Monday, December 26, 2022

Personal Relations Between Employers and Employed - F.W. Taylor




Regarding the personal relations which should be maintained between employers and their men, the writer quotes the following paragraphs from a paper written in 1895. Additional experience has only served to confirm and strengthen these views; and although the greater part of this time, in his work of shop organization, has been devoted to the difficult and delicate task of inducing workmen to change their ways of doing things he has never been opposed by a strike.

"There has never been a strike by men working under this system, although it has been applied at the Midvale Steel Works for the past ten years; and the steel business has proved during this period the most fruitful field for labor organizations and strikes. And this notwithstanding the fact that the Midvale Company has never prevented its men from joining any labor organization. All of the best men in the company saw clearly that the success of a labor organization meant the lowering of their wages in order that the inferior men might earn more, and, of course, could not be persuaded to join.

"I attribute a great part of this success in avoiding strikes to the high wages which the best men were able to earn with the differential rates, and to the pleasant feeling fostered by this system; but this is by no means the whole cause. It has for years been the policy of that company to stimulate the personal ambition of every man in their employ by promoting them either in wages or position whenever they deserved it and the opportunity came.

"A careful record has been kept of each man's good points as well as his shortcomings, and one of the principal duties of each foreman was to make this careful study of his men so that substantial justice could be done to each. When men throughout an establishment are paid varying rates of day-work wages according to their individual worth, some being above and some below the average, it cannot be for the interest of those receiving high pay to join a union with the cheap men.

"No system of management, however good, should be applied in a wooden way. The proper personal relations should always be maintained between the employers and men; and even the prejudices of the workmen should be considered in dealing with them.

"The employer who goes through his works with kid gloves on, and is never known to dirty his hands or clothes, and who either talks to his men in a condescending or patronizing way, or else not at all, has no chance whatever of ascertaining their real thoughts or feelings.

"Above all is it desirable that men should be talked to on their own level by those who are over them. Each man should be encouraged to discuss any trouble which he may have, either in the works or outside, with those over him. Men would far rather even be blamed by their bosses, especially if the 'tearing out' has a touch of human nature and feeling in it, than to be passed by day after day without a word, and with no more notice than if they were part of the machinery.

"The opportunity which each man should have of airing his mind freely, and having it out with his employers, is a safety-valve; and if the superintendents are reasonable men, and listen to and treat with respect what their men have to say, there is absolutely no reason for labor unions and strikes.

"It is not the large charities (however generous they may be) that are needed or appreciated by workmen so much as small acts of personal kindness and sympathy, which establish a bond of friendly feeling between them and their employers.

"The moral effect of this system on the men is marked. The feeling that substantial justice is being done them renders them on the whole much more manly, straightforward, and truthful. They work more cheerfully, and are more obliging to one another and their employers. They are not soured, as under the old system, by brooding over the injustice done them; and their spare minutes are not spent to the same extent in criticizing their employers."

The writer has a profound respect for the working men of this country. He is proud to say that he has as many firm friends among them as among his other friends who were born in a different class, and he believes that quite as many men of fine character and ability are to be found among the former as in the latter. Being himself a college educated man, and having filled the various positions of foreman, master mechanic, chief draftsman, chief engineer, general superintendent, general manager, auditor, and head of the sales department, on the one hand, and on the other hand having been for several years a workman, as apprentice, laborer, machinist, and gang boss, his sympathies are equally divided between the two classes.

He is firmly convinced that the best interests of workmen and their employers are the same; so that in his criticism of labor unions he feels that he is advocating the interests of both sides. The following paragraphs on this subject are quoted from the paper written in 1895 and above referred to:


"The author is far from taking the view held by many manufacturers that labor unions are an almost unmitigated detriment to those who join them, as well as to employers and the general public.

"The labor unions--particularly the trades unions of England--have rendered a great service, not only to their members, but to the world, in shortening the hours of labor and in modifying the hardships and
improving the conditions of wage workers.

"In the writer's judgment the system of treating with labor unions would seem to occupy a middle position among the various methods of adjusting the relations between employers and men.

"When employers herd their men together in classes, pay all of each class the same wages, and offer none of them any inducements to work harder or do better than the average, the only remedy for the men lies in combination; and frequently the only possible answer to encroachments on the part of their employers is a strike.

"This state of affairs is far from satisfactory to either employers or men, and the writer believes the system of regulating the wages and conditions of employment of whole classes of men by conference and agreement between the leaders of unions and manufacturers to be vastly inferior, both in its moral effect on the men and on the material interests of both parties, to the plan of stimulating each workman's
ambition by paying him according to his individual worth, and without limiting him to the rate of work or pay of the average of his class."

The amount of work which a man should do in a day, what constitutes proper pay for this work, and the maximum number of hours per day which a man should work, together form the most important elements which are discussed between workmen and their employers. The writer has attempted to show that these matters can be much better determined by the expert time student than by either the union or a board of directors, and he firmly believes that in the future scientific time study will establish standards which will be accepted as fair by both sides.


There is no reason why labor unions should not be so constituted as to be a great help both to employers and men. Unfortunately, as they now exist they are in many, if not most, cases a hindrance to the prosperity of both.

The chief reasons for this would seem to be a failure on the part of the workmen to understand the broad principles which affect their best interests as well as those of their employers. It is undoubtedly true, however, that employers as a whole are not much better informed nor more interested in this matter than their workmen.

One of the unfortunate features of labor unions as they now exist is that the members look upon the dues which they pay to the union, and the time that they devote to it, as an investment which should bring them an annual return, and they feel that unless they succeed in getting either an increase in wages or shorter hours every year or so, the money which they pay into the union is wasted. The leaders of the unions realize this and, particularly if they are paid for their services, are apt to spend considerable of their time scaring up grievances whether they exist or not This naturally fosters antagonism instead of friendship between the two sides. There are, of course, marked exceptions to this rule; that of the Brotherhood of Locomotive Engineers being perhaps the most prominent.

The most serious of the delusions and fallacies under which workmen, and particularly those in many of the unions, are suffering is that it is for their interest to limit the amount of work which a man should do in a day.

There is no question that the greater the daily output of the average individual in a trade the greater will be the average wages earned in the trade, and that in the long run turning out a large amount of work each day will give them higher wages, steadier and more work, instead of throwing them out of work. The worst thing that a labor union can do for its members in the long run is to limit the amount of work which they allow each workman to do in a day. If their employers are in a competitive business, sooner or later those competitors whose workmen do not limit the output will take the trade away from them, and they will be thrown out of work. And in the meantime the small day's work which they have accustomed themselves to do demoralizes them, and instead of developing as men do when they use their strength and faculties to the utmost, and as men should do from year to year, they grow lazy, spend much of their time pitying themselves, and are less able to compete with other men. Forbidding their members to do more than a given amount of work in a day has been the greatest mistake made by the English trades unions. The whole of that country is suffering more or less from this error now. Their workmen are for this reason receiving lower wages than they might get, and in many cases the men, under the influence of this idea, have grown so slow that they would find it difficult to do a good day's work even if public opinion encouraged them in it.

In forcing their members to work slowly they use certain cant phrases which sound most plausible until their real meaning is analyzed. They continually use the expression, "Workmen should not be asked to do more than a fair day's work," which sounds right and just until we come to see how it is applied. The absurdity of its usual application would be apparent if we were to apply it to animals. Suppose a contractor had in his stable a miscellaneous collection of draft animals, including small donkeys, ponies, light horses, carriage horses and fine dray horses, and a law were to be made that no animal in the stable should be allowed to do more than "a fair day's work" for a donkey. The injustice of such a law would be apparent to every one. The trades unions, almost without an exception, admit all of those in the trade to membership--providing they pay their dues. And the difference between the first-class men and the poor ones is quite as great as that between fine dray horses and donkeys. In the case of horses this difference is well known to every one; with men, however, it is not at all generally recognized. When a labor union, under the cloak of the expression "a fair day's work," refuses to allow a first-class man to do any more work than a slow or inferior workman can do, its action is quite as absurd as limiting the work of a fine dray horse to that of a donkey would be.

