Beginners Guide to Work as Industrial Engineer in Apparel Manufacturing Unit

This is my personal experience in my very first job as industrial engineer in the very first manufacturing unit. This was during May 2002 - June 2003. I have tried to elaborate on the technical as well people management side of my work. This report was a part of my Competency Demonstration Report submitted to Engineers Australia to obtain certification as a Professional Engineer in the occupation of Industrial Engineering.

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Beginners Guide to Work as Industrial Engineer in Apparel Manufacturing Unit

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Career Episode – 1 First job as Industrial Engineer A. Introduction Digitally signed by Balaji B Jagannath DN: cn=Balaji B Jagannath, o, ou, email=bejayrocks@gmail. com, c=IN Location: Bangalore, India Date: 2008.07.25 13:07:18 '+05'30 1. This career episode narrates about my experience as a Junior Production & Quality Engineer at M/s Gokaldas Images Private Limited (GI) from May 2002 to July 2003 located at Bangalore, India. This was my first job after I graduated in September 2001 securing Bachelor’s Degree in Industrial Engineering & Management from Bangalore University. 2. GI is one of India’s largest integrated clothing corporations with 3 business groups, namely: Knits, Wovens and Tailored. GI has 15 automated manufacturing facilities, employing 11,000 people and with a turnover exceeding US $120 Million (AU $134 Million). Knits group manufactures Casual wear such as T-Shirts, Ladies Tops, Lingerie, and Underwear. Knits had 4 manufacturing facilities under its wing and I was deputed at their biggest manufacturing facility under the Knits group namely NCC. B. Background 3. Application of Industrial Engineering in India and especially in Apparel Manufacturing sector is in infant stage. The awareness of Industrial Engineering and its application is very low in India. For last 6 years, Automobile and Apparel Manufacturing have been the only two sectors hiring qualified Industrial Engineers and applying the concept of Industrial Engineering widely, but currently there is an increasing demand for Industrial Engineers in Software, BPO and Call Center sectors. Apparel Industry in India is one of the most unorganized sectors, reason being that even to-date it is dominated by illiterate or low educated workforce and managers. These were few of the key factors, because of which, the organization structure was designed in a way that IEs at manufacturing units had to report directly to the corporate IE team and were to function on the instructions given by corporate IE team and not that of the factory management. The management gave us the status of advisors at the factory, and instructed managers, supervisors to take aid of IEs in improving productivity. Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 1 of 18 Career Episode – 1 First job as Industrial Engineer Organization Structure Managing Director Knitwear Division Gokaldas Images Corporate Human Resource Department Corporate Industrial Engineering Department General Manager Production Factories Human Resource Department Factory Manager Production & Quality Engineer Production Manager Cutting Manager Finishing Manager Floor In charge Supervisors Quality Controllers Operators 4. I was the only employee with a bachelor’s degree in engineering at my first assignment, all other employees were either completely illiterates or had successfully completed first few grades at basic schooling even including the employees in managerial positions (Factory Manager, Production Manager, Department Managers). They had just risen up from the level of an operator to that of a manager. So their methods became the standards for carrying out work, irrespective of the correctness of the method employed or management techniques or tools used in running the show. Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 2 of 18 Career Episode – 1 First job as Industrial Engineer 5. When I joined GI, it was an era of the beginning of application of Industrial Engineering in Apparel Manufacturing. The management had just started experimenting with adaptation of Industrial Engineering and I was one among the first set of Industrial Engineering to be hired. Since I was new to the apparel industry and did not posses prior knowledge on processes involved in garmenting, I was designated as Junior Production & Quality Engineer and was deputed at NCC as the only engineer for a factory which had an operating workforce of 600 during May 2002. 6. A typical Apparel Manufacturing factory has 4 departments namely: Fabric & Trims Warehouse, Cutting, Sewing, and Finishing. Apparel Industry has been channeling most of its energy and resources on Automating, Specializing and streamlining the process at sewing department as it is the revenue centre of the entire manufacturing process. This being the case, I was instructed to concentrate more in sewing department. I did not know anything about the technicalities of Garmenting, but all I did was to use my basic IE concepts and some common sense. C. Personal Workplace Activity 7. The basic agenda for an IE, in any sector is to, Improve Productivity and Reduce Cost. Productivity is defined as ratio of amount of output for every unit of input (Productivity = Output / Input). Productivity is said to have improved in one among the following 3 circumstances: 1. Input remains constant but output increases 2. Input decrease but output remains constant 3. Input increase with more than proportional increase in output. 8. In any business, there are 3Ms involved i.e., Man, Materials and Machines. All the 3Ms forms the basic input and all involve expenditure. Hence any reduction in the Inputs with output being constant, would mean, increase in productivity, reduced direct material cost, which in turn means increased profit margin. 9. Also in business, Time = Money. Time taken to do a particular work, depends on the complexity of the work content involved and the method involved to do the work. Hence, reducing the work content or simplifying the method involved to do the work, reduces the cycle time required to complete the work, this again means reduced work cost. Any need for improvement, requires us to ask 3 basic questions: 1. Where are we? 2. Where do we want to be? 3. How do we get there? Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 3 of 18 Career Episode – 1 First job as Industrial Engineer 10. Similarly to improve productivity, we first need to ask ourselves the question “Where are we?” which implies that we need to understand our current productivity levels. Next question is “Where do we want to be?” which would mean defining our goals, targeting a particular level of productivity, operating efficiency, cost of production and profit margin. The final question would be “How do we get there?” the answer to this question would be nothing but a detailed plan or strategies on achieving the defined goals/targets. 11. As explained earlier, we first need to understand and analyze the current productivity, operating efficiency, cost of production and profit margin. In order to know our current performance levels, we need to have certain performance measurement systems in place, systems that compare actual performance against the benchmarked or targeted performance. To measure the actual performance or to benchmark certain profitable performance level we need to measure work. I felt that the need of the hour at NCC was some good monitoring systems which would tell us where we are and what is our stand in terms of performance in Production, Quality, and Accountability. This made me envision an MIS that would help us to clearly see our present standards of work in terms on Production, Quality and Accountability. I have attached a diagrammatic representation of this MIS that I have envisioned over the years and carried it across the companies I have worked in and trying to implement this structure of information system. Refer to Production, Quality & MIS systems diagrammatic representation in appendix page – 1 to 5 12. Why do we have to measure work? 1. To determine the facts about how an individual operation or group of operations are performed within the workplace 2. To determine Effectiveness of Man, Materials and Machines employed 3. Means for management to measure and analyze current performance levels by means of Work Study. 4. Means to identify problems/bottleneck in the process that hampers productivity and operating efficiency. 13. Though I found that there were some basic reporting systems in place at NCC which indicated day wise Work In Progress (WIP), I felt that just a basic WIP report would not be sufficient to understand the operating circumstances and current performance levels. Moreover I also noticed that, even the key process owners, didn’t know how to interpret the existing report, analyze it and utilize it. So, I identified 3 important tasks ahead of me which were very basic by nature, but would lay a very strong foundation to establish Industrial Engineering services: Career Episode - 1 1. Generate more analytical reports at every process, and accumulate more data for statistical analysis. Analyze the report, derive conclusions and present it in a simple and understandable way to the production management team. 2. Introduce work study techniques and start measuring the work, to understand current operational productivity and performance. Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 4 of 18 Career Episode – 1 First job as Industrial Engineer 3. Educate the managers, supervisor and members of production team, on the new concepts and systems of Production, Productivity, Operating Efficiency, and Cost Reduction. Ensure that the concepts sink down up to the lowest level of the hierarchy. 14. To accomplish the first of my 3 self devised tasks, I started making a simple efficiency report and discussed the contents and the interpretation of the report with the Factory Manager, Production Manager, Floor In charge and assembly line supervisors. I felt it was an important step for me, to educate the entire workforce including managers, floor in-charges and supervisors on concepts like Production, Productivity, Operating Efficiency and Work Cost and the impact of these factors on the profit margin of the company. I had to make them visualize the impact of a good profit margin on their personal, career growth and general welfare of the company and its employees. This became the greatest challenge for me, as we all understand the fact the there is always resistance to change. I had to interact full time with uneducated workforce and bring about a change in their ways of thinking and working. 15. I believe that the success of any implementation of a new concept or a new system will highly depend on our ability to make the thought process, sink deep into the bottom most level of the hierarchy, from top down, and make it a part of the work culture. The success, effectiveness and sustenance of the change is far more better when it becomes a part of the work culture and when we can convince one and all on the need to follow a better system and make them feel the urge to do the same, rather than forcing it upon them. So I started educating the concepts to the Managers and supervisors using the following Performance Measurement Systems and MIS reports that I designed. In the following sections to come, I’m going to describe in detail on 1. How did I measure the actual performance? 2. How did I analyze and draw conclusions from the data? 3. How did I set the performance targets? Introduction of Production and performance monitoring system 16. To begin with, I introduced basic hourly production tracking report that I designed on the excel sheet. Before this, team supervisors were called and enquired about hourly production. There was no scientific base for the targets, it was purely experience based guesstimates and there was no analysis on loss of productivity. The team supervisors were reprimanded if they did not reach the target per hour, but there was no measure on input that was utilized to achieve the target. The concept of productivity and the importance of cost effective production had to be taught newly to the Production team. The first set of people that I targeted to educate was the managerial level. I believe that any system implementation has to come top down. I got a computer installed at the desks of Factory and Production Manager, and ensured that the team production coordinators make an hourly entry in the enclosed excel format on my computer, this would be automatically updated and displayed on an hourly basis on the screens on Factory and Production Manager, along with team wise efficiency on an hourly basis. Refer to Hourly Production Report format in appendix page - 6 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 5 of 18 Career Episode - 1 Career Episode – 1 First job as Industrial Engineer 17. I went to the managers every hour and gave them a brief oral analysis on the reasons of not achieving the target and educating them the reasons behind low efficiency in spite of achieving the fixed daily targets at times. Once I started this system, the Production management team was very happy as they had real time information and analysis about the production process. It became a great help for better management and quicker decision making. They didn’t have to anymore go around asking questions as all the information just started flowing to them. This made them realize that I as an industrial engineer and with the concepts of IE was helping them to manage the factory better and help them operate it more efficiently and profitably. Thankfully at the same time, the top management announced incentives for the production teams of the factories that would achieve more than 50% efficiency. This move ensured a huge upsurge in interest of the production management team of the factories in adapting the IE systems and concepts. It also ensured keen interest in understanding the concepts of productivity and efficiency. 