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Process Selection and Facility Layout
Chapter 6
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1
You should be able to:
LO 6.1 Explain the strategic importance of process selection
and the influence it has on the organization and its supply chain
LO 6.2 Name the two main factors that influence process
selection
LO 6.3 Compare the four basic processing types
LO 6.4 Explain the need for management of technology
LO 6.5 List some reasons for redesign of layouts
LO 6.6 Describe product layouts and their main advantages
and disadvantages
LO 6.7 Describe process layouts and their main advantages
and disadvantages
LO 6.8 Solve simple line-balancing problems
LO 6.9 Develop simple process layouts
Chapter 6: Learning Objectives
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Process selection
Refers to deciding on the way production of goods or services
will be organized
It has major implications for
Capacity planning
Layout of facilities
Equipment
Design of work systems
Process Selection
LO 6.1
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Process Selection and System Design
Forecasting
Product and
Service Design
Technological
Change
Capacity
Planning
Process
Selection
Facilities and
Equipment
Layout
Work
Design
LO 6.1
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Key aspects of process strategy:
Capital intensity
The mix of equipment and labor that will be used by the
organization
Process flexibility
The degree to which the system can be adjusted to changes in
processing requirements due to such factors as
Product and service design changes
Volume changes
Changes in technology
Process Strategy
LO 6.1
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Two key questions in process selection:
How much variety will the process need to be able to handle?
How much volume will the process need to be able to handle?
Process Selection
LO 6.2
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Job Shop
Repetitive
Batch
Continuous
Job ShopBatchRepetitive/
AssemblyContinuousDescriptionCustomized
goods or
servicesSemi-
standardized
goods or
servicesStandardized
goods or
servicesHighly standardized
Goods or servicesAdvantagesAble to handle a
wide variety
of workFlexibility; easy
to add or change products or servicesLow unit
cost, high volume, efficientVery efficient, very
high volumeDisadvantagesSlow, high cost
per unit,
complex
planning and
schedulingModerate cost
per unit,
moderate
scheduling
complexityLow flexibility,
high cost of downtimeVery rigid, lack of
variety, costly to change, very high cost of downtime
Types of Processing
LO 6.3
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Sustainable Production of
Goods and Services
There is increasing pressure for organizations to operate
sustainable production processes
According to the Lowell Center for Sustainable Production:
“Sustainable Production is the creation of goods and services
using processes and systems that are: non-polluting; conserving
of energy and natural resources; economically efficient; safe
and healthful for workers, communities, and consumers; and,
socially and creatively rewarding for all working people.”
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Process and Information Technology
Process and information technology can have a major impact on
costs, productivity and competitiveness:
Process technology
Methods, procedures, and equipment used to produce goods and
provide services
Information technology
The science and use of computers and other electronic
equipment to store, process, and send information
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Process technology and information technology can have a
profound impact on:
Costs
Productivity
Competitiveness
The Need to Manage Technology
LO 6.4
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Automation
Machinery that has sensing and control devices that enable it to
operate automatically
Fixed automation
Programmable automation
Flexible automation
Automation
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Programmable Automation
Programmable automation
Involves the use of high-cost, general-purpose equipment
controlled by a computer program that provides both the
sequence of operations and specific details about each operation
Computer-Aided Manufacturing (CAM)
The use of computers in process control, ranging from robots to
automated quality control
Numerically Controlled (N/C) Machines
Machines that perform operations by following mathematical
processing instructions
Robot
A machine consisting of a mechanical arm, a power supply, and
a controller
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Flexible Automation
Flexible automation
Evolved from programmable automation. It uses equipment that
is more customized than that of programmable automation. A
key difference between the two is that flexible automation
requires significantly less changeover time.
