Loading, Net, Valuable, and Operating Times

by Hassan Issa Moussa, Ph.D., P.Eng, C.Mgr CIM, CMBE, FDW, JHSC-II, Canada Educational Agent

In operation and manufacturing management, the concepts of loading, net time, valuable time, and operating time are critical for optimizing efficiency, reducing waste, and improving productivity. Below is a breakdown with examples focused on manufacturing and operations:

1. Loading

Definition: Assigning work or tasks to resources (e.g., machines, labour, or workstations) to meet production demands without overburdening capacity.

Example:

• Machine loading in an automotive assembly plant involves scheduling welding robots to handle specific car parts during a shift. If a robot can weld 50 parts/hour, loading it with 500 parts ensures 10 work hours (aligning with its capacity). Overloading (e.g., 600 parts) risks breakdowns while underloading waste capacity.
• Labour loading: Assigning operators to workstations based on skill and task complexity (e.g., placing experienced workers on high-precision tasks like engine assembly).

2. Net Operating Time

Definition: The time a resource is actively available for production after subtracting planned downtime (e.g., breaks, maintenance, changeovers). Example:

• A packaging line runs 24 hours/day but has 2 hours of scheduled maintenance and 1 hour for shift changes. The net operating time is 21 hours/day.
• If a CNC machine requires 30 minutes daily for tool calibration, its net operating time is 7.5 hours in an 8-hour shift.

3. Valuable Operating Time

Definition: The net operating time spent on value-adding activities (directly contributing to the product/service). Excludes non-value tasks (e.g., waiting, rework, setup). Example:

• In a bakery, mixing dough and baking bread is valuable time; waiting for ovens to preheat or clean moulds is non-valuable.
• A semiconductor factory’s valuable time includes wafer etching, while time spent aligning wafers in holders is non-valuable (but necessary).

4. Operating Time

Definition: The total time a resource runs, including valuable and non-valuable activities. Example:

• A bottling plant operates for 12 hours/day. If 1 hour is lost to minor stoppages (e.g., label jams), the operating time is 11 hours. Only 9 hours (filling bottles) might be valuable, while 2 hours are lost to adjustments.
• In a call center, operating time includes agents’ logged-in hours, but valuable time is only when interacting with customers.

Interconnection & Optimization

• Goal: Maximize valuable time by improving loading accuracy, reducing net time losses, and minimizing non-value activities.
• Example: A furniture factory reduces setup time (net time loss) by implementing SMED (Single-Minute Exchange of Dies), increasing valuable time for cutting wood. Better machine loading ensures saws are allocated to high-priority orders, boosting throughput.
• Metrics:

Manufacturers achieve leaner operations, lower costs, and higher customer satisfaction by focusing on these levers. For instance, Toyota’s production system emphasizes reducing non-valuable time (e.g., motion waste) while optimizing machine loading to match demand.

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