The Small Scale Industrial sector plays a significant role in the industrial development of any country. In India, the survival and growth of small scale industry largely depends on its ability to innovate, improve operational efficiency and increase productivity. To maintain business arena in Small Scale Industries it is of most important to win hearts of customer by delivering products according to the requirement of the customer, quality, time and cost of the product of service. Using the concepts of ERP, inventory classification scheduling, Likert scale to minimize the Tech-Ed company’s problems in the area of purchase, production and service The main purpose of this project is to bring lean concepts in small scale industries in India, where industries are working on very old and obsolete techniques of manufacturing and there is no any working culture available and even they are not thinking to develop it.

1. DEPARTMENT OF INDUSTRIAL ENGINEERING AND MANAGEMENT
RAMAIAH INSTITUTE OF TECHNOLOGY, BANGALORE-54
(Autonomous Institute, Affiliated to the VTU, Belgaum)
M. Tech project titled
PRODUCTIVITY IMPROVEMENT OF A LABORATORY EQUIPMENT MANUFACTURING
COMPANY THROUGH PRODUCTION AND OPERATION MANAGEMENT
2nd YEAR M.TECH in INDUSTRIAL ENGINEERING
Subject: Dissertation; Sub code : 12MIE41
AKSHAY HEBBAR P
Under the guidance of
DR. M RAJESH
ASSOCIATE PROFESSOR
DEPT. OF INDUSTRIAL ENGG.

2. ABSTRACT
• The Small Scale Industrial sector plays a significant role in the
industrial development of any country.
• In India, the survival and growth of small scale industry largely
depends on its ability to innovate, improve operational
efficiency and increase productivity.
• To maintain business arena in Small Scale Industries it is of
most important to win hearts of customer by delivering
products according to the requirement of the customer,
quality, time and cost of the product of service.

3. • Using the concepts of ERP, inventory classification scheduling,
Likert scale to minimize the Tech-Ed company’s problems in
the area of purchase, production and service
• The main purpose of this project is to bring lean concepts in
small scale industries in India, where industries are working
on very old and obsolete techniques of manufacturing and
there is no any working culture available and even they are
not thinking to develop it.

4. Company details
• Tech-Ed Equipment Company has completed a decade of
existence selling its products to more than 400 Engineering &
Technical Institutions in India.
• The company over the years, it has developed a highly
motivated & efficient team of Production, Sales, Service
Engineers &Technicians
• Established in the year 2001, Tech-Ed Equipment Company,
are one of the eminent manufacturers and service Provider of
Equipment for technical education.

5. Their Range Includes:
• Fluid Mechanics & Machinery
• Ref & A/ c Lab Items
• Heat Transfer Lab Items
• Metrology Lab Items
• Engine Test Rig

8. INTRODUCTION
• Production and operation technique has a great importance
with Indian small scale Industries.
• Indian small scale Industries are using top to bottom
(management to workers) approach for information flow
thereby not asking for any suggestions and ideas from
workers (bottom).
• In small scale industries there is less importance for training.
• To enhance the working skills or motivation of the work force
lean Manufacturing technique is essential and helps in making
a habit in the industry to learn and teach.

9. • There is missing a feeling of responsibility in Tech-Ed
equipment company because there is no management
information system and no store management and there is no
production planning and control system.
• So as an industrial engineer it was my motivation to
implement some of the lean techniques in small scale
industry to increase the productivity.

10. Problem Statement
1. PURCHASE:
• Improper Material Management, Storage of material, inventory control
• (Since our products are not mass production products)
• Improper Follow ups and tracking of sub-contractors PO’s, inspection of the
input raw materials and trading items.
2. PRODUCTION:
• Unable to achieve production target, and execution of production as per
planning.
• (Because some of the production engineers and technicians involved in service
tours and improper material management)
• Need of latest / accurate tools and machineries for production work
3. SERVICE:
• Improper maintenance of service complaints, service quotations, attending
service complaints and billing, service payment collection. (Both Warranty and
non-warranty cases)
• Unable to get customer feedback / maintaining of feedback letter or service
completion letter
OBJECTIVE – The Main Objective Of This Project Is To Minimize The Inventory,
Optimize The Rate Of Production And Maintenance Scheduling For The Tech-
Ed Equipment Company.

