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1.

STANDARDIZATION & VARIETY REDUCTION

Definition : 1.1STANDARDIZATION is the process of formulating and applying rules for an orderly approach to a specific activity for the benefit and with the co-operation of all concerned, and in particular for the promotion of optimum overall economy taking due account of functional conditions and safety requirements. It is based on the consolidated results of science, technique and experience. It determines not only the basis for the present but also for future development and it should keep pace with progress. 1.2 A STANDARD is the result of a particular standardization effort, approved by a recognized authority. It may take the form of: (a) (b) (c) a document containing a set of conditions to be fulfilled; a fundamental unit or physical constant examples: ampere, absolute zero (Kelvin); and an object for physical comparison example: metre.

1.3Generally speaking A standard is a current solution to a recurring problem. A standard may be explained in another way, which gives an insight as to its nature. A standard is a specification accepted by recognized authority as the most practical and appropriate current solution of a recurring problem. A specification is defined as follows: Specification is a concise statement of the requirement for a material, process, method, procedure, or service including the exact procedure by which it can be determined that the conditions are met within the tolerances specified in the statement. 2. 2.1 Advantages : To the producer: a) b) c) d) e) Longer runs with fewer changes on the production line. Reduced tooling and set-up time.] Possibilities of increased mechanization and special purpose plant. Easier training of operatives. Simpler and cheaper inspection.

f) g) h) i) j) k) l) 2.2 a) b) c) d) 3.

Less capital invested in idle plant, tools and space. Reduction of stocks of materials, components and end-products. Reduced call on drawing office and design staff for special orders, leaving them free for work on new designs or improvement. Simpler clerical and administrative work. Easier service and maintenance. Concentration of sales and advertising effort on a narrower range. And hence, increased productivity, leading to reduction in costs and prices and to increased sales. To the User: Lower price for a given quality or performance. Reduced variety and level of stocks at all distribution points. Readier availability. Improved service and maintenance facilities.

Standard Space: 3.1In order to get a correct perspective of the aims of standardization at the various levels and establish their relationship with other major attributes of standards. This could be done conveniently by considering what may be called standards space with subject, Aspect and Level constituting the three axes of reference. (Please refer Fig.1).

4. 4.1

Organizations: At international level the standardization authorities are International Organization for standardization (ISO) and International Electro-technical Commission (IEC). Each country has the representation in these organizations. These organizations set up International Standards acceptable to all (in case of ISO) or four-fifths (in case of IEC) of the members. International Organization for Standardization (ISO): The object of the Organization is to promote the development of standards in the world with a view to facilitating international exchange of goods and services and to developing mutual co-operation in the sphere of intellectual, scientific, technological and economic activity. International Electro-technical Commission (IEC). The object is the unification of nomenclature and the classification of electrical apparatus and machinery with a view to ensuring co-operation amount technical societies throughout the world.

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Some of the organizations, which, are the authorities for standardization at national level are American Standards Institution, British Standards Institution, DIN (German Standards Institution). In India equivalent organization is Indian Standards Institutional (ISI). Aims of these organizations are same as those for the international level. The Indian Standards Institution (ISI), started functioning in 1947. Its principle objects are to co-ordinate efforts of producers, consumers, technologists and others for the improvement of materials, products, appliances, processes and methods; to prepare and promote the general adoption of standards on national and international basis relating to structures, commodities, materials, practices, and operations; and to promote standardization, quality control and simplification it industry and commerce.

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Z L E V E L International National Association Company Individual

Engineering Industry Commerce Science Education Transport Housing/Building Food Agriculture Forestry Textiles Chemicals X Subject

A S P E C T

Nomenclature (Material) Specification of (a machine for) Sampling & Inspection (an instrument) Tests & Analysis Limitation of Variety Code of Practise Model form of contract or agreement

quality composition performance

Y FIG. 1. DIAGRAMMATIC REPRESENTATION OF STANDARDS SPACE

5. 5.1

In company Standardization: In advanced countries the process of standardization is initiated by the individual companies having standards. These standards in course of time become trade standards, then industry standard and ultimately the national standards. This process has been taking place in India in reverse direction with ISI taking the initiatives in the matter. However, to seek the cooperation of all concerned in making the standards universally applicable, ISI strongly recommends a definite place for standardization activities within a organization of a company in the form of company standards department. In developing standards within a company information may have to be compiled from many sources some of these are: (a) (b) (c) (d) (e) (f) (g) (h) 5.3 Company practices. Company policy. Defense, Railway, Trade associations, Prime contractor. Internal & External liaison. Technical development and literature. National Standards ISI. Foreign Standards BSI, ASA, DIN. International Standard ISO, IEC.