18. The Production team at the factory now came more to me for help and guidance in increasing operating efficiency. So the time had come for me to take the next step in establishing IE systems. I started introducing the basic concept of work study (Method Study and work measurement techniques). When I started at NCC, production targets were usually fixed on the basis of the experience and had no scientific base to it. They were merely guesstimates based on the past experience of the production managers. Most of the time, this resulted in under/over utilizing operators and creating imbalance in the line. I used to take supervisors into the line and point out to them that some operators were sitting idle and waiting for work while an operator behind her has a huge pile up of WIP and is stressing out herself to achieve the target. The over burdened operator became a bottle neck point beyond which the production would not flow, hence hampering the output and performance. Introduction of Work study technique, Production planning with the adaptation of time standards 19. I started educating them in utilizing the time standards for layout planning, line balancing, man power planning and machinery planning. I started initially by doing time study for all the operations in the production line and drawing a “Pitch Diagram”. Using time study I started recording operation time for every operation against the Standard time and appropriately balancing the production line, fixing the production targets in due consideration of work place environment and ergonomics. Work Study Technique 20. The observed time recorded during the time study is plotted on to a graph called “Pitch Diagram”. The Pitch Diagram is basically a visual representation of imbalance in the production line. With the aid of pitch diagram, I highlighted some grey areas to the production team where they had fixed lower targets or very high targets. I was able to highlight where they were under utilizing or over utilizing certain operators. Using these results I started educating them on the concepts of line balancing in the production line. I started working along with the line supervisors, floor in charge and production manager, so that I can educate and train them more practically on how to Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 6 of 18 Career Episode - 1 Career Episode – 1 First job as Industrial Engineer better balance the line, to better utilize the man power by optimally distributing the work load, and fixing targets and measuring the real-time performance against the target so that we can identify bottle necks and eliminate to ensure smoother production flow. Refer to Time Study Sheet & Pitch Diagram formats in appendix page – 7 & 8 21. It was an old practice here in apparel sector that operators are given some impractical target, for example: an operator is given a target of 100 units per hour, in spite of knowing the fact that practically it won’t go beyond 50. When I questioned this attitude of middle management, they replied to me that when they ask operators to produce 50 they would only produce 25 in spite of being sufficiently skilled, so when the actual requirement was 50 they would ask for 100 so that, they would get at least get 50. I replied back to them saying that an illogical increase in target wouldn’t necessarily mean that they would get the desired production. Also it’s due to this temperament that the attitude of operators has gone in a direction that they always think that the supervisors fix impractical targets and hence end up under performing deliberately no matter how much pressure we exert for better output. 22. I banned this illogical strategy and started fixing targets which were exactly as per the time standards. When I started fixing the targets based on time standards, the workers also started complaining that my time standards for some critical operations were too tight and impossible to achieve. Then I would just sit next to them on the machine and ask them perform the operation. I would start the stop clock from the moment they pick up the job and stop the stop clock when they pick up the next job. I then showed them the time they took to perform the operation for a few cycles and then make them calculate the target for the time they have taken to perform the operation. Then I used to ask them to produce exactly as per that target. If sometimes they are taking more than the actual time required to do the operation due to lack of skill or bad working method, I would sit next to them while they are performing the operation, observe and analyze the reason behind non achievability of the target. If it turns out to be either lack of skill or a bad method of performing the operation, then solution for both would better training of operators on work place arrangement, and ways to handle the work more easily. Earlier to this, supervisors used to verbally abuse workers for non-achievement of targets after giving them minimal initial guidance on performing the operation, they were not allowed to comfortably move up the learning curve but were constantly pressurized for production which is impossible. This used to demotivate operators resulting in low performances. I believe that any kind of abuse is wrong and does not help to create a good working environment where an individual can perform and contribute. Verbal abuse not only harms the productivity of an individual but also inflicts low morale resulting in curbing the motivation to even work. I consistently pushed the factory/production manager to ban verbal abuse, I educated supervisors that they should not abuse workers for non performance but instead show train them ways and means to achieve targets. I believe that the job responsibility of a supervisor also includes training his subordinates to perform to the desired level of output. This would only create a win – win situation as the workers would get better trained at work and company could ensure better quality and productivity. My interest was not to fix target and put the Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 7 of 18 Career Episode - 1 Career Episode – 1 First job as Industrial Engineer operators under work pressure to perform unlike supervisors, my interest was to teach them how to work smartly, efficiently and achieve the target. This fair, respectable scientific and transparent approach won me faith, trust and recognition from even amoung the lower cadre of workers in the hierarchy. Production Planning 23. My next step was to introduce the system of Production Planning, Layout Planning, Man Power Planning, Machinery Planning and Line balancing using the time standards from GSD, even before the start of production. I wanted to educate them on the advantages of Proactive & scientific planning. My interest was to basically educate them to design the layout and the process on a scientific basis and engineer the desired results in to the system, such that merely working along the system would ensure the desired productivity and output. When a new product gets scheduled for production, I used to organize for a pre-production meeting with the production team along with the “Operation Bulletin” prepared using GSD software. Refer to Introduction to General Sewing Data (GSD) in appendix page – 15 & 16 24. The Operation Bulletin gives the complete list of operations involved in manufacturing the product along with the Pre-determined time values for each operation. During this meeting we used to brain storm on the layout of the production line, machinery required, reducing man power employed in the production line, combining certain operations to better utilize operator capacity, simplifying certain methods of performing an operation in an effort to improve productivity. 25. Then I used to sit with production manager and floor in charge and prepare the production plan. I asked him to prepare one plan in his traditional way which he largely based on his experience and I prepared one on scientific basis which was more comprehensive and detailed. We used to then sit and compare the plans and exchange the ideas and merge and fine tune the two plans into one plan. Where ever there was difference of opinion I suggested that we first use a more productive and scientific method and if it didn’t work then we would switch over to his traditional method. He agreed upon the suggestion and observed the results for a couple of days. Once he was convinced that the scientific method was yielding better result, he would accept it more openly. 26. Here is a brief explanation of Production Plan & Calculation of Operation Wise Work Station Requirement, Layout Plan of the Production Line and line balancing technique employed by me at NCC. I educated the same systems and concepts to the production team at NCC. There can be normally two kinds of scenario while planning production for a particular style 1. The customer is flexible about the Delivery Date and hence wants us to suggest the best possible deliver date 2. The customer is not flexible about the delivery and wants the shipment at their prescribed delivery date. Majority of the instances is Scenario - 2 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 8 of 18 Career Episode - 1 Career Episode – 1 First job as Industrial Engineer 26.1. Formulae Used for Production Planning 1. Output per hour = 60/SMV or 3600/SMV(Converted to Seconds) a. To convert SMV to Seconds multiply by 60 b. Example: SMV: 0.60 = 0.60 X 60 = 36 Seconds c. Output per hour = 60/0.60 = 100 or 3600/36 = 100 d. Output per Hour @ Estimated Efficiency = 60/ (SMV/Estimated Efficiency (In %)) or 3600/ (SMV (In Seconds)/Estimated Efficiency (In %)). 2. Standard Total Processing Time = Basic Total Time (Total SMV) X (1+Allowance Rate %) 3. Possible Daily Output – Applicable for Scenario – 1 = (480/Standard Total Processing Time) X No of Operators OR = Target/M/c/Shift X Number of Machines per Line 4. Output required per day – Applicable for Scenario – 2 = Order Quantity / Production Lead Time 5. Cycle Time = Total Working Time/Possible Daily Output – Applicable for Scenario – 1 = Total Working Time/Output required per day – Applicable for Scenario – 2 6. Number Of M/cs required – Applicable for Scenario – 1 = Operation Time (SAM)/Cycle Time OR = Output required per operation (100%)/Output Practically Possible per operation 7. Number of M/cs required – Applicable for Scenario – 2 = (Operation Time (SAM)/Estimated Efficiency)/Cycle Time OR = Output required per operation (100%)/Output Practically Possible per operation @ Estimated Efficiency Let’s take an example order and do production planning for a style to understand better Order quantity = 4000 units. Average efficiency= 50% Total M/c SMV = 5.26 Minutes (Basic Total Time) Considering Scenario – 1, where we are supposed to suggest the possible delivery date Standard Total Processing Time = Basic Total Time (Total SMV) X (1+Allowance Rate (20%)) = 5.26 X (1+20%) = 6.31 Minutes Total Machine SAM= 6.31 Minutes (Standard Total Processing Time) Target/M/c/Shift = 480/Total Machine SAM = 480/6.31 = 76.07 units/M/c/Shift Average Number of Operators per line = 30 Average Number of Operators is obtained by taking an average of number of operators per line in all the factories. Possible Daily Output = (480/Standard Total Processing Time) X No of Operators = (480/6.31) X 30 = 2281.37 ~ 2282 units OR = Target/M/c/Shift X Number of Machines per Line =76.07 X 30 = 2282.10 ~ 2282 units Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 9 of 18 Career Episode – 1 First job as Industrial Engineer 26.2. Machinery Planning & Line Balancing Let us consider Targeted Output per day = 2282 units Cycle Time = Total Working Time/Possible Daily Output Cycle Time = 480 Minutes/2282 Units = 0.21 Minutes / Unit This theoretically means that a garment should be produced after very 0.21 minutes, which means that all the operations involved in sewing the garment should not take more than 0.21 minutes. This is practically impossible as the work content of operations varies. But to achieve the required output we have to ensure that operation time does not exceed the cycle time. This can be done only by balancing the workload and the concept is called as Line Balancing. We estimate the number of machines required to be allocated to an operation depending on the work content involved in the operation. The formula used to determine number of machines required by every operation is given by: Number of M/cs required = Operation Time (SAM)/Cycle Time OR = Output required per operation (100%)/Output Practically Possible per operation For Operation – 1 Number of Machines required = Operation Time (SAM)/Cycle Time OR = 0.71/ 0.21 = 3.37 Machines OR = Output required per operation (100%)/ Possible O/p per operation = 282.25/84.75 = 3.37 Machines Hence using any of the above formula we can obtain the machinery requirement for each operation in the above explained methods. Method I Method II Opr # 1 2 3 4 5 6 7 M/c Type Over lock Single needle Over lock Over lock Flat lock Flat lock Single needle Total SMV 0.59 1.38 0.93 0.85 0.55 0.61 0.35 5.26 SAM 0.71 1.66 1.12 1.02 0.66 0.73 0.42 6.31 Possible M/c Req M/c Req Output Output O/p/Hr @ 100% @ 100% /Hour /Day @ 100% 84.75 36.23 53.76 58.82 90.91 81.97 142.86 3.37 7.87 5.31 4.85 3.14 3.48 2.00 30.01 3.37 7.87 5.31 4.85 3.14 3.48 2.00 30.01 285.25 285.25 285.25 285.25 285.25 285.25 285.25 2282 2282 2282 2282 2282 2282 2282 Career Episode - 1 From the above table & calculations we now know that a total of 30 machines are required to do the production. The number of each type of machine required for each operation is also seen in the above table. Another important observation to be made here is that the output per day & output per hour is constant from every operation. This is the concept of LINE BALANCING. From the above table & calculations we can also infer that the machinery requirement & the production line layout have been planned so as to achieve the required output per day. Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 10 of 18 Career Episode – 1 First job as Industrial Engineer 26.3. Using Learning Curve to determine Production Lead Time Theoretically Possible Daily Output = 2282 units Order Quantity = 4000 Hence theoretically speaking the number of days required to complete the production of 4000 units = 4000/2282 = 1.75 ~ 2 Days. This is at 100% Efficiency. Assume that the Average Efficiency is 50% at which the company is currently operating This means that we will take double the time required to complete production as we will be producing half the rate of performance @ 100%. Therefore to produce 4000 units we would take 4 days @ 50% Efficiency. But we all know that practically this is nothing less to impossible. Any new work or anything new that is being learnt or done initially follows a certain path of learning called the Learning Curve. When a certain process follows the path of learning curve it would not be able to achieve either the peak or the average efficiency from first day. An ideal learning would look like the figure below We can notice in the curve that there are two phases that the curve goes through, an initially quick rate of learning or growth followed by a constant growth rate. A constant growth rate means with time there is no new learning but it is merely performance of what has been learnt. We need to derive learning curve from the database of a style of the SAM 6.31 minutes or consider a learning curve of a style whose SAM is +/- 1 minute to 6.31 Minutes. That learning curve can be used to estimate the day wise production flow for the style. Let us assume a learning curve for this example and understand the calculations: O/P O/P@ Cum Cum LC O/P@ Cum Date Day @ Day M/cs 100% O/P O/P Eff. LC O/P 50% 1141 1141 20% Monday 1 30 2282 2282 456 456 09-Jul Tuesday 2 30 2282 4564 1141 2282 24% 548 1004 10-Jul 1141 3423 35% Wednesday 3 30 2282 799 1803 11-Jul 1141 4564 38% Thursday 4 30 2282 867 2670 12-Jul Friday 5 30 2282 45% 1027 3697 13-Jul Saturday 6 30 2282 49% 1118 4815 14-Jul 35% Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 11 of 18 Career Episode – 1 First job as Industrial Engineer The shaded portion of the above table shows the day wise efficiency that we have achieved in a previous order of a similar style. This is derived from a learning curve. From the Machinery Requirement calculations we know that 30 machines are required to complete the production. Therefore Possible Daily Output = (480/Standard Total Processing Time) X No of Operators = (480/6.31) X 30 = 2281.37 ~ 2282 units OR = Target/M/c/Shift X Number of Machines per Line =76.07 X 30 = 2282.10 ~ 2282 units As we discussed earlier, if our performance was 100% everyday we could have completed the production in just 2 days. If our performance was equivalent to company average of 50% everyday then we could have completed the production in 4 days. But practically speaking, since the production follows a learning curve, we can understand from the above table that it would take little less than 6 days to complete the production. The average efficiency that we would achieve through out the production run is 35%. From this we can infer that if 30 Machines operate for 6 days to complete the production of 4000 units, then the average performance rate would be 35%. So we request for 6 days production lead time and the customer is intimated on the tentative delivery date. Scenario – 2: The customer is not flexible about the delivery and wants the shipment at their prescribed delivery date. Continuing with the above example, to work on scenario – 2 we would need to know the production lead time in hand from the customer to plan the capacity, production, manpower and machinery in sync to meet the desired delivery date of the customer. Let us assume that the production lead time is 3 days Estimate Output required per day = Order quantity / Production lead time– Applicable for Scenario – 2 Order Quantity = 4000 units Production Lead Time = 3 days Output required per day = 4000 / 3 = 1333 units Derive Cycle Time = Total Working Time / Output required per day – Applicable for Scenario – 2 Total Working Time = 480 Minutes Output required per day = 1333units Cycle Time = 480 / 1333 = 0.36 Minutes Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 12 of 18 Career Episode – 1 First job as Industrial Engineer Scenario - 2 Method I Method II Opr # 1 2 3 4 5 6 7 M/c Type SMV SAM O/p/Hr @ 100% O/p/Hr @ 26% M/c Req @ 26% M/c Req @ 26% Output /Hour Output/ Day Over lock 0.59 0.71 166.63 1333 84.75 22.03 7.56 7.56 Single needle 1.38 1.66 166.63 1333 36.23 9.42 17.69 17.69 Over lock 0.93 1.12 166.63 1333 53.76 13.98 11.92 11.92 Over lock 0.85 1.02 166.63 1333 58.82 15.29 10.89 10.90 Flat lock 0.55 0.66 166.63 1333 90.91 23.64 7.05 7.05 Flat lock 0.61 0.73 166.63 1333 81.97 21.31 7.82 7.82 Single needle 0.35 0.42 166.63 1333 142.86 37.14 4.49 4.49 Total 5.26 6.31 67.42 67.44 Estimate the machinery requirement to produce 1333 units per day Number of M/cs required – Applicable for Scenario – 2 = (Operation Time (SAM)/Estimated Efficiency)/Cycle Time OR Estimated Efficiency = 26% 26% is the average efficiency that we have achieved during the previous production of the same style or similar style. This efficiency is estimated from the Learning Curve of previous production of the same style or similar style, taking the average efficiency of the first 3 days of the production run. For Operation – 1 = (0.71/26%)/0.36 = 7.56 Machines OR = Output required per operation /Output Practically Possible per operation @ Estimated Efficiency Output required per operation = 1333 units per day or 167 units per hour If the output from each operation is 167 units per hour or 1333 units per day then only would we achieve 1333 units of ready garments per day. = 167 / 22.03 = 7.56 Machines Hence using any of the above formula we can obtain the machinery requirement for each operation in the above explained methods. From the above table & calculations we now know that a total of 68 machines are required to produce 1333 units per day and hence to complete the production in available 3 days. Here we have assumed that we would perform at the same rate of 26% as we did in the previous production run. This efficiency is estimated from the Learning Curve of previous production of the same style or similar style, taking the average efficiency of the first 3 days of the production run. The number of each type of machine required for each operation is also seen in the above table. Another important observation to be made here is that the output per day & output per hour is constant from every operation. This is the concept of LINE BALANCING. From the above table & calculations we can also infer that the machinery requirement & the production line layout have been planned so as to achieve the required output per day. Hence the production flow would be: Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 13 of 18 Career Episode – 1 First job as Industrial Engineer Day 1 2 3 Machines 68 68 68 O/P@ 100% 5173 5173 5173 Cum. O/P 5173 10346 O/P @ 50% 2586 2586 2586 Cum . O/P 2586 5173 7759 LC Eff 20% 24% 35% 26% O/P@ LC 1035 1241 1810 Cum O/P 1035 2276 4086 Date 12-Jul 13-Jul 14-Jul Day Thursday Friday Saturday Week # Week 28 Week 28 Week 28 If we compare the above calculation with calculations initially made, we can infer that the number of machines required to complete the production has increased as the production lead time got reduced. If we assume that there are 30 machines per production line, then in this scenario we would require a little more than 2 production lines to complete the production. In other words we have to dedicate more production capacity for the style. In this scenario we use the previous performance as benchmark and accordingly calculate the increase in machinery requirement or the number of production lines to be employed to meet the deliver requirement. Refer for the Layout Plan and Line Balancing formats in appendix page – 9 & 10 Management Information System 27. With all the basic systems in place, it was time to analyses performance on monthly basis and track the impact of the systems on the overall performance. I decided to make Production oriented performance reports and present it to the management as a feedback on the proof effectiveness of the engineering principles. I also planned to use the same reports to create awareness amoung all levels of hierarchy. I started entering everyday performance, generated using Hourly production report, into a database. At the end of every month I could sort and assimilate data production line wise and order wise. 28. The reason to generate report production line wise was to analyse the performance of the production line across different products and also to monitor their consistency in performance. Once the database builds up, it would work as a feed back mechanism and provide us data to analyze product wise capability of every production line. Order wise performance report basically helps us to better understand our profitability and performance on a particular order. Once the database builds up, we will also be able to analyse and draw estimates on our profitability and performance in future orders similar to the ones that we had during the previous orders. 29. I used to organize monthly performance review meeting with the production team and brief them on the contents of the report. I used to explain and educate them on the interpretations, meanings, conclusions of the statistical analysis and the summary reports. I used to translate them in native language and post it up on the board on the shop floor for the work force to understand the performance level of the factory. I just displayed performance graphs for the ease of understanding for workers. Workers started showing interest in displayed graphs and used to come to me for better understanding and clarifications. This slowly brought awareness in them about, how their performance directly affects the profitability of the company and in turn how it affects them back. I started conducting awareness meeting to workers, supervisors Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 14 of 18 Career Episode - 1 Career Episode – 1 First job as Industrial Engineer where I educated them about Industrial Engineering concepts, difference between production, and productivity, meaning of efficiency, optimum use of resources. 30. I strongly believe that if ones work knowledge improves, then automatically their work standards and performance level also improves. It creates a win-win situation for the employer and employee as both are benefiting. The employee gets to become more skillful and learns efficient way to do work while employer benefits with improved quality and productivity from the trained employee. My whole effort, was directed towards, improving everyone’s work knowledge and hence help them to perform better. Displaying the performance production line wise also induced a healthy competition amoung the production lines and we finally reached a stage where all supervisors, floor in charges and managers started tracking efficiency report. Attached with this report are the 2 different performance reports of NCC. Refer for Formulae for Efficiency and Cost of Production Calculations in appendix page – 11 to 14 Refer for Efficiency Report with Analysis in appendix page – 17 to 28 31. When efficiency of a production line goes below 50%, the supervisors used to come and ask me where they had gone wrong. This brings us to the next report called “Down Time Report”. Efficiency is the measure of performance in terms of time utilization. The idea is that if every employee is being paid to work for 8 hours a day, how much of his/her 8 hours are we utilizing completely. For instance if a production line consists of 10 workers, working for 8 hours a day, we have 80 man hours available with us. If efficiency of the production line is 50%, it means that we have used only 40 man hours out of the total 80 man hours available, hence the efficiency is 50%. If we need to improve efficiency, then we need to better utilize available 8 hours of every employee. I designed down time report to track where and how much of man hours the production line is losing. The idea behind the report was to identify the major factors of production time loss and prepare and action plan to eliminate the root cause. Attached with this report is the Down Time Report. It helped us to better understand the back logs in the process which further helped us to eliminate unwanted/bottleneck processes and hence reduce the time loss. Refer for Down Time in appendix page – 29 & 30 Statistical Quality Control 32. I spent a lot of time in designing, monitoring and controlling production oriented systems at NCC. Once some of the basic systems started running smoothly, I started my working towards improving quality and quality systems of the process. I believe that industrial engineering is more a process oriented concept; any improvement in process would result in better quality product. Hence I always concentrated on improving the quality of the process, than the product. 33. With this in mind, I started implementing Control Charts which is a scientific technique used under statistical quality control. Control charts are based on statistical sampling theory, according to which an adequate sized sample drawn, at random, from a lot represents the lot. Control chart is a diagnostic technique that represents the collected data graphically. The data pertains to the quality characteristics of the item or the sample. Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 15 of 18 Career Episode - 1 Career Episode – 1 First job as Industrial Engineer 34. Control charts are dynamic by nature and help to monitor the influence of variations in the processing conditions and can immediately tell us the undesired variations, it helps a lot in exploring the root cause and eliminating the manufacturing troubles. It helps in real time to monitor if the process is in or out of control, determines process variability, alerts unusual variations that might hamper the quality of the product and assures product quality. There are two types of control charts, Variable and Attribute control charts. Variable charts involve the measurement of the job dimensions and item is accepted or rejected if its dimensions are within or beyond fixed tolerance limits. Attribute charts differentiate between defective and non- defective item without going into the measurement of dimensions. 35. My interest was to get the output inspected at the end of the table and if there needs to be any rework or rejection it should end at sewing floor and only good quality garments should pass on to next process. This means that, the finished goods gets accepted or rejected at the output point without comprehensive inspection process and has to be in pace with the rate of output. Attribute charts are the only way to control quality in such cases where measurement of quality characteristics is either not possible or is very tedious. My interest was to keep a track on the process and p-chart served the purpose just perfect. A p-chart is also called as a fraction defective chart or percentage defective chart. The chart helps to control general quality of the components and monitors if the variations in product quality is just a chance cause or if there is much more to it. It provides real-time feedback on the quality assurance of the process. Upper and Lower control limits are calculated and the fraction defective is plotted in the chart. The process is said to be in control if the fraction defective values fall within the control limits. In case the process is out of control an investigation to hunt for the cause becomes necessary. The chart was updated real time and was reviewed on hourly basis. The defects and the frequency of occurrence were recorded on hourly basis. 