Promotion, high wages, and, in some cases, shorter hours of work are the legitimate ambitions of a workman, but any scheme which curtails the output should be recognized as a device for lowering wages in the long run.

Any limit to the maximum wages which men are allowed to earn in a trade is equally injurious to their best interests. The "minimum wage" is the least harmful of the rules which are generally adopted by trades unions, though it frequently works an injustice to the better workmen. For example, the writer has been used to having his machinists earn all the way from $1.50 to seven and eight dollars per day, according to the individual worth of the men. Supposing a rule were made that no machinist should be paid less than $2.50 per day. It is evident that if an employer were forced to pay $2.50 per day to men who were only worth $1.50 or $1.75, in order to compete he would be obliged to lower the wages of those who in the past were getting more than $2.50, thus pulling down the better workers in order to raise up the poorer men. Men are not born equal, and any attempt to make them so is contrary to
nature's laws and will fail.

Some of the labor unions have succeeded in persuading the people in parts of this country that there is something sacred in the cause of union labor and that, in the interest of this cause, the union should receive moral support whether it is right in any particular case or not.

Union labor is sacred just so long as its acts are fair and good, and it is damnable just as soon as its acts are bad. Its rights are precisely those of nonunion labor, neither greater nor less. The boycott, the use of force or intimidation, and the oppression of non-union workmen by labor unions are damnable; these acts of tyranny are thoroughly un-American and will not be tolerated by the American people.

One of the most interesting and difficult problems connected with the art of management is how to persuade union men to do a full day's work if the union does not wish them to do it. I am glad of the opportunity of saying what I think on the matter, and of explaining somewhat in detail just how I should expect, in fact, how I have time after time induced union men to do a large day's work, quite as large as other men do.

In dealing with union men certain general principles should never be lost sight of. These principles are the proper ones to apply to all men, but in dealing with union men their application becomes all the more
imperative.

First. One should be sure, beyond the smallest doubt, that what is demanded of the men is entirely just and can surely be accomplished. This certainty can only be reached by a minute and thorough time study.

Second. Exact and detailed directions should be given to the workman telling him, not in a general way but specifying in every small particular, just what he is to do and how he is to do it.

Third. It is of the utmost importance in starting to make a change that the energies of the management should be centered upon one single workman, and that no further attempt at improvement should be made until entire success has been secured in this case. Judgment should be used in selecting for a start work of such a character that the most clear cut and definite directions can be given regarding it, so that failure to carry out these directions will constitute direct disobedience of a single, straightforward order.

Fourth. In case the workman fails to carry out the order the management should be prepared to demonstrate that the work called for can be done by having some one connected with the management actually do it in the time called for.

The mistake which is usually made in dealing with union men, lies in giving an order which affects a number of workmen at the same time and in laying stress upon the increase in the output which is demanded instead of emphasizing one by one the details which the workman is to carry out in order to attain the desired result. In the first case a clear issue is raised: say that the man must turn out fifty per cent more pieces than he has in the past, and therefore it will be assumed by most people that he must work fifty per cent harder. In this issue the union is more than likely to have the sympathy of the general public, and they can logically take it up and fight upon it. If, however, the workman is given a series of plain, simple, and reasonable orders, and is offered a premium for carrying them out, the union will have a much more difficult task in defending the man who disobeys them. To illustrate: If we take the case of a complicated piece of machine work which is being done on a lathe or other machine tool, and the workman is called upon (under the old type of management) to increase his output by twenty-five or fifty per cent there is opened a field of argument in which the assertion of the man, backed by the union, that the task is impossible or too hard, will have quite as much weight as that of the management. If, however, the management begins by analyzing in detail just how each section of the work should be done and then writes out complete instructions specifying the tools to be used in succession, the cone step on which the driving belt is to run, the depth of cut and the feed to be used, the exact manner in which the work is to be set in the machine, etc., and if before starting to make any change they have trained in as functional foremen several men who are particularly expert and well informed in their specialties, as, for instance, a speed boss, gang boss, and inspector; if you then place for example a speed boss alongside of that workman, with an instruction card clearly written out, stating what both the speed boss and the man whom he is instructing are to do, and that card says you are to use such and such a tool, put your driving belt on this cone, and use this feed on your machine, and if you do so you will get out the work in such and such a time, I can hardly conceive of a case in which a union could prevent the boss from ordering the man to put his driving belt just where he said and using just the feed that he said, and in doing that the workman can hardly fail to get the work out on time. No union would dare to say to the management of a works, you shall not run the machine with the belt on this or that cone step. They do not come down specifically in that way; they say, "You shall not work so fast," but they do not say, "You shall not use such and such a tool, or run with such a feed or at such a speed." However much they might like to do it, they do not dare to interfere specifically in this way. Now, when your single man under the supervision of a speed boss, gang boss, etc., runs day after day at the given speed and feed, and gets work out in the time that the instruction card calls for, and when a premium is kept for him in the office for having done the work in the required time, you begin to have a moral suasion on that workman which is very powerful. At first he won't take the premium if it is contrary to the laws of his union, but as time goes on and it piles up and amounts to a big item, he will be apt to step into the office and ask for his premium, and before long your man will be a thorough convert to the new system. Now, after one man has been persuaded, by means of the four functional foremen, etc., that he will earn more money under the new system than under the laws of the union, you can then take the next  man, and so convert one after another right through your shop, and as time goes on public opinion will swing around more and more rapidly your way.

I have a profound respect for the workmen of the United States; they are in the main sensible men--not all of them, of course, but they are just as sensible as are those on the side of the management There are some fools among them; so there are among the men who manage industrial plants. They are in many respects misguided men, and they require a great deal of information that they have not got. So do most managers.

All that most workmen need to make them do what is right is a series of proper object lessons. When they are convinced that a system is offered them which will yield them larger returns than the union provides for, they will promptly acquiesce. The necessary object lessons can best be given by centering the efforts of the management upon one spot. The mistake that ninety-nine men out of a hundred make is that they have attempted to influence a large body of men at once instead of taking one man at a time.

F.W. Taylor, Shop Management

Next Topic


Articles Respect for People by Christoph Roser




Updated 14.11.2021, 26.12.2022

Thursday, December 15, 2022

Part Process Chart Costing Sheet - Industrial Engineering Cost Measurement Sheet

 Industrial engineers are engaged in productivity improvement of resources used in production (or other engineering processes). They reduce resource consumption in various operations of the processes and thus reduce the cost. To help them in cost reduction, industrial engineers have to prepare process chart costing sheets. The sheets utilize job costing system in case of discrete production systems.

Job Costing System

In this system of costing, the cost object is an individual unit of product or service, part,  batch, or lot.  A classic example is an order based job made for a specific customer. Hence the name job costing.

Relevant Cost Concepts

Cost object
Direct cost of a cost object
Indirect cost of a cost object

Cost pool:  Cost pool is grouping of individual cost items. It can be very broad comprising of hundreds of cost items. Or it can be narrow having only two items

Cost-allocation base: Cost allocation bases are used to link an indirect cost pool to a cost object. Usually cost drivers are used as cost allocation bases. Horngren gave the example automobile operating cost of an organization. The cost driver is number of miles traveled. Number of miles traveled is used as a cost allocation base. Different jobs are charged for automobile cost on the basis of number of miles traveled by the persons of the organization in producing and delivering the job.

