Lean System and Innovation Revision | SPOM SET B SCPM & CA Final IBS | CA Silky Agarwal AIR1CA

Hello everyone Radhe-Radhe. So today we lean Revising the System and Innovation chapter Are going. This chapter is not enough Interested and has a lot of good things in it. The techniques have been explained to you. So enough Very good chapter from learning perspective Is. It is also stated that this The chapter is divided into two parts. What? One, its first part is lean Systems in which we mean lean systems We will understand and our six related to this There are techniques, we will understand them. and its A small part described as a second part Process innovation is what we're talking about. You will have to read a little bit and this chapter Ours will be completed successfully. So we Let us read its first part first. What is? Lean systems. So lean system What does it mean? that during the production or during the product when we If you manufacture, then whatever happens during that time To minimize the waste generated What do we call it? Lean systems. So lean What is the main aspect of the system that is waste We have to minimize whatever it is. When? During the production process. Whenever we have any By producing our product Production is underway or If we manufacture then whatever our waste To minimize what is being generated, we What do you say? Lean systems. So this is what There are all these techniques too, right? Will it remain? To minimize waste. Because the techniques of the lean system are These. So what are its characteristics? Has it been told? Zero is mentioned first. Waiting time. What about zero waiting time? it means? What is that suppose? First What was traditionally going on was that whatever you have Look, you have three departments. Department A, Department B and Department C. Ok? So, Department A Whatever I am doing, work is going on. Ok? Production is taking place in Department A. Now the labour of Department A, It is quite slow. So if there is slow labor then that It is working slowly. because of which What has Department B had to do? Wet Had to do it. Because Department A's Only when the work is done, the department will do it. Will get it. Because what are all these? relate to the fact that a department The work was done by another department. Will send. Then the other department does its work. He will do it and send it to the third department. Then ultimately your finished goods will be It will be ready. So the department is the same Labor is slow. She is working slowly Is. What does Department B have to do because of this? Do you have to do it? have to wait Because Department B also has a date If the product is delayed then What does Department C have to do now? If you have to wait then your What traditionally happened was the waiting time. But now when you use this lean system If you do it then this technique is cellular Manufacturing, so what happens in it? Cellular manufacturing will be discussed in detail later. I will read it, I will give you a brief. what happens is that now you Don't you do it department wise? What you do is make a U-shaped cell and All the departments are there at once because of which your Waiting time becomes zero. So lean What is the first characteristic of the system? Zero waiting time. Then comes the next Zero inventory. Why have zero inventory? Because we have to study these techniques. You will find that in this you will know that in this When is the production? As the demand Production happens as it comes. Meaning These bridges use processing that As the demand increases, so will the Do production. And when to make the purchase? When You can get raw material only if you want to produce. Make a purchase. Meaning, if there is demand, then production Have to do it. and production has to be done whenever When will you start production? When the demand arises and What will you do then? Raw Material Purchase Will you do it? Before that neither you nor the raw material Will you purchase some finished goods? You will make it. So the inventory became zero. Raw For materials as well as for finished goods Too. That's why it is written zero inventory. and bridges What is processing? who just said that Production as per demand and when production is required then only RAW Purchasing the material. We call this Bridge processing. Then Continuous in this There is a flow of production. Continuous Production continues. Continuously Finding Way of Reducing Process Time. What does it mean to suppose you first You used to say that your supplier was RAW. He used to sell material. You first give it raw material They used to take it to the warehouse and from the warehouse Then he would send it to his factory. Whom? Raw To the material. Where did you send the raw material? Used to send it to his factory. where the factory Meaning of where the actual production takes place There will be what you can also call the production floor. yes. So what did this achieve? Your double Transportation was required. One here Your transportation is set and one here. Your transportation has been arranged. So now you What are you doing? to a double transportation What are you doing to avoid it? You are telling the supplier that you buy it directly from me. Where should I send the raw material to the factory? So What will happen with this? Continuously looking for ways You are trying to reduce your process time. This will also reduce your wasted time. It was taking time here too. Time here too seemed to. Suppose my warehouse is far away and Transporting raw materials from the warehouse to the factory It takes 1 hour. So this is useless Why invest time and cost? Because freight There will be expenses for etc. also. trucks and so on When the goods arrive, that too will be an expense. So this Why does everyone have to incur cost and time? so Finish this. Call the direct supplier That you send the raw material to the factory. Because actually the production should be there only. Used to be. So what does it do? The process continuously finds these ways To reduce time. So how do you do this Will you remember? You must remember this. C2PZ2 C2PZ2 You should make a memorial for this. To you This will be easily remembered Characteristics. Now next in this Benefits explained that lean system or lean By using manufacturing What are the benefits? So one of your So the quality improves. Because You see, I am constantly looking for ways to You will stay. You continuously put your mind to it You will stay. So what are you doing slowly? You will bring quality and your defects will be removed. It will keep decreasing. Inventory decreases Is. Why? Because you are no longer that person. Are you making it and throwing it away, or are you? Production is done and is lying around Inventory. Your form is present in it. No. When are you doing production? When You are getting demand. So inventory So you don't have anything. Neither Raw Neither of the material nor of the finished goods. So in this What becomes of inventory? Be Reduced She goes. In this, reduce said eliminate Why didn't you say anything? Because when you are in a You will study technique, costing and then You will find that it is not at all the case that we Keep traveling. Some negligible stocks we Maintain it. Hence inventory reduction it occurs. It does not get eliminated. These Overall manufacturing flexibility. How does overall flexibility come about? So Look what you do? Edge on Demand Are you getting the production done, that means when you Bola customer has Rick customer's When the requirement came for 1000 units, then If the company is producing then it may be Customer wants to customize the order Tell me what you want to customize. I wonder what you'll make for my next T-shirt. Ho suppose there is a T-shirt factory then you When you make a T-shirt, put my company name on it. What happens overall to give Flexibility comes that as per customer wants to do it the way you can in production Ho changez while you first when together in the lot If you used to make it and throw it away, then you would not do anything like that. You could have done it, then what is the benefit in it? It happens that firstly there is a safe work environment Creativity happens and employee morale improves It gets boosted. Why did he say that when If you read the five techniques then you will understand this. Will come. Then you will be able to easily relate to it. It has a systematic arrangement Maintaining discipline etc. So from this What happens? A safe and work environment It remains maintained. equipment and so on when you If you read the TPM, you will know that you are right Do the maintenance properly. So the employee who Their morale also gets boosted. she is good Can also work in a similar way. and a safety The environment remains completely prepared And the work life balance of the employee is maintained. remains. Then what issues are mentioned? Are? What does the issue tell us? Productivity will be low. These Why would productivity be low? Because Look what I told you, we're on the bridge Use processing. means like Production is being done as per the demand. Have been. So it's not always the case that we I will continue producing. always our Demand for passes will keep coming. Yes Continuous There will be a flow of production. It could be on Sometimes I mean, let's assume that sometime we A lot of orders came in. There is a lot of demand Went. If any time comes less then our Productivity is not constant. Productivity will sometimes be high and sometimes Mostly it will be less. means when you You will produce it, maybe you actually You are not able to produce what you have. as much as There is demand but you are not able to produce that much. Because you are not producing daily. yes. Sometimes you do, sometimes you don't yes. So, if you are doing any work continuously If you are not doing it then your productivity What will happen? It will reduce. look like home If you do not sleep daily in the afternoon If you are staying then it is fine. If you are in the afternoon If you start sleeping during the day, you will feel like sleeping daily. Will do. It means the same thing in a way. Prog What cycle time says is that if you daily You will not produce daily or that much The continuous production that is in the daily It will remain but will not produce that much quantity If you do as much as you should normally, then your What will happen? Cycle time will also increase. Because you are not used to it and you suddenly If you do this, you will also get more cycle time. It will take. What does this mean for the organization? Is? Costly lives. Because look at this All the techniques, whatever you have If you study the techniques now, you will have to apply them so much It is not easy. You have enough for these Substantial investment has to be made. So it is costly for the organization. The third address is Rampant Wasteland. what about This means that sometimes some such wastage It could be something that's completely out of control Go. Let's assume you want to eat a product. You make it and you add such ingredients in it Two that spoil the whole lot. of the whole By spoiling the entire slot that has been made Keep it. So what happened? such a waste Hoagie is out of control. Complete production That day was ruined. Then Distaffed customer employee can be more Look what I said in this. Productivity will remain because the employee is Daily Dailys are not working and Dailys Even if they are doing it, they are not doing it that much. How much demand we have in a day If the supposition is too much then because of this the employee What might one have to do? Sometimes customers also work overtime to fulfill orders may have to. So because of this, customers and Our employees will get angry. Customer Why would you get angry if you just accept it? Even after working overtime, you still serve the customer. Could not satisfy the requirement. 1200 There was a unit requirement and you just Only 1000 units could be made and what about the employees You will realize that brother, we tried so hard and overtime and we have to do it Employee share in case of overtime If you go, your customers and your employees will What will happen, you will become dissatisfied then See who the major stake holders are. Major stakeholder in any organization what will be the first customers of because Nowadays the market is completely customer is oriented and what are we doing all these things for Achieving customer satisfaction To achieve and minimize waste If you do this then the customers will get angry. What are our major stake holders? employees because actually Only employees are working in production Isn't it? Whether you are in the office or Take a look during production. in actual The employees are the ones who do the production. So we are doing it. So who is the major stake holder? Done? Why Employees and Organizations Hui? Because she is the one who is applying the technique. If the organization itself is not the techniques etc. If she does not apply it in new ways, How it will happen? So major stakeholder lean Who is in the system? CEO. You remember this Take. CEO, Customer, Employees and Organization. Ok? Now I have in What is? Some techniques have been explained. Some six techniques are described in this lean of the system. Now what do we do one by one? Are? Discussing these six techniques and your first part is It will be completed successfully. So this was it The meaning of the complete link system, its We have seen all its benefits and issues. So let's now study our first technique. Let's start with what we call just In time. Usefully it is called JIT. So What is GIT? of an idea collection which is part of the production process Helps in smoothing the skin. How else Will you help? Drive out all the waste From doing to process. So I What did you say about how GIT will help? a collection of ideas that can be used to produce Helps smoothen the process. And how does it help that whatever There is waste that needs to be removed from the process It helps me. means to eliminate It helps me. This way GIT will save your It helps. So GIT is what it is Basically it works on pull system. Meaning Production as per demand And when production is to be done then only RAW Purchasing the material. So basically in this Three steps are involved. What all? What happens in GIT? Three Our steps are involved. To all It happens first in First of all, GIT purchase comes in this. What does purchase mean? that when you You can get raw material only if you want to produce. Make a purchase. When do you purchase raw materials? Will you do it? When you have to produce. Correct Is? So what did Purchase put on it? Production Pay. What is the production saying now? The production is saying that when will the production do? When customer's requirement comes. When the customer demands something or what? Requirement. customer demand or Requirements came. Then what do you have to do? Have to do production. So what is GIT Purchase? It tells you when you purchase the raw material. Will you do it? When production has to be done. and git What does the production say? that production you When will you do it? What do you have to do when? When customer demand or customer Before or after the requirement You don't have to do any production. Now Thirdly, there is a new add-on in it, what is that? Is? GIT support. What does this say that You need to use GIT on Purchase or Production basis. What do you have to do? alteration Will be. In which? In the accounting system. Who They have supporting accounting systems Changes will have to be made. like back flushing etc. Whatever happens, we will discuss it in detail later. You will understand when you do it. So basically This is not that important. this is It is very, very important. What is Mostant? GIT Purchase or Production. So what is GIT Purchase? That When will you purchase? When not producing will be. When will you do production? when you have Customer demand or actual demand Is. This is the actual customer's requirement Come. Ok? Actual Sales Demand Stays on the basis. So when to make the purchase? Material when required for production. And when will you produce finished goods? When There should be demand for actual sales. See whenever You are attempting GIT question Always keep one thing in your mind That at any time GIT purchase may be written or There must be some discussion about the purchase, right? So there will always be consideration of the material. Meaning There is talk about the material. So Who does GIT Purchase refer directly to? Is? To the material. But GIT production If he comes somewhere, then to whom does he refer directly? doing? to Finish Goods. whenever you If you ask questions about GIT, you will always be interested in your Have to keep it in mind only. First of all you You will have to identify that GIT purchase Is it a question of GIT production? Purchase means talking about raw material It will happen and if it is about production then it means The matter will be related to the finished good and Calculation has to be done accordingly. Now look at this GIT purchases or production support. Which is actually the GIT system. How does the bridge system work? Its For this I have given an example. For him Understand carefully. So what I said is that AS Limited is a company registered under GIT If she wants to implement it, how will she do it? Understand that it will do so, first of all see this Only when the customer's requirement comes will you If you want to do production then company one is your company If so, then customer requirements are the most important. Who will come to the sales department first? One came to the sales department. Order What order did he receive 1000 The customer of the units is saying that he Need 1000 units Your AS Limited Any products of the company that you manufacture What did the sales department do about it now? Told the packing department that you give me Give 1010 units. Why did he say 1010 10? Because he knows about his company. and he said maybe 810 units Will become defective. So we tell the customer Will always sell defect free units. only then Then you will get customer satisfaction. So he What did he do instead of 1000 units? spoke? What should you do with 1010 units? Told the packing department to pack me Do it and send 1010 units. then packing Assembly and Finishing Department Told the department that he communicated Get it done. what did you say? that you give me 1040 units Two. means sales to the packing department How many units does the department have to provide? 1010. But how much was he taking from the assembly? Is? 1040 because there may be some It may become defective. Then what did the assembly do? spoke? Told the preparatory that I need 1040 Approximately 5.5 to make the unit Kg. Need material. He estimated Get it done. So basically with the change department The order came for 1000 units. its basis Pay Respective Department Asserted Curry. How much quantity do they need? How much material is needed? So in the last Demand came to the Preparatory Department That 5.5 kg. Need material. So when here Till now our situation was Sales Department So this is the work of the preparatory department what was going on? It was a GIT production. Meaning, as the demand increases, so does To produce. So 1000 units There was demand and on that basis they How much did you want to produce? He said that 5.5 kg for 1000 units. material Needed So this is GIT production. What is the Preparatory Department now? Purchases Will tell the department whether you provide the material Purchase how much? 5 1/2 kg. So what is this Is JIT purchase done? that when the production Based on the amount of production to be done What is? Purchasing raw materials. So purchase What have I been up to? Material is purchase only When Required for Production. when as much as The production requirement was 5.5 kg. Purchase only that much material. It is not that Make it 10.5 kg. Ok? make and throw Yes, it will be useful or do only 4, it will be less. What happened too? No, neither more nor less Always as much as the demand allows. So this It works on GIT pull system. Complete. So what did he do? Last Purchase Department Preparatory Department If you tell the purchase department then it will be yours. What will it be called? GIT Purchase. like this GIT works as it is. Using GIT If the system is installed in the company then in this way The work gets done. So, for this reason it is said that Whatever are the techniques of lean system, these All of them are quite costly. So look at it How costly all this is. So now What are the features of GIT? These He is saying that create urgency for Eliminating defects. What does it do? Great help in eliminating defects Does. How? Look, you understand right here. that the sales department did the packing What did you say to the department? 