Textbook: Fundamentals of technology production processes. Process Improvement Principles

undergraduate

Irkutsk State University

undergraduate

Knyazyuk Nadezhda Feofanovna Doctor of Medical Sciences, Head of the Department of Management, Irkutsk State University, Siberian-American Faculty of Management

Annotation:

This article discusses the concepts and principles of the production process, confirms the need for analysis and improvement of the production process on the example of OJSC "Sortavalsky DSP".

This article discusses the concepts and principles of the production process, confirms the need to review and improve the production process as an example of "Sortavala DSZ."

Keywords:

production; process; rubble

UDC 65

The concept of the production process

Modern production is a complex process of converting raw materials, materials, semi-finished products and other objects of labor into finished products that meet the needs of the consumer.

The totality of all the actions of people and equipment carried out at the enterprise for the manufacture of specific types of products is called the production process.

The technological process is the basis of the production process, within which the transformation of raw materials and materials into the finished product takes place. During the implementation of the technological process, there is a change in all forms, as well as the physical properties of the original material.

The technological process is not the only component of the production process. Incorporating many processes that do not change the properties of raw materials and materials, but help transform raw materials into finished products. Such processes can be: transport, storage, servicing, natural and many other processes.

In the production process, labor processes are combined with natural ones, in which the change in the objects of labor occurs under the influence of the forces of nature without human intervention (for example, drying painted parts in air, cooling castings, aging of cast parts, etc.).

Varieties of production processes. According to their purpose and role in production, processes are divided into main, auxiliary and service.

The main process is the process during which the production of products aimed at the final consumer is carried out.

Auxiliary processes are designed to ensure the efficient and smooth operation of the main processes.

Together, the basic processes form the backbone of production.

In modern conditions, especially in automated production, there is a tendency to combine the main and service processes. So, in flexible automated complexes, the main, warehouse, picking and transport operations are combined into a single process.

Servicing processes are called processes, during the implementation of which the actions necessary for the effective functioning of both main and auxiliary processes are performed.

In order to start improving the production process, it is necessary to analyze it comprehensively, that is, it is necessary to conduct a comprehensive analysis of activities in order to know what state the production is in now. The results of a comprehensive analysis will be the starting point for starting the development of an improvement in the production process. As an example, let's take OJSC "Sortavalsky Crushing and Screening Plant".

Using the example of this enterprise, we will consider how the organization analyzes its activities and what decisions will be made on the basis of a comprehensive analysis.

The basis is a plan - factual analysis. Key indicators are selected that, from the point of view of the manager, relate to the production process and produce the maximum impact on the organization as a whole. The planned and actual data are compared according to reports on the number of finished products produced, on preparatory work (overburden, drilling, etc.), on the report on the cost of finished products.

If the production plan for the period January-June is not fulfilled by 14%:

Stripping - non-fulfillment by 79%, because stripping work was planned from April, in fact, work was carried out only in May in the amount of 63% of the planned volume;

Drilling - failure by 14%

Explosion - non-fulfillment by 28% as a result of a lower GM output from 1 p.m. compared to the target;

Excavation - non-fulfillment by 14%;

Transportation - non-fulfillment by 17%;

Processing - non-fulfillment by 14%.

The cost of goods sold in June 2015, with a decrease in the volume of shipment of products by 16% compared to the plan, increased by 27% as a result of an increase in the average unit cost: plan - 162 rubles, actual - 207 rubles.

Reasons for the increase in the cost of goods sold per ton:

Growth in the cost of manufactured products for consumer goods by fractions compared to the plan as a result of non-fulfillment of the sales plan;

More expensive incoming balances by fraction compared to the plan.

The actual cost of 1 ton of sold products in June 2014 is 20% lower than in June 2013 (RUB 258) due to an increase in production costs as a result of an increase in production volumes and an increase in costs in 2014:

For repairs - in connection with the emergency failure of DSO (repair of the H-4800 crusher), unscheduled repairs of BelAZ dump trucks and mining equipment;

For wages with payments in social insurance - in connection with the non-outsourcing of repair personnel, an increase in piecework rates and additional payments to workers for professional skills; on fuel and lubricants - in connection with the implementation of unplanned types of work.

Since the beginning of the year, the cost of goods sold has increased by 17% due to non-fulfillment of production volumes by 14%, repair work of DSO and quarry equipment, write-off of residual gas production facilities in the amount of 35.5 thousand tons, as well as due to the use of crushed stone for own needs.

Dynamics of costs by budget items (plan June 2014 - actual June 2014).

Cost savings in June by 0.6 million rubles. compared to the plan as a result:

Maintenance and repair item (+2.1 million rubles or -43%) due to unscheduled replacement of DSO spare parts in connection with emergency repairs of the H-4800 crusher, on conveyors as a result of wear of the high-speed shaft and intermediate gear, as well as due to unscheduled repairs of technological vehicles (repair of the steering and chassis), ECG (replacement of the bucket wall as a result of bucket wear), auxiliary vehicles (repair of the chassis of the bulldozer T-15.01), households. transport (carrying out unscheduled repairs of the vehicle ED-405, MAZ 55102 dump truck and truck crane), overspending on the services of third-party organizations for the TO-3 of the diesel locomotive TEM No. 037 due to a change in the schedule of repairs and the repair of DSO vibrators.

Since the beginning of the year, there has been a 4% overspending due to unscheduled repairs, due to an emergency failure of the enterprise's equipment.

The item “payroll + insurance premiums” in June +1.4 million rubles. (repair personnel not outsourced, payments under work contracts, additional payment to workers for professional skills, increase in piece rates due to overfulfillment of the production volume of the GP by 11%).

Since the beginning of the year +4.5 million rubles. due to the payment of a bonus based on the results of work in March, one-time bonuses by order of Gen. Directors, non-outsourcing of repair personnel since April, additional payments to workers for professional skills in June.

Article "Rent" overspending 0.3 million rubles. in connection with the unplanned lease of a diesel locomotive for the period of overhaul of its own

Item "Electricity" (-0.4 million rubles or -33%) due to:

1. decrease in consumption (-33%) in drilling, production of GM, offloading of GM and pilot production as a result of failure to complete the planned volumes of drilling work and non-fulfillment of the shipment plan by 16%, which compensated for the excessive consumption of electrical energy in the processing of GM

2. tariff reduction by 32%.

