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Chapter 1
Introduction
Definition, Business Process, Business Process Improvement, Business Process Reengineering-The
Need Of BPR
# Definition
Business process reengineering (BPR) is the analysis and redesign of workflow within and between
enterprises.
BPR is the fundamental rethinking and redesign of business processes to achieve dramatic improvements
in critical, contemporary measures of performance, such as cost, quality, service and speed.
BPR is not:
Automation
Downsizing
Outsourcing
# 7 principles of BPR:
Organize around outcomes, not tasks.
Identify all the processes in an organization and prioritize them in order of redesign urgency.
Integrate information processing work into the real work that produces the information.
Treat geographically dispersed resources as though they were centralized.
Link parallel activities in the workflow instead of just integrating their results.
Put the decision point where the work is performed, and build control into the process.
Capture information once and at the source.
# Steps to execute BPR:
Develop business vision and objectives of processes:
Objectives can be (i) Cost reduction (ii) Faster cycle time (iii) High quality output
Select the processes to be redesigned:
For this there are two approaches (i) The priority approach [i.e. it involves identification of all the
processes within an organization and then assignment of priority for redesign] and (ii) The critical
success approach [i.e. it involves redesign of processes which are critical to the success of the
organization].
Understand and measure the existing processes:
Use of Data Flow Diagrams [DFDs] and Entity Relationship [E-R] Diagram.
Redesign the processes and build a prototype of new processes:
Various tools can be used in redesigning the processes like Flow chart, Fishbone diagram, Control
charts, etc.
Continuous improvement KAIZEN:
It is not a one time affair we must focus on continuous improvement to cope with dynamic nature of
the globalization.
# Goals of BPR:
Customer friendliness:
Providing convenience
Effectiveness:
Time
Cost
Effort
# Challenges of BPR:
Identifying customer needs and performance problems in current process.
Reassessing the strategic goals of the organization.
Controlling risks.
Maximizing benefits.
Managing organizational changes.
Defining the opportunities for reengineering.
# Critical successful factors in BPR:
Cleat vision for transformation.
Top management commitment.
Ambitious BPR team.
Engaging external consultant.
Tolerance of genuine failures.
Change management.
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# Critical failure factors in BPR:
Trying to fix a process instead of changing.
Lack of focus on business critical processes.
Quitting too early.
Dominance of existing corporate culture.
Adopting bottom-up approach.
Poor leadership.
# Business Process
A business process can be defined as a set of logically related tasks performed to achieve a defined
business outcome.
# Types of business process:
Inter organizational processes:
Takes place within the organization but across several functions or divisions in the organization.
Inter personal processes:
Are those which involve tasks within and across the small work groups within the organization.
# Types of business process: (also)
Management process:
These are process that governs the operation. Typically management process includes Corporate
Governance and Strategic Management.
Operational process:
These processes create the primary value streams that are part of the core business.
These supports the core processes. Examples include accounting, recruitment, IT support, etc.
# Business Process Improvement (BPI)
BPI is a process of developing and implementing incremental improvements for a process. It is a systematic
approach to help any organization make significant changes in the way it does business. The goal of BPI is a radical
change in the performance of an organization rather than a series of incremental changes.
Vision of Business Process Improvement:
Increase efficiency
Improve customer service
Reduce costs
Share data and information
Use of IT at right place at right time
Reduce duplicates, stove pipe systems
# Process of BPI or Continuous Process Improvement:
Documentin
g process
Establish
measures
Follow
process
Measure
performanc
e
Identify &
implement
improveme
nt
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buying actors may have the same or different ideas about what constitute these order winners, and they may also
differ in their evaluation of the competitive strengths of a firm. Analyses the selling and buying actors perceptions
of order winners and competitive strengths as the degree of fit between these perceptions. A good fit means that
the two actors agree on order winning criteria and the firms competitive strength on these criteria. It is expected
that a good fit relates to a positive sales growth of the selling firms product.
The criteria can be:
Registered company.
Legally exist.
Quality declaration.
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# Re-engineering model:
Strategic business planning
Concepts of operations
Scoping and redesign effort
Assessment of the AS-IS process
Gathering data from customers and
stakeholders
Benchmarking best practices in related
processes
Reengineering and design of the TO-BE
process
Develop business case
Develop implementation plan
Prototyping and system development
Implementations integration and system
migration
Education and communication
Evaluation and reassessment
BPI cycle
Chapter 3
Change Management
Change Management From Different Perspective, Critical Elements Of Change Management
# Change Management From Different Perspective
Change management is a process of planning, coordinating, and implementing changes to the information
processing, production, distribution, and system facilities.
