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Business owners normally seek for data about the performance of the factory from engineers. The primary KPI are line efficiency, machine productivity of the current running orders, production capacity production cost etc. This article is for both the engineers and the business owners.
Now small and medium sized garment manufacturers also are hiring engineers. So that they can start measuring work content, set fair rates for pieces and set their benchmark in the industry in term of efficiency and productivity.
All the performance measurement depends on the SAM value of the garment. Now question is that how you defining SAM of your garments? If you don’t have any software to define the SAM of operations you may be wrong in estimating standard minutes. Your SAM may be loose or tight. Normally, it has been seen that engineers who does not have training on work study tools, calculate SAM based on their assumption. They set their assumption by observing few old operation bulletins made by ex-employees or seniors. Do you know what will happen with wrong SAM?
Garment costing is done based on garment manufacturing cost (CM cost). CM cost is defined by multiplying SAM (work content) in a garment with hourly rate of the labor. So, a loose SAM will give high manufacturing cost and very tight SAM give low manufacturing cost. Both cases are risky. You may lose your customer or you will not have enough profit in making the order.
Secondly, when line performance and operator’s performance are explained in efficiency level will not represent true performance of the line or operator with Loose and tight SAM. Repeatedly presenting efficiency in a wrong value will set a wrong perception about the factory performance.
Capacity planning is done based on SAM. All planning may be in mess if standard minutes are not set correctly.
If your company has incentive plan based on individual efficiency then a wrong SAM is the most dangerous for a factory. Either operators will not get fair incentive or factory will lose lot of money in incentive.
No matter whether you own SAM calculator, GSD or Pro-SMV you still can make it right. Go to the floor, look the operators how they are working and record operation cycle time. Try to rate your operator. Using cycle time data recalculate SAM and compare it with your SAM set for that operation. Correct it in your operation bulletin.