Monday, 27 June 2016

Growth Vs Survival Mindset

     As head of the organization, your belief  about your business either as growth oriented or survival oriented  determines your business growth.

     If you look at your business only as profit making motive, you tend to make profit somehow, irrespective of adhering to process,ethics,considering the interest of all stakeholders, long-term sustainability  of business.

      Instead, if you can change your perspective  to look at the  purpose of business as to  “Enhance the value to all stakeholders”. This will improve your thought process towards long-term sustainable business decisions. As there are many stakeholders like employees, customers, suppliers, banking finance institutions, promoters, Government ,society etc  and each stakeholder has different interest or value expectation from the organization. For example , as employee, the value expectation would be good pay, learning, and growth opportunities, as customers, the value expectation would be best product or service for the money, as suppliers, the value expectation would be regular orders, on time payment etc. It is your prime responsibility to enhance the value to stakeholders in a sustainable basis for which sustainable wealth creation is the path.

     If you have this perspective about the purpose of the business, your  approach and thought process would be on building solid foundation on process, systems, technology and talent management , in turn your visionary approach would be long term oriented even though sometimes you lose in short term. That is the Growth mindset of a a CEO of successful organization in the world.

Friday, 17 June 2016

Implication of Takt Time Assessment

As said earlier, Takt time is calculated with the input as "Customer Demand during a specific period".Assessment of Takt time against Cycle time has multiple benefits both at Organisation / Plant  Level and Function / Unit Level.

Takt Time Assessment can be used as Strategic as well as Tactic Tool 

On strategic level, it helps to plan the resources on short and medium term

On operational level, it helps to optimize the resources on short term 

Implication of Takt Time @ Plant / Organisation Level

It helps 

•To identify the constraints to deliver the customer requirements at plant level
•To plan short term and medium term plan to mitigate the constraints
•To plan the resources  or manpower across the plant activities

Implication of Takt Time @ Functional / Cell Level 

It helps 

•To identify the imbalance between the process 
•To plan short term and medium term plan to reduce the imbalance factors 
•To optimize the  resources  or manpower within the cell 

Sunday, 12 June 2016

Takt Time

Takt time  is the calculated time, that indicates us  
with what speed or pace we have to produce a certain product to fulfill the customer’s demand.

Takt Time = Available time per period / Customer’s demand per period

For example ,

Available time per period =480 min per shift
Customer demand  =500 units per shift,


Takt Time = 480 / 500 
                  =0.96 min

i.e  Every 0.96 min,one unit to be rolled out  to meet the customer’s demand

Wednesday, 8 June 2016

Understanding “Time Elements in Operations Management"

Cycle Time

Cycle time is the time required to process one piece

For example,

Grinding Cycle time = 100 sec

It includes,

Loading Cycle time + Auto Cycle time + Unloading time

=20 sec +75 sec +5 sec

=100 sec

ie Every 100 sec , we can get one component 

Throughput Time 

Throughput time = Sum of ( Cycle time in entire process of a component)

Total processing time for one component

For example,

Bearing ring throughput time = 240 sec

It means

Parting cycle time +Grinding cycle time +Turning cycle time

=60 sec +100 sec+80 sec

=240 sec

ie To process one bearing ring, the total time required is 240 sec

Lead time 

Lead Time = Sum of ( Cycle time in the entire process of a component) + all non-value added times in the system

ie  Lead time = Throughput time + all waste/delay time in the system

For example,

Bearing Lead time = 2 days, 

It means = 240 sec+all delays leads to 2 days