LazeriniÃ
³ Ir KitÃ
³ AukÃ
¡tÃ
³ TechnologijÃ
³ ïtaka NaÃ
¡umui Lietuvos ...
74
ISSN 1392 - 1207. MECHANIKA. 2008. Nr.1(69)
Impact of laser and other high technologies on manufacturing efficiency
in Lithuanian and Finnish sheet metalworking industry
M. Rimašauskas*, M. Ollikainen**, A. Bargelis***, J. Varis****
*Kaunas University of Technology, Kęstučio 27, 44312 Kaunas, Lithuania, E-mail: marius.rimasauskas@ktu.lt
**Lappeenranta University of Technology, P.O. Box, FIN-53851 Lappeenranta, Finland, E-mail: mikael.ollikainen@lut.fi
***Kaunas University of Technology, Kęstučio 27, 44312 Kaunas, Lithuania, E-mail: algirdas.bargelis@ktu.lt
****Lappeenranta University of Technology, P.O. Box, FIN-53851 Lappeenranta, Finland, E-mail: juha.varis@lut.fi
1. Introduction
tains from many parameters which affect the customer
requirements definition term and make product or service
Growing market competition compels manufactu-
delivery span. The definition methodology of company
ring enterprises to be on the hunt for new means of increas-
activity efficiency in the next chapter of the paper is pre-
ing production efficiency. Recently the pressure of the
sented. Analysis of activity efficiency will supposedly help
global competitive environment has forced manufacturers
manufacture enterprises avoid waste and errors and in-
to concentrate their strategies at an increase in efficiency.
crease their profit.
To achieve it the requirements of reduced production cost
and improved product quality are to be fulfilled. Modern
2. Methodology of efficiency definition
production organizations are working in the global envi-
ronment which requires continuous perfection [1]. New
Work
efficiency
E as mentioned above depends
generation lasers and other high technologies, upgrading of
on a lot of parameters and can be expressed as the follow-
knowledge and data bases and the production organization
ing abstraction function
are the measures to be taken by each enterprise seeking to
improve the effectiveness of productivity. General produc-
E = f (z , z , z , z
(1)
1
2
3
4 )
tion efficiency includes not only the work of the personal
directly engaged in manufacture, but also the work per-
where z1 is manufacturing productivity index, z2 is machine
formed by the staff indirectly related to it, i.e. by manag-
tool workload coefficient, z3 is product delivery time to the
ers, auxiliary, quality controllers, administration officials,
customer, z4 is product quality cost and index. In this paper
etc. [2]. The work efficiency of the latter employees is in-
the impact of manufacturing productivity index and ma-
creased with the implementation of information technolo-
chine tool workload coefficient on work efficiency will be
gies [3].
considered. Other parameters as a conditionally constants
In sheet metalworking industry a great role is
in this research are left and their influence on work effi-
played by flexibility and adaptability of an enterprise to
ciency by appropriate industry good practice and experi-
the rapid varying production environment. Customers re-
mental coefficients are estimated.
quire high quality versatile products, shorter delivery
Lithuanian and Finnish sheet metalworking manu-
terms, better service and lower prices. Simultaneously, life
factures applying the same above mentioned facility par-
cycle of a product shortens and shortens [4]. This is a great
ticipated in the investigation. According to the headcount,
challenge to metal sheet product manufacturers.
the biggest manufacturing enterprise is Lithuanian com-
The objective of enterprise strategy is the im-
prising nearly 600 employees. Five enterprises are medium
provement of all its indices. Quality is repeatedly identi-
size with a hundred to two hundred people. Five small
fied with efficiency, both being somehow separate and
companies have bellow a hundred employees. Lithuanian
inherently connected concepts [5]. The value of a devel-
enterprises are spread all over the country, while Finnish
oped product is its quality which can be achieved by high
sheet metalworking companies are located in the southern
level specialists and technologies. With the intention of
and central parts of the country. As it is seen from Fig. 1
improving quality the enterprises emphasize the applica-
Finnish enterprises were established much earlier.
tion of Enterprise Resources Planning (ERP), Just In Time
(JIT), Total Quality Management (TQM), SIX Sigma and
2.1. Impact of laser and other high technologies on produc-
other strategies and philosophies as the panaceas for pro-
tivity of sheet metalworking industry
duction problems solution [1]. Regrettably, in many cases
some easily achievable things involved in the product
From the viewpoint of manufacturing productivity
quality are forgotten. Nowadays, elaborated maintenance
and effectiveness increase, production technologies are of
of technologies and products, complicated equipment and
great importance as they are constantly improving while
exploitation affect production effectiveness and profitabil-
human labour is decreasing [6]. It is of great relevance to
ity [5].