1010 units of I have said for it. Whereas in actual demand How much? Of 1000 units. He sold 10 units Why was the margin kept at Rs. because he said It is possible that the 810 unit may be defective Go. So the clear ones get eliminated Defects right there. How to get eliminated You will now know that whatever you give to the customer If you sell defect free units then customers If satisfaction increases then your demand Will increase. Your quality will increase and your Profit will keep increasing. So What does it create? in helping Helps eliminate defects Is. Material Handling and Holding Cost It gets reduced. handle the material cost of repair or protect materials The cost of doing it gets reduced Is. Why? Why? Now you have to buy the material Do not keep it stored in your factory What are you doing. No material in the warehouse. You don't have to keep the material. You will get material When will you make the purchase and when will you produce? will be. So you don't need to keep or store any All this cost does not come to you. all this It gets reduced. The company responds to customer demand faster. What does the company do? As the demand increases She produces as she has been doing. So The company depends on the demand of the customer which is more Can focus. respond more quickly Can. and reduce labor idle time It happens. Because the labor is not free She will remain seated. It does not mean that Labour The production is done and she will sit idle. Labor When will it work? When the demand comes. If work When there is no demand, there is labor at that time. It may get spread to another plant. It is possible Let us utilize them somewhere else. So Labour The time spent sitting idle should also be reduced. goes. What are essential prerequisites? Is? Meaning if you want to implement GIT If yes, then you should have these basic things. Needed What all happens? Low variety of Goods. Look, they said variety, not quality. What does it mean that there is no wide range? Is. Meaning the customer, the company, the product It is not that there are many ways in it. Manufactures products of. Vo Limited Can make products. That's why that customer Whatever the demand is, satisfy it immediately. Will get it. So the range is less. But the quality is always top notch. Nano Supplier Base for Sound Reliable Trade What does relation mean? that the supplier is No, I mean you can assume that it is the same raw material. You need it. So what do you do with 10? One What will happen if you take it from there? with the supplier Your relationships will develop. after this What has been said? Pre-Effective Infection System. What did Efficient Infusion System say? You will find out when you read further. The system is that if you have to go to the department Wise from each other if ination dis flow karni Let's say the sales department Packing is to be spoken Packing is to be spoken from assembly So you install a proper irrigation system and Efficient information system like Khanban There are other systems as well Implement predictable demand Patterns Are Predictable Demand Patterns are Varying Demand Patterns are not predictable because you You already know that you need 1000 units Your sales order has already arrived 1000 units so how is your focus 1000 units is predictable for you. You don't have to make it and then throw it away. Send as per the demand. Will give. No, it is predictable and as much You produce it. Total Quality There is management. Defect free material Should be. Preventive Maintenance of Machine should be properly maintained so that Whatever you suffer due to production losses Any production losses due to the defect All those who are left should be eliminated. There should be a multiskilled labour force that Meaning, suppose tomorrow a big order comes If you have to work overtime, be ready. Meaning My labour should be multi-skilled Needed What happens to you like this? Essential Prereqvisit. If you get this If you want to remember, you can do it like this. LN E PT PM L NE PTD PM By doing you What can you do? Essential Prerequisites You can do it. Why remember? Why is this necessary? Because you already have one or two of them on top of it. MCQs remain. So try to To remember this. Then the next one is mentioned That is if you want to implement GIT Before that, you have to take this action plan. Will fall. Key factors in mind Will have to keep it. What all? that manufacture Whatever it is, it should be insured that its There should be a close link with the supplier. Close Link What does it mean? Look, the supplier said that I am on 23rd April 10th July 23rd April 10:00 am I have what it takes to get raw material. If you want, all the main suppliers are ready. are. Meaning the manufacturer said that If I get Raw on 23rd April or 10th July If material is needed, the supplier should be ready Needed Suppliers can sell immediately. Meaning The supplier should agree to this. So When will this happen with the supplier? When your close There will be links. Because look why this is important Is? Because as the demand comes to you By the way, you are going to produce. So You will get raw material only when you produce. Will you purchase it? So suppose tonight I have If an order comes, I have to produce overnight. Have to do it. So my supplier should be ready. That brother, we will sell it whenever you say. We don't have any problem. So the supplier When will he do this? When you are close with him There will be links. Close Link With The Supplier. Now What do you do that you are? Frequently You won't keep calling the supplier. Today's Who does calling etc. in this era? Any does not. So you should install such a system. Install such a system that the supplier You should automatically realize that you have so many The material requirement is that you just have to be entered and the supplier will receive it immediately It should just blink. Like in Saif et al. It happens. This is what big companies etc. use. They do. Then what is a supplier? They Interested in making frequent deliveries. It does not mean that he says, friend, I You need me again after sending it yesterday. I won't keep charging my rent like this. They should not do this, what should they do, small lot Whenever we need it, we need it in small lots. So send in small lots and on a regular basis If you want it then it should be on a regular basis. Willing to make frequent deliveries should be or what should the supplier do Where to send direct delivery What will this do to us on the production floor? Process time will be reduced and our Transportation will be reduced and or Then we can do something even better than this. All we can do is engineering Our staff, our company's staff There is engineering staff, among them we have our own Send one of the team members ahead of time to You should check the raw material of the first supplier. That there is nothing defective in it. If anyone is defective then all our Units etc. will get damaged. So the raw material Charge the inspection cost on it. already What should you do? Get it checked and see. So you How will you remember this? Remember by doing DEFS Take. What does DEFS do with this supplier? Should it be? There should be a close link. Inst Install it. Frequent like this Delivery should be done. Delivery Directly Whatever happens should be done on the production floor itself. Directly sent to the production floor for Immediate youth. and engineering staff Check it out beforehand. This action plan You should develop yours. Now look at your Whoever has read all this here till now What was it? It was a theoretical concept. Alldo Ye is equally important for you because MCQs in both theory and practical It has almost the same weightage. But now you As you read this part further, you will see about saving etc. All practical expectations will begin. Meaning the question you have to solve He will help with that. So now understand that when you What savings will you invest in GIT? It is going to happen at these costs. Savings Due To git and cost extra to you What all can come because of GIT? Now it is important for you to understand. Now look at GIT What will happen if you apply it? Your holding ware Reduce housing and storage costs It will happen. What is meant by holding cost? that you are buying raw materials or finished goods etc. I used to hold it as if I was holding it Okay, if you make it and throw it away then it is your working It used to get blocked in the capital. Your Rupa would have been held in it, so that There will be one less because now you can make something. We are not throwing it away, we will produce it when the demand comes. If you do this then only if you purchase the raw material then your Holding cost completely saved. Ware How can you save on housing costs? If you are not maintaining it then you will have to pay warehousing charges. I don't need it. Meaning you need a warehouse What is the work? When a warehouse is needed When you make the product and keep it in it Go. Your coverage will be ready when the demand arises. And if you purchase the raw material only then it will be ware The cost of the house will also be completely saved. Beans Storage cost saves your entire space Will be done. So the cost of rent etc. is also yours. Will not come. The second one said that insurance Your cost will be reduced. See What used to happen when the materials and finishes goods etc. when you used the push system So what you used to do was that that material finish Getting your goods insured It was expected that there would be a big loss in the stock tomorrow. Is it gone or let's assume that rats got there or Then the fire started, if anything happened to me Some particular amount of insurance to me May I get it. So you get insurance Were. But now your material or finished goods Nothing will happen because you are just like When demand comes, you will produce it directly. If it goes to the customer then it will go to you. If there is nothing left then insurance is the reason The cost will also be completely saved. Third carrying What is meant by carrying cost? material holding cost material handling Cost Sorry and Opportunate Cost of the Funds Blocked Inventory Material Handling What does cost mean to material? Let us assume that the cost of protection is Your material is highly chemicalized, isn't it? If it was chemical then you would have enough for it. Had to have one supervisor or a separate one? So you had to keep the machine to process the material. Whatever is dangerous, something bad should not happen to anyone. This kind of cost should not be harmful to If you have to keep it, all this will be saved and Opportunity Cost of the Funds Blocked What does inventory mean when you finish Goods or raw materials used to purchase raw materials Or if you made finished goods then your money would Working capital used to get blocked there. You used to get blocked but now something like this Now you are not taking anything as before If you are not keeping anything else then your The money used to be blocked there, now it is blocked here. What will happen, your money will be saved Now that money will go, you may be somewhere And you can earn returns by investing. Or you can launch a new product from it. Go ahead and set up a new factory. In that way, that money You can use it. So Opportunity Cost of the Funds Blocked Inventory. Funds that will be blocked in inventory What is your opportunity cost? Will you go? It will be saved. So what to save will be? Holding warehousing, storage cost, carrying cost and insurance cost. Carrying cost includes material handled cost. And Opportunity Cost is all your savings. Will go. But it is not just about saving Will happen. There will be an extra cost to you as well. Because of GIT. What will the cost be now? Understand that she is going to be there. You need to give the supplier Extra payment will have to be made. to the supplier Why do I have to pay extra? because look when you're saying whenever Supplier is sending data when raw material I am sending it to you, you said you would close it. with your supplier so they ship on time If he is doing frequent delivery then When the supplier is doing everything according to you So they charge you some extra amount. The person who will do the course is a relative of yours. No, even if he is a relative, he will take it. Because the supplier is doing everything for you. Secondly, what will be the overtime cost? Assume that the customer company has a large The order has arrived and you have customer demand. You have to fulfill it and whenever you produce You will do it whenever you produce it If required, there may be overtime. Overtime costs if workers have to It will come. Then the ordering cost. Ordering Although the cost is very small, It is negligible. But what will happen in it? Your ordering cost will increase. Why? What will happen to you? Multiple Time If orders are placed, then multiple times which is POS Will be made. So this ordering cost is Will go. Then stock out cost. What does it mean What happens is that suppose you have Rs 1000 There was demand for the units. Ok? But now The capacity of your company is just 900 units were to be made. means 1000 There was demand for the units. Only You 900 Could create units. So the 100 units that remained What will you do with this? It is not like that You will disappoint the customer by saying sorry, we So I could only make 900. No, what will you do? You will go to your competition. what you Will you do it? You will go to your competition and You will tell him to give us 100 units. And we will be able to give whatever we have to our customers. So The competition is not that good. What will Compete expect from you? Extra Will it charge, is it okay? We will give you 100 units. Will give. You give us extra in return. We also want commission. So this stock is out The cost has been incurred. Because your company There was no capacity. This is why stock is out You are gone. And what happened because of this? You market Had to spend extra cost. So what has happened to us? The cost has come Because of GIT. Contribution Loss Due Two stock outs. Suppose take the above example Let us assume that 1000 units were to be made. You Only 900 units were made. So the 100 The competitor said he had units left. Not even there. So what about 100 units? Went? You told the customer that brother, this is not it. Will be able to become. We only have 900 capacity Is. We made that much. You should be happy with these. So what is a customer? For your 100 units The customers will be ruined. Meaning There will be contribution loss. Which is 100 He could earn contribution of units Contribution loss will be due to stock Out. So what happened? The cost has come Because of GIT. So extra payment The supplier had to do it. overtime cost Went. Ordering cost arrived and stock out The cost has come and your contribution loss is due. Two stock out here it is. But some of it Special points have been given. what-what that Whenever you have savings or holdings Insurance and carrying costs whenever you You will always calculate on average inventory It will be calculated. Always calculate on what Will it happen? Average Inventory Pay. what does this mean Is that what you have? Always average Inventory will have to be calculated. Now look I told you this in the beginning. That whenever we talk about purchase, it means Talking about the material and the production Meaning we are talking about finished goods. Correct Is? So what do I do now? Average Inventory has to be taken out. So for JIT purchases In case I mean in case of raw material How do I calculate average inventory? Order Size or EOQ up to 2. But JIT Production means finished goods I will calculate the average inventory as follows Opening stock plus closing stock Divided by two. Now this is what I purchased I told you EOQ, how is it calculated? These It comes out 2ao / cooa / c and this is your aa will go e0q. Now what does a mean? Annual consumption of material. Meaning of O Order on ordering cost. Ordering Cost What does coming and carrying cost per unit mean? C means carrying cost per unit per annum Yours will come. So this was a special point. Now One more point has been given in this that Let's assume there is some labour. Ok? GIT It is a case of production, which means it is a case of finish. And the labour there is working overtime. Is. So how do you calculate overtime costs? Will you take it out? If any labor incremental or If she is doing extra overtime then overtime How will we calculate the cost? So give it two Things happen. Now understand this. Look, there is a labourer and she is working overtime or Incremental Arts Bol De Overtime Bol De If the same thing happens then in such a case overtime is required. What will be the cost? What will be the overtime cost? Now two things happen in this also if your Minimum contracted hours is if you have a There is an agreement with the labour that you are there, right? I will send you daily for one hour. I will give you this much money if you do this minimum In such a case, if the hours are contracted What are the wages if she is working overtime? overtime wages plus overtime What premium do we pay in such a case? Will overtime wages plus overtime Premium will become its total wages. But if there is no minimum contracted hour No, I mean, every hour I've finalized something. I have not done it. As much work as it takes Payment has to be made accordingly. So as much as You have to pay only that much overtime that you have done. Meaning you only have to pay overtime premium Is. If there are minimum contracted hours Overtime wages plus overtime premium. But if there is nothing like that then only Overtime Overtime Premiums Pay You Is. So it is written in it that if Overtime if there are minimum contracted hours Wages plus overtime premium. otherwise Only overtime premium. Ok? Now in this One of the most important things is that How will you solve the question? which method Take it? So look, this simple thing is said in it It has happened that if the question of GIT purchase It means we are talking about raw material, raw Talking about material, if GIT If there is a question of purchase then always use the total method Applying Total Cost under GIT and Total Cost under current system and then compare it Do it but if JIT production The question is what should you put incrementally? Method means how much extra cost is coming And how much extra savings are you getting? If you want to put it on, you can remove it this way. Look, now the fourth point that we have is meaningful. Have you discussed saving and cost due? To get this complete financial perspective But whenever we implement GIT Will only financially benefit us Financial perspective should also be seen. So what is non-financial prospective? Let's say that by implementing your GIT If GIT system is installed, will you Has business efficiency increased? Efficiency if If it increases then it is right to implement GIT. Otherwise it is not. So efficiency you How will you calculate? Look at the efficiency and Effectiveness always comes in percentages. So the efficiency we are calculating here Are. What we call manufacturing Processing or Production Cycle Efficiency. Usually it is manufactured This is called efficiency. and MCE is Let's say. What do you say? MCE. Now How will you calculate this? What should you do? Take your value-added time. Value Added What does time mean? Processing Time During the production of yours truly Processing time depends on the raw material Anything that is used in converting finished goods What is your processing time? Processing time. Value-added time that I actually came. Then non-value added What does time mean? non value added Time means inspection storage Waiting Moving. that the raw material you Got it inspected which took your time That inspection time is not non-value added. Is. This does not affect the quality of the product The effect is not coming. as well as storage raw There is material. You can store the finished goods had been. So the time it takes is yours. It is useless. Waiting time you have is raw The material was not