Relevant Costing Concepts

Actual Costing:  Actual costing is costing method that traces direct costs to a cost object by using actual direct-cost rate of cost item times the actual quantity of the direct-cost input (item) and allocates indirect costs based on the actual indirect-cost rate (rates in case multiple indirect cost pools are there) times the actual quantity of the cost-allocation base (appropriate base when multiple cost pools are used).

Normal Costing: In this method of costing, direct costs are traced to cost object in the same manner as in actual costing. But indirect costs are allocated on the basis of budgeted indirect-cost rate and the actual cost quantity of cost allocation base.

Source Documents in Job Costing

An accountant in financial accounting system makes entries on the basis of some source documents and journal and ledger are the main registers for accounting entries.

Similarly cost accounting is also based on source documents and records.  A key document or record or account in cost accounting is job cost record (or job cost sheet). It records and accumulates all the costs assigned to a specific job as resources were consumed in producing the goods and services specified in the job. Hence, the job cost record is started as soon as the work begins on a particular job.

Each entry in a job cost record is based on a source document.

Materials from the store are ordered by the manufacturing engineers using a materials requisition record. This form is the source document for charging job cost records and department for the cost of direct materials used on a specific job.

For recording direct labor related costs in job cost record, labor-time record is the source document.  Each employees of the organization can have a labor time record and the time that he spends on various jobs is recorded on a daily basis on this record.  The cost per hour of each employee is determined and accordingly labor cost is recorded in job cost records. 

The indirect cost items are given standing order numbers and standing order cost records are maintained for them. Based on materials requisition records and labor-time records costs are charged to standing order cost records.

Special attention needs to be paid to the accuracy of the source documents as the accuracy of job cost records depends on the reliability of inputs.

Seven Step Procedure of Job Costing

Step 1: Identify the chosen cost object. The specific jobs for which job cost is to be ascertained is to uniquely identified and a job cost record is to be opened for each job.

Step 2: Identify the direct costs of the job: The job number is to be mentioned in the material requisition record and labor-time records. From these source documents, the job cost records are to be posted or charged with direct costs.

Step 3: Select the cost allocation bases to use for allocating indirect costs to the job.

Step 4: Identify the indirect costs associated with each cost allocation base.

Step 5: Compute the rate per unit of each cost-allocation base.

Step 6: Compute the indirect costs allocated to the job.

Step 7: Compute the total cost of the job by adding all direct and indirect costs.

Journal and Ledger Entries in Cost Accounting

Like in financial accounting, in cost accounting also journal and ledger are maintained.
Job costing system has a separate job cost record for each job and entries are made in it for each cost item charged to it. A summary of the job cost record is posted in a subsidiary ledger. In the general ledger, Work-in-Process Control Account is there and it presents the totals of the separate job cost records pertaining to all unfinished jobs.

A general ledger account with control in their name or title signifies or indicates that they are supported by underlying subsidiary ledgers that have additional details. Materials Control Account and Accounts Payable Control Account are additional examples of control accounts. Material Control Account has a subsidiary ledger – Stores Ledger that has detail on each type of material stored and used in the company. Accounts Payable Control Account has a subsidiary ledger that has accounts of individual suppliers.

Horngren has given examples of transactions to illustrate the use of journal entries in cost accounting.

1. Purchases of materials on credit $89,000

Materials Control A/c Dr.   $89,000
 To Accounts Payable Control     $89,000
2. Materials issued to manufacturing departments: direct materials: $81,000, and indirect materials $4,000
Work-in Process Control A/c   Dr.   $81,000
Manufacturing Overhead Control A/c  Dr.         4,000
 To Materials Control      $85,000

3. Total manufacturing payroll or salaries and wages: Direct $39,000 and indirect, $15,000
Work-in Process Control A/c   Dr.   $39,000
Manufacturing Overhead Control A/c  Dr.       15,000
 To Materials Control      $54,000

Summary

The important points to be remembered from this chapter or topic are the method of arriving at job cost and method of arriving at indirect cost of a job. There are source documents and from these source documents job cost record is prepared and this record will show the cost of a job. Journal and ledger are kept and the ledger will show the value of inventory in the form of material, work-in process and finished goods.

Costing Process Charts


We can take the  process described in a process chart for a discrete industry product as the cost object and determine the final cost of the product and also provide the cost of various components that go into the product. We can do cost measurements for various elemental inputs that go into each part and into the assembly operations. Such measurements will guide process cost analysis to reduce the cost of the whole process by reducing the cost at element level, part level and operation level as feasible.

Process charts can be operation process charts of flow process charts. Operation process charts contain only material transformation operations and inspection operations. Hence the operation chart costing will show the cost spent for material transformation and inspection operations.

Flow process chart will also depict material transport cost between machines and departments, warehousing costs and cost of delays. Hence costing of flow process chart will provide the total cost of tranferring a finish item to the store for either despatch or for further internal processing.

References

Horngren, Charles T., George Foster, and Srikant Datar, Cost Accounting: Managerial Emphasis, Tenth Edition, Prentice Hall, Inc., Upper Saddle River, New Jersey, USA, 2000

Wednesday, December 14, 2022

Industrial Engineers - Report Tangible Productivity Improvements - Get Support from All in Your Organization

 

Industrial engineers have to learn from this exhortation to quality control professionals in 1951


Tangible Results. 


Since growth of the quality-control program will be directly dependent upon the results it produces, it is extremely important that adequate means for reporting these results be established. These reports are made by the quality-control staff man to top management and other key personnel on a periodic basis—perhaps monthly. The initial reports are made on the first individual projects, and the coverage of the report is expanded as the quality-control activities expand. Great care is exercised in the reports to point out that the quality-control results are due to the cooperative efforts of several functional groups and individuals rather than to the personal successes of the quality-control staff. The measuring sticks used may be drawn from a wide variety of elements, depending upon the plant situation. There may be reduction in complaint expenditures, reductions in manufacturing losses, improvements in design and in manufacturing processes, reductions in product costs, improvements in operator quality-mindedness, reductions in overruns.


Title

Quality control, principles, practice, and administration., .

(Page 415)

Author 

Feigenbaum, A. V. (Armand Vallin)Feigenbaum, A. V. (Armand Vallin)

Published 

New York,McGraw-Hill,1951.

Description 

443 p.illus., diagr., pl.

Rights 

Public Domain, Google-digitized.

Permanent URL 

https://hdl.handle.net/2027/wu.89052928892

2022 Machine Shop Engineering & Technology - Productivity Improvement & Cost Reduction News

 

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February 14, 2022















Thursday, December 1, 2022

DFMA - Design for Machining - Summary Notes

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Lesson 249 of IEKC Industrial Engineering ONLINE Course Notes.

Engineering in Industrial Engineering -  Machine work study or machine effort improvement, value engineering and design for manufacturing and assembly are major engineering based IE methods. All are available as existing methods.


Must have book for Industrial Engineers. Do you have it?

Product Design for Manufacture and Assembly (To Improve Productivity and Reduce Costs), 3rd Edition

Product Design for Manufacture and Assembly, Third Edition

Geoffrey Boothroyd, Peter Dewhurst, Winston A. Knight

CRC Press, 08-Dec-2010 - Technology & Engineering - 712 pages

https://books.google.co.in/books/about/Product_Design_for_Manufacture_and_Assem.html?id=W2FDCcVPBcAC 

Note: It is important to read the books by Boothroyd to understand the full method of DFMA. The DFMA method is to be combined with Value Analysis and Engineering to do product industrial engineering. In the note only attempt is made to make readers aware of issues raised and solutions proposed by DFMA method. 


