BASIC INDUSTRIAL

ENGINEERING TERMS
 WHAT IS INDUSTRIAL ENGINEERING ?

 DEALS WITH OPTIMIZATION OF COMPLEX PROCESSES,SYSTEMS OR METHODS

 OPTIMIZATION OF 5M (MAN,M/C,MATERIAL,METHOD & MONEY) INSTEAD OF REDUCTION.
 INDUSTRAIL EMGINEERING IS A COMBINATION OF ANALYSIS,MEASURE,PLAN,ACT &
RESULT
 IT’S AN ORGANIZATIONAL APPROACH TO GET MAX RESULT USING MIN EFFORT
 IE = PROD ⤒ COST ⤓ MP ⤓ EFFICIENCY ⤒ QUALITY ⤒ PROFIT ⤒
 EVERENDING DYNAMIC APPROACH TO IMPROVE
 ITS WHERE ENGINEERING MEETS WITH BUSINESS
 STANDARD MINUTE VALUE(SMV)

SMV defined as " Time taken by a standard worker to perform the task with pre-defined conditions"

SMV = BASIC TIME + (BASIC TIME × ALLOWANCE)

Suppose to complete an operation, an standard operator takes 1 minute.

We put 15% allowance(Men, M/c & Time)

SMV=1+(1×.15) Min

=(1+.15) Min
=1.15 Min
GMT SMV is the sum of SMV for all M/c & Manual operation to complete an item

 RELATED TERMS TO SMV(Cont..)

 Standard Operator : For a specific item & style, the potential operator who can give
maximum output with best quality & can improve productivity.
 Lets see an Example for better understanding, Minimum • Suppose 100
Pcs Cutting
Input
I. Batsman faces 10 balls to score 5 Runs Input

II. Batsman faces 10 balls to score 12 runs • Operator

takes 1 hr
transform
III. Batsman faces 10 balls to score 10 runs. Operation 100 inputs
to 95
 Obviously 2nd one is the potential batsman who uses his outputs

inputs(balls) to get maximum output(Runs) Maximum • Standar

d
output operator
 RELATED TERMS TO SMV

 Pre-defined Conditions : On time input arrival, single piece flow, running m/c conditions,
defined quality status etc. are called pre-defined conditions.
 Basic Time : Actual time to complete an operation. In other word, basic time is the pick
& drop time including operation for quality output.
Basic Time= Pick time + Operation + Drop time;
Result , Input=Output with required quality
 In a broad sense , a GMT SMV=Sum of all operation SMV, not SMV of GMT + allowance.
 EFFICIENCY

 EFFICIENCY defined as ‘’The comparison of what is actually produced or

performed with what can be achieved with the same consumption of resources
(Men, M/c, Material etc. )’’
 EFFICIENCY = EARNED MINUTE/AVAILABLE MINUTE
 EARNED MINUTE = PRODUCTION(PCs) × SMV
 AVAILABLE MINUTE = MANPOWER(HEL+OPR) × WORKING TIME(MIN)
 EFFICIENCY % CALCULATION

 Suppose any GMT item SMV is 5.5 (For any fixed style SMV always fixed)
 We use 22 Manpower(Operator & Helper) to achieve 1500 Pcs for 10 hour working shift
 EARNED MINUTE = 1500× 5.5 or 8250 Min
 AVAILABLE MINUTE = 22× (10×60) or 13200 Min
 EFFICIENCY = 8250 Min/13200 Min or 0.625
 Efficiency is expressed as % ,Then EFFICIENCY =(0.625 ×100)% or 62.50%
 Efficiency is a ratio , not a number.
 Efficiency vary with LEAD TIME & QUANTITY . More Lead time & Quantity Increase
Efficiency , on the other hand less lead time tends us to use more MP or time to get
required output , so efficiency reduces.
 LINE TARGET

 Target= (total MP X WH X 60)/SMV

 Suppose We have 22 MP for 10 hr .GMT SMV is 5.5
 TGT=(22 X10 X60)/5.5
=2400 PCs/Hr (That is 100% TGT)
 For expected efficiency this 100% TGT is multiplied by efficiency to fix Line Target
 LINE TGT=(2400X.625) ;[Lets , we have expected efficiency of 62.5%)
=1500 PCs or 150PCs/Hr
 CPM & CM