processed properly. Department A gave the time. Then Went to Department B as useless If there is waiting then that is non value added time and moving time from one place to another, say Let's get the raw material from the supplier. We first ware Ordered at home from warehouse and then factory Pay or on the production floor. So double what you have What is it that took time? non value added Time. What can be done by reducing it? Can it? Can be saved. And us What is the plan? Waste has to be minimized. So the only way to minimize waste Production units do not minimize waste It would have been. It's time for production. Cost is All these units are gone or have they become waste? It's called minimization. Ok? So non What happened to value added time? In this Action, Storage, Waiting, Moving, and Value Added time means processing time. when these If you add both of them together, what will it become? Will you go? Total Cycle Time. TCD Your Bun Will go. So the manufacturing cycle How will you find the efficiency? Value Added Divide the time by giving non-value added Time. Give the value added time divide. From manufacturing time. And because Efficiency is always in percentage. So Multiply it by 100. what about you Will you go? Yours sincerely, MCE Manufacturing Efficiency will come. What is the total cycle time? It happens? Value Added Time Plus Non Value-added time. This is how you remove You can. Then what decision will you take? If If the business is done by applying GIT of the business Efficiency increased, if efficiency If it increases then you will have to shift to GIT. Should be. It should not happen otherwise. This You will take the decision in this way. Now one thing about this Tell me more. TA KT time talk time what is this It happens? What this says is that the average To create a unit How much time does it take on average? Average Net time available to produce one unit. Average net time to produce one unit How much is available? We call it Tak Time. What does discus mean? You How will you calculate it? You calculate it. Net time available for production and disc Divide by. Total Quantity to be Produced. Ok? Net Time Available What does for production mean? that total How much time do you have for production? It is available, take it. lace it up Down time. What does down time mean? That Is it time to clean the machine? Shutdown The machine stopped. his time or lubricating and so on. Anything that's useless When it is time, lace them up. So total Down time from available time Lace it up. You have net time available for Production will come. and divide the total Quantity to be produced. So you from him If you divide it, yours will be one unit. How much time is available to build the unit? Yes, he will come to you. We call this It's talk time. Then comes the flashback. Accounting. Look back flash accounting what It happens? Basically link this and you are complete From GIT support. You can easily understand Will go. See Understanding Backflash Accounting. What is useful? If you don't GIT What happens if you keep walking assuming that you Like you did a production today. Ok? What did you do? Produced. you him Will you record it? Then there will be WIP. Then You will record that too. Then your Finished goods are made, you record them. Will you do it? Ok? And such a bicycle which is daily It will continue. The bicycle that I ride daily Will remain. Now that back in GIT, use GIT If you do, what is backflush accounting? Is? Now understand that. what is backflush accounting It says that you buy from a supplier daily. Are you taking raw material or 10 a day? You are taking raw material again and again. Ok? Yours What is? He is having frequent transactions Is. So how long do you record it again and again? Will you do it? This will save your time and cost as well. It will be a hassle and there will be unnecessary arguments too. Again and again he sends you multiple POS. Send. You then send the sales order. This Keep customers running multiple ways If you send a sales order, this way it is enough. There will be a lot of headache. So backflush accounting What does it say that instead of doing it daily? What do you do month end pay month end pay when When your production is complete, Make the accounting entry. means consolidated Make an entry. What does it mean, let's assume 1 It is a month from 10 to 30. Ok? 1st date From 1st to 30th of the month. Ok? Suppose we are talking about April. So what are you do it? No entry from 1st to 29th do it. When do you enter? Do it on the 30th. month And you enter. Consolidated Entry do it. Do it daily, not daily, but consolidated. Make entries that will cost you time or more. Everything you have will be saved. So this What do you say? Backflash Accounting. It Helps in implementing GIT system By Reducing the Number of Counting Entries By Did Recordings. What will happen with this? Yours Both time and cost will be saved. But back flash good to hear from you You must be thinking wow, how good is accounting. The work reduced. First lot of work in CA Get it done. I will not get it done now. something like that Not there. Whatever work is done in CA Let's make it relevant. Now what about this Understand that there will be problems. Now this is what I have Understanding what the heading says about backflushing What problems will we have by doing this? Which we should correct. Correct Why should it be done? Because it makes a difference In which will it come? in accounting records and In Actual Inventory. Look what it it means? that you actually did something You have the inventory lying with you. Ok? What is the meaning of actual inventory? That you produced. Your Finish Goods It's ready. You have kept it. Look at this, this Your finished goods are ready. Ok? 100 of units. But the inventory records, inventory records what are they saying that you made Only 80 units. Ok? of inventory Records are saying you have 80 units It has been made and is actually lying with you. 100 units. So what is happening? come the gap Used to be. There is a gap of 20 units that In the inventory it is telling that you are 80 You are just making a unit. Whereas in actuality 100 are left. So it is not the case that You have done the advance work. What does it mean what happens because of this A lot of problems get created. Because we maintain inventory records When are you doing it? 30th at the end of the month Which is on the 30th day of the month that we But we have worked. On that we actually I have recorded it. So whatever is in the middle There have been problems, whatever happened We could not record those. Now What are the problems caused by back flexion? Look at that. Four ways your There is a problem. What all? First of all There is production reporting. Production What happens in reporting is that production The staff should enter their figures correctly. does not. What happens because of this? There is a problem with production reporting. Is. As happened in this case, the inventory What the record says is that you have 80 Units were created. Whereas in actual 100 The units are ready. Even then those units There is a scam coming. Because the production There is staff who is doing the production. He did not make the entry properly. So Because of this, what is the consolidated entry also? Is it done? It got spoiled. So the records are Cannot be tracked. scrap Reporting. Now scrap reporting which is Cannot be tracked. Scrap Reporting How is it not tracked? Understand that from one It was the 30th month. Suppose 1 2 3 4 5 and so on Your journey is going on and the 30th day has arrived. So first Day when you produced 10 for you Units made defective. Ok? 10 The units were defective. seconds as your value Let's say 12 units were defective. Just like that 15 units were defective on the third day and so It was running on. But when did you produce When did you record it? Did it on the 30th day. And Whatever abnormal loss you will incur that day I did that particular track. You have done this daily These defects were being created daily, didn't you? Didn't track it because you only recorded it. Didn't do it. You were very busy. You used to enter only month end pay. So you should not track this because of which You can see this daily, why is this happening? Yes, and you can do less. You saw this Not at all. What happened to the company? So what you I recorded the 30th day and accepted it. You did not have any defects that day. So this What happens? Abnormal loss, which is it? These abnormal losses are tracked in this It cannot happen. Now look at 10 units here It's 12 here it's 15 and so on If this had continued, how long would our last day have been? There is a defect. then a serious problem would arise What we can't track is back flushing Because of. So scrap the reporting track It doesn't happen. Not Tracked By Staff. lot training what does it mean which one did you By using lot, I mean which lot of raw material Which finished goods are produced using Do? Look at any company There is lot of training in manufacturing. It is impossible. I know when it's possible Is? When you are terribly micromanaged had been. I mean, you see that particular You can do tagging or labeling or You paste your barcode that this particular This one is made from raw materials which are very It is difficult. If you focus on all of this If you do it, then the core areas of the business are You will completely divert your mind from them. So, lots What is training? becomes impossible Is. Inventory Accuracy Produce inventory using materials Isn't it hosting utilization of raw material? Inventory. So when do you record it? At the end of the day or year you are What are you doing daily that you did first today First day turned out to be okay so at night you You will record how much I have done today. Let's say I made 100 finished goods. Units made a record in just such a second If you do the same in the third, then overall you will score 30 You will record everything till the date, month end or Day and pay you are recording when you When you are recording, your production It is complete, meaning your goods are finished. When it is ready, you are recording it, so in the middle When the WIP came, you must have seen that track I didn't do it because when do you record? You are either on month and pair and pay. So this Because WIP is not recorded Would. Since it doesn't record components. Issue in WIP. So in WIP No tracking of components It would have been. So these are the four problems of backrefreshing. Was. Now the last one mentioned in it is GID What does the system say in the ears? The system is visual signal based Manage means signal based work flow There is technique. What do you do in this? Look, when I told you the example, Sales Department To Packing Department He speaks and communicates. Packing To the Assembly and to the Assembly Preparatory. So They are communicating. Now this How will you communicate? by calling Will not communicate. What will they do? Will put a signal. One signal everywhere Will apply. What will happen with this? At this signal What to do? Will mention that I have so much The units are required. then packing What will he do? Even in the packing department A signal must be sounding. It is near the assembly It will be reflected that the packing department So many units are required. From this What will happen? An effective effervescent The information system gets connected. Efficient Information System. Efficient It becomes an information system. the reason for which What happens from this? Productivity Increase It becomes yours. So what does this say? Car system is visual signal based Where do we use this technique? in the pull system. So whatever is in it WIP is not created. what would happen in this Is? Some negotiable stocks that you can always Do you maintain it? Because everyone has their own The department has some negligible Maintains that there is no emergency tomorrow If a situation arises, we have something like this There should not be a situation of starvation. Ok? That we could not deliver anything to the customer. Otherwise that company will be considered very useless. So because of this there is no WIP in it. It doesn't build up. only as much as Negotiable stock remains the same and this It would also apply to non-manufacturing entities. Is. Now how to pay non-manufacturing entity I seem to understand him. Look, let's assume there is only one dmar, okay dmar You all know where to get useful items. Go, but take all the unnecessary stuff with you. You come and the useful stuff still remains. If it exists then it is Damar, now what happens in Damar that he has a supplier, suppose okay He has multiple suppliers, we will take one. Let's move on to which product we carry. Let's agree and let's parlege okay parleg is a product okay and it has a The supplier we have is ok parleg company This is Parleg's product, we buy it from them. Parle biscuits etc. Now what about Damar There was a shortage of Parleg in one store. So it is not like that of a damar that every day He will call the supplier, he must be crazy. If he goes, he cannot do it like this. What happens in the case that an efficient There is a system like the one called sap what does sap do what both companies have I have installed SAP software Now what happens is that whenever you If you get the billing done then all the products He tracks all the products. When a scan is done, it does two things. Are. One, they come to know that Which customer has purchased what? So They generate a bill which you receive. There is also someone who gets slapped only after that You can go out. Ok? along with What happens is that the particular unit which You are taking it, it would have been cut from there. She goes. So whatever stock is there, when the bill is given The level comes, one gets the BPL level. There is a stock negligible that is not here Break even point comes below this After the stock, there is direct Direct to Supplier Direct to Supplier It pops up on that particular outlet This Parleg is available at a particular DMart outlet. That the requirement has reduced. Now we have to sell it to the supplier. Now what will come to the supplier that the supplier Who does Parleg biscuits have to be sold to now? Have to sell it to DMart. So this is how it is There is an efficient ignition system. In this this Not that you keep calling again and again. supplier's The pass will be automatically activated. Now What will the supplier do? Not like this, Direct Raw Will send the material. First that confirmation He will send it to you that you actually have a demand as well. whether I have it or not so that I can send it to you There is no requirement right now. So like this This creates an efficient information system Is. So that's why the system is non- It would also be applied to manufacturing entities Is. Because in DMAR we have some manufacturing Not doing it. We take it ready-made and make it Let's just make it and sell it. The commission taken in between is a different thing. Correct Is? So this is DMart Non This is how it would look in a manufacturing entity This is the Kanwan system. Now the next technique Our Kaizen costing is mentioned. Now Look, till now we have read GIT easily. There was nothing in it. Minimize Waste We were told how to do it. Enough It is an important technique and there are many We had also asked questions. Now Next The technique we are going to study is the lean system. of. What is? Kaijin Costing. Kaijin Costing which is very interesting in itself It is technical. What does she say? These Japanese It is taken from Word. Kaizen which is Japanese There is word. What is its main job? Making small and continuous improvements. Now What happens? Understand its meaning. Look, let's assume there is a company. Ok? You What are you doing in this? Small and You are making continuous improvement. Now he How do you do it? Now you understand that a value Let's go to a burger company. Ok? Now he What do you see? He conducted research and surveys Did. What he saw was that he was looking for a burger. She also gives me three packets of ketchup. what is that Three ketchup packets with each burger Gives. He conducted research and surveys and He found out that the customer was only two You should consume those packets of ketchup. And the one that is there, do we waste it or So they leave it there or spread it out. Or take it with you. means to him They are not consuming it there only. So Basically, how much maximum are they consuming? Are? Two. So what is a ketchup packet? It is waste. What did he do now? They Thought I'd give this one ketchup packet away. We will close. So you will say how much is this? It's a small thing. The business that this has How will it work? Now understand this carefully that Let's say 5000 customers come in a day. Ok? Got 5000 customers. You are a ketchup You are stopping giving the packet of Rs. You What are you doing? Acing You Burger Joe You are giving the same burger that you give now and in that What you're saying is that now instead of three How many ketchup packets should I give you? I will give you two. Correct Is? So what did you do? a ketchup packet Saved it. What happened to you? Savings. Ok? Now let's assume there are 30 days in a month. There are. So how much money did you save? Took? ₹1.5 lakh. Ok? So throughout the year How much money have you saved? in 1 year There are only 12 months, right? So far so much It is there. So how much is this? 18 lakhs. Correct Is? So in one year you saved Rs 18 lakh cost. I did it. When you make the P&L and when you If you write savings then you will have a different glow It will be on your face. Why? because if You can save lakhs on such small costs. If you take it then it will be a very major expenditure for you. You can save whatever you have. And every company So this cost matters a lot. Everyone wants the cost to be minimal. So Overall, you have saved a small packet and made a By saving a ₹1 packet of ketchup, you have saved 18 The company saved lakhs. I just did this I assumed that a packet of ketchup No, it is worth ₹1. Ok? By assuming this I've got this one. So what did I do Took? Saved ₹1. 