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Do You Know Exactly What the Rate of Return on Your Investment in Education Is?
Jozef Krišťak, 10. 02. 2015

The graduates of the Industrial Engineering Master Study are expected to implement the acquired knowledge into real environment quickly. This can be best verified in the form of particular benefits from the projects they initiated during their study and implemented successfully in their companies. The selection of appropriate projects and their solution are supervised by the IPA Slovakia project managers with long-term experience. The graduates of this year of study raised the bar very high – they achieved a 14-times return on investment in education.

On 12th September 2014 the final exams of the Industrial Engineering Master Study (the school year 2013/2014) took place. The participant presented also the results of their Master Thesis besides the written tests through which they confirmed their acquired theoretical knowledge. The criteria of a successful graduation were:

  • Fulfilling the declared goals in the project assignment
  • The ability to approach systematically the project and problem solution
  • The ability to utilise the selected theoretical knowledge in their own company environment

Besides the examination commission also the supervisor of the participants and the consultant assessed the fulfilling of the thesis and this fact contributed to objectifying the results submitted.

Graduates of the Master Study 2014/2015

Let’s have look at the areas where the graduates were working.

Several theses dealt with implementing TPMto the shop floors and production lines. The implementation of the basic TPM programmes brought:

  • increasing the line OEE from 12 % to 20 % in absolute values
  • reducing the costs for unplanned failures by 9,000 EUR
  • prolonging the time between failures in some cases up to 240 %
  • reducing the total failure rate by 72 %

The total benefits of implementing TPM moved from 34,000 to 100,000 EUR after deducting the investment costs for removal of failures.

The link of TPM with revision of the performance standards was an interesting thesis. It brought increase of the machine utilisation and higher throughput in production. The total benefit is close to 300,000 EUR.

Several theses dealt also with reducing the setup time. After implementing the SMED methodand training of the setter team the times for the line setup was reduced on average by 33 % (from 30 to 38 %), the line utilisation increased from 5 to 10 % and productivity from 4 to 13 %. The total benefits achieved (according to the type of the project) the values of 11,000 to 60,000 EUR. The average benefit of the theses oriented on setup time reduction is 29,000 EUR.

Some theses were oriented on increasing the production performance efficiency and eliminating the wastage and shortages. One thesis achieved an increase of the production line capacity by almost 175 % and at the same time it reduced the laboriousness by 68 % and the number of employees by 29 %. The total benefits can be counted in hundreds of thousands of euros.

Another Master Study graduate chose the area of the production cost reduction. Thanks to a system approach he reduced the material flows by 80 %, laboriousness by 8 % and the manufacturing area by 20 %. Financially it exceeds savings of 70,000 EUR.

Another thesis showed the implementation of used approaches through improving the conditions in the small-series and project production. Through small differences of methodologies the graduate succeeded in shortening the lead time in an interval from 10 to 50 % according to the type of the product. At the same time also production productivity was increased, especially through adapting the manufacturing and decision making methods of the type "make or buy” on average by 11 %. The total benefit of the thesis exceeded 30,000 EUR.

The area of the layout optimisation was the subject of another thesis. The new production layout, implementation of the FIFO principle, implementation of ergonomics, handling and production control reduced the WIP by more than 80,000 EUR and the need of handling with material by 87 %.

An interesting thesis was also shortening the time for approval of standard parts for the projects (the sampling process) by 68 % and at the same time improving the process quality in the form of increasing the FPY indicators by 87 % in the relative expression. The results were achieved through the process optimisation, lean administration of the documentation flow and removal of several organisational idle times.

I hope these numbers have drawn your attention and you have started thinking of them. If you wanted to achieve them also in your company, don’t hesitate and contact us, We will help you achieve them.



 Graduation from the Master Study and certification of the graduates

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