reduce the weight of structures and improve seeking their
The aim of this paper is to determine the impact
functions in sheet metalworking industry. On the other
of CNC laser cutting and other high technologies (CNC
hand, the appearing modern technologies make it possible
punching, CNC bending, robotic welding and riveting) on
to produce effectively and economically the products of
the general manufacture efficiency and effectiveness. Effi-
metal sheets. These technologies allow to cut the number
ciency in this paper is considered as complex set that per-
of maintenance workers, to improve the product quality
75
and shorten the manufacturing time. In this case employees
on the enterprise directly. The estimation of productivity
have to be highly motivated and qualified.
can help the enterprise to determine a primary datum point
from which various situations can be studied and analyzed.
One of the most popular methods of productivity
2020
estimation and evaluation is the calculation of partial pro-
2000
ductivity indices [8]. In this way, general productivity is
1980
1960
P = P + P + P + P + P
(3)
H
M
C
E
O
1940
Lithuanian companies
1920
where P is general productivity, PH is productivity index of
Finnish companies
1900
employees, PM is productivity index of materials, PC is
1880
productivity index of investments, PE is productivity index
of power, P
1860
O is productivity index of cost used.
The partial productivity index is frequently calcu-
0 1 2 3 4 5 6
7
Companies
lated for the principal equipment, manufacture section or a
Fig. 1 Establishment date of Finnish and Lithuanian sheet
highly qualified operator. In this paper the aspects of em-
metalworking companies
ployee‘s productivity index will be analyzed in greater
detail
2.2. Estimation of productivity index
O
h
P =
(4)
H
The enterprises estimate productivity index ac-
I h
cording to their own or borrowed methods. It is not wrong,
it is worse when the productivity index is considered to be
where Oh is the value annually generated by employees, Ih
excellent and no changes are needed. Such consideration
is the number of employees.
may sharply affect productivity as it may be done in case
Application of good experience and skills to pro-
an enterprise cannot evaluate its productivity. In order to
duction processes makes the major impact on partial pro-
increase productivity, the organization has to know an ac-
ductivity. Use can be made of it, depending on production
curate knowledge of it. Manufacturing productivity P is the
system traditions, experience, tooling and machine tools.
ratio of manufactured product value to the cost to produce
The greatest effectiveness may be reached when employ-
it [7]
ees are capable of optimally applying their knowledge and
experience [9]. Benchmarking is one of the popular meth-
n
m
ods to share and acquire good practice among different
P = ∑ O
I
(2)
i
∑ j
companies in the same industry area [10]. Own products
i=1
j =1
development and production have advantages against those
where O is the value of manufactured products, I is manu-
which are created away. Adaptive design in CAD systems
facturing cost. It is obvious that the term of productivity
[11] can increase new product development efficiency.
comprises two notions important to production engineering
Productivity index Pc is related to the invest-
and competitive engineering. The first notion is closely
ments, high-tech equipment. The investments are to satisfy
connected to production technologies and their possibili-
the purchase of the most necessary machine tools. Analysis
ties; the second is also closely connected to the develop-
of Finnish and Lithuanian enterprises activities shows that
ment and estimation of the product value.
the low index of high-tech equipment workload has a di-
A common mistake is when manufacturing im-
rect effect on the labour productivity. It is caused by insuf-
provement is considered as stimulating an increase in pro-
ficient skills of the operators working with the mentioned
ductivity index. It may happen, whereas in fact it depends
equipment and without a rational sequence of the parts
on a number of indices and activity results. An effective
being machined. Workload can be evaluated and increased
labour is thought to bring an increase in productivity. Un-
by applying a concurrent engineering method [12]. It helps
fortunately, a greater quantity of products manufactured
to achieve the optimal value of any machine tool workload
per time unit does not indicate productivity which includes
coefficient η applying the following function
the value, quality of the product manufactured and cost
v
used to achieve it.
