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Strategic and Production Management of Industrial Enterprises

» Course Overview

This is a 5 days course designed to introduce managers and their assistants to methods of performance measurement. It is aimed at top level and production managers and supervisors in the manufacturing industry.

The course introduces a range of performance measurement systems to monitor and evaluate business performance and covers general business indicators and including calculating Overall Effective Efficiency of a product, line or factory in closer detail. The course also provides the student with background UNIDO information technology tools, its methodology and applications for quick and easy measurement of overall enterprise performance, its low level production parameters and validating work rates. Survey techniques for data collection are also covered in the course, and the students are expected to take away these methods, UNIDO software and training materials in electronics format and try them at their own site with assistants of locally assigned Program support consultants.

» Course Plan

The course is split into several sessions. The sessions consist of presentations made by UNIDO experts form DDTC, GOLEM, Austria and MDA, UK, exercises to be completed during the session based on individual work with PCs in the class, and also a data collection task within the participants work place supported by national consultants. All answers to exercises will be worked through and any questions can be raised at specified times during the sessions.

» Course Plan

» Course Objectives

The course aims to provide the students with the necessary background so that they are able to:

• Understand that different Performance Measurement systems are available.

• Understand how to evaluate a company at a glance by using the PHAROS – Business Navigator software, monitor Costs, Performance, Quality (production and customer deliveries), competitiveness, Product contribution, Customers contribution, Overall Effective Efficiency, Calculate Production Efficiencies, Set up business targets, Standard Cost and Compliment, Measure Labour Performance, Understand how to measure Work Rates, Understand how to use Data Collection Sheets.

» Course Outline

Day 1

• Introduction to UNIDO Continuous Improvement Methodology.

• Introduction to Productivity and Performance Measures.
• Introduction into UNIDO Business Software (BPS).
• Options in delivering solutions to SMEs.
• Demonstration of the packages.

Day 2

• PHAROS – Business Navigator.

• Basic features, functions, operations and applications.
• Management working pattern, problems which addressed by Pharos.

Day 3

• PHAROS Modules: Customer Contribution.

• Overview & Case study.

Day 4

• Introduction To Performance Measurement.

• What performance measurement means.
• Examples of performance measurement systems.
• Introduction to performance indicators.
• Linkages between performance measurement systems and strategies.
• Overview of Produce-IT Data Entry.
• Indicator 1 – Production.
     ▪ Work rates.
     ▪ Time study approach.
     ▪ Calculation of standard work rate.

• Indicator 2 – Quality.
    ▪ Losses & rework.
    ▪ ‘Right first time’ approach.

• Indicator 3 – Overall Effective Efficiency (OEE).
    ▪ What OEE measures.
    ▪ Applications of OEE.
    ▪ Calculation of OEE.

• Indicator 4 – Performance / Efficiency.
    ▪ Production Efficiency.
    ▪ Calculation of standards MAU, MEU.
    ▪ Calculation of measures based on actuals.
    ▪ Line running efficiency, line utilization.

Day 5

• Indicator 5 – Costs.

       ▪ Standard cost and compliment.
       ▪ Labor types.
     ▪ Calculation of standard labor hours and cost.

• Indicator 6 – Labor Performance.
     ▪ Standard labor hours.
     ▪ Calculation of labor performance.
     ▪ Overhead recovery.
     ▪ Calculation of overhead recovery.
   ▪ Data Collection Methodology.
   ▪ Data collection.
     ▪ Use of factory floor control sheets.
     ▪ Calculation of efficiency indicators using data collected.