5000 customers a day He was there and how many years have passed since he was one year old? Total ₹18 I saved lakhs. So what does Kaijin say? That you don't spend too much. what you do it? Small and Continuous Improvement do it. Meaning save on small expenses and Save on a continuous basis. From where? Across all functions, processes and employees. So the example I just gave you It was about processes. You can also take the function. Now regarding the employees, you can understand another thing like this. Take. What happens in employees is that they Let's say this is an articleship firm, isn't it? Let's say there is a CA firm, articles would appear there. Are. Ok? His articleship is going on. What does he do now? Like we give you a cup of tea They have it. Ok? Give me a cup of tea. So Usely tea cup is big. So either that or We do? spread it out or something like that No, I don't like tea and this Dec. So he doesn't drink. So overall it is Whatever we have, we waste it. tea to waste We do. And no tea waste in India I can't tolerate him doing it. So the company This survey was done. Meaning CF we saw that Brother, these articles are just useless. Are, messing up, different and meaningless You are wasting it. So what did they do? I will still give you a cup of tea, but he Made it small. What did you do to the cup of tea? Made it smaller. Made it small size. By which What happened? There will be no wastage. As much Whoever is asked to drink will drink only that much. neither We'll give you something extra like counting There is no harm in doing it. So what did you do? Continuous Small by Minor Improvements And by continuous improvement you What did you do? Trying to save your costs Curry. Tried to minimize waste. Those who used to waste tea, I tried to minimize waste because What we are studying about lean systems If you are studying technology then our main M is What is that V waste that minimizing is all about? Our main technique is what is main aim Minimizing waste, so what are you doing now? Let's look at Kaizen, a little bit daily If there is improvement, you immediately Can't expect changes means like Look what I said here that I spent ₹1 Whatever is there is saved, so if you just If you read this much, you too will feel that What if you save Rs 5000 a day? Now you see how much the annual amount matters. It is gradual and continuous If you make improvements, do it gradually. It shows savings etc. and Changes are visible gradually. Hanes Radical Change is not expected. So right away you Can't see the change. And its primarily a What is the existing production process? Whatever it is, it has to be improved. Look when I took the example so I had the same burger I was talking about. The burger for which Along with that, I used to give three packages. Now I will give you two. Now two instead of three I will give. So I'm not saying that I I'm going to try a new burger. His I will give you two ketchups along with it. Three walk with the rest Two. I am not talking about new things. Right now I You have the option to save in existing I am explaining. Continuous in Existing I am explaining how to improve. So what is this Does it focus on? Improves Existing production process. how it does Not Focus on Improvement by Innovation. Meaning it does not say that someone innovative Make products that cost less Needed Product efficiency is high. As such Not there. You existing production process Just look at this. And what to do in that? Make improvements. Small End Maintenance Make improvements. And what do they do? Use target costing. Use Target Costing to Six Set the Required Land Cost of product. Target Costing What does it mean? that your actual The cost is coming in and you want to add a target cost Do it and you will be able to achieve that target cost. What you should do is apply techniques in which One of the most important is Kaijin Costing How does it help continuously? Keep improving and gradually reduce the cost So to reduce that, there's Kaizen costing. Nor its process is done in three steps. There is a divide. How to Divide in Three Steps Is? What do you do first? Cost Reduction Set a goal. Let's assume you let's assume you Do you make any product? Ok? Its cost is currently coming to ₹20 and you Target cost taken that you have to pay it at 18 What is your cost reduction goal? Done 18 okay in your actual first How much was 20 and you have to bring 20 to 18 So how much is the gap? ₹2, so what do you do? Look at the gap and compare your goals and I have calculated the actual cost of both of them. I compared it, then what will I do now? I want to bring it from 20 to 18, which is ₹2 less for me. If I have to do it then I will do cost reduction for it. I will use techniques like value analysis What does value analysis say? Existing Process Dekho Kaise An Exist Works on process. So the value What does the analysis say? When you specialize Will you read the cost management techniques chapter? Then you will know. We will read in it Value Analysis. what he says is that existing production process which is Focus. And whatever non-value there is There are added activities like setup etc. activity which is related to engineering arts Whatever useless activity is done, Anywhere you can produce value I am not adding anything but just wasting your time. Still working. Increase in your cost access She is doing it unnecessarily, reduce them. So Caijing What costing says is that you gradually Reduce all these costs by making improvements. So that's what you do? Target your cost Achieve your target cost, right? Do it. Achieve your cost reduction targets Do it. This helps. so formula and Implement Cost Reduction Plan Based On What Value Analysis. value Why are you using analysis? Because Kaizen has always been talked about as existing. Does. and value analysis also existing Focuses on the production process. Now Kaizen Costing and Standard Costing You have read it. What difference would there be in that Are? Understand that. See Standard Costing What happens? This cost control technique it occurs. What is meant by cost control? Forcefully reducing costs. Then your If the quality is bad, so be it. Yours is just for you What you aim to do is reduce the cost. How No, how can the customers get dissatisfied with them? Doesn't matter. Just reduce the cost to them She keeps on doing it. Whereas what is Kaizen? Says that while maintaining quality Reduce the cost. cost reduction techniques Reduce costs while maintaining quality to do. Where is the focus of the standard? Current work condition pay that currently our What is it? What is our current AI? Is The cost has to be reduced. By doing it somehow or the other. As you can see now, you will see The plane has crashed. So you You must be aware that Air India is also Everyone focuses on how to do it Reduce the cost. A. He is on the flight There are passengers, let them die. Yours The cost should be low. Engine is bad So let it be. Don't spend what you have Repair maintenance pay. Later, he was a Crores are being distributed to everyone. 245 crores I will spend the money. That is okay. But Earlier they did not spend any money. So he What did you adopt? Standard costing adopted. While what should be used? Rising Costing that daily which is continuously Improve and reduce your costs. But you maintain the quality. As Indigo and so on do. It is not that he Not reducing costs. They are also doing it. That too is the price for the customer. Price, air fees, that too, etc., that airplane They also increase the fees etc. But such Not that they are spoiling the quality. They Let's focus on quality. So standard What does costing say? Current Work Focuses on the condition. While Kaizen is Focuses on continuous improvement. What is the goal of standard costing? that cost-performing standards are met Whatever my cost, think about it. That I have set it up so much that I can accept it. He asked how much the product cost. Was? 20 Suppose. Ok? He said this, he set I have done that whatever my standard is, it doesn't matter The cost was within the budget I had set. How much was 15, so I have to bring it to 15 Is. Now, no matter what the price in the market It's going on, whatever's going on, the customer might Whether you agree or not, he will bring it to 15. So The Ultimate Goal of Standard Costing what happens is that his standard set No, bring it at this budgeted price. Meet Cost Performance Standard. Whereas What remains of the kaijin? Goal Ki Cost Achieve reduction targets that quality He should reduce the cost while maintaining it. And Achieve his target cost. He keeps busy in doing what he has to do. While making continuous improvements. Now What is the period of standard costing period? What happens? The period is one year. means when You will also see standard costing when you If you also do its calculations etc. then you You will see that calculations are done for one year only. Is. Whenever you compute variance etc. Or whatever data there is, it is for one year. Is. Meaning you make a budget for the entire year. The annual budget is prepared and according to it In the end, comparison is done. Whereas Kaizen is a matter of the whole year. It does not because in this you are continuous You are improving and doing small things had been. So what does this say? Weekly, You should check monthly or quarterly. Weekly, Monthly, Quarterly which is the budget set do it. This speaks of periods. Variance Analysis. What is standard costing? Do you? You compute the variance. How Do you charge your standard cost? Yours What was the standard budgeted cost? And your What was the actual cost? Then you their You see the difference and on that basis You compute variance analysis. As material overhead, labor and ultimately very All Edwards variances if Edwards comes Whatever did not come in your favor. Edwards If the effect comes then you can use Edwards variance. You will calculate it. Favorable this whole calculation Do you. Whereas there is nothing like this in Kaizen. What do you look for in Kaizen? actual How much did it cost? As was the actual cost 20 of the product. Whereas what is the target cost? Was? 18. So how much gap did it create? Two came. So What do you do to reduce it? You use cost reduction techniques. so this is Everything has been told. No variance here Don't you compute what the gap is? Actual cost of Kaizen is called actual cost of Kaizen. to the target cost and to reduce the same Use cost reduction techniques. Now this The last point is that if you If you want to implement costing, you need to do some Changes will have to be adopted. what-what Will I have to adopt changes? First of all you Moving from cost control to cost reduction Will have to. Meaning you are not forced to reduce the cost Have to do it. Keeping you quality maintained The cost has to be reduced. Now Air India too This is what he will do if he continues. Secondly, what did you tell me that the standard you And so on, the budget etc. that you make is for one year. You can pay it on weekly or monthly basis for a year. Bring on the Bring on the Quarterly. It's not that you Make it once a year. You Make small things and try to achieve them. Try. and the third point in it is the subcentre Told that whenever you set the standard So it is not that only big top dancers People should make it. You, your workers and Involve the executives as well so that they too Made with you. Because ultimately four He works on the floor. They also have equal I have knowledge. It's not that he's crazy. he too Can give you good inputs. So What changes do you need to make to control costs? We have to move towards cost reduction. one year old Instead, make budgets with short spans of time and Try to achieve them. Like monthly, Weekly, Quarterly. And what about you in the last Do that to the workers and executives Get involved in setting standards. These This was our costing and pricing in which I I told you its meaning, told you the process, Explained the difference and adopted the changes Tell me. It is quite easy. quite interesting There is also technique. Now we are talking about the third lean system. I am going to study technology. That is 5S. 5S What do you say? What does this say? This Understand. What does five mean? that any office or Factory anyone what am I talking about? If you need to organize your office or factory Have to do it. You can also use any factory or office If you want to organize, then you You can organize when there is efficiency in it. And effectiveness should come. any office or Organize the factory in such a way that There should be efficiency and effectiveness in it. Now What does efficiency mean? where There should be efficiency too. of efficiency What does it mean? The speed should become faster. Your working speed should increase. And What does effectiveness mean? that chances The error should be reduced. what did I He said what does five say that any Obvious or how to factory It should be organized as soon as E arrives. of E What does it mean? Efficiency and Effectiveness Come. Efficiency means faster speed What does go and effectiveness mean? That The errors should be reduced. Now look at Five What happens? Firstly, errors are reduced. Your process time improves and The satisfaction of the employee should improve She goes. How does this happen? from an example Let us assume that there is a CA firm. Correct Is? Have a CA firm and what are the five S's you need? Have to implement it. Meaning what you do Is? Both efficiency and effectiveness You have to increase it. You have to do both of these You have to increase it. So how do you implement Will you do it? Let's assume that there are multiple There are departments. Ok? There is taxation Went, The audit is done, if you do any further work you will find out the fuss. There is another IT department. There are many more departments. I have given this small example. So These are your four types of departments. So Whenever you have to implement five So you will not do it like this that you have taxation I did it. Not done in audit, but in fuzz No, I didn't do it in IT. Only You have applied 5S in taxation. the rest I didn't. You can't do that. So What Five says is that whenever you get a Five Have to implement it, all persons in Organization. All persons means all The department will have to install it. as many as There are people, everyone will have to work. Not Only By One person per department. Then go to your What will happen? Errors will be less. will improve Process time and satisfaction You will be able to achieve your goal. So five is No, this is basically the foundation. It means base. What is this? Everyone has a base. Whatever you Learned techniques like you learned GIT. Now if you read TPM etc. further then whatever You are studying techniques, that is the base of everything. Meaning, if you implement five, then Only then can you implement further techniques. You can. You can install GIT etc. only then yes. So what is this? It is the base of everything. Like whatever exam you give, whatever will happen next Your rank will come or whatever you do next. What is its base, CA degree. This What about you in the same way? Five which is the base It is about your various techniques. so like GIT is done, TPM is done. so therefore What do we call all this? It is capable For Continuous Improvement. means if You have to continuously improve, right? It acts as an enabler. Meaning this starting Point will do the work for you. Watch Enabler I will explain it to you in more detail. Am. Look, when we started our modern business I read the environment chapter and in that I I told you that TQM has one PDCA Cycle. P DCA This is a bicycle What does it mean? Plan Do check and act. Plan Do Check Act. Correct Is? Plan do check act is its. Meaning In which it is further told that the plan and What do we have? Enablers. What does it mean that if we have to do any work Have to do it. See what planning means. that an action plan has to be developed to I have to work. So I'll think about it first Develop an action plan that will help me get things done How to do it. As I suppose I thought That I have to give the exam. So for that first I planned what I did so that I You will have to study and give mock tests etc. I planned all this in my mind. In. What does do actually mean? To do in. You are implementing it. What are checks and acts? results would have been Are. How is the result? What do you do in Czech? yes? You try taking mock tests etc. What is your result? His After that what do you see that I will accept your It didn't turn out well. If you are not getting positive then you You see, my marks are less than 40. I am coming. So what do you do? doing the act yes. I mean, what do you do? Corrective Action You take it. So what is the plan and do? There are enablers. While what is check and act? result. So what about the five that we have? Is an enabler. Meaning if you continuously If you want to improve then you should enable have to do it. Meaning 5s which is at this stage Works in plain and do. and in that What is that right fit? In D. Do Why in Right Fit? Do the Right Fit Why does it happen? Because what would five be? Is? It has to be done actually. Meaning Will have to implement it. If you are a 5s Only if you implement some techniques will you learn them. You can do it. So only continuous improvement You can bring it. So where does this fit in? Do It is on the stage. Whose? In the PDCA cycle. Let me explain it again. What would five be Is? that any office or organ any office or The factory has to be organised. Any Organize your work place well Have to do it. Which leads to efficiency and effectiveness What should you use if it comes? Do fives. What will happen by using this? Efficiency will come. Meaning you can do the work at speed. And Effectiveness means less chance of errors which is Your chances of reducing errors. Process Time will improve. Employee's Satisfaction will increase. And this every This is every organization or meaning organization I should be involved in all the departments. Needed And this is the base of all techniques. Meaning, like GIT is done, TPM is done. If you want to implement this then First you have to implement 5S. And In which does this right fit occur? Do Stage In. In two stages of PDCA. Now this which What does Five S mean? What is it Is? Five S's are Japanese words. Five Japanese words that start with S There are. So how do you remember this? So For this I have put together what Is it written? English Translation Words Also Are written. That sort of means Siri, sit on Sadden order, seasoo shine, sikets, Standardize and Sustain Sisu. This After reading this you will get complete information about Doraemon and Ninja. You must have remembered because all these are Japanese The technique is the same and the Japanese cartoons are also the same. There are. So I remembered all those words. They might be there but we should not remember them. You just Just remember this much, short set in order to shine Sustain Stand Remember You Like This Is. So what do they mean and what do they mean? What are our expected benefits? You must understand them. Now we will give our example I am going to continue it. Which one? CA Firms One. Our example with a CA firm It will continue. Now understand this carefully What does it mean? So what do we do first? We Let's do the sorting. Ok? First of all we What to do? Will sort. Sort means We will sort and remove Where do you get unnecessary items from? work Area. What does it mean that we should accept it. What do you have? The bundle is attached. Correct Is? What do you have? bundles are attached of files. So your top management No, I mean the boss of the CA firm is a partner. He came to your department and He said that till yesterday I had as much as There are also files, sort them all. Give me the file of which one is useful and which one It is not there and you should not sort it at all. What should I do with them? Just remove them for whatever purpose they are doing. You don't have to remove them completely, you How will you do it? Put the red tag. You have put a red tag on this work. No, and remove it from your workspace. what will happen, what will be the benefit of this What will be your MRP, your work will be easy. What will happen next? Whatever worked for you It was a file, merged with the useless file. Will not happen. Reduce the chance of being Disturbed. and what about the second, third and last It must be that whatever bundle of useless files has been created It was going to stop making that bundle. In Prevent Accumulation. one so what are you do it? Use and dispose of Red Tech Two. Secondly, apply this 48 hour rule. 48 Hour Rule What does it mean? who is our mother Etc., they put it at home so that no one can buy the goods. I bought it from the market and it was lying there for 2 days. Is. So what does she say? When we are third Day asks, brother, where is that thing? So she says that you have been under my evil eye for the last two days. If it didn't come, I thought it was of no use to you. So I threw it away or I picked it up and kept it. So what is this? There is a 48 hour rule Which mom and others like very much. What does the 48-hour rule mean? What do you say? these in your modules etc. Not there. This is given in an MCQ That there is a 48 hour rule. Why is this new? What does it mean? that if something Which is not working for two days. Meaning 48 It didn't work for an hour. This means that he is ahead It will also not work. So what should you do with that? Sort that out and remove that from your From the shell. What will happen with this? May your work be easy Will go. Things are shows. No unnecessary mixes Must be. useless work and useless thing and your The bundle of useless things that were there Whatever was being made will also be reduced. So Sort means this. You remember this How can you do it? Its expected Remember the benefits from MRP. Satin What does the order mean that you do? Make systematic arrangements. Now this means Understand what you do? Let's accept your What are you? work for the Big Four and You make work papers there. Ok? When you work in the Big Four, then there Quality work is done. He says so Are. Then when you do the job yourself, you will do everything yourself. You will understand. So what's there in the work papers? Let's assume that there is a workbook. Ok? Now you are creating a workbook. There are very small tabs here. Are making it. Small tabs are being made There are. which contains the first sheet No, that is very important. one then A small table is made there. Joe Actual And the previous budgeted figures There is a difference about them and their Reasoning is given. along with there What are they? Links are attached. And What are these links? Links are attached and these links are Yes, these are from the rest of the sheet. Meaning Let's assume I want to