FMS (Flexible Manufacturing System)
A group of machines designed to handle intermittent processing
requirements and produce a variety of similar products
CIM (Computer Integrated Manufacturing)
A system for linking a broad range of manufacturing activities
through an integrated computer system
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Flexible Manufacturing System (FMS)
FMS
A group of machines designed to handle intermittent processing
requirements and produce a variety of similar products
Have some of the benefits of automation and some of the
flexibility of individual, or stand-alone, machines
Includes supervisory computer control, automatic material
handling, and robots or other automated processing equipment
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CIM
A system for linking a broad range of manufacturing activities
through an integrated computer system
Activities include
Engineering design
FMS
Purchasing
Order processing
Production planning and control
The overall goal of CIM is to link various parts of an
organization to achieve rapid response to customer orders
and/or product changes, to allow rapid production and to reduce
indirect labor costs
Computer Integrated Manufacturing (CIM)
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Facilities Layout
Layout
The configuration of departments, work centers, and equipment,
with particular emphasis on movement of work (customers or
materials) through the system
Facilities layout decisions arise when:
Designing new facilities
Re-designing existing facilities
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Inefficient operations
High cost
Bottlenecks
Accidents or safety hazards
Changes in product or service design
Introduction of new products or services
Changes in output volume or product mix
Changes in methods or equipment
Changes in environmental or other legal requirements
Morale problems
The Need for Layout Planning
LO 6.5
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Basic objective
Facilitate a smooth flow of work, material, and information
through the system
Supporting objectives
Facilitate product or service quality
Use workers and space efficiently
Avoid bottlenecks
Minimize material handling costs
Eliminate unnecessary movement of workers or material
Minimize production time or customer service time
Design for safety
Layout Design Objectives
LO 6.5
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Basic Layout Types
Product layouts
Process layouts
Fixed-position layout
Combination layouts
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Product layout
Layout that uses standardized processing operations to achieve
smooth, rapid, high-volume flow
Repetitive Processing: Product Layouts
Used for Repetitive Processing
Repetitive or Continuous
Raw materials
or customer
Finished item
Station
2
Station
3
Station
4
Material
and/or labor
Material
and/or labor
Material
and/or labor
Material
and/or labor
Station
1
LO 6.6
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Product Layouts: Advantages & Disadvantages
Advantages
High rate of output
Low unit cost
Labor specialization
Low material handling cost per unit
High utilization of labor and equipment
Established routing and scheduling
Routine accounting, purchasing, and inventory control
Disadvantages
Creates dull, repetitive jobs
Poorly skilled workers may not maintain equipment or quality
of output
Fairly inflexible to changes in volume or product or process
design
Highly susceptible to shutdowns
Preventive maintenance, capacity for quick repair and spare-
parts inventories are necessary expenses
Individual incentive plans are impractical
LO 6.6
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Process layouts
Layouts that can handle varied processing requirements
Non-repetitive Processing: Process Layouts
Used for Intermittent processing
Job Shop or Batch
Dept. A
Dept. B
Dept. D
Dept. C
Dept. F
Dept. E
LO 6.7
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Process Layouts: Advantages & Disadvantages
Advantages
Can handle a variety of processing requirements
Not particularly vulnerable to equipment failures
General-purpose equipment is often less costly and easier and
less costly to maintain
It is possible to use individual incentive systems
Disadvantages
In-process inventories can be high
Routing and scheduling pose continual challenges
Equipment utilization rates are low
Material handling is slow and inefficient
Reduced spans of supervision
Special attention necessary for each product or customer
Accounting, inventory control, and purchasing are more
involved
LO 6.7
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Fixed position layout
Layout in which the product or project remains stationary, and
workers, materials, and equipment are moved as needed
Fixed Position Layouts
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Combination Layouts
Some operational environments use a combination of the three
basic layout types:
Hospitals
Supermarket
Shipyards
Some organizations are moving away from process layouts in an
effort to capture the benefits of product layouts
Cellular manufacturing
Flexible manufacturing systems
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Service layouts can be categorized as: product, process, or fixed
position
Service layout requirements are somewhat different due to such
factors as:
Degree of customer contact
Degree of customization
Common service layouts:
Warehouse and storage layouts
Retail layouts
Office layouts
Service Layouts
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Cellular Layouts
Cellular production
Layout in which workstations are grouped into a cell that can
process items that have similar processing requirements
Groupings are determined by the operations needed to perform
the work for a set of similar items, part families, that require
similar processing
The cells become, in effect, miniature versions of product
layouts
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Group Technology
Group technology
The grouping into part families of items with similar design or
manufacturing characteristics
Design characteristics:
Size
Shape
Function
Manufacturing or processing characteristics
Type of operations required
Sequence of operations required
Requires a systematic analysis of parts to identify the part
families
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Service Layouts
Two key factors:
Customer contact
Degree of customization
Layouts:
Warehouse and storage layouts
Retail layouts
Office layouts
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The goal of a product layout is to arrange workers or machines
in the sequence that operations need to be performed
Designing Product Layouts:
Line Balancing
LO 6.8
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Line balancing
The process of assigning tasks to workstations in such a way
that the workstations have approximately equal time
requirements
Goal:
Obtain task grouping that represent approximately equal time
requirements since this minimizes idle time along the line and
results in a high utilization of equipment and labor
Why is line balancing important?
