Managing Efficiency, Processes

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Managing Efficiency, Processes Productivity
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Work Study

• generic term for management services and system
  engineering techniques, used to investigate
• methods of performing work (method study) and
  improve its efficiency and economy
• the time taken to do it (work measurement) with a
  view to rationalization, routinisation,
  utilisation, cost and incentive improvement
• the worker-work system-technology relationship
  how this is best designed and improved
  (ergonomics and the human-machine-information
  interfaces)

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Productivity

• a measure of performance.
• broadly a ratio of output to input, i.e.
  comparing amount produced (output) with resources
  used (input)
• materials, machinery, labour, capital, energy
  --- a combination
• What improvements have there been over the last
  50 years in
• construction productivity
• payroll processing
• Car servicing
• banking
• How do we evaluate productivity levels and
  identify areas for improvement?

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A work study curriculum - 1

• historical development commitments of Work
  Study
• basic concepts, objectives and procedures
• Method Study approaches and tools of Method
  Analyst
• Flow Diagrams Process Charts etc
• Critical questioning techniques
• Work Measurement and calculating times for Jobs
• Defining job elements calculating
• performance rating and standard/basic times
• Determining allowances fatigue, unavoidable
  avoidable delays, extra allowances
• various incentive plans

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A work study curriculum - 2

• examining worker-machine relationships
• workload line balancing staff/machine
  inefficiencies
• material handling, human controls, tools and
  devices
• Workstation layout design (EU work-station
  directive)
• Occupation Health Safetysignals, reaction
  times, eyes, backs, RSI safety criteria,
  preventing accidents
• Ergonomics human-machine-environment interfaces
• use of visual displays for dynamic information
• Designing for lighting systems, industrial
  noise, thermal controls, vibration etc
• Systems analysis the human-machine information
  system
• data capture and processing
• design of the user interface
• Business process re-engineering (BPR)

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System relationships
Process analysis
Engineer workflows
Design work station information arrangements
Method study
Plant layout
Jobs
Time study
Work breakdowns
Incentive rewards
standard times
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Nature of the Theory

• organised common sense, human ingenuity
  creation of tools
• functional and assumed to be neutral/unemotional
• critical questioning taking nothing for granted
• focus on efficiencies, utilisation and costs
• predictability and control over quality
• maximise use (utilisation) of compliant labour
  capital - unit costing
• machine economic man vs. social/sentient

Separation of worker from means of production
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Opposition to Work Study

• All work is different - idiographic vs/
  nomothetic
• Large firm/employer and large engineered systems
  only
• Work study is obsolete
• It is exploitative of workers
• It has never been and never will be accepted here

Is this so? What is the evidence of work study in
the world around you
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Pioneers of efficiency measurement systems

• Gunpowder manufacture
• Chinese ceramics industry
• Adam Smith observations of French - pin making
• Pioneers of agrarian and industrial revolutions
• Abraham Derby Josiah Wedgwood
• Madame Guillotine, Springfield Rifle
• F W Taylor at Bethlehem Steel work
• Henry Gantt
• Frank and Lillian Gilbreth
• Time and motion study
• Charles Bedaux
• Work measurement

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Methods, times and systems for performance

• improve methods - get it right
• Method study
• O M Ergonomics
• Industrial systems engineering
• define maintain work standards
• incentive schemes e.g. piece work measured day
  work
• human-computer interface systems analysis
  design
• rationalisation, automation substitution of
  machine technologies for people

Braverman and de-skilling in the labour process
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Method study

• Select job/process to be examined observe
  current performance
• high process cost, bottlenecks, tortuous route,
  low productivity, erratic quality
• Record document facts
• activities performed
• operators involved - how etc
• equipment and tools used
• materials processed or moved
• apply critical examination - challenge job
  components necessity (purpose, place, sequence,
  method).
• develop alternative methods present proposals
• document as base for new work system
• Install, monitor (slippage) maintain

Process re-engineering? Risk assessment for
safety?
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ASME Symbols and Process Charting
Operation
Move
Delay
Store
Inspect/ process
Decision
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Traditional OM critical examination questions

• Purpose
• What, Why, What else might Should be done ?
• Place
• Where, Why, Where else Where should it be done
  ?
• Sequence
• When, Why then, When else could When should ?
• People
• Who, Why, Who else might should do it?
• Method
• How, Why, How else could, How else should

• a sound reason for every activity
• no assumptions so double check
• quality, safety and health must not compromised

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Other types of process modelling

• multiple activity charts
• string diagrams
• 3-dimensional models
• recording methods - video,etc
• computer-based modeling

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Measuring Work

• Why define/measure work?
• standard, reliable methods
• control performance quality
• obtain predictability
• defined labour costs performance
• set pay rates provide data for effort-reward
  relationship
• Why set standard times
• assumptions about competent, motivated workers
• be clear about "allowances" fatigue

