Unit 17: Business Improvement Techniques


Unit 17:

Business Improvement Techniques


Unit code:
Y/601/1535

QCF level:
5


Credit value:
15






Aim

This unit will provide learners with knowledge of some of the business improvement methodologies and techniques that can be applied in a variety of manufacturing situations.

Unit abstract

This unit will enable learners to apply the principles of lead-time analysis by using a range of processes associated with this. They will also be able to use techniques to reduce set-up times for a particular application and present this improvement as a standard operating procedure. Learners will be able to describe the techniques employed in total productive maintenance (TPM) and explain the benefits. They will also be able to investigate and discover where the use of optimised production technology (OPT) is useful to make whole factory or whole manufacturing/business unit improvements.

Learning outcomes

On successful completion of this unit a learner will:

1       Be able to apply the principles of lead-time analysis by creating a lead-time profile, frequency diagram and by using a cause and effect diagram

2       Be able to use techniques in set-up reduction and prepare an improved standard operating procedure

3     Understand the benefits of total productive maintenance (TPM) techniques

4       Understand optimised production technology (OPT).





Unit content


1      Be able to apply the principles of lead-time analysis by creating a lead-time profile, frequency diagram and by using a cause and effect diagram

Lead-time profiles: representative parts or processes; improvements to profiles; planning improvements; problem solving and route cause analysis eg Ishikawa diagram, fishbone diagram, cause and effect diagram with addition of cards (CEDAC)

Principles and processes: objectives and targets for reduction in lead-time; identifying lead-time profiles with problems; improvement opportunities eg supply or delivery of parts, improved work flow, improved quality, flexibility of people, launch of material, inventory balance; determination of waste; frequency diagrams; identifying bottlenecks or constraints within lead-time profiles


2      Be able to use techniques in set-up reduction and prepare an improved standard operating procedure

Reduction activity techniques: evaluating improvement ideas; distinguishing between internal and external activities with reference to set-up; route cause analysis; principles and application of the 5 why’s

Standard operating procedure: all of the new steps and time required for each step; differentiation between internal and external steps; standard equipment and its location eg cutting tools, clamps, inspection equipment; information required for a quick set-up and its location eg CNC programmes, drawings, manufacturing instructions


3      Understand the benefits of total productive maintenance (TPM) techniques

TPM techniques: obtaining information; how to select a resource eg plant, equipment, machines, office equipment, services equipment, utilities; seven steps of autonomous and planned maintenance; overall equipment effectiveness; standard operating procedures

Scope of TPM: resources eg plant, equipment, machines, office equipment, services equipment, utilities; countermeasures for chronic and sporadic loss; benefits of TPM

4      Understand optimised production technology (OPT)

Principles of OPT: balancing flow (not capacity); determination of non-bottleneck utilisation; critical and non-critical resources; activation of resources; throughput and inventory governed by bottlenecks; transfer batch

Throughput accounting: contribution per factory or unit hour; total factory or unit cost per hour; return per factory or unit hour; recommendations for improvements to meet the aims of OPT

Aims of OPT: increasing plant throughput; decreasing inventory; decreasing operating expenses



Learning outcomes and assessment criteria




Learning outcomes

Assessment criteria for pass



On successful completion of

The learner can:



this unit a learner will:














LO1 Be able to apply the

1.1
gather information and create lead-time profiles


principles of lead-time

1.2
produce a frequency diagram listing the major


analysis by creating a lead-






bottlenecks or constraints as identified by lead-time


time profile, frequency








profiles


diagram and by using a












cause and effect diagram

1.3
use a cause and effect diagram to identify improvement






opportunities and determine waste








LO2 Be able to use techniques in

2.1
carry out a set-up reduction activity on a chosen



set-up reduction and


machine, or process using the appropriate techniques



prepare an improved

2.2
produce standard operating procedures for a new set-



standard operating






up



procedure
















LO3 Understand the benefits of

3.1
evaluate a range of techniques used in TPM



total productive

3.2
identify the countermeasures for chronic and sporadic



maintenance (TPM)






loss and explain the scope of TPM



techniques
















LO4 Understand optimised

4.1
explain the importance of the principles of OPT to the


production technology (OPT)



aims of OPT




4.2
use throughput accounting to measure the performance






of a factory or unit




4.3
make recommendations for improvements to meet the






aims of OPT.













Guidance
Links

This unit is designed to stand alone but has links with Unit 9: Manufacturing Planning and Scheduling Principles and Unit 20: Quality and Business Improvement.

This unit can be linked with the SEMTA Level 4 National Occupational Standards in Business Improvement Techniques, particularly:

       Unit 8: Carrying Out Lead Time Analysis

       Unit 11: Applying Set-up Reduction Techniques

       Unit 12: Applying Total Productive Maintenance (TPM)

       Unit 36: Creating Standard Operating Procedures.


Essential requirements

A range of financial and other performance data is required to enable accounting measures to be calculated and used. Both manual records and relevant computer software, of industrial standard, will also need to be available to enable realistic project work to be undertaken.

Employer engagement and vocational contexts

Liaison with industry should be encouraged in order to develop a valuable, relevant and alternative resource facility.

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