Business
Context
Current
State
Organizati
on And
People
Processes
Change
Management
Desired
State
Technology
# Top 10 mistakes made by top managers while implementing change:
Failed to provide visible support and reinforce the change with other managers.
Did not take the time to understand how current business processes would be affected by change.
Delayed decision making, which leads to low morale and slow project progress.
Were not directly or actively involved with change project.
Failed to anticipate the impact on employees.
Underestimate the time and resources needed.
Abdicated ownership of the project to another manager.
Failed to communicate both the business reasons for the change and the expected outcome to employees
and other managers.
Changed the project direction mid-stream.
Did not set clear directions and objectives for the project.
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Adoption
Installation
+ve Perception
Understanding
the Change
Awareness of
Change
Contact
Tim
e
# Critical Elements Of Change Management
Change plan
Commitment
Commitment
Institutionalizati
on
Acceptance
Preparation
Internalization
Sustainable Levels
Strong Commitment
Commitment
Model
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Chapter 4
Quality Management
Defining Quality, TQM, TQM Tools, Process Capability, Statistical Process Control
# Defining Quality
Quality is the degree, to which the design specifications for a product or service are appropriate to its
function and use, and the degree to which a product or service conforms to its design specification.
# Dimension of quality:
Performance
Durability
Features
Aesthetics
Serviceability
Perceived quality
Reliability
Conformance
# Total Quality Management (TQM)
T Made up of the whole
Q Degree of excellence a product or service provides
M Act, art or manner of planning, controlling, and directing
Therefore, TQM is the art of managing the whole to achieve excellence.
In other words, Total Quality Management means that the organization's culture is defined by and supports
the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training.
This involves the continuous improvement of organizational processes, resulting in high quality products and
services.
# Dimension of TQM:
Dimension of TQM
Quality culture
Quality strategy
Quality improvement
Quality tools
# TQM
Supporting resources
Business excellence model, team building, etc
ISO 9000
Continuous improvement
Cause & effect analysis, brainstorming, process mapping, quality function
deployment, etc
components:
Planning
Implementation
Monitor and control
Is a statistical indicator that measures how close a process is running to its specifications limit.
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Measures of how well a given process is functioning.
Is dependent on a calculation of the total probability of defects reflected through sort-term variation
generally expressed.
implementation requirements:
Top management commitment
Project champion
Initial workable project
Employee education and training
Accurate measurement system
Chapter 5
Product Design And Development
Product Life Cycle, Product Design Process, Concurrent Engineering, Quality Function Deployment,
Value Analysis, Product Design In Service Sectors
# Product Life Cycle
Product life cycle is an attempt to recognize distinct stages in the sales history of a product.
Product life cycle shows the stages that products go through from development to withdrawal from the
market.
# Product Design Process
Step 1 Idea Development
Final design based on test results, facility, equipment, material, & labour skills defined, suppliers
identified
# Concurrent Engineering (CE)
CE is a systematic approach to creating a product design that considers all elements of the product life
cycle from conception through disposal. CE defines simultaneously the product, its manufacturing processes, and
all other required life-cycle processes, such as logistic support. CE is not the arbitrary elimination of a phase of the
existing, sequential, feed-forward engineering process, but rather the co-design of all desired downstream
characteristics during upstream phases to produce a more robust design that is tolerant of manufacturing and use
variation, at less cost than sequential design.
# Quality Function Deployment (QFD)
QFD is a planning tool which:
Translates customer needs into appropriate product development requirements.
Identifies the significant items on which to focus time, product improvement efforts, and other resources.
QFD is not:
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QFD
CUSTOMER
SATISFACTION
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# Value Analysis
Value analysis is:
An organized effort directed at analyzing the functions of systems, products, specification standards,
practices, and procedures for the purpose of satisfying the required function at the lowest total cost of
effective ownership consistent with the requirements for performance, reliability, quality, and
maintainability.
The organized use of methodologies that focus on the functions of materials, processes, or services in
providing value to the customers.
# Product Design In Service Sectors
Product design in service sectors means designing service which is different from designing product since
services are intangible and they cannot be stored for future use.
According to James Heskett, designing service involves following four steps:
Identification of target markets:
Who are the employees and what should be their skills and ability?