• Toyota Avensis 10000 mile service
• MOT testing
• Service times queue management
• Banks
• Airline check-in
• Call centres
• Out-sourcing service level agreements
• Work-load balancing
• Work related bonuses

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Work Measurement

• techniques to establish the time for a qualified,
  motivated worker to carry out a task at a
  defined rate of working.
• time Study
• establish standard times - management knowledge
• rate operator performance - criteria for
  appraisal
• gather information to calculate production
  capabilities data for capacity planning.
• define/cost work content of finished goods and
  services e.g. for charging estimating

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A Time Study

• select job identify the work tasks
• check the method - is it efficient/agreed?
• start a Time Study sheet break work task into
  "units"
• several times with a stop watch for a sample of
  workers, time measure
• completion times for each unit of work in the job
  sequence
• average for each worker
• determine apply worker effort rating for each
  worker (BSI scale)
• Apply fatigue, personal other allowances
• From the observation data (worker average times)
  calculate standard time for the task
• Assumes set sequence, routine work cycle (all
  workers), little discretion, 100 effort rating -
  trained/qualified, motivated/committed, working
  at normal pace not fatigued
• Fix standard time and enter into measured work
  manual/database

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Example standard time calculation
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Incentive Schemes

• What are incentives?
• Effort-reward relationships
• Economic orientation motivation
• Time rates of pay assumptions/requirements
• Piecework
• Measured day work
• Group Schemes
• Incentive scheme problems
• Criticism and prevalence

• cost savings ?
• economy of operation ?
• easily understood ?
• maintain safety standards ?
• equitable to all ?
• control and improve effectiveness standards ?
• common goal ?

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Process Analysis and BPR

• Management services business process
  re-engineering
• how work is done data for planning, staffing
  control functions.
• applied across a wide range of industrial/commerci
  al activity manufacturing, office, service
  industries, facilities layout, materials
  handling, logistics, IT and IS
• Identify process components interrelationships
  (inputs, processes/transformations, rules,
  outputs, interfaces
• break down the process into its logical sub
  processes (work breakdown structure)
• map using
• process flow charts etc
• describe the business process jobs at sub
  process levels
• document for capacity planning, quality (zero
  defects process orientation, inspection),
  operator intervention, safety, accounting/cost,
  planned maintenance, JIT purposes

Clearly represented in the development and
adoption of on-line computer systems
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From Work Study to Systems Analysis and Design
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Analysis, Design, Build Projects
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System Development Costs
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Modelling the Information System
Our 'model' of the information system

• Requirements
• information processing functions
• data to store

Input - triggers activities
Output to activities which use the processed
information
Data items
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Data Flow Modelling (DFDs)

• Data flows across the system boundary within
  the system
• Processes (functions that process data)
• Data stores
• Sources/sinks (external entities)
• Functional decomposition (levels
  modularisation)
• Do not show
• Time (when things happen sequence)
• Decisions (see process specification)
• System boundary
• Diagrams - better than narrative
• CASE tools to draw and record details

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Context DFD - Level 0
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Level 1 DFD
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DFDs - Levelling
Consistency of data flows between levels. Are
the diagrams consistent?
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Logical Data Modelling

• data captured by the system
• Analyse the data entities, attributes and
  relationships
• Entitiesthings (physical or conceptual) of
  interest that the system needs to store
  information about.
• AttributesThe data items stored in each
  occurrence of an entity
• Relationshipshow the data in one entity may be
  related (for functional purposes) to another)
• Create database schema for developers and DB
  managers
• system processes use the data - jobs,
  calculations, reports
• maintain the access rules, security and integrity
  of the data

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Events acting on data
applies
interviewed
final accept/reject
enrols/pays
assessed
graduates
leaves

• Identify all processes
• Map against the LDM
• Data updates
• Referential integrity validation
• Menus, screens, reports

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Example Dabbs plc

• Customers place sales orders
• A single order may contain several products
• Each customer is in one of 500 areas
• Each customer is serviced by one of 6 depots
• Each customer is allocated a depot depending on
  their area location
• All products are stocked at all depots

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Entity occurrence - 1

• Entity Footballer
• Occurrence David Beckham
• Attributes
• DOB, height, weight, position, skills, goals
  scored, next of kin, address, salary, contract
  dates, sending-offs, number of international caps
• Relationships with
• Games, team sheets, payments, club TV
  appearances, insurance policies, contracts,
  agents, injuries, treatments

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Entity occurrence - 2

• Entity Patient
• Occurrence Chris Woodhead
• Attributes
• Name, age, address, NHS number, allergies,
  next-of-kin, medical conditions, treatments,
  private health care
• Relationships with
• Treatments, appointments, medical conditions,
  allergies, GP, clinics, medical staff, private
  health payments