Since the beginning of the year, savings of 2.2 million rubles. by reducing the volume of electricity consumption in the production and processing of GM, as well as in the shipment of GP by 188 thousand kW (7%), reducing the tariff by 23% compared to the planned one.

Factor analysis

Article "Petrol"(-0.2 million rubles or -6%) due to: 1. an 8% increase in consumption of mining equipment and technological transport due to an increase in the volume of transportation of raw materials and screenings; 2. price reduction for diesel fuel by 16%.

Since the beginning of the year, savings of 0.3 million rubles. by reducing the price of diesel fuel by 14%, which compensated for the overspending in terms of the volume of consumed diesel fuel by 12% due to the involvement of the Karelvzryvprom excavator for loading and the involvement of the Dressta loader for the shipment of crushed stone 3-10 instead of el. EKG 5A, gasoline by 18% due to an increase in the consumption of PAZ buses due to the need for sighting of railway documents, delivery of goods and materials.

Article " BVR" savings of 2.6 million rubles. in connection with the provision of rock mass in April.

Since the beginning of the year, savings of 2.2 million rubles. due to non-fulfillment of the planned volumes of drilling and blasting.

Article " Third-party company services" savings of 0.7 million rubles. due to non-outsourcing of repair personnel and non-attestation of workplaces (work has begun, completion is planned for August)

Article "Other expenses”(+0.1 million rubles or -78%) due to the creation of a reserve for reclamation.

After carrying out the plan - factual analysis, a focus group is assembled, which may consist of both the heads of the enterprise and invited experts. Focus - a group and offers solutions to eliminate the problems that have arisen, through the improvement of the production process, the introduction of automation and control systems, and appoints those responsible. For example: suggestions for improving the activities of the enterprise:

Due to the increase in the volume of GP production from June to 110 thousand tons per month, it is necessary to coordinate with the Commercial Department the increased volume of GP sales through the TD.

In addition, it is necessary to ensure the daily supply of wagons in accordance with the approved plans.

Responsible for implementation: Ivanov I.I.

As of 07/01/2014, the GP balances in the warehouse amounted to 25 thousand tons of French 5-20 mm and 16 thousand tons of French 3-10 mm.

An increase in production volume by an average of 10% by the end of the year requires an increase in the cost of using consumables for repairs corresponding to an increased volume in the amount of 2,600 thousand rubles. Overspending since the beginning of the year by 4% occurred as a result of emergency equipment failures.

Responsible for implementation - Ivanov I.I.

To ensure the fulfillment of production volumes up to 110 thousand tons of GP per month, an increase in the payroll for the main technological workers and maintenance personnel in the amount of 671 thousand rubles was agreed with the Management Company. per month.

Acquisition and installation of a fuel consumption control and vehicle monitoring system (cost 600 thousand rubles) in order to effectively use equipment and reduce fuel consumption by 10% (270 thousand rubles / month, 1620 thousand rubles for the period July-December) .

Acquisition of truck scales for weighing products shipped by the plant. In July, changes were made and agreed upon in the 2014 IP, work is currently underway to select a contractor.

Implementation of a unified dispatching service in order to reduce organizational downtime and increase the efficiency of the crushed stone production line. Estimated implementation date is 01.10.15. To date, a CL has been drawn up for the repair of premises and software has been selected (SKADO, St. Petersburg).

To increase the speed of shipment of finished products fr.5-20, it is necessary:

Installation of railway scales directly under the loading hopper, which will reduce the time for shunting by 1.5 times and increase the volume of shipment up to 90 wagons per shift. The estimated cost of works and equipment is 3.5 million rubles. The work must be completed in the autumn period, when the volume of shipment of crushed stone will decrease. Completed questionnaires were sent to potential contractors.

The need for implementations and changes, as well as financial possibilities, is calculated, and then the improvement process begins.

As a result, as we can see, the production process is one of the main processes of the organization, rather large funds are spent for its proper operation, and in modern conditions, it is necessary to constantly improve in order for the whole organization not only to survive, but to be stable and profitable.

Bibliographic list:

Reviews:

06/8/2015, 19:23 Skripko Tatyana Alexandrovna
Review: I recommend redoing the first part in the form of a description of the theoretical developments of the problem under consideration, and not an elementary description of the key term. The second part of the enterprise is normal. For revision.

06/9/2015, 18:49 Degtyar Andrey Olegovich
Review: The article does not meet the requirements. The title of the article should be clarified, as there may be different principles for improvement for different types of production processes. The first part of the article resembles the presentation of educational material. There is no substantiation of the relevance of the topic, problem statement, analysis of publications on the topic of the article. The article needs to be improved.

Ways to improve the organization of the main production processes of production must be considered taking into account the characteristics of industries and the type of production:

1. Ensuring the maximum possible homogeneity of work performed at each workplace, based on concentration, specialization of production.

There are three types of specialization: subject, stage and detailed. With the concentration of production, both types of specialization can be used simultaneously. So, in production associations, subject specialization determines the profile of the enterprise, and stage specialization determines the number of structural units specializing in the performance of certain types of work.

The specialization of production provides a number of economic advantages: the concentration of production of homogeneous products allows the use of specialized equipment, the productivity of which is higher than universal; with a stable and narrow range of manufactured products, downtime due to refilling and readjustment of equipment is reduced, better conditions are created to ensure the necessary conjugation of transitions, the stability of the technological process, and the reduction of waste output; the duration of the execution of working methods and the repeatability of some of them are reduced; logistical issues are simplified.

The most important criteria for improving the organizational form of the production process are the degree of approximation of production to continuity and the inextricably linked time savings in production. Continuity in the organization of the production process is expressed in the continuity of work of workers and equipment.

All-round reduction in the length of paths traversed by materials and finished products in the production process.

This is based on the principle of directness.

Direct flow is achieved by the fact that the areas and equipment on which parts of the production process will be performed are located in the order of the operations of the technological process. This arrangement provides the shortest path for the movement of parts, eliminates the return, oncoming movement of objects of labor in the process of their processing.

Ensuring the rhythmic course of production, uniform loading of production capacities and labor resources.

The rhythm of the production process is a prerequisite for any properly organized production. It means the launch and release of equal volumes of products at regular intervals with uniform labor costs for the manufacture of these products during each segment of the planning period.

Achieving maximum equipment utilization by improving operational planning of production and increasing the shift ratio.