It allows us to use labor and equipment more efficiently
To avoid fairness issues that arise when one workstation must
work harder than another
Line Balancing
LO 6.8
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Cycle Time
Cycle time
The maximum time allowed at each workstation to complete its
set of tasks on a unit
Cycle time also establishes the output rate of a line
LO 6.8
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The required number of workstations is a function of
Desired output rate
Our ability to combine tasks into a workstation
Theoretical minimum number of stations
How Many Workstations Are Needed?
LO 6.8
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Precedence Diagram
Precedence diagram
A diagram that shows elemental tasks and their precedence
requirements
LO 6.8
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Assigning Tasks to Workstations
Some heuristic (intuitive) rules:
Assign tasks in order of most following tasks
Count the number of tasks that follow
Assign tasks in order of greatest positional weight
Positional weight is the sum of each task’s time and the times of
all following tasks
LO 6.8
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Balance delay (percentage of idle time)
Percentage of idle time of a line
Efficiency
Percentage of busy time of a line
Measuring Effectiveness
LO 6.8
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Designing Process Layouts
The main issue in designing process layouts concerns the
relative placement of the departments
Measuring effectiveness
A major objective in designing process layouts is to minimize
transportation cost, distance, or time
LO 6.9
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Information Requirements
In designing process layouts, the following information is
required:
A list of departments to be arranged and their dimensions
A projection of future work flows between the pairs of work
centers
The distance between locations and the cost per unit of distance
to move loads between them
The amount of money to be invested in the layout
A list of any special considerations
The location of key utilities, access and exit points, etc.
LO 6.9
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Distance between locations in metersToABCFromA2040B30C
Process Layout ProblemInterdepartmental work flows (loads per
day)To123From13017021003
LO 6.9
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Process Layout Problem (cont.)
A
B
C
1
2
3
30
170
100Dept.LoadsLocationDistance (meters)Load Distance Score1
to 2170A to B20170 x 20 = 3,4001 to 330A to C4030 x 40 =
1,2002 to 3100B to C30100 x 30 = 3,000Total7,600
LO 6.9
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Work Design and Measurement
Chapter 7
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6-‹#›
You should be able to:
LO 7.1 Explain the importance of work design
LO 7.2 Compare and contrast the two basic approaches to job
design
LO 7.3 Discuss the advantages and disadvantages of
standardization
LO 7.4 Describe behavioral approaches to job design
LO 7.5 Discuss the impact of working conditions on job
design
LO 7.6 Compare the advantages and disadvantages of time-
based and output-based pay systems
LO 7.7 Explain the purpose of methods analysis and describe
how methods studies are performed
LO 7.8 Describe four commonly used techniques for motion
study
LO 7.9 Define a standard time
LO 7.10 Describe and compare time study methods and
perform calculations
LO 7.11 Describe work sampling and perform calculations
LO 7.12 Compare stopwatch time study and work sampling
Chapter 7: Learning Objectives
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6-‹#›
Job Design
Job design
The act of specifying the contents and methods of jobs
What will be done in a job
Who will do the job
How the job will be done
Where the job will be done
Importance
Organization’s are dependent on human efforts to accomplish
their goals
Many job design topics are relevant to continuous and
productivity improvement
Objectives
Productivity
Safety
Quality of work life
LO 7.1
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Efficiency vs. Behavioral Job Design
Efficiency School
Emphasizes a systematic, logical approach to job design
A refinement of Frederick Winslow Taylor’s scientific
management concepts
Behavioral School
Emphasizes satisfaction of needs and wants of employees
LO 7.2
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Specialization
Specialization
Work that concentrates on some aspect of a product or service
AdvantagesFor management:
Simplifies training
High productivity
Low wage costsFor employees:
Low education and skill requirements
Minimum responsibility
Little mental effort neededDisadvantagesFor management:
Difficult to motivate quality
Worker dissatisfaction, possibly resulting in absenteeism, high
turnover, disruptive tactics, poor attention to qualityFor
employees:
Monotonous work
Limited opportunities for advancement
Little control over work
Little opportunity for self-fulfillment
LO 7.3
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Behavioral Approaches to Job Design