# New service development process:
The new service development process can be viewed as a cycle of activities as depicted below. The
development and analysis stages represent the planning phase where the strategic fit and market viability are
determined. The design and full launch stages represent the implementation phase.
Full launch
Developme
nt
Formulation of strategies
Idea generation & screening
Concept development
People
Servic
Technolog
Design
Syste
Analysis
Business analysis
Project authorization
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Chapter 6
Process Analysis & Design And Capacity Planning
Classification Of Process, Process Analysis, Process Selection, Selection Of Equipment And
Technology, Strategy Capacity Management, Some Quantitative Tools For Capacity Planning Process
Analysis In Service Sectors, JIT, Lean Production
# Classification Of Process
A process is a particular course of action intended to achieve a result.
Project
Batch
Mass
Continuous
Type of product
Unique
Made to order
Made to stock
Commodity
Type of customer
One at a time
Few individuals
Mass market
Mass market
Product demand
Infrequent
Fluctuate
Stable
Very stable
Demand volume
Very low
Low to medium
High
Very high
No. of different
products
Infinite variety
Many, Varied
Few
Very few
Production system
Repetitive, Assembly
lines
Continuous, Process
industries
Equipment
Varied
General purpose
Special purpose
Highly automated
Primary type of
work
Specialized contracts
Fabrication
Assembling
Mixing, Treating,
Refining
Worker skills
Limited range of
skills
Equipment monitors
Advantage
Flexibility,
Quality
Efficiency, Speed,
Low cost
Highly efficient,
Large capacity,
Ease of control
Disadvantages
Non-repetitive,
Small customer
base,
Expensive
Capital investment,
Lack of
responsiveness
Difficult to change,
Far reaching errors,
Limited variety
Examples
Construction, Ship
building, Space craft
Automobiles,
Television,
Computers, Fast food
Paint, chemicals,
Food stuffs
# Process Analysis
Process analysis is the systematic examination of a process to understand the process in order to develop
ideas for improvement of the process.
Process flow charts
Incorporates
Non productive activities (inspection, transportation, delay, storage)
Productive activities (operations)
Inspecti
on
Delay
Operation
s
Transportati
on
Storag
e
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Fig: Process flowchart symbols
# Principles of redesigning process:
Remove waste, simplify, and consolidate similar activities
Link processes to create value
Let the swiftest and most capable enterprise execute the process
Flex process for any time, any place, any way
Capture information digitally at the source and propagate it through process
Provide visibility through fresher and richer information about process status
Fit process with sensors and feedback loops that can prompt action
Add analytic capabilities to process
Connect, collect, and create knowledge around process through all who touch it
Personalize process with preferences and habits of participants
# Process strategy:
Capital intensity
Ease with which resources can be adjusted in response to changes in demand, technology, products or
services, and resource availability
Vertical integration
Extent to which firm will produce inputs and control outputs of each stage of production process
Customer involvement
Methodologies are general approaches to taking a large variety of problems. They are not aimed at
ways of selecting a particular process but at creating frameworks within which certain classes of
problems can be addressed. The intention is to guide the creation of procedures ensuring that all the
relevant aspects of selection are addressed.
Procedures:
Procedures can be considered as algorithms for tackling a set of related process selection problems.
They will content all the necessary steps and the appropriate tools for selecting a process in a given
situation. The way in which the procedure is actually used to carry out a selection will depend upon its
implementation. Implementations are usually software based, although they can be as simple as a
series of instructions and chart.
Tools:
It refers to the tools used in selection procedures. Examples include charts of properties, linear
regression analysis, etc. At the implementation stage it becomes to utilize more generic tools such as
expert systems.
# Selection Of Equipment And Technology
A technology decision is closely linked with the capacity and system maintenance areas. The technology
selection process will depend on the basis of strategy adopted by planners and on general trend in the
organization.
Factors that affects the selection of technology:
Technological factor:
Capital
Extension capacity
Competitive advantage
Environmental factor:
Seasonal variations
Resource protection
Legal framework
National strategy
Institutional setup
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Local economy
Users preference
Financial factor:
Capital/cost
Budget allocations
Local economy
A methodology for predicting the future impact of change. In IT, this usually means a tool that can map
the existing environment and demands, and then add to this the projected demand, resulting in a
picture of the resource demands expected.
Trending
A simpler way of looking at future growth, it assumes that growth rates in the past reflect growth rates
in the future. It generates a straight line into the future to determine growth. This technique is
generally used only when actual projections are not known.
