Apurb Sinha Vibha Garg Executive PGDM (2010-
May 17, 2015
Apurb Sinha Vibha Garg
Executive PGDM (2010-11)
Organizational objective
• VFM for customers
• Improve overall productivity
Q : Quality S : Service R : Customer relationship P : Price L : Lead time
Output : Good or services
Input : Man, Machine, Material, Information, Capital
Technique of improving◦VFM◦Productivity
Major discipline of Industrial engineering
The systematic examination of the method of carrying on activities so as to improve the effective use of resources and to set up standards of performance for the activities being carried out.
Systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing cost
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
Improvement in use of all inputs Economy in human effort Layout improvement Improvement in design of plant and machinery Improvement in safety standards and
procedures Better working environment
Outline process chart Flow process chart Travel chart Multiple activity chart Data flow diagrams
High operating cost High wastage & scrap Excessive movement of materials and workmen Excessive production bottlenecks Excessive rejections and rework Complaints about quality Complaints about poor working condition Increasing number of accidents Excessive use of overtime
The application of technique designed to establish time for a qualified worker to carry out a task at a defined rate of working at a defined level of performance
Fair Day’s 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
Finding ineffective time in an activity Setting standards (norms) for output level Performance evaluation – capability management Capacity management Comparing work methods Scheduling – facility operations Establishing wage incentives schemes
Stop – watch time study Work sampling Predetermined times standards Standard data
Techniques to establish the time for a qualified, motivated worker to carry out a task at a defined rate of working
Example – Cricket pitch curator
One of the most common types of work measurement is time study
For example - PurposeAn international coffee shop chain may want to find out how long a barista should take to make a specific coffee drink. Some of the stated condition may include using cold milk that needs to be steamed, rather thanalready steamed milk.
Observations◦ A qualified practitioner should observe the employee using a time
measurement device. The observer should also assess the quality of work
Observed Person◦ The observed person in the time study must be fully trained in the
measured task
Employees are your company's life. Providing incentives for employees can boost productivity and confidence in the workplace, especially in a poor economy
Customers place pizzas orders A single order may contain several pizzas Each customer is in one of many service areas Each customer is serviced by one of 6 outlets Each customer is allocated an outlet depending on
their area location All pizzas are made at all outlets
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
Increased productivity and increased efficiency Reduced manufacturing costs Improved work place layout Better manpower planning and capacity planning Fair wages to employees Better working conditions for employees Improved workflow Reduced material handling costs Better industrial relations and employee morale Provides better job satisfaction to employees
Human capital managers Capability managers Capacity managers Project managers Consultants Leaders
F W Taylor(1856 – 1915)
◦Father of scientific measurements and IE
◦Criticism
Raising standards