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Hierarchical methodology for productivity measurement and improvement of complex production systems

  • US 20040034555A1
  • Filed: 03/14/2003
  • Published: 02/19/2004
  • Est. Priority Date: 03/18/2002
  • Status: Abandoned Application
First Claim
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1. A hierarchical method for causally relating productivity to a production system to provide an integrated productivity analysis of the system, comprising:

  • a) identifying an array of production operations including any one or more of the following;

    process, transportation, storage, cost, building of simulation model, and time;

    b) modeling the system as an interconnected array of unit production processes (UPP) reflecting actual or desired material flow sequence through the system;

    c) applying at least one set of UPP interconnections to factor the system into at least one set of UPP complex manufacturing subsystems (CMS) for description and analysis;

    d) assessing each UPP and each subsystem (CMS) to calculate at least one productivity metric of each UPP, UPP subsystem (CMS) and the system;

    e) determining a quantity of Operating Sequences (OSs) describing the material flow sequence of products through the complex manufacturing subsystem (CMS);

    f) determining product throughout or input, Pa, good product output, Pg, and defective product, Pa-Pg, for a total time, TT, of measurement or simulation;

    g) determining each OS in the complex manufacturing subsystem (CMS), and determining Overall Equipment Effectiveness (OEE) for each of the UPPs;

    h) determining availability efficiency (Aeff) or yield of each UPP; and

    i) determining Overall Throughput Effectiveness (OTE) of the complex manufacturing subsystem (CMS) by the relations, OTECMS=[Pth(CMS)/Ptha(CMS)] and Ptha(CMS)=Rthavg(CMS)*TT where, quantity Ptha(CMS) is theoretical actual product output units from the complex manufacturing subsystem (CMS) in total time, and Rthavg(CMS) is defined as the average theoretical processing rate for total product output from the complex manufacturing subsystem (CMS) during the period of total time TT, and, optionally j) collecting the total costs the system including at least one of Direct Manufacturing Costs (DMC);

    Process Labor (PL), Process Energy and Utilities (PE &

    U), Process Tooling (PT), Process Materials (PM), Equipment Depreciation (ED), and Direct Materials (DM);

    k) defining all direct manufacturing activities at each UPP activity, including at least one of;

    Manufacturing Operations (MO), Engineering Operations (EO), Quality Assurance Operations (QAO), Material Handling Operations (MHO), and Production Management (PM);

    l) allocating the DMC from each of the set of 6 (six) DMC Categories in step j) above to each of the 5 direct manufacturing activities defined in step k) at the respective UPP activity centers based on second stage cost driver factors;

    m) obtaining a dollar value of costs of each of the activities of the respective UPP-activity center using Equations (15-2) and (15-3), A





    CijUPP
    =

    k


    DMCk×

    DCDijk
    (15

    -

    2
    )
    A





    CiUPP
    =

    j


    A





    CijUPP
    =

    j




    k


    DMCk×

    DCDijk
    (15

    -

    3
    )
    where ACUPPij=the jth activity cost component contributed to UPP activity center i ACUPPi=total activity cost of UPP activity cost center DMCk=kth direct manufacturing cost component DCDijk=direct resource cost driver which allocates kth direct manufacturing cost to jth activity component of UPP activity center i;

    n) allocating the costs of each of the five general sets of activities of the respective UPP-activity center to three products based on third stage cost-driver factor as follows;

    Manufacturing Operations Labor Hrs of UPP-1 on Product-1Total Manufacturing Operations Labor Hours for All UPP'"'"'s=xxand, o) determining the total unit direct manufacturing cost (TDMCk, $/unit) for each product type, k, from Equation (15-4), where the numerator represents the total dollar cost of product contributed by each UPP activity center, and Pg(k) represents the number of good product units of product type k TDMCk=

    i

    OP




    j


    A





    CijUPP×

    ACDijk
    Pg

    (k)
    (15

    -

    4
    )


    and further optionally, p) determining the total direct manufacturing cost of a unit of good product averaged over all product types, k, during the period, TT, from Equation 15-(5), TDMCAVG=

    k




    i

    OP




    j


    A





    CijUPP×

    ACDijk


    k


    Pg

    (k)
    =

    k




    i

    OP




    j


    A





    CijUPP×

    ACDijk
    OTE×

    Ravg

    (F)
    (th)
    ×

    TT
    (15

    -

    5
    )
    where ACDijk=activity center cost driver, which traces the jth activity cost of UPP activity center i to product type k OTE=unit-based overall throughput effectiveness of the factory R(th)avg(F)=theoretical average processing rate in time TT for products through the factory, thereby establishing a relation of the average product cost to productivity (OTE).

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