Keywords

1 Introduction

Rise in the efficiency of the production while mastering of new products, that satisfies customers fully, can be possible in modern economic with the help of expert process flow and development of business systems, that are represented with the assembly of elements—the subsystem with lower level that are connected by business processes, to be more exact the production system and product development system (Vumek and Jhons 2013).

The experience of the leading engineering companies proves that improvements of the production system and alteration in corporate philosophy achieve the needed economic effect only if using multipronged approach.

This chapter considers these problems in some aspects: systematization of adaptation practice in production systems by domestic enterprises and determination of production systems development via increasing workflow to master of new products in the framework of complex usage of the production system tools.

2 Theoretical Justification

The research suggests using the term “production system” as the assembly of integrated resources and assembly of technological and other processes that provide efficient realization of production process to achieve final output (Ckhirtladze et al. 2015). Production system is based on the workflow of the mass production, standardization, and alignment of the units (Wader 2012). The authors and the founders of the production systems are Henry Ford and Taiichi Ono (Egorova et al. 2016); they determine classic principals: automation, balanced production, “dead in time,” but they notice that system is adaptable for internal and external environment of the particular production that has particular conditions and resource limit. Also, it has balanced system of the participants. So, the assessment of implementation systems at domestic engineering enterprises (GAZ group enterprises) revels the combination of adapted production system elements of the production systems “Ford” and “Toyota.” For instance, activity in Toyota Production System started with work standardization, to be more exact to implement the complex of the measures to decrease cycle duration at all levels of the technological process (Nenad 2008). Among them there are: primary time-tracking of the operations “kizen” method implementation and assessments of the results. Some operations were excluded from the technological chain and time for production loop decreases. The text step was to organize conveyor operations in 2014 via land utilization for expedition warehouses. The details are delivered in the amount needed for 2 working hours. As the result, the problems of the stock item regarding the details of delivery to the work places and timing of the budget economy were solved.

In the period of 2014–2015 year, 53 benchmark areas were created in the company and working parties acted in order to optimize quality and working processes. As a result, the number of the conveyers decreased, number of the employees also decreased, but the number of output products that underwent quality inspection at the first attempt increased. These facts proof the world statistics: according to “Lean Enterprise Institute,” the results of discourse about production systems implementation are: reduction of fault details up to 90%; decrease of the production loop up to 90%; faster entry to the market from 50 to 75%; decrease of the material inventory up to 90%.

At the same time, the needed effect of the production system improvement while corporate ethic is changed cannot be achieved without technical re-equipping and without increasing efficiency of the technological flow in order to produce high-quality products. This fact is proved by the operational evaluation of the average annual rate in management efficiency at “GAZ group” (Ingemansson and Bolmsjö 2004):

  1. 1.

    Smooth production (Рп)—is provided by performing and managing duties, orderliness of production and work.

    Рn = Productreal/Productplan, where: Productplan—production plan in time periods (month, quarter, year); Productreal—real number of produced goods in time period (month, quarter, year).

    Low values of rhythmical coefficient in month (Table 1) influence on production work efficiency and it leads to equipment downtime and to share of standing costs increase in relation to prime cost of the goods (increase of deprivation costs and salary for produced costs).

    Table 1 Ratio counting of smooth production in 2015
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  2. 2.

    Coefficient of high quality production at the first attempt

    Кк—characterize the results of quality management from craftsmen and technologists. Кк = Т/К, where: Т—number of products, accepted by QS department at the first attempt; К—number of products that were introduced to QS department (Table 2).

    Table 2 Coefficient of product quality at the first attempt in 2015
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    Significant influence on the product quality: deprecation of production assets and tools, quality of material and work piece, unbalanced load of the workers and equipment, low quality of work.

  3. 3.

    Сoefficient of working time loss (Cwt)—counted in order to determine ill-time of managerial functions at the work places. Cwt = 1 − (Tl/Тr) where: Тl—loss in working time at the section because of managers, hour; Тr—real working time at the section (Table 3).

    Table 3 Count of time loss coefficient in 2015
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    Judging by the facts above, we have come up to the conclusion that discipline and responsibility of the workers and managers must be increased.

  4. 4.

    Coefficient of the bonus payments for managers (Кbp mn )—counted as contrasting real percentage of the bonus payments with target figures (according to regulations on bonuses). Кbr mn  = Br/B p , where: Br—real bonus percentage in relation to salary; Bp—planned bonus percentage in relation to salary (Table 4).

    Table 4 Quality attributes and bonus payments in 2015
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Bonus calculation must take into account not only quantitative results of the sector but also quality of the production, levelness of the production, discipline, and promptness of the workers, who are responsible for the plan fulfillment and rhythm of the production (Table 5).

Table 5 Coefficient of bonus payments for managers at the enterprises in 2015
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Values of the coefficients proof that production system is lack of efficiency (Table 6).

Table 6 Consolidated data of the operational evaluation of the production management in 2015
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The analysis of the technological flows of the research subject shows: lack of synchrony and not rhythmical production processes, difficulties in re-trimming, not balanced load between technological flows at the sectors, working time loss.

Besides that, cost escalation for management doesn’t guarantee the escalation of such showings as economy and prime cost decrease (Кз2 < 1) (Table 7).

Table 7 Cost expediency counting for management in 2015
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To solve the tasks of the enterprise while mastering of new product we have formed the project, that are being implemented in 2014–2016 at the testing side—foundry engineering sector of OJSC “GAZ” (Table 8).

Table 8 Activities on the project
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The goal of the project is—increase of the technological flow efficiency and increase of the quality level and work place standardization. The tools of the production system that were used: “5S” system, analysis of the VSM slow, production analysis, solutions of the problems using “one by one” system, standardized work, and equipment maintenance.

Particularly, replacement of the net element determined the effect F = 620,000 rub./year-231,000 rub./year = 389,000 rub./year (Table 9).

Table 9 Changing of the processing flows in cast production
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The result of the activities in order to increase AFS when enchanting the pumping out “Minsk package” is introduced in Table 10.

Table 10 The results of the activity in order to increase AFS when enchanting the pumping out “Minsk package”
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Cost-benefit analysis of ferrosilicon dozing machine implementation is introduced in Table 11.

Table 11 Cost-benefit analysis of ferrosilicon dozing machine implementation
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Collective impact of project implementation is introduced in Table 12.

Table 12 The result of project implementation
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3 Conclusions

The task of new product mastering demands complex approach to the analysis and problem solution using the tools of the production group “GAZ” and well-coordinated work in order to enhance technological processes and instrumentation.

In spite of suggested activities in order to increase effectiveness of the production management that are effective from economic view, it is necessary to mark that calculations given below resemble only short-term effect. Calculation of the long-term effects must include forecasting elements and take into account social effect of the activities.