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Lean measurement system

Lean Measurement System Apparel

Handover to sourcing deadline 01.06.09 version 1.2

GASA
*Continuous Productivity Improvement

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Apparel

Tier 1/Tier 2

*Lean Terminology and Measurement System

Contents 1. 2. 3. 4. 5. Definition KPI Purpose of measurement Calculation method Collection method Templates

Deliverable/ KPIs’ agreed

A.WIP B. MLT C. RFT D.SMV ( only Tier 1 )

*Lean Terminology and Measurement System KPI - A: WIP
1.Definition:
WIP = actual Work In Progress Inventory level in the value stream Cut 2 Box/Yarn 2 Pack SWIP = Standard Work In Progress Inventory level in each process/cell/ department throughout the value stream Cut 2 Box/Yarn 2 Pack

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2. Purpose of measurement
Measuring WIP-to SWIP will monitor the successful implementation of a Pull Production System. If actual WIP from Cut 2 Box/Yarn 2 Fabric Pack is always equal to the SWIP for the Cut 2 Box/Yarn 2 Fabric pack, it indicates that pull principles are applied correctly. If WIP goes higher or lower than SWIP pull system is failing.

3. Calculation Method
3.1. WIP WIP = Opening Balance + Input - Output

3.2 . WIP-to-SWIP Ratio ( WSR ) WSR = Total WIP Inventory Cut 2 Box /Yarn 2 Pack SWIP Inventory Cut 2 Box/Yarn 2 Pack The ideal result is a ratio of 1 (WIP is equal to the SWIP).

< 1 shows that it is too much inventory > 1 shows too little inventory

*Lean Terminology and Measurement System KPI - A: WIP
4. Collection Method
WIP/SWIP is collected by counting the number of kanbans Cut 2 Box/Yarn 2 Fabric Pack. A kanban contains the number of units that are to be manufactured at any one time. Kanbans may be in the form of containers, carts, squares painted either on benches or on the floor or physical cards denoting the items. A kanban always has a fixed quantity associated with it. It may have 10 pieces in a standard container, a single piece in a kanban square, or a certain amount contained on a

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shelf, trolley or cart. It is not necessary to count all individual parts, just the kanbans as they represent the part and the standard quantity of that part. If kanbans are not in use then the number of units (Pieces/Lots) must be counted. If the Cell/Dept contains a very large number of items, for the assembly of a complex product, it may be impossible to count all the parts. In this case, the major part (or family of parts) should be selected to represent the quantity of products flowing through the Cell/Dept.

5. Template ( please see separate xls. form )

*Lean Terminology and Measurement System KPI – B: MLT
1.Definition:
MLT is the actual Manufacturing Lead Time that it takes for a product to pass through all the production processes from when the raw material is issued to Cutting/Yarn issued 2 Scan & Pack/Fabric Inspect & Pack.

2. Purpose of measurement
The MLT is measured because it directly relates to the Value Added Ratio of the production process from Cut 2 Box/Yarn 2 Fabric Pack. The higher the value added ratio the more efficient the process. More efficient = less “waste” in the process

The speed of the flow of work throughout the production processes will have a direct influence on the ability to quickly identify and correct quality issues, resulting in less Non Value Added time being spent on re-work and re-cuts to get higher productivity.

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*Lean Terminology and Measurement System KPI – B: MLT
3. Calculation method 3.1 MLT
The MLT is calculated by dividing the total daily WIP by the daily factory End of Line Rate. The factory EOLR is the daily quantity of production pieces/yards scanned & packed/Inspected & packed and transferred to the Finished Goods Warehouse. MLT = EOLR WIP

3.2 VAR
The VAR ratio is calculated by dividing the Total Cycle Time (TCT) (All the Standard minutes in the production process Cut 2 Box/Yarn 2 Fabric inspect plus machine process times e.g. : Drying, Dying, Setting, Knitting, Weaving) by the Manufacturing Lead Time. VAR = Total Cycle Time Cut 2 Box /Yarn 2 Pack Manufacturing Lead Time Cut 2 Box/Yarn 2 Pack

4. Collection Method
The WIP and EOLR( End Of Line Rate )/output data can be taken from the excel template used for KPI A:WIP. The SM- Values and process cycle times have to be determined via GSD plus IE studies.