Under operational planning understand the preparation of plans for short periods of time for the enterprise as a whole and its individual divisions, the organization of control and operational regulation of these Alans.

Ensuring high reliability and sustainability of production processes.

Reliability is a property of a production system to remain operational for a given period of time under certain conditions, to function, while ensuring the implementation of the production program for the production of products on time and of proper quality. An important means of ensuring the reliability of the system is the redundancy of the main elements of the production process.

The concept of flexible integrated production

In research related to flexible manufacturing systems (FMS), so-called integrated manufacturing systems are attracting special attention. The point of integrated manufacturing systems is to combine processing and assembly operations, and this goal is facilitated by the automation of assembly processes.

The implementation of the GPS may be more active, because this new concept affects all production processes: from the design of the product to its marketing, delivery to the consumer.

The main tool for improving the organization of production at the present stage is the computerization of the management of material, financial and human needs of production. Systematization of individual approaches to improving the organization of production makes it possible to develop a program approach to the continuous improvement of the organization and increase the economic efficiency of production. These programs can be organized as follows:

Group technology;

Organization of production on the principle of "everything only when needed";

Tooling automation;

Computer integration (connectivity of separate differentiated parts) of production.

Flexible automation makes it possible to fully integrate the cycle of creation and production of products by automating the entire complex of technological processes and computer-based control. An important feature is that the production cycle time is significantly reduced, the mobility of production and its efficiency are increased.

The basis of the HIP is the centralization of the processing of parts, the flexibility of equipment and the organization of production on the basis of electronization and cooperation.

The manufacture of products is organized according to the principle of centralization of processing, i.e. the most complete processing of each detail at one workplace.

Flexible production systems (sections and lines), robotic complexes and closed cells for group processing of parts are combined into a single system. Flexible sections from two machining centers have become widespread. In such areas, as a rule, an automatic system for changing tools using a robot, jobs for installing workpieces are organized.

In traditional production, the higher the versatility, the lower the productivity, the higher the cost and the employment of workers. In agile manufacturing, these dependencies change. With the high versatility of technological equipment, high productivity, low cost are achieved, few people are provided and good working conditions are provided (there is no monotony, hard physical labor).

In the context of the transition to flexible production systems, group technology has been further developed, it is often called cell technology. It is going to replace the flow technology. As a result of the introduction of group technology, the cost of designing production is reduced, the setup time and the entire production cycle are reduced. The principle of group technology ensures the continuity of old and new products, which leads to significant savings, increases the reliability of products through the use of designs that have been worked out over the years.

Conditions for the transition to the TTKN principle

The main obstacles to the transition to the organization of production on the principle of TTKN, as a rule, are low discipline and culture of production, although, paradoxically, such production is most in need of the implementation of the principle of TTKN. The greatest difficulties will be where the percentage of lost working time is high (queues at control posts, etc.); too long changeover of equipment, imbalance of processes: equipment is arranged according to technological features; there is insufficient operational communication between sections, shops horizontally, where the fulfillment of planned targets is distributed unevenly over the month, when personnel are transferred from one section to another at the end of the month, etc.

The management of the enterprise should be ready to implement the following changes:

To the transition from production to a warehouse to production for a consumer;

To production in smaller batches, reduction of changeover time, stricter discipline in terms of maintaining equipment performance;

To the transition to the subject placement of equipment, to workshops of group technology, subject-closed areas and to any other placement leading to a reduction in the total number of movements of parts, assemblies and personnel, to direct flow and short distances;

Willingness to work without interoperational backlogs and with a reduction in the number of operations in the conditions of a streaming organization of production;

To large-scale retraining of personnel at all levels.

At the initial stage, the human factor plays an important role. Usually they face insufficient understanding and training of personnel, with their weak, inactive participation in the work on the implementation of certain elements of the TTKN; with the fact that the senior management personnel do not pay due attention to the issues of TTKN, which leads to insufficient communication between all levels and weak production discipline.

operational stage. Experience shows that at this stage, old trends continue to take place, especially in terms of correcting the effect, rather than identifying the cause of the problem and eliminating it. Difficult is the division of responsibility between the divisions of their functions and personnel, which sometimes requires a change in the management structure in accordance with the new requirements of the organization of production. This is usually due to the lack of flexibility of the staff, their inability to deal with changes. The greatest difficulties are associated with the middle managerial link: it resists and shifts responsibility to lower levels and directly to the workers. This leads to a loss of confidence in the ability of management to solve problems, and the transition to the principle of TTKN becomes more difficult. In addition, many problems are related to the lack of awareness of performers and poor attention to the issues of retraining personnel.

A large number of problems that will have to be solved during the transition to the organization of production according to the principle of TTKN require a programmatic approach. The action plan should be aimed at solving the following tasks:

1. Identification and concentration of efforts on the bottlenecks of production, where queues and expectations are formed.

2. Reducing the processing batch size. The action plan should include measures to reduce changeover time by introducing quick change tooling and creating more flexible versatile integrated equipment. It is necessary to critically analyze all the procedures for changing equipment, equipment and tools.

3. Reducing the length of the material flows of parts and assemblies. The length of the streams should be reduced to the minimum necessary number of movements. Moves should only remain between processes (processing, assembly) and should be brought to zero between operations.

4. Strengthening relationships with suppliers. The action plan should include a sub-programme to strengthen relationships with suppliers (measures to eliminate bad, unreliable suppliers, reject suppliers that do not provide quality, etc.).

5. Reducing the number of suppliers.

6. Staff development. The flexibility of staff able to combine different professions is a must.

7. Product quality assurance. Production should aim for "zero defects".

8. Reduction of production documentation and various procedures - the transition to closer horizontal management ties between departments and the delegation of responsibility to a narrower level of management will ensure a reduction in paper flow along the verticals of the management hierarchy. It is necessary that the processing of the order is faster than the products through the shops.

9. Change in organizational structure and clearer division of responsibility.

10. Refinement of the TTKN principle in the context of increasing the level of production flexibility and the transition to computer integration of production (CIP). In practice, instrumentation involves a transition to the organization of production according to the principle of TTKN. The solution of these programs in the reverse order will significantly increase the cost of instrumentation.

Evaluation of the effectiveness of the organization of production according to the principle of TTKN

Reduction of production preparation time by 80 - 90%.

Growth of labor productivity of the main workers by 5 - 50%.

