PRODMAN- WORK SYSTEMS Methods Analysis- analyzing how a job gets done.

It begins with an analysis of the

overall operation then moves from gen to specific details of the job concentrating on:
Compensation approaches  Workplace arrangement
 Time-based systems  Movement of workers and/or materials
 Output-based systems
 Incentive systems Flow process chart- chart used to examine the overall sequence of an operation by
 Knowledge-based systems focusing on movements of the operator or flow of materials.

Time-Based vs. Output-Based Systems Motion Study- systematic study of the human motions used to perform an operation. In
developing work methods that are motion efficient, the analyst attempts to:
 Eliminate unnecessary motions
 Combine activities
 Reduce fatigue
 Improve the arrangement of the workplace
 Improve the design of tools and equipment

Standard time- the amount of time it should take a qualified worker to complete a
specified task, working at a sustainable rate, using given methods, tools and equipment,
raw material inputs, and workplace arrangement.

Commonly used work measurement techniques

 Stopwatch time study
 Historical times
 Predetermined data
 Work sampling

Work Measurement Techniques

 Stopwatch Time Study- used to develop a time standard based on
observations of one worker taken over a number of cycles.
 Standard Elemental Times- derived from own historical time study data.
 Predetermined time standards- involve the use of published data on
standard elemental times.
Incentive Plan Success
 Work sampling- a technique for estimating the proportion of time that a
To obtain maximum benefit from an incentive plan, it should be
worker or machine spends on various activities and idle time.
1. Accurate
2. Easy to apply
3. Consistent LOCATION PLANNING
4. Easy to understand
5. Fair Location decisions are based on:
There should also be an obvious rel bet effort and reward, and no limit on earnings.  Profit potential or cost and customer service
 Finding a number of acceptable locations from which to choose
Job Design- the act of specifying the contents and methods of jobs  Position in the supply chain
 What will be done in a job  Web-based retail organizations are effectively location independent
 Who will do the job  Supply chain management issues such as supply chain configuration
 How the job will be done
 Where the job will be done Location Decision: General Procedure
Objectives 1. Decide on the criteria to use for evaluating location alternatives
 Productivity 2. Identify important factors, such as location of markets or raw materials
 Safety 3. Develop location alternatives
 Quality of work life a) Identify the country or countries for location
b) Identify the general region for location
Specialization- work that concentrates on some aspect of a product or service. c) Identify a small number of community alternatives
d) Identify the site alternatives among community alternatives
Advantages and Disadvantages of Specialization 4. Evaluate the alternatives and make a decision

Factors relating to foreign locations:

Teams
 Short-term team- formed to collaborate on a topic or solve a problem.
 Long-term teams
 Self-directed teams- groups empowered to make certain
changes in their work processes.

Ergonomics - the scientific discipline concerned with the understanding of interactions Factors in identifying a Region
among human and other elements of a system.  Locating near the raw materials
 Locating near of markets
Three domains of ergonomics  Distribution costs and perishability
 Physical- repetitive movements, layout, health, safety  Labor factors
 Cognitive- mental workload, decision making, HCI, and work stress  Other factors- Climate and taxes may play an important role in location
 Organizational- communication, teamwork, work design, and telework decisions
Location: Identifying a Community Total Quality Management- a philosophy that involves everyone in an organization in a
Many communities actively attempt to attract new businesses they perceive to be a continual effort to improve quality and achieve customer satisfaction.
good fit for the community. Businesses also actively seek attractive communities based
on such factors such as: Six Sigma- a business process for improving quality, reducing costs, and increasing
- Quality of life - Environmental regulations customer satisfaction
- Services - Utilities  Statistically- having no more than 3.4 defects per million
- Attitudes - Development support  Conceptually- Program designed to reduce defects. It requires the use of
- Taxes certain tools and techniques.

Location: Identifying a Site Quality Tools

Primary site location considerations are:  Flowcharts
 Land  Checksheets
 Transportation  Histograms
 Zoning  Pareto Analysis
 Other restrictions  Scatter Diagrams
 Control Charts
Service and Retail Locations  Cause-and-Effect Diagrams
Considerations:
 Nearness to raw materials is not usually a consideration QUALITY CONTROL
 Customer access is a
 Prime consideration for some: restaurants, hotels, etc. Quality of Conformance- a product or service conforms to specifications
 Not an important consideration for others: service call centers, Statistical Process Control is a tool used to help in this process:
etc.  Statistical evaluation of the output of a process
 Tend to be profit or revenue driven, and so are  Helps us to decide if a process is “in control” or if corrective action is
 Concerned with demographics, competition, traffic/volume needed
patterns, and convenience
Process Variability
Evaluating Location Alternatives  All processes generate output that exhibits some degree of variability
Common techniques:  The fundamental question: Is the variation within acceptable boundaries?
 Locational cost-volume-profit analysis
 Factor rating Control Chart
 Center of gravity method
 Transportation model Abnormal variation Out of
due to assignable causes control
Locational Cost-Profit-Volume Analysis- a technique for evaluating location choices in UCL
economic terms. Steps are:
1. Determine the fixed and variable costs for each alternative Normal
2. Plot the total-cost lines for all alternatives on the same graph variation
Mean
3. Determine the location that will have the lowest total cost (or highest due to
profit) for the expected level of output chance

LCL
Factor Rating- gen approach to evaluating locs that includes quanti and quali inputs. Abnormal
Procedure: variation
1. Determine which factors are relevant
2. Assign a weight to each factor that indicates its relative importance Control Charts for Variables
compared with all other factors. Variables generate data that are measure.
3. Decide on a common scale for all factors  Mean control charts- used to monitor central tendency of a process (X-bar
4. Score each location alternative charts)
5. Calculate weighted factor sum for each alternative  Range control charts- used to monitor the process dispersion (Range
6. Choose the alternative that has the highest composite score charts)

Center of Gravity Method- method for locating a distri center that minimizes distri costs Establishing Control Limits
 Treats distribution costs as a linear function of the distance and the
quantity shipped
 The quantity to be shipped to each destination is assumed to be fixed
 The method includes the use of a map that shows the locations of
destinations
 The map must be accurate and drawn to scale
 A coordinate system is overlaid on the map to determine relative locations

MANAGEMENT OF QUALITY

Quality- ability of a prod/service to consistently meet/exceed customer expectations.

X-Bar Chart: Control Limits
DETERMINANTS OF QUALITY
 Design
 Conformance to Design
 Ease of Use
 After-Sale Service

Costs of Quality
 Failure Costs- costs incurred by defective parts/products or faulty services.
 Appraisal Costs- costs designed to ensure quality or uncover defects
 Prevention Costs- All TQ training, TQ planning, customer assessment, Range Chart: Control Limits
process control, and quality improvement costs to prevent defects from
occurring.

Quality Awards and Certification

 Deming Prize- awarded to all who meet the criteria
 Malcolm Baldrige National Quality Award- competitive by nature
Quality Certifications
 ISO 9000
 ISO 14000
 ISO 24700