

B

36,000 -11,310= 24,690 11,310 A = (20,780/24,690)x100

Speed LossesC

B24,690-3,910 = 20,780

STD. 12.1808 Kg/min

3,910

A (20,780/24,690)x100= 84.16 %

P = (18,793/20,780)x100

D

( 228,915 Kg. 18,793 )

228 915 kg

1,987 ( , , )= 90.44 %Q = (222,758/228,915)x100

Quality LossesE

228,915 kg

222,758 kg. 6,157 kg.= 97.31 %

Thailand Productivity Institute68OEE = (AxPxQ) = 0.8416 x 0.9044 x 0.9731 x 100% = 74.07 %

Losses(1,000 /hr.)Production LossProduction Loss

Comerio175,669 .

Losses Tree Diagram

Availability Loss

Performance Loss

Quality Loss = 6,157 .

65.17.x1000 = 65,170 . 33.11.x1000 = 33,110 . 77,389 .

MD EKK MR. 3,910 65,170 .

MD.

103..x 40.= 4,120 .

139 . x 40.= 5,560 .

470 ..x 40

18,800 .

353 ..x18

6,354 .

5,092 . .

( 42,555 . )

JOINT TAKE OFF EKK

3, 250 .x 5 .

365 ..x18.PUMP - CAL 1

500 . x 18 . 4.

450 .x 18 .

527 5

Thailand Productivity InstitutePage 69

1,495 24,920 .

2,365 39,420 .

= 16,250 . EKK

= 6,570 .50 830

= 9,000 .450 .x 18 .

= 8,100 .527 .x 5.

= 2,635 .

cost reduction tfn

Documents