 Minute cost or Cost per Minute(CPM) calculation for the garments

sewing line is too much needy to earn maximum profit from an
export order.
 CPM (Cost Per Minutes)= (Direct Labor Cost + Operational Cost)of
the month/ Usage Minutes (Available Minutes) of the month.
 CM/COM/MC

 Cost of Making(CM/COM)/Manufacturing cost(MC) have to calculate after calculating factory

CPM.
 CM= (SMV × CPM)/ Expected Efficiency%
 Suppose , any GMT item SMV is 5.5,Expected efficiency = 62.5 % , CPM[let] = $0.0264
 CM = (5.5 × .0264)/ .625
= $0.23/PCs
= ($0.23 ×12)/Dzn
=$2.79 /Dzn
 Broad Calculation of Garments CM
To find out the CM (Cost of Making) of a item you must need the following 06 (six) information at first, as listed
below:

i. Monthly total expenditure of your factory with factory rent, commercial cost, electricity bill, water bill,
transportation, repairing, worker & stuff wages etc. (8hrs/day) in Bangla taka.
Suppose -50,00,000/-tk

ii. Qty of running Machine of your factory of the following month (which total expenditure we have consider
here). Suppose -100 machines.

iii. Number of machine to complete the layout for the following Items (which CM we are calculating). Suppose-
25 machines.

iv. Production target/capacity of the following items, per hour from the existing layout, excluding alter & reject.
Suppose-200 pcs per hour.

v. Total working day of the followings month,(though the house rent, commercial expenses, machine
overhauling & some other cost remain same) Suppose-26 days.
 COST OF MAKING (CM) RULE:
={(Monthly total expenditure of the following factory/ 26) / (Qty of running Machine of your factory of the
following month) X (Number of machine to complete the layout)} / [{(Production capacity per hr from the existing
layout, excluding alter & reject) X 8}] X 12 / (Dollar conversion rate)
= [{(50,00,000 / 26) / ( 100) X (25)} / {(200) X 8}] X 12 / 74
= [{192307.7 / (100) X (25) } / 1600] X 12 / 74
= (48,076.9 / 1600) X 12 / 74
= 30.048 X 12 / 74
= 360.58 / 74
= $4.873 / dozen (this is the making cost (12 pcs) of the following items)
However, normally at present (after starting the new salary scale) in Bangladesh we calculate the CM of any item
consider the overhead sewing machine cost 1200 tk to 1400 tk/day that means $16.216 to $18.92/per day. Above
is for a non-compliance factory.
For the a compliance factory the per day machine cost will be 1800 tk to 2100 tk
( $24.32 to $28.37)
SO, if the an items produce 1600 pcs per day using 25machines then the CM will be
= Overhead machine cost X require machine / produce quantity X 12 / $74
= 1400 X 25 / 1600 X 12 / 74
= $3.547/DOZ
 CONVENTIONAL VS MODERN PROFIT THEORY

 Conventional :
COST + PROFIT = PRICE
 Modern :
PRICE – COST = PROFIT

 Price should be moderate to get maximum order !

 Cost should be minimized to get maximum profit !
 WORK STUDY

 SYSTEMATIC STUDY OF METHODS OF WORK TO IMPROVE EFFECTIVENESS & SET STANDARDS

 2 STAGES :
1. METHOD STUDY : STUDY OF CURRENT METHOD & FIND OUT TO IMPLEMENT IMPROVED METHOD
2. WORK MEASUREMENT : DETERMINE THE STANDARD TIME REQUIRED TO COMPLETE IMPROVED METHOD
 BENEFITS OF WORK STUDY :
1. PRODUCTIVITY IMPROVEMENT
2. EFFICIENCY INCRESE
3. IMPROVED WORK FLOW
4. IMPROVED WORK LAYOUT
5. IMPROVED STANDARDS
 TIME & MOTION STUDY

 TIME STUDY : A WORK MEASURING TECHNIQUE TO CALCULATE BASIC TIME BY FINDING CYCLE
TIME & ADDING ALLOWANCE
 MOTION STUDY : A TECHNIQUE TO ANALYZE OPERATORS MOTION & SET STANDARD BY
ELIMINATING UNNECESSARY MOTION
 TWO DIFFERENT THEORY BUT NEED PARALLEL RUNNING TO IMPROVE SYSTEM KNOWN AS
‘METHOD ENGINEERING’
 TIME & MOTION STUDY IS A CONJUGAL TECHNIQUE TO PROCESS CONTROL,IMPROVE DISSIMILAR
WORK PERFORMANCE & SET STANDARD GOALS