7. Design for Machining 
7.1 Introduction 
7.2 Machining Using Single-Point Cutting Tools 
7.3 Machining Using Multipoint Tools 
7.4 Machining Using Abrasive Wheels 

7.5 Standardization 
7.6 Choice of Work Material 
7.7 Shape of Work Material 
7.8 Machining Basic Component Shapes 
7.9 Assembly of Components 
7.10 Accuracy and Surface Finish 
7.11 Summary of Design Guidelines 
7.12 Cost Estimating for Machined Components 


Fundamentals of Metal Machining and Machine Tools

Winston A. Knight, Geoffrey Boothroyd

CRC Press, 08-Aug-2019 - Technology & Engineering - 602 pages

In the more than 15 years since the second edition of Fundamentals of Machining and Machine Tools was published, the industry has seen many changes. Students must keep up with developments in analytical modeling of machining processes, modern cutting tool materials, and how these changes affect the economics of machining. With coverage reflecting s


STANDARDIZATION

The first rule in designing for machining is to design using standard components as much as possible. Many small components, such as nuts, washers, bolts, screws, seals, bearings, gears, and sprockets, are manufactured for standard specifications in large quantities and should be employed wherever possible. The cost of these components will be much less than the cost of similar, nonstandard components. The designers need catalogues of the standard items available provided by various suppliers. Supplier information is provided in standard trade indexes, where companies are listed under products. 

However, opportunities for creating economies by custom designs cannot be ignored. Many of the impressive successes brought about by the application of DFMA procedures were only made possible by breaking away from standardization. Taken to extremes, a slavish adherence to company "standards" will prevent innovation in design.

A second rule is to minimize the amount of machining by preshaping the workpiece. Workpieces can sometimes be preshaped by using castings or welded assemblies or by metal deformation processes, such as extrusion, deep drawing, blanking, or forging. Obviously, the justification for preforming of workpieces will depend on the required production quantity. But using castings is very popular. Other alternatives available are also to be kept in mind in designing parts.

Choice of Work  Material 

When choosing the material for a component, the designers must consider applicability, cost, availability, machinability, and the amount of machining required. The optimum choice will generally be a compromise between conflicting requirements.


SHAPE OF WORK MATERIAL

The choice of the shape of the work material (not custom made) depends mainly on availability in the market. Metals are generally sold in plate, sheet, bar, or tube form  in a wide range of standard sizes.The designer should check on the standard shapes and sizes from the supplier of raw material and then design components that require minimal machining.

Even if standard components or standard preformed workpieces are not available, the designer should attempt to standardize on the machined features to be incorporated in the design. Standardizing on machined features means that the appropriate tools, jigs, and fixtures will be available, which can reduce manufacturing costs considerably. Examples of standardized machined features might include drilled holes, screw threads, keyways, seatings for bearings, splines, etc. Information on standard features can be found in various reference books.

Some  undesirable features on rotational components. 

1. Features impossible to machine. 

2. Features extremely difficult to machine that require the use of special tools or fixtures. 

3. Features expensive to machine even though standard tools can be used.

In considering the features of a particular design it should be realized that 

1. Surfaces to be machined must be accessible when the workpiece is gripped in the work-holding device. 

2. When the surface of workpiece is being machined, the tool and tool-holding device must not interfere with the remaining surfaces on the workpiece.

Regarding Tolerances

As a guide to the difficulty of machining to within required tolerances it can be stated that 

Tolerances from 0.127 to 0.25mm (0.005 to 0.01 in.) are readily obtained.

Tolerances from 0.025 to 0.05mm (0.001 to 0.002 in.) are slightly more difficult to obtain and will increase production costs.

Tolerances 0.0127mm (0.0005 in.) or smaller require good equipment and skilled operators and add significantly to production costs.



SUMMARY OF DESIGN GUIDELINES

A summary of the main points a designer should keep in mind when considering the design of machined components.

Standardization

1. Utilize standard components as much as possible. 

2. Preshape the workpiece, if appropriate, by casting, forging, welding, etc.

3. Utilize standard pre-shaped workpieces, if possible. 

4. Employ standard machined features wherever possible.

Raw Materials

5. Choose raw materials that will result in minimum component cost (including cost of production and cost of raw material). 

6. Utilize raw materials in the standard forms supplied.

Component Design

a. General 

7. Try to design the component so that it can be machined on one machine tool only.

 8. Try to design the component so that machining is not needed on the unexposed surfaces of the workpiece when the component is gripped in the work-holding device.

9. Avoid machined features the company is not equipped to handle.

10. Design the component so that the workpiece, when gripped in the work-holding device, is sufficiently rigid to withstand the machining forces.

11. Verify that when features are to be machined, the tool, toolholder, work, and work-holding device will not interfere with one another.

12. Ensure that auxiliary holes or main bores are cylindrical and have L/D ratios that make it possible to machine them with standard drills or boring tools.

13. Ensure that auxiliary holes are parallel or normal to the workpiece axis or reference surface and related by a drilling pattern.

14. Ensure that the ends of blind holes are conical and that in a tapped blind hole the thread does not continue to the bottom of the hole.

15. Avoid bent holes or dogleg holes. b. Rotational Components

16. Try to ensure that cylindrical surfaces are concentric, and plane surfaces are normal to the component axis.

17. Try to ensure that the diameters of external features increase from the exposed face of the workpiece.

18. Try to ensure that the diameters of internal features decrease from the exposed face of the workpiece.

19. For internal corners on the component, specify radii equal to the radius of a standard rounded tool corner.

20. Avoid internal features for long components.

21. Avoid components with very large or very small L/D ratios.

 c. Nonrotational Components

22. Provide a base for work holding and reference.

23. If possible, ensure that the exposed surfaces of the component consist of a series of mutually perpendicular plane surfaces parallel to and normal to the base.

24. Ensure that internal corners normal to the base have a radius equal to a standard tool radius. Also ensure that for machined pockets, the internal corners normal to the base have as large a radius as possible.

25. If possible, restrict plane-surface machining (slots, grooves, etc.) to one surface of the component

26. Avoid cylindrical bores in long components.

27. Avoid machined surfaces on long components by using work material preformed to the cross section required.

28. Avoid extremely long or extremely thin components.

29. Ensure that in flat or cubic components, main bores are normal to the base and consist of cylindrical surfaces decreasing in diameter from the exposed face of the workpiece.

30. Avoid blind bores in large cubic components.

31. Avoid internal machined features in cubic boxlike components.

Assembly

32. Ensure that assembly is possible.

33. Ensure that each operating machined surface on a component has a corresponding machined surface on the mating component.

34. Ensure that internal corners do not interfere with a corresponding external corner on the mating component.

Accuracy and Surface Finish

35. Specify the widest tolerances and roughest surface that will give the required performance for operating surfaces.

36. Ensure that surfaces to be finish-ground are raised and never intersect to form internal corners.


Ud 19.12.2021

Pub 1 Dec 2021

Sunday, October 16, 2022

Supply Chain Industrial Engineering Module - Supply Chain Cost Reduction - Productivity & Quality Improvement - Bibliography


Lesson 171. Supply Chain Industrial Engineering - Bibliography

Supply Chain Operational Excellence


Supply Chain First Design - Adopting Evolving Technologies - Continuous Productivity Improvement - Capacity Adjustments -  Operations (Quantity) Planning - Operations Execution

Supply Chain Industrial Engineering


Supply Chain Industrial Engineering Focuses on adopting evolving technologies, continuous productivity improvement apart from contributing in first design of the supply chain to ensure high productivity in the first design itself.