11. 5S
5S is a workplace organization method that uses a list of five Japanese words:
seiri, seiton, seiso, seiketsu, and shitsuke. These have been translated as
"Sort", "Set In Order", "Shine", "Standardize" and "Sustain"
Why implementing 5S?
Reduces process lead times.
Standardizes working procedures
Improves customer response time
Install guidelines that drive work place
Contributes to cost efficiency
Helps to identify wastes
Builds a culture of continual
improvement
Removes waste in workplace.

12. Ways To Increase Productivity At Manufacturing
Facility.
1 – Reviewing Existing Workflow
• People
• Processes
• Equipment and technology
2 – Commit to Scheduled Maintenance
3 – Train and Educate Employees
4 – Organize the Workspace
5 – Maintain Optimal Inventory

13. Problem Background
Types of
defects
Rejection
numbers
Cumulative
number
Defective
percentage (%)
Cumulative
percentage (%)
welding 6 6 75 75
Metal 1 7 12.5 87.5
personnel 1 8 12.5 100
•Data collection
Using FIVE W’s and ONE H i.e. Who, What, Where When, Why and How
•Defective Parts and Percentage
In the year 2017 – out of 54, 8defective products is seen(April 2017 –
November 2017)
Rejections of equipment is due to improper welding , metal used ,
personnel

14. Leakage caused due to bad welding
OVERLAPPING WELD CRACK

15. Cause and Effect diagram
Fishbone diagram for Leakage in equipments

17. Assigned production Order Details
• Work order for TECH-ED Equipment company
• Scheduled start date : 01-04-18
• Scheduled completion date : 30-04-18
• Anticipated completion date: 1st set on 30-04-18
• Customer Name : Bajaj Inst. Of Tech - Wardha

18. WORK ORDER FORM

19. WORK ALLOCATION
Standard time =normal time +allowance Where; normal time =avg time *rating factor.
Calculations
Standard Time = Normal time + Allowances
Normal time = Average time *rating factor
Rating factor =
𝒐𝒃𝒔𝒆𝒓𝒗𝒆𝒅 𝒑𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆
𝒏𝒐𝒓𝒎𝒂𝒍 𝒑𝒆𝒓𝒐𝒓𝒎𝒂𝒏𝒄𝒆
Normal time= 225 *
𝟎.𝟖𝟔
𝟎.𝟗
= 215 mins
Standard time = 215+12% allowance
= 240.8 minutes = 4 hours
Workers No. of equipment
allotted
Operator 1 6
Operator 2 5
Operator 3 3
Operator 4 1

20. TASK ID TASK DISCRIPTION TASK DURATION
1 Frame 4 Hours
2 Tank 4 Hours
3 Adding Pipeline 2 Hours
4 Dismantle 0.5 Hours
5 Painting and Powdering 3-4 Days
6 Reassembly 2-3 Hours
7 Electrical Wiring 1 Hours
8 Factory Testing and
Calculation
0.5 Hours
9 Inspection by Customers
10 Packing and Dispatch 0.5 Hours
Holidays No of Working Days Total No of Working days
5 (Sunday) 25 25
Standard Time for Each Process

21. Process Flow Diagram

22. TANK AND FRAMES

23. After Powder Coating
Electrical Wiring

24. Final Assembly
Packing and Dispatch

25. TOOLS AND TECHNIQUES
• ERP
• Inventory Classification
• Scheduling
• Cause and Effect Diagram
• Pareto Chart
• Likert Scale

26. ERP
• Enterprise resource planning (ERP) is business process
management software that allows an organization to use a
system of integrated applications to manage the business and
automate many back office functions related to technology,
services and human resources.
• Enterprise resource planning (ERP) is a process where a
company, often a manufacturer, manages and integrates the
important parts of its business. An ERP management
information system integrates areas such as planning,
purchasing, inventory, sales, marketing, finance and HR.

27. TYPICAL BUSINESS PROCESS FOR ANY
MANUFACTURING COMPANY

28. Major problems with the decentralized system
• Numerous disparate information system generates
individually over time which are difficult to maintain
• Integrating the data is time and money consuming
• Inconsistencies and duplication of data
• Lack of timely information leads to customer dissatisfaction ,
loss of revenue and reputation
• High Inventory, material, and human resource cost.

