A REVIEW OF PRODUCTIVITY COST ANALYSIS

Abstract

The automotive industry has been experiencing a competitive environment and striving hard to find methods to reduce manufacturing cost, waste and improve quality. Lean manufacturing concepts are used by the industries to reduce work in progress inventories and also to reduce the waste for competing in the global market. The ultimate goal is to speed up the process there by increasing productivity through a proper utilization of man and machine. In a manufacturing industry, the layout and material flow in the shop floor decides its productivity. Material handling system also plays a key role in influencing productivity, throughput time and cost of the product. This research work has been carried out as a case study in an automotive industry with the objective of waste reduction. Efforts are made to reduce the motion wast in the shop floor. The problems in the current layout are identified and analyzed through simulation. Then the layout is modified, simulated and the results are compared with the current layout. The results revealed an improvement of something 20% in productivity.