Supply Chain Industrial Engineering -  Presentation Video
_______________

_______________

Large number of articles are available on supply chain cost reduction and productivity improvement. The subject of supply chain industrial engineering can be developed out of them. Subjects like manufacturing systems industrial engineering, product design industrial engineering, maintenance systems industrial engineering, information systems industrial engineering have to be developed by IE academicians to give clarity to the profession of industrial engineering. 

Adopting new technologies and improving productivity of those technologies is an important function that gives powerful scope to industrial engineers to contribute to the growth of companies and that of economies.

The collection of articles, books and papers will give you the idea of importance of the issue of cost reduction, productivity improvement and industrial engineering in supply chains. But the industrial engineering profession has not yet recognized this area as an important task of industrial engineers and they still talk in terms of supply chain management only and use books written for supply chain managers in the subject of industrial engineering curriculum. Industrial engineering profession has to develop a unique area for it in the supply chain management area.

Interesting Contribution from Schroeder

Operations Management in Supply Chain - Decision and Cases

SCHROEDER
Tata McGraw-Hill Education, 2013

Contents

5 Parts

Product Design
Process Design
Quality
Capacity and Scheduling
Inventory



Supply Chain Cost Reduction - Articles, Books and Papers



2022

Why organizations should transform their supply chain through cost reduction?
Global disruptions and growing pressure on operational and financial performance are forcing organizations to redesign their supply chain.
The role of supply chain is more strategic than ever and cost transformation becomes vital for companies to thrive.
There are 6 focus areas: Portfolio Simplification, Procurement, Supply Planning, Manufacturing Optimization, Operations Network Footprint and Target Operating Model.


How can today’s supply chain disruption cut costs and improve control?
Supply chain teams should examine their end-to-end value chains and identify levers to improve costs and controls – now, next and beyond
Digital enablers may require early outlay but offer significant gains in terms of cost, efficiency and control

16.10.2021

Search term: "supply chain" cost reduction

Cost Reduction Strategies in Supply Chain Management
Small Business
By Cathy Habas Updated August 21, 2020

Top 10 Tips to Reduce Your Supply Chain Costs
BY TOM K /  FRIDAY, 15 MARCH 2019

Tap Your Supply Chain For Cost Savings And Efficiency 2021/02/10 
10-Feb-2021 — Supply chain efficiency, such as warehousing and distribution, can reduce your overall expenses for your firm

 7 ways everyone can cut supply chain costs 

Reducing supply chain costs- supplier substitution, outsourcing, supplier refinancing and inventory changes.
https://www.gartner.com/en/supply-chain/insights/supply-chain-costs

To Evaluate Cost Savings in a Supply Chain : Two Examples 
by A Pettersson · 2013 
https://www.diva-portal.org/smash/get/diva2:977185/FULLTEXT01.pdf


01-Jul-2021 — The supply chain is becoming more strategic than ever before, with cost-cutting a priority amid growing financial pressure and volatility.
https://www.ey.com/en_ch/supply-chain/how-can-todays-supply-chain-disruption-cut-costs-and-improve-control

(PDF) Supply chain cost reduction using mitigation & resilience
https://www.researchgate.net/publication/318490396_Supply_chain_cost_reduction_using_mitigation_resilient_strategies_in_the_hypermarket_retail_business

Lean and mean: How does your supply chain shape up
by K Alicke  — As in warehouse operations, companies that focus on transportation cost drivers gain. They can control cost overruns or reduce current costs.

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/operations/pdfs/lean_and_mean-how_does_your_supply_chain_shape_up.pdf


Supply chain management as a competitive strategy for costs. POMS conf. paper. 
by H Pozo — for costs reduction: a case study in two small manufacturing companies
https://www.pomsmeetings.org/confpapers/043/043-0536.pdf

Research on supply chain cost reduction based on process - ieee.org 
Supply chain cost reduction becomes a new source of achieving competitive advantage. Although interests in reducing supply chain cost are growing.
http://ieeexplore.ieee.org/document/4738147/

Mini Case Studies: Supply Chain Cost Reduction and Management
Rob O'Byrne Feb 20, 2020
https://supplychainchannel.co/mini-case-studies-supply-chain-cost-reduction-and-management/

Cost Drivers in Supply Chain Management
By Daniel Stanton
https://www.dummies.com/business/management/cost-drivers-supply-chain-management/


Reducing Costs Through Collaborative Working in the Supply Chain.  - MDP
https://blog.som.cranfield.ac.uk/execdev/reducing-costs-through-collaborative-working-in-the-supply-chain

Identifying and prioritizing cost reduction solutions in the  supply chain.
by JH Dahooie · 2020 · — The present study aims to provide a coherent framework for utilizing a value engineering approach to supply chain cost management.
https://journals.vgtu.lt/index.php/TEDE/article/view/13534


Supply chain cost research: a bibliometric mapping perspective  (Paper downloaded)
Edgar Ramos , Steven Dien , Abel Gonzales , Melissa Chavez , Ben Hazen 
Benchmarking: An International Journal
Citation Ramos, E., Dien, S., Gonzales, A., Chavez, M. and Hazen, B. (2021), "Supply chain cost research: a bibliometric mapping perspective", Benchmarking: An International Journal, Vol. 28 No. 3, pp. 1083-1100. https://doi.org/10.1108/BIJ-02-2020-0079
https://www.emerald.com/insight/content/doi/10.1108/BIJ-02-2020-0079/full/html

Supply Chain Analytics for Cost Reduction - KPMG International
Understand undiscovered connections in supply chain to optimize cost. Supply chain analytics helps organizations gain a holistic view of the entire supply.
https://home.kpmg/tr/en/home/services/advisory/strategy/management-consulting/business-intelligence-data-analytics/data-analytics/supply-chain-analytics-for-cost-reduction.html

Cost Management in Supply Chains — Different Research 
by S Seuring · 2002 · Cited by 19 — Cost reduction is among the most cited objectives in supply chain management. 
https://link.springer.com/chapter/10.1007/978-3-662-11377-6_1


Inventory management and cost reduction of supply chain  (Paper downloaded)
by U Praveen · 2019 · Cited by 5 — Reducing waste, and therefore cost, within a supply chain can be a very challenging process due to the large number of variables involved.
https://www.sciencedirect.com/science/article/pii/S2351978920300354


SUPPLY CHAIN COST MANAGEMENT AND VALUE-BASED  
by M Christopher · 2005 · Cited by 272 — Whilst some of this price deflation can be explained as the result of normal cost reduction through learning and experience effects (1), the rapid fall in
https://core.ac.uk/download/pdf/138414.pdf

How to Reduce Costs through Supply Chain ... - IndustryWeek 
08-Jul-2013 — Supply chain network design is a powerful modeling approach proven to deliver significant reduction in supply chain costs and improvements.
https://www.industryweek.com/supply-chain/planning-forecasting/article/21960681/how-to-reduce-costs-through-supply-chain-network-optimization

Evaluating cost-reduction alternatives and low-cost sourcing opportunities for aerospace castings and forgings
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Materials Science and Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2008.
https://dspace.mit.edu/handle/1721.1/44381

Best practices for managing cost in the healthcare supply chain 
by JP Dittmann · Cited by 3 — This part is designed to help you take the next step and identify specific cost reduction projects in your firm.
https://www.ups.com/media/en/managing-costs-part-2.pdf


Supply chain costs and customer satisfaction - PwC 
This also represents one of the greatest opportunities for both cost saving and faster, more reliable delivery to customers.
https://www.pwc.com/us/en/industries/private-company-services/business-perspectives/supply-chain-costs.html


