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Ie Formulas

The document outlines various calculations related to productivity, efficiency, and cost in a manufacturing context. It includes formulas for average time, normal time, efficiency percentages, defect rates, and labor costs. These calculations are essential for assessing operational performance and financial savings in a production environment.
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0% found this document useful (0 votes)
2 views6 pages

Ie Formulas

The document outlines various calculations related to productivity, efficiency, and cost in a manufacturing context. It includes formulas for average time, normal time, efficiency percentages, defect rates, and labor costs. These calculations are essential for assessing operational performance and financial savings in a production environment.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Sum of average

1. Average time (in minute) = ……………………………………… ÷ 60


𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛

2. Normal time = Average cycle time × Rating.

3. SMV =Observe time × Rating + Allowance.

𝑇𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡 ×O𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 𝑆𝑀𝑉


4. Individual OP efficiency = ……………………………………….. ×100
𝑇𝑜𝑡𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑚𝑖𝑛𝑢𝑡𝑒

𝑇𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 × 𝑆𝑀𝑉


5. Efficiency % = ………………………………………………… ×100
𝑇𝑜𝑡𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑚𝑖𝑛𝑢𝑡𝑒 ×𝑇𝑜𝑡𝑎𝑙 𝑚𝑎𝑛𝑝𝑜𝑤𝑒𝑟

𝑇𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑋 𝑆𝑀𝑉


6. Performance = ……………………………………..............……………. X 100
(𝑀𝑎𝑛𝑝𝑜𝑤𝑒𝑟 ×𝑇𝑜𝑡𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑚𝑖𝑛𝑢𝑡𝑒)−𝐿𝑜𝑠𝑠 𝑡𝑖𝑚𝑒

𝐷𝑢𝑟𝑖𝑛𝑔 𝑖𝑛𝑡𝑒𝑟𝑣𝑒𝑛𝑡𝑖𝑜𝑛 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦−𝐵𝑎𝑠𝑒 𝑙𝑖𝑛𝑒 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦


7. Efficiency Improvement = ………………………………………………........………… x 100
𝐵𝑎𝑠𝑒 𝑙𝑖𝑛𝑒 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦

8. Total labor cost saved per line = Extra minute produce × cost per SAM.

60
9. Worker potential production per hour = …………………………
𝐵𝑎𝑠𝑖𝑐 𝑚𝑖𝑛𝑢𝑡𝑒 𝑣𝑎𝑙𝑢𝑒

60
10. Individual worker target per hour = ……. × 𝑊𝑎𝑛𝑡𝑒𝑑 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
𝑆𝑀𝑉

60
11. Line target per hour = ………… ×(𝑀𝑎𝑛𝑝𝑜𝑤𝑒𝑟 ×𝑊𝑎𝑛𝑡𝑒𝑑 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦)
𝑆𝑀𝑉

𝑇𝑜𝑡𝑎𝑙 𝑛𝑜 𝑜𝑓 𝑑𝑒𝑓𝑒𝑐𝑡 𝑢𝑛𝑖𝑡


12. Defect of hundred unit (DHU) = ……………………………… x 100
𝑇𝑜𝑡𝑎𝑙 𝑖𝑛𝑠𝑝𝑒𝑐𝑡𝑖𝑜𝑛 𝑢𝑛𝑖𝑡

𝑇𝑜𝑡𝑎𝑙 𝑛𝑜 𝑜𝑓 𝑑𝑒𝑓𝑒𝑐𝑡 𝑢𝑛𝑖𝑡


13. Defective % = …………………………………… x 100
𝑇𝑜𝑡𝑎𝑙 𝑖𝑛𝑠𝑝𝑒𝑐𝑡𝑖𝑜𝑛 𝑢𝑛𝑖𝑡

𝑇𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡
14. Productivity each person per hour = …………………………………………. x 100
𝑇𝑜𝑡𝑎𝑙 𝑤𝑜𝑟𝑘𝑒𝑟 ×𝑇𝑜𝑡𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑚𝑖𝑛𝑢𝑡𝑒
𝑇𝑜𝑡𝑎𝑙 𝑢𝑛𝑖𝑡𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑏𝑦 𝑡ℎ𝑒 𝑙𝑖𝑛𝑒
15. Machine productivity = ………………..............................………………………..
𝑇𝑜𝑡𝑎𝑙 𝑛𝑜 𝑜𝑓 𝑚𝑎𝑐ℎ𝑖𝑒𝑛 𝑢𝑠𝑒 𝑡𝑜 𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑡ℎ𝑜𝑠𝑒 𝑔𝑎𝑟𝑚𝑒𝑛𝑡𝑠

