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1 Scientific Journals Maritime University of Szczecin Zeszyty Naukowe Akademia Morska w Szczecinie 2010, 24(96) pp , 24(96) s Additional production tasks case study Dodatkowe zadanie produkcyjne opis przypadku Jerzy Okrzesa PPUH Filplast-Głogówek Sp. z o.o Głogówek, ul. 3 Maja 54, jerzy.rada@vp.pl Key words: production, solution for production organisation, production management Abstract The article herein presents the example of production solution during performance of additional, big and prestige production task. This task was conducted simultaneously to a current ordinary production in a determined time, with existing production area, machines, technological capacity and existing number of human resources. It shows solutions that were applied for additional production contract in a situation of full capacity load of current production. Słowa kluczowe: produkcja, rozwiązanie organizacji produkcji, zarządzanie produkcją Abstrakt W artykule zaprezentowano przykład rozwiązania produkcji przy realizacji dodatkowego dużego i prestiżowego zadania produkcyjnego. Zadanie to było prowadzone równolegle z bieżącą produkcją w oznaczonym czasie, przy istniejącej powierzchni produkcyjnej, potencjale maszynowym, technologicznym i ludzkim przedsiębiorstwa. Przedstawiono rozwiązania zastosowane przy produkcji dodatkowego kontraktu w sytuacji pełnej bieżącej produkcji. Introduction The dynamically changing economic environment, large competiveness of other companies on the market, seasonal increase and decrease of orders, all require from production companies efficient solutions. The example of such efficient, that is flexible and innovative, solution in a highly changeable economic environment is an establishment of a company from construction branch, which simultaneously will be a production company. Company X is a production, service and trade company from a construction branch and it produces, among others: doors, windows, insect nets, window sills, facades, skylights, winter gardens and other constructions on the basis of aluminium profiles (ALU) of different systems. Moreover, it sells the above mentioned products (also products of other manufactures), deals with deliveries, measurements, assemblies, project and construction, work and described above construction assessment, as well as it provides project consulting in a scope of constructions. The company X together with company Q is a one owner group that consists of four production plants: ALU constructions production plant, two PVC windows production plants and one roller blinds and garage gates production plant. It happens very often that products from company X, are a bigger part of purchase order made by a client of company Q, and all products are a subject to one delivery to a client. Company X realizes its strategy, which includes: production, supplying and assembly of joinery (branch term: aluminium constructions ), ALU for buildings and construction objects, according to general procedure: (A) Consulting, (B) Measurements, (C) Production, (D) Delivery, (E) Assembly, (F) Guarantee, (G) Service [4]. The above mentioned procedure elements (first five) have a crucial significance for terms and delivery times concerning additional production task. 68 Scientific Journals 24(96)

2 Additional production tasks case study Additional contract Delivery times, time and production period Adopted by Company X assumptions concerning realization of additional contract with current overload of production capacity included: production of repetitive, one type and identical product in one series, in a strictly determined time. This additional production task was called by Company X: Segments Contract. The decision concerning its acceptance was made in July Contract conditions were as following: start of production: from about , end of production: till about ; one time contract; deliveries (supplies) of ready constructions and products made about twice a week, sometimes three times a week; contract realization period was for a branch and Company X and extremely high production season, that means there were many purchase orders (in more urgent) in the same period of time. Description of the Object The described establishment is newly built [1] group of buildings with modern architecture, that is situated in the centre of Warsaw, and consists of office area for hire with usable area of: m 2 and total area of: m 2. Facade walls were designed with a use of innovative (entering construction market and architectures visions) segment and module system (segment-based / unitized façade). Group of buildings consist of: one, ten floor building, one, six floor building and there is also a two level car park. The project was designed by architectural office JSK Architekci (Fig. 1) [1]. Fig. 1. Horizon Plaza in Warsaw, Domaniewska street, photograph by M. Czarnota Rys. 1. Horizon Plaza, Warszawa, ul. Domaniewska, fot. M. Czarnota This investment was designed so as to be quickly established so profits and income from hire of office area could be immediately generated. This caused to apply the solution of segments (segment facades) which enabled the diversification of production and assembly between few companies (without work collision between them). One company would not be able to complete this in such short time. It wasn t exist bigger company in the country at this time. Production and segment deliveries were done by three companies: Company X from Opole region, Company Y from Poznań and Company Z from Wrocław. Product For production company X, which took over a contract, this was a one type product identical and repetitive (B segments, Fig. 2) and never before produced by this company. This caused difficulty in calculation of work time, because number of working hours needed for production of one segment was not known. This problem was solved by assuming production times devoted to similar activities concerning other products. This helped to work out the initial difficulty relating to estimation of number of segments that were due to production. It was an innovative product: each segment weighed over 300 kg with a size of: high 3.53 m x width 1.35 m, so it was a height of one storey [2]. It was both architectonically innovative (system not widely known and applied in architecture and by architectures), and innovative when it comes to construction because it enabled production diversification so that the required number of identical segments could be produced in significantly shorter time by few production companies, that were able to produce segments in their own plants. The crucial aspect of the system is that during assembly of segments in plants, the companies will not interfere each other, which happened very often when few companies at one time and on their parts did assembly of ALU or other kinds of facades (e.g. structural or mullion-transom curtain wall). The very important factor is that companies were able to assemble objects on the establishment quickly and easily, without having to put up extremely expensive scaffoldings. A and B type segments were alternately assembled on the establishment (Fig. 3). A type segment with a less complex construction, consists of one big glass block and electrical window shutters. B type segment with a much more complex structure consists of one fixed glass element, one glass element that can be opened, opaque elements, and electrical window shutters. Zeszyty Naukowe 24(96) 69