see some variance. why this variance is occurring and its What is the ultimate problem? So that If I click on a particular link I'll get to the sheet. on this link If I click, I will be taken to this sheet. I will go. So this entire linking is done. Meaning the first sheet of the working paper There is proper indexing in it. to say What does proper indexing mean? it occurs. What happens with this? Systematic Arrangements are made. Whenever I get a work paper I have to read it out or whenever I use it. Maybe I can easily see him. either You should do this to make systematic arrangements. Or what do you do, you have to tell your clients If you want to save the data then work The client data you need to save Suppose you have multiple clients Limited is okay MMA Limited or There is another client, ABC Ltd., who also You have clients, what do you do with them? Create respective folders and in each folder Isn't it respectful client wise? Save the details as your work paper is done. PP has become revenue, intangible All of these have become assets, whatever you do. Make work paper particularly revenue The cost benefit analysis is done for everyone. Save the work paper in one place. Ok? Systematic what do you do? Make arrangements. What will happen with this? You have everything that You will get it at one place. Putting Tools At Point of view: Everything in one place You will get it. Second area layout change Will go. How to layout the area? This is what I I told you everything online. offline as well It happens. offline how to assume that The taxation department is its client Wise files are kept. So what do you do? rack Make it and what do you do according to that? Do the labeling. what will happen is that the The area that was lying unused, your area. The area that was being filled was yours. Will be done. The layout of the area will change. What happens with this? What does FIS do with this? Is? FIS happens here faster Retrieval of Things. Meaning of Retrieval What does it mean? Things can also be found Are. One, things are available immediately and If after that you put it in place then you If you need the missing item back, you can easily find it. You can. Ok? Space is saved and Efficiency improves. Speed ​​increases She goes. The third one is called Shine. what you do it? Keep your workspace clean and safe Please Keep. When can you keep your workspace clean and safe? yes? Like the articles that I have The example given was that tea etc. Neither do they drink it nor do they spill it there. So What happens is that the rest of your employees, etc., your clients, etc. Those who come feel unpleasant. So What you should do is clean your workspace. Please Keep. Don't serve tea etc. there. like this Make it a norm that no one will do something like this. So that penalty etc. will be imposed. in this way which It is also there, you make it. pleasant environment Create it. I mean, what will happen with this? Employee You will be happy. productivity of workers It will increase. Production down time if If yours reduces then the quality will improve, There will be safety and space will increase. So this way What can you do? CIUFCII3F By doing this you You can remember this. means happier There will be employees. Production Downline Low Will be done. The quality will improve. Safety It will come and it will be free. The place is free Will go. So what does shine mean? work Keep the space clean and safe. What does standardize say? that whatever You have created processes that should become standardized. Needed What does standarize mean? That Let's assume that many of your kind There are departments. Ok? Taxation, audit, Fairs, IT'S like this. So your Some are tax files. Some audits There are files. Some files of the department The files are done. There are research files. Basically it involves research and development The work gets done. Some research files were done and Some IT documents are done. So you What to do? Colour everyone. Meaning You called the text files red. You called the audit files blue. You called the research files green. And you mentioned these documents. What? You supposedly gave them colour. Who Like? Let's assume that you give me violet color. Gave. Ok? So what did you do like this? Kara? Maintained a standard. So when If you see that there is a red file, you will understand. This is a tax file. So looking at you, you I would know in which particular area I This has to be kept. Which department is this in? It has come wrong. So what will the process be? Yours Standardized and comfortable With five procedures. How to be comfortable It will happen that all the things are for you. It will be easier to keep your workspace clean Will remain. There will be systematic arrangements and You can sort it. You can easily buy unnecessary items You can remove it. So everyone is from Stay Five. Who is also able to make the procedure comfortable? Does it help? Standardize. because this Maintains standards. And last comes It is sustainable. what sustain says is that whatever You have set up processes, maintain them. Maintain it? Discipline your work In the area. What will happen with this? By auditing. What is meant by auditing? Look like your Let's assume that the data for the first quarter Is. What I told you was that you Whatever it is, save it folder wise. data Told to save folder wise. Now assume Let's say you audited the first quarter and You have saved the data. So when the seconds You will do the quarter or the third quarter or Fourth quarter so you can comfortably data which is You can retrieve it from your back end. Your The pass itself will have data on it. Now you repeatedly No need to go to the client and you If you also have some workings then you You will not have to do multiple tasks again and again. So it is very important in the Big Four That the data which is properly with you Needed If you don't have the data Then you will get scolded in the review. You may have never eaten this in your life. So much He narrates it well. So what of it It happens? The discipline that is there is maintained that you will also have in the coming quarters Discipline will be maintained. This way you Have to maintain it. What happens with this? You How can you do it? What should you do? up your Deploy DSP. DSP means Daily Monitor what you see on Gmail that any file has come in your particular correct Whether the folder is saved in the correct location or not Curry. If the file is related to revenue then It should go into revenue. From PPE The related files should go into PP. Who also have common areas they have a common file Make a folder by doing it. go there in it Needed Structure communication means As if someone senior tells me that you Please send me this file of that particular quarter. You can send it clearly. So the structure There should be communication. This will only happen when you You will maintain this. maintain discipline Will you do it? Do periodic audit at all levels. Meaning, let's assume that a quarter second Quarterly audit is taking place in the third quarter then you should have periodic audits when If so, you must have proper data. If you want, what do they say at all levels? do periodic audit okay so what do you do You can make systematic arrangements by applying 5S You can do it, you can sustain it in the end Yes, you can now maintain the discipline of 5S. Is an extension given after See what Sixth Sixth says. The sixth one says that the 5S There is an extension, sixth, what is that? What is safety? Safety is any other word if we If you say it in MCQ then say it clearly. Tell me that this is wrong. What is your sixth S? Is? There is safety. Now what does safety say? that you identify the hazards that What problems can occur? and his What do you do for it? See it already. Develop preventive measures so that tomorrow If this is a problem then what can be done for it? These There is a way. You can avoid it with this. So That your team should be safe. Look at this I will give you the example of one of the Big Four. Am. Let's assume that you come to the review meeting. You are sitting. We are executives. Suppose you Above me is the assistant manager, assistant Senior, above senior director, Partner above director. Ok? when you If reviews are going on then that Executive and Assistant Manager Position It is just beans. So what happens in that Let us assume that there is a point where if It became clear if the partner asked. The entire team can get into trouble. These The director knows the matter. So What the director says is that if this point If it opens then all of you remain silent. I am your I will speak on behalf of the people and this point I will suppress it myself. So what did the director say? Kara? Identify Curry Hazard. He saw that This is a problem with the point and he has already Preventive measures have been taken by our team To make it safe. This is how you use safety You can do it. I've given you an example Have taken it. It is not necessary that these other things Can be. So this was 5S. 5S Basically Speaking How is the office or factory Get organized. Efficiency Effectiveness Go. So for this he gave complete details. Procedures are given. As I I told you the short form, if you do it like this If you read these three or four times, you will feel relaxed. You can ask questions about this. because this You know, there are multiple topics on this nowadays. They are starting to be made. These Expected Benefits Those who are there were not there before. Now too much He created them. So multiple on these MCQs are created. so try You can easily remember it after reading it two or three times. Will go. So these were our five techniques. Now The next technique we are going to study is total Productive Maintenance (PPM) what is it? Is? What does it say that the machine or Any machine or equipment maintenance in the right way be done so that the machine does not stop due to product defect. or due to equipment failure whatsoever. Production losses are occurring, eliminate them So that it can be done. See what the TPM says? Simply What does Total Productive Maintenance mean? It happens? Whose machine or equipment is this? talks about? either a machine or Then the equipment. Ok? machine or equipment in the right way Maintenance should be carried out so that if due to fault There is any defect or damage to it If it is happening then whatever production losses are there due to it Whatever production losses you are incurring, right? What should be done to eliminate them? If it can be done, if it can be ended, then what is this? TPM says it is maintenance losses and eliminating product losses due to Foughty machine or equipment is fine machine or due to equipment failure, whatever Production losses are occurring, eliminate them What does TPM say now that it can be done? How do you implement TPM? If you can, it has eight pillars. These eight Call it pillars. Call him the principal. Tell me the features. This means that the TPM will explain how to implement it if You have implemented the eight points, right? You can ultimately implement your TPM. Took. But by implementing TPM What do you need to do first? 5s Implementation Have to do it. What is 5S? Because it is the base. I just told you when I taught 5S. What is this? It is base. So whenever you Do you have to implement TPM or GIT? You must first implement 5S. Implementation is very important. Because What is that? It is base. The enabler is Continuous Of improvement. So, implementing 5S It is necessary. Now after 5S you have accepted it. 5S has been implemented. Now you have installed the TPM If you are a TPM student, which eight aspects of TPM do you need to know? Are there pillars that need to be implemented? Only then will your TPM be implemented. Understand that. Now look at the first pillar mentioned Has autonomous maintenance. What does this say about what to do with you? You Small improvements to your workers Teach me. Minor routine maintenance Teach them that. What will happen with that? one then You should not call anyone from outside again and again. Read and don't waste your time etc. yes. Your production should not stop. As How did the minor minor maintenance go? As The machine is oiled and cleaned. Etc. had to be done. All these little things Whatever it is, you should teach it to your workers. Correct Is? Focus improvement. what about kaijin it means? Focused Improvement means Kaizen What does it mean? that dilly dilly miner You should also improve yourself. like the value Let's see that the machine is working properly. It is not working. His bold is getting loose Is. So I tightened the bold. Ok? this routine It is a maintenance thing. The wire that is cut It seems like it happened so I put tape on it. So what can you do by gradually improving? Can you? You can save your costs to a great extent yes. Because if you don't pay attention to all this If you don't give it, one day there may be a big shortfall. If the circuit breaks, the entire machine may get damaged. If the entire factory work stops, then all these What should you do to avoid this? Improve your bed on a continuous basis okay planned maintenance what do you Let's plan in advance so that if tomorrow If something like this happens, I have a plan. What is that before the production starts Plan what you do in advance Be proactive instead of being reactive If something happens to someone, then you take action like Air India plane crashed It crashed and then you took action. Is it better to distribute Rs 1 crore each? It happens that he has already checked his plane. You take it. If there is any problem, he Don't blow it brother. You should have delayed it that day. Five flights are cancelled. But such I don't do any actions. Now his ₹1 crore Everyone will add a little pickle. So you always One should be proactive in life Plan ahead to make sure this happens If it goes then it becomes like that, then it becomes so reactive No, always be proactive. Even in life And in TPM too. Ok? Plan Maintenance. Then Early Management. Early What does management mean that you are from bad Let's take the bad situation that tomorrow the machine will be there. There may be a breakdown. So in that case I What is the plan? It's not like I can sit down. I should stop production. I also keep a plan I will always go. Shorting time required for Product development. Quality Maintenance What should you do? During the production you What to do? Keep checking your quality During production, whatever our The product is coming as it is on S There is a quality standard, right? It is not like that That the machine may have broken down. internally something There may be damage that I cannot see. Outside It looks correct from there. So the quality you Always keep checking. Because if a Poor quality of product or service It happens, then the customer gets it back. It is very difficult to get close. like once If you break a girl or a boy's heart Two. So it's hard to get it back to how it was before. Isn't it the same quality of product or service? It happens to be. Then comes the education end. Training. What does it mean? Look at this We have made significant progress in the modern business environment. I had read TQM whenever Denmani said so. Whenever Damin said that whenever you You give machines etc. to the workers, right? Give him training first. to any worker If you are getting production done on the machine etc. First train him to do this and that. Is. So that he will be able to do it well and They also have defects which are less produced. Will be. So training of workers across all Levels and Departments. big There are companies etc., this is happening everywhere these days. It has started. Be it CO or non-CO, anyone yes. They are all trained first. This is how you have to do this work. Then you Actually, work is given. Next comes Office TPN. So TPM What says that it's not just that Will be engaged in the manufacturing sector. These It can also be applied in the office. How do you feel in the office? Can it? Because there are printers in the office too. There are scanners. have a laptop Gaya and how many desktops etc., cameras etc. All things happen. All these are machines too Are. All these are also equipment. So You can install TPM there also. Can you continuously maintain that laptop? Etc., everything should be properly checked. every week which They should be maintained. If the charger etc. then continuously whatever This means that it should be changed immediately instead of It may burst. After that Safety Health and Environment. What should you do with your employee or For the safety of the workers, whoever they are Whatever you have, you should take precautions with you. Like If you go to manufacturing, it is there, right? Safety Hazards Like Fire Extinguishers There should be etc. there's no such thing There should not be any sudden change in the workers Let's assume there is an oil industry. etc., then whatever is there of fire etc. Should be kept away. Like if you have seen it Sometimes it's like an army truck on the road No, on the one who is carrying oil It is clearly written that a little distance Keep it ready and whatever such fiery thing is No, keep them away from it because that oil tank It happens, if it happens, once it bursts If it catches fire even a little, you will I don't even know how major and what. It may be like once in Jaipur now The incident has already happened, so many things If you have to be careful then it is for the employee What to do: Safety, Health and Environment Focus on zero accidents and health damage Keep this in mind, your employees will also be happy and Their morale will also be boosted, so basically this There were eight pillars, how can you remember this? You must remember this, Fee's pose, Fee Kaka You will pose, you will say it two or three times, right? You will automatically remember Phi's pose. It will help you remember, so basically Art is not pillars, it is principles. Call these pillars, call them principles. Features to implement TPM what are the principles if you have these If implemented, TPM automatically Implementation will be done ok and TPM What you need to know before implementing Implement the Five S's in this way. If you make a story, you will get everything easily. Now you will remember what I told you next. What are the connections between TQM and TPM? There are differences, please explain the connections between them. Are. So let's look at TQM a little bit. Let me rewind it. I have learned TQM What did you tell me? TQM means Planning and controlling by management Planning by doing management controlling the product or service Continuously improving quality What will happen with that? One is the customer's You achieve satisfaction and what else? yes? Whatever you have, achieve zero defects. Achieving customer satisfaction and Eliminating Zero Defects. Planning and controlling by management improve the quality of the product or service Continuously improving so that one Customer expectations should be met and the second is to achieve zero defect Can go. So the main focus of this PPOM Where does it happen? On quality. it Who are you talking about? of the product or service to improve the quality Continuously. Whereas TPM is total Product Maintenance which we have just read about since Where is its main focus? On equipment or machine. because what is this It tells you that the equipment or machine needs to be properly maintain it in a manner that has no There should be no malfunction. As a result, the production The losses are not yours. So this to them Any defect causing production losses Because they suffer production losses Talks about elimination. So its The main focus should not be on equipment. Whereas The main focus of TQM is quality Pay. But what is the main aim of both? Achieve customer satisfaction. Improves customer satisfaction. and in the Involvement of workers is necessary. Look, whatever techniques come or anyone The thing should arrive. Any techniques etc. TM, TPM, Cellular Manufacturing Or workers in GIT etc. Involvement is necessary. this is the same line It will come to everyone. And all these techniques When will this be implemented? When the top Management will tell you. The top management I told you that this work has to be done, meaning do it. Is. So what about commitment from top management? It is necessary. And lastly it is said that Fundamental Training and Education in all What is? It is necessary. Ok? When you workers Only if you provide training etc. to the workers