Linear regression
A method for determining the relation between two (or more) metrics. Assuming that they are related,
an equation can be developed which explains this relationship, so you can figure out what the value of
one would be from the value of the other. Most methods for calculating linear regression will develop
an equation and a line, even if there is no relationship between the variables, so it is important to test
the relationship (correlation) before putting too much weight on the result.
Forecast
The process of estimating the unknown. Take all the data you can find about the subject, hopefully
leaving only one variable to estimate.
Workload characterization
This is the process of mapping IT processes and transactions to a business unit of work. In the past, a
CICS transaction often was the same thing as a business transaction, but now, as many business
applications span multiple platforms and IT applications, this exercise is necessary. The end user view
is critical in performance reporting, availability management and even chargeback.
# Steps in capacity planning:
Determine service level requirements:
Define workloads
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Ultimate
goal
Supporting
goal
A balanced
rapid flow
Eliminate
disruptions &
Make system
flexible
Product
design
Process
design
Eliminate waste
Personal
elements
Manfing
planning
Building
blocks
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JL
a
P
d
eT
n
r
Chapter 7
Operation Technology
The Internet, Design Technology, Production Technology, Technology In Service Sector, Benefits &
Shortcoming Of Investing New Technology, Enterprise Resource Planning, Management Information
System
# The Internet
An internet is a group of networks connected together. The internet refers to the global connection of
networks around the world. The internet is a world wide, publicly accessible network of interconnected computer
networks that transmits data by packet switching using the standard internet protocol (IP). It is a network of
networks that consists of millions of smaller domestic, academic, business, and government networks which
together carry information and services such as electronic mails, online chats, file transfer, and the interlinked
webpage and other documents of the World Wide Web.
The size, scope, and design of the internet allows user to:
Connect easily through ordinary personal computers and local phone numbers.
Exchange information using e-mails.
Access multimedia information that include sound, photographic images, and even videos.
Download information.
# Design Technology
Design technology will help:
Evaluate the viability of a design
Recommend appropriate development techniques
Propose appropriate manufacturing processes and systems
Propose appropriate quality assurance procedures in design and manufacture
Implement and evaluate technology in a business environment
Manage technology systems
Manage information systems
Specify and manage computer based resources
# Production Technology
Production technology includes:
Types of Automation
Automated Production Systems
Factories of the Future
Automation in Services
Automation Issues
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Decision Approaches
# Types of automation:
Machine Attachments one operation
Numerically Controlled (N/C) reads computer or tape inputs
Robots - simulates human movements
Automated Quality Control verifies conformance to specifications
Auto ID Systems - automatic acquisition of data
Automated Process Control adjusts processes per set parameters
Automated Flow Lines (Fixed Automation)
Groups of processes, arranged in sequence, connected by automated material transfer, and integrated
by a computer system
# Technology In Service Sectors
It is technology which establishes corporate direction and provides the framework for the identification,
implementation, operation, and maintenance of technologies used in the operation of the corporation facilities.
These technologies would include process control, electro-mechanical and electronics, telecommunications, etc.
Technology facilitates all service sectors like accounting, travel and tourism, engineering, photographic,
etc.
# Benefits & Shortcoming Of Investing New Technology
Benefits:
Easy diversification in business with established reputation and recognition of chaebols brand name.
Scope economies by synergy effects.
Scope economies by large size improvements in decision making by having cumulated knowledge and
experiences of many companies in a chaebol improvement in capturing new business opportunities with
vast knowledge in many fields of business.
Shortcoming:
Lack of business transparency.
High risks of business due to CEOs autocratic decision-making.
Increase in management cost due to the bureaucratic organization.
Inefficient resource allocation.
Delay of development in core capabilities.
# Enterprise Resource Planning (ERP)
ERP appeared in the 1970s as software modules that aimed to support business processes such as
production, inventory control, purchasing, enterprise data management, finances and other internal processes.
Several international Information Technology (IT) companies developed ERP software packages which shared
common databases and included several modules of ERP tasks. Over the last 20 years, a significant number of
companies all over the world started to apply ERP either in the form of simple small PC applications or in the form
of integrated ERP software packages with several modules.
