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FAKULTI TEKNOLOGIKEJURUTERAAN MEKANIKAL DANPEMBUATANUNIVERSITI TEKNIKAL MALAYSIAMELAKAINDUSTRIAL ENGINEERINGBMMP 3354 REV :LAB 1: PRODUCTIVITYNAMES OF GROUPMEMBERS & MATRIXNUMBER1. KRISNAN A/L KANDHIAN B2. MERYL ANYIE TOMY B3 SITI SHOUFEA BINTINAHARANUARB4. MOHAMAD HAZZIM BINMOHD ANUARB5. MO...

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FAKULTI TEKNOLOGI KEJURUTERAAN MEKANIKAL DAN PEMBUATAN UNIVERSITI TEKNIKAL MALAYSIA MELAKA

INDUSTRIAL ENGINEERING

BMMP 3354

REV :02

LAB 1: PRODUCTIVITY

NAMES OF GROUP MEMBERS & MATRIX NUMBER

1. KRISNAN A/L KANDHIAN

B091810005

2. MERYL ANYIE TOMY

B091810096

3.INDAH SITI SHOUFEA BINTI NAHARANUAR 4. MOHAMAD HAZZIM BIN MOHD ANUAR 5. MOHAMMAD AIDIL AZREEM BIN IBRAHIM

B071710301 B091810293 B091810354

COURSE NAME OF INSTRUCTOR

1.

DR. IHWAN GHAZALI

2. EXAMINER’S COMMENT

VERIFICATION STAMP TOTAL MARKS :

REV NO DESCRIPTION

01 02

DATE OF REVISON

Contents reviewed after 5 years. Change material from cloth pegs to toy assembly. Contents reviewed after 6 years. covid situation, Online method, add number of operator from 2 to 4, material from cloth pegs to toy assembly is still same.

03

1

4/9/2018 10/28/2020

1.0 ABSTRAK

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.

For businesses, productivity growth is important because providing more goods and services to consumers translates to higher profits. As productivity increases, an organization can turn resources into revenues, paying stakeholders and retaining cash flows for future growth and expansion.

In this experiment we made 2 different types of measuring, for experiment 1 our group members will act as the time keeper and the data recorder, the operators will perform the toy assembly using the toy product provided. Both operators in the group must select the same products to assemble. The operators will repeat the assembly process 5 times. v. The

time

keeper and data recorder will note all the observed data in the data sheet provided in Table 1.

In experiment 2 , our group discuss on how to improve the time for the toy assembly. Practice the new plan prior to performing the toy assembly for the data gathering purpose. Practice the new plan prior to performing the toy assembly for the data gathering purpose. Repeat the assembly process again and record the data using the data sheet in Table 2 ,Repeat the assembly process again and record the data using the data sheet in Table 2

2

2.0 INTRODUCTION

Productivity is critical for the economic growth and competitiveness. Productivity growth constitutes an important element for modelling the productivity capacity of a company. Productivity has become an important issue in a business organization nowadays because high productivity means higher profit margin.

Productivity can be defined as a ratio of a measure of output to a measure of resources used for the input and can be generally expressed as : 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 ≡

𝑜𝑢𝑡𝑝𝑢𝑡 𝑖𝑛𝑝𝑢𝑡

The output factor can be classified into goods and service. The characteristics of good include tangible product , consistent product defination and low customer interaction.

There are different measures of productivity and the choice depends on the purpose of the productivity measurement or data availability. We introduce two type of productivity measure which are the partial productivity and multifactor productivity (MFP). Using partial productivity measurement focus on one input at a time and ccompare current result to historical trends and result at othe companies. 𝑃𝑎𝑟𝑡𝑖𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 ≡

𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡 𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑖𝑛𝑝𝑢𝑡

Thus , if productivity numbers are low relative to company average, consider skill traning to improve his productivity. Otherwise number are high, assign him to preffered client or put him on a supervisory track. If the number are significantly different in two shops, try to find the reasons. It could be quality issues, or could be product mix issue .