29. Centralized System

30. Key benefits of the centralized system
• It Eliminates the duplication, discontinuity and redundancy in
data
• Provides information across departments in real time.
• SAP System is Provides control over various business
processes
• Increases productivity, better inventory management ,
promotes quality , reduced material cost, effective human
resources management, reduced overheads boosts profits
• Better customer interaction and increased throughput. It also
improves customer service
• Hence, a centralized enterprise management system is
required.
• SAP Software is a centralized enterprise management system
also known as Enterprise Resource Planning.

31. Proposed ERP vendor-Roadmap IT Solutions (P) Ltd
• Roadmap IT Solutions an ISO 9001:2015 & ISO 27001:2013
Certified IT Solution Company and a Oracle Gold Partner; with
decades of experience, promising the customers by providing
highly qualitative Software’s & ERP Solutions to diverse
manufacturing and service Industries.
• Smart SkyFinch is a fully customizable end to end digital
solution for all types of businesses. It enhances business
performance by integrating all its functional components and
digitizing its workflow to save time, increase productivity and
maximize return-on-investment (ROI).

32. Inventory Classification
• Before carrying out the assigned production order my first
objective was to classify the inventory levels.
• Inventory is a necessary evil in any organization engaged in
production, sale or trading of products.
• Inventory in any organization can run in thousands of part
numbers or classifications and millions of part numbers in
quantity.
• There my making an account of all the items in the
inventory and making significant impact on overall
inventory cost and also effective space utilization. The
method of inventory classification that I have choose and
implemented is ABC classification.

33. ABC Classification
• The method of inventory classification that I have choose and
implemented is ABC classification.
• The ABC analysis is done to manage different stocked items
that are not all equal in value or order frequency.
• Inventory ABC Classification is a term used to define an
inventory categorization technique often used in materials
management.
• A Category Items
• B Category Items
• C Category Items

34. Scheduling
• Scheduling is the process of arranging, controlling and
optimizing work and workloads in a production process or
manufacturing process.
• Scheduling is used to allocate plant and machinery resources,
plan human resources, plan production processes and
purchase materials.
• Production scheduling aims to maximize the efficiency of the
operation and reduce costs. In some situations, scheduling
can involve random attributes, such as random processing
times, random due dates and stochastic machine
breakdowns.

35. Techniques to establish standard time
Standard Time = Normal time + Allowances
Allowances are further classified into.
• Constant allowances (for personal needs and basic fatigue)
• Delay Allowance (for unavoidable delays)
• Fatigue Allowance (for job dependent fatigue)
• Personal Allowance
• Special Allowance

36. Cause and effect diagram
It is one of the important quality control tool this mainly finds
the possible causes for a problem. It is also used for doing
brainstorming; it gives ideas to solve the problem. This is also
called Ishikawa Diagram or fishbone diagram.
Pareto chart
A Pareto chart is a bar graph. The lengths of the bars
represent cost or frequency (money or time), and it is
arranged in such a way that shorter bars will be seen in right
side and longest bars on left hand side.

37. Likert scale
• The Likert Scale is a rating scale that’s often used when
surveying the customers regarding their experiences about
the product or brand – from the service.
• The Likert Scale is a rating scale that’s often used when
surveying the customers regarding their experiences about
the product or brand – from the service.
• It’s one of the most popular technique used on customers by
the company to know the customer’s perspective about the
service by collecting audience feedback

38. • We can measure almost anything using a Likert Scale, and you
can use any number of points along that scale to capture the
nuances to your customer’s reactions.
• One of the most common use of a Likert scale is to measure a
customer’s satisfaction with a product or service. Usually,
scale goes from “Very Dissatisfied” to “Completely Satisfied.”
• Overall, how satisfied are you with your most recent
experience making a purchase at our company

39. Likert Scale “Points”
There are many other variations of this basic Likert scale.
Acceptability (Not at All – Completely Acceptable)
Agreement (Completely Disagree – Completely Agree)
Awareness (Not Aware at All – Extremely Aware)
Concern (Not at All Concerned – Extremely Concerned)
Familiarity (Not Familiar – Very Familiar)
Frequency (Never – Always)
Importance (Not Important – Extremely Important)
Likelihood (Not Likely – Extremely Likely)
Quality (Poor – Excellent)