3 Jerzy Okrzesa Fig. 2. B type segment (from technical documentation of Alumen company) [2] Rys. 2. Segment typu B (z dokumentacji technicznej firmy Alumen) [2] Fig. 3. A and B type segments, photograph by J. Okrzesa Rys. 3. Segmenty typu A i B, fot. J. Okrzesa 70 Scientific Journals 24(96)

4 Additional production tasks case study Production Organization of production In company X it was assumed to reach the total capacity in 4-5 weeks from start of production, that is 40 segments a week. Such solution enabled to estimate the volume of contract, which Company X was due to perform. This volume amounted to 315 B type segments produced in the period of VIII X Superior priority was to start the production and deliveries of B type segments to the establishment, as soon as possible and with biggest amounts that were possible. Initial production in Company X was to verify (due to new product): real production time of one module, real production efficiency. In order to eliminate risk of engaging almost all (previous) production and work capacity only for the performance of this additional contract, production capacity was increased by creating new production hall, employing new workers, establishing adequate production realization and remuneration settlement, and training and informing workers about realization conditions of this additional contract. Due to decision concerning additional production, Company X established and created a production strategy in order to perform ordinary and additional production in the time of highest season. This solution, together with plan and schedule of actions, was presented during informative meetings of production team, which than consisted of employees, and included: detailed design of segments production put on boards in a meeting room during the whole period of additional project realization; remuneration rules, rules concerning work and production realization; daily production reports relating to segments which were collected and generally available for workers of additional contract; after each month of segments production there was a meeting with workers who participated in the additional contract, during which a summary and settlement of a month was made; daily supervision over production manager and vice president of Factory X, concerning production, its settlement, deliveries and supplies. In Company X the decision was made to change (adapt) the storage hall into a production hall no. 2 for the purpose of segments production. For the realization of additional Segments Contract and due to the above fact there was a necessity to prepare working tools, including work posts such as. additional assembly table. New daily work cards, a list and daily production report were also established [3]. Initially (August 2008) the new production was started in an existing crew system of production organization. Somewhere between VIII IX 2008 new work centre task system of production organization was introduced. Two worker teams were established and produced from the beginning to the end one segment, which moved together with table and with two worker team through all work centres. This system was established to simplify settlement of one segment realization and to provide adequate remuneration for workers. It has to be mentioned that all workers learned the following production operations: cutting, milling, assembling, fitting, sealing, glazing, packing. Nevertheless, for the efficient realization of additional Segments Contract, the alternative work centre crew system of production organization was introduced. This was done because it was assumed that current habit of crew system can prolong time of required production capacity. Therefore, except for few days, from the beginning IX 2008 of the realization of additional Segments Contract, work centre crew system was introduced. All workers present in a given day in hall no. 2 were assigned to different work tasks, technological centres, and performed work strictly in those assigned centres. Those workers formed a crew which work was settled according to number of segments produced in a given day, and segments were transported from one work centre into the other according to order of production actions. Remuneration for work Human resources were a crucial aspect when it comes to success of additional Segments Contract completion, therefore special attention was paid to: workers, their selection, increase of a number of workers, training, performance of Segments Contract with them, and then decrease a number of workers to previous level of about 18 people; Special remuneration, system, and high remuneration rates motivation of workers. In Company X during realization of additional Segments Contract: production was made in hall no. 1 (current orders) and simultaneously in adapted hall no. 2 (Segments Contract realization); Zeszyty Naukowe 24(96) 71

