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Unit 1 Introduction to Principles and Techniques of Scientific management Introduction Concept and technique of management is long being used. Industrial revolution: Theory, principle and practice of management has expand slowly and systematically until industrial revolution occurred in 18th century. In 19th century, more sophisticated management approach is needed. Scientific management pioneer started to seek new methods to manage work force and improve productivity in industry. Around year 1910, Fredrick W. Taylor is belief as a pioneer by most management expert researcher. He study work study and time study concept. Other researchers are like Hendry L. Gantt who invent scheduling table (Gantt Chart), F.W. Harris inventory control while in 1930s, Shewart Dodge & Romig who construct quality control process concept which is still used nowadays. Management definition Management can be defined as the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. Definition given by Mary Parker Folett is management as an art to achieve work through human. Activities that includes in management field Activities Planning Organizing Directing/Lead ing Coordinating Explanations Looks forward and specify what actions to be taken Put every actions based on priority Gives instructions on how any actions should be done Ensure that actions chain and person in charge in good condition

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Controlling

Follows properly every actions done to ensure its done according to plan

Scientific Management Introduction Scientific management (also called Taylorism, the Taylor system, or the Classical Perspective) is a theory of management that analyzes and synthesizes workflow processes, improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911). Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work. (Rule-of-thumb : A means of estimation
made according to a rough and ready practical rule, not based on science or exact measurement)

Definition Scientific management is any form of activities that can give satisfaction to the users when consumes products or services thats form by using economical techniques thats based on systematical science facts and principles. General approach 1. 2. 3. 4. Develop a standard method for performing each job Select workers with appropriate abilities for each job Train workers in the standard method previously developed Support workers by planning their work and eliminating interruptions. 5. Provide wage incentives to workers for increased output Steps in using scientific management approach in management are as follows: i. ii. iii. iv. Expand science in every operation and substitute it from opinion and estimation To ensure the precise way of working and time taken from science Prepare an organization that is suitable to take responsible from workers except the real works situation Choose and train workers

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v.

Ready to accept that management can be expand in every operations

Four Scientific Management Principles introduced by Frederick Winslow Taylor: 1. The development of science for each element of a mans work to replace the old rule-of-thumb methods. 2. The scientific selection, training and development of workers instead of allowing them to choose their own tasks and train themselves as best they could. 3. The development of a spirit of hearty cooperation between workers and management to ensure that work would be carried out in accordance with scientifically devised procedures. 4. The division of work between workers and the management in almost equal shears, each group taking over the work for which it is best fitted instead of the former conditioned in which responsibility largely rested with the workers. Self-evident in this philosophy are organizations arranged in a hierarchy, systems of abstract rules and impersonal relationships between staff. The advantages of scientific management i. Rational approach in organizing works so that works and processes can be measure precisely ii. Work and process measurement can give important information so that it can be used as the based in improving work methods, plant design etc iii. To increase productivity by improving/enhancing work methods. iv. Contributing big changes in physical working situations for workers v. Payment or incentives can be given to workers The disadvantages of scientific management i. Can create havoc among the workers because of the organizational and load analysis on individual works or operation. ii. Neglect of actual wage offering because every work is measured and calculated scientifically. Industrial management Definition Industrial management can be defined as the branch of engineering that deals with the creation and management of systems that integrate people and materials and energy in productive ways.

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The importance of Industrial Management A production manager or operation manager in a factory needs to : i. Make decision what material to order, the quantity and when is needed. ii. What product to be produced when and how many. iii. Determine workers tasks, its numbers and train workers. iv. Determine the quality level and its performance. v. Determine the inventory of needed materials. vi. Make sure production equipment in good condition and production not interrupted. Productivity Concept Productivity is the quantitative relation between what we produce and what we use as are source to produce them. Productivity can be expressed as: Productivity = input Productivity refers to the efficiency of the production system. It is the concept that guides the management of production system. It is an indicator of how well the factors of production (land, capital, labor and energy) are utilized Definitions of Productivity 1. Productivity is a function of providing more and more of everything to more and more people with less consumption of resources. 2. The volume of output attained in a given period time in relation of the sum of the direct and indirect efforts expended in its production. 3. Productivity is the measure of how well the resources are brought together in an organization and utilized for accomplishing a set of objectives. 4. Productivity is concerned with establishing congruency between organizational goals with societal aspirations through input-output relationship. 5. Productivity is the multiplier effect of efficiency and effectiveness. Factors influencing Productivity Factors influencing productivity can be classified broadly into TWO categories: i. Controllable or internal factors ii. Non-controllable or external factors
output

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Controllable or internal factors 1. Product factor: In terms of productivity means the extent to which the product meets output requirement. 2. Plant and equipment: These play a prominent role in enhancing the productivity. The increase availability of the plant through proper maintenance and reduction of idle time increase the productivity. Productivity can be increased by paying proper attention to utilization, age, modernization, cost, investment etc. 3. Technology: Innovative and latest technology improves productivity to a greater extent. Automation and information technology helps to achieve improvements in material handling, storage, communication system and quality control. The various aspects of technological factors to be considered are: i. Size and capacity of the plant ii. Timely supply and quality of inputs iii. Production planning and control iv. Repairs and maintenance v. Waste reduction vi. Efficient material handling system 4. Material and energy: Efforts to reduce materials and energy consumption brings about considerable improvement in productivity. The factors that are to be considered are: i. Selection of quality material and right material. ii. Control of wastage and scrap. iii. Effective stock control. iv. Development of sources of supply. v. Optimum energy utilization and energy savings. 5. Human factors: Productivity basically dependent upon human competence and skill. Ability to work effectively is governed by various factors such as education, training, experience aptitude etc. of the employees. Motivation of the employees will influence productivity. 6. Work methods: Improving the way in which the work is done (methods) improves productivity. Work study and industrial engineering techniques and training are the areas which improve the work methods which in term enhances productivity. 7. Management of style: This influence the organizational design, communication in organization, policy and procedures. A flexible and dynamic management style is better approach to achieve higher productivity. Non-controllable or external factors

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1. Social changes such as womens participation in the labor force, education, cultural values, attitudes are some of the factors that play a significant role in the improvement of productivity. 2. Natural resources: Manpower, land and raw materials are vital to the productivity improvement. 3. Government and infrastructure: Government policies and programs are significant to productivity practices of government agencies, transport and communication power, fiscal policies (interest rates, taxes) influence productivity to the greater extent.

Increasing productivity An organization productivity can be increased through FIVE methods: i. Penetapan output dan pengurangan input organisasi ii. Fix the input and increase the output iii. Increase input but the increase of output rate is higher. iv. Output decrease but the rate of input decrease is higher. v. Output increase but input decrease. Productivity Measurement 1. Single-factor productivity

For example, if units produced = 2000 and labor-hours used is 400, then,

Example: Determine the productivity for these cases:

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i. ii.

Four workers installed 720 square yards of carpeting in eight hours A machine produced 68 usable pieces in two hours

Solution:

2. Multifactor Productivity

Multifactor productivity includes all inputs (e.g., capital, labor, material, energy). Multifactor productivity is also known as total factor productivity. Multifactor productivity is calculated by combining all the input units as shown below:

i.

P ro P ro

Example:

ADS Limited want to valuing their productivity by comparing this year achievement with past year achievement. Data below shows the company achievement. Does ADS Limited have improved its productivity?

ii.

Solution:
10500units RM 12000 + RM 7500 + RM 83000 12000units RM 12300 + RM 8400 + RM 88000

2008 Productiv