Multifactor productivity (MFP) measure the change in output per unit combined inputs. MFP reflect output per unit of some combined set of inputs, a change in MFP reflect the change in output that cannot be accounted for by the change in combined inputs. MFP measure are indicators that take into account the utilization of multiple input. The MFP ratio can be describe as : These input include labor ,material, energy and capital. 𝑀𝑢𝑙𝑡𝑖𝑓𝑎𝑐𝑡𝑜𝑟 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 ≡

𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡 𝐴𝑙𝑙 𝑖𝑛𝑝𝑢𝑡 𝑢𝑠𝑒𝑑 𝑡𝑜 𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑡ℎ𝑒 𝑜𝑢𝑡𝑝𝑢𝑡

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Thus , if productivity ratio is low relative to a competitor’s average, consider skill traning or technology upgrades to improve the store’s productivity. If the productivity ratio are high, consider an incentive or recognition system to the employees. Last but not least, productivity is important because it allow the business to be more cost effective. The more output a business has for a specific cause, the cheaper it is to produce the product. This in turn allows the business to have a higher profit.

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3.0 LIST OF INSTRUMENTS / APPARATUS i.

Instruction sheet

ii.

Toy product

iii.

Stop Watch

iv.

Data Gathering Sheet

4.0 WORKING PROCEDURE 4.1 Measuring Productivity (Experiment 1) i.

Select two of the group members as the operators.

ii.

The other group members will act as the time keeper and the data recorder.

iii.

The operators will perform the toy assembly using the toy product provided. Both operators in the group must select the same products to assemble.

iv.

The operators will repeat the assembly process 5 times.

v.

The time keeper and data recorder will note all the observed data in the data sheet provided in Table 1.

***Note :

The operators should practice a few times to assemble the toy product

before the actual toy assembly for data gathering.

4.2 Productivity Improvement (Experiment 2) i.

Discuss with your group on how to improve the time for the toy assembly.

ii.

Practice the new plan prior to performing the toy assembly for the data gathering

iii.

Repeat the assembly process again and record the data using the data sheet in Table 2.

purpose.

***Note :

The operators should practice a few times to assemble the toy product

before the actual toy assembly for data gathering.

4.3 Multi-factor Productivity i.

Use the result in Experiment 2.

ii.

The material cost to manufacture the toy is RM0.5 per unit, the labor cost is RM10 per hour and the operators work for 8 hours per day.

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5.0 RESULT TABLE 1: RESULT DATA SHEET FOR EXPERIMENT 1

OPERATOR 1

OPERATOR 2

OPERATOR 3

OPERATOR 4

Data 1 -5 repectively

Data 1 -5 repectively

Data 1 -5 repectively

Data 1 -5 repectively

OBSERVATION Observation Time (sec or min)

Toy output per hour (units)

110

102 100

90

80

120 110 105 90 90

95

104 105 101 96

Average time =

92

115 115 111 93

Average time =

Average =

=(100+102+100+90+80) / 5

=(120+110+105+90+90)/ 5 =(95+104+105+101+96) / 5

=(92+115+115+111+93) / 5

=96.4sec

=103 sec

=100.2 sec

=105.2 sec

3600 sec = 1 hour

3600 sec = 1 hour

3600 sec = 1 hour

3600 sec = 1 hour

96.4 sec = 0.02678 hour

103 sec = 0.02861 hour

100.2 sec = 0.02783 hour

105.2 sec = 0.02922 hour

Toy output per hour

Toy output per hour

Toy output per hour

Toy output per hour

= 1 hour / 0.02678 hour

=1 hour/0.02861 hour

=1hour / 0.02783 hour

= 1hour / 0.02922 hour

=38 units

=35 units

=36 units

=35 units

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Average time =

Total time:

Total time:

Total time:

Total time:

Labor Productivity

=110+102+100+90+80

=120+110+105+90+90

=95+104+105+101+96

=92+115+115+111+93

(units / hour)

=482 sec

=515 sec

= 501 sec

=526 sec

3600 sec = 1 hour

3600 sec = 1 hour

3600 sec = 1 hour

3600 sec = 1 hour

482 sec = 0.1339 hour

515 sec = 0.1431 hour

501 sec = 0.1392 hour

526 sec = 0.1461 hour

Labor Productivity

Labor Productivity

Labor Productivity

Labor Productivity

= 5 units / 0.1339 hour

= 5 units / 0.1431 hour

= 5 units / 0.1392 hour

= 5 units / 0.1461 hour

=38 units/hour

=35 units/hour

=36 units/hour

=35 units/hour

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1.

Calculate the labor productivity for Operator 1 until Operator 4. (Fill up Table 1.)