5.2

Regarding materials this department should set standard on: (a) (b) (c) (d) (e) Raw material and product specifications. Material issue and accounting procedure. Storage and handling facilities for different materials. Purchase procedures, methods and conditions. Inspection methods and testing procedure.

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Preparing specifications for a product involves four distinct major consideration: (a) (b) (c) (d) Design consideration of function. Sales consideration of consumer acceptance. Manufacturing consideration of economical production. Procurements consideration of Marketing, material availability and prices.

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It is possible for these considerations to conflict with one another. It is for this reason that all departments concerned must co-operate with each other and seek a company standard.

6. 6.1

Variety Reduction: Standardization of Variety (or Variety Reduction, or Simplification) primarily involves the elimination of unnecessary types, grades, shapes, and sizes of manufactured articles; it also involves business methods and practices. The basic principle of variety reduction is that a single item shall serve for as many different purposes or for as many different classes of equipment and kinds of construction as possible. 6.2 The areas where Variety Reduction could be applied are: (a) (b) (c) (d) (e) (f) 6.3 Lines of product. Within a product group. The diversity of finishes and packaging. Basic designs, component parts and sub-assemblies. Materials, tools and bought out items. Production aspects.

Variety Reduction does not mean an arbitrary or undue restriction of the customers choice, for the customers willingness to buy is conditioned not only by usefulness, quality, attractiveness of appearance and the like but, above all, by the price of the product. Hence if a reduction in variety leads to reduction in manufacturing costs and to lower selling prices, the customers willingness to buy is enhanced even though the range of goods available may offer a somewhat smaller choice. From the manufacturing point of view anything that will tend to reduce complexity, tends to reduce costs of production and hence to increase profitability at any given selling price. But total profit depends upon volume of sales, as well as upon profit margins, and if adverse customer reaction is created by undue restriction of choice, this may result in a fall in total sales volume and total profit and much more harm than good will have been done. Conversely, to create new variety to meet every customers which will increase the complexity of manufacture, increase costs of production and lead to low total profits unless a compensating increase is made in selling prices.

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A sound policy of Variety Reduction should resolve, not create, any conflict between Production and Sales. The common aim must be to ensure maximum benefit for both the company and its customers. There is usually little risk of adverse customer reaction when Variety Reduction is confined to materials and component parts whilst leaving the full range of choice in the end-products. For example the internal components and arrangements of these inside radio or television sets can be altered without changing the function or external appearance of the models offered for sale. Market research and opinion survey: 30 years of Variety survey shows that generally 80% sales result from 20% varieties manufactured and 20% sales result from other 80% of varieties manufactured. It is in this 80% varieties (which contributes only 20% of sales) scope exists for Variety Reduction. Profit Analysis: Analysis of the profit contribution of each product will be an extremely useful technique in order to determine the need and scope for Variety Reduction in the existing range of end-products, provided the costs of each of the product have been determined with reasonable accuracy. It should be appreciated that most popular products need not necessarily be profitable ones. It may sometimes show that most popular products are so by virtue of the selling prices being too low relative to costs. This reveals that in order to increase profits cost reduction is necessary. It will also indicate which of the products may be eliminated with advantage.

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6.10 Consumption Studies: Consumption studies are cure to stores items. Coupled with deliberate decision they will invariably provide a basis for reduction of items (and varieties). Initial study is made on stores items as to the consumption of items over a period of time, say one year, two years or three years. This will give us a list of items which have never been used over the years, and hence provide an opportunity to eliminate them immediately. The second step in the study would be to choose those items, which have low consumption values. The low consumption figure may be determined by fixing a value from experience, or some proportion to the maximum consumption of similar items. Then a discussion as to the possibilities of eliminating these items with the concerned departments and persons may help in taking a decision.