36. I maintained a database from this data and started analyzing the most commonly occurring defects. I visually represented the data in graphs for ease of understanding of workers and quality team. I also calculated Defects per Hundred Units in percentage (DHU %) daily and summarized it on monthly basis and displayed it on the board to let the production lines know there performance in terms of quality. I used to plot the frequency of occurrence of defects and made the quality team to strategize proactively and develop solution to completely eliminate commonly occurring defects. If certain defects were inherent in the process, then I suggested the quality team to standardize acceptable tolerance levels. Hence I made it a point to develop a quality feedback mechanism and ensure continuous improvement in engineering the quality into the process and thus to the product. Career Episode - 1 Refer for SPC, Defects trends Chart, DHU trends chart in appendix page – 31 to 35 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 16 of 18 Career Episode – 1 First job as Industrial Engineer Performance Monitoring System of Operators 37. To appreciate the efforts of the workers for being cooperative with new systems and bringing up the performance level of the factory, the management decided to upgrade their wages by 100 INR (Indian Rupees) once every 3 months, based on their consistency of performance and this increment in the salary was in addition to annual increments. The management instructed the factory management team to recommend a list of consistently performing employees from every department who deserved appraisal. Initially I witnessed favouritism by the departmental managers in finalizing the recommendation list which I felt was ethically wrong. I brought this to the notice of the General/Factory/Production Managers and also to the senior management at corporate office and with their consent intervened into the procedure of finalizing the appraisal recommendation list. To ensure that the deserved gets the fair share of the profit, I started a performance monitoring system, based on which the list of operators who consistently performed were short listed for increments once every 3 months. I designed a transparent performance monitoring system and created awareness amoung the workers on the criterions for evaluation. Following is the procedure in brief that I designed and used for performance evaluation of workers involved in production process. 38. Procedure for performance evaluation of workers 1. List of all workers working on the floor were taken production line wise. 2. A format was prepared in which name of the worker, identification #, present salary, designation, DOJ, experience, work area good at, were entered. 3. This format had columns for the batch supervisor, floor in charge & production manager to rate each of the worker, as well columns for personnel officer to make his approval & comments. 4. 30 working days of production data of all the workers were collected well in advance, the data sheets were hand picked to ensure that those days were at the peak of the production, to give an added advantage to the workers. The data sheet had a record of everyday performance of the operator which was recorded on an hourly basis. It had the target per hour and the actual hourly production for 8 hours of every operator. Individual operator efficiency was monitored using these data sheets. 5. A four point table was designed by me, which reflects the consistency of the workers in their work. 6. If the operator efficiency was greater than or equal to 50% and lesser than 60 % (>= 50% and <>= 60% and <>= 70% and <>= 80%), the operator was awarded 4 point. Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 17 of 18 Career Episode – 1 First job as Industrial Engineer 10. Each days production by each of the worker were evaluated using the FOUR POINT TABLE and were accordingly awarded points against that day’s performance. 11. Further averages of such points were taken for the entire month. Those who crossed more than 55% of work efficiency were considered. 12. Further filtration was done by considering a year’s attendance details of each of the workers who were filtered out by IE. 13. After the approval of personnel officer, IE prepared the final list of workers eligible for salary revision in consent with personnel officer. 14. Further approvals were taken from Factory Manager, Production Manager & General Manager of the division to proceed with salary revisions. D. Summary 39. As I mentioned in my introduction, this was my first job after graduating as Industrial Engineer. When I started working, I was completely unaware on the role of IE in an apparel manufacturing sector. But as I spent more time on the floor and observing the process, I was able to correlate the process and the theoretical concepts that could be relevant for application to each of the processes. Even though, I didn’t know the technicalities of garmenting, I was able to successfully deliver the results that was expected of my. This experience was more like a proof to myself that Industrial Engineering is a process oriented concept and can be applied in any sector. I was successful in establishing the functions of IE in factory; as well the faith of what IE can do for a light engineering sector like apparel manufacturing. Following were my contributions in my role of production and quality engineer: 1. Increase Efficiency from 45% to 52% (Refer to Appendix Page – 36, for progress in Efficiency during my work tenure) 2. Computerization of production, quality and accountability systems. 3. Successfully handled compliance issues pertaining to production, quality, house keeping, records and documentation, and industrial engineering issues of the plant. 4. Designing production, quality and accountability system for factory. 5. Key role in performance management system. 6. Production planning and control activities for factory. 7. Implementation of industrial engineering concepts to improve productivity on shop floor. 8. Implementation of Statistical quality control technique(SQC) 9. Standard Procedures for Wage revision and fixation for workers. 10. Training/Awareness for Operators, Supervisors Career Episode - 1 Competency Demonstration Report – Industrial Engineering Balaji B Jagannath Page 18 of 18 PRODUCTION , QUALITY & MIS SYSTEMS CE1 - Appendix - Page 1 Fabric Fabric Description Fabric Vendor Fabric Quality Fabric Inspection by 4 point inspection System Required Vs Received Width Required Vs Received GSM Average Defect Points Defects Found Fabric Lead Times Fabric Ordered Date Fabric Planned In House Date Fabric Actual In House Date Lead Time For Different Fabrics Shade Band, Lots & GSM Quantity Verification & Segregation. D A T A B A S E ANALYSIS Vendor Rating based on Performance & Quality Input to Fabric Sourcing Team CE1 - Appendix - Page 2 Cutting Fabric required for the Style Style Merchandisers Production Daily Cutting Report Rejection Report Marker & Consumption Verification Report Manpower Usage Quality Reasons for deviation in consumption if any Pattern Measurement Report Pattern Correction Report if any & reasons Cut Panels Visual Inspection Report Cut Panels random measurement report Quality Dept Pattern Maker Doesn’t have to redo the pattern if the style has recurred. Rejection allowance to be considered for Ordering Fabric D A T A B A S E ANALYSIS Style wise Cutting Productivity Cutting Planning Production Planning Dept Rejection rate in cutting Manpower Requirement Critical areas in cutting & Rejection Rate Average consumption for cross verification CE1 - Appendix - Page 3 Production Style M/c Usage & Types of M/cs Target Setting Daily Production Time Study, Pitch Diagram & Line Balancing Manpower Machine Break downs & Reasons Line Setting & Learning Curve Raw materials Consumption Quality Sewing Technical Report Critical Operations & Mock ups Online & End batch Measurement & Visual Inspection Reports. Sewing Raw Material Consumption Estimation. Merchandisers Production Lead Time. Style wise Productivity D A T A B A S E Production Planning Dept Production Planning Rejection rate in Sewing Manpower Requirement Machine Requirement Man & Machine Hours Required Critical areas in Sewing Style Wise Rejections & Criticalities. Operation Wise Problems & Preventive Measures. ANALYSIS Quality Dept CE1 - Appendix - Page 4 Finishing Style wise Productivity Production Planning Dept Production Planning Rejection rate in Sewing Production Trimming Checking Buttoning Pressing Packing Manpower Utilization Quality Measurement Reports Visual Inspection Report Rejection Report & Reasons. D A T A B A S E Manpower Requirement ANALYSIS Critical areas in Sewing Style Wise Rejections & Criticalities. Operation Wise Problems & Preventive Measures. Quality Dept CE1 - Appendix - Page 5 Gokaldas Images Knitwear Division NCC - HOURLY PRODUCTION REPORT 30/06/2003 LINE - A BUYER PONO HOURS 1 2 3 4 5 6 7 8 9 10 GRAND TOTAL SMV GSD TARGET/DAY TARGET/HR STD HRS ACT HRS EFFICIENCY STD COST(INR) ADJ COST@50% (INR) ACT COST (INR) COST DIFF % DIFF TOTAL M/CS S/N O/L F/L HELPER OT M/CS OT HRS HRLY PRODN 35 40 35 40 40 60 55 50 0 0 355 31.79 15.10 498.3 62.29 188.08 264.00 71.24 40.26 80.53 H.M KW1494 CUM PRODN 35 75 110 150 190 250 305 355 355 355 LINE - B BUYER PONO HRLY PRODN 30 35 35 10 45 45 45 20 0 0 265 28.15 17.05 528.55 66.07 124.34 248.00 50.14 35.66 71.32 H.M KW1457 CUM PRODN 30 65 100 110 155 200 245 265 265 265 LINE - C BUYER PONO HRLY PRODN 40 40 40 45 45 45 45 50 0 0 350 28.15 17.05 562.65 70.33 164.22 264.00 62.21 35.66 71.32 H.M KW1457 CUM PRODN 40 80 120 165 210 255 300 350 350 350 LINE - D BUYER PONO HRLY PRODN 15 15 20 25 25 20 15 25 0 0 160 25.42 18.88 302.08 37.76 67.80 128.00 52.97 32.20 64.41 H.M KW1496 CUM PRODN 15 30 50 75 100 120 135 160 160 160 LINE - E BUYER PONO HRLY PRODN 15 15 25 35 40 40 40 10 0 0 220 25.42 18.88 660.8 82.6 93.22 280.00 33.29 32.20 64.41 637.66 1184.00 53.86 175.99 351.98 H.M KW1496 CUM PRODN 15 30 55 90 130 170 210 220 220 220 HRLY TOTAL 135 145 155 155 195 210 200 155 0 0 1350 CUM TOTAL 135 280 435 590 785 995 1195 1350 1350 1350 56.52 -24.01 -29.82 33 25 7 1 6 71.12 -0.20 -0.27 31 25 5 1 7 57.33 -13.99 -19.62 33 27 5 1 8 60.80 -3.61 -5.60 16 11 5 0 4 96.73 32.32 50.18 35 25 9 1 6 342.50 -9.49 -2.70 148 113 31 4 31 CE1 - Appendix Page - 6 Gokaldas Images Knitwear Division NCC - TIME STUDY ANALYSIS SHEET PO NO: KW1496/1583 DATE: 03/07/03 UNITS POSSIBLE/OPR @ OT 109 129 146 219 49 79 65 52 47 116 49 38 64 117 78 301 271 720 109 159 78 59 23 38 UNITS POSSIBLE/OPR @ ST 152 179 221 332 77 126 114 82 75 168 77 67 104 189 127 418 377 600 172 262 123 100 39 59 ACTUAL RATING = ST/OTx100 OPR NO DESCRIPTION OF ELEMENT A.O.T Ra B.O.T Rb C.O.T Rc D.O.T Rd E.O.T Re AVG OT RAVG NT ST M/CS USED 1 1 1 1 1 1 1 4 3 1 1 2 2 1 1 1 1 1 1 1 2 2 3 2 36 O/P REQ M/CS ADD/REMOVE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PCKT CREASING - H PCKT MARKING - H PCKT SIDE PNL ATCH PCKT SIDE PNL ES PCKT ATCH 1 PCKT ATCH 2 PCKT ATCH 3 PIPING ATCH SLV RDY SLV JOINT O/L SIDE PNL O/L SLV ATCH O/L HOOD ATCH HOOD O/L NCK TAPE ATCH HOOD PNLS RDY PCKT F/L PIPING RDY HOODS JOIN HOODS TOP CENTRE LCK HOODS BTM CLOSE+HOODS LCKS NCK TAPE FINISH BTM RIB ATCH CUFF ATCH 35.00 30.00 24.00 12.00 70.00 41.00 50.00 70.00 80.00 38.00 76.00 84.00 59.00 34.00 40.00 10.00 10.00 5.00 32.00 23.00 44.00 56.00 147.00 86.00 0.60 0.60 0.55 0.55 0.50 0.60 0.50 0.50 0.50 0.55 0.50 0.50 0.50 0.50 0.50 0.60 0.60 1.00 0.55 0.50 0.53 0.50 0.50 0.55 31.00 26 28.00 20.00 74.00 42.00 52.00 94.00 100.00 44.00 69.00 110.00 65.00 32.00 46.00 16.00 10.00 5.00 35.00 26.00 46.00 57.00 154.00 100.00 0.60 0.60 0.55 0.55 0.55 0.55 0.50 0.50 0.45 0.50 0.55 0.45 0.45 0.50 0.50 0.60 0.60 1.00 0.55 0.50 0.53 0.50 0.50 0.55 33.00 28.00 24.00 20.00 72.00 45.00 62.00 58.00 68.00 28.00 70.00 85.00 56.00 29.00 50.00 10.00 20.00 5.00 37.00 20.00 46.00 72.00 170.00 130.00 0.60 0.60 0.55 0.55 0.55 0.55 0.45 0.55 0.55 0.60 0.55 0.50 0.55 0.55 0.50 0.60 0.60 1.00 0.50 0.55 0.53 0.45 0.50 0.50 33.00 28.00 26.00 20.00 84.00 46.00 53.00 64.00 74.00 32.00 77.00 104.00 45.00 31.00 45.00 10.00 18.00 5.00 32.00 21.00 47.00 61.00 150.00 90.00 0.60 0.60 0.55 0.55 0.50 0.50 0.50 0.55 0.55 0.60 0.50 0.45 0.60 0.50 0.55 0.60 0.60 1.00 0.50 0.55 0.53 0.50 0.50 0.50 33.00 28.00 22.00 14.00 68.00 56.00 61.00 70.00 70.00 22.00 75.00 92.00 59.00 28.00 52.00 18.00 14.00 5.00 30.00 24.00 48.00 63.00 150.00 85.00 0.60 0.60 0.55 0.55 0.55 0.45 0.45 0.55 0.55 0.65 0.55 0.50 0.50 0.55 0.50 0.60 0.60 1.00 0.55 0.45 0.53 0.50 0.50 0.55 32.95 27.94 24.63 16.41 73.21 45.45 55.17 69.37 76.92 30.97 73.25 93.90 55.95 30.65 46.21 11.96 13.26 5.00 33.02 22.60 46.16 61.31 153.79 95.79 1195.89 0.60 0.60 0.55 0.55 0.53 0.52 0.48 0.53 0.52 0.58 0.53 0.48 0.52 0.52 0.51 0.60 0.60 1.00 0.53 0.51 0.53 0.49 0.50 0.53 19.77 16.77 13.55 9.02 38.72 23.86 26.41 36.69 39.74 17.82 38.74 44.95 28.82 15.90 23.53 7.18 7.96 5.00 17.46 11.46 24.47 29.99 76.89 50.66 23.73 20.12 16.26 10.83 46.46 28.63 31.70 44.02 47.69 21.38 46.49 53.95 34.58 19.09 28.24 8.61 9.55 6.00 20.95 13.76 29.36 35.98 92.27 60.79 750.43 152 179 221 332 77 126 114 327 226 168 77 133 208 189 127 418 377 600 172 262 245 200 117 118 77 0.62 0.53 0.47 0.31 1.38 0.86 1.04 1.31 1.45 0.58 1.38 1.77 1.06 0.58 0.87 0.23 0.25 0.09 0.62 0.43 0.87 1.16 2.90 1.81 23 0.38 0.47 0.53 0.69 -0.38 0.14 -0.04 2.69 1.55 0.42 -0.38 0.23 0.94 0.42 0.13 0.77 0.75 0.91 0.38 0.57 1.13 0.84 0.10 0.19 13.41 BPT STPT SPT UCL LCL ACT ORG EFF PLND PROD PROD/OPR POSS DAILY O/P 31.47 BOTTLE NECK 1435.07 38.79 39.34 23.60 20.46 594.03 18.56 642.20 CYCLE TIME O/P REQ/DAY 153.79 544 @100% 435 @80% 52.94 68 UNITS/HR 54 UNITS/HR CE1 - Appendix Page - 7 180 PITCH DIAGRAM FOR KW1496/1583 160 153.79 140 120 100 93.90 80 73.21 60 55.17 45.45 40 32.95 27.94 20 24.63 16.41 11.96 13.26 5.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30.97 30.65 33.02 22.60 55.95 46.21 46.16 69.37 61.31 95.79 76.92 73.25 UCL AVG OT LCL CE1 - Appendix Page - 8 Gokaldas Images Knitwear Division NCC - Production Plan LAYOUT PLAN FOR KW1436 TARGET FOR BATCH/DAY - 500UNITS TARGET FOR BATCH/HR - 63UNITS 1.HOOD O/L - 1 2 HOOD LOCK 3 HOOD/C/STITCH 4 SLEEVE PIPING 6 FRONT/POCKET BONE ATTACH 8 POCKET F/L 9 POCKET ATTACH 10 SIDE PANEL 11 SIDE PANEL O/L 12 SLEEVE LOCK 13 SLEEVE O/L 14 HOOD ATTACH 16 NECK TAPE ATTACH 17 NECK TAPE FINISHING 18 CUFF/BOTTOM/R/ATTACH 19 CUFF/BOTTOM/R/OL O/L SNLS SNLS O/L SNLS F/L SNLS SNLS O/L SNLS O/L SNLS SNLS SNLS SNLS O/L O/L SNLS O/L O/L SNLS SNLS SNLS SNLS SNLS O/L SNLS O/L SNLS SNLS SNLS F/L 1.HOOD O/L - 2 3 HOOD/C/STITCH 4 SLEEVE PIPING 5 SLEEVE SIDE O/L 7 BONE EDGE STITCH 9 POCKET ATTACH 10 SIDE PANEL 10 SIDE PANEL 12 SLEEVE LOCK 13 SLEEVE O/L 14 HOOD ATTACH 15 HOOD O/L 16 NECK TAPE ATTACH 17 NECK TAPE FINISHING 18 CUFF/BOTTOM/R/ATTACH 20 CUFF F/L 20 CUFF F/L F/L M/C SNLS OL FL TOTAL # 20 10 3 33 CE1 - Appendix Page - 9 Gokaldas Images Knitwear Division NCC - Production Plan MACHINERY/PRODUCTION PLAN FOR KW11496 OPR NO 2 4 5 6 7 9 10 11 12 13 14 15 16 17 18 20 21 22 23 25 26 27 28 29 30 31 32 33 SMV (SECS) UNITS/HR 28.80 125 28.80 125 29.40 122 42.60 85 31.20 115 30.60 118 70.20 51 73.80 49 38.40 94 54.60 66 30.60 118 28.80 125 57.60 63 28.80 125 41.40 87 22.20 162 85.80 42 100.80 36 51.00 71 84.60 43 35.40 102 21.00 171 57.60 63 23.40 154 43.20 83 7.20 500 6.60 545 47.40 76 1201.80 O/P REQ/ DAY 623.04 CYCLE TIME 46.22 SMV 0.48 0.48 0.49 0.71 0.52 0.51 1.17 1.23 0.64 0.91 0.51 0.48 0.96 0.48 0.69 0.37 1.43 1.68 0.85 1.41 0.59 0.35 0.96 0.39 0.72 0.12 0.11 0.79 M/CS 0.62 0.62 0.64 0.92 0.68 0.66 1.52 1.60 0.83 1.18 0.66 0.62 1.25 0.62 0.90 0.48 1.86 2.18 1.10 1.83 0.77 0.45 1.25 0.51 0.93 0.16 0.14 1.03 26.00 77.88 UNITS/M/C/HR 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 77.89 UNITS/HR AS PER GSD REQUIRED NO OF M/CS IS 31 AS PER GSD THE TARGET FOR THE BATCH WITH 31 M/CS =585 UNITS @ 73UNITS/HR ACTUAL M/CS USED IN BATCH IS 33 AS PER GSD TARGET FOR A BATCH OF 33 M/CS THE PRODUCTION SHOULD BE = 623UNITS & @ 80% WILL BE 498 UNITS @62 UNITS/HR LINE BALANCING DONE FOR 100% TARGET CUTTING REQUIRED PER DAY = 600 UNITS PLANNED BY BALAJI/SRINIVAS VERIFIED BY N L KUMAR CE1 - Appendix Page - 10 Career Episode – 1 First job as