Will be able to work. So fundamental training What is the difference between giving or education? It is necessary. There are both TPM and TQM. So, some of its connections were told. Now look You should understand from the practical aspect. In this what have you said that you said what you To check with TPM, check whether your machine and equipment that is properly maintained Is it happening or not? So how are you now You will judge whether you can maintain it properly. You are not able to do it. So for that you What will you check? You will also calculate The overall equipment effectiveness that your The particular machine or equipment is correct It is not maintained properly. You calculate OE Overall Equipment Effectiveness. See Equipment Sort Efficiency or Effectiveness In whom does it always happen? In percentage. Correct Is? When we started manufacturing at GIT Efficiency was calculated and that too in percentage. Was. Similarly, when we put effectiveness into it now If you are taking it out, then in which will this be kept? In percentage. So what does she say? Oi What does it tell you to do? Aggregate Take out the measure of productivity, Of productivity. How will you remove that? It is based on only three factors. Look oh e This is based on three factors. What is it? One is availability Then comes the performance. And what comes last? Quality. Ok? Availability, performance and quality. These What is? It is based on three factors What? Oi and what does this help with? To determine the productivity of equipment that any particular machine equipment is What percentage of productivity does it give? Has been. what percent of that Productivity is happening. So these three Factors are based on. And these three It is a factor, isn't it? These are equally valued. Are. Meaning they are equal. Not so That availability is more important. Less performance, not less quality. All three It is equally important. Ok? So I What have you written? This is the aggregate measure Productivity, which has three factors You are involved. And each in it There is equivalence of components. Now you make this How will you calculate? Now for this you What do I need to understand? First of all for this You have six big losses, six big losses that Will have to identify. Six Big Losers Whatever is there is also divided in three ways. How is it divided? One is time loss One is your speed loss and one is done What about you? Quality loss. Ok? Time, Speed ​​and quality. Now what about these two? Is? Two-two two-two have been mentioned. So 1 2 3 4 These are five and six, which ones are yours? Big Six Losses. Meaning there are three losses of your time, Speed ​​and quality. And two of these Two have been mentioned. Meaning your total is six Losses occurred. Now first of all understand time loss What happens? What does time loss mean? That you are also two things in time loss. Plan Time loss and unplanned time loss. So I I have written it in short. Plan for time loss What does it mean that how much TPM you have Implement it. These breaks will come to you Will come soon. Meaning, this time is such that you There will definitely be waste. what are we reading Are? Time loss. Meaning what is he saying No matter how much TPM you set, this time Your waste will definitely happen. How much is this You try it. Take how good it is Set up the organization. So who are these What time is it? Plan Down Time Also speak. What are the different times? As soon as lunch time came, lunch break came, Tea break is over, miscellaneous break shift You are changing its brake preventive Maintenance Daily Production You Joe Daily You are getting that brake maintained Clean up period. You can check the machine every week If you get the cleaning done then the time spent in it If that is the case then what has happened? Plan Time Loss Done. No matter how hard you try, it's yours It will definitely come. Ok? It will definitely happen. So much time, what about unplanned time loss? it means? Which comes suddenly. Meaning what you Had not planned. Suddenly yours is something like this Let's accept the situation as it is happening. The machine stopped and went completely out of order. Equipment failure Any equipment in It was installed, the power is not working A failure occurred or you need to make setup changes The units are not being produced properly If it was there then you had to change the setup EDC then These are unplanned downtimes for both of them. What is the total time loss? Time loss is made up of both of these and What does it help with? Availability Helps in calculating Availability means how much total time is available It helps in production There is a lot of time loss in calculating this. And unplank time lose we plan time Losses are also called plan down time. It means a time that you can try so hard to achieve. Look, these must be inked. And Unplanned time loss that can occur if you get the PPM right Maintain machine equipment properly If you maintain it properly, you You can reduce it. like a breakdown equipment failure, power failure, Have you made all these setup changes? Unplanned time loss or unplanned down time. Then comes that speed loss. What is speed loss? Does he speak? Let's assume that your machine is It is running intermittently. Minor Stops Come Have been. So this one loss, reduce speed. The speed of the machine should decrease automatically. Has been. Like there is no AC. When new-or If you bring it, it gives very good cooling. Then Gradually, whatever is there starts spoiling it. So let's assume that the cooling in it is less. Went into AC. Low cooling in the compressor etc. Is it happening or is the compressor filled with water? Went. Whatever the reason is, the gas ran out So what happened to him? The speed decreased. So She is running intermittently like some machine and her What happened? The speed decreased. So both of these To calculate the loss, add these two losses. How do we calculate it? his Efficiency helps. performance Helps in calculation. These What help do both lose? Performance in calculating performance Efficiency. Last mentioned is quality loss. There are two types of losses in this also. Yours What is? Or the output may be reduced. What does output reduce mean? that suppose You used to make 1000 units earlier. Yours You had the capacity to produce 1000 units of the machine. But now they are only 800 units. She is able to make it. What is Only able to make? It is able to produce 800 units. or else Quality defects. make 1000 units had a capacity of 1000 units and manufactured only 1000 units Is. But the 200 on it is defective. So there was a defect in the quality. So this What does it help in? to the quality It helps in calculation. So What did I tell you what to do? Oi has to be removed. Oi means that your How much is the particular machine equipment How is productivity giving you Will you take it out? You will withdraw it in percentage. In this Three factors to know about availability Performance quality. Availability how you Will you take it out? By calculating time loss. You lose quality for quality Speed ​​for elimination and performance Calculating losses. How do you calculate now? Will you do it? How will you find out the availability? Actual time taken divided by your laga Take by plant production time. actual How will you find the time? Total Available Time Reduce the total time loss from this. total Time loss means plan time loss plus Unplanned time loss. Total Time Loss Meaning What happened? Plan time loss and unplanned Time loss. I mean these ones. You take both of these Take. Divide this and plan production From time. Multiply yours by 100. Because what do we need? All in percentage Needed Effectiveness in our percentage Will happen. So we multiply everything by 100. do. So what will happen to you? Availability. Plant production time Plant is available out of total available time Reduce time loss. Here comes the plant Production time. Next one has to be removed Performance. What does performance mean? What should you do first for this? Standard Time Required for Output Produce. Standard Time Total Output Standard time to produce How much is available? How will you get that out? One Standard time to build the unit How much does it cost? Ideal Cycle Time One How much time does it take to make a unit? Is? into total output produced. total How much output do we need to produce? So What will happen to you? Standard Time Required for total output produced. From whom will we divide it? which we Have to divide. Whatever your actual time is Divide it by the amount it takes. So what about you Will he come? Multiply performance by 100 Because it has to be withdrawn in percentage. Last comes quality. what about quality What does it mean? Good units or output Accepted divided by total output Produce. What is meant by good units? Went? Out of the total number of defective units Defective free units by lasing them How much was made? or by removing scrap etc. How many fresh units were made? or output How much are you able to accept from the customer? What do we call that? Good Units Give its divide. Total Output Produced and multiply it by 100 because It has to be calculated in percentage. Then yours will come Quality. So what do you get out of this? Can you? Oye. When these three are multiplied Availability, performance and quality What will you get from this? OE in percentage Will come. But I did one of the most I told you an important thing that whenever you If you have to calculate then always calculate You will do it in single shift and in minutes. What will you always do the calculations in? Single You will do it in shifts. No matter how double or triple Shift question should also be given. Always Calculation will be done in single shift and always In which will it be? It will always be within minutes. Correct Is? Now the last point is mentioned in this Nakaz on world class performance edge. I What did he say that you did? You Let's accept that I have removed it. Suppose your eye 75% is yours. Ok? in your percentage I got 75%. Now how do you know it's accurate? Is it or not? So how do you think it's good? Performance or bad performance? You have your Evaluate the performance of equipment or machines Took. Now you know what's good, bro. Or not? what else should I do in this Needed? So for that, Nakajima is here. This is also a Japanese technique. So Nakajima on S What does she say that there is no one who is 100% If the equipment or machine comes to OEM What is that? It is impractical. Look, someone Whatever machine or equipment there will be, it will be 100% I can't do pay work. Why? Because I just told you about plan time. Loss will at least be inevitable. Because this is the kind of time that will take It will take. You try so hard, employees lunch We will also do it, we will also take tea break, some I will also take small breaks, sutta breaks It happens nowadays too. Employees Corporate I walk a lot. So all this to them Will have to take it. So basically what will happen is that hey you When will you take it out? You are 100% impracticable. So how do you say that my machine or The equipment is very world class. It is working. Work at the very first level doing. So for that he said 100% So it is not practical. So you are practical Believe it or not, what would you say to 85%? if anyone equipment or machine if 85% of the same If there is more, it is good. otherwise he Are you coming here for no reason? Meaning any if the equipment 100 85% or If his percentage is more than that then he Meaning it is working well. World Class Is. Otherwise whatever he has, he is useless. He needs to improve. Ok? Useless doesn't mean you should leave it, just watch it. Of. No, you will have to improvise. How will you improve? These three losses you have Have you calculated the availability? Performance quality. Basically time loss, Speed ​​loss, quality loss. You should reduce these have to do it. You will reduce them. like supposing I calculated my 75% and this is my Is less than 85%. So I need to reduce these losses. Will fall. Now watch me reduce these losses. Where are you going to reach? Up to 85% I need to reduce these losses to reach Will fall. Now how do I know this? I am sorry. Now how do I know that I Reduce availability, performance to reduce in or reduce in quality Is? So for this I have the factor which Ideal values ​​are given. what about me is given? Ideal values ​​that Let's say my availability is more than 90% If it is there then there is no need to reduce the availability. That's right. If performance is more than 95% If so, that is also correct. Don't do anything in that. If the quality is more than 99% then that too Correct. Meaning, I've been called Idolly, Idol values ​​that a particular factor has How much above what value should it be? So This will be called your idol. Otherwise in this You need to work. Look, I An example of this is given. attention to this Understanding that a 10 manufacturing company What does that do? 100 units It produces. So the total output Produce. Ok? Total Output Produced How much do you have? 100 units. out Of which 20 units what is our? are defective. 20 units are defective. Ok? What is the total available time? 500 Of minutes. Out of which how much is the lunch break? 40 minutes. Machine breakdown 50 minutes of. Look, this is my lunch break right now. I told you about this lunch break etc. Are there? This would have been a loss of our plan time. Are. And what about machine breakdowns etc. Is? Unplanned time loss. Ok? So lunch What is a break? Plan time loss. and this Did my machine breakdown? Unplanned Time Loss Standard Cycle Time One Unit How much is given to make it? 3 Minutes. and overall equipment effectiveness. I have to calculate it. what about me Do you want to calculate? oe. Now how do I do this Shall I calculate it? First I took out Actual time taken. What do I have to remove? Availability has to be checked. So availability What do I need for this? actual Time taken. So the first thing I did was Calculated it. How will I get that? total How much available time do I have? give this I have 500 minutes. of which What is the total time loss? Plan Time Loss and unplanned. This is done 40 + 50 this is done 90 minutes. Ok? So actual time loss How much will I get? 40 minutes and this is 50 Minutes. I mean how many of mine? 90 minutes. Correct Is? These are my 90 minutes. So actually What time is it? 410 minutes my aa Went. If you do 90 minutes less than 500 410 minutes have arrived. Then plan production How will we find the time? So total available Make the plan time loss less from the time. So 40 minutes out of 500 minutes which is lunch You will lace up the brakes. Have you arrived? Plan There was a time loss. So how does availability come? Will you go? You have got 410 / 460 * 100 89.13% And how many idols are there? 90% of it is from Idol If it is less than 90% then what do we have to do? This Will have to reduce. You understand from here It comes and goes slowly. Second, what do we take out now? Performance. We have to deliver performance So what do we need for that? Standard Cycle time for total output produced. I have been given 3 units per unit. Meaning it takes 3 minutes to make one unit. Are. And I have to make a total of 100 units. So I need 300 minutes. So this happened 300 minutes standard time. Whose we divide To whom do you give it? From actual time. So 300 / 410 * 100 How much is this? 73.17% And how much should this idol be? Less than 95%. So this is also less than 95%. I mean, this loss to me Will also have to reduce. Ok? Last What do I have to remove? Quality. So how will my quality come out that total How many units are to be produced? 100 Of which 20 are defective. So good How many units are there? Good units my How many will there be? 20 out of 100 units were lost. So that means 80 units. Ok? 80 units Good units are done. divided by total Output produced with the which is 100 Units. So how much is 80/100? 80% which is less than what? What is meant by 99%? I have to reduce this too. So oh my How much did it cost? How much did I get, only 52.17%? Why did only 52.17% come so low? so little I came because of my availability, Performance and quality are ideal What are the values? It is less. So let me oi what needs to be done? Will have to improve. And when can I do improv? When I get this What will all the losses have to be made? to reduce Will fall. Because how many minutes of mine Whatever is there is getting wasted. Ok? What can you do this way? Oi You can calculate and always in what Will you come? It will come in percentage. because we Extracting effectiveness and efficiency Effectiveness is always in percentage. Never quantify it in numbers. Can. So this was your complete DPM technique. This is very important. In this generally Questions come automatically and MCQs It can be made very easily. with in a Minutes are solved. So you pay attention to him Reading from. It is quite interesting as well. And Link it all practically that This might also happen in some company. Well like this It's not that it takes a lot of time. little by little Applying to understand. Ok? as much as I I will tell you, apply as much as you want, it will be enough. Now Next What is the technique of lean system? Cellular Manufacturing. what does she say Is? So look what it says. There is a scientific way of production. These What is? Production or manufacturing There is a scientific way to do it. in which we What do you do? By removing the waste Increases productivity. We What do you do? Cellular Manufacturing to do this production or manufacturing in This is a scientific method. in which we waste Increase productivity by removing We do. And how do you increase it? We call the manufacturing system Divide it into cells. means how Understand this. Before I understand this, let me tell you I will have to give some traditional knowledge that How does it work traditionally? what am I Am I explaining it to you? cellular Manufacturing. What is cellular manufacturing? First, let's see what this means. That is the scientific way of production. You use scientific methods. You What are you doing? use the scientific method had been. Meaning, what used to happen earlier? First Understand that. After that you will get this scientific You will understand the method. See what you need first Did it happen? Let us first assume There is a department. One is dyeing Department. one is cutting and then the other is What about us last? Finishing. Ok? Suppose We have three departments. So what do we Want to make it? 1000 units suppose us Have to produce it. Take 1200 instead of 1000 Look, we are making 1200 units. Correct Is? So 1200 units are dyed first. Will go to the department. then by dyeing will go to the cutting department and then From cutting to finishing department Will go. So 1200 units in the first dyeing Will go into cutting and then into finishing. Ok? So what did this achieve? Your West A lot of etc. would be generated. means to assume If the dyeing machine breaks down, the cutting machine will also break down. It stopped, even the finishing stopped. Total 1200 All our units stopped. everything is bad Went. So what used to happen traditionally? one then Extra WIP used to come. working Progress would become useless. waste waste used to come from. If there is a problem with a machine There will be problems for everyone. If maintenance in These seemed like big machines to everyone. Maintenance and setup It took a lot of time. Do not customize because all 1200 units at once Will be made in. Production was delayed and Transportation seemed extra. How is the transportation? that the first 1200 The units will move from dyeing to cutting. Then From cutting to finishing then transportation It kept happening. But what happened now? cellular Manufacturing arrived. Meaning production A scientific way of doing it has come up. in which What did you do? What did you do? small Create sales. You created U-shaped cells. It is called U shape structuring. Now in this Why make UE? I will give you that too I will explain. what do you do what you Do you? Dyeing cutting and finishing. You What are you doing? Created small cells And a supervisor was appointed in it. Ok? What did you do? Similarly, dyeing, cutting, Finishing. What did you do? in three cells Divided it. What did you do? What did you do on each sale? 400 units were produced. Ok? every To produce 400 units per sale Thought your overall 1200 units It will be produced. Watch Cellular What manufacturing says is that your It has a manufacturing system and sales Divide it into two parts and what do you do? U Shape Structuring. I mean, it would have had another name Let's call it U shape manufacturing or Call it one piece flow manufacturing. Its These two names also exist. Now why is it like this Are they spoken? Understand this. what did you Kara? You made small cells that 400 Units will be made in a cell of 401, 401 In. So 1200 sales means 1200 units. Will go. You divided it into three cells. Gave. What will happen with this? One is a supervisor Will not have to run here and there. from the U shape What is the advantage of having a dyeing machine here? Cutting was also done nearby, finishing was done It also came nearby. and dyeing and finishing So, this happened face to face. So The supervisor who is there, he does it once All the products, all the things that are happening No dyeing, cutting, finishing managed in one go He does it. And 400 units in one sale It is made. So let's assume the first sale. It is ours. What is this? This is the first sale. And The dyeing machine also got damaged in this. So It's not that much of a worry because If the dyeing is bad here then the cutting Finishing will be effective here but only 400 of units. The remaining 800 units are It will continue to be made comfortably. in 800 units I won't have any problem. 