E-Commerce Enterprise Supply Chain Cost Control 
by H Mao — ... products products to reduce supply chain costs. The research in this study has achieved a breakthrough in the cost management
https://www.hindawi.com/journals/complexity/2021/6653213/


Reinventing the CPG Supply Chain with Zero-Based Budgeting   bcg.com 
15-Nov-2019 — CPG companies have traditionally sought to reduce supply chain costs by 2% to 5% a year. Incremental reductions are no longer sufficient
https://www.bcg.com/publications/2019/reinventing-consumer-packaged-goods-supply-chain-with-zero-based-budgeting

Optimizing the retail bank supply chain - Deloitte 
In fact, the worldwide cost of handling cash already exceeds $300 billion per year. To reduce these costs and improve efficiency, retail banks need new methods.
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Financial-Services/gx-fsi-ca-optimizing-the-retail-bank-supply-chain-2013-10.pdf

10 tips for reducing supply chain logistics costs    mhlnews.com  
09-Aug-2005 — 10 tips for reducing supply chain logistics costs · 1. Understand the true costs of sourcing overseas. · 2. Focus on eliminating the variability. 
https://www.mhlnews.com/transportation-distribution/article/22051660/10-tips-for-reducing-supply-chain-logistics-costs

Cost Reduction Measures
May 5, 2004  |  SCRC SME
According to a study by the Center for Applied Purchasing Studies (CAPS) Research, the primary goal of most purchasing executives is to reduce total costs (1). Supply managers in general are under an increasing amount of pressure to assure the accuracy and validity of their cost reduction measures. Their goals are often directly linked to promotions and bonuses as an incentive help their purchasing department reach its goals. As such, cost reduction measures must be able to withstand rigorous questioning from top management (2).
(1) Hendrick, T. and Ogden, J. (2002). Purchasing and Supply Managers’ 2001 Compensation Benchmarking and Demographics CAPS Research Focus Study. CAPS Research.
(2) Smeltzer, L. and Manhsip, J. (July, 2003). How good are your cost reduction measures? Supply Chain Management Review.
https://scm.ncsu.edu/scm-articles/article/cost-reduction-measures

Our Quick Notes On Supply Chain Cost Reduction

Vivek Sood
Global Supply Chain Group, 18-Nov-2020 - Business & Economics - 22 pages

Part of our new "Quick Notes" series - this report answers your most pertinent questions of the topic.
Included are quick notes and some of the frequently asked questions (FAQs) on supply chain cost reduction that we have encountered in our workshops, seminars, and other forums.
https://books.google.co.in/books?id=-G8JEAAAQBAJ

Supply Chain Cost Control Using Activity-Based Management
Matthew Zander
CRC Press, 19-Jul-2006 - Business & Economics - 224 pages

Having an accurate assessment of company expenditures is a key to staying in business. Activity-based management (ABM) is the only system that offers the tools to correctly assess the outflow involved in a tightly knit supply chain and enables understanding not only of the total cost of ownership (TCO), but also how these costs should be allocated.
https://books.google.co.in/books?id=cdvLBQAAQBAJ


Measuring the Value of the Supply Chain: Linking Financial Performance and Supply Chain Decisions
Enrico Camerinelli
Gower Publishing, Ltd., 2009 - Business & Economics - 218 pages

In a company ecosystem the supply chain manager is tasked with duties and objectives primarily aimed at controlling and reducing costs, while optimizing the material flows. Yet, in many organizations, common perception limits supply chain management to product logistics, materials handling and warehouse management. The supply chain manager must learn how to communicate the results of his work to show the importance and impact supply chain management operations have on a company. In this book, Enrico Camerinelli provides the supply chain manager and the chief financial officer with the means to link the value of the supply chain to an organization's bottom line. He explores the problem with current supply chain metrics, shows how to close the gap between financial decisions and supply chain performance, suggests a model to provide a lingua franca for supply chain, financial and other managers throughout the company and points to ways in which new technology can help measure the value of the supply chain. Using case studies and interviews with supply chain and financial experts, Measuring the Value of the Supply Chain will help financial and supply chain managers achieve strategic advantage through effective supply chain management.
https://books.google.co.in/books?id=d_LhBol2674C






7.4.2018

HOW TO COLLABORATE WITH SUPPLIERS TO REDUCE PRODUCT COSTS
Abe Chaves January 21, 2016
https://www.apriori.com/blog/how-to-collaborate-with-suppliers-to-reduce-product-costs/

Cost reduction tips for your strategic sourcing contracts
https://searchcio.techtarget.com/tip/Cost-reduction-tips-for-your-strategic-sourcing-contracts

Manage your suppliers
Reducing supplier costs - McMillan-Scott
https://www.nibusinessinfo.co.uk/content/reducing-supplier-costs-mcmillan-scott

Cost Reduction Strategies in Supply Chain Management
by Kevin Johnston
http://smallbusiness.chron.com/cost-reduction-strategies-supply-chain-management-69509.html

Reducing operating costs through procurement transformation and strategic sourcing
http://www.genpact.com/insight/case-study/reducing-operating-costs-through-procurement-transformation-and-strategic-sourcing

Article February 2013
The power of successful supplier collaboration
By Jehanzeb Noor, Aurobind Satpathy, Jeff Shulman, and Jan Wüllenweber
https://www.mckinsey.com/practice-clients/operations/the-power-of-successful-supplier-collaboration

Three Major Areas for Supplier Cost Reduction and Management
Posted on April 10, 2013 by Floyd Talbot
http://costmgmt.org/supplier-cost-reduction-part-1/

The 100 biggest U.S. manufacturers spent 48 cents out of every dollar of sales in 2002 to buy materials, compared with 43 cents in 1996, according to Purchasing magazine’s estimates. Businesses are increasingly relying on their suppliers to reduce costs, improve quality, and develop new processes and products faster than their rivals’ vendors can.

The Japanese supplier-partnering model is alive, well, and flourishing—not just in Japan but also in North America.

Building Deep Supplier Relationships
Jeffrey LikerThomas Y. Choi
HBR THE DECEMBER 2004 ISSUE


Purchasing and Supply Chain Management
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Cengage Learning, 17-Mar-2015 - Business & Economics - 888 pages

Providing a solid managerial perspective, PURCHASING AND SUPPLY CHAIN MANAGEMENT, 6e draws from the authors' firsthand experiences and relationships with executives and practitioners worldwide to present the most current and complete coverage of today's supply management process. The text includes critical developments from the field, such as cases from emerging healthcare and service industries, procure-to-pay redesign, supply risk, innovation, sustainability, collaboration, and much more. Students examine key changes in supply management and the impact of the global economy and ongoing business uncertainty on continuous cost and value management across the supply chain. Numerous real-world cases and captivating examples help students gain contextual insights and knowledge into the strategies, processes, and practices of supply management--giving these future managers a thorough understanding of the impact that purchasing and supply chain management have on the competitive success and profitability of today's organizations.
Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.
https://books.google.co.in/books?id=cAJoBwAAQBAJ

strategy+business: Corporate Strategies and News Articles on Global Business, Management, Competition and Marketing
January 1, 1997 / First Quarter 1997 / Issue 6 (originally published by Booz & Company)
Setting Supplier Cost Targets: Getting Beyond the Basics
https://www.strategy-business.com/article/8996?gko=1f952

Oil companies scrutinizing suppliers to cut costs
BY KATRINE GRØNVALD RAUN
Published  13.04.15
https://shippingwatch.com/Offshore/article7620498.ece

Surviving Supply Chain Integration: Strategies for Small Manufacturers

Committee on Supply Chain Integration - Board on Manufacturing and Engineering Design,
Commission on Engineering and Technical Systems, National Research Council, NATIONAL ACADEMY PRESS, Washington, D.C.
https://www.nap.edu/read/6369/chapter/1

5 ways to improve suppliers value and performance
Monday, December 1, 2014 , business management, by Rich Rafdahl
http://costreductionspecialistssite.com/5-ways-to-improve-your-suppliers-performance-and-value/


Supply Chain Productivity Improvement




Productivity, Efficiency and Global Effectiveness
By Lora cecereFebruary 1, 2017
Supply chain productivity

In this episode of Straight Talk with Supply Chain insights, Lora and Helen discuss the halt of the Third Industrial Revolution and how innovating processes along with technology will drive the effectiveness of value networks as related to the Supply Chain Shaman blog post: Late Night Thoughts on Productivity, Efficiency, and Global Supply Chain Effectiveness.

