BULGARIA PRODUCTIVITY

PDA INTERNATIONAL

BULGARIA PRODUCTIVITY PDA INTERNATIONAL

• PHIL DOWNING - GROUP MANAGING DIRECTOR

• UK CONSULTANCY 1982 4,000 + EU SUPPORTED PROJECTS

• BULGARIA MANUFACTURING 1995 CLOTHING / ENGINEERING

BULGARIA PRODUCTIVITY

PDA

• SALES / TECHNICAL / PLANNING / CONTROL / QUALITY / LOGISTICS

• Currently working with over 40 BG companies manufacturing for UK customers

BULGARIA PRODUCTIVITY

CONCERNS• GLOBAL INFLATION • RISING COSTS• LOW EFFICIENCY (30%)• STAFF WAGE RISES• SKILLED OPERATOR MIGRATION• CUSTOMERS MOVING FURTHER EAST

BULGARIA PRODUCTIVITY

PRODUCTIVITYHISTORY OF PRODUCTIVITY

• 19TH CENTURY INDUSTRIAL REVOLUTION• TAYLOR 1920’s WORKING PRACTICES• USA 1940’s TOTAL QUALITY MANAGEMENT• 1950’s WORK STUDY: Method Study / Time Study• WILSON 1969 PRODUCTIVITY DEALS WITH UK UNIONS• 70’s / 80’s / 90’s MARKET GROWTH

EU FUNDED CONSULTANCY ASSISTANCE SME’sMANUFACTURING ADVISORY SERVICE

• 2000 LEAN

BULGARIA PRODUCTIVITY BULGARIA CURRENT MANUFACTURING SITUATION• LOW EFFICIENCY Estimated 25 to 45% (UK 70%)• RISING COSTS• MIGRATION OF STAFF• ACCURATE COSTING• PRODUCTION PLANNING• MATERIALS SUPPLY• PRODUCTION CONTROL• OPERATOR MOTIVATION / PERFORMANCE• MANAGEMENT SKILLS / TECHNIQUES• GOOD QUALITY CULTURE• MIDDLE & FAR EAST THREAT• EU FUNDING CONFUSIONS

BULGARIA PRODUCTIVITY

REFERENCE PERIOD MEASURES

• OUTPUT• INPUT• EFFICIENCY• PROFIT PERFORMANCE• COSTS

BULGARIA PRODUCTIVITY

STANDARD COSTING

A system based on standards which are used to:

• Determine sales cost of products• Plan production• Monitor production• Measure variances / take action• Standard / Actual / Variance / Action

BULGARIA PRODUCTIVITY COMPUTATION OF PRODUCT STANDARD COST

• Direct Materials usage, cost, contingency, product cost• Standard Hour work content of Product • Direct Wages / Cost per standard hour / Product cost• Total Direct Cost (Materials + Wages)• Overheads / fixed Costs• Total factory / Works Cost• Net Profit• Gross Profit / Contribution• Selling Price to Customer• Contribution per Standard Hour

BULGARIA PRODUCTIVITY PRODUCTION PLANNING

• LINE CAPACITY PER WEEK

• PRODUCT WORK CONTENT

• DELIVERY DATE TARGET

• MATERIALS AVAILABILITY

BULGARIA PRODUCTIVITY

PRODUCTION CONTROL

• To promote action on variances from planning targets:

• LINE CAPACITY• LINE EFFICIENCY• CLEAN ORDER / MATERIALS• QUALITY• OTHER

BULGARIA PRODUCTIVITY

OPERATOR FINANCIAL INCENTIVE Vital for company successIndividual: Daily or weeklyTeam: Daily or weeklyGroup: WeeklyFactory: Weekly or monthlyIMPORTANT TO MEASURE & CONTROL

BULGARIA PRODUCTIVITY FACTORY LAYOUT

• Minimum waste ‘LEAN’ on movement of materials in progress.

• Ideal factory layout for: FLOW PROCESS CONTROL

VISUAL

CLEAN & TIDY

BULGARIA PRODUCTIVITY METHODS AND WORK AIDS

• Investigate each product for method improvements that reduce the work content and or increases quality standard

• Example: Folder for front placket reduces work content by 6 standard minutes

• Machinery / Equipment costs, savings and payback by reduction

BULGARIA PRODUCTIVITY

LINE SET UP AND BALANCING

DEFINITION

• ‘LINE SET UP’ is the theoretical plan of a certain style to provide maximum efficiency whilst achieving promised delivery dates.

BULGARIA PRODUCTIVITY INFORMATION REQUIRED

• OPERATION BREAKDOWN: Description of operation, method etc

• SM’s PER OPERATION: Cycle time based on method & equipment

• TOTAL STANDARD MINUTES: For Capacity Planning, costing etc

• MACHINE / EQUIPMENT: Basis for standard minutes Eg Integrated sewing unit 3.00 SM’s Plain lockstitch 5.50 SM’s

• PLAN QUANTITY PER WEEK: Customer requirement or capacity

BULGARIA PRODUCTIVITY

BULGARIA PRODUCTIVITY

BULGARIA PRODUCTIVITY

BULGARIA PRODUCTIVITY» SUMMARY

» REFERENCE PERIOD / HISTORY» STANDARD COSTING» PRODUCTION PLANNING» PRODUCTION CONTROL» FACTORY LAYOUT» METHODS» FINANCIAL INCENTIVE SCHEME» LINE SET UP» QUALITY CONTROL» MANAGEMENT CONTROL» TRAINING» CONTINUOUS IMPROVEMENT

BULGARIA PRODUCTIVITY

• PLAN• SHOWCASE PROJECT• EXAMPLE TO OTHER COMPANIES• PROOF OF WHAT CAN BE DONE

BULGARIA PRODUCTIVITY

• QUESTIONS

• ELECTRONIC COPY OF SLIDES

• THANK YOU FOR YOUR TIME