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How can you make your business more succesful? (Part2)

KZK Solutions /kzoli62/
Published by Z. Kovács in Production · 20 March 2021
Tags: Business
In my entry today, I will continue with the most recently started topic about the success of businesses. Today I write about one of my specialties about production and production.

2. Manufacturing

2.1 Production Planning

2.1.1 Annual / quarter- / month- / week planning

In general, we have time for what we want. Even if we don’t think in extremes, we all still have some freedom about our time.
This freedom cannot be said in the case of production. The reasons for this are listed below.

  • The production is scheduled to carry out their work according to plan exactly defined.
  • These plans are to be followed, the results (quantity, quality, etc.) are reported.
  • Deviations (causes) and results should be coordinated with management.

The plans must cover the entire production process. If any part of the process is subcontracted, a list of subcontractors, their technologies, selection criteria, costs, and contracts awarded should be listed.
Production plans match needs (orders received, sales forecasts), resources (people, materials, machinery) so that the company operates with maximum efficiency.
In the production plan, orders are arranged in chronological order, taking into account the deadline. When developing the plan, the load on the entire plant should be taken into account and a balance should be sought to meet the needs of the customer with existing resources.
Based on the plans, production programs (production schedule) are prepared, which prescribe the production of parts in accordance with the priorities.
During the scheduling, efforts should be made to minimize the downtime of the machines and to make the most of the available working time.

2.1.2 Standard Time / Standard Time Tracking

It can be said that the efficiency of production and the improvement of productivity are of paramount importance everywhere. Workers need to produce more and more products over given time.
In addition to planning and organization, standardization also plays an important role. This not only creates the opportunity to work faster and more efficiently, but also requires employees to do the same.

  • For accurate planning standard times (norms) are required.
  • As a starting point for the standard times gives the experience a good starting point.
  • The engineers should set default times using REFA measurements.
  • These standard times are not embedded in concrete values to be checked evaluated again and again.

2.1.3 Downtime Tracking / Actions

The principles of lean production deal with downtime and loss times in detail. I will deal with this topic (lean manufacturing) in detail in a later post.
However, it must already be said here that any time when a company does not produce added value will result in a loss, both due to the loss of turnover and the existence of time costs. Due to the above:

  • Downtime should be collected and evaluated.
  • Most downtimes are (4M):
    • Machine (maintenance)
    • Material
    • Method (Process - Engineering)
    • Other (eg. Lack of personnel)
    • To downtimes, actions should be defined.

2.2 Documentation

In the case of auxiliary materials, spare parts and other materials, the estimation and the ratio analysis are expedient in view of the cost-benefit principle. In the case of raw materials and those types of materials where there is no possibility of substitution, ie the lack of materials causes an immediate loss of production, the need must be planned on the basis of technical documentation.
To lose weight, to control the use of the substance, it is necessary to record more of the data listed below.

2.2.1 Time and quantity registration

  • Input data for production planning, productivity, invoice, etc.
  • Productivity should be regularly evaluated and reported to the management. (One of the main performance indicators - KPI's)

2.2.2 Registration test / repair results

  • Information about quality
  • Input data for CIP
  • Information to customers. See also at   "Organization / Customer Management / Traceability"

2.2.3 Downtime registration (with reasons)

  • see at   "Production Planning / downtime tracking"

Additional documentation is also used in production, such as work instructions, technological instructions, etc. but they are not part of this blog entry.

2.3 Introduction of Lean Manufacturing

As I mentioned in section 2.1.3, I want to write more about this topic in a later post. The subject is so voluminous that it is “worth a Mass” in itself.
In this post, I will only deal with the topic in headlines, listing some of its significant points.

2.3.1 Define activities with value adding

  • Only value-adding processes are interesting for the customers.
  • Everything else is, which usually pays the manufacturer loss

2.3.2 Power up value

  • Input information to eliminate the losses.
  • Recommended value with the customer to agree on.

2.3.3 Ensure continuity of the value stream

Any interruptions in the value stream mean losses.
If the interruption is unavoidable, it should be agreed with the customer.

2.3.4 Build pull system

  • Production quantities to be controlled by customer demand.
  • Unmatched cycle times cause loss by overproduction, waiting time. See also later in   "Engineering / manufacturing parameters".

2.3.5 Eliminate the losses (Mudas)

  • Traditionally, Lean manufacturing speaks of 7 loss factors:
    • Waiting
    • Overproduction
    • Transport
    • Movement
    • Repair / Failure
    • Stock
    • Over-processing
  • The above week is more and more often complemented by two more:
    • Loss of talent
    • Resources

2.3.6 Visualization/storage space, up to date documents, etc.

  • Transparent manufacturing area.
  • There is no mixed substance or product. (good can not mix with the fault)
  • You can see what and where to go.

2.4 Introduction of 5S

“5S is a lean tool, a method used primarily for the orderly design of corporate workplaces. It is misused in many places with “order and purity” content, while the method is much more than that. Understanding and correct application is a prerequisite for the introduction and successful maintenance of lean.” (Wikipedia)

  • Standardization of storage spaces.
  • "Make to order" Reduction of search, unnecessary movement.

2.5 Introductionof CIP

Continuous improvement process is a process used to improve products, services and processes. Here are some examples of some of this.

2.5.1 Introduction PDCA

The PDCA cycle is a repetitive four-step management method used to control and continuously develop products and processes.
Each corner point are as follows:

  • Modifying the Process for Better Results (Plan)
  • Implementing the Procedure (Do)
  • Check result (Check)
  • Record Procedure (Action)

This cycle is a continuous, closed circle. After each action, we look for the next repair idea. The activity can be imagined as a spiral, or as circles in a row.

  • Evaluation, implementation and monitoring CIP actions.
  • Continuous, iterative process.

.5.2 In the context of teamwork, Kaizen

"Kaizen is a Japanese method that can be implemented in all areas of life where people work, that is, any activity and thus its results can always be made better and better. True in production and service is known primarily, but at home, at school, can be used everywhere in hotels, warehouses, airports, manufacturing, engineering and business.It is more common and used in companies to increase process efficiency, improve quality and achieve other set goals.Kaizen is a complex Japanese word with two Kanji (Chinese signs) - consists of a change (kai) in the direction of good (zen). " (Wikipedia)
I will write more about this topic as another of my specialties in later posts.

  • Increase the efficiency of processes in organizations.

2.6 Idea box

Management is constantly focused on business development. The best, most useful ideas come directly from the employees working in production.


  • Utilizing employee ideas.
  • It would be wasteful to lose the ideas of the workers.

2.6.1 Evaluation

A team evaluates the PDCA procedure already mentioned.

2.6.2 Ideas for the Month / Idea Holder

  • The idea that resulted in the most (measurable or non-measurable) benefits.
  • Announcing the Idea Player:
    • It supports the employee's pride.
    • He encourages others to show their ideas might be useful.

2.6.3 Rewarding ideas with results / economizing Etc. (to promote financial interest / pride of MA)

  • In Hungary, the employee may be most likely financially motivated.
  • Promotion of pride above.

In the next part of my series I will deal with product quality, quality assurance and technical conditions.

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