∑(Sm )
The productivity indices are strongly affected by
j
j 1
= =
η
→ 1 0
. (5)
downtime or under produced products. Then the cost in-
i
Ri
creases and without the created value the enterprise loses
its customers which may cause lasting negative impact.
where Sm is total machining time of typical design features,
Product demand in the market is one of the indices which
j is the number of design features types, R is machine tool
the enterprise has to observe and analyze because it has no
work time resource.
power to monitor it. Nevertheless, the product demand has
to be taken into consideration in launching a new product.
r
o
Product versatility enhances its successful marketing and
S = ∑∑T q
(6)
m
kl kl
value; therefore product designers have to take it to their
k=1 l=1
minds at an early stage of the product development. Prod-
uct value is increased by qualitative product maintenance
where k is the number of products, q is the volume of
during its all life cycle. The indices related to cost depend
products being manufactured, l is the number of design
76
features which can be manufactured by i type machine
tool, T is machining time of a typical design feature.
60
Activity efficiency and effectiveness by bench-
50
marking results of the mentioned seven sheet metalwork-
40
ing companies in Finland and Lithuania have been carried
ions
ill 30
out.
20
3. Results
Euros, m 10
0
Seven Finnish and seven Lithuanian sheet metal-
1
2
3 4 5 6
7
working enterprises using above mentioned laser and other
Companies
high technologies participated in this investigation. As it is
1999
2000
2001
2002 2003 2004 2005
2006
mentioned above, general productivity of an enterprise is
the ratio of the value achieved to the cost input. Annual
turnover of an enterprise may be taken as the achieved
Fig. 3 Turnover of Finnish manufacturers
value, while its cost may be the number of employees who
were working to achieve that annual turnover. By applying
companies have a greater number of employees which is
this method a partial productivity index of an employee is
gradually reduced. Overall number of Lithuanian and Fin-
obtained. As it is seen from Figs. 2 and 3, the turnovers of
nish employees differs greatly. The biggest Lithuanian
both countries gradually increase. Fig. 3 indicates that the
company has about 600 employees while the Finnish –
period of 2001-2003 years was difficult to Finnish manu-
only 250. The other Finnish companies employ less than
facturers. This year the production scope was either con-
250, in three of them the employees’ number never reach
stant or decreased as it is stipulated by a general slow
100. In Lithuania the smaller number of employees is in
down of economy. As it is seen from Figs. 2 and 3 the dif-
newly established companies. In earlier companies the
ference of production level between Lithuanian and Finish
number of employees is not easily cut even because the
manufacturers is evident.
level of the available technologies is not so high that re-
dundant employees could be fired.
25
700
r
600
20
be 500
m 400
ions 15
s’ nu 300
ill
y
ee 200
,
m 10
p
lo 100
Euros
Em
0
5
1
2
3
4
5
6
7
Companies
0
1 2 3 4 5 6 7
1999
2000
2001
2002
2003
Companies
2004
2005
2006
2002
2003 2004
2005 2006
Fig. 4 Number of employees in Lithuanian sheet metal-
Fig. 2 Turnover of Lithuanian manufacturers
working industry
This leap in Lithuanian industry is due to the im-
250
plementation of expedient investments and strategy plan.
The Finnish manufacturers enjoy the stronger traditions in
r
200
competitive products manufacture; therefore they could
be
m 150
afford to allot all investments to improvement of the prod-
uct quality and functioning. In this way, Finnish manufac-
s’ nu 100
turers improve their production technologies and reduce
y
ee
production cost. Lithuanian companies produce several
p
lo 50
unsophisticated products or fulfil some orders which re-
Em
0
quire greater costs and the value achieved is smaller.
1
2
3
4
5
6
7
Among the enterprises participating in this investigation
Companies
each country has a company with exceptionally higher
1999
2000
2001
2002
2003
turnover. The rest of the companies do not show any
2004
2005
2006
greater differences in their turnover. Both countries have a
company which has been recently established and its turn-
Fig. 5 Number of employees in Finnish sheet metalwork-
over is considerably smaller.
ing industry
The variation of employees’ number in Lithua-
nian and Finnish companies during the recent years in
In that case the enterprises should find it advan-
Figs. 4 and 5 is showed. No significant tendencies in the
tages to increase the manufacturing productivity by reduc-
variation of employees’ number are observed. The earlier
ing the number of employees and renovating their tech-
77
nologies, at the same time training the rest of their working
that this index in Finland has not decreased compared to
people. New manufactures are gradually increasing their
2003. The sixth enterprise differs considerably. This com-
number of employees, thus an increase in their production
pany has been recently launched and is oriented to high-
efficiency is to be based on the growth of turnover. Never-
tech level products which are manufactured by means of
theless, comparing the trends of Finnish and Lithuanian
elaborate technologies. The staff number is small and it is
sheet metalworking manufactures, it is evident that the
growing rather slowly. In Lithuania there are two compa-
employees’ number in Lithuania is about twice greater,
nies whose employees productivity has fallen down com-
while their turnover is nearly twice lower.