Job Enlargement
Giving a worker a larger portion of the total task by horizontal
loading
Job Rotation
Workers periodically exchange jobs
Job Enrichment
Increasing responsibility for planning and coordination tasks,
by vertical loading
LO 7.4
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6-‹#›
Motivation
Motivation is a key factor in many aspects of work life
Influences quality and productivity
Contributes to the work environment
Trust is an important factor that affects motivation
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Teams
Teams take a variety of forms:
Short-term team
Formed to collaborate on a topic or solve a problem
Long-term teams
Self-directed teams
Groups empowered to make certain changes in their work
processes
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Benefits of teams
Higher quality
Higher productivity
Greater worker satisfaction
Team problems
Some managers feel threatened
Conflicts between team members
Teams
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Quality of Work Life
Quality of work life affects not only workers’ overall sense of
well-being and contentment, but also their productivity
Important aspects of quality of work life:
How a worker gets along with co-workers
Quality of management
Working conditions
Compensation
LO 7.5
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Compensation
It is important for organizations to develop suitable
compensation plans for their employees
Compensation approaches
Time-based systems
Output-based systems
Incentive systems
Knowledge-based systems
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Time-based system
Compensation based on time an employee has worked during the
pay period
Output-based (incentive) system
Compensation based on amount of output an employee produced
during the pay period
Compensation Systems
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Comparing Compensation
ApproachesManagementWorkerTIME-BASED
AdvantagesStable labor costs
Easy to administer
Simple to compute pay
Stable OutputStable pay
Less pressure to produce than under output
systemDisadvantagesNo incentive for workers to increase
outputExtra efforts not rewardedOUTPUT-BASED
AdvantagesLower cost per unit
Greater outputPay related to efforts
Opportunity to earn moreDisadvantagesWage computation more
difficult
Need to measure output
Quality may suffer
Difficult to incorporate wage increases
Increased problems with schedulingPay fluctuates
Workers may be penalized because of factors beyond their
control (e.g., machine breakdown)
LO 7.6
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Individual incentive plans
Straight piecework
Worker’s pay is a direct linear function of his or her output
Minimum wage legislation has reduced their popularity
Base rate + bonus
Worker is guaranteed a base rate, tied to an output standard,
that serves as a minimum
A bonus is paid for output above the standard
Group incentive plans
Tend to stress sharing of productivity gains with employees
Individual and Group Incentive Plans
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Knowledge-based pay
A pay system used by organizations to reward workers who
undergo training that increases their skills
Three dimensions:
Horizontal skills
Reflect the variety of tasks the worker is capable of performing
Vertical skills
Reflect the managerial skills the worker is capable of
Depth skills
Reflect quality and productivity results
Knowledge-Based Pay Systems
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Management Compensation
Many organizations used to reward managers based on output
New emphasis is being placed on other factors of performance
Customer service
Quality
Executive pay is increasingly being tied to the success of the
company or division for which the executive is responsible
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Methods Analysis
Analyzing how a job gets done
It begins with an analysis of the overall operation
It then moves from general to specific details of the job
concentrating on
Workplace arrangement
Movement of workers and/or materials
Methods Analysis
LO 7.7
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6-‹#›
The need for methods analysis can arise from a variety of
sources
Changes in tools and equipment
Changes in product design or introduction of new products
Changes in materials and procedures
Government regulations or contractual agreements
Accidents or quality problems
The Need for Methods Analysis
LO 7.7
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Methods Analysis Procedure
Identify the operation to be studied, and gather relevant data
Discuss the job with the operator and supervisor to get their
input
Study and document the present methods
Analyze the job
Propose new methods
Install the new methods
Follow up implementation to assure improvements have been
achieved
LO 7.7
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6-‹#›
Consider jobs that:
Have a high labor content
Are done frequently
Are unsafe, tiring, unpleasant, and/or noisy
Are designated as problems
Quality problems
Processing bottlenecks
etc.