Growth of labor productivity of auxiliary workers by 20-60%.

Reducing the cost of purchased materials and purchased products by 5-10%.

Reduction of stocks and backlogs: raw materials by 35 -75%; work in progress by 30 - 90%; finished products by 50 - 90%.

Reduction of areas by 40 - 80%.

Quality improvement by 50 -55%.

Reducing marriage by 20 - 30%.

Reducing the total number of material movements by 40-60%.

Reducing the production cycle by 40 - 80%.

Reducing the cost of changeover by 60 - 90%

What questions will you find answered in this article:

• Why does the CEO need to listen to the workers?
• How to encourage staff to improve their work?
• What practical tools exist to improve production efficiency?

You will also read:

• How did the working group solve the problem with marriage in the VSMPO-Avisma corporation?
• Why did the time of the total production cycle at the Kaluga Automobile Electrical Equipment Plant decrease?
• Expert advice: how to implement kaizen in five days (comment by Michael Vader)?

Before assembling the engine, the engine armature is balanced to eliminate vibrations - pieces of paste are attached, which break off from the whole piece, like plasticine.

Periodic work is an activity that is not included in every cycle of manufacturing or processing a part: inspection, changing tools, oils, receiving parts, materials in the pantries, cleaning the workplace, etc.

In order for production to work efficiently, it is not enough to purchase equipment and establish production technology. The main part of the production process is the work of the staff. If you can not only teach people to perform daily routine work with high quality, but also interest them in constantly improving their performance, then your production will work smoothly and efficiently. It is important to choose the right control technology.

Methods of Western management recommend standardizing processes, describing them in regulations and bringing them to the attention of the staff strictly “from top to bottom”. But such techniques almost exclude the feedback of the leader with people. As a result, the General Director rarely visits production and does not consider it necessary to listen to the opinion of the working or technical staff. As a result, many production processes are inefficient, and it does not occur to the worker or specialist that he can change the situation. For example, the button of the machine is located under the right hand of the worker, and in order to perform the operation, he has to turn around, spending about a minute on the whole process. On the scale of the whole enterprise, this is a significant time investment. If the button is moved under the left hand, the procedure will take no more than 15 seconds. The problem is that such questions, as a rule, do not reach the level of top management.

A worker who feels like an engaged participant in the process would tell the manager how to speed up the production operations. And the time savings would be obvious.

How to get the CEO interested in the staff

The staff will treat the improvement of production processes at their site as a daily and necessary work if you create an atmosphere of constant search for ways of development in the team. How to do it? Try to convey the following thoughts to subordinates:

• I'm interested in the opinion of all employees of the company.
• Everyone is responsible for their own workflow and can suggest improvements. All will be heard.
• The decision to change production processes will be discussed in working groups and taken collectively.
• Initiative workers will be encouraged.

When employees see that you support change, that the entire enterprise management system is focused on them, they will actively look for ways to improve their own work. It is equally important that employees be confident in the future. It is impossible to take responsibility for the work process and improve it if the threat of dismissal is in the air. For example, in our company, I promised people that while I was in charge of production, none of them would be fired. We are talking about a team of like-minded people, which I formed over the course of several years. For a company that is a participant in the alcohol market, where staff rotations occur frequently, such guarantees are very relevant.

Another incentive for development is the opportunity to acquire professional skills at the plant. When the production opened, there were few specialists. We took university graduates to the position of technologists and trained them from scratch. I spent up to 70-80% of the time in the shops, talking with managers and workers, advising how to solve systemic problems. This is how we do it to this day. In addition, we support employees in their pursuit of career growth. All this allows our people to believe that increasing the efficiency of production (improving quality, productivity, reducing time costs) depends on each of them.

How the working group reduced manufacturing defects

In the corporation "VSMPO-Avisma" in one of the shops there was a lot of marriage. To deal with the problem, we have created a working group.

1. What has been done:

• collected and analyzed data on the causes of nonconforming products;
• the main "problem" products (forged bars
• and rolled rings) and “problem” stages of production (forging and cleaning of bars, production of blanks for rings);
• a questionnaire survey of employees involved in the production of these products was conducted;
• an action plan was created to reduce the number of defects;
• amendments have been made to existing technological documents that clarify some important production points;
• recommendations were written for loading furnaces, allowing for high-quality forging and obtaining conditioned products;
• the forging procedure on the press was detailed and described;
• "forging maps" were created, in which the sequence of transitions and the time allotted for each transition are indicated;
• an instruction was written explaining how to improve the quality of metal forging by optimizing the cleaning process;
• the system of motivation for workers of the forge shop has been changed: now defects are analyzed at meetings of teams, this information is taken into account when making decisions on bonuses;
• training of operators, blacksmiths, foremen to new standards of work was carried out, certification was organized;
• training of foremen in the system of lean production was carried out, which contributed to a change in views on production and a desire among employees to suggest improvements.

2. Bottom line. During the year, the number of defective products decreased by 46%. We did not come to this result immediately. At first, due to misunderstanding on the part of the shop workers, there were difficulties with the implementation of the project. But then, in the process of teamwork and training, the need and opportunity for change became obvious, and then the work went quickly and amicably.

Based on materials provided by Antonina Sokolova, business coach at CenterOrgProm

Expert opinion

Michael Vader
President and Lead Trainer of Leadership Excellence International Inc, Colorado Springs, USA; certified expert in the implementation of lean manufacturing

People should not be afraid to suggest improvements, on the contrary, they should be assured that their efforts will be rewarded. In order for employees to be interested in looking for optimization methods over a long period, it is necessary to gradually connect material motivation. For example, to pay at the end of the quarter (year) bonuses based on the results of savings due to the transformation of funds. It is important that all employees receive equal percentage bonuses and know about it. If a top manager receives, for example, an incentive bonus at the end of the year - 15% of the salary, then the worker should receive at least 15%.

Leadership Excellence International was founded in 1995. Provides consulting services to optimize production and business processes, eliminate hidden losses in production, in organizations in the service sector. It has branches in India, Malaysia, Singapore, and is actively working in the Russian market.

How to implement lean manufacturing

The main task of the General Director is to be the initiator of the implementation of the lean manufacturing method and its active supporter. In practice, you can entrust the implementation to the production director.