ERP system integrates all activities and process of an organization into a unified system. The term ERP
originally implies system design to plan the use of enterprise wide resources. The ERP delivers the following
activities:
Production:
ERP applications for production were among the first that appeared and are based mainly on MRPII
(Manufacturing Resource Planning) methodology. MRPII is a descendant of MRP (Material Requirements
Planning) and was implemented through several modules concerning Master Production Scheduling (MPS),
Capacity Requirements Planning (CRP), Production Order Release, Operations Scheduling, Shop Floor
Control (SFC), Inventory Control, Purchasing, Production Data Management, etc.
Also in this category of ERP software, Computer Aided Design (CAD), Computer Aided Manufacturing (CAM)
and Computer Integrated Manufacturing (CIM) applications are included.
Sales & Marketing:
Sales ERP applications had software modules that aimed to support selling processes and transactions with
customers usually through Local Area Networks (LANs) and for large enterprises through Wide Area
Networks (WANs). The purpose of such applications was not only the invoice and receipt preparation but
also the entire processing of the customer order, from the time that the order was placed by the customer
until the shipment of the product and the invoice release.
On the other hand marketing applications were trying to utilize and process customer data and other
relevant information in an effort to support marketers at their work. Such applications can be compared
with todays CRM (Customer Relationship Management) and Data Mining e-marketing applications, but
they were less powerful, since less customer data was available particularly compared with the wealth of
customer data gathered today through Internet transactions.
Finance:
Financial ERP applications were one of the most important categories of ERP. Accounting and other financial
applications (like payrolls and costing) were the first ERP applications that appeared when computers were
first introduced in business. They support people in their calculations, work automation and provide
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storage for huge amounts of data. Today, financial applications are still among the most important ERP
applications and an effort is made to ensure good cooperation and integration with the other ERP functions.
Logistics:
Logistics ERP applications appeared more recently as separate applications, since initially the management
of the inventories and the purchasing were considered part of the production ERP modules. But after the
mid 1980s when the Japanese industries significantly reduced the cost of material handling by applying
new methods like Just-In-Time (JIT) and increased their competitiveness, American and European industries
started to concentrate more on the management and control of their logistics.
Human resources:
Initially human resources ERP applications were considered as part of production planning and financial
modules, where humans were considered as part of the processes, and their data, part of the enterprise
database. Today, since the human factor in the companies is thought one of the most important factors of
success in the business world, ERP software providers included modules for human resources
management. These modules extended applications for human resources focusing on human
improvement, satisfaction and cooperation. Principles of Total Quality are embodied in such applications
helping both humans and enterprises to become more efficient, to be satisfied and to achieve goals.
# Advantages of ERP:
Highly Graphics based User Interface.
Zero down time/planned down time.
Ready made solutions for most of the problems.
Integration of all functions ensured.
Easy enterprise wide information sharing.
Suppliers and Customers can have on-line communication.
Knowledge transfer between industries guarantees innovation.
Automatic adaptation to new technology.
# Management Information System (MIS)
In general term MIS is a computer system in an organization that provide information about its business
operations. Typically, it is also referred to as a central or centrally coordinated system of computer expertise and
management after including by extension the corporations entire network of computer resources. Thus, it is a
system that provides management with needed information on regular basis.
# Advantages of MIS:
Core competency support.
Enhanced distribution channel management.
Increased brand equity.
Boost production process.
Expand e-commerce.
Leverage stability.
Chapter 8
E-Commerce
Definition, Benefits And Limitations Of E-Commerce, E-Procurement
# Definition
E-Commerce, abbreviation for electronic commerce, usually defined as the conduct of business online, via
the Internet. Until recently, e-commerce was limited mainly to large companies and their suppliers, who connected
their computers together to speed up ordering and payment systems. Today, millions of people are involved in ecommerce on the Internet when, for example, they visit World Wide Web sites to buy books or CDs, order flowers
or pizzas, or check their bank accounts, etc. Thus, in short, e-commerce is the buying and selling of goods and
services on the internet, especially the World Wide Web.
# Benefits And Limitations Of E-Commerce
Benefits:
Increase sales
Decrease costs
Greater market coverage
24/7 transaction facility
Better inventory management
Effective customer relation management
Fast feedback from customers
Limitations:
Technical limitations:
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Some vendors require certain software to show features on their pages, which is not common in the
standard browser used by the majority.
Non-technical limitations:
Privacy issues
# E-Procurement
E-procurement (electronic procurement, sometimes also known as supplier exchange) is the B2B or B2C or
B2G purchase or sale of supplies. Typically, e- procurement websites allow qualified and registered users to look for
buyers or sellers of goods and services. Depending on the approach buyers or sellers may specify costs or invite
bids.