Guidelines for Selecting a Job to Study
LO 7.7
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Analyzing the Job: Flow Process Charts
Flow process chart
Chart used to examine the overall sequence of an operation by
focusing on movements of the operator or flow of materials
LO 7.7
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Analyzing the Job: Worker-Machine Chart
Worker machine chart
Chart used to determine portions of a work cycle during which
an operator and equipment are busy or idle
LO 7.7
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Motion study
Systematic study of the human motions used to perform an
operation
Motion Study Techniques
Motion study principles– guidelines for designing motion-
efficient work procedures
Analysis of therbligs– basic elemental motions into which a job
can be broken down
Micromotion study– use of motion pictures and slow motion to
study motions that otherwise would be too rapid to analyze
Charts– activity or process charts, simo charts (simultaneous
motions)
Motion Study
LO 7.8
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Developing Work Methods
In developing work methods that are motion efficient, the
analyst attempts to
Eliminate unnecessary motions
Combine activities
Reduce fatigue
Improve the arrangement of the workplace
Improve the design of tools and equipment
LO 7.8
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Work Measurement
Work measurement is concerned with how long it should take to
complete a job.
It is not concerned with either job content or how the job is to
be completed since these are considered a given when
considering work measurement.
LO 7.9
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Work Measurement
Standard time
The amount of time it should take a qualified worker to
complete a specified task, working at a sustainable rate, using
given methods, tools and equipment, raw material inputs, and
workplace arrangement.
Commonly used work measurement techniques
Stopwatch time study
Historical times
Predetermined data
Work sampling
LO 7.9
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Stopwatch Time Study
Used to develop a time standard based on observations of one
worker taken over a number of cycles.
Standard Elemental Times
are derived from a firm’s own historical time study data.
Predetermined time standards
involve the use of published data on standard elemental times.
Work sampling
a technique for estimating the proportion of time that a worker
or machine spends on various activities and idle time.
Work Measurement Techniques
LO 7.10
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Stopwatch Time Study
Used to develop a time standard based on observations of one
worker taken over a number of cycles.
Basic steps in a time study:
Define the task to be studied and inform the worker who will be
studied
Determine the number of cycles to observe
Time the job, and rate the worker’s performance
Compute the standard time
LO 7.10
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The number of observations to collect is a function of
Variability of the observed times
The desired level of accuracy
Desired level of confidence for the estimated job time
Number of Cycles to Observe
LO 7.10
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Observed Time
LO 7.10
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Normal Time
Assumes that a single performance rating has been made for the
entire job
LO 7.10
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Normal Time
Assumes that performance ratings are made on an element-by-
element basis
LO 7.10
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Standard Time
LO 7.10
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Historical Times
Standard Elemental Times are derived from a firm’s own
historical time study data.
Over time, a file of accumulated elemental times that are
common to many jobs will be collected.
In time, these standard elemental times can be retrieved from
the file, eliminating the need to go through a new time study to
acquire them.
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
6-‹#›
Predetermined time standards involve the use of published data
on standard elemental times.
Developed in the 1940s by the Methods Engineering Council.
The MTM (methods-time-measurement) tables are based on
extensive research of basic elemental motions and times.