5 Jerzy Okrzesa work on segments production was more profitable for the workers; some specialists and more experienced employees that were necessary to perform current production orders, obligatory remained in hall 1; the increase of work capacity was done not only due to increase of number of workers, but owing to the increase of work capacity of already employed workers, with a use of adequate and motivating remuneration system; it was impossible to find in such a short time qualified workers and employ them for the period of three months. System of official orders (mainly during overtime) can be efficient only tentatively, that is during one week period, but this solution did not prove correct in maintaining assumed work capacity for 3 months. In order to realize additional Segments Contract, production team in Factory X consisted of: new (external) workers (employed under civil contract) to perform work in hall no. 2 (Segments Contract). These were mainly assembly workers, that had their own established business activities, who knew ALU construction production work, cooperated with Company X, and were not at that time engaged in assembly work on construction sites; newly employed workers, who were not specialists but employed for performance of simple activities (under employment contract for the defined period) both in hall no. 2 (Segments Contract) and in hall no. 1 (current production); workers already employed in Company X, specialist working only in hall 2 (Segments Contract) or only in hall no. 1 (current production); workers already employed in Company X, specialist working both in hall 2 (Segments Contract) and in hall no. 1 (current production), depending on the decision of production manager. The above different group types of workers were to perform different production tasks (hall no. 1 and hall no. 2) during one period of time. Therefore, there were different types of their remuneration settlement depending where (which production task), when and how many hours did the worker performed [1, 4]. The above solutions were consistent with: labour law (Labour Code), contracts with employees, Industrial Health and Safety Regulations, human honesty and morality. The above data collected on a daily basis, were approved by production manager and archived. All workers performing Segments Contract could at any time check the archived Daily Work Card. Summary The established by Company X decision processes, assumptions, as well as procedures and actions such as: 1) remuneration and settlement system for employees; 2) organization of ordinary and additional production; 3) organising informative, settlement and recapitulating meetings with employees; 4) constant supervision over production, deliveries and settlements; enabled company X to perform current and additional production and additional Segments Contract. For the fact that identical and repetitive product was produced, the settlement and organization of production was simplified. The difficulty was not only that decision concerning additional production had to be made in a time of increased number of ordinary purchase orders, but also the realization time was very short. The agreed assumptions and solutions proved to be correct for production realization of Segments Contract. Well established production system, clear and understandable settlement of employees remunerations, attractive remunerations and clarity of production results, as well s alternative solutions of production organization are the basis of success concerning additional contracts. Work centre task system: more efficient and fair settlement of work performed by employees, from two worker teams; training of all workers so that they obtained production skills relating to all existing work centres; it was more easy to training and engage new workers and increase production but required significantly more time, at the initial stage of Segments Contract realization, in order to achieve assumed capacity. Work centre crew system: enabled to achieve the superior, initial requirements, that is to produce relatively big number of segments from the beginning of production, but still not maximum; 72 Scientific Journals 24(96)

6 Additional production tasks case study made workers to obtain the high level of specialization and efficiency in a given work centres; turned out to be a more flexible and resistant system when it comes to lack of supplies, because when there was a lack of semi products (which happened occasionally), only a work centre depended on those semiproducts did not work but it did not require all workers, who realized Segments Contract, to learn individual activities at different work centres; daily settlement of workers remuneration between several crew members was not always fair for all workers, that formed this crew in a given day, e.g. when there was a lack of semi products supplies. Finally Company X made 350 B type segments, till 31 X This success was due to proper production organization in both halls in Company X. Moreover, this remarkable efficiency was caused by: workers who were properly introduced into production process and remuneration settlement, and were adequately motivated, as well as by reliable and efficient supervision over them. References Dokumentacja techniczna systemu fasad segmentowych firmy Alumen; Horizon Plaza, (General Designer architectonic office JSK, General Contractor DECOMA Sp. z o.o., Facade Contractor ALUMEN Sp. z o.o.). /Technical documentation of segment-based facades system from Alumen company; Horizon Plaza, OKRZESA J.: Opracowania i dokumentacja produkcyjna, 2008 r. /Studies and production documentation, own work, 2008/. 4. OKRZESA J.: Organizacja produkcji przy dodatkowo przyjętym dużym zadaniu produkcyjnym. Ekonomika i Organizacja Produkcji, 2010, 5, Warszawa /Work organisation with additional big production task. Economics and Production Organization, 2010, 5, Warsaw/. Recenzent: prof. dr hab. inż. Oleh Klyus Akademia Morska w Szczecinie Zeszyty Naukowe 24(96) 73

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