Thursday, August 21, 2025

Process Improvement Management - Process Productivity Management - 3.6% Cost Reduction per Year

This is to highlight and inform you the important event for industrial engineers and productivity managers. 2025 India National Productivity Week - 12 - 18 February  Theme - From Ideas to Impact: Protecting Intellectual Property for Competitive Startups.

The theme for Productivity Week 2025 provides a crucial platform to address the interconnected challenges and opportunities related to innovation, intellectual property (IP), and productivity within the Indian startup ecosystem.

For industrial engineers innovation and productivity are important themes to focus on. IEs have to organize events, participate in the event actively and promote industrial engineering as the department, function and discipline to promote productivity through innovation.

I am collecting background material to support industrial engineers in preparing for the events of the week.


Background Material - 2025 India National Productivity Week Theme - From Ideas to Impact: Protecting Intellectual Property for Competitive Startups.

https://nraoiekc.blogspot.com/2025/01/background-material-2025-india-national.html


Please share ppts etc. of the events organized in your company after the event. Thank you.


-----------------------------


What are the processes under your productivity management?

Have? you prepared process charts for them?

Have you made IE measurements for them?

What is the total cost of the process for unit time period?

What is the cost of unit?

What is productivity for each resource?

Do you have time measures for each element?


Value Creation Target for IE Department.

The IE department's expenditure per month is $60,000 ((1 MSIE + 5 BSIEs + Staff)). They have to find savings of $300,000 per month. $3,600,000 per year on $100,000,000 cost of production per year.

3.6% of the process production cost per year.


Breakup of Productivity Benefit  - Sharing Scheme


Savings of $300,000 per month


Benefit break up:


IE department staff: $60,000

Investment in projects: $60,000  If this is taken as interest paid on capital investment can be in multiples of this amount.

Increase in benefits to other employees:$60,000

Benefit to customers: $60,000

Increase in profits of the company: $60,000

https://nraoiekc.blogspot.com/2020/03/value-creation-model-for-industrial.html 


Process productivity improvement and management is an important task in the operational excellence/process excellence programs/missions being launched by many companies.


Steps in Process Productivity Management

Prepare complete set of process charts and documentation.

Go through them and make notes including ideas for improvement.

Circulate process chart documentation to relevant persons and seek their suggestions.

Convene a meeting or number of meetings to display and explain and discuss process chart documentation to do brainstorming to generate ideas.

Create a team to evaluate all suggestions. Select the valuable ideas.

Develop the ideas and evaluate for technical feasibility.

Develop the ideas further and do economic feasibility. Is there RoI?

Design the solution at various levels - element - operation - process and test them.

Implement the successful solution in the process. Modify the process specification with a process change note.

Check the process after modification and adjust the process as needed.

Measure productivity and cost reduction after each quarter for at least an year as a special task.




Modern Industrial Engineering - A Book of Online Readings. PDF File. FREE Download. 

Download the Index to 500 Best Industrial Engineering ONLINE articles and essays arranged module wise. A Comprenhensive coverage of modern industrial engineering.

https://www.academia.edu/126612353/Modern_Industrial_Engineering_A_Book_of_Online_Readings


Modern Industrial Engineering - A Book of Online Readings - Online Page.

https://nraoiekc.blogspot.com/2024/12/modern-industrial-engineering-book-of.html


A Model

Open Access Paper

Industrial Process Management Model to Improve Productivity and Reduce Waste

by César Ortiz,Luis Quezada and Astrid Oddershede

Department of Industrial Engineering, University de Santiago de Chile, Víctor Jara Avenue 3769, Santiago 9170124, Chile

Sustainability 2024, 16(4), 1606; https://doi.org/10.3390/su16041606


Identify elements (products, equipment, people, facilities, services, software, etc.), variables (qualitative and quantitative), situations, and scenarios to be analyzed.

Establish  with management, based on the information obtained in the audit and historical statistics, defining the scope, objectives, goals, deadlines, resources, technology, and restrictions of the productivity improvement project,.

The technology must be selected considering management requirements in terms of budget, information security, access, and features for efficient communication. This definition must be agreed upon with management.

Based on the statistical information, the organization chart, the information generated by the audit, and the researcher’s criteria in action, the groups must be defined. In our case, the model pre-establishes the quality, maintenance, and supervision groups, but they can establish groups such as human resources, logistics, purchasing, sales, etc. depending on the specific case.

Before deciding who will participate in the groups, it is important to carry out an evaluation of the human resource that helps us determine if it has any incompatibility with the project. After this, a meeting must be held with the operations management to define who will participate in the groups.

The objectives, goals, and deadlines for the implementation of the productivity improvement project must be transmitted to the staff, improving coordination with a communication tool in the processes. Communication norms must be established and taught to participants, establishing schedules, type of information to be transmitted, language to be used, confidentiality rules, etc.

The objectives of the productivity improvement action plan must be reviewed. In these meetings, the statistics of the previous cycle or period will be presented, the progress made regarding the goals. and the individual situations of each group will be analyzed where they will be shared with the participants of other groups to increase their level of group situational awareness.



Management of the Process Productivity

https://www.ispatguru.com/management-of-the-process-productivity/


Process Improvement and Organizational Learning: The Role of Collaboration Technologies


Ned F. Kock

Idea Group Inc (IGI), 01-Jan-1999 -  157 pages


Process improvement can itself be considerably improved by the use of information technology. Distributed and a synchronous group support systems, such as e-mail, computer conferencing and the World Wide Web are likely to play a major role in this improvement. Process Improvement and Organizational Learning: The Role of Collaboration Technologies analyzes the relationship between collaborative technologies, process improvement and organizational learning. It is based on the author's experiences in numerous process-focused organizational development projects where process improvement groups were aided by the support of collaborative technologies.








Full Access article
Machine Learning in Manufacturing and Industry 4.0 applications
Using process mining to improve productivity in make-to-stock manufacturing
Rafael Lorenz, Julian Senoner, Wilfried Sihn &Torbjørn Netland
Pages 4869-4880 | Received 15 May 2020, Accepted 10 Mar 2021, Published online: 13 Apr 2021



Process mining is a recent development in information systems research that models process flows based on event log data (van der Aalst 2016). In contrast to manual process mapping, process mining allows analysing process flows dynamically and identifying non-value-adding activities in an automated manner (Schuh et al. 2020b). For this reason, process mining is particularly suitable for discovering process deviations and identifying factors that negatively affect productivity. Despite the promising opportunities process mining offers, there is scarce research addressing productivity improvement in manufacturing. This paper addresses this gap in the literature by proposing and validating a procedure for using process mining in make-to-stock manufacturing.


Engineering > Vol.3 No.11, November 2011
Productivity Improvement Model without Increasing Operation’s Risk and Fatigue
Adel Al-Shayea, Khalid Al-Saleh, Khalid Al-Yami, Abdulaziz El-Tamimi



Paper • The following article isOpen access
Methods and techniques for evaluating the productivity of production processes in the automotive industry
A Kowalski, S Królikowski and P Szafer

Published under licence by IOP Publishing Ltd
IOP Conference Series: Materials Science and Engineering, Volume 400, Issue 6
Citation A Kowalski et al 2018 IOP Conf. Ser.: Mater. Sci. Eng. 400 062017
DOI 10.1088/1757-899X/400/6/062017



Ud. 21.1.2025
Pub. 16.1.2025







No comments:

Post a Comment