400 units per It will have an effect. So the very major part is I will continue to produce comfortably. Such Dyeing, cutting and finishing are set here. Set it up here like this. Meaning, where we used to be 1200 units were being made at a time, there We broke them into pieces. Production Here we are told to break it into pieces. Cellular manufacturing. Scientific There is a method. So now read its definition. Yes, you will understand that we call it one piece flow. Production system speak and U shape Let's say manufacturing. Ok? We Create a cell. This is the scientific way of production. into which we divide the group of machines We do it. In which? In Working Sales What happens in that? Excessive WIP over It happens and so do the defective parts Do they happen? reduced to some extent Are. Because now look, whatever defects They will be made in 400 units each. One to 1200 units will not come. Meaning If the time machine breaks down here Defectives will be made here. While both of these It will be made perfectly on the second or third cell. So There is no defect in 800 units. Minor defects in 400 units It will be ours. Whereas what happened before was that if If you get the tank machine done then you will get full 1200 units There will be terrible defects. And WIP also comes as our fierce That from here it reached here WIP From here I reached here. whereas now something like this Not even there. So WIP also reduces. And our defective parts also get reduced. Went. So when we used the traditional method So what were our limitations, we did that Saw. So by doing cellular manufacturing The limitations we had were traditional. Everything gets eliminated and they are ours What do they become? Benefits. So cellular Manufacturing what do we say divide Make the production process small In sales. It is U shaped. This makes you What are the benefits of Shape? supervisor who has to travel less and all that The process can be seen at once. Now He is standing right here, standing right here Can also see dyeing, can also see cutting and can also see the finishing. so how much The supervisor benefited. And what first We used to have separate departments for each department. Supervisor Suppose there are two supervisors here. There are two supervisors here and two here Became a supervisor. First, we should separate Had to keep it. Whereas here now there are three The work will be done with this only. placing six before one Were. Now it has come down to three only. So the supervisor is a The bar will also see everything and he too You will understand. Now what are the goals or benefits? Are there? Cellular manufacturing WI also reduces, waste is reduced goes. If a breakdown occurs in a cell So it will not affect the rest of the sales. Because you are making them cell wise. Setup time is reduced. of customization There should be scope for it. Now look what you are doing yes? Maintain sales of 400 units each yes. So suppose some customer will demand that You can get the extra amount on my 400 units. Which is to put thread or something of this type Make the design. So you can customize it comfortably You can get it done. So there is scope for customization Gives. Then there is a delay in what happens goes. which caused delays in production Don't assume this is a dyeing machine. I got spoiled. So all my production Delay was becoming traditional meaning while Yes, this will not happen here. Suppose if your Even if the dyeing machine breaks down, one cell It will have an impact. The remaining two cells are comfortable Will keep working. Ok? So this eliminates What does he do? Delays and eliminates Transportation. Now you have to run away again and again There is no need to dye cuttings if from cutting to finishing because everything that is It is in the same place, in the same area. So you You can work comfortably in one area. Better use is made of human resources Scheduling remains. This is explained in this. But look, everything has its advantages and disadvantages. There are also. Ok? So now look what you Why did you invest in cellular manufacturing? Because you wanted to flow efficiently The production is correct Keep going the way it is. All these things are ours No, it is not. But also in efficient flow You need to know about cellular manufacturing. Difficulties that may have to be faced Is. You may have to face some difficulties Is. Understand what all is there. Suppose most First comes the exceptional element. What does exceptional element mean? Now understand this carefully that what used to happen earlier was that dyeing, cutting, Finishing all three of ours at once used to be. Meaning a group of 1200 units It used to happen. So we need one machine for each of the three. Should have. Dyeing, one, cutting, one more Finishing done. One would have been ours. But what did I do now? Made a cell. So I also need three dyeing machines. Cutting I need three of them and also three of the finishing. I want three. Why is it needed? First Sale I became one. One happened in another cell, one It happened in the third cell. So everyone has three Need a machine. But let's assume it's exceptional. element or dynamic part demands in Both have the same meaning. understand its meaning that either any part of the machine or of the machine or So is it a part or the entire machine? Is? Elements are like some part of the machine Or consider the element or machine as such What are those who are? Highly customized or What is Highly then? It is exceptional. Meaning You get it made in a very customized manner. The machine is like this. So that whenever if you you Earlier you used to take only one. what are you now Will you take it? If you take three, your cost will increase. Will go. So to flow efficiently you This difficulty of yours arises first in the affair It will happen that your cost will increase. Will go. So exceptional elements and dynamic This was the meaning of part demand. then next Now comes machine distance. Watch Machine Distance Bol Do, Part Routing Bol Do or Inter End intracellular material transferring or Say anything. All three have the same meaning Is. What does it mean? that the machine that is Let's assume this is a cutting machine. these cuttings This machine is so useful that it can run for 1500 which alone would have taken up space of 1500 yards Is. So instead of one and a half yards, this cutting machine I left. So when we move from dyeing to cutting We are going, so it will take us an hour. Is. Meaning, for every 400 units, we get one hour. It seems. So where does it grow? So It takes only one hour for 1200 units. When? 400 400 400. Now our separate 3 hours It will cost extra. Where work is done in 1 hour He will be leaving in 3 hours now. So our What happened? Because of the machine distance While our efficient flow we want to One turned into our problem. So the opportunity Ours turned into a disaster. Opportunity from disaster I did not change. What is such part routing? It is said that some part of the machine is such that We have a lot to carry it with us. Time passes. That and Inter Intracellular material transferring What do you do from here to this department? Some material went into it. from here to here I have arrived. So basically, everything that we have in it Time passes. So we who are efficient I wanted the flow, but it was the opposite of ours. It gets created in the problem. We I am not able to identify which one Where are the cell units lying? Ok? Next comes the bottle like machine End parts. Let's assume that the machine has no The part or the machine itself is such that what It is expensive, it has become very expensive or it is very expensive. It is so costly that it is difficult to afford it. Can't do it. If we install multiple machines Neither is the production cost of our business. will increase so much that efficient flow You won't be able to do it. Do that or do that It's a matter for later. Your production cost is Whatever is there will be unnecessary increase. Then Next comes machine location and relocation. To move and locate the machine or setup time to relocate, etc. We spend a lot of money. So our We would have difficulty in efficient flow Is. What does cell load variation mean? Is? Watch cell load variation and operation Completion times by linking it together Understand what it means that your Let's assume that you made these three cells. You What did you do? You have created three cells. So Suppose the first sale is very efficient. It works. So it easily has 400 Units are created. while in the second cell Some workers work slowly. Are. So instead of 400, only 200 units were made. I get it. And the third cell is of 400 Instead, you are only able to make 300 units. yes. Ok? So what is causing the sale? Variation occurs such that some cells are very They are working well. Some cells are absolutely are not working and some cells which are mid The levels are working. not much better Much worse. So the variation of cell load is goes. Because of which what would have happened if one The difference in operation completion time goes. All of these cannot operate properly Due to which the work gets completed on time. Will not done. Then it is mentioned that the cell What does reconfiguring mean? Let's assume you have a lot of demand. Went. What should you do if the demand is high? Will it have to? The size of your cell You will have to increase it. what are you doing right now were you were only producing 400 units Were. Let's assume you need to do 600 units. Will fall. So you need to reconfigure the cell. have to do it. Meaning efficient flow if you If you want to bring it, you have to resize the cell. Will have to. Meaning more setup etc. will have to be done. Machines can be installed and if they have to be installed then that is All your time etc. will also be spent. cost Etc. will also be yours. So this is who you are, right? Difficulties is a new addition. You remember them How can you do it? For this I made a short It has been told as well. Remember that. EDM PICOBMC Watch if you remember this If you do it, you might not remember it. You What are you doing? I did a quick line It is made. You should remember from him that ED looked at the market price index and he saw There is a lot of commotion going on in the company. The ED Market Price Index looked and looked There is a lot of commotion going on in the company. like this So you just remember a little and make something of your own If you take it, you will remember it easily. So What is cellular manufacturing? a way to produce or manufacture It is a scientific method. And look at all these parts. Which part is this technique? lean Is part of the system. So what is everyone's main aim? Is? How to minimize waste Let's do? So how is this helping? These The manufacturing system of production Isn't he in manufacturing sales? He is dividing. Which 1200 units once You used to produce in. now 400 400 By doing this you divide them into three cells Do it and do the production comfortably. So his There were some pros but it also had some difficulties. We saw that too and for this I I have told you a short form. Now look at this Our last technique of lean system What remains, and what is also very important, is that What is? six Sigma. Now pay attention to this Understand. See, when someone says six Sigma is so scared that brother, this I don't know what technique this might be. But It is a very simple technique. I love you very much I will explain it in a simplified manner. So look What does Six Sigma say? This quality It is an improvement technique. What is this? It is a quality improvement technique. Whose What is Main AI? that whose main What is objective? that all the defects Eliminate the. Which defects that Affecting customer satisfaction Are. And practically achieve zero defect Help in doing it. Look up Six Sigma What happens? Let me explain it to you further Well. six Sigma. What does Six Sigma say? Quality improvement technique is that you Improve the quality as it is. Ok? How will you improve the quality? that its What is the main objective that you waste Eliminate whatever is there. Which waste You will eliminate what your customers Affect satisfaction. because these What is everyone's AI? Minimizing waste. Achieve customer satisfaction. Correct Is? So there is a quality improvement technique. When will you improve in such a way that all of you Eliminate waste that is not customer-friendly Affect satisfaction. End In practically achieving zero defect Please help. Practically Zero Defects Help me achieve it. Now practically How will you achieve zero defect? understand. Look, when we read the chapter Modern Business Environment So I told you One thing I mentioned was cost of quality. Ok? So I told you the cost of quality. was what you have to do is that the product or To ensure quality in service, you Have to spend money. how can you do that yes? You have two types of costs. One Cost of good quality, cost of bad Quality also known as cost of poor quality You speak. So in cost of good quality If you spend money then the cost of bad The quality will automatically decrease. Now good There are two types of costs in quality also. One Prevention cost, an appraisal cost. So Prevention and cost appraisal costs that Isn't appraisal cost also called detection cost? Sometimes I say it. So prevention cost And in the appraisal cost, I have I told you about the multiple cost. Quality Training, Quality, Review, Field, Testing, Field, Trails and In Testing and inspection, equipment, accuracy, Check, Education of Supplier, Supplier I told you about the screening cost. Was. So what does Quality Six Sigma say? Is? That you get practically zero defects Have to achieve it. So what prevention cost? And on which appraisal cost do you spend money? Do what you do? Practically Zero Achieve the defect. What prevention now? Or spend on appraisal costs. Which one Pay? I said so many costs. What will you spend it on? in actual You learned in Cost of Quality that you Have to spend money. But where will you do it? They Who tells? six Sigma. So If you look at this topic practically, then you It should have been in the same chapter. But He has given it here, so you can read it here. Take. Just keep the concept in mind. That How to achieve zero defects practically that prevention in the cost of quality, which Prevention cost and operational cost Do you want to spend money? Who is this to you? Does he tell? Six Sigma explains. So What does Six Sigma say? If once You have understood this, haven't you, that practically Where to spend money and how to waste it If you want to eliminate then you basically six You will implement Sigma. You can do it easily You can. So Six Sigma is not just that you are in the manufacturing industry You also invest in the service industry You try to turn things around. Meaning to do things according to your Whatever is going against you is in your favor. Come in. You eliminate quality issues End defect. So Six Sigma is just Not even in the manufacturing industry It seems. Even in the service industry, your Looks proper. What does Six Sigma say? Is? What does it say that you have 10 lakhs? Units were created. In just 10 lakh units Only 3.4 units are defective. Should be. Defects per million. What Are you speaking? 3.4 defects per million. Meaning 10 lakh units per million means 10 lakh Only 3.4 units were defective in the units Should be. Whatever the rest is, what will happen Needed? It should be absolutely correct. If you have Having done this means Six Sigma implementation. Done it. Look, don't do this for anyone. It is not possible. means very much The situation is similar. So if you do this when When you read more chapters, you will It will be understood that the average person in the industry There is wastage, that three to four sigma. It happens in between. 3 to 4% wastage It is in the middle of the waist that means average Which is 3 to 4%, it will definitely be wasted. All this happens on the basis of belief. So these are some levels I have told you on the basis of which you will know It will seem what quality your business has Yes, what is the profitability. understand that means First sigma is given. You get a level Given is the first sigma in which the correct How much does it make? 31% units become correct And how many are defective? 69 and per million Talking about 6,91,000 which is your unit It is made right. A sorry is made defective and The rest becomes correct. So what is this Quality is worth the profitability. What will happen in this? You will suffer a loss. Meaning Imagine a company where 31% is just The correction is only 69% which is a defect. Meaning, due to correction, double defects are created. If there are more than that then what is that company will be able to survive whether its product or Quality of service that is service survival What will she be able to do, she will be in loss Just what does two sigma say? Even if reverse, what will be non-competitive? What does Three Sigma say? If 93.3% is correct and 6.7% is defective then this What is the industry average, we are here Usefully assume that the industry's What will be the average, between 3 and 4% What does 4% say? They say that it is above average. Slightly above Five Sigma Below Perfection and What is Six Sigma called? Perfection means making 1 million units. 