62: Proposed the equivalent production method for statistics

"Since General Manager Liu wants me to speak, I'll be frank. Our current process flow has issues because before the initial steps are completed, the workers in the later steps are just waiting, which delays work and production. And before closing time, because the work in the later steps isn't finished, the initial steps stop production. Every morning and evening, a lot of working time is wasted in both the initial and later steps."

To make the seriousness of the problem clear, Yang Tianmo explained it meticulously, breaking it down into detail.

"To ensure clear production statistics, we must do it this way," Qi Qingan said.

"Why is it a 'must'?" Liu Xiaolin asked, puzzled.

"General Manager Liu, think about it. We need to report the production statistics table every day. We must have the data when the last engine is completed, that's why we have to do it this way," Qi Qingan said.

"Does the Technology Department have any opinion on this issue?" Seeing that Qi Qingan was stuck on a point, Liu Xiaolin didn't want to discuss it further with him. Perhaps changing the approach would help him understand.

"I believe this process flow is beneficial for simple production statistics, but it is indeed as Master Yang said, it wastes too much labor time, and it's also not conducive to improving the enthusiasm of the workers," Minister Tan Qilin said with a frown.

"But the personnel in our Quality Inspection Department have been working diligently all along; they certainly haven't wasted any time," Li Wei said, removing the label of delaying work and production from the Quality Inspection Department.

"Oh, come on. Doesn't the quality inspection for each step have to wait until the step is completed? When the engines from the completed steps haven't come out yet, aren't you guys also idle?" Yang Tianmo said, curling his lip.

Yang Tianmo's single sentence silenced Li Wei's loud voice, and she stopped speaking.

It was the first time Liu Xiaolin had seen Li Wei stumped, and he was amused. It seemed only an old master's words could make Li Wei quiet.

"Let me say a few words. I think the problem Master Yang raised is very good. We shouldn't delay work and production just for the convenience of statistics," Liu Xiaolin stated his opinion: "Currently, our orders aren't that many, so we can produce without rushing. In the future, if orders increase significantly, can we still do this?"

"If orders increase, we can add personnel and equipment," Qi Qingan said.

"Of course, personnel and equipment need to be increased, but if we continue like this, the delays in work and production will multiply! We can't waste time without limit," Yang Tianmo retorted again.

"Then what do you suggest? Just produce haphazardly every day without accurate production reports, is that acceptable?" Qi Qingan said, giving Yang Tianmo a glare.

"I wonder if everyone has heard of the term 'equivalent units of production'? Equivalent units of production refers to converting work-in-progress at the end of the period into the equivalent number of completed products based on the input of materials and the degree of processing," Liu Xiaolin said with a smile.

"Can I understand it as 'approximate production'?" Yang Tianmo said humorously.

"Yes, that's the meaning," Liu Xiaolin said with a smile. "We can put full effort into each step. At closing time, all semi-finished products that are not fully completed can be statistically accounted for using the equivalent units of production method. This can not only ensure the timely reporting of the workshop's production reports but also solve the problem of wasted time before and after each step."

"That's a good idea! This way, each step will be continuously running, eliminating the problem of delayed work, and we can also report production statistics accurately and promptly," Minister Tan Qilin strongly agreed with this idea.

"Yes, as long as we utilize all the idle waiting time, then from the very start of work until the minute before closing time, every step can produce simultaneously. This will greatly improve efficiency, it's a very good idea," Li Wei also expressed her agreement.

"But how do we calculate this equivalent units of production? Our production statistician has always counted based on finished products," Qi Qingan was a bit confused.

"Let her communicate with Minister Tan from the Technology Department. Figure out what percentage of a finished product each step represents. Then, multiply the number of products in each step by the percentage and add them up, wouldn't that work? I don't think it's difficult; she should be able to learn quickly." Liu Xiaolin's mind was indeed excellent; after all, he was a university student from a prestigious school!

"Okay, no problem. As soon as I start work tomorrow, I'll calculate the percentage of finished products that the semi-finished products in each step represent, to make it easier for them to do the statistics," Minister Tan Qilin said with a smile.

"Oh, General Manager Liu, you are truly amazing. You solved a big problem with just one sentence. I believe that if we can operate at full capacity like this tomorrow, the production might even reach four hundred units," Yang Tianmo said happily, slapping his thigh and smiling.

"I hope so!" Liu Xiaolin was even happier to hear this.

"It definitely can. Just think, this saves almost an hour of working time in total, both in the morning and evening," Yang Tianmo said.

"I think Master Yang is right. With this kind of process improvement, four hundred units should be no problem," Qi Qingan said after thinking it through.

"Then we'll start improving the process flow tomorrow to see if we can increase production efficiency," Wang Shengjun, who had been silent all along, concluded.

"Minister Qi, let me see today's statistics table first," Liu Xiaolin remembered that he hadn't seen today's statistics table yet.

Qi Qingan took the statistics table from the drawer and handed it to Liu Xiaolin: "Today is more than ten units less than the previous days."

Liu Xiaolin took the statistics table: "Today's production is 302 units, about the same as the first day. We really need to improve the process flow."

. You provided God Wu Ji's "Rise of Heavy Industry: Building the Light of Domestic Goods"