All,

I would like to use methods to baseline existing productivity levels in Operations & have a target to improve prouctivity by 5% QnQ, Request you to please help me to determine the right approach to calculate the existing level and future increase

 

Thanks,

Prashant.S

 

Dear Prashant,

I am not sure how your productivity is calculated - but I am presuming that this data is continuous.

You will need to review sufficient historical data (say couple of years) to see if there are any trends or seasonality in the data. This along with the amount of variation you see in your data will determine how much historical and future data you would need to collect for this project. Establishing a target of QnQ increase will necessitate a longer control period as you may need to collect data for several quarters to ensure that your process is in control. If permissible, I would recommend you to consider a shorter timeframe - like weeks or months.

You can perform a check on normality of the data to see if the data is normally distributed in which case you can work with the averages, if not, you may have to work with the medians. Based on this, you can establish a baseline level of mean and standard deviation if the data is normal, or median and IQR if the data is non-normal.

If you also have any specification limits, then you will be able to establish a process capability index, DPMO, and Sigma Levels for the baseline.

Best Regards,

SJ.

Thanks SJ. What are the best SS tools which can be used to derive at this?

Dear Prashant,

Are you asking about Normality test?

If so, normality check can be done using Anderson-Darling statistic (within Minitab, go to Stat->Basic Statistics -> Normality Test)

SJ

Hi ,

Productivity measurement  can be done month on month, Quarter on Quarter and Year on Year , usually companies on A Eagle view give 5 to 10 % productivity Target

Year on Year and the monitoring will be done Month on Month and Quarter on Quarter for progress review.

For Ex: 2008 - SCOP - 14 M  , Goods produced - 1M (volume)

           2009   SCOP -  13M  , Goods Prodcued - 1M  (volume)

Then productivity  = ((14 - 13)/13)= 7.69%

Savings  in terms of Matl , Labour and overhead compared to last year costing standard.

In simple , the Change in terms of financial value. The results of all the Lean and six sigma activities of the plant will lead to Productivity.

Mainly Matl, Labour and overheads(Variable )

i have just shared  what i am working on

maharajan