Straight Talk With Supply Chain Insights – Podcast episode #206
http://supplychaininsights.com/podcast/productivity-efficiency-and-global-effectiveness/



The 3 Pillars of Supply Chain Productivity
https://www.youtube.com/watch?v=WbyAHGWmYeM

Supply chain interface problems affecting productivity
Article (PDF Available)  in International Journal of Logistics Systems and Management 18(4):pp. 415-435 · July 2014
https://www.researchgate.net/publication/263738754_Supply_chain_interface_problems_affecting_productivity

Supply Chain Management and Productivity Improvement Cluster
Introduction
The Supply Chain Management and Productivity Improvement (SCMPI) Cluster develops emerging technologies and capabilities in crucial areas of global logistics network operations.
https://www.rp.edu.sg/industry/working-with-us/technology-clusters/supply-chain-management-and-productivity-improvement-cluster

The Impact of Supply Chains on Firm-Level Productivity
Juan Camilo Serpa, Desautels Faculty of Management, McGill University, Montreal, Quebec H3A 1G5, Canada
Harish Krishnan, Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada
https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2016.2632

The Drive To Improve Supply Chain Productivity And Efficiency
Supply Chain Transparency: How Food Makers Help Empower Consumers
By Andy Marsh, President and CEO, Plug Power
https://www.retailoperationsinsights.com/doc/the-drive-to-improve-supply-chain-productivity-and-efficiency-0001

Logistics ‐ a productivity and performance perspective
Author(s):
Alan Stainer (Head of Engineering Management, Middlesex University, London, UK)
Abstract:
Provides a critique of the present state of the art of productivity and performance measurement and management in logistics. The nature of logistics makes normal measures of productivity, based on an output/input concept, not always appropriate. Indicator or proxy approaches can be more suitable and would relate the quality of the system to total cost, complementing conventional total productivity thinking.
https://www.emeraldinsight.com/doi/abs/10.1108/13598549710166104


Calculating the True Cost of Productivity
Labor is frequently the dominant cost of a facility, no matter where it is located within the U.S.
August 3, 2017
This white paper demonstrates two calculations that contribute to calculating the true cost of productivity—labor costs and throughput—and details the potential costs of worker liability insurance and downtime. It also shows how an investment in dynamic storage and retrieval systems can impact productivity in three areas: reduced labor costs, improved throughput and decreased liability.
http://www.scmr.com/article/calculating_the_true_cost_of_productivity

5 ways to boost productivity in your Supply Chain
ByMarc Wins
November 3, 2016
http://www.supplychain-academy.net/5-ways-to-boost-productivity-in-your-supply-chain/

How to Maximize Supply Chain Productivity and Management of Freight Costs
by Joseph DeBenedetti
Supply chain efficiency has the power to make or break a business, with fine-tuned systems translating into a competitive advantage in the marketplace.
http://smallbusiness.chron.com/maximize-supply-chain-productivity-management-freight-costs-77688.html

The Deceptive Simplicity of Boosting Productivity in Supply Chains
May 6, 2016 | Articles, Supply Chain | 0 comments

Productivity is a deceptively simple concept. For a supply chain, as for other functions, productivity is the ratio of what you get out to what you put in. This “output versus input” definition covers achievements of the workforce, results from the use of equipment, time spent (as in the hours needed to manufacture a product) and return on capital. However, output must also be valuable, generating value in its own right or helping an organization to achieve a valid objective.
https://www.logisticsbureau.com/the-deceptive-simplicity-of-boosting-productivity-in-supply-chains/

5 STEPS TO INCREASE YOUR SUPPLY CHAIN PRODUCTIVITY
http://www.balloonone.com/5-steps-increase-supply-chain-productivity/

Interesting Article - HBS
Achieving Supply Chain Productivity


3/7/2005
Forget traditional supply chain management. Managers must be responsible for the earning power and productivity of the assets in their trust, not just cost control, argues Jonathan Byrnes.
https://hbswk.hbs.edu/archive/achieving-supply-chain-productivity

Who Knew Increasing Supply Chain Productivity Was This Easy?
03/08/2016 - 12:09pm
https://www.mbtmag.com/article/2016/03/who-knew-increasing-supply-chain-productivity-was-easy

Tips for Navigating Productivity-inhibiting MRO Supply Chain Silos
By George E. Krauter
November 09, 2017 at 10:24 AM
http://www.mypurchasingcenter.com/purchasing/blogs/tips-navigating-productivity-inhibiting-mro-supply-chain-silos/

Enhance productivity using supply chain management in automobile industry
Author:  Neeraj Kumar Sharma
Subject Area:  Physical Sciences and Engineering
http://www.journalcra.com/article/enhance-productivity-using-supply-chain-management-automobile-industry

The impact of RFID technology utilisation on supply chain productivity and organisational performance
Kenneth W. Green Jr. Related information1 College of Business Administration, Department of Management and Marketing, Sam Houston State University, Box 2056, Huntsville, TX 77341?2056, USA.
, Dwayne Whitten Related information2 Mays School of Business, Information and Operations Management Department, Texas A&M University, Mail-stop 4217, College Station, TX 77843, USA.
, R. Anthony Inman Related information
https://www.inderscienceonline.com/doi/abs/10.1504/IJIL.2009.02281

MH&L Staff | Apr 11, 2017
Big-data analytics and other technologies are dramatically improving productivity in the global supply chain, according to a recent survey by Clear Peak Supply Chain Advisory Council.

http://www.mhlnews.com/global-supply-chain/data-driven-culture-creates-advantages-global-supply-chain

Logistics Productivity Indicator – Assessing Supply Chain Performance
08/11/2017, 3:05 pm
http://supplychainasia.org/logistics-productivity-indicator-assessing-supply-chain-performance/

Cost Management in Supply Chains pp 213-232 | Cite as

Improving Supply Chain Productivity Through Horizontal Cooperation — the Case of Consumer Goods Manufacturers
https://link.springer.com/chapter/10.1007/978-3-662-11377-6_13

Supply Chain Commentary: Boost Productivity, Efficiency, and Security in Your Warehouse
2
April 03, 2018 | Isaac Kohen
http://www.inboundlogistics.com/cms/article/boost-efficiency-productivity-and-security-in-your-warehouse/

Case Study Search
Welcome to Supply Chain Database
Search through the case studies by using the filters below according to category, the organisation leading the initiative, supply chain sectors targets and linkages to any programs or partnerhsips. You can also scroll down to see the entire collection of supply chain case studies.Start browsing the database to find out how large corporates such as General Electric, BASF, or IKEA are partnering with their suppliers to improve energy productivity.