2.

Compare and discuss the difference between the productivity of Operator 1 until Operator

Based on the result in Table 1, it shows that the labor productivity for Operator 1 which is 38 units, is the highest when compare to the other Operators. In Table 1, it shows that Operator 2 produced 35 units,, Operator 3 produced 36 units and Operator 4 produced 35 units. This is because, Operator 1 has the smallest total time which is 482 sec. In addition, Operator 1 only need 96.4 sec to produced 1 toy. When compare to other Operator, they need much time to produced 1 toy. When refer to result in Table 1, Operator 2 need 103 sec, operator 3 need 100.2 sec and operator 4 need 105.2 sec to produced 1 toy.

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TABLE 2: RESULT DATA SHEET FOR EXPERIMENT 2

OPERATOR 1

OPERATOR 2

OPERATOR 3

OPERATOR 4

Data 1 -5 repectively

Data 1 -5 repectively

Data 1 -5 repectively

Data 1 -5 repectively

OBSERVATION

Observation Time (sec or min)

79

61

37

31

28

Average time = 47.2 sec

80

75

52

40

32

Average = 55.8 sec 55.8 / 3600 = 0.0155 hrs

Toy output per hour (units)

Labor Productivity (units / hour)

36

40

55

62

34

Average time = 45.4 sec 45.4 / 3600 = 0.0126 hrs

52 30

72

39 27

Average = 44 sec 44 / 3600 = 0.0122 hrs

47.2 / 3600 = 0.0131 hrs 1 / 0.0131 = 76.27 units

1 / 0.0155 = 64.52 units

1 / 0.0126 = 79.30 units

1 / 0.0122 = 81.81 units

79 + 61 + 37 + 31 + 28= 236 sec / 3600 sec / hrs =0.0655 hrs 5 / 0.0655 hrs = 76.33 units/hrs

80 + 75 + 52 + 40 + 32= 279 sec / 3600 sec/hrs =0.0775 hrs 5 / 0.0775 hrs =64.51 units/hrs

36 + 40 + 55 + 62 + 34 = 227 sec / 3600 sec/hrs =0.0631 hrs 5 / 0.0631 hrs =79.23 units/hrs

52 + 30 +72 +39 + 27= 220 sec / 3600sec/hrs =0.0611 hrs 5 / 0.0611 hrs =81.82 units/hrs

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1.

Explain the plan to improve the productivity.

In order to increase the productivity, the operator must be able to increase the production in a short period of time, which mean they must be work faster and at the same time efficient without failing any product.

2. 3.

Recalculate the labor productivity for Operator 1 until Operator 4. (Fill up Table 2) Discuss the results of the improvement plan on the productivity of the workers. Did the productivity increase, decrease or remain the same compared to Experiment 1? If the productivity changes, by what percentage did it change? The results shows that the productivity of the workers in Experiment 2 is increasing to the total of 301.89 units/hrs, compare to the Experiment 1 which is 144 units/hrs. Calculation of percentage change : E2 –E1 / E1 x 100% (76.33 + 64.51 + 79.23 + 81.82) – (37 +35 +36 + 34) / 144 x 100% =111.03% RESULTS FOR MULTIFACTOR PRODUCTIVITY

1.

Determine the multifactor productivity of the toy assembly. Table 1:

Output= (3+35+36+3) units/hour x 8 hour/day = 1136 units/day Material Cost

RM0.50 x per unit

1136 units x RM0.50 = RM568

Labor Cost

RM10 per unit

Operation Works

8 hours per day

4 operator x RM10 x 8 hours = RM320

TOTAL INPUT

Multifactor Productivity = output / (labor + material) = 1136 units per day / RM888 per day = 1.279 units per RM

10

RM 888.00

Table 2: (MULTIFACTOR)

LABOR

RM10 @per workers

MATERIAL

RM0.50 @per units

OPERATION HOURS

8 hrs

LABOR RM10 @per workers MATERIAL

RM0.50 @per units

OPERATION HOURS 8 hrs

OUTPUT

(76.27 + 64.52 + 79.30 + 81.81) =301.9 x 8hrs =2415.2 units

INPUT = LABOR + MATERIAL (4 Workers x RM10 x 8 hrs) + (2415.2 units x RM0.50) =RM 320.00 + RM1207.6 =RM1527.6

MULTIFACTOR = 2415.2 Units / RM1527.6 1.581 Units / RM

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2.

