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Process Analysis, Job Design, and Work Measurement

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Title: Process Analysis, Job Design, and Work Measurement


1
Process Analysis, Job Design, and Work Measurement
  • Selected Slides from Jacobs et al, 9th Edition
  • Operations and Supply Management
  • Chapter 6 and 6A
  • Edited, Annotated and Supplemented by
  • Peter Jurkat

2
Process Analysis Terms
6-2
  • Process Is any part of an organization that
    takes inputs and transforms them into outputs
  • Cycle Time Is the average successive time
    between completions of successive units
  • Utilization Is the ratio of the time that a
    resource is actually activated relative to the
    time that it is available for use

3
Process FlowchartingDefined
6-3
  • Process flowcharting is the use of a diagram to
    present the major elements of a process
  • The basic elements can include tasks or
    operations, flows of materials or customers,
    decision points, and storage areas or queues
  • It is an ideal methodology by which to begin
    analyzing a process

4
6-4
Flowchart Symbols
Purpose and Examples
Examples Giving an admission ticket to a
customer, installing a engine in a car, etc.
Examples How much change should be given to a
customer, which wrench should be used, etc.
5
6-5
Flowchart Symbols
Purpose and Examples
Examples Sheds, lines of people waiting for a
service, etc.
Examples Customers moving to a seat, mechanic
getting a tool, etc.
6
Process Flowcharting
6-6
  • Process flowcharting is the use of a diagram to
    present the major elements of a process
  • The basic elements can include tasks or
    operations, flows of materials or customers,
    decision points, and storage areas or queues
  • It is an ideal methodology by which to begin
    analyzing a process

7
6-7
8
6-8
Process Architecture
push
pull
9
In-process-inventory
6-9
  • A buffer refers to a storage area (in-process
    inventory) between stages where the output of a
    stage is placed prior to being used in a
    downstream stage

10
6-10
Step 1 ? Buffer ? Step 2 Example
Now you/we do 6.8
11
Other Process Terminology
6-11
  • Blocking
  • Occurs when the activities in a stage must stop
    because there is no place to deposit the item
    just completed
  • If there is no room for an employee to place a
    unit of work down, the employee will hold on to
    it not able to continue working on the next unit
  • Fix with buffer?
  • Starving
  • Occurs when the activities in a stage must stop
    because there is no work
  • If an employee is waiting at a work station and
    no work is coming to the employee to process, the
    employee will remain idle until the next unit of
    work comes
  • Fix with pull system?

12
Other Process Terminology (Continued)
6-12
  • Bottleneck
  • Occurs when the limited capacity of a process
    causes work to pile up or become unevenly
    distributed in the flow of a process
  • If an employee works too slow in a multi-stage
    process, work will begin to pile up in front of
    that employee. In this is case the employee
    represents the limited capacity causing the
    bottleneck.
  • Pacing
  • Refers to the fixed timing of the movement of
    items through the process

Now you do 6.9
13
Other Types of Processes
6-13
  • Make-to-order (pull)
  • Only activated in response to an actual order
  • Both work-in-process and finished goods inventory
    kept to a minimum
  • Make-to-stock (push)
  • Process activated to meet expected or forecast
    demand
  • Customer orders are served from target stocking
    level

14
6-14
Measuring Process Performance
Throughput time can also be estimated by Littles
Law (time) Work-in-process inventory (units)
/throughput rate (units/time) Now you do 6.10
15
Cycle Time Example
6-15
  • Suppose you had to produce 600 units in 80 hours
    to meet the demand requirements of a product.
    What is the cycle time to meet this demand
    requirement?

Answer There are 4,800 minutes (60 minutes/hour
x 80 hours) in 80 hours. So the average time
between completions would have to be Cycle time
4,800/600 units 8 minutes.
Now you do 6.4 and 6.5
16
What is Job Design?Defined
6A-16
  • Job design is the function of specifying the work
    activities of an individual or group in an
    organizational setting
  • The objective of job design is to develop jobs
    that meet the requirements of the organization
    and its technology and that satisfy the
    jobholders personal and individual requirements

17
Job Design Decisions
6A-17
18
Trends in Job Design
  • Quality control as part of the worker's job
  • Cross-training workers to perform multi -skilled
    jobs
  • Employee involvement and team approaches to
    designing and organizing work
  • "Informating sic ordinary workers through
    e-mail and the Internet
  • Extensive use of temporary workers
  • Automation of heavy manual work
  • Creating alternative workplaces
  • Shared offices
  • Tele-commuting
  • Virtual offices
  • Organizational commitment to providing
    meaningful and rewarding jobs for all employees

19
Physical Considerations in Job Design
6A-19
  • Work physiology sets work-rest cycles according
    to the energy expended in various parts of the
    job. The harder the work, the more the need for
    rest periods.
  • Ergonomics is a term used to describe the study
    of the physical arrangement of the work space
    together with tools used to perform a task. Fit
    the work to the body rather than forcing the body
    to conform to the work.

20
Work Measurement Defined
6A-20
  • Work measurement is a process of analyzing
    jobs for the purpose of setting time
    standards
  • Why use it?
  • Schedule work and allocate capacity
  • Motivate and measure work performance
  • Evaluate performance
  • Provide benchmarks

21
Time Study Normal Time Formulas
6A-21
  • Normal time(NT)Observed performance time per
    unit x (Performance rating)
  • The Performance Rating is usually expressed in
    decimal form in these formulas. So a person
    working 10 faster than normal would have a
    Performance Rating of 1.10 or 110 of normal
    time. Working 10 slower, 0.90 or 90 of normal.
  • NT Time worked _ x
    (Performance rating) Number of units
    produced

22
Time Study Standard Time Formulas
6A-22
  • Standard time Normal time (Allowances x
    Normal times)
  • Allowances add time for breaks, fatigue,
    equipment maintenance and/or failure
  • Standard time NT(1 Allowances)
  • Standard time NT .
  • 1 - Allowances

23
Time Study Example Problem
6A-23
  • The employee produced 20 units of product in an 8
    hour day.
  • Your observations made the employee nervous -
    estimate employee worked 10 percent faster than
    normal.
  • Allowances for the job represent 25 percent of
    the normal time.
  • Question What are the normal and standard times
    for this job?

24
Time Study Example Solution
6A-24
  • Normal time Time worked
    x (Perf. rating) Number of
    units produced
  • (480 minutes/20) x (1.10)
  • 26.4 minutes
  • Standard time NT .
  • 1 Allowances
  • (26.4)/(1-0.25)
  • 35.2 minutes

25
6A-25
26
Work Sampling
6A-26
  • Time studies make workers nervous often
    restricted by unions
  • Better to use inference to make statements about
    work activity based on a sample of the activity
    use statistical methods (select confidence,
    calculate sample size, observe, analyze)
  • Ratio Delay
  • Activity time percentage for workers or equipment
    (portion of time work is actually done value
    added)
  • Performance Measurement
  • Relates work time to output (performance index)
  • Time Standards
  • Standard task times

27
Advantage of Work Sampling over Time Study
  • Several work sampling studies may be conducted
    simultaneously by one observer
  • The observer need not be a trained analyst unless
    the purpose of the study is to determine a time
    standard
  • No timing devices are required
  • Work of a long cycle time may be studied with
    fewer observer hours
  • The duration of the study is longer, which
    minimizes effects of short-period variations
  • The study may be temporarily delayed at any time
    with little effect
  • Because work sampling needs only instantaneous
    observations (made over a longer period), the
    operator has less chance to influence the
    findings by changing work method
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