5. Template ( please see separate .xls form

*Lean Terminology and Measurement System KPI –C: RFT
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1.Definition:
RFT is the Right First Time percentage of pieces/yards that complete a process and meet quality guidelines the first time. Right the First Time is a core lean measurement that evaluates the percentage of an operation (or a series of operations) ability to produce garments/Fabric Lots that require no more additional work than is defined in the Standard Operation Procedure (SOP). It excludes all secondary activities such as re-work, manual re-adjustments, re-pairs, recuts, re-dye.

2. Purpose of measurement
The RFT is measured to see how good a process is under control. The higher the RFT value the less variation in the process. Shows also a consistent way of following SOP ( Standard Operation Procedures ) It includes all sub processes throughout the value stream, Cut 2 Box/Yarn 2 Fabric Pack

3. Calculation method
RFT is calculated by dividing the total pieces processed minus the pieces that are reworked, diverted for off-line repair, or returned, by the total pieces processed. Total pieces processed – Total Rework/repairs/Returned RFT(%) = Total pieces processed RFT total process = RFT cut X RFT print X RFT embroider X RFT sew X RFT Pack. Example : [email protected] Cuting X [email protected] Embroidery X [email protected] Printing X [email protected] Heat Transfer X [email protected] Sewing X [email protected] Packing = 99% X 95% X 93% X 96% X 95% X 98% = 78.2% T2 - RFT for the entire process X100%

*Lean Terminology and Measurement System KPI –C: RFT
4. Collection method

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For Cut 2 Box/Yarn 2 Fabric Pack the RFT has to be collected and calculated at the Quality Control (QC) toll gates at the end of each sub process/department. The collections points of each sub process/department is called evaluation point. As more evaluation points as more accurate the total RFT value.

Evaluation points T1 = Cutting, Embroidery, Heat Transfer, Printing, Sewing, Packing. T2 = Giege Inspection, Dying, Finishing, Fabric Inspection.

5. Template ( please see separate .xls form )

*Lean Terminology and Measurement System KPI - D: SMV
1. Definition:
The Standard Minute Value is the amount of time required to complete an operation at a defined level of standard performance. It includes the work tasks, rest, machine delay and all other allowances as appropriate.

2. Purpose of measurement
? ? ? ? ? Costing design Pre-production planning compare & set efficiency targets Common language for costing verification between LO and supplier ( in case of discrepancy to compare GSD and aMD )

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3. Calculation method
Minutes for 100% Efficiency = (direct) Manpower direct x total working minutes/shift

Efficiency direct manpower (%) =

Minutes actual at Scan & Pack X100% Manpower direct x tot work min/shift

Minutes actual at Scan & Pack Efficiency total manpower (%) = X100% (direct + Indirect)

Manpower direct x tot work min/shift

*Lean Terminology and Measurement System KPI - D: SMV
3. Calculation method cont’
Definition direct/indirect Followed GSD ILO standard
Directs are classified as all operators who are engaged in the manufacture of the garment and are measurable from Spreading through to Carton ready for dispatch. Some companies classify cutting room operations as Indirect or even overhead but as all of the work carried out in the cutting room is measurable it will be therefore Direct. Indirects are helpers who do not carry out operations in the making up of the garment but support management/workers in roles such as servicing lines i.e. delivering work and threads to operators etc. ( example – water spiders ) In terms of financial budgeting staff such as Mechanics, Cleaners, Supervisors, Production Managers, Factory Managers etc may be classified as Indirect.

PPH (Pieces per person per hour) Output Scan & pack pieces actual PPH = / Working hours per shift

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Manpower (direct + Indirect) TAKT time ( TT ) = available time in seconds Target output per day ( customer demand )

4. Collection method
Using GSD / aMD

5. Template ( please see separate .xls form )

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