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BULGARIA PRODUCTIVITY

BULGARIA PRODUCTIVITY. PDA INTERNATIONAL. BULGARIA PRODUCTIVITY. PDA INTERNATIONAL PHIL DOWNING - GROUP MANAGING DIRECTOR UK CONSULTANCY 1982 4,000 + EU SUPPORTED PROJECTS BULGARIA MANUFACTURING 1995 CLOTHING / ENGINEERING.

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BULGARIA PRODUCTIVITY

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  1. BULGARIA PRODUCTIVITY PDA INTERNATIONAL

  2. BULGARIA PRODUCTIVITY PDA INTERNATIONAL • PHIL DOWNING - GROUP MANAGING DIRECTOR • UK CONSULTANCY 1982 4,000 + EU SUPPORTED PROJECTS • BULGARIA MANUFACTURING 1995 CLOTHING / ENGINEERING

  3. BULGARIA PRODUCTIVITY PDA • SALES / TECHNICAL / PLANNING / CONTROL / QUALITY / LOGISTICS • Currently working with over 40 BG companies manufacturing for UK customers

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

  5. BULGARIA PRODUCTIVITY PRODUCTIVITY • HISTORY OF PRODUCTIVITY • 19TH CENTURY INDUSTRIAL REVOLUTION • TAYLOR 1920’s WORKING PRACTICES • USA 1940’s TOTAL QUALITY MANAGEMENT • 1950’s WORK STUDY: Method Study / Time Study • WILSON 1969 PRODUCTIVITY DEALS WITH UK UNIONS • 70’s / 80’s / 90’s MARKET GROWTH • EU FUNDED CONSULTANCY ASSISTANCE SME’s • MANUFACTURING ADVISORY SERVICE • 2000 LEAN

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

  7. BULGARIA PRODUCTIVITY REFERENCE PERIOD MEASURES • OUTPUT • INPUT • EFFICIENCY • PROFIT PERFORMANCE • COSTS

  8. BULGARIA PRODUCTIVITY STANDARD COSTING A system based on standards which are used to: • Determine sales cost of products • Plan production • Monitor production • Measure variances / take action • Standard / Actual / Variance / Action

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

  10. BULGARIA PRODUCTIVITY PRODUCTION PLANNING • LINE CAPACITY PER WEEK • PRODUCT WORK CONTENT • DELIVERY DATE TARGET • MATERIALS AVAILABILITY

  11. BULGARIA PRODUCTIVITY PRODUCTION CONTROL • To promote action on variances from planning targets: • LINE CAPACITY • LINE EFFICIENCY • CLEAN ORDER / MATERIALS • QUALITY • OTHER

  12. BULGARIA PRODUCTIVITY OPERATOR FINANCIAL INCENTIVE Vital for company success Individual: Daily or weekly Team: Daily or weekly Group: Weekly Factory: Weekly or monthly IMPORTANT TO MEASURE & CONTROL

  13. BULGARIA PRODUCTIVITY FACTORY LAYOUT • Minimum waste ‘LEAN’ on movement of materials in progress. • Ideal factory layout for: FLOW PROCESS CONTROL VISUAL CLEAN & TIDY

  14. BULGARIA PRODUCTIVITY METHODS AND WORK AIDS • Investigate each product for method improvements that reduce the work content and or increases quality standard • Example: Folder for front placket reduces work content by 6 standard minutes • Machinery / Equipment costs, savings and payback by reduction

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

  16. BULGARIA PRODUCTIVITY INFORMATION REQUIRED • OPERATION BREAKDOWN: Description of operation, method etc • SM’s PER OPERATION: Cycle time based on method & equipment • TOTAL STANDARD MINUTES: For Capacity Planning, costing etc • MACHINE / EQUIPMENT: Basis for standard minutes Eg Integrated sewing unit 3.00 SM’s Plain lockstitch 5.50 SM’s • PLAN QUANTITY PER WEEK: Customer requirement or capacity

  17. BULGARIA PRODUCTIVITY

  18. BULGARIA PRODUCTIVITY

  19. BULGARIA PRODUCTIVITY

  20. BULGARIA PRODUCTIVITY • SUMMARY • REFERENCE PERIOD / HISTORY • STANDARD COSTING • PRODUCTION PLANNING • PRODUCTION CONTROL • FACTORY LAYOUT • METHODS • FINANCIAL INCENTIVE SCHEME • LINE SET UP • QUALITY CONTROL • MANAGEMENT CONTROL • TRAINING • CONTINUOUS IMPROVEMENT

  21. BULGARIA PRODUCTIVITY • PLAN • SHOWCASE PROJECT • EXAMPLE TO OTHER COMPANIES • PROOF OF WHAT CAN BE DONE

  22. BULGARIA PRODUCTIVITY • QUESTIONS • ELECTRONIC COPY OF SLIDES • THANK YOU FOR YOUR TIME

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