𝑇𝑜𝑡𝑎𝑙 𝑆𝑀𝑉
16. Basic pitch time = ………………………………
𝑇𝑜𝑡𝑎𝑙 𝑚𝑎𝑛𝑝𝑜𝑤𝑒𝑟

𝐵𝑎𝑠𝑖𝑐 𝑝𝑖𝑡𝑐ℎ 𝑡𝑖𝑚𝑒


17. Upper control limit = …………………………………………
𝑊𝑎𝑛𝑡𝑒𝑑 𝑜𝑟g𝑎𝑛𝑖𝑧𝑎𝑡𝑖𝑜𝑛 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦

18. Lower control limit = (Basic pitch time × 2) – 𝑈𝑝𝑝𝑒𝑟 𝑐𝑜𝑛𝑡𝑟𝑜𝑙 𝑙𝑖𝑚𝑖𝑡

𝑇𝑜𝑡𝑎𝑙 𝑐𝑢𝑡 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 - 𝑇𝑜𝑡𝑎𝑙 𝑠ℎ𝑖𝑝 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦


19. Cut of ship loss % = …………………………………...……..…… ×100
𝑇𝑜𝑡𝑎𝑙 𝑐𝑢𝑡 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦

𝑇𝑜𝑡𝑎𝑙 𝑠ℎ𝑖𝑝𝑝𝑒𝑑 𝑞𝑢𝑎n𝑡𝑖𝑡𝑦


20. Cut of ship ratio = ………………………………………. ×100
𝑇𝑜𝑡𝑎𝑙 𝑐𝑢𝑡 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦

𝑁𝑒𝑤 𝑐𝑢𝑡 𝑡𝑜 𝑠ℎ𝑖𝑝 𝑟𝑎𝑡𝑖𝑜−𝐵𝑎𝑠𝑒 𝑙𝑖𝑛𝑒 𝑟𝑎𝑡𝑖𝑜


21. Cut of ship ratio improvement % = …………………..…………………………..×100
𝐵𝑎𝑠𝑒 𝑙𝑖𝑛𝑒 𝑟𝑎𝑡𝑖𝑜

𝑇𝑜𝑡𝑎𝑙 𝑠ℎ𝑖𝑝 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦


22. Receive to ship ratio = …………........................………………………… ×100
𝑇𝑜𝑡𝑎𝑙 𝑓𝑎𝑏𝑟𝑖𝑐 𝑟𝑒𝑐𝑒𝑖𝑣𝑒 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑜𝑟𝑑𝑒𝑟 (𝑆𝑞.𝑦𝑑𝑠)

23. Total financial saving = Number of extra pieces shipped × Average FOB

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑒𝑥𝑝e𝑛𝑑𝑖𝑡𝑢𝑟𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑓𝑎𝑐𝑡𝑜𝑟𝑦


24. Cost Per Minute (CPM) = …………………………............………………..
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑃𝑟𝑜𝑑𝑢𝑐𝑒 𝑡𝑖𝑚𝑒 (𝑀𝑜𝑛𝑡ℎ𝑙𝑦)

25. Cost of Manufacture (CM) = SMV × CPM

𝑇𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡 ×𝐶𝑀 𝑝𝑒𝑟 𝑔𝑎𝑟𝑚𝑒𝑛𝑡𝑠


26. CM earned per person per hour = ………………….....………………………….
𝑇𝑜𝑡𝑎𝑙 𝑤𝑜𝑟𝑘𝑒𝑟 ×𝑇𝑜𝑡𝑎𝑙 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑚𝑖𝑛𝑢𝑡𝑒

27. Monetary Loss due to cut ship loss in month = (Total number of produced garments
in month × cut to ship loss percentage for a month × Average FOB of the style)

28. Monetary Loss due to cut ship loss in style wise = (Total number of produced
garments in the style × cut to ship loss percentage for a month × Average FOB of the style)

𝑇𝑜𝑡𝑎𝑙 𝑚𝑎𝑛𝑝𝑜𝑤𝑒𝑟
29. Man & machine ratio = ……………………………………
𝑇𝑜𝑡𝑎𝑙 𝑚𝑎𝑐ℎ𝑖𝑛𝑒

𝑇𝑜𝑡𝑎𝑙 𝑛𝑜 𝑜𝑓 𝑎𝑢𝑑𝑖𝑡 𝑓𝑎𝑖𝑙


30. Audit fail % = ………………………………….×100
𝑇𝑜𝑡𝑎𝑙 𝑛𝑜 𝑜𝑓 𝑎𝑢𝑑𝑖𝑡

31. Earned minute = Total production X SAM

𝑇𝑜𝑡𝑎𝑙 ℎ𝑒𝑎𝑑𝑐𝑜𝑢𝑛𝑡−𝑁𝑜 𝑜𝑓 𝑚𝑎𝑐ℎ𝑖𝑛𝑒 𝑜𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑠


32. Factory direct & indirect ratio = …………………………………………………….
𝑇𝑜𝑡𝑎𝑙 𝑛𝑜 𝑜𝑓 𝑜𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑠

𝑇𝑜𝑡𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑦 𝑜𝑓 𝑡ℎ𝑒 𝑙𝑎𝑏𝑜𝑟 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑜𝑛𝑡ℎ


33. Labor cost per minute = ……………........……………………………………….
𝑇𝑜𝑡𝑎𝑙 𝑆𝐴𝑀 𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑏𝑦 𝑡ℎ𝑜𝑠𝑒 𝑙𝑎𝑏𝑜𝑟𝑠 𝑖𝑛 𝑡ℎ𝑎𝑡 𝑚𝑜𝑛𝑡ℎ

𝑁𝑜 𝑜𝑓 𝑚𝑎𝑐ℎ𝑖𝑛𝑒 𝑎𝑠𝑠𝑖𝑔𝑛𝑒𝑑 ×𝐻𝑜𝑢𝑟𝑙𝑦 𝑡𝑎𝑟𝑔𝑒𝑡 𝑞𝑡y


34. Estimated production per hour = …………………………………………………………….
𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒𝑑 𝑛𝑜 𝑜𝑓 𝑚𝑎𝑐ℎ𝑖𝑛𝑒𝑠

𝑇𝑜𝑡𝑎𝑙 𝑚𝑖𝑛𝑢𝑡𝑒 𝑖𝑛 𝑎 𝑠ℎ𝑖𝑓𝑡 ×𝐿𝑖𝑛𝑒 𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦


35. Estimated machine productivity = ………………………………………………………..
𝐺𝑎𝑟𝑚𝑒𝑛𝑡𝑠 𝑆𝑀𝑉

𝑊𝑜𝑟𝑘𝑒𝑟 𝑝𝑜𝑡𝑒𝑛𝑡𝑖𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑃.𝐻 - 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑝𝑐𝑠 𝑃.𝐻


36. Productivity Gap % =
………………….……………..................………………………… ×100
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑝𝑐𝑠 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
1. Standard Pitch Time (S.P.T) = Basic Pitch Time (B.P.T) + Allowances (%)

▪ GSD = (Man power * Work hour) / Target


▪ SMV = Basic time + (Basic time * Allowance)
▪ Basic time = Observed time * Rating
▪ Observed time = Total Cycle time / No of cycle
▪ Rating = (Observed Rating * Standard rating) / Standard rating
▪ Efficiency = (Earn minute * Available minute) * 100
▪ Earn minute = No of Pc’s (Production) * Garments SMV
▪ Available minute = Work hour * Manpower
▪ Organization Efficiency = (Basic pis time / Bottle neck time) * 100
▪ Basic pis time = Total GMT SMV / Total Manpower
▪ UCL = Basic pis time / Organization Efficiency
▪ LCL = 2 * Basic pis time – UCL
▪ Capacity = 60 / Capacity time in minute
▪ Cycle Time = 60 / Team target
▪ Capacity Achievable = Capacity * Balance
▪ Daily output = Work hour / SMV
▪ Factory capacity = (Work hour / SMV) * Total worker * Working day * Efficiency
▪ CPM = (Total over head cost of the month / No of SMV earners * Work minutes)
*Efficiency
▪ Required no of operator = Target daily output / Daily output per operator

Example:
1. Efficiency = Output/Input

= (SMV*Product Quantity) / (Worker*Working Hour*60)

= [(38.50*700) / (60*10*60)]*100
= 74% (Line Efficiency)

Here,
SMV=38.50
Working hour=10
No. of worker=60

2. Target/hour = (60/SMV)*Efficiency%

= (60/0.85)*70%

= 50 pcs/hour

Here,
SMV=0.85
Efficiency=70%

3. Target/line = [(No of worker*working hour*60)/SMV]*Efficiency%

= [(75*10*60)/23.5]*60%

= 1150 pcs

Here,
No of workers=75
Working hours=10
SMV=23.5
Efficiency=60%

4. Required days for the schedule = Total order quantity/Average target

= 50000/2000

=25

Here,
Average target=2000
Order quantity=50000

5. CM of garments= (Total Production)/(no of worker*work hour)

= 250000/(1500*10)

=1.66 BDT

Here,
Total Production=250000
No of workers= 1500
6. Factory capacity = [(Work hour*total workers*working day*60)/SMV]*Efficiency

= [(10*1500*26*60)/14.13]*55%

= 828025 pcs/month

7. Line GSD/day = (Manpower*work hour)/target

= (50*10*60)/900

= 33

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