E-procurement is expected to be integrated with the trend toward computerized supply chain
management.
E-procurement is done with a software application that includes features for supplier management and
complex auctions. The new generation e-procurement is now on-demand or software-as-a-service.
# Types of E-procurement:
Web based ERP (Electronic Resource Planning):
Creating and approving purchase requisition, placing purchase orders, receiving goods and services etc
by using a software system based on the internet technology.
E-MRO (Maintenance, Repair and Operating supplies):
Same as web based ERP except that the goods and services ordered are non product related i.e. MRO
supplies.
E-Sourcing:
Identifying new suppliers for a specific category of purchasing requirement using internet technology.
E-Tendering:
Sending requests for information and prices to suppliers and receiving the responses of suppliers using
internet technology.
E-Reverse Auctioning:
Using internet technology to buy goods and services from a number of known and unknown suppliers.
E-Informing:
Gathering and distributing purchasing information both from and to internal and external parties using
internet technology.
E-Market sites:
Expands on web based ERP to open up value chains. Buying communities can access preferred
suppliers products and services, add to shopping carts, create requisition, seek approval, receipt
purchase orders, and process electronic invoices with integration to suppliers supply chains and buyers
financial systems.
Chapter 9
Reengineering And Humane Resources
Labor Planning, Job Design, Visual Workplace, Work Measurement
# Labor Planning
Labor planning or HR planning means forecasting the number and types of personnel whom the
organization will have to hire, train, and promote in a particular period in order to achieve its objectives, policies,
programs, and procedures.
What is workforce planning then?
At its simplest form it is ensuring that there would be: The right person
The right place
The right time
Accomplish aims of the organisation
No ONE workforce planning model
# Objectives/Benefits of labor planning:
Making optimum use of available talent.
At national level, it is needed for economic development.
It reduces labor cost.
Delays due to non availability of a particular type of labor can be avoided by planning for manpower in
advance.
Labor planning identifies gaps in existing labor so that suitable training programs may be arranged to
develop the skills required.
# Steps in labor planning:
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# Job Design
Job design is the process of linking specific tasks to specific jobs and deciding what techniques, equipment,
and procedures should be used to perform those tasks. It is also defined as the function of specifying the work
activities of an individual of group in an organizational setting. Job design helps to determine:
Scientific Management
Job Enlargement
Job Enrichment
More recent approaches:
Increasing the number of tasks a worker performs but keeping all of the tasks at the same level of
difficulty and responsibility; also called horizontal job loading.
Job rotation:
It moves employees from one place to another i.e. from one task to another.
Increasing a workers responsibility and control over his or her work; also called vertical job loading.
It allows employees to see how the work methods, layout, and handling procedure link together as well
as the interaction between people and machine.
# Goals of job design:
Task variety
Work breaks
Allowances for an adjustment period
Provide training
Vary mental activities
# Visual Workplace
Visual workplace means showing labor work, teaching a line or providing a place to post their workshops on
answer questions. A visual work place means showing the all operational activities in one place in increasing
efficiency to the labor.
# 5 pillars of visual workplace:
Sort means that you remove all items from the workplace that are not needed for current
Sort
production operations and add anything that is needed but is not there.
Set
In Set In Order means that you arrange needed items so that they are easy to use and label them so
Order
that anyone can find them and put them away.
Shine
Standardiz
Standardize is the result that exists when the first three pillars Sort, Set In Order, and Shine
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e
Sustain
Safety
&
Time study
It is a work measurement technique for recording the times and rates of working for the elements
of a specified job carried out under specified conditions in order to determine the time necessary to
carry out the job at a defined level of performance.
Activity sampling
It measures the percentage of the time and activity or delay occurs when a large no. of
observations are made at random intervals over a period of time for one group of machines,
processes, or workers. Each observations record what is happening at the particular instant and the
percentage for a particular activity or delay.
Pre-determination:
Analytical estimating
Here, the time of elements of a job at defined level of performance is estimated partly from
synthetic data and partly from knowledge and experience.
Comparative estimating
Here, the time for job is estimated by comparing the work in it with the work in a series of similar
jobs benchmarks the work contains of which has been measured.
Synthesis
It is a work measurement technique for building of the time for a job or parts of the jobs at defined
level of performance by summing up the elements times obtained previously from time studies on
other jobs containing the demand concerned or synthetic data.
THE END
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