99.9996% Whatever is there should be right only0034 Meaning only 34 units are defective. and everything else should be correct So this becomes near perfection which It is very difficult to achieve. then further intake Sigma etc. are a far cry. Went. You can't even take that. Achieve only Can't do it. So that's why he is more They don't even take it. So this is what it means Six Sigma means 3.4 defects Should be but million. means out of 10 lakh Only 3.4 units should be defective. Everything else is fine. Now I look at you what did you say? What is Six Sigma? In practically achieving zero defect Helps to know which appraisal is appropriate where What Prevention Costs You Have to spend money. So now for what it is No two methodologies have been described. Two Methodology. One is DMAIC and DMA DV. And why have you told this? six Sigma To implement this you need two The methodology is explained. DMAIC DMA DV. Meaning to understand this. First we complete DMAIC will understand. Then we DMA DV Will understand. Then I will give you the comparison. I will get it done. Sorry. Now see what DMAIC says? DMAIC says that if you have any in an existing product, process, or service If you want to improve, what do you use? do it? DMAIC. Define Major Analyze Improvement control. what is its full form Is? Define Define Measure Analyze Improvement control. What does this say that any existing productive process or Existing product, process or service If you want to improve the service then you can use What will you do DMAIC now, which ones will you You can use it in circumstances that Project that is going continuous Be a part of improvement continuously You are improving it Be it a project, part of it or a single You just have to change the process. I will explain the example of a single process. Like Ola, its scooters have come. He had to be recalled. Ok? Now When Ola recalled the scooter, they came to know I think I know the problem with this My scooters are very good. But only There is a problem with the battery. So just single The process had to be altered. only in battery Suppose I had to improve, I was single. The process needs to be altered. and his It is an existing product. I mean, his scooter Already made. He is doing it in them There is improvement. What are you doing in that? He is improving. So what happened? DMEIC became an example. competitive action or technology that is It is stable. customer behavior which is It is unchanged. Customers who are like this are stable remains. Customer behavior which is price Forget about price etc. his behavioral sense Meaning it is exchange. So basically you remember this How can you do it? You remember this. C to PS Customer behavior is unchanged. Compete The action or technologies are stable. Project that is Uncontinuous Improvement Is a part of. and only single process which Yes, we have to alter it. So what do we use Can you? DMIC will be used in this. Now Five phases of DMAIC have been given Are. Define Major Analyze Improvement Control. What does it mean that First of all define your problems here do it. that you actually have problems What are they? Then you can create project goals. Tell. What are the project goals that the customer To achieve satisfaction. What else? Achieve zero defect. And then what do you See? Look at the customer's requirements. Then What should you do? Do the major. Determine the current performance of my current performance What is the problem with the process? Annalise Do the root cause that when you have current performance Saw. You saw that this particular That's my problem with cheese. Look, read this It seems so easy, doesn't it? But if the company Whenever you sit down, you will sit down to do this work. If Six Sigma loses its mind Because it is so easy to identify the root cause. It doesn't happen. If it were that easy, then every Do some very good business. The business itself Because people are not aware of the root cause itself. Can't identify. Then improvise How can you do it? Whatever defects you have Etc., these are selected, eliminate them. Remove the root cause. Then control it. Control means that you have controlled the current You have to control the performance Is. But also your performance for the future Has to be maintained. It's not like you did today If improvements are made, it will remain fine for a year. Then you did the same thing. Now useless scooter Started making it. Don't do this. you always Improvements have to be made for the future also. So Maintaining Improves Process and Future Process in Performance. Look at this you don't You will understand DMAIC when I tell you Let me explain an example of this. What I It is taken in this. What did I do in this Told that OnePlus is a mobile company whose Is it an existing product? OnePlus 9 Ok? What is he doing? Defects etc. is facing. Hanging problem Has been. There is a problem with the touch. Camera It is bad, damaged and getting late delivery Is. So company H6 Sigma Lag Apply Karna OnePlus 9 wants to improve The quality of. Look, the first thing is that The company has informed you that this DMIC is DM DV's, you will say that If you take this as an example then you will know Try to think what this is Existing product is existing I have talked about the existing product. If you talk about the product then this what happened to you I talked about an existing product, meaning Talking about DMAIC, what are you You will apply DMAIC, you will apply Six Sigma Which technique will you use? Methodology DMAIC wali, what would DMAIC say? Define Measure Analyze Improve and Control: So what should you do first? define do it. What will you define? First of all Problems. So all the defects Identified Above. All this is yours There are problems. What is the problem? Hanging Key, Touching Key, Camera Key, Damage Of, late delivery. This is the whole problem. What are the customer requirements that you We have to make defect free products. To you What to make? Defective free product. Only then will the customer be happy. And what are your goals? That by removing all the defects you What to do? Achieve customer satisfaction do it. And the second is practically zero defect. Achieve whatever you have. Ok? Then what to do? Major the current process. You have all the current Looked at the cost. Appraisal, Prevention, Appraisal, Internal failure, external failure, everything Do a cost analysis. And you saw Currenty The company is on Three Sigma, Four Sigma. She is working. Look at any company. Sigma will not work on Two Sigma Because she is at a loss, non Are competitive. So current performance What will happen? We have three sigma, four sigma I assumed and left. Now what did I do? Get the whole process examined. then I know There are three root causes in this. What? one then We do not train our workers Give. training is not provided due to There is a problem with the camera and also with the touch. Even in hanging. No supplier reviews Does. Meaning suppliers give us raw materials If so, we cannot review it. Have been. There is a weak distribution process What is the reason for this? Our late delivery Getting and Damaged Goods Going to the customer. So how do we improve now? do? What will we give? What we supply Will train the workers. supplier's Will you review it, what else will you do? own Improve the distribution process do. How can we control it? We daily daily regularly regularly I will monitor that everything is going well. It is not happening. What can you do like this yes? You can install DMIC. So look and listen How tough is it in DMAIC DMA DV while look how easy it is. How many Easley You have attempted this question. This In this way you have to attempt. So What is DMAIC? existing process Improving the product or service Who helps? DMAIC When Who-Who Will you use it in such circumstances? When Project Ongoing Continuous Improvement Be a part of. Single process only change Have to do it. Be it competitive action or The technology should be stable. customer behavior You are unchanged. Five Phases of End Define Measure Analyze Improve Control. like this You can use it from. Now Next The last methodology in this is DMA DV. What this says is that when you get new Development in product, process, or service what you have to do is develop Designing a new product, process, or Service, you say DMA DV, when will this happen? Products and processes in your existence You are not in existence because if If he is in existence then he is DMAIC Done, right? It means in an existing product. What should you do when the improvement is done? I have to do it in the new, when will it be new, when will it be It will not exist, what can you do? Existing process has been optimized Using DMIC and other processes means Suppose you have your own product which You Use up has been improved. What did you do? Any product has been improved by applying DMIC Of. Suppose we have to take the example of OnePlus 9. You improved it. Now you can take his advance OnePlus 9R is going to launch its version here. So what will we call this? This is its advance There is a version. Meaning you applied DMEC to it Improve it and you can make an advanced version of this. If you are bringing it then it is new. This new The product is done. Will be known as New. OnePlus 9R is the new product. What happened here? DMA DV. Ok? A project that is strategically important Should be. Multiple processes in this Changes should be made. Competitor action that There should be a change. What about customer behavior? yes? Let there be a change. Meaning, its just the reverse Just Reverse EMA What is the just reverse of this Done? DMA DP. Ok? Now in this too There are five majors. There are five phases Your. What? First, define project. Goal and Customer Deliverable. project The goals will remain the same in both. customer's Achieve satisfaction. practically Achieve zero defect. But here at What is? Customer deliverables. means customer What does one actually need? We have that Will have to see. Then we will measure the customer What are the needs of the customer? Are. Meaning the customer actually wants What is there? Then we will analyze the process Option. What does it mean? that the customer's Which of the needs satisfy you? I can do that, I will analyze it and then I will design the process in such a way that How can I meet the customer's needs? Meat I can do it. And I will verify that the Customer performance means my The performance of the company is that of the customer She is also able to satisfy her needs. Or I am not able to do it. So first of all I What should I do? I will look at the project goals that That my beans live. customer's Achieving Satisfaction and Practically Achieve zero defect. Then the customer's I will see that the deliverable is actually with the customer. Who needs what? Then the major will do, Determine customer needs We will analyze the process options. Which customer needs are met? You can fulfill it. What can we do for him then? do? They will design the process that We are dedicated to fulfilling the needs of our customers Can help. Then we will verify that the process we designed was customer driven. I am actually able to fulfill the needs of Is it that I am not able to do it? This is how you do it Will you do it? He has given an example of this Understand That there is an Apple company which is making iPhone 20 Is going to do it. I thought very far ahead It was said that Apple company is going to launch iPhone 20 It is going to be implemented in the city She wants it. So iPhone 20 which is for the customer Satisfy your needs. So That iPhone 20 Will Meet Customer Needs and Will Achieve Zero Defects. What is the company going to launch now? Is? New iPhone new clearly said. So What is this? DMA DV. Whose is this, yours? Have you answered the question? DMA of DV. So It will look exactly the same. Define Measure Analyze Design and Verify. So first of all define What will happen? Project Goals. project The goal is to achieve customer satisfaction To do and practically achieve zero defect to do. So our project deliverables What will happen? What are our customer deliverables? Will it be? That Ensure No Defect Of Earlier Version. Like iPhone 19 was there in it. The defects that were there are no longer there. Correct Is? These became customer deliverables that What the customer wants is like iPhone 19 I was very stupid of you, he came here, right? What do they say about defects etc. Not in iPhone 20. This to the customer Needed Now that I've majored, I've seen that What are the customer's needs? Customers are speaking If two cameras are enough, it is enough. Me Need a triple camera. battery should be good The screen size should be larger And the weight should be less. customer's These are the needs you have identified. Then you Analyze what our company is Which needs can it satisfy? I I can do the triple camera one. Battery I can improve. screen size I can make it bigger. But I am not underweight Can do it. The iPhone will remain heavy. If it falls on your face, your nose will break. this kind of He will remain there. Consider it as his USP. So what did you do? Design review done, Did training and did research. Ok? Meaning Did research and provided training. Then we had that Designed a kind of product. iPhone 20 You designed based on customer needs. Now You will verify. What are you in the last Will you do it? Will you verify that the iPhone 20 Performance is what meets the customer's needs Are you able to satisfy me or not? doing. This is how you check it. These It is DMA DV. So basically DMA What is DV? A new product process It is used for service. where What are the processes of the product? Do you use it in circumstances? When The product should not be in process. When we DM felt that the product I had improved its advanced version. I am going to lunch. of the Product Act There should be strategies in multiple processes Competitor's action needs to be changed or Technology is changing and customers What should be the behavior of DMA? Its points are just the reverse. Gaya DMA DV then we define in it What are the goals of the customer? What exactly should I major in? What are the customer's needs then? Which of them can we satisfy? Let's analyze them Design according to performance and Then we cross-verify what we have Performance design is actually You can also satisfy the needs of the customer If we look at it this way, whether it is there or not So what are the differences between these two? Watch BAMIC which is existing on work Does. Reviews Aclisting Project process or service. While DMA What does IC DMA DV DM DV do? Designs new product processes Service. What is DMAIC? It is reactive. It means taking action after some work is done. Like Ola should recall its scooters. You. Meaning when you saw poor battery life Is. Why are you doing this? to launch You are recalling after. You are reactive You are approaching. While you should be proactive Should have stayed. You already have testing Should have done it. Anybody in the market Testing the product before it is launched it occurs. So why did you do proper testing? Didn't you do it? Rupee benefit quantified. You What do you do in this? HO in DMC You can see the benefit that your money is How much did it cost and what were the benefits? It is because you are doing recalls etc. I mean You are taking proactive action but The one in DM DME DV is Rupee Benefit difficult to quantify because In this you can buy the product which is Dizzing Fuzz. is in. You don't have the product you currently have. Have done. You're just designing and looking Are you satisfying the needs of the customer Whether he is able to do it or not. then this What does DMAIC do? Capability It increases. while DMC DMADB Increases capacity. DMAIC It is a problem solving method. While DMDB Is this a development method? In the product Brings development. So this is its difference Were. Then now look if you look at the DMA IC DMA DV in both of these, DMA is DMA is common in both. Meaning Define Measure and Analyze. So these three These points are common. So for these Some common tools are also mentioned. Common Tools are also mentioned. See the new additions And MCQs can also be made on these. So Understand this carefully. Define, Measure, Annalise. These three words are common. So that's why common tools are made on these. So what is Word? Common tools. Ok? What tools are there now? When you, if someone also from your problems project goals Customer Requirements or Customer Delivery Wiles, if you define it, how do you can you do what you do project Make a charter and plan, you are a complete Create a document where everything is There will be descriptions etc. that authorization What will happen, what is the purpose, what is the timing? How to do it, then what do you do? Effort Impact Analysis and Process Mapping, you see all this, you see the current situation Look at it and make diagrams etc. on its basis. Draw a tree diagram of this type of major. Meaning what happened to the quality function Deployment, you should see that in actual See how the work etc. will actually be done. Who has to do what and how. Do the major. Measurement Systems Analysis. One you complete What to do? Look at the accuracy. Perception Look at the presentation. Look at the stability. how how Will come. Then make a check sheet i.e. tally sheet. Look at the capabilities of the process. Annalise's What does it mean? Make diagrams etc. Bars Done, Pareto diagrams or charts, etc. Have become. Graph analysis etc. was done. Now this What can you do by creating these kinds of tools? You can use all three of these. Common Faces Which are there. So what are the common tools? Are? These are all common tools. You these Read it two-three times. You will understand quickly You will know which tools are in which. Suppose histogram is what I define happens in, happens in major, analyze It happens in. You should know that happens to Annalise. In this way its Questions will come. Ok? Now watch Six The sigma you are implementing It also has some limitations. Not so six By doing Sigma everything will be good for you. It also has some limitations. He is very much Is. What is that first of all? These Focuses only on quality. No one to this It doesn't matter how much money it costs Are. How much are you spending? This It doesn't make any sense. It's only about quality Focuses. what would have happened because of Meaning there would have been a substantial investment Is. Meaning you would have had a heavy expenditure. Is. You see how much you focus on design etc. You are spending money. You have to pay for recalls etc. How much money are you spending on your single In changing the process etc. So all this So you should have seen it earlier. So Your expenses become very high. third This complicates some tasks. For. What does complicated mean? That What does it do? Basically this root cause It is not enough to identify It is complicated that the root cause It is not so easy to identify. As We have taken examples above, in this We quickly saw that this was the root cause. Whereas practically it is the root course It takes a lot of effort to identify it. Meaning, they are not able to identify you. You have to do a lot of analysis. Are. Like you see so many graphs Etc. have to be read. all these things Have to see it. So you have a lot of time This becomes consuming. and need not Work well with intangible results. Meaning What is? This will boost the morale of the employees. or increase the efficiency of the company etc. It doesn't help to do it. This is just Focuses on quality etc. These Specific type of process. means either You can install DMIC or DME DV. one then You cannot use both together. Second Focuses on a specific type. One Only on quality or at specific place Focuses. Does not focus overall. So What is this about it? There are limitations. Now this So far, what we've covered is Six Sigma. Neither our lean system means this chapter The first part of this is the lean system and The lean system part of innovation We have developed all six of its techniques. Completed it successfully. Now its last This second part of which remained small is process innovation. And it's just that It is there. What this says is that if you If you want to bring innovation in the process, what do you do? do it? Implement new methods. Now In which areas do you implement new methods? Will you do it? in production, delivery or In support services? See if you like new methods if you bring them into your production So you can innovate in the process. If you bring in delivery, you can innovate. Or do you bring it to the support service. Delivery Look, nowadays you will see that online First custom first then online some deliver only It did not happen. Now, groceries etc. Online delivery started. Infact Medicines etc. are also available online. Earlier it used to take time. Now it has come to them that 10 Whatever is there will be delivered within minutes. So How advanced it is becoming. So he What did you do? To innovate new methods What did he do? New methods in Implement it. In which did you do that? They Made in delivery. How about in the support service? Like Amazon's earlier call center service It was quite useless. He improved it What should I do now? Made it very amazing That you can easily buy your goods on Amazon. You can register complaints. Easy Resolve it quickly by discussing it You can. How do you go about end production? Will you do it? what you read about production techniques, JIT implemented, cellular manufacturing I applied it. This is how you can innovate and You can. Can implement new methods yes. So what happens to you? Process Innovation. So with this, this chapter of ours It is completely complete Whatever it is, we have covered all the topics one by one. One has covered it in detail and whatever is in it I also had respectable examples. I have explained it to you in detail. So this chapter It was quite easy and when you read in the module Nor are all the chapters given in 60-70 pages. Are. Whereas we have simplified what it is. And it has been limited to only 13 pages. All in maximum 10 to 15 pages The chapters are yours. So you try Read them carefully and you can relax. After reading these, all your questions will be answered. You can easily attempt it. So for today That's all everyone. Thank you so much. Radhe-Radhe.