There are management tools that encourage staff to take an interest in the work process, as well as constantly improve performance. All of them are aimed at introducing lean thinking into the enterprise. This means that each participant in the process should strive to do their work faster, better and with the least effort. In our factory, we use five tools:

1. Establishment of an autonomous problem-solving working group.

2. Visual management.

3. Rational use of the production site.

4. Change of activities of the staff.

5. Maintenance of equipment (workplace).

1. Establish an autonomous problem-solving working group

As a rule, information from a worker goes to the General Director along the following chain: worker - foreman - foreman - process engineer - head of department - head of workshop - production director - General Director. As a result, information may be distorted or received with a delay.

To speed up the exchange of information, I created working groups at the enterprise. They consist of representatives from all production departments. Groups meet about once a week. Employees are assigned daily, weekly, monthly tasks. Each group solves the issue at its own level, regulates it, and then comes to me with a decision. I'll give you an example. Preparation of activated carbon before loading into carbon columns was a laborious and messy process. On the initiative of the employees, a plant was developed and constructed that allows to carry out this operation with lower labor costs and with better quality. Now coal preparation technology is the know-how of our company

What gives. As a result of this practice, in recent years, the loss of raw materials and auxiliary materials has decreased several times.

CEO speaking

Alexey Baranov


In one Russian car assembly company, the work is built as follows. At a weekly meeting, the assembler team considers the operators' suggestions for process improvement. Then a decision is made on the implementation of one or more proposals. What would then happen in most companies? Weekly approval of rationalization proposals, visas in many offices. What's going on here? The team's decision is binding on management. And the head of the shop has one month to implement it. Did not meet - blame yourself. The team will meet again in a month and demand a report.

TsentrOrgProm LLC is a Russian provider of services for the development of Lean systems (lean manufacturing, kaizen, Toyota Production System). Clients - "Rusal", KamAZ, "VSMPO-Avisma", "AvtoVAZ", Uralmashzavod, confectionery factory "May 1", "Uralsvyazinform" and other companies in Russia and neighboring countries.

2. Visual management

Visual management tools can be different depending on the specifics of production. The development and application of visual management tools in production is usually the responsibility of the quality department. At our plant, there are bar charts in front of the workshops, and all employees can get acquainted with the state of the production line by shifts. Indicators below the norm are marked in red. Next comes the downtime analysis, all performers identify its causes. They can be organizational, supply-related, functional, etc. Quality department employees document the work of the bottling line per shift, the operation of machines, and analyze the reasons for stoppages. All this is noted on the primary sheets of accounting, compiled and then analyzed at meetings with the head of the shop. Another useful tool for visual management in production is the distinctive color of the work clothes of QCD employees. In our production, the specialists of this department are dressed in bright clothes so that each employee, if a problem or question arises, can quickly seek advice.

What gives. Saving time and labor costs.

CEO speaking

Alexey Baranov

General Director of CenterOrgProm LLC, Yekaterinburg

Along with histograms, you can use the andon board system - a device for visual control of the production process. It can be a scoreboard that shows what is happening at the enterprise, or several light bulbs that light up, notifying about certain processes. For example, a red light indicates that the equipment has stopped for some reason, a light of a different color is on if the equipment needs to be loaded, that is, the materials have run out or the intervention of workers is needed.

3. Rational use of the production site

Rationally organized workplaces meet the following requirements: free space around the worker, no obstacles (nothing should interfere with his movements), passages between machines and workshops are designed so that workers do not have to spend a lot of time moving.

What gives. Increasing the utilization rate of equipment, saving time and labor costs, freeing up production space, reducing losses during transportation and movement.

Practitioner tells

Marina Antyufeeva
Director for Development, Production Optimization and Quality Management System, Autocomponents Division, Avtokom OJSC, Kaluga

In 2005, at the Kaluga Automobile Electrical Equipment Plant (KZAE), I headed the production development center. We started to implement improvements in the assembly areas, as there were equipment that was easy to move, and short-term operations were carried out. At all plants in Russia, there is now a shortage of personnel; there was a shortage of balancers at the assembly sites of this enterprise. When observing the work of the operator, it turned out that the balancer receives the paste in the workshop warehouse four to five times per shift (which is 1.66 seconds per part). If the balancing paste is delivered to the workplace, this will give a reduction in periodic work by 35 hours.

Another example. Analyzing the work of the unit assembly site, it was revealed that the equipment was placed not according to the technological chain, but according to the principle “where there was free space”. We made a new layout, arranged the equipment in series - in accordance with the technological process. Now the part moved from machine to machine and passed from hand to hand. There was no need for a large number of containers and a supply of parts, 90 square meters were released. m of space, the time of the total production cycle decreased from 420.11 sec. up to 331.86 sec. This increased the capacity of the section by 20%. And most importantly, operators, mostly women, no longer carry burdens from one workplace to another.

JSC "Autocom"- one of the AvtoVAZ suppliers, manages the Kaluga Autoelectronics Plant, the Avtopribor Plant (Kaluga), the Kozelsky Mechanical Plant (Kaluga Region), the Lyskovsky Electrotechnical Plant (Nizhny Novgorod Region), the Serpukhov Automobile Plant, owns a 50% share of the Kinelagroplast plant (Samara Region). The company was founded in 2000. The number of employees is 16.5 thousand. Annual turnover - 300 million US dollars.

4. Change of activities (staff rotation)

After you have explained to people that it is possible and necessary to offer improvements, it is necessary that this be done not from time to time, but systematically. It is important that employees understand what the result of work in their production area depends on, so that they become familiar with related processes. If an employee produces low-quality products and it gets to the next shop, the workers of this shop will have no time to think about whether to improve the process - it will be necessary to eliminate the marriage. You can solve this problem by rotating staff. Recommend to the production director to move specialists from one shop to another several times a year.

At our plant, specialists from one workshop periodically move to another and work there for some time. For example, technologists from the blending shop move to the bottling shop, where more questions are related to the organization of labor and assembly. So far, this practice is common only in production, but over time, I hope it will be applied throughout the company.

What gives. Employees become familiar with related processes, communicate, work together to solve cross-functional problems, and then standardize the procedure to prevent future recurrence of these problems. In addition, this approach disciplines the staff, allows you to understand what exactly slows down the work at the enterprise, which specialists duplicate or redo each other's work.