Search through the case studies by using the filters below according to category (i.e. activity type, such as audits or purchasing approaches), the organisation leading the initiative, supply chain sectors targets and linkages to any programs or partnerships (e.g. the Value Chain Scope 3 standard). You can also scroll down to see the entire collection of supply chain case studies.

Activity types
http://www.iipnetwork.org/databases/supply-chain

HFC Technology
Guest Column | November 22, 2017
The Drive To Improve Supply Chain Productivity And Efficiency
Supply Chain Transparency: How Food Makers Help Empower Consumers
By Andy Marsh, President and CEO, Plug Power
https://www.retailsupplychaininsights.com/doc/the-drive-to-improve-supply-chain-productivity-and-efficiency-0001

TOP 10 QUESTIONS TO ASK OF YOUR SUPPLY CHAIN PRODUCTIVITY
https://gilmourindustrial.com/best-practises/top-10-questions-to-ask-of-your-supply-chain-productivity/

Best practices to improve Supply Chain productivity
ByMarc Wins
April 5, 2018
http://www.procurement-academy.com/best-practices-to-improve-supply-chain-productivity/




Year Wise Articles and Papers



2016
Increasing Productivity Through Your Supply Chain
http://www.columbusglobal.com/nn-NO/Retail/Supply-Chain-Solutions/Fra-virkeligheten/~/media/9F67956F34EE42F9B0973380438A18E4.pdf

Boosting Innovation and Productivity through Supply Chain Management in Highway Construction
http://www.cpf16.co.uk/wp-content/uploads/2016/06/DAVID-ONEIL.pdf



2013

LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today's VUCA World


Josef Packowski
CRC Press, 26-Nov-2013 - Business & Economics - 493 pages

Delivering excellent service to all customers is the key imperative for many sustainable businesses. So why do so many supply chains struggle to fulfill customer requirements at competitive costs? The answer is simple: traditional supply chain planning, which was tailored to a predominantly stable and predictable business environment, cannot handle the new challenges in the world of variability, uncertainty, complexity, and ambiguity—the VUCA world.

Companies can either accept the drawbacks that often result in high inventories, poor asset utilization, and unsatisfactory customer service or, they can change their view of the fundamental approach to supply chain management. LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today’s VUCA World introduces a new paradigm and a new approach to managing variability, uncertainty, and complexity in today’s planning processes and systems.

Introducing a cutting-edge supply chain management concept that addresses current problems in the process industry's supply chains, the book presents powerful methods developed by leading research institutes, process industry champions, and supply chain experts. It explains how readers can change their approach to the fundamental planning paradigms in a manner that will help their organizations achieve higher levels of responsiveness, improved levels of customer service, and substantial increases in cost-efficiencies.

This holistic practitioner’s guide describes how to establish the right accountabilities for performance management and also provides a set of meaningful metrics to help measure your progress. Supplying detailed guidelines for transforming your supply chain, it includes first-hand reports of leading organizations that have already adopted some of the facets of this paradigm and used the relevant instruments to achieve unprecedented improvements to customer service, supply chain agility, and overall equipment effectiveness.
https://books.google.co.in/books?id=PXDOBQAAQBAJ



5 Ways to Increase Productivity and Performance in Your Supply Chain


Focusing on tactics that will increase a supply chain’s productivity is essential to earn adequate profits through achieving positive customer satisfaction. Apart from improving products and processes, there are some other very effective ways to do this.


Efficient Communication: Communicate with your supply chain partners  in a clear and concise manner that defines supply chain goals and the methods to achieve those goals. This communication is crucial to a supply chain’s operations and productivity. By scheduling meetings devoted to collaborative problem-solving, management is able to make essential changes regarding performance. This diligent problem-solving ensures a unified understanding of productivity and operations that will facilitate open communication between supply chain partners.


Development of Procedure Standards: The development of procedure standards reduces error within the supply chain and saves both time and money. Focus on the reduction of probable variation in areas such as receiving, quality control, shipping, shift scheduling, and facilities management. This is one of the many ways to increase collective productivity and establish procedure standards.

Determination of Importance: Continuous improvement to supply chain productivity depends on the areas where attention is given.  Measuring outcomes in critical areas that drive business, for example: Safety, Service/On-Time Delivery, Inventory Accuracy/Turns, Productivity, Cost per Unit/Total Landed Cost, Product Damage/Claims, Customer Satisfaction

Engage, Align, and Empower Workforce: Encourage supply chain partners to focus on the core skills of employees and empower them. This focus will foster confidence and result in a continuous increase of productivity. Gaining the buyin of workforce makes it possible to create new ways to engage and align, to ultimately increase productivity. Be sure to define supply chain’s goals in a clear and concise method that will allow employees and management of supply chain partners to take advantage of existing and future opportunities for improvement.

Construct a Powerful Training Program: First, formulate a comprehensive plan to increase productivity, reduce costs, and improve customer service and satisfaction levels. Then tie an incentive plan into the supply chain’s core mission, a critical element to building a performance-based approach. Train supply chain partners and their employees in implementing the new plan.  This constructive training will drive a successful organization and improve supply chain productivity.


Increasing productivity within the supply chain is achieved through a top down approach – everything rises and falls on the supply chain leader. Leaders must practice effective communication, create procedure standards, determine a hierarchy of importance, encourage empowerment of  the workforce of supply chain partners, and arrange powerful training programs. Management and employees of the supply chain leader have to first create and establish a performance-based culture within their company and then in its supply chain partner companies.
Adapted from https://legacyscs.com/5-ways-increase-productivity-performance-supply-chain-2/

2011


Labor management systems: Labor is a significant expense item in warehousing costs. A robust warehouse labor management system (LMS) can help you understand this expense. An LMS lets you  examine tasks such as receiving, put-away and processing at the individual level. You can evaluate performance elements more closely, isolate problem areas and make better decisions about training, staffing and management. It also enhances accountability for all employees, which often brings out their best performance.


Picking devices and technologies: Sometimes, the best order-picking alternative is an employee’s hands. At other times, a device that picks a whole layer of cases at a time could be economical  and much faster,  Some of these machines can double or triple picking volumes for the same time.  Hands-free voice picking devices are another fiscally friendly upgrade.

Cut down lighting costs: Warehouse energy bills can exceed $100,000 annually.  Today’s energy-efficient  lighting technologies offer brighter, greener and less expensive electricity alternatives.


A relighting project may demand upfront investment,  but provide saving up to 50 percent as soon as new lights are installed. These projects also could earn tax breaks or incentives from local governments and utilities. They also could reduce the expense of any carbon offset purchases your company plans to make.

Interleaving: In the average warehouse, forklift operators move between a couple of points such as a loading dock and storage racks. On the initial trip, these vehicles usually are full — and fully utilized. But they’re empty while returning, a process known as deadheading. Deadhead journeys can add up to countless empty miles and wasted operator time.

Interleaving rearranges workflow so forklift operators travel in a circular motion or some other route configuration, better using the traveling time between racks and loading docks. Interleaving designs vary significantly from facility to facility. And since most all facilities use forklifts, this growing practice deserves a closer look. Granted, it requires robust systems capacity and cooperative operators who will embrace the change. However, the ultimate payoff can be significant

There are some  more money-saving warehousing investments such as thermal-shrinking machines, financial gainsharing incentives and space utilization tools.

Adopted from

Supply Chain by Rajiv Saxena
Industrial Engineer's quarterly column about supply chain and logistics solutions (July 2011)


Ken Ackerman's Warehousing Fourm
http://www.warehousingforum.com/TheTopShelf/index.html

Supply Chain Industrial Engineering -  Presentation Video
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Updated 16.10.2022,   16.10. 2021,  8 April 2018,  12 August 2016, 8 April 2013