Work Systems and the Methods, Measurement, and Management of Work

by Mikell P. Groover, ISBN 0-13-140650-7.

2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Logistics Operations
Sections:
1. Introduction to Logistics
2. Transportation Operations
3. Material Handling
4. Analysis of Material Handling Operations
Chapter 5
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Four Categories of Workers
1. Logistics workers
Move things
Human components of logistics system
Logistic system = work system
2. Production workers
3. Service workers
4. Knowledge workers
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Introduction to Logistics
Origins in military science
Procurement, transportation, and
maintenance of military supplies,
equipment, and personnel
Business logistics
Acquisition, movement, storage, and
distribution of materials and products, as
well as the planning and control of these
operations to satisfy customer demand
May also involve movement of people
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Two Categories of Logistics
External logistics = transportation and related
activities that occur outside of a facility
Movement of materials between different
geographical locations
Five traditional modes of transportation: rail
truck, air, ship, and pipeline
Internal logistics = material handling and
storage within a facility
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Logistics Workers Job Titles
Transportation operations
Air traffic controller, bus driver, parcel
service dispatcher, railroad train conductor,
ship captain, teamster
Material transport in a facility
Airport baggage handler, crane operator,
forklift truck operator, material handler
Material storage
Crane operator in an AS/RS, inventory
control manager, order picker, shipping
clerk, tool crib stores clerk
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Work Activities
Various combinations of physical labor and
information processing
Physical labor
Moving materials, work-in-process, and
finished products
Information processing
Planning, coordinating, and controlling the
physical movement
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Importance of Logistics
Sometimes viewed as non-value-adding
By comparison, manufacturing and
assembly activities add value by physically
transforming materials
Logistics does not alter the product
However, logistics operations create a time
and place value for customers
Having the materials and products available
and getting them to customers when
needed or wanted
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Logistics Objectives - Metrics
Accuracy deliver exactly what the customer
orders
Availability have items in inventory when the
customer needs or wants them
Orders shipped complete - every item ordered
included in shipment
Speed of delivery time to delivery
Returns and error recovery how well are
these problems coped with
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Business Logistics Objectives
Provide a specified level of customer service
Deliver that level of service at the lowest
possible cost
Increased customer service means higher cost
Guaranteed availability for every item
means high inventory
Savings in inventory costs means higher
stock-out frequency
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
The Logistics System
Consists of five components:
1. Facilities production plants and storage
centers
2. Inventory raw materials, work-in-process,
finished products
3. Transportation and material handling means
of moving inventory
4. Information system integration function
5. Logistics workers - they make the system
work
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Supply Chains
Defined as the set of activities that is concerned
with the flow of materials and products from
raw materials through production and
distribution of finished goods to customers.
Supply chain management = the planning,
coordination, and administration of the flow of
materials and products in the supply chain
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Supply Chain
Block diagram depicting participants and activity
sequence in a supply chain
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Basic Logistics Functions
1. Procurement
Acquisition and movement of materials
from suppliers to manufacturing and/or
assembly plants
2. Logistical support for manufacturing
Making raw materials available for
processing and moving work-in-process
3. Distribution
Moving finished goods to customers
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Functions in Logistics Operations
Model indicating three functional areas in
logistics operations
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Warehousing
A warehouse is a facility for storing three types of
inventory:
1. Raw materials in the procurement process
2. Maintaining work-in-process for
manufacturing support
3. Making finished goods available for
distribution
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Warehousing Functions
1. Receive unload incoming materials, inspect
the materials, record receipt
2. Store put the materials into storage and
record the storage location
3. Pick (order picking) retrieve materials from
storage in response to customer orders
4. Ship pack materials for shipment and load
the carrier vehicle
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Distribution Center Operations
Different
combinations of
products are
shipped from
suppliers to
outlets through
the DC
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Improvements in Warehousing
Automated and mechanized storage systems
reduce labor costs, speed the storage and
retrieval of materials
Cross-docking incoming items are sorted and
shipped without being placed in storage
Warehouse management systems for
maintaining inventory records, managing
transportation operations, optimizing storage
locations, and reporting labor performance
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Transportation Operations
External logistics
Transportation expenses consume between
one-third and two-thirds of the total costs of
logistics
Freight transportation industry in the U.S.
represents approximately 6% of gross
domestic product
Approximately $500 billion
Work Systems and the Methods, Measurement, and Management of Work
by Mikell P. Groover, ISBN 0-13-140650-7.
2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved.
Five Basic Modes of Transportation
1. Rail
2. Truck
3. Air
4. Ship
5. Pipeline