5. Maintenance of equipment (workplace)

Work at the enterprise should be convenient. To do this, it is necessary that the condition of the equipment be impeccable, that everything necessary (tools, workpieces) be at hand, and all unnecessary be removed from the desktop. Our company has an equipment care system that requires the participation of not only employees of the technical department, but also machine operators at their workplaces. It includes scheduled preventive maintenance and preventive inspections.

What gives. Changeover time is reduced, the risks of emergency shutdown of equipment are reduced, and production safety is increased. As a result of careful attitude to the equipment in our company, we have achieved the maximum utilization rate of bottling lines - 0.88–0.90 (whereas normally it is 0.80–0.85) using domestic equipment. Some companies cannot achieve this on advanced German and Italian equipment.

Boeing visual control system

The visual production management system at the Boeing Moscow Design Center is arranged as follows. The designers are in a large hall, each has his own workplace, which is fenced off from the rest by small partitions. Each person works at his own computer and is not distracted by anything, but if he gets up, he can see the whole hall. The manager's workplace is on some elevation, and he sees the whole hall. The center adopted such a visual system: if the designer has completed the task, he raises a green flag. The manager sees that the employee is free and can perform the next task. If the performer has problems that do not require immediate attention, then he raises the yellow flag. And the leader knows that when he has free time, he must approach this person. If the problem is serious (the designer cannot complete even half of his task), the employee raises a red flag - this is already a signal not only for the manager, but for the entire team of employees assigned in advance. Team members see a red flag and immediately go to a colleague in need of help, figure out what's wrong, and fix the problem together.

Based on materials provided by TsentrOrgProm LLC

CEO speaking

Alexey Baranov
General Director of CenterOrgProm LLC, Yekaterinburg

At one of the light industry enterprises located on the Volga, the team of fitters had the following situation: each fitter on duty had his own box, which contained all the tools, fixtures, components, including absolutely unnecessary ones. It took a lot of time to find the tool necessary for the job - more than five minutes. When the enterprise began to organize workplaces, the working group, together with the adjusters, analyzed the contents of their boxes. They removed everything rarely used and unnecessary and came to the conclusion that instead of boxes for each adjuster, you can get one for the whole team. So instead of twelve toolboxes, there were only four. Since the number of tools and fixtures has been reduced, less time is now spent searching for the necessary tool - just a few seconds.

How to Implement Kaizen in Five Days

Michael Vader
President and Lead Trainer of Leadership Excellence International Inc, Colorado Springs, USA; certified expert in the implementation of lean manufacturing.

You can start the implementation of kaizen in the enterprise with a five-day assault-breakthrough. The CEO can participate in the process personally, entrust control of the process to the production director (in the case of a manufacturing plant), or involve an external consultant.

1st day. The CEO should give employees a specific goal to achieve after the five day period (eliminate wastage by so many percent, increase productivity by so many percent, reduce cycle time, etc.). It is especially important to show that you will listen to the opinion of not only the top manager, but also the worker.

The next step is to create a working group. It should include no more than six to eight people. Each member of the group has one vote, everyone has the right to express their own opinion. Approximate composition of the group:

• two operators (performing mechanical work);
• engineer or supervisor (manager responsible for a specific area where improvements are required);
• the head of the quality service (if we are talking about processes on which quality depends) or the repairman (if these are production processes);
• two people from other departments (accounting, purchasing or acceptance-shipment department, representative of the supplier or customer); these people, who are not privy to the process, will ask questions, perhaps silly, from the point of view of specialists, but necessary for the emergence of new, breakthrough ideas.

The team goes to the shop floor and collects data on the performance of current operations as of one day (production volume, scrap rate, quality issues, hidden losses due to movement through the warehouse, machine downtime, etc.). Then the problems that arise in the process of achieving the goal set by the Director General are described. The task of the first day of the group is to understand the goal and collect data about the process.

2nd day. The person in charge (CEO, COO, external consultant) should take the lead in reviewing the team's list of issues that need to be addressed on the way to the goal. All participants are involved in the discussion. Combine similar ideas and try to focus on two or three possible solutions. The proposed improvements need to be measurable.

3rd day. The working group discusses the possibility of implementing the ideas. Let the team agree that small trial improvements will be implemented in which all employees can participate. Someone on the team should start documenting the new procedures. It should be noted that the group submits a report on the transformations to the General Director no later than the fifth day.

4th day. The group continues to implement the changes and begins to work on measuring the effectiveness of the new process. To tell management what improvements the team has made, it will need to compare performance before and after the change.

5th day. The group finalizes the documentation of the new operating procedures and reports back to the CEO (if he did not participate in the brainstorming) what improvements were made.

Process improvement is a very broad topic that can be approached in many ways. In general, there are five main areas for improving production:

• production capacity management;
• Inventory Management;
• continuous improvement;
• supply chain and supply chain management;
• building up production capabilities.

Production capacity management

Principle 1

Production capacity is determined by the weakest link, or bottleneck. To increase the overall production capacity, it is necessary to "embroider" a bottleneck.

It is not worth spending time on improving the efficiency of each piece of equipment or each participant in the production process. The power of the system as a whole is not determined by the idle hours of one or another equipment or workers. Production capabilities are limited by the capacity of the weakest (or least productive) link. As soon as this is clarified, the manager will have certain prospects.

1. If it's all about bottlenecks, the most important technique for increasing production capacity is to identify and eliminate them. The sidebar “How to identify bottlenecks” lists five criteria for identifying bottlenecks. When eliminating the latter, resources should be directed primarily to where the greatest return is expected.
2. To maximize the production capabilities of the system, it is necessary to equalize the load in different production areas. You should not strive for the highest performance of individual types of equipment or processes, because the capabilities of the system as a whole fetter bottlenecks.
3. Downtime of people or equipment at a site that is a bottleneck is extremely costly, because it stops the entire production. Downtime of people or equipment in other areas cannot affect the performance of the system as a whole and does not represent a problem in itself; the problem arises when a downtime in one place leads to a halt in the entire production process.
4. Summary measures of production possibilities and capacity utilization provide little information for decision making. Diagnosing problems and choosing ways to improve production require that individual types of resources become the subject of analysis. For example, to increase production capacity, you can reduce the changeover time of processes or equipment, but this is only effective if you reduce the changeover time in areas that are bottlenecks. By reducing the changeover time in other parts of production, we increase their throughput, but not the throughput of the enterprise as a whole. Moreover, bottlenecks can be the result of insufficient equipment capacity or a lack of personnel, and some analysis needs to be done in order to identify the real cause. For example, a hospital may have a sufficient number of operating rooms, but if there are not enough nurses and surgeons, some of the operating rooms will be empty and the number of operations performed will be limited by a lack of staff, not equipped facilities.
5. Finally, if production volume is subject to fluctuations, it is necessary to have a reserve of capacity in bottlenecks. If the system is barely capable of producing average output, then trying to increase it will either create long queues for finished goods, or costly surplus inventories of semi-finished products, or both. The question arises, what should be the reserve capacity. It is answered in different ways, but in a number of industries, equipment utilization, well over 80%, is the basis for testing the sufficiency of production capacity.