Due to an increase in the customer demand of the toys, the company is planning to automate the toy assembly process. The output of the toy is expected to increase by 20% (use the output of experiment 2 as a reference). There is an additional operational cost of RM2 per hour incurred due to the newly introduced equipment. However, only 1 operator will be required to operate the automated assembly equipment. Determine the new multifactor productivity of the toy assembly process.

NEW OUTPUT (Total of Toy output per hour in EXP 2) = (76.27 + 64.52 + 79.30 + 81.81 ) = 301.9 units x 8hrs =2415.2 units

(0.2 % x 2415.2) units + 2415.2 units =2898.24 units

ADDITIONAL OPERATIONAL COST + 1 LABOR (RM 2 x 8 hrs) + (1 Worker x RM10 x 8 hrs) = RM96.00

3 OPERATOR (REST WORKERS)

NEW MULTIFACTOR :

(3 WORKERS x RM10 x 8 hrs) =RM240.00

2898.24 units / RM 1785.12

LABOR COST

= 1.623 units / RM

= RM96.00 + RM240.00 =RM336.00

MATERIAL COST (2898.24 units x RM0.50)= RM1449.12

TOTAL INPUT (LABOR + MATERIAL) COST RM336 + RM1449.12 =RM1785.12

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3.

The company is also considering a new material for the toy. The new material can reduce the material cost by 30%. Calculate the new multifactor productivity.

The company is also considering a new material for the toy. The new material can reduce the material cost by 30%. Calculate the new multifactor productivity.

Material cost reduce by 30% (30% / 100% ) x RM0.50 = RM0.15 RM0.5 – RM0.15 = RM0.35

New material cost =RM0.35 per hour x 2415.2 units =RM845.32

New Multifactor Productivity = 2415.2 units / (RM320 + RM845.32) = 2415.2 units/ RM1165.32 = 2.073 units per RM

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5.0

RESULT DISCUSSION

Above experiment 1 and experiment 2 has been conducted by using a proper method and an appropriate calculation to acquire the result we looking for. From experiment 1, we have collected and calculated the data to identify the current productivity on toys output per hour. To be organized the collected data, the collected data have been listed down in table form to clearly understand the content for the further action. As per the result in experiment 1, the labor productivity of the operator 1 was able to produced highest number of units in short period of time then other remind operators. After the result, we discussed in group to took the objective to improve the current result of productivity by conducting the concept of effective and efficient. To be more effective, we have to find out and operate the easiest and simplest way of assembly the toy with shortest time period. And to be efficient, we have been improving the cycle time and improve the ratio of operator. To know whether the concept of effective and efficient will be succuss, we conducted experiment 2 to identify. As per the result above of experiment 2, we succuss in our concept. Where, the operators could done increase the productivity output far fastest then previous. But this experiment 2, the operator 4 could done produce highest number of units within shortest time period then operator 1, where operator 4 couldn’t make it. As the total comparison result of both experiments, the productivity out in experiment 2 were 301 units/hours units and experiment 1 were 144 units/hours. After the experiments for labor productivity done, the calculation of multifactor productivity calculation has been taken place to identify and measure the reflect of the output per units by combining all the inputs. As the result of multifactor productivity for experiment 1 was 1.279 units/RM and experiment 2 was 0.0155 units/RM. But at the same time, due to increase in customer demand on toys and automated assembly toy process introduced, the output range expected to increase 20% and the multifactor productivity have been conducted and the result was 0.0177 units/RM. Not only that, the new material replaced the current material to reduce the cost by 30%. After cost reduction, the multifactor productivity was 2.073 units/RM.

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6.0

CONCLUSION In a conclusion, the objective is to identify all of factor that contributing to productivity. In the experiment student be able to calculate and determine productivity measure. By using the formula student will able to define the plan method to improve the productivity of worker and the productivity will more efficient. Finally, student also can use the formula to plan reduce the at the same time increase the productivity.

7.0

REFERENCE

1. Industrial Engineering In Manufacturing, A module by: Ts. Dr. ROHANA ABDULLAH, CEng (MIMechE)

2. https://www.slideshare.net/Mahendrac48/introduction-to-industrialengineering-and-productivity-prepared-by-mr-chaudhari-mm

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