BULGARIA PRODUCTIVITY

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 1920s WORKING PRACTICES
• USA 1940s TOTAL QUALITY
  MANAGEMENT
• 1950s WORK STUDY Method
  Study / Time Study
• WILSON 1969 PRODUCTIVITY DEALS
  WITH UK UNIONS
• 70s / 80s / 90s MARKET GROWTH
• EU FUNDED CONSULTANCY ASSISTANCE SMEs
• 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
• SMs 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
  SMs
• Plain lockstitch
  5.50 SMs
• 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