Industrial Engineer Formulae Sheet 1. Standard Hours Standard Hours is defined as the amount of time that should have been utilized to produce the actual output from the production line. Standard Hours is also referred to as Earned Hours. Standard Hours = (Number of Units Produced X 8 hours)/GSD Target OR Standard Hours = Number of Units Produced X Standard Minute Value (in Minutes) 2. Actual Hours Actual Hours is defined as the amount of time that has been actually utilized to produce the actual output from the production line. Actual Hours is also referred to as Available Hours. Actual Hours = (Number of Machines Used X 8 Hours Shift) + (Over Time Machines Booked X Over Time Hours Utilized) Over Time: It is the extra time employed beyond regular work hours in case of emergency work. The number of machines to be employed and the number of hours to be employed is decided on the basis of the urgency and the bottlenecks in the production flow. As per the Labour laws of the land, not more than 2hours of overtime can be employed in a day. 3. Efficiency It is defined the measure of utilization of resources employed. In this particular scenario, I’m trying to measure the utilization of Machine hours employed as it is the most critical contributor to the work cost or cost of production of the garment. The better we utilize it, the more we produce at a reduced cost of production which implies increased profit margin. Efficiency = (Standard Hours / Actual Hours) X 100 OR Efficiency = (Earned Hours / Available Hours) X 100 OR Efficiency = (Achieved Target/GSD Target) X 100 Achieved Target = Number of units produced per line/Number of Machines used in the line. 4. Actual Hours at 60% PO Efficiency (Act Hrs @ 60% PO Eff %): Actual Hours at 60% PO Efficiency, is the number of machine hours that we should have actually used if we were performing at 60% efficiency. Here 60% is the targeted efficiency of the organization’s operational performance or it can also be the desired organizational efficiency. Actual Hours at 60% (or desired efficiency) PO Efficiency = Standard Hours / 60% Competency Demonstration Report – Industrial Engineering Balaji B Jagannath CE1 - Appendix Page - 11 Career Episode – 1 First job as Industrial Engineer 5. Excess Actual Hours Over 60% Efficiency: The difference between Actual hours and Actual Hours at 60% PO Efficiency is Excess actual hours over 60% efficiency. This determines how much of machine hours we have utilized in excess as compared to what we should have used in proportion to the production achieved. Excess Actual Hours Over 60% Efficiency = Actual Hours at 60% PO Efficiency – Actual Hours 6. Total Loss at the rate of INR 125/hour (Total Loss @ INR 125/Hr ($ 2.5/hr)) It calculates the loss in terms of work cost or cost of production due to excess actual hours utilization. In other words it estimates how much work cost we have incurred in excess against what we should have actually spent. The work cost per hour at GI during 2002-2003 was INR 125 per hour. Total Loss at the rate of INR 125/hour = Excess Actual Hours Over 60% Efficiency X INR 125 7. Loss per Machine Apportions the total loss on the number of machines used for production, indicating the loss per machine. This statistics helps us to cut down the work cost in real time scenario. It is more a simple means of understanding the impact of productivity and efficiency on the operations and the incurring costs. Loss per Machine = (Total Loss at the rate of INR 125/hour) / Number of Machines used 8. Revenue Earned It is the estimated revenue earned per day from the obtained output Revenue Earned = Budgeted Cost per Units X Number of Units Produced 9. Revenue Earned per Machine Apportions the total revenue earned on the number of machines used for production, indicating the earnings per machine. This statistics helps us to understand our earnings per unit produced and compare with our expenditure per hour helping us to understand the profit/loss in terms of savings or excess expenditure in terms of work cost in real time scenario. It is more a simple means of understanding the impact of productivity and efficiency on the operations and the incurring costs. When we save work cost we increase profit margin and when we loose on work cost we reduce our profit margin. Revenue earned per Machine = Revenue Earned / Number of Machines used Competency Demonstration Report – Industrial Engineering Balaji B Jagannath CE1 - Appendix Page - 12 Career Episode – 1 First job as Industrial Engineer Cost Economics of Manufacturing 10. Standard Cost (STD COST) It is the work cost or cost of production incurred if we perform at an ideal level of 100%. Standard Cost = (Machine Hour Rate X 8 Hours/Shift) / GSD Target OR Standard Cost = (Machine Hour Rate / 60) X SMV Machine Hour Rate in GI during 2002-2003 was INR 76 Standard Minute Value (SMV): The total time allowed, for a job to bed completed, at standard performance. It includes the work content, rest, machine delay and contingency allowances as appropriate. SMV is derived with the aid of GSD Software in GI. 11. Machine Hour Rate (MHR Cost allocation base that provides a systematic and contemporaneous method of applying overhead costs to work-in-process inventory. An overhead rate of cost per hour of work expended by a machine is applied to the work-in-process. With respect to modern mechanized production, such machine-hour-based rates produce more accurate application of overhead than rates based on direct labor-hours. This calculation was always done by MIS department with guidance from Finance department at GI. Machine Hour Rate (MHR) = Total Machine Hours Available per Month / Monthly Operating Expenses Total Machine Hours Available per Month = Total Number of Machines Available X Percentage of Machine Utilization X Number of Working Hours per Shift X Number of Working Days per Month Percentage Machine Utilization = (Total Number of Machines Utilized per day / Total Number of Machines Available) X 100 Monthly Operating Expenses = Direct Expenses + Employee Related Expenses + Depreciation 12. Budgeted/Adjusted Cost (ADJ COST) It is the estimated work cost or cost of production that would be incurred if we perform at the current operational efficiency of the organization. It is also termed as “Budgeted Cost” Adjusted Cost = Standard Cost / Current Operational Efficiency Current Operational Efficiency at GI during 2002-2003 was 50%. Competency Demonstration Report – Industrial Engineering Balaji B Jagannath CE1 - Appendix Page - 13 Career Episode – 1 First job as Industrial Engineer 13. Actual Cost (ACT COST) It is the actual work cost or cost of production that was incurred at the average operational efficiency of the production line, during the entire production run. Actual Cost = (Machine Hour Rate X 8 Hours/Shift) / (Total Output for the day / Total Number of Machines Used) 14. Cost Difference (COST DIFF) The deviation in the work cost or cost of production from Adjusted to Actual Cost is calculated in Cost Difference Cost Difference = Actual Cost – Adjusted Cost If Cost Difference is negative, it implies that we have incurred less work cost than what we estimated. This in turn implies increased profit margin. If Cost Difference is positive, it implies that we have incurred more work cost than we estimated and thus it means that the overshot expenses have eaten into our profit. In the above example we can see that we have saved the work cost by INR 24.01 that the estimated work cost (Adjusted Cost) of INR 80.53. 15. Percentage Cost Difference (% DIFF) The deviation in the work cost or cost of production from Adjusted to Actual Cost is calculated in Cost Difference is indicated in terms of percentage of the Adjusted Cost. % Cost Difference = (Cost Difference / Adjusted Cost) X 100 In the above example we can see that we have saved the work cost by INR 24.01 that the estimated work cost (Adjusted Cost) of INR 80.53 which is about 29.82% of the Adjusted Cost. This implies that we have saved 29.82% of work cost than what we had initially estimated. Competency Demonstration Report – Industrial Engineering Balaji B Jagannath CE1 - Appendix Page - 14 Career Episode – 1 First job as Industrial Engineer Introduction to General Sewing Data (GSD) General Sewing Data (GSD) was devised by Methods Workshop Limited and published in 1978, and is subject to continual development programme by GSD (Corporate) Limited based in Preston, UK (www.gsdhq.com). It is a Predetermined Motion System designed specifically for the sewn product industries. GSD was developed with the co-operation and assistance from the several clothing manufacturing companies using MTM core data, to provide a consistent, accurate and easy to understand method analysis and time determination technique designed specifically for needle trades. The Industrial Engineering department at GI corporate office uses GSD software and makes operation analysis of the product, determines the time required to make that product and hence derives the GSD target after adding all necessary allowances. The GSD target is always given in number of units to be produced per machine per 8 hours work shift. Example Calculation of GSD target for a simple T-Shirt: Operation # 1 2 3 4 5 6 7 Operation Description Attach Shoulders Attach Neck Sleeves Attach Sew & Close Side Seams Hem Bottom Hem Sleeves Attach Label Stitch Type Over Lock Single Needle Lock Stitch Over Lock Over Lock Flat Lock Flat Lock Single Needle Lock Stitch Machine Type Over Lock Singer Over Lock Over Lock Flat Lock Flat Lock Singer SMV (In Mins) 0.59 1.36 0.93 0.85 0.55 0.61 0.35 5.24 5.76 480 83.28 Total Time (A) Allowance 10% (A + (A X 10%)) Working Time per Day (B) Target/M/c/Shift ( 480 / B) We can see from the above table that there are 7 operations in sewing a simple T – Shirt. For each of the above listed operations, the time taken to perform those operations is determined by Pre Determined Motion Time Study. Operation 1 Operation Description: Attach Shoulder of the T – Shirt Stitch Type: Over Lock Stitch Sewing Machine Type: Over Lock Machine Competency Demonstration Report – Industrial Engineering Balaji B Jagannath CE1 - Appendix Page - 15 Career Episode – 1 First job as Industrial Engineer The above data can be interpreted in the following way. Operation 1 is attaching the shoulders of T-Shirt; this attaching is done by Over Lock Stitch in an Over Lock Sewing Machine. SMV (In Minutes): 0.59 SMV is obtained for any operation using the GSD software SMV (In Minutes): This means that to attach the shoulders of a simple T-Shirt it requires 0.59 of a minute 0.59 X 60 = 35.40 seconds. In this way time required to carry out every operation is determined. When we add up the timings of all the operations, we obtain the time required to sew a garment. In the above table, we can see that to sew a simple T-Shirt, time required is = 5.24 mins = 5.24 X 60 = 314.40 seconds To this we give allowance of 10% (5% as Operator Allowance which includes, fatigue allowance, physiological needs and the rest of 5% for unavoidable imbalance is production line and the complexity of the product). Hence the time required to sew the TShirt increases to = 5.24+ (5.24 X 10%) = 5.24+0.52 = 5.76 mins = 5.76 X 60 = 345.84 seconds Number of Working Hours per shift = 8 Hours = 8 X 60 = 480 mins = 480 X 60 = 28800 seconds To sew one T-Shirt, we require 5.76 minutes or 345.84 seconds So the possible output for the day is = 480/5.76 or 28800/345.84 = 83.28 units/machine/8 hours shift GSD target is always calculate for 1 machine working for 8 hours Ideally speaking we should be able to set the target based on the employed manpower, but Apparel industry is yet to standardize the time for operations. The number of variables affecting the apparel sector and the styling is very high due to everyday change in fashion trends. Hence GSD software and the IE in apparel industry for now have limited itself to giving scientific targets based on PMTS only for machine operations. All manual operations are being given targets based on time study. Competency Demonstration Report – Industrial Engineering Balaji B Jagannath CE1 - Appendix Page - 16 Gokaldas Images Knitwear Division NCC - POWISE PERFORMANCE REPORT FOR THE MONTH OF JUNE 2003 PO KW1409 TARGET 31.58 STD COST/PC 12.67 UNITS PRODUCED ADJ.STD COST/PC 21.11 ACHIEVED TARGET Act Hrs @ 60% P O Eff % 108.51 138.91 201.82 164.66 287.10 280.77 192.10 227.99 128.77 137.22 116.11 25.75 Excess Actual Hrs Over 60% Eff% 19.49 -26.91 -1.82 -4.66 -39.10 -16.77 71.90 28.01 -0.77 -1.22 19.89 6.25 Total Loss @ Rs 125/Hr ($ 2.5/hr) 2436.56 -3363.31 -226.94 -582.65 -4887.69 -2096.05 8986.91 3500.95 -96.69 -152.21 2486.59 780.66 6786.15 18.38 ADJ.STD COST/PC 13.94 ACHIEVED TARGET Act Hrs @ 60% P O Eff % 112.92 97.59 64.69 29.83 103.16 94.80 105.95 83.65 114.32 93.41 92.01 26.49 6.69 Excess Actual Hrs Over 60% Eff% -0.92 22.41 23.31 50.17 16.84 25.20 14.05 36.35 5.68 26.59 27.99 85.51 9.31 Total Loss @ Rs 125/Hr ($ 2.5/hr) -115.43 2801.48 2914.12 6270.74 2104.42 3150.01 1755.89 4544.12 710.30 3324.27 3498.54 10688.97 1163.53 42810.96 20.55 3293.15 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 403.26 325.27 294.01 149.16 343.85 315.97 353.15 278.80 381.03 311.33 306.68 94.59 167.28 3724.38 286.49 565.51 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 339.08 496.09 403.62 411.65 463.06 425.40 291.06 356.23 402.41 403.57 341.49 321.93 4655.58 387.96 DATES M/Cs OT M/Cs OT HRS STD HRS ACT HRS EFF % 05/06/2003 06/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 16/06/2003 17/06/2003 18/06/2003 19/06/2003 20/06/2003 TOTAL AVG PO KW1411 16 14 25 20 31 33 33 32 16 17 17 4 257 329 478 390 680 665 455 540 305 325 275 61 4760 65.10 83.34 121.09 98.80 172.26 168.46 115.26 136.80 77.26 82.33 69.66 15.45 1205.83 128.00 112.00 200.00 160.00 248.00 264.00 264.00 256.00 128.00 136.00 136.00 32.00 2064.00 50.86 74.41 60.54 61.75 69.46 63.81 43.66 53.44 60.36 60.54 51.22 48.29 58.42 16.06 23.50 19.12 19.50 21.94 20.15 13.79 16.88 19.06 19.12 16.18 15.25 152.29 -240.24 -9.08 -29.13 -157.67 -63.52 272.33 109.40 -6.04 -8.95 146.27 195.17 360.83 30.07 Cost Diff 24.90 17.02 20.92 20.51 18.24 19.85 29.01 23.70 20.98 20.92 24.73 26.23 5425.27 6945.19 10090.58 8232.90 14354.80 14038.15 9605.05 11399.40 6438.55 6860.75 5805.25 1287.71 100483.60 21.50 TARGET 47.82 396.67 STD COST/PC 8.36 UNITS PRODUCED 22.25 1.14 8373.63 5.41% DATES M/Cs OT M/Cs OT HRS STD HRS ACT HRS EFF % 02/06/2003 03/06/2003 04/06/2003 05/06/2003 06/06/2003 07/06/2003 09/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 20/06/2003 TOTAL AVG 14 15 11 10 15 15 15 15 15 15 15 14 2 405 350 232 107 370 340 380 300 410 335 330 95 24 3678 67.75 58.55 38.81 17.90 61.90 56.88 63.57 50.19 68.59 56.04 55.21 15.89 4.02 615.31 112.00 120.00 88.00 80.