pared to the year 2003. The fourth company has increased
Figs. 6 and 7 show the variation of the output in-
the number of its employees considerably.
dex in Lithuanian and Finnish sheet metalworking manu-
On the right of the diagrams in Figs. 8 and 9 on
factures. In this case the datum point is the year 2003,
axis y a monthly turnover produced by employees is repre-
when the output index was 1. As it is seen from Fig. 6, the
sented. On the left we can see subjective evaluation of the
greatest growth of this index is in the second and fifth en-
enterprise according to the level of its technologies: 1
terprises which were established earlier and they both have
stands for very poor technologies, 5 – medium technolo-
proper traditions in sheet metalworking sphere. The output
gies, 9 – excellent high technologies. The company execu-
index starts increasing with a gradual increase in turnover
tive presents the evaluation.
by renovating technologies and simultaneously reducing
the number of employees. There are two enterprises whose
Euros
output index has decreased compared to that of 2003. Both
9
12000
of them have been established lately, but their activity is
8
level
10000
quite unlike. The third enterprise experiences an increase
7
in the number of employees and inappropriate growth of
6
8000
turnover as well as incapability of implementing modern
nology 5
6000
progressive technologies which could help either reduce or
4
keep a constant number of employees. In the fifth enter-
3
4000
prise a gradual, even increasing growth of turnover is no-
2
2000
ticed with a faster growth of the number of employees. The
1
latter enterprise was established in 2003; therefore an in-
0
0
Conditional tech
1
2
3
4
5
6
7
crease in the staff is unavoidable.
Companies
When compared the indices of employees effi-
Technology level
Monthly turnover
ciency of Lithuanian and Finnish enterprises it is evident
P
Fig. 8 Monthly turnover produced by employees in Lithua-
H 3
nian enterprises
2.5
2
Euros
9
40000
1.5
8
35000
1
level 7
30000
0.5
6
25000
0
nology 5
20000
1 2 3 4
5 6 7
4
15000
Companies
3
2
10000
2004
2005
2006
1
5000
Fig. 6 Variation of the employees’ productivity index of
0
0
Conditional tech
Lithuanian enterprises compared to the year 2003
1
2
3
4
5
6
7
Companies
Technology level
Monthly turnover
PH 3
2.5
Fig. 9 Monthly turnover produced by employees in Finnish
enterprises
2
1.5
The diagrams show that subjective evaluation is
frequently not quite right as the other enterprises are not
1
overviewed. Lithuanian and Finnish enterprises with the
0.5
highest monthly turnover for an employee do not evaluate
0
their technologies with the highest point. This fact indi-
cates that they have a potential to grow and improve their
1 2 3 4
5 6 7
Companies
results. Out of all participating enterprises only two Fin-
nish manufactures evaluated their technologies with the
2004
2005
2006
highest point. Both these companies have a very definite
Fig. 7 Variation of the employees’ productivity index in
already implemented strategy whose principal aims are
Finnish enterprises compared to 2003
investments to intellectual products and modern high tech-
78
nologies. The major difference between Lithuanian and
4. Discussions
Finnish companies is noticed in respect to the monthly
turnover produced by an employee, which is a significant
All Finnish and Lithuanian sheet metalworking
index of the general production efficiency. It is evident that
companies have friendly agreed to participate in the inves-
in Finnish companies it noticeably exceeds Lithuanian in-
tigation. Summing up this research we can evaluate the
dices. The index of the best Lithuanian company fraction-
position of each company in the labour market of its coun-
ally exceeds the indices of the worst Finnish company. In
try and compare the obtained results with those achieved
Fig. 10 and 11, on the right on axis y we see the turnover
by the manufacturers of other countries. The diagrams in-
of Lithuanian and Finnish enterprises achieved in 2006.
dicate that Lithuanian indices are lower than Finnish. This
On the left we can see the percentage of the com-
fact shows the importance of evaluating the benefits and
pany‘s turnover made by its products and the products as
exploitation of available technologies. Overall number of
per order. It is also a significant index indicating the fur-
employees working in Lithuanian enterprises is about
ther perspectives.
twice higher than Finnish, whereas the value produced is
twice lower. The sharp difference is seen when the
monthly turnover of both countries is compared. Finnish
%
100
25
producers surpass Lithuanian sheet metalworking compa-
nies even three times. The only reason lying in this back-
80
20
wardness is implementation and assimilation problems in
60
15
ions
high level technologies. In this investigation we have per-
ill
ceived not once that Lithuanian manufacturers do not lag
40
10
behind, or lag a little according to the available equipment.