‘’IE IS A COMBINE PACKAGE TO IMPROVE BY TIME STUDY,WORK STUDY & MOTION STUDY’’
 LINE BALANCING

 LINE BALANCING IS A MANUFACTURING ENGINEERING FUNCTION IN WHICH WHOLE

COLLECTION OF PRODUCTION-LINE TASKS ARE DIVIDED INTO EQUAL PORTIONS.
 WELL BALANCED LINES AVOID LABOR IDLENESS & IMPROVE PRODUCTIVITY
 LINE BALANCING IS FOR KEEPING WORK LOAD(THEARETICAL MP/ACTUAL MP) AS 1 OR
LESS THEN 1 BY BALANCING WORK AS PER CAPACITY & TARGET

FIND METHOD
LINE CAPACITY CAPACITY LINE
BOTTLENEC ENGINEERIN
LAYOUT STUDY GRAPH BALANCING
K G
 STEPS FOR LINE BALANCING
‘BOTTLENECK’ (CONSTRAINT M/C OR MP OR OPERATION THAT REDUCES PRODUCTIVITY) HAVE TO FIND
OUT

FIND SAME M/C / M/C CONDITION SUCH AS GAUGE/PRESSURE FEET/DEVICE/THREAD ETC

FIND OUT OPERATION TO BALANCE WITH BOTTLENECK BY CHECKING WITH HIGER CAPACITY

BALANCING OPERATOR TIME STUDY ,MOTION STUDY & PRODUCTION STUDY

FIND BALANCED OPERATION EVERY MOTION CT(CYCLE TIME)

ELIMINATING NON VALUE ADDED TIME & SAM & CAPACITY CALCULATION

OPERATION BALANCING/HR ACCORDING TO TARGET & BALANCED OPERATOR CAPACITY

 EXAMPLE-LINE BALANCING FOR ITEAM T-
SHIRT
IMBALANCED BALANCED
SL NO. OPERATIONS M/C /HELPER MP BALANCING OPERATION
CAPACITY/HR CAPACITY/HR

1 Front n back n 1st shoulder join with / without tape 4TH/OL 2 162 162 NO

2 Neck binding FLAT BED 1 160 160 NO

3 2nd Shoulder inner tack SNLS 1 164 164 NO

4 2nd shoulder join with / without tape 4TH/OL 1 180 160 BALANCE (6) 20 PCs/HR

5 Secure 2nd shoulder @ neck SNLS 1 162 162 NO

6 Sleeve n body match n insert sleeve 4TH/OL 2 140 160 BALANCE WITH (4)

7 Care Label Make SNLS 1 161 161 NO

8 Side/ sleeve Seams inc. care label and Gmts turns 4TH/OL 2 160 160 NO

9 Sleeve hem 2TFL 2 130 160 BALANCE WITH (10)

10 Bottom Hem 2TFL 1 190 160 BALANCE (9) 30 PCs/HR

11 Thread trims & sticker remove MNL 1 165 165 NO

 IMBALANCED CAPACITY GRAPH
200
180 190
160 180
140 162 160 164 162 161 160 165
120 140 130
100
80
60
40
20
0
Front n back n Neck binding 2nd Shoulder 2nd shoulder Secure 2nd Sleeve n body Care Label Side/ sleeve Sleeve hem Bottom Hem Thread trims &
1st shoulder inner tack join with / shoulder @ match n insert Make Seams inc. care sticker remove
join with / without tape neck sleeve label and Gmts
without tape turns

BALANCED CAPACITY GRAPH(LINE BALANCING)

200
180
160 162 160 164 160 162 160 161 160 160 160 165
140
120
100
80
60
40
20
0
Front n back n Neck binding 2nd Shoulder 2nd shoulder Secure 2nd Sleeve n body Care Label Side/ sleeve Sleeve hem Bottom Hem Thread trims &
1st shoulder inner tack join with / shoulder @ match n insert Make Seams inc. care sticker remove
join with / without tape neck sleeve label and Gmts
without tape turns
 CORE LESSON FROM LEARNING

 SMV & IT’S USE IN GARMENTS/APPAREL INDUSTRY

 EFFICIENCY CALCULATION & ITS RELEVANT TERMS
 CPM & CM CALCULATION FOR GARMENTS INDUSTRY
 WORK STUDY,TIME & MOTION STUDY
 LINE BALANCING & HOW TO APPLY PRACTICALLY
THANK YOU