Principle 2

Production capacity also depends on the structure of production processes. Care should be taken to ensure that the production processes are consistent with the structure of the products produced.

To provide different kinds of services or produce different products, to meet the needs of consumers and to achieve certain competitive advantages, different types of production processes are needed. Robert G. Hayes and Stephen C. Wheelwright (1984) identified five such types, which correspond to certain types of products.

1. When it comes to creating unique products, such as a communications satellite or a luxury mansion, it is worth forming a special design team with its own unique management.
2. When producing relatively small batches of very diverse products, it is advisable to use a system of production teams.
3. Approximately the same system should be used for the production of medium-sized batches of several types of products.
4. For relatively large batches of products produced according to a single technology (usually for warehouse stocks), it is reasonable to use assembly lines with mechanized or manual assembly.
5. For mass production of consumer goods, it is advisable to use automated, capital-intensive processes.

The main idea is that firms usually tend to organize production according to the logic determined by the diagonal of the production process matrix (see Table 8.1). It can be put differently: no firm wants to be outside this diagonal even by chance. An accidental descent from it takes place when managers, yielding to competitive pressure, increase the range of products without making corresponding changes in the structure and organization of production.

But there are several reasons sufficient to knowingly and intentionally go beyond the diagonal. First, flexible automated equipment allows firms to use in-line production lines to economically produce small batches of products (spot production), which brings the firm below the matrix diagonal. Second, when competitors use automated processes, a firm can differentiate its product by turning to manual labor. A good example is the glass production company Steuben. Thirdly, the firm can implement automation when it is not yet economically justified, in anticipation of an increase in orders.

Inventory Management

For accounting purposes, inventories are classified into three groups: raw materials, work in progress and finished products. This classification tells us that what such stocks, but does not answer the question, why they are needed. To make operational decisions about how much inventory is required or how to reduce its volume, it is more useful to group them by functional purpose. Cyclical, or underlying, stocks provide a normal production process, economies of scale and make it possible to avoid too frequent changeovers of equipment. Safety stock held in case of supply disruptions or unexpected increases in demand. These stocks should support the normal working rhythm of the enterprise. In case of insufficient balance of production between work areas, they keep buffer stocks. In addition, it is possible inventory in transit, seasonal inventory raw materials or finished products in case of changes in the conditions of supply and marketing and speculative stocks in case of price changes.

Maintaining inventory costs money. These are the costs of warehousing and insurance of stocks, as well as interest on unused stocks. The opportunity cost of capital, dead in stocks, is sometimes very high. And for companies involved in international operations, the cost and risk associated with having inventory depends on where it is stored. For example, inventories held in Brazil are more exposed to impairment or appreciation due to currency fluctuations than inventories held in Canada. However, if there is a shortage of raw materials or finished products, there will be problems with the stability of production or order fulfillment, and additional costs will be required for urgent replenishment of stocks. In addition, the presence of stocks allows faster fulfillment of customer orders.

For examples of how improved inventory management leads to increased profits, see the sidebar “Inventory Reduction Drives Profit Growth.”

Principle 3

When managing inventory, you have to make a choice between a large amount of inventory (more expensive) and a small amount (there is a risk of shortages plus the cost of frequent replenishment of warehouses). It is possible to avoid this dilemma and reduce the cost of inventory maintenance.

The decision on the size of cyclical (basic) stocks depends on the ratio of costs for storage and replenishment of stocks. The more diversified the product, the larger the inventory should be, but there is an opportunity to save on purchase lots and on the cost of restocking. By reducing the supply lines, it is possible to produce small batches of products more economically and spend less on inventory. The same idea underpins efforts to reduce restocking times, streamline production batches, and organize just-in-time production. Shortening the supply lines allows you to reduce the amount of inventory, reduce the amount of waste, reduce the time to fulfill orders and identify quality degradation faster.

The decision on the size of safety stocks (or on the timing of the order for replenishment of stocks) depends on the ratio between the cost of stocks and the costs arising from their shortage (the possibility of savings on the size of purchases must also be taken into account).

The decision on the size of stocks in transit is determined by the ratio between the cost of stocks and losses due to their shortage. Thus, when managing stocks, one must be able to balance the cost of stocks and losses from shortages, from the use of substitutes or the transfer of orders to subcontractors. Decisions about speculative stocks must take into account the relationship between the value of stocks and the possible range of price changes.

You can approach inventory management analysis in terms of order quantity, or you can use the broader possibilities offered by the approaches described in Table 8.2. For example, insurance stock management is not limited to the issue of average inventory. If product quality is improved, the need for spare parts will be reduced. Long-term contracts increase the stability of the production process. Acceleration of work will allow to produce on order most of the products. There is a chance to improve the quality of forecasts so that the volume of production is more in line with the actual value of demand.

To reduce the inventory of components and parts, you can reduce the range of manufactured product models, either develop models so that they have as many of the same components as possible, or individualize products at the last stages of production and, accordingly, maintain a stock of only those parts that are common to all models. (see sidebar). Reducing the range of finished products, assemblies and parts allows you to combine risks and reduce the need for safety stocks compared to the case when you have to keep all stocks of assemblies and parts separately for each manufactured model. With this approach to reducing inventory, centralization of production is useful.

Principle 4

Inventory should not be used to mask production problems. The higher the quality of production processes and finished products, the more you can reduce inventory without risking a shortage situation.

The higher the quality of production processes and products, the less the protection created by excess stocks is needed. You can liken reserves to river water, and production problems to underwater rocks. If you remove the rocks, the flow of the river will become smoother, but when the water level drops, new rocks will be revealed. After repeating the procedure many times, the flow of the river becomes smoother even at a very low water level, in other words, with a very small level of reserves. The meaning of this analogy is that the cycle of improving the production process and reducing inventory levels must be repeated again and again, continuously improving the quality of production and inventory management.

