Production Per Hour (PPH)
What is PPH?
The full abbreviation of PPH is:
P= Production
P= Per (People)
H= Hour
Simply put, it means the number of products each person can produce per hour.
How to calculate PPH?
The formula to calculate the PPH of an shoe style is:
PPH = 3600/Total Standard Time
Here,
1 hour = 3600 seconds.
Total Standard Time = Total Basic Time * (1+Allowance Rate)
Allowance rate depends on the factory and how much they want to give as an allowance for workers. Usually, the range of this allowance is around 6-20%.
For example: If the XYZ style’s total basic time is 3700 seconds and the allowance rate is 8%, what is the PPH of the XYZ style?
First, we need to calculate the standard time for this style:
Standard Time=3700×(1+8%)=3700×1.08=3996s
PPH=3600/3996=0.90 pairs
To calculate the PPH of a production department, use below formula:
PPH=Actual Output/Total Working Hours
Where:
Actual output is the total output of a department (this can be measured over one day, one month, or one year, depending on the time duration you want to calculate the PPH).
Total Working Hours = Total People * Working Hours (total people include both direct and indirect personnel, measured over one day, one month, or one year, depending on the time duration you want to calculate the PPH).
For example, if the output of the sewing department is 20,000 pairs, total manpower is 3000, and the working hours are 10 hours. Find out the PPH of sewing department:
Total Working Hours=3000×10=30000hours
PPH=20000/30000=0.67
Using this formula, you can also find the PPH for other production departments as well as the whole factory.
Sometimes people get confused about finding the PPH of the cutting and stockfitting or bottom departments. In the cutting department, usually leather and different types of materials are cut. For this reason, people get confused about which output to use to find the PPH. Some factories choose leather output, while others use lasting. You can choose either output to find the PPH of the cutting department.
On the other hand, the PPH of the Stockfitting or Bottom department depends on the production line type. If the production line is long, meaning input material is at one end of the line and a complete outsole is produced, then use the outsole output to find the PPH of the Stockfitting or Bottom department. If the production line is divided into smaller lines, for example, roughing line, outsole attach line, insole packing line, etc., it can be difficult to find the exact outsole output. In this case, most factories use lasting output to find the PPH of the Stockfitting or Bottom department.