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 112.00 16.00 1368.00 60.49 48.79 44.10 22.38 51.58 47.40 52.98 41.82 57.16 46.70 46.01 14.19 25.09 44.98 28.93 23.33 21.09 10.70 24.67 22.67 25.33 20.00 27.33 22.33 22.00 6.79 12.00 -8.25 186.77 264.92 627.07 140.29 210.00 117.06 302.94 47.35 221.62 233.24 763.50 581.76 3688.28 283.71 Cost Diff 13.83 17.14 18.97 37.38 16.22 17.65 15.79 20.00 14.63 17.91 18.18 58.95 33.33 5645.70 4879.00 3234.08 1491.58 5157.80 4739.60 5297.20 4182.00 5715.40 4669.90 4600.20 1324.30 334.56 51271.32 13.15 282.92 23.08 9.13 3943.95 65.52% Page 1 of 5 CE1 - Appendix Page - 17 PO KW1421 TARGET 41.69 STD COST/PC 9.59 ADJ.STD COST/PC 15.99 Act Hrs @ 60% P O Eff % 24.95 131.45 35.50 26.55 Excess Actual Hrs Over 60% Eff% -0.95 4.55 36.50 45.45 Total Loss @ Rs 125/Hr ($ 2.5/hr) -118.25 569.20 4562.49 5681.86 10695.29 17.93 ADJ.STD COST/PC 22.54 Act Hrs @ 60% P O Eff % 27.05 215.01 283.98 64.01 126.21 Excess Actual Hrs Over 60% Eff% 36.95 -39.01 -19.98 -0.01 -30.21 Total Loss @ Rs 125/Hr ($ 2.5/hr) 4619.34 -4876.27 -2496.96 -0.90 -3776.43 -6531.21 17.87 ADJ.STD COST/PC 39.10 Act Hrs @ 60% P O Eff % 324.54 254.15 277.61 312.81 297.17 277.61 351.91 371.46 351.91 136.85 391.01 434.02 391.01 Excess Actual Hrs Over 60% Eff% -76.54 -6.15 -13.61 -32.81 -25.17 -13.61 -71.91 -56.46 -63.91 127.15 -76.01 -119.02 -151.01 Total Loss @ Rs 125/Hr ($ 2.5/hr) -9566.96 -769.31 -1701.86 -4100.68 -3145.65 -1701.86 -8988.27 -7057.06 -7988.27 15893.45 -9500.86 -14877.20 -18875.86 -72380.38 12.23 -5567.72 REVENUE EARNED PER M/C 523.44 409.92 420.62 446.86 437.00 420.62 502.71 530.64 488.75 207.35 558.57 620.01 651.67 6218.16 478.32 -1306.24 REVENUE EARNED PER M/C 169.05 488.71 430.31 400.09 525.93 2014.09 402.82 2673.82 REVENUE EARNED PER M/C 415.74 386.58 197.21 147.46 1147.00 286.75 DATES M/Cs UNITS PRODUCED OT M/Cs OT HRS STD HRS ACT HRS EFF % ACHIEVED TARGET LOSS PER MACHINE ACTUAL COST REVENUE EARNED 04/06/2003 05/06/2003 06/06/2003 07/06/2003 TOTAL AVG PO KW1423 3 17 9 9 78 411 111 83 683 14.97 78.87 21.30 15.93 131.06 24.00 136.00 72.00 72.00 304 62.37 57.99 29.58 22.12 43.11 26.00 24.18 12.33 9.22 -39.42 33.48 506.94 631.32 1132.32 283.08 Cost Diff 15.38 16.55 32.43 43.37 1247.22 6571.89 1774.89 1327.17 10921.17 9.50 TARGET 29.58 170.75 STD COST/PC 13.52 26.93 10.94 2730.29 68.43% DATES M/Cs UNITS PRODUCED OT M/Cs OT HRS STD HRS ACT HRS EFF % ACHIEVED TARGET LOSS PER MACHINE ACTUAL COST REVENUE EARNED 06/06/2003 07/06/2003 09/06/2003 10/06/2003 11/06/2003 TOTAL AVG PO KW1427 8 22 33 8 12 60 477 630 142 280 1589 16.23 129.01 170.39 38.40 75.73 429.75 64.00 176.00 264.00 64.00 96.00 664 25.35 73.30 64.54 60.01 78.88 64.72 7.50 21.68 19.09 17.75 23.33 577.42 -221.65 -75.67 -0.11 -314.70 -34.71 -6.94 Cost Diff 53.33 18.45 20.95 22.54 17.14 1352.40 10751.58 14200.20 3200.68 6311.20 35816.06 16.60 TARGET 17.05 317.80 STD COST/PC 23.46 26.48 3.94 7163.21 17.50% DATES M/Cs UNITS PRODUCED OT M/Cs OT HRS STD HRS ACT HRS EFF % ACHIEVED TARGET LOSS PER MACHINE ACTUAL COST REVENUE EARNED 05/06/2003 06/06/2003 07/06/2003 09/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 15/06/2003 16/06/2003 17/06/2003 18/06/2003 TOTAL AVG 31 31 33 35 34 33 35 35 36 33 35 35 30 415 325 355 400 380 355 450 475 450 175 500 555 500 5335 35 35 1 1 35 1 194.72 152.49 166.57 187.68 178.30 166.57 211.14 222.87 211.14 82.11 234.60 260.41 234.60 2503.23 248.00 248.00 264.00 280.00 272.00 264.00 280.00 315.00 288.00 264.00 315.00 315.00 240.00 3593 78.52 61.49 63.09 67.03 65.55 63.09 75.41 70.75 73.31 31.10 74.48 82.67 97.75 69.67 13.39 10.48 10.76 11.43 11.18 10.76 12.86 13.57 12.50 5.30 14.29 15.86 16.67 -308.61 -24.82 -51.57 -117.16 -92.52 -51.57 -256.81 -201.63 -221.90 481.62 -271.45 -425.06 -629.20 -2170.68 -166.98 Cost Diff 29.88 38.15 37.18 35.00 35.79 37.18 31.11 29.47 32.00 75.43 28.00 25.23 24.00 16226.50 12707.50 13880.50 15640.00 14858.00 13880.50 17595.00 18572.50 17595.00 6842.50 19550.00 21700.50 19550.00 208598.50 33.54 410.38 35.26 -3.84 16046.04 -9.81% Page 2 of 5 CE1 - Appendix Page - 18 PO KW1456 TARGET 17.05 STD COST/PC 23.46 UNITS PRODUCED ADJ.STD COST/PC 39.10 ACHIEVED TARGET Act Hrs @ 60% P O Eff % 1118.28 1094.82 746.04 531.77 414.47 150.15 129.03 218.96 136.85 Excess Actual Hrs Over 60% Eff% -54.28 -38.82 -42.04 12.23 97.53 97.85 102.97 37.04 -8.85 Total Loss @ Rs 125/Hr ($ 2.5/hr) -6784.95 -4852.39 -5255.13 1528.84 12191.59 12231.67 12870.97 4629.52 -1106.55 25453.57 9.12 ADJ.STD COST/PC 39.10 Act Hrs @ 60% P O Eff % 105.57 242.42 226.78 234.60 250.24 285.43 273.70 74.29 58.65 480.94 Excess Actual Hrs Over 60% Eff% 14.43 93.58 29.22 21.40 125.76 42.57 70.30 37.71 533.35 31.06 Total Loss @ Rs 125/Hr ($ 2.5/hr) 1803.52 11696.97 3652.00 2674.49 15719.45 5320.63 8786.90 4713.59 66668.62 3882.70 124918.87 7.61 12491.89 REVENUE EARNED PER M/C 351.90 288.60 354.34 366.56 266.21 348.09 318.26 265.32 39.63 375.73 2974.63 297.46 2828.17 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 420.40 414.70 423.88 391.00 323.80 242.17 222.47 342.13 427.66 3208.19 356.47 DATES M/Cs OT M/Cs OT HRS STD HRS ACT HRS EFF % 02/06/2003 03/06/2003 04/06/2003 05/06/2003 06/06/2003 07/06/2003 17/06/2003 18/06/2003 19/06/2003 TOTAL AVG PO KW1457 133 132 88 68 64 31 29 32 16 1430 1400 954 680 530 192 165 280 175 5806 670.97 656.89 447.62 319.06 248.68 90.09 77.42 131.38 82.11 2724.22 1064.00 1056.00 704.00 544.00 512.00 248.00 232.00 256.00 128.00 4744 63.06 62.21 63.58 58.65 48.57 36.33 33.37 51.32 64.15 57.42 10.75 10.61 10.84 10.00 8.28 6.19 5.69 8.75 10.94 -51.01 -36.76 -59.72 22.48 190.49 394.57 443.83 144.67 -69.16 979.39 108.82 Cost Diff 37.20 37.71 36.90 40.00 48.30 64.58 70.30 45.71 36.57 55913.00 54740.00 37301.40 26588.00 20723.00 7507.20 6451.50 10948.00 6842.50 227014.60 65.89 TARGET 17.05 645.11 STD COST/PC 23.46 46.37 7.26 25223.84 18.58% DATES M/Cs UNITS PRODUCED OT M/Cs OT HRS STD HRS ACT HRS EFF % ACHIEVED TARGET LOSS PER MACHINE ACTUAL COST REVENUE EARNED 19/06/2003 20/06/2003 21/06/2003 23/06/2003 24/06/2003 25/06/2003 26/06/2003 27/06/2003 28/06/2003 30/06/2003 TOTAL AVG 15 42 32 32 47 41 43 14 74 64 135 310 290 300 320 365 350 95 75 615 2855 63.34 145.45 136.07 140.76 150.15 171.26 164.22 44.57 35.19 288.56 1339.59 120.00 336.00 256.00 256.00 376.00 328.00 344.00 112.00 592.00 512.00 3232 52.79 43.29 53.15 54.99 39.93 52.21 47.74 39.80 5.94 56.36 41.45 9.00 7.38 9.06 9.38 6.81 8.90 8.14 6.79 1.01 9.61 120.23 278.50 114.13 83.58 334.46 129.77 204.35 336.68 900.93 60.67 2563.29 256.33 Cost Diff 44.44 54.19 44.14 42.67 58.75 44.93 49.14 58.95 394.67 41.63 5278.50 12121.00 11339.00 11730.00 12512.00 14271.50 13685.00 3714.50 2932.50 24046.50 111630.50 40.40 285.50 83.35 44.25 11163.05 113.17% Page 3 of 5 CE1 - Appendix Page - 19 PO KW1494 TARGET 14.90 STD COST/PC 26.85 ADJ.STD COST/PC 44.74 Act Hrs @ 60% P O Eff % 89.49 237.14 380.31 434.00 478.75 541.39 317.67 541.39 621.92 604.03 608.50 863.53 255.03 389.26 805.37 845.64 918.12 612.98 380.31 317.67 Excess Actual Hrs Over 60% Eff% 350.51 274.86 131.69 94.00 41.25 -5.39 186.33 -13.39 -93.92 -76.03 167.50 -63.53 536.97 386.74 -5.37 -45.64 -118.12 -60.98 155.69 -53.67 Total Loss @ Rs 125/Hr ($ 2.5/hr) 43814.32 34357.94 16460.85 11749.44 5156.60 -673.38 23290.83 -1673.38 -11740.49 -9503.36 20937.36 -7941.83 67120.81 48342.28 -671.14 -5704.70 -14765.10 -7621.92 19460.85 -6709.17 223686.80 7.63 ADJ.STD COST/PC 35.31 Act Hrs @ 60% P O Eff % 42.37 356.64 511.30 268.36 Excess Actual Hrs Over 60% Eff% 85.63 35.36 -383.30 139.64 Total Loss @ Rs 125/Hr ($ 2.5/hr) 10703.39 4420.20 -47912.43 17454.80 -15334.04 16.69 -3833.51 REVENUE EARNED PER M/C 132.41 363.91 1597.78 263.09 2357.19 589.30 11184.34 REVENUE EARNED PER M/C 81.35 185.25 297.10 328.77 368.24 404.00 252.11 410.12 471.13 457.57 313.64 431.74 128.80 200.64 402.66 422.79 459.03 444.16 283.80 481.29 6824.18 341.21 DATES M/Cs UNITS PRODUCED OT M/Cs OT HRS STD HRS ACT HRS EFF % ACHIEVED TARGET LOSS PER MACHINE ACTUAL COST REVENUE EARNED 09/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 15/06/2003 16/06/2003 17/06/2003 18/06/2003 19/06/2003 20/06/2003 21/06/2003 23/06/2003 24/06/2003 25/06/2003 26/06/2003 27/06/2003 28/06/2003 30/06/2003 TOTAL AVG PO KW1496 55 64 64 66 65 67 63 66 66 66 97 100 99 97 100 100 100 69 67 33 100 265 425 485 535 605 355 605 695 675 680 965 285 435 900 945 1026 685 425 355 11446 53.69 142.28 228.19 260.40 287.25 324.83 190.60 324.83 373.15 362.42 365.10 518.12 153.02 233.56 483.22 507.38 550.87 367.79 228.19 190.60 6145.50 440.00 512.00 512.00 528.00 520.00 536.00 504.00 528.00 528.00 528.00 776.00 800.00 792.00 776.00 800.00 800.00 800.00 552.00 536.00 264.00 12032 12.20 27.79 44.57 49.32 55.24 60.60 37.82 61.52 70.67 68.64 47.05 64.77 19.32 30.10 60.40 63.42 68.86 66.63 42.57 72.20 51.08 1.82 4.14 6.64 7.35 8.23 9.03 5.63 9.17 10.53 10.23 7.01 9.65 2.88 4.48 9.00 9.45 10.26 9.93 6.34 10.76 796.62 536.84 257.20 178.02 79.33 -10.05 369.70 -25.35 -177.89 -143.99 215.85 -79.42 677.99 498.37 -6.71 -57.05 -147.65 -110.46 290.46 -203.31 2938.51 146.93 Cost Diff 220.00 96.60 60.24 54.43 48.60 44.30 70.99 43.64 37.99 39.11 57.06 41.45 138.95 89.20 44.44 42.33 38.99 40.29 63.06 37.18 4474.00 11856.10 19014.50 21698.90 23935.90 27067.70 15882.70 27067.70 31094.30 30199.50 30423.20 43174.10 12750.90 19461.90 40266.00 42279.30 45903.24 30646.90 19014.50 15882.70 512094.04 75.20 TARGET 18.88 572.30 STD COST/PC 21.19 65.44 20.70 25604.70 46.26% DATES M/Cs UNITS PRODUCED OT M/Cs OT HRS STD HRS ACT HRS EFF % ACHIEVED TARGET LOSS PER MACHINE ACTUAL COST REVENUE EARNED 26/06/2003 27/06/2003 28/06/2003 30/06/2003 TOTAL AVG 16 49 16 51 60 505 724 380 1669 25.42 213.98 306.78 161.02 707.20 128.00 392.00 128.00 408.00 1056 19.86 54.59 239.67 39.46 66.97 3.75 10.31 45.25 7.45 668.96 90.21 -2994.53 342.25 -1893.11 -473.28 Cost Diff 106.67 38.81 8.84 53.68 2118.60 17831.55 25564.44 13417.80 58932.39 33.00 417.25 52.00 16.69 14733.10 47.27% M/Cs UNITS PRODUCED 37821 OT M/Cs OT HRS STD HRS ACT HRS EFF % ACHIEVED TARGET Act Hrs @ 60% P O Eff % Excess Actual Hrs Over 60% Eff% Total Loss @ Rs 125/Hr ($ 2.5/hr) 340106.00 LOSS PER MACHINE 7564.13 51.31 ACTUAL COST REVENUE EARNED 1316762.18 REVENUE EARNED PER M/C 33123.39 380.75 TOTAL AVG 34.31 15801.69 29057 54.38 14.22 388.74 2481.05 42.35 12775.76 Page 4 of 5 CE1 - Appendix Page - 20 PONO AVG M/CS UNITS PRODUCED GSD AVG ACHIEVED TARGET 18.38 20.55 17.93 17.87 12.23 9.12 7.61 7.63 16.69 STD COST ADJ COST AVG ACTUAL COST 22.25 23.08 26.93 26.48 35.26 46.37 83.35 65.44 52.00 COST DIFF COST DIFF IN % STD HRS ACT HRS EFF % Total Loss @ Rs 125/Hr ($ 2.5/hr) 6786.15 42810.96 10695.29 -6531.21 -72380.38 25453.57 124918.87 223686.80 -15334.04 340106.00 37789.56 LOSS PER MACHINE REVENUE EARNED FOR PO 100483.60 51271.32 10921.17 35816.06 208598.50 227014.60 111630.50 512094.04 58932.39 1316762.18 146306.91 TOTAL REVENUE EARNED PER M/C 4655.58 3724.38 1147.00 2014.09 6218.16 3208.19 2974.63 6824.18 2357.19 33123.39 3680.38 KW1409 KW1411 KW1421 KW1423 KW1427 KW1456 KW1457 KW1494 KW1496 TOTAL AVG 21.50 13.15 9.50 16.60 33.54 65.89 40.40 75.20 33.00 4760 3678 683 1589 5335 5806 2855 11446 1669 37821 31.58 47.82 41.69 29.58 17.05 17.05 17.05 14.90 18.88 12.67 8.36 9.59 13.52 23.46 23.46 23.46 26.85 21.19 21.11 13.94 15.99 22.54 39.10 39.10 39.10 44.74 35.31 270.94 1.14 9.13 10.94 3.94 -3.84 7.26 44.25 20.70 16.69 110.23 5.41 65.52 68.43 17.50 -9.81 18.58 113.17 46.26 47.27 1205.83 615.31 131.06 429.75 2503.23 2724.22 1339.59 6145.50 707.20 15801.69 2064.00 1368.00 304.00 664.00 3593.00 4744.00 3232.00 12032.00 1056.00 29057 58.42 44.98 43.11 64.72 69.67 57.42 41.45 51.08 66.97 54.38 360.83 3688.28 1132.32 -34.71 -2170.68 979.39 2563.29 2938.51 -1893.11 7564.13 840.46 34.31 26.18 14.22 18.06 30.10 42.35 12.25 40.68 Analysis: 1. We have produced 9 different styles in this month 2. We have on an average used 34.31 machines per style per day 3. On an average, the target/machine/shift across the styles has been 26.18 against which we have only achieved 14.22 units/machine/shift resulting in an average efficiency of 54.38% 4. The average budgeted cost across the styles has been Rs. 30.10/- and we have incurred an actual cost of Rs. 42.35/- per garment, Rs. 12.25/- in excess, 40.68% in excess of budgeted cost Page 5 of 5 CE1 - Appendix Page - 21 GRAPHS SHOWING PERFORMANCE OF THE FACTORY PURCHASE ORDER (PO) WISE FOR THE MONTH OF JUNE 2003 PO WISE UNITS PRODUCED IN THE MONTH OF JUNE 03 40000 35000 30000 NO OF UNITS PO WISE PO EFFICIENCY IN THE MONTH OF JUNE 03 37821 80.00 69.67 70.00 60.00 50.00 IN % 64.72 58.42 57.42 66.97 54.38 51.08 44.98 25000 20000 15000 10000 43.11 41.45 40.00 30.00 20.00 11446 4760 5335 683 1589 KW1423 KW1427 KW1456 5806 2855 1669 KW1494 KW1496 TOTAL 5000 0 3678 10.00 0.00 KW1409 KW1411 KW1421 KW1423 KW1427 KW1456 KW1457 KW1494 KW1496 TOTAL 75.64 TOTAL 33.12 KW1409 KW1411 KW1421 POS' KW1457 POS' PO WISE TOTAL LOSS IN THE MONTH OF JUNE 03 (X 1000) 400.00 350.00 300.00 Thousands PO WISE LOSS PER M/C IN THE MONTH OF JUNE 03 (X 100) 100.00 340.11 80.00 250.00 200.00 150.00 100.00 50.00 6.79 0.00 KW1409 -50.00 -100.00 -72.38 POS' Hundreds 223.69 60.00 40.00 36.88 25.63 29.39 IN Rs. 124.92 IN Rs 20.00 11.32 3.61 42.81 10.70 KW1411 KW1421 -6.53 KW1423 KW1427 KW1456 25.45 KW1457 KW1494 KW1496 -15.33 TOTAL -20.00 0.00 KW1409 KW1411 KW1421 KW1423 -0.35 KW1427 KW1456 9.79 KW1457 KW1494 KW1496 -21.71 -18.93 -40.00 POS' 1400.00 PO WISE REVENUE EARNED IN THE MONTH OF JUNE 03 (X 1000) 1316.76 35.00 32.50 POWISE REVENUE EARNED PER M/C IN THE MONTH OF JUNE 03 (X 1000) 1200.00 30.00 27.50 Thousands 1000.00 Thousands 25.00 22.50 20.00 17.50 800.00 IN Rs. 600.00 512.09 IN Rs. 15.00 12.50 10.00 400.00 208.60 200.00 100.48 51.27 0.00 KW1409 KW1411 KW1421 KW1423 KW1427 KW1456 KW1457 KW1494 KW1496 TOTAL 10.92 35.82 227.01 111.63 58.93 7.50 5.00 2.50 0.00 KW1409 KW1411 KW1421 KW1423 6.22 4.66 3.72 1.15 2.01 3.21 2.97 6.82 2.36 KW1427 KW1456 KW1457 KW1494 POS' POS' POWISE COMPARISON OF BUDGETED (ADJUSTED) & ACTUAL COST PER PIECE 90.00 80.00 70.00 60.00 COST IN Rs. 83.35 65.44 52.00 39.10 35.26 26.93 21.11 22.54 26.48 22.25 23.08 15.99 39.10 46.37 39.10 44.74 35.31 50.00 40.00 30.00 20.00 10.00 0.00 KW1409 KW1411 KW1421 KW1423 13.94 KW1427 PO NO KW1456 ACT COST KW1457 KW1494 ADJ COST POWISE DIFFERENCE IN BUDGETED (ADJUSTED) & ACTUAL COST PER PIECE 50.00 44.25 40.00 30.00 DIFF IN Rs. 20.70 20.00 10.94 10.00 1.14 0.00 KW1409 KW1411 KW1421 KW1423 KW1427 KW1456 KW1457 KW1494 KW1496 9.13 3.94 -3.84 7.26 16.69 -10.00 PONO KW1496 KW1496 CE1 - Appendix Page - 22 TOTAL Gokaldas Images Knitwear Division NCC - LINEWISE PERFORMANCE REPORT FOR THE MONTH OF JUNE 2003 Line A DATES PO M/Cs UNITS PRODUCED GSD OT M/CS OT HRS STD COST ADJ COST STD HRS ACT HRS EFF % ACHIEVED TARGET Total Loss Act Hrs @ 60% P O Excess Actual Hrs @ Rs 125/Hr Eff % Over 60% Eff% ($ 2.5/hr) 289.35 297.17 269.79 265.88 215.05 150.15 89.49 201.34 210.29 214.77 286.35 183.45 272.93 335.57 299.78 331.10 340.04 116.33 98.43 304.25 326.62 323.04 317.67 290.83 317.67 -1.35 -25.17 10.21 6.12 48.95 97.85 166.51 54.66 53.71 49.23 -14.35 72.55 -8.93 -71.57 -35.78 -67.10 -76.04 147.67 165.57 -40.25 -62.62 -59.04 -53.67 -26.83 -53.67 -168.13 -3145.65 1275.66 764.42 6118.28 12231.67 20814.32 6832.21 6713.65 6154.36 -1794.18 9069.35 -1116.33 -8946.31 -4472.04 -8387.02 -9505.59 18458.61 20695.75 -5031.32 -7827.74 -7380.31 -6709.17 -3353.47 -6709.17 34581.84 8.83 1383.27 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 401.87 