Principle 5

If a customer waits in line to receive a product or service, it reduces its value. It is necessary to adjust the length of the queue in order to find the optimal balance between the direct and indirect losses created by the need to wait and the idle time of the attendants.

In the service industry, inventory often takes the form of queues in which customers eagerly wait for an appointment or, worse, decide not to wait but to go to another organization. The participants in the queues are both visitors who come at any time without any appointment, and the service personnel of the company. Services of varying complexity are required from him, so the time spent on each client is different *. It is important to control the length of the queue, because waiting is often expensive for customers. This reduces the value of products or services for them, which means that the income of the company providing this product or service also falls. But the downtime of its staff is also costly for the company, because the lost time also needs to be paid. Since customers do not come on schedule, and the duration of their service is not the same, it is impossible to completely eliminate the expectation of visitors and downtime of the company's employees. Only adjustment and minimization of time losses can take place here (see Fig. 8.2).

There are a number of methods for regulating the waiting time in the queue and the duration of downtime for service personnel. You can bring on extra workers during peak times and get by with fewer when the clientele dwindles. Through training, analysis of service processes, and investments in technology, the speed of service can be improved. Sometimes it is possible, with the help of various incentives, to reduce the influx of customers during peak hours, or to introduce service on weekends and in the evenings, or to organize a round-the-clock appointment of customers by phone. You can introduce an appointment system instead of a first come first served basis. You can evenly distribute visitors if they need the same service, but there are several employees. Sometimes this is easy to do - as happens at airports, where tickets are sold at the same time in several windows, and the queue is common. In other cases, more complex solutions are needed.

It is important to take into account the relative magnitude of the costs. Maintenance downtime is not always a bad thing. Sometimes it is better to let the storekeeper miss the desk part of the time than to have a line of highly paid engineers and mechanics waiting for him to get the necessary tools and assemblies.

Quality improvement.

Improving the quality of production processes and finished products is a decisive condition for attracting consumers and reducing costs. Quality is a multi-dimensional concept of the product itself (reliability, specificity, efficiency, attractiveness, ability to eliminate defects), after-sales service (atmosphere, comfort, waiting time, reliability and convenience) and the production process (low cost, standardization, minimum scrap and waste, controllability and predictability). For example, BMW and Toyota both produce high-quality cars, but in advertising they emphasize different advantages of their cars.

Quality management goes beyond the functional units and even the organization as a whole. Quality programs may include measuring product defects or service deficiencies, establishing defect prevention systems, partnering with suppliers, networking with customers to better understand their needs, changing employee incentives and compensation systems, and changing the overall business concept if it helps to improve production. processes.

Principle 6

Poor quality is costly. You have to pay for high quality, but this is the right investment.

Successful quality management programs seek quality not for its own sake, but to improve product performance or service value and thus increase customer benefits. Sometimes quality improvement programs lead directly to cost savings because defects are reduced, rework costs are reduced, and defective products are discarded. In such cases, productivity increases because everything is done right at once. Often, efforts to improve quality are associated with increased costs, but at the same time, the product or service acquires such properties that the buyer is willing to pay a higher price. Proponents of TQM point out that in both these cases, the improvement in quality goes to the manufacturer for nothing.

Sometimes the improvement in quality is accompanied by an increase in the cost, but without a corresponding markup. Here, quality does not come for free, but it is a good investment if the management of the company foresees future returns in the form of more loyal customers, higher demand, or future price increases as a sign of high quality. Like other investments, investments in process improvement may not pay off immediately, but should only be undertaken if they promise a positive net present value to the firm. The point is not that managers should aim for an accurate count of all possible benefits (which are not always easy to measure and evaluate). But it is necessary to balance the costs of quality improvement with the possible benefits, especially since a failed quality improvement program can burden production with unnecessary additional costs.

Principle 7

It is cheaper to prevent defects than to control and eliminate defects.

Different people have different understandings of what TQM is, but the ultimate point of this method is to use analysis and quality management to improve profitability. The most important part of the method is the analysis, since it is it that allows you to understand what needs to be done to prevent defects and improve quality. An alternative to defect prevention is control, which determines which finished products can be traded and which can be recycled. In general, it is cheaper to do everything right at once than to recycle. In general, it is cheaper to do everything right at once than to identify defects later and either fix them or send products to waste.

W. Edwards Deming distinguished two main sources of quality problems: common causes generated by the features of management or production processes, and private associated with specific pieces of equipment or workers. Common causes are systemic in nature: poor design of manufactured products, machinery and equipment requiring repair and adjustment, insufficient training of personnel, poor quality of raw materials, their late delivery or incorrect specification, inadequate incentive system for workers, poor working conditions, as well as any other problems, affecting workers, maintenance personnel or equipment. Partial causes relate to individual workers or pieces of equipment: lack of skill, inattention, violation of the operating mode of operation of the equipment, defects in the batch of raw materials. Deming showed that it was possible to use statistical analysis to distinguish between two sources of problems, and then deal with the solution of either general problems or specific ones. Relevant measures result either in a constant and gradual improvement of production, or in a radical perestroika systems as a whole.

Many companies define quality as compliance. The manufacturing process is considered fit if the product meets established specifications or customer requirements. If the product does not meet the specifications, the common causes of defects should be looked for and eliminated. The manufacturing process is considered controlled when the properties of the product are stable and predictable, even if some parameters are outside the limits set in the specifications (then you need to pay attention to common causes and restore the suitability of the production process parameters). If the process is suitable but uncontrollable (and therefore there is an unpredictable drift of parameters), you need to look into identifying partial causes. It is clear that the best situation is when the production process is both suitable and controlled.

Principle 8

Maintaining quality requires communication and commitment throughout the organization to improve quality. What you measure and reward will improve.

Instead of a narrow definition of quality (conformity to specifications), a broader definition can be used − what would you like from the product as a consumer. With this approach, a well-thought-out incentive system is needed to constantly improve quality. This means that managers must find properties and parameters of products that can be measured and paid for. Good quality measures must be precisely matched to those features of a product or service that the marketplace pays a premium for, or that will provide a lower price for a product as good as competitors.

It is best to have a relatively short and stable list of characteristics. It is easy to make this list as long as you like, but it is better to highlight a small number of reliable parameters that are in the interests of consumers.