40. Data Analysis

41. 5S Implementation
Status of orders on
notice board (VISUAL
FACTORY)
Sort & Set in
Order
Arranging tools according to
dimensions & at right place after
usage

42. Inventory room before ABC
Classification
Inventory room after ABC
Classification

43. A Category Items B category items C category items
Gauges Rotometer Speed Indicator
Starter Venturi Clamp Viers Model
Manometer Orrifice Clamp Notch Model
Pipe Fitting Spring Balance
Tubes
Electrical Wires
Pezo Meter
MS Sheets

44. Scheduling
TASKS START DATE
FRAME AND
TANK PIPELINE DISMANTLE
PAINTING
AND
POWDERING REASSEMBLY
ELECTRICAL
WIRING
FACTORY
TESTING AND
CALCULATION
PRODUCTION
1 02-04-2018
9AM-1 PM,
2/4/18 1.45PM-2.45 2.45-3.15 PM 3-4 DAYS
9-10AM,
9/4/18 10-11 AM 11-12 PM
PRODUCTION
2 03-04-2018
9AM-1 PM,
3/4/18 1.45PM-2.45 2.45-3.15 PM 3-4 DAYS
12-1PM,
9/4/18 1-2 PM 2-3 PM
PRODUCTION
3 04-04-2018
9AM-1 PM,
4/4/18 1.45PM-2.45 2.45-3.15 PM 3-4 DAYS
3-4 PM ,
9/4/18 4-5 PM 5- 6 PM
PRODUCTION
4 05-04-2018
9AM-1 PM,
5/4/18 1.45PM-2.45 2.45-3.15 PM 3-4 DAYS
9-10AM,
10/4/18 10-11 AM 11-12 PM
PRODUCTION
5 06-04-2018
9AM-1 PM,
6/4/18 1.45PM-2.45 2.45-3.15 PM 3-4 DAYS
12-1PM,
10/4/18 1-2 PM 2-3 PM
PRODUCTION
6 07-04-2018
9AM-1 PM,
7/4/18 1.45PM-2.45 2.45-3.15 PM 3-4 DAYS
3-4 PM ,
10/4/18 4-5 PM 5- 6 PM

45. Designing the Likert Scale
Here I have designed a web page to get feedback of the customer using Likert scale.
The feedback link can be forwarded to the customer through mail or by phone
message.
When the survey link is
forwarded through mail.

49. Results
1) Successfully convinced about the importance of ERP and their advantages to
the company. Now Tech-Ed and road map solution (ERP vendor) have
discussed about the user interface and cost of the software & will be
implementing the ERP software shortly
2) With the help of Cause and Effect diagram and Pareto chart, it was identified
that the method of welding was the prime cause for leakage that resulted in
rejection and rework. To minimize the time spent on rework and rejection,
instead of Arc welding Mig welding was implemented
3) Successfully achieved the production target for the order from Customer
Name: Bajaj Inst. of Tech - Wardha well within the due date (3 days earlier). By
scheduling the workloads equally with the available workforce AS shown in
graph below

50. 4) Successfully implemented inventory classification in Tech-Ed Company.
There by focusing on inventory control, maintaining optimum inventory levels
and determining order/replenishment schedules and quantities. Thus trying
to balance inventory all the time and maintain optimum levels to avoid excess
inventory or lower inventory, which can cause damage to the business.
5) Helped Tech-Ed Equipment Company in getting customer feedback /
maintaining of feedback letter.
6) Briefed the workers the insight and importance of motion and time study.

51. Conclusion
• By working as a supervisor in Tech-Ed Equipment Company, gave me the
exposure of the problems faced in small scale industries.
• The main objective of this project is to minimize the inventory, optimize the
rate of production and maintenance scheduling for the Tech-Ed Equipment
Company
• The using of various tools like Cause and Effect diagram, inventory
classification, scheduling, ERP, Likert scale etc. Helps to solve the problem,
hence we identified the exact problem and we have solved that.
• The main purpose of this project was to implement production and operation
management principles to assist Tech-Ed Company to become more efficient
and more productive.
• Finally, Several proposals are submitted to get best results, first is proposal of
implementation of ERP software ( which is in a final stage) , using Mig welding
instead of Arc welding and to do entire production process on scheduling
methods.

52. THANK YOU