Learning log 4 Chapter 10 Objectives 1.Describe labor planning policies 2.Identify the major issues in job design 3.

Identify major ergonomic and work environment issues 4.Use the tools of methods analysis 5.Identify four ways of establishing labor standards 6.Compute the normal and standard times in a time study 7.Find the proper sample size for a time study What Ive learned from this chapter. Human resource strategy Good human resource strategies are expensive and difficult to achieve and sustain. The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized. There are many constrains on human resource strategythe product mix, technology, equipment, and processes, the location decision, and layout decision. Three decision areas of human resource strategy: Labor planning, job design, and labor standards. Labor planning determining staffing policies that deal with employment stability, work schedules, and work rules. Employment-stability policies two basic policies First is to follow demand exactly and second is to hold employment constant Work schedules Flextime employees determine their own schedules within limits. Flexible workweek work fewer but longer days. Job design Five components: 1) Job (labor) specialization would assist in reducing labor costs of multiskilled artisans. Development of dexterity and faster learning Less loss of time Development of specialized tools 2) Job expansion Ways of modifying jobs Job enlargement Job rotation Job enrichment Employee empowerment

3) Psychological components Hawthorne studies Core job characteristics 4) Self-directed teams Limitations of job expansion 5) Motivation and incentive systems Ergonomics and the work environment Ergonomics study of the interface between humans, the environment, and machines. Also known as human factors Operator input to machines Feedback to operators The work environment Methods analysis involves developing work procedures that are safe and produce quality products efficiently. Focus in how a task is accomplished Flow diagramsschematics used to investigate movement of people or material. Process chartsuse symbols to help us understand the movement of people or material. Activity chartsused to study and improve the utilization if an operator and a machine or some combination of operators and machines. Operations chart depicts right and left hand motion. The visual workplaceuse low cost visual devices to share information quickly and accurately. It can eliminate non-value-added activities by making standards, problems, and abnormalities visual. Labor standards Effective operations management requires meaningful standards to help a firm to make decisions. Labor standards are set in four ways: Historical experience, time studies, predetermined time standards, and work sampling. Time studytimes a sample of a workers performance and using it as a basis for setting a standard time. Average observed timethe arithmetic mean of the times for each element measured, adjusted for unusual influence for each element. Average observed time=sum of the times recorded to perform each element/number of observations Chapter 11 Objectives Explain the strategic importance of the supply chain Identify six supply-chain strategies

Explain issues and opportunities in the supply chain Describe the steps in vendor selection Explain major issues in logistics management Compute the percentage of assets committed to inventory and inventory turnover What Ive learned in this chapter. The supply chains strategic Supply-chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them to customers. The objective is to build a chain of suppliers that focuses on maximizing value to the ultimate customer. Supply-chain risk Ethics and sustainability Ethics includes personal ethics, ethics within the supply chain, and ethical behavior regarding the environment. The institute for supply management has developed a set of principles and standards for ethical conduct. Supply-chain economics Make or buy decisiona choice between producing a component or service in-house or purchasing it from outside source. Outsourcingtransferring to external suppliers a firms activities that have traditionally been internal. Supply-chain strategies 1) Negotiating with many suppliers and playing one supplier against another 2) Developing long-term partnering relationships with a few suppliers 3) Vertical integrationdeveloping the ability to produce goods or services previously purchased or actually buying a supplier or a distributor. 4) Joint ventures 5) Developing keiretsu networks Keiretsu is a Japanese term that describes suppliers who become part of a company coalition. 6) Developing virtual companies that use suppliers on an as-needed basis Virtual companies are companies that rely on a variety of supplier relationships to provide services on demand. Also known as hollow corporations or network companies. Managing the supply chain Supply chain integration success begins with mutual agreement on goals, followed by mutual trust, and continues with compatible organizational cultures. Three issues that complicate the development of supply chain are local optimization, incentices, and large lots. E-procurementpurchasing facilitated through the internet.

Electronic data interchange (EDI)a standardized data-transmittal format for computerized communications between organizations. Advanced shipping notice (ASN)A shipping notice delivered directly from vendor to purchaser. Vendor selectiona three-stage process: vendor evaluation, vendor development, and negotiation. Negotiation strategiesapproaches taken by supply chain personnel to develop contractual relationships with suppliers. Three negotiation strategies are the cost-based price model, the market-based price model, and competitive bidding. Logistics managementan approach that seeks efficiency of operations through the intergration of all material acquisition, movement, and storage activities. Measuring supply chain performance Typical supply chain benchmark metrics include lead time, time spent placing an order, percent invested in inventory=total inventory investment/total assets Inventory turnovercost of goods sold divided by average inventory Inventory turnover=cost of goods sold/inventory investment Week of supply=inventory investment/(annual cost of goods sold/52 weeks) Supply chain operations reference (SCOR) Modela set of processes, metrics, and best practices developed by the supply chain council.