437.01 385.42 391.01 325.84 242.17 139.82 314.60 318.62 325.40 421.11 286.63 413.53 508.44 454.21 501.66 515.22 176.26 149.14 460.99 494.88 489.46 481.32 440.65 481.32 9556.58 382.26 02/06/2003 03/06/2003 04/06/2003 05/06/2003 06/06/2003 07/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 15/06/2003 16/06/2003 17/06/2003 18/06/2003 19/06/2003 20/06/2003 21/06/2003 23/06/2003 24/06/2003 25/06/2003 26/06/2003 27/06/2003 28/06/2003 30/06/2003 TOTAL AVG KW1456 KW1456 KW1456 KW1456 KW1456 KW1456 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 36 34 35 34 33 31 32 32 33 33 34 32 33 33 33 33 33 33 33 33 33 33 33 33 33 370 380 345 340 275 192 100 225 235 240 320 205 305 375 335 370 380 130 110 340 365 361 355 325 355 7333 17.05 17.05 17.05 17.05 17.05 17.05 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 23.46 23.46 23.46 23.46 23.46 23.46 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 39.10 39.10 39.10 39.10 39.10 39.10 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 173.61 178.30 161.88 159.53 129.03 90.09 53.69 120.81 126.17 128.86 171.81 110.07 163.76 201.34 179.87 198.66 204.03 69.80 59.06 182.55 195.97 193.83 190.60 174.50 190.60 3808.41 288.00 272.00 280.00 272.00 264.00 248.00 256.00 256.00 264.00 264.00 272.00 256.00 264.00 264.00 264.00 264.00 264.00 264.00 264.00 264.00 264.00 264.00 264.00 264.00 264.00 6624 60.28 65.55 57.81 58.65 48.88 36.33 20.97 47.19 47.79 48.81 63.17 42.99 62.03 76.27 68.13 75.25 77.28 26.44 22.37 69.15 74.23 73.42 72.20 66.10 72.20 57.49 10.28 11.18 9.86 10.00 8.33 6.19 3.13 7.03 7.12 7.27 9.41 6.41 9.24 11.36 10.15 11.21 11.52 3.94 3.33 10.30 11.06 10.94 10.76 9.85 10.76 -4.67 -92.52 36.45 22.48 185.40 394.57 650.45 213.51 203.44 186.50 -52.77 283.42 -33.83 -271.10 -135.52 -254.15 -288.05 559.35 627.14 -152.46 -237.20 -223.65 -203.31 -101.62 -203.31 1108.55 44.34 COST DIFF 38.92 35.79 40.58 40.00 48.00 64.58 128.00 56.89 56.17 55.00 42.50 62.44 43.28 35.20 39.40 35.68 34.74 101.54 120.00 38.82 36.16 36.57 37.18 40.62 37.18 14467.25 14858.26 13489.74 13294.23 10752.69 7507.33 4474.27 10067.11 10514.54 10738.26 14317.67 9172.26 13646.53 16778.52 14988.81 16554.81 17002.24 5816.55 4921.70 15212.53 16331.10 16152.13 15883.67 14541.39 15883.67 317367.26 33.12 293.32 15.42 26.03 43.39 52.21 8.82 12694.69 20.33% Page 1 of 5 CE1 - Appendix Page - 23 Line B DATES PO M/Cs UNITS PRODUCED GSD OT M/CS OT HRS STD COST ADJ COST STD HRS ACT HRS EFF % ACHIEVED TARGET Total Loss Act Hrs @ 60% P O Excess Actual Hrs @ Rs 125/Hr Eff % Over 60% Eff% ($ 2.5/hr) 273.70 277.61 281.52 265.88 199.41 89.49 147.65 178.97 223.71 263.98 255.03 134.23 268.46 286.35 304.25 277.40 331.10 93.96 93.96 268.46 277.40 272.93 50.83 13.42 172.04 207.23 -9.70 -5.61 -17.52 6.12 48.59 174.51 108.35 77.03 40.29 -7.98 8.97 113.77 -4.46 -22.35 -40.25 -13.40 -67.10 170.04 154.04 -4.46 -13.40 -8.93 -2.83 2.58 75.96 40.77 -1213.10 -701.86 -2190.62 764.42 6073.31 21814.32 13543.62 9628.64 5035.79 -997.76 1120.81 14221.48 -557.05 -2794.18 -5031.32 -1675.62 -8387.02 21255.03 19255.03 -557.05 -1675.62 -1116.33 -353.86 322.15 9494.62 5095.80 100373.64 8.19 3860.52 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 414.70 408.26 426.55 391.01 321.63 135.58 230.70 279.64 338.96 412.47 386.41 216.50 406.75 433.87 460.99 420.31 501.66 142.36 151.55 406.75 420.31 413.53 423.59 335.57 277.49 334.25 9091.41 349.67 02/06/2003 03/06/2003 04/06/2003 05/06/2003 06/06/2003 09/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 15/06/2003 16/06/2003 17/06/2003 18/06/2003 19/06/2003 20/06/2003 21/06/2003 23/06/2003 24/06/2003 25/06/2003 26/06/2003 27/06/2003 27/06/2003 28/06/2003 30/06/2003 TOTAL AVG KW1456 KW1456 KW1456 KW1456 KW1456 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1457 KW1494 KW1457 KW1457 33 34 33 34 31 33 32 32 33 32 33 31 33 33 33 33 33 33 31 33 33 33 6 2 31 31 350 355 360 340 255 100 165 200 250 295 285 150 300 320 340 310 370 105 105 300 310 305 65 15 220 265 6435 17.05 17.05 17.05 17.05 17.05 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 17.05 14.9 17.05 17.05 23.46 23.46 23.46 23.46 23.46 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 23.46 26.85 23.46 23.46 39.10 39.10 39.10 39.10 39.10 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 39.10 44.74 39.10 39.10 164.22 166.57 168.91 159.53 119.65 53.69 88.59 107.38 134.23 158.39 153.02 80.54 161.07 171.81 182.55 166.44 198.66 56.38 56.38 161.07 166.44 163.76 30.50 8.05 103.23 124.34 3305.41 264.00 272.00 264.00 272.00 248.00 264.00 256.00 256.00 264.00 256.00 264.00 248.00 264.00 264.00 264.00 264.00 264.00 264.00 248.00 264.00 264.00 264.00 48.00 16.00 248.00 248.00 6312 62.21 61.24 63.98 58.65 48.25 20.34 34.61 41.95 50.84 61.87 57.96 32.47 61.01 65.08 69.15 63.05 75.25 21.35 22.73 61.01 63.05 62.03 63.54 50.34 41.62 50.14 52.37 10.61 10.44 10.91 10.00 8.23 3.03 5.16 6.25 7.58 9.22 8.64 4.84 9.09 9.70 10.30 9.39 11.21 3.18 3.39 9.09 9.39 9.24 10.83 7.50 7.10 8.55 -36.76 -20.64 -66.38 22.48 195.91 661.04 423.24 300.89 152.60 -31.18 33.96 458.76 -16.88 -84.67 -152.46 -50.78 -254.15 644.09 621.13 -16.88 -50.78 -33.83 -58.98 161.07 306.28 164.38 3271.47 125.83 COST DIFF 37.71 38.31 36.67 40.00 48.63 132.00 77.58 64.00 52.80 43.39 46.32 82.67 44.00 41.25 38.82 42.58 35.68 125.71 118.10 44.00 42.58 43.28 36.92 53.33 56.36 46.79 13685.24 13880.74 14076.25 13294.23 9970.67 4474.27 7382.55 8948.55 11185.68 13199.11 12751.68 6711.41 13422.82 14317.67 15212.53 13870.25 16554.81 4697.99 4697.99 13422.82 13870.25 13646.53 2541.54 671.14 8602.15 10361.68 275450.54 30.35 247.50 15.56 25.80 43.01 56.52 13.51 10594.25 31.42% Page 2 of 5 CE1 - Appendix Page - 24 Line C DATES PO M/Cs UNITS PRODUCED GSD OT M/CS OT HRS STD COST ADJ COST STD HRS ACT HRS EFF % ACHIEVED TARGET Total Loss Act Hrs @ 60% P O Excess Actual Hrs @ Rs 125/Hr Eff % Over 60% Eff% ($ 2.5/hr) 269.79 273.70 116.52 108.51 90.51 35.50 27.05 138.91 215.01 26.55 283.98 64.01 201.82 126.21 164.66 287.10 280.77 192.10 120.33 129.03 218.96 105.57 136.85 242.42 226.78 234.60 282.56 322.30 309.05 285.43 293.26 273.70 -5.79 -9.70 -20.52 19.49 13.49 36.50 36.95 -26.91 -39.01 45.45 -19.98 -0.01 -1.82 -30.21 -4.66 -39.10 -16.77 71.90 15.67 102.97 37.04 14.43 -8.85 13.58 29.22 21.40 -26.56 -66.30 -53.05 -29.43 -29.26 -9.70 -724.34 -1213.10 -2565.00 2436.56 1686.34 4562.49 4619.34 -3363.31 -4876.27 5681.86 -2496.96 -0.90 -226.94 -3776.43 -582.65 -4887.69 -2096.05 8986.91 1958.83 12870.97 4629.52 1803.52 -1106.55 1696.97 3652.00 2674.49 -3320.09 -8286.98 -6631.35 -3679.37 -3656.89 -1213.10 2555.83 13.91 79.87 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 408.78 414.70 485.50 339.09 348.11 197.22 169.03 496.09 488.66 147.47 430.27 400.05 403.63 525.88 411.65 463.07 425.41 291.07 353.91 222.47 342.13 351.91 427.66 378.79 354.35 366.57 441.50 503.59 482.89 445.99 444.33 414.70 12376.47 386.76 02/06/2003 03/06/2003 04/06/2003 05/06/2003 05/06/2003 06/06/2003 06/06/2003 06/06/2003 07/06/2003 07/06/2003 09/06/2003 10/06/2003 10/06/2003 11/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 16/06/2003 17/06/2003 18/06/2003 19/06/2003 19/06/2003 20/06/2003 21/06/2003 23/06/2003 24/06/2003 25/06/2003 26/06/2003 27/06/2003 28/06/2003 30/06/2003 TOTAL AVG KW1456 KW1456 KW1456 KW1409 KW1421 KW1421 KW1423 KW1409 KW1423 KW1421 KW1423 KW1423 KW1409 KW1423 KW1409 KW1409 KW1409 KW1409 KW1409 KW1456 KW1456 KW1457 KW1456 KW1457 KW1457 KW1457 KW1457 KW1457 KW1457 KW1457 KW1457 KW1457 33 33 12 16 13 9 8 14 22 9 33 8 25 12 20 31 33 33 17 29 32 15 16 32 32 32 32 32 32 32 33 33 345 350 149 257 283 111 60 329 477 83 630 142 478 280 390 680 665 455 285 165 280 135 175 310 290 300 320 365 350 365 375 350 10229 17.05 17.05 17.05 31.58 41.69 41.69 29.58 31.58 29.58 41.69 29.58 29.58 31.58 29.58 31.58 31.58 31.58 31.58 31.58 17.05 17.05 17.05 17.05 17.05 17.05 17.05 15.1 15.1 15.1 17.05 17.05 17.05 23.46 23.46 23.46 12.67 9.59 9.59 13.52 12.67 13.52 9.59 13.52 13.52 12.67 13.52 12.67 12.67 12.67 12.67 12.67 23.46 23.46 23.46 23.46 23.46 23.46 23.46 26.49 26.49 26.49 23.46 23.46 23.46 39.10 39.10 39.10 21.11 15.99 15.99 22.54 21.11 22.54 15.99 22.54 22.54 21.11 22.54 21.11 21.11 21.11 21.11 21.11 39.10 39.10 39.10 39.10 39.10 39.10 39.10 44.15 44.15 44.15 39.10 39.10 39.10 161.88 164.22 69.91 65.10 54.31 21.30 16.23 83.34 129.01 15.93 170.39 38.40 121.09 75.73 98.80 172.26 168.46 115.26 72.20 77.42 131.38 63.34 82.11 145.45 136.07 140.76 169.54 193.38 185.43 171.26 175.95 164.22 3650.13 264.00 264.00 96.00 128.00 104.00 72.00 64.00 112.00 176.00 72.00 264.00 64.00 200.00 96.00 160.00 248.00 264.00 264.00 136.00 232.00 256.00 120.00 128.00 256.00 256.00 256.00 256.00 256.00 256.00 256.00 264.00 264.00 6104 61.32 62.21 72.83 50.86 52.22 29.58 25.35 74.41 73.30 22.12 64.54 60.01 60.54 78.88 61.75 69.46 63.81 43.66 53.09 33.37 51.32 52.79 64.15 56.82 53.15 54.99 66.23 75.54 72.43 66.90 66.65 62.21 59.80 10.45 10.61 12.42 16.06 21.77 12.33 7.50 23.50 21.68 9.22 19.09 17.75 19.12 23.33 19.50 21.94 20.15 13.79 16.76 5.69 8.75 9.00 10.94 9.69 9.06 9.38 10.00 11.41 10.94 11.41 11.36 10.61 -21.95 -36.76 -213.75 152.29 129.72 506.94 577.42 -240.24 -221.65 631.32 -75.67 -0.11 -9.08 -314.70 -29.13 -157.67 -63.52 272.33 115.23 443.83 144.67 120.23 -69.16 53.03 114.13 83.58 -103.75 -258.97 -207.23 -114.98 -110.81 -36.76 1058.82 33.09 COST DIFF 38.26 37.71 32.21 24.90 18.37 32.43 53.33 17.02 18.45 43.37 20.95 22.54 20.92 17.14 20.51 18.24 19.85 29.01 23.86 70.30 45.71 44.44 36.57 41.29 44.14 42.67 40.00 35.07 36.57 35.07 35.20 37.71 13489.74 13685.24 5826.00 5425.37 4525.47 1775.01 1352.27 6945.32 10750.51 1327.26 14198.78 3200.36 10090.77 6310.57 8233.06 14355.08 14038.42 9605.24 6016.47 6451.61 10948.19 5278.59 6842.62 12121.21 11339.20 11730.21 14128.04 16114.79 15452.54 14271.75 14662.76 13685.24 304177.67 23.84 319.66 24.77 18.19 30.32 32.93 2.61 9505.55 8.61% Page 3 of 5 CE1 - Appendix Page - 25 Line D DATES PO M/Cs UNITS PRODUCED GSD OT M/CS OT HRS STD COST ADJ COST STD HRS ACT HRS EFF % ACHIEVED TARGET Total Loss Act Hrs @ 60% P O Excess Actual Hrs @ Rs 125/Hr Eff % Over 60% Eff% ($ 2.5/hr) 112.92 97.59 24.95 64.69 29.83 40.94 103.16 94.80 105.95 83.65 58.55 55.76 93.41 92.01 26.49 107.66 128.77 137.22 116.11 25.75 6.69 42.37 58.65 67.09 52.97 100.88 112.99 -0.92 14.41 -0.95 23.31 50.17 -8.94 16.84 25.20 14.05 36.35 5.45 0.24 26.59 27.99 85.51 12.34 -0.77 -1.22 19.89 6.25 9.31 85.63 29.35 44.91 75.03 -20.88 15.01 -115.43 1801.48 -118.25 2914.12 6270.74 -1117.13 2104.42 3150.01 1755.89 4544.12 680.89 29.42 3324.27 3498.54 10688.97 1542.12 -96.69 -152.21 2486.59 780.66 1163.53 10703.39 3668.62 5613.70 9379.24 -2609.97 1875.71 73766.74 18.00 2732.10 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 403.30 348.53 415.77 294.03 149.17 511.71 343.88 316.00 353.18 278.82 365.96 398.32 311.35 306.71 94.60 358.88 402.42 403.58 341.49 321.93 167.29 132.42 266.60 239.61 165.52 504.40 353.11 8548.57 316.61 02/06/2003 03/06/2003 04/06/2003 04/06/2003 05/06/2003 05/06/2003 06/06/2003 07/06/2003 09/06/2003 10/06/2003 11/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 16/06/2003 17/06/2003 18/06/2003 19/06/2003 20/06/2003 20/06/2003 26/06/2003 27/06/2003 27/06/2003 28/06/2003 28/06/2003 30/06/2003 TOTAL AVG KW1411 KW1411 KW1421 KW1411 KW1411 KW1421 KW1411 KW1411 KW1411 KW1411 KW1411 KW1410 KW1411 KW1411 KW1411 KW1409 KW1409 KW1409 KW1409 KW1409 KW1411 KW1496 KW1457 KW1496 KW1496 KW1457 KW1496 14 14 3 11 10 4 15 15 15 15 8 7 15 15 14 15 16 17 17 4 2 16 11 14 16 10 16 405 350 78 232 107 128 370 340 380 300 210 200 335 330 95 255 305 325 275 61 24 60 75 95 75 129 160 5699 47.82 47.82 41.69 47.82 47.82 41.69 47.82 47.82 47.82 47.82 47.82 47.82 47.82 47.82 47.82 31.58 31.58 31.58 31.58 31.58 47.82 18.88 17.05 18.88 18.88 17.05 18.88 8.36 8.36 9.59 8.36 8.36 9.59 8.36 8.36 8.36 8.36 8.36 8.36 8.36 8.36 8.36 12.67 12.67 12.67 12.67 12.67 8.36 21.19 23.46 21.19 21.19 23.46 21.19 13.94 13.94 15.99 13.94 13.94 15.99 13.94 13.94 13.94 13.94 13.94 13.94 13.94 13.94 13.94 21.11 21.11 21.11 21.11 21.11 13.94 35.31 39.10 35.31 35.31 39.10 35.31 67.75 58.55 14.97 38.81 17.90 24.56 61.90 56.88 63.57 50.19 35.13 33.46 56.04 55.21 15.89 64.60 77.26 82.33 69.66 15.45 4.02 25.42 35.19 40.25 31.78 60.53 67.80 1225.12 112.00 112.00 24.00 88.00 80.00 32.00 120.00 120.00 120.00 120.00 64.00 56.00 120.00 120.00 112.00 120.00 128.00 136.00 136.00 32.00 16.00 128.00 88.00 112.00 128.00 80.00 128.00 2632 60.49 52.28 62.37 44.10 22.38 76.76 51.58 47.40 52.98 41.82 54.89 59.75 46.70 46.01 14.19 53.83 60.36 60.54 51.22 48.29 25.09 19.86 39.99 35.94 24.83 75.66 52.97 46.55 28.93 25.00 26.00 21.09 10.70 32.00 24.67 22.67 25.33 20.00 26.25 28.57 22.33 22.00 6.79 17.00 19.06 19.12 16.18 15.25 12.00 3.75 6.82 6.79 4.69 12.90 10.00 -8.25 128.68 -39.42 264.92 627.07 -279.28 140.29 210.00 117.06 302.94 85.11 4.20 221.62 233.24 763.50 102.81 -6.04 -8.95 146.27 195.17 581.76 668.96 333.51 400.98 586.20 -261.00 117.23 5628.59 208.47 COST DIFF 13.83 16.00 15.38 18.97 37.38 12.50 16.22 17.65 15.79 20.00 15.24 14.00 17.91 18.18 58.95 23.53 20.98 20.92 24.73 26.23 33.33 106.67 58.67 58.95 85.33 31.01 40.00 5646.17 4879.41 1247.30 3234.35 1491.71 2046.85 5158.23 4740.00 5297.64 4182.35 2927.65 2788.23 4670.29 4600.59 1324.41 5383.15 6438.67 6860.88 5805.36 1287.73 334.59 2118.64 2932.55 3354.52 2648.31 5043.99 5649.72 102093.31 12.19 211.07 37.79 12.27 20.45 31.05 10.60 3781.23 51.83% Page 4 of 5 CE1 - Appendix Page - 26 Line E DATES PO M/Cs UNITS PRODUCED GSD OT M/CS OT HRS STD COST ADJ COST STD HRS ACT HRS EFF % ACHIEVED TARGET Total Loss Act Hrs @ 60% P O Excess Actual Hrs @ Rs 125/Hr Eff % Over 60% Eff% ($ 2.5/hr) 285.43 246.33 78.20 324.54 254.15 277.61 312.81 297.17 277.61 351.91 371.46 351.91 136.85 391.01 434.02 391.01 192.39 44.74 196.87 232.66 241.61 322.15 281.88 89.49 155.37 -37.43 1.67 -14.20 -76.54 -6.15 -13.61 -32.81 -25.17 -13.61 -71.91 -56.46 -63.91 127.15 -76.01 -119.02 -151.01 79.61 219.26 67.13 39.34 30.39 -50.15 -9.88 182.51 124.63 -4679.37 208.21 -1775.17 -9566.96 -769.31 -1701.86 -4100.68 -3145.65 -1701.86 -8988.27 -7057.06 -7988.27 15893.45 -9500.86 -14877.20 -18875.86 9950.78 27407.16 8391.50 4917.23 3798.66 -6268.46 -1234.90 22814.32 15579.10 6728.67 10.11 269.15 LOSS PER MACHINE ACTUAL COST REVENUE EARNED REVENUE EARNED PER M/C 460.38 397.31 488.76 523.44 409.93 420.63 446.86 437.01 420.63 502.72 530.65 488.76 207.35 558.58 620.03 651.68 282.93 67.79 298.28 342.15 355.31 473.75 414.53 131.60 221.95 10153.02 406.12 02/06/2003 03/06/2003 04/06/2003 05/06/2003 06/06/2003 07/06/2003 09/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 15/06/2003 16/06/2003 17/06/2003 18/06/2003 20/06/2003 21/06/2003 23/06/2003 24/06/2003 25/06/2003 26/06/2003 27/06/2003 28/06/2003 30/06/2003 TOTAL AVG KW1456 KW1456 KW1456 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1427 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1494 KW1496 31 31 8 31 31 33 35 34 33 35 35 36 33 35 35 30 34 33 33 34 34 34 34 34 35 365 315 100 415 325 355 400 380 355 450 475 450 175 500 555 500 215 50 220 260 270 360 315 100 220 8125 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 17.05 14.9 14.9 14.9 14.9 14.9 14.9 14.9 14.9 18.88 105 16.44 35 