Nevertheless, there is a lag in automation of auxiliary la-
20
5
Euros, m
bour. Actually, to achieve the expedient results the compa-
0
0
nies have not only to possess modern technologies, they
1
2
3
4
5
6
7
have to exploit them optimally. Optimal exploitation of all
Companies
the equipment is one of the factors vital in improvement of
Subcontrancting production
productivity effectiveness and efficiency in Lithuanian
Own production
enterprises. Another problem is dependence of the ob-
Turnover
tained turnover on the produced own products and prod-
ucts as order handled (see Fig. 11). The largest turnover of
Fig. 10 Distribution of own products and production per
four Finnish companies producing their own products only
order in Lithuanian enterprises
has been achieved. As it is seen from Fig. 10, Lithuanian
manufacturers do not produce their own proper products
The diagrams show that Lithuanian enterprises
except the fourth company whose turnover is filled only
produce about 30% of products as per order, and 70% their
with them.
own products.
The early design stage of new product develop-
e
m nt or early new order handled engineering stage must be
%
100
70
more emphasized in Lithuanian companies. In particular,
60
manufacturing cost forecasting [13]; the intended produc-
80
50
ions
tion cost early shows the future work efficiency and is
60
ill
40
available to make appropriate decisions in a time.
40
30
5. Conclusions
20
Euros, m
20
10
1. Investigation into the sheet metalworking Fin-
0
0
nish and Lithuanian enterprises makes it possible to evalu-
1
2
3
4
5
6
7
Companies
ate the work efficiency of separate and overall Lithuanian
companies’ production.
Subcontracting production
Own production
2. The partial productivity index of Finnish em-
Turnover
ployees is about three times higher than that in Lithuanian
sheet metalworking industry.
Fig. 11 Distribution of own products and production per
3. The numb
ployees in Finnish s
er of em
heet
order in Finnish enterprises
metal design enterprises is smaller while the production
value is greater than in Lithuanian analogous industry.
In Finnish enterprises these figures are similar,
4. Low level of motivated workforce and auto-
37% of the turnover is obtained from the products as per
mation of auxiliary labour and workload of machinery are
order, and 63% of the turnover comes from their own prod-
the principal reason of backwardness of Lithuanian enter-
ucts. Diagram 10 does not reveal any dependences while
prises.
diagram 11 shows that enterprises with the largest turnover
produce exclusively their own products without taking any
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Р е з ю м е
Рассмотрена эффективность литовских и фин-
M. Rimašauskas, M. Ollikainen, A. Bargelis, J. Varis
ских предприятий обработки металлического листа,
применяющих лазерные и другие высокие технологии.
LAZERINIŲ IR KITŲ AUKŠTŲJŲ TECHNOLOGIJŲ
Для этой цели использовалось эталонное тестирование.
ĮTAKA DARBO EFEKTYVUMUI LIETUVOS IR
Эффективность работы отражена в измерениями ин-
SUOMIJOS METALO LAKŠTŲ APDIRBIMO
дексов производительности. Из предприятий обеих
PRAMONĖJE
стран получена информация о показателях производ-
ства: изменение оборота, число сотрудников, приме-
R e z i u m ė
няемые технологии и оснастка, а также влияние рабо-
ты по заказам и своих продуктов на производитель-
Šiame straipsnyje nagrinėjamas Lietuvos ir Suo-
ность. Определено, что основное влияние на произво-
mijos metalo lakštų apdirbimo įmonių, naudojančių lazeri-
дительность имеет тип продукта, загрузка оборудова-
nes ir kitas aukštąsias technologijas, darbo našumas ir
ния, квалификация рабочих, применяемые процессы,
efektyvumas. Duomenys įmonėse buvo renkami apklausos
оснастка и оборудование. Полученные результаты
metodu. Buvo nustatytas darbo efektyvumas ir našumo
проанализированы и сделаны выводы.
indeksas. Taip pat surinkta informacija apie abiejų šalių
įmonių veiklos rodiklius: apyvartos kitimą, darbuotojų
Received December 04, 2007
skaičių, naudojamas technologijas ir įrangą, gamybos pa-
gal užsakymus ir savo gaminių gamybos įtaką darbo na-
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