35 1 1 35 1 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 23.46 26.85 26.85 26.85 26.85 26.85 26.85 26.85 26.85 21.19 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 39.10 44.74 44.74 44.74 44.74 44.74 44.74 44.74 44.74 35.31 171.26 147.80 46.92 194.72 152.49 166.57 187.68 178.30 166.57 211.14 222.87 211.14 82.11 234.60 260.41 234.60 115.44 26.85 118.12 139.60 144.97 193.29 169.13 53.69 93.22 3923.50 248.00 248.00 64.00 248.00 248.00 264.00 280.00 272.00 264.00 280.00 315.00 288.00 264.00 315.00 315.00 240.00 272.00 264.00 264.00 272.00 272.00 272.00 272.00 272.00 280.00 6593 69.06 59.60 73.31 78.52 61.49 63.09 67.03 65.55 63.09 75.41 70.75 73.31 31.10 74.48 82.67 97.75 42.44 10.17 44.74 51.32 53.30 71.06 62.18 19.74 33.29 59.51 11.77 10.16 12.50 13.39 10.48 10.76 11.43 11.18 10.76 12.86 13.57 12.50 5.30 14.29 15.86 16.67 6.32 1.52 6.67 7.65 7.94 10.59 9.26 2.94 6.29 -150.95 6.72 -221.90 -308.61 -24.82 -51.57 -117.16 -92.52 -51.57 -256.81 -201.63 -221.90 481.62 -271.45 -425.06 -629.20 292.67 830.52 254.29 144.62 111.73 -184.37 -36.32 671.01 445.12 -7.54 -0.30 COST DIFF 33.97 39.37 32.00 29.88 38.15 37.18 35.00 35.79 37.18 31.11 29.47 32.00 75.43 28.00 25.23 24.00 63.26 264.00 60.00 52.31 50.37 37.78 43.17 136.00 63.64 14271.75 12316.72 3910.07 16226.78 12707.72 13880.74 15640.27 14858.26 13880.74 17595.31 18572.83 17595.31 6842.62 19550.34 21700.88 19550.34 9619.69 2237.14 9843.40 11633.11 12080.54 16107.38 14093.96 4474.27 7768.36 326958.53 32.44 325.00 24.45 40.75 53.37 12.62 13078.34 30.96% Line AVG M/Cs AVG UNITS PRODUCED AVG M/C USAGE/100 UNITS 11.29 12.26 7.46 5.77 9.98 46.77 9.35 UNITS PRODUCED AVG TARGET AVG ACHIEVED TARGET 8.83 8.19 13.91 18.00 10.11 STD HRS ACT HRS EFF % Total Loss @ Rs 125/Hr ($ 2.5/hr) 34581.84 100373.64 2555.83 73766.74 6728.67 218006.72 43601.34 LOSS PER MACHINE REVENUE EARNED REVENUE EARNED PER M/C AVG ADJ COST AVG ACT COST COST DIFF COST DIFF IN % A B C D E TOTAL AVG 33.12 30.35 23.84 12.19 32.44 131.94 26.39 293.32 247.50 319.66 211.07 325.00 1396.55 279.31 7333 6435 10229 5699 8125 37821.00 15.42 15.56 24.77 37.79 16.44 3808.41 3305.41 3650.13 1225.12 3923.50 15912.57 6624 6312 6104 2632 6593 28265.00 57.49 52.37 59.80 46.55 59.51 56.30 1108.55 3271.47 1058.82 5628.59 -7.54 11059.89 2211.98 317367.26 275450.54 304177.67 102093.31 326958.53 1326047.31 265209.46 9556.58 9091.41 12376.47 8548.57 10153.02 49726.04 9945.21 43.39 43.01 30.32 20.45 40.75 52.21 56.52 32.93 31.05 53.37 8.82 13.51 2.61 10.60 12.62 48.16 20.33 31.42 8.61 51.83 30.96 21.99 11.81 35.58 45.22 9.63 28.63 Analysis: 1. On an average for the styles given this month, we have used 26.39 m/cs/production line 2. Total number of running machines available is 179 and we have on an average used 132 machines 3. We have on an average produced 1396.55 units/day 4. We have produced 37821 units in this month at an average efficiecny of 56.30% 5. On an average, our target has been 21.99 units/machine/shift against which we have achieved 11.81 units/machine/shift 6. On and average, our budgeted cost has been Rs. 35.38/- against which we have incurred an actual cost of Rs. 45.22/- per garment, Rs. 9.63/- in excess, 28.63% in excess of budgeted cost Page 5 of 5 CE1 - Appendix Page - 27 GRAPHS SHOWING PERFORMANCE OF THE FACTORY PRODUCTION LINE WISE FOR THE MONTH OF JUNE 2003 LINE WISE UNITS PROD IN THE MONTH OF JUNE 03 LINE WISE PO EFF IN THE MONTH OF JUNE 03 40000 35000 30000 NO OF UNITS 37821 70.00 60.00 50.00 40.00 57.49 52.37 46.55 59.80 59.51 56.30 25000 20000 15000 10229 10000 5000 0 A B C LINES IN % 30.00 20.00 10.00 0.00 D E TOTAL A B C LINES D E TOTAL 7333 6435 8125 5699 LINE WISE TOTAL LOSS IN THE MONTH OF JUNE 03 (X 1000) 250.00 LINE WISE LOSS PER M/C IN THE MONTH OF JUNE 03 12000.00 218.01 200.00 Thousands 11059.89 10000.00 8000.00 150.00 6000.00 100.37 100.00 73.77 IN Rs 5628.59 IN Rs. 4000.00 3271.47 50.00 2000.00 34.58 6.73 2.56 1108.55 1058.82 -7.54 0.00 A B C D E TOTAL TOTAL 0.00 A B C LINES D E -2000.00 LINES 1400.00 LINE WISE REVENUE EARNED IN THE MONTH OF JUNE 03 (X 1000 ) 1326.05 LINE WISE REVENUE EARNED PER M/C IN THE MONTH OF JUNE 03 60000.00 1200.00 49726.04 50000.00 Thousands 1000.00 40000.00 800.00 IN Rs. 317.37 275.45 304.18 326.96 IN Rs. 600.00 30000.00 400.00 20000.00 12376.47 10000.00 9556.58 9091.41 8548.57 10153.02 200.00 102.09 0.00 A B C LINES D E TOTAL 0.00 A B C LINES D E TOTAL LINE WISE TARGET ACHIEVED 40.00 37.79 14.00 LINE WISE AVG M/C USAGE/100 UNITS 35.00 12.26 12.00 11.29 9.98 10.00 24.77 NO OF M/CS 30.00 25.00 IN UNITS 8.00 7.46 20.00 15.42 15.00 8.83 15.56 13.91 18.00 16.44 6.00 5.77 10.11 8.19 4.00 10.00 5.00 2.00 0.00 A B C LINES D E 0.00 A B C LINES D E AVG TARGET AVG ACHVD TARGET CE1 - Appendix Page - 28 Gokaldas Images Knitwear Division NCC - DOWN TIME REPORT FOR THE MONTH OF JUNE 2003 DOWN TIME/ WAITING TIME IN SEWING SECTION SEWING SECTION DATE PO NO BUYER LINE 02/06/03 02/06/03 02/06/03 03/06/03 04/06/03 04/06/03 04/06/03 04/06/03 05/06/03 06/06/03 06/06/03 06/06/03 06/06/03 07/06/03 07/06/03 07/06/03 07/06/03 07/06/03 07/06/03 07/06/03 07/06/03 09/06/03 17/06/03 20/06/03 20/06/03 20/06/03 20/06/03 21/06/03 21/06/03 23/06/03 23/06/03 23/06/03 23/06/03 23/06/03 24/06/03 24/06/03 24/06/03 25/06/03 26/06/03 26/06/03 27/06/03 27/06/03 28/06/03 30/06/03 KW/1496 KW/1494 KW/1457 KW/1457 KW/1494 KW/1494 KW/1494 H&M H&M H&M H&M H&M H&M H&M KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1456 KW/1456 KW/1456 KW/1456 KW/1456 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 KW/1494 H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M H&M A E E E A B E E A A A B B B B B A A A A A A A A E A A A E B B A A E E E D D A B B A A A REASON NO ORDERS LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING NO ORDERS LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING NO ORDERS NO ORDERS NO ORDERS LINE SETTING LINE SETTING LINE SETTING LINE SETTING LINE SETTING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LINE SETTING MACHINE PROBLEM LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING MACHINE PROBLEM LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING NO ORDERS LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LACK OF PLANNING LINE SETTING LINE SETTING LACK OF PLANNING LACK OF PLANNING MACHINE PROBLEM M/CS IDLE 5 2 5 8 2 11 5 3 4 5 15 10 5 5 2 10 8 11 20 28 34 33 1 1 2 3 1 20 2 5 9 33 10 15 7 8 16 15 8 10 5 1 3 4 IDLE TIME (IN MINS) 60 30 40 60 90 60 30 60 30 60 60 60 120 120 60 60 60 60 60 60 60 480 60 60 150 30 60 240 60 90 120 420 60 300 45 50 180 210 60 60 120 90 60 30 TOTAL IDLE TIME (IN MINS) 300 60 200 480 180 660 150 180 120 300 900 600 600 600 120 600 480 660 1200 1680 2040 15840 60 60 300 90 60 4800 120 450 1080 13860 600 4500 315 400 2880 3150 480 600 600 90 180 120 62745 1045.75 TOTAL DOWN TIME(IN MINS) TOTAL DOWN TIME(IN HRS) CE1 - Appendix Page - 29 Gokaldas Images Knitwear Division NCC - DOWN TIME REPORT FOR THE MONTH OF JUNE 2003 DOWN TIME BREAK UP REPORT A LINE Setting Lack of Planning No Orders Machine Breakdown TOTAL 15840 25620 2400 240 44100 B 3720 2190 0 0 5910 C 0 0 0 0 0 D 0 6030 0 0 6030 E 0 6705 0 0 6705 TOTAL 19560 40545 2400 240 62745 % OF DT 31.17 64.62 3.83 0.38 % Contribution of Reasons for Downtime in Factory No Orders, 3.83 Machine Breakdown, 0.38 LINE Setting, 31.17 Lack of Planning, 64.62 LINE Setting Lack of Planning No Orders Machine Breakdown CE1 - Appendix Page - 30 Gokaldas Images Knitwear Division NCC - Quality report for the month of: JUNE SECTION: STITCHING LINE - A NO OF MAJOR DEFECTS 8 12 9 8 8 6 *** *** *** *** 6 7 7 8 9 16 10 4 4 7 6 11 8 8 5 167.00 LINE - B NO OF MAJOR DEFECTS 10 11 10 12 10 *** 12 11 18 16 18 20 18 15 20 21 12 5 5 8 8 5 6 12 16 299 LINE - C NO OF MAJOR DEFECTS 10 10 6 7 13 8 11 14 16 16 13 12 8 12 11 29 8 10 11 14 12 16 15 17 14 313 LINE - D NO OF MAJOR DEFECTS 12 8 14 23 16 13 12 15 14 13 19 5 5 18 15 12 *** *** *** *** *** 7 7 4 6 238 LINE - E NO OF MAJOR DEFECTS 13 14 12 14 15 17 18 19 16 16 17 18 19 17 14 *** 19 9 10 13 16 19 19 7 20 371 OVERALL NO OF MAJOR DEFECTS 53 55 51 64 62 44 53 59 64 61 73 62 57 70 69 78 49 28 30 42 42 58 55 48 61 1388 DATE DAY UNITS CHECKED 370 380 345 340 275 180 *** *** *** *** 240 320 305 375 335 370 380 130 110 340 365 361 355 325 355 6556.00 DHU 2.16 3.16 2.61 2.35 2.91 3.33 *** *** *** *** 2.50 2.19 2.30 2.13 2.69 4.32 2.63 3.08 3.64 2.06 1.64 3.05 2.25 2.46 1.41 2.55 UNITS CHECKED 340 345 360 330 255 *** 100 165 200 250 295 285 300 320 340 310 375 105 105 300 310 305 80 220 265 6260 DHU 2.94 3.19 2.78 3.64 3.92 *** 12.00 6.67 9.00 6.40 6.10 7.02 6.00 4.69 5.88 6.77 3.20 4.76 4.76 2.67 2.58 1.64 7.50 5.45 6.04 4.78 UNITS CHECKED 320 320 135 540 500 586 555 620 670 680 665 455 265 165 280 585 310 290 295 320 365 350 365 375 350 10361 DHU 3.13 3.13 4.44 1.30 2.60 1.37 1.98 2.26 2.39 2.35 1.95 2.64 3.02 7.27 3.93 4.96 2.58 3.45 3.73 4.38 3.29 4.57 4.11 4.53 4.00 3.02 UNITS CHECKED 405 350 310 235 370 340 380 300 410 335 330 95 255 305 325 45 *** *** *** *** *** 60 95 75 160 5180 DHU 2.96 2.29 4.52 9.79 4.32 3.82 3.16 5.00 3.41 3.88 5.76 5.26 1.96 5.90 4.62 26.67 *** *** *** *** *** 11.67 7.37 5.33 3.75 4.59 UNITS CHECKED 365 295 165 350 325 355 400 380 355 450 425 450 435 490 500 *** 170 60 220 260 270 360 315 100 220 7715 DHU 3.56 4.75 7.27 4.00 4.62 4.79 4.50 5.00 4.51 3.56 4.00 4.00 4.37 3.47 2.80 *** 11.18 15.00 4.55 5.00 5.93 5.28 6.03 7.00 9.09 4.81 UNITS CHECKED 1800 1690 1315 1795 1725 1461 1435 1465 1635 1715 1955 1605 1560 1655 1780 1310 1235 585 730 1220 1310 1436 1210 1095 1350 36072 DHU 2.94 3.25 3.88 3.57 3.59 3.01 3.69 4.03 3.91 3.56 3.73 3.86 3.65 4.23 3.88 5.95 3.97 4.79 4.11 3.44 3.21 4.04 4.55 4.38 4.52 3.85 02/06/2003 03/06/2003 04/06/2003 05/06/2003 06/06/2003 07/06/2003 09/06/2003 10/06/2003 11/06/2003 12/06/2003 13/06/2003 14/06/2003 16/06/2003 17/06/2003 18/06/2003 19/06/2003 20/06/2003 21/06/2003 23/06/2003 24/06/2003 25/06/2003 26/06/2003 27/06/2003 28/06/2003 30/06/2003 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY MONDAY SUMMARY CE1 - Appendix Page - 31 LINE WISE DHU REPORT FOR JUNE 2003 6.00 5.00 4.78 4.81 4.59 4.00 % DHU 3.85 3.02 3.00 2.55 2.00 1.00 0.00 A B C LINES D E TOTAL CE1 - Appendix Page - 32 % DHU 0.00 2.94 1.00 2.00 3.00 4.00 5.00 6.00 7.00 02/06/2003 3.25 03/06/2003 3.88 04/06/2003 05/06/2003 06/06/2003 3.01 3.57 3.59 07/06/2003 08/06/2003 3.69 09/06/2003 10/06/2003 11/06/2003 3.56 4.03 3.91 12/06/2003 13/06/2003 14/06/2003 15/06/2003 3.73 3.86 3.65 16/06/2003 17/06/2003 4.23 3.88 18/06/2003 19/06/2003 5.95 LINE WISE DHU TREND REPORT FOR JUNE 2003 3.97 20/06/2003 21/06/2003 22/06/2003 4.79 4.11 23/06/2003 3.44 24/06/2003 3.21 25/06/2003 26/06/2003 27/06/2003 28/06/2003 29/06/2003 4.04 4.55 4.38 4.52 CE1 - Appendix Page - 33 30/06/2003 GOKALDAS IMAGES LTD FACTORY :NEW CATALOGUE CLOTHING CO No. of units checked defective units proportion % Defective units NATURE OF DEFECTS FABRIC DEFECTS RIPS/HOLES/CUTS MISMATCH OF PARTS OR BOWING WEAVING DEFECTS SHADE DEFECTS DYING DEFECTS STAINS /CHALK MARKS SEWING DEFECTS OPEN SEAMS BROKEN STITCH LOOSE STITCH PUCKERING SKIP /INCOMPLETE STITCH RAW EDGES WAVY SEAMS PIPING JOINT UP & DOWN BUTTONS MISSING & INSECURE HOOD NOT AT CENTER FINISHING FILT BARTACK MISSING / MISSING STITCH ZIP UP & DOWN IMPROPER ASSEMBLY MISSING LABAES /PARTS IMPROPER EMBRROIDERY POINTED POINTED UNEVEN POCKET PLACEMENT WRONG KURK DOWN STITCH ZIP ATCH UNEVEN FINISHING UNEVEN TOTAL FORMULAE n np p % SQC ATTRIBUTE CONTROL CHART LINE : A Hour 2 20 1 0.05 5.00 Hour 2 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** *** *** *** *** *** *** *** *** *** *** 1 Hour 3 45 1 0.02 2.22 Hour 3 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** *** *** *** *** *** *** *** *** 1 Hour 4 50 1 0.02 2.00 Hour 4 *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 Hour 5 50 1 0.03 3.33 Hour 5 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** 1 DATE 28/06/2003 Chart Type : p Hour 6 30 1 0.02 2.00 Hour 6 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** *** *** *** *** *** *** *** *** *** *** 1 Hour 7 50 1 0.02 2.22 Hour 7 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** 1 Hour 8 45 1 0.00 0.00 Hour 8 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** *** 1 Hour 9 0 0 0.00 0.00 Hour 9 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 0 Hour 10 0 0 0.00 0 Hour 10 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 0 TOTAL 325 8 0.20 19.63 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 2 0 1 0 0 0 0 0 0 2 2 0 0 8 AVG 46.43 1.14 0.02 2.80 SL NO. 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour 1 35 1 0.03 2.86 Hour 1 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 *** *** *** 1 U C L = P AVG. + 3 SQRT {P AVG. (1 - PAVG.) / N AVG.} UCL PROP MEAN LCL 0.09 0.029 0.025 -0.044 0.09 0.050 0.025 -0.044 0.09 0.022 0.025 -0.044 0.09 0.020 0.025 -0.044 0.09 0.033 0.025 -0.044 LCL=PAVG-3 SQRT{PAVG(1-P AVG)/N AVG} 0.09 0.020 0.025 -0.044 0.09 0.022 0.025 -0.044 0.09 0.000 0.025 -0.044 0.09 0.000 0.025 -0.044 0.09 0.000 0.025 -0.044 DATA FOR GRAPH NOTE:- When the value of L C L , i.e., the Lower Control Limit is anything less than zero it can be considered as Zero, because of the practical reasons. 0.10 0.08 0.06 DEFECTIVE PROPORTION SPC FOR END BATCH QUALITY SQC FOR END LINE QUALITY 0.050 0.05 0.04 0.029 0.03 0.02 0.00 -0.02 -0.04 HOURS 0.033 0.03 0.022 0.02 0.020 0.02 0.020 0.02 0.022 0.02 0.000 0.00 0.000 0.00 9 0.000 0.00 10 1 2 3 4 5 6 7 8 -0.06 UCL UCL UCL PROP PROP PROP MEAN MEAN MEAN LLC LL LCL C CE1 - Appendix Page - 34 100 120 140 160 180 20 40 60 80 0 1 Arm Hole Up & Down 1 2 5 2 1 Bartack Missing/Missing Stitch/Locks Bottom Line Up & Down Bottom O/L Uneven Bottom Rib Open Seam Bottom Up & Down 30 Broken Stitch 10 Cross Label 3 Cuff Direction Change 3 Cuff Finishing Uneven 23 Cuff Joint 19 Cuff Line Not Matching 6 Cuff O/L Uneven 2 Cuff Open 1 Cuff Uneven 15 Damage 83 Down Stitch 2 F/P Up & Down 47 Finishing Uneven Stitch 12 Holes Due To Wear & Tear 15 Hood Middle Out 4 Hood Size Jump 8 Improper Assembly Joint Stitch 5 Joint Up & Down 7 Label 4 Label Missing 3 Label Out 27 Label Size Jump 1 Label Uneven 40 Loose Stitch Middle Out Misalignment Up & Down 31 Missing labels/Parts 13 Neck Finishing 11 Neck Finishing Uneven 3 Oil stains 3 Open Cuff Open Seam 10 Others Piping 52 Piping Uneven 14 Pocket Placement Wrong 9 Pocket Stitch Uneven Pocket Up & Down 26 Pointed Uneven Puckering 35 Raw Edges 13 Rib Uneven 5 Rib Direction Change Rib Line Uneven Side Slit Uneven Size Jump 17 Skip Stitch 1 Stains / Chalk Marks Vilcro Cross Attach / Missing velcro Wavy Seam 8 Without Label Zip Piping Uneven 3 Zip Pointed Uneven Zip Uneven Zip Up & Down 96 Overall Defects Chart For May - 03 Defects 42 45 39 5 7 31 2 15 23 3 11 164 95 61 CE1 - Appendix Page - 35 PO EFFICIENCY OF PRODUCTION LINES FROM JAN-02 TO JUNE-03 60.00 I JOINED AS P & Q ENGG IN MAY-02 56.41 50.81 45.42 41.01 50.23 50.00 47.34 46.66 44.20 38.60 39.93 49.76 40.00 32.50 32.51 28.19 25.41 23.93 22.13 33.14 EFF IN % 30.00 20.00 10.00 0.00 May-02 Nov-02 May-03 Dec-02 Feb-02 Mar-02 Feb-03 Mar-03 Apr-02 Aug-02 Sep-02 Jan-02 Jun-02 Oct-02 Jan-03 Apr-03 Jul-02 Jun-03 CE1 - Appendix Page - 36 MONTH