To use this approach, the analyst must divide the job into its
basic elements (reach, move, turn, etc.) measure the distances
involved, and rate the difficulty of the element, and then refer
to the appropriate table of data to obtain the time for that
element
Predetermined Time Standards
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
6-‹#›
Work sampling is a technique for estimating the proportion of
time that a worker or machine spends on various activities and
the idle time.
Work sampling does not require timing an activity or involve
continuous observation of the activity
Uses:
ratio-delay studies which concern the percentage of a worker’s
time that involves unavoidable delays or the proporti on of time
a machine is idle.
analysis of non-repetitive jobs.
Work Sampling
LO 7.11
Copyright ©2018 McGraw-Hill Higher Education
6-‹#›
Work Sampling
LO 7.11
Copyright ©2018 McGraw-Hill Higher Education
6-‹#›
Work Sampling vs. Stopwatch Time
StudiesAdvantagesObservations are spread out over a period of
time, making results less susceptible to short-term fluctuations
There is little or no disruption of work
Workers are less resentful
Studies are less costly and less time-consuming, and the skill
requirements of the analyst are much less
Studies can be interrupted without affecting the results
No timing device is required
It is well suited for nonrepetitive tasksDisadvantagesThere is
much less detail on the elements of a job
Workers may alter their work patterns when they spot the
observer, thereby invalidating the results
In many cases, there is no record of the method used by the
worker
Observers may fail to adhere to a random schedule of
observations
It is not well suited for short, repetitive tasks
Much time may be required to move from one workplace to
another and back to satisfy the randomness requirement
LO 7.12
Copyright ©2018 McGraw-Hill Higher Education
6-‹#›
Job Design Success
Success factors:
Carried out by personnel with appropriate training and
background
Consistent with the goals of the organization
In written form
Understood and agreed to by both management and employees
Copyright ©2018 McGraw-Hill Higher Education
6-‹#›
It is important to make design of work systems a key element of
strategy:
People are still at the heart of the business
Workers can be valuable sources of insight and creativity
It can be beneficial to focus on quality of work life and
instilling pride and respect among workers
Companies are reaping gains through worker empowerment
Operations Strategy
Copyright ©2018 McGraw-Hill Higher Education
6-‹#›
time
Cycle
day
per
time
Operating
rate
Output
=
rate
output
Desired
day
per
time
Operating
time
Cycle
=
å
å
=
=
=
s
task time
of
Sum
stations
of
number
minimum
l
theoretica
where
time
Cycle
min
min
t
N
t
N
stations
of
number
Actual
where
100
time
Cycle
cycle
per
time
Idle
Delay
Balance
=
´
´
=
actual
actual
N
N
Delay
Balance
-
100%
Efficiency
=
mean
Sample
error
acceptable
Maximum
percentage
accuracy
Desired
deviation
standard
Sample
confidence
desired
for
needed
stddev.
normal
of
#
where
or
2
2
=
=
=
=
=
÷
ø
ö
ç
è
æ
=
÷
ø
ö
ç
è
æ
=
x
e
a
s
z
e
zs
n
x
a
zs
n
ns
observatio
of
Number
times
recorded
of
Sum
time
Observed
OT
where
OT
=
=
=
=
å
å
n
x
n
x
i
i
rating
e
Performanc
PR
time
Normal
NT
where
PR
OT
NT
=
=
´
=
(
)
j
j
x
x
j
j
j
j
element
for
rating
e
Performanc
PR
element
for
time
Average
time
Normal
NT
where
PR
NT
=
=
=
´
=
å
on workday
based
percentage
Allowance
1
1
AF
time
job
on
based
percentage
Allowance
1
AF
and
factor
Allowance
AF
time
Standard
ST
where
AF
NT
ST
day
job
=
-
=
=
+
=
=
=
´
=
A
A
A
A
size
Sample
size
sample
by the
divided
s
occurrence
of
number
(the
proportion
Sample
ˆ
confidence
desired
achieve
to
needed
deviations
standard
of
Number
)
ˆ
1
(
ˆ
=
=
=
-
=
n
p
z
n
p
p
z
e
percent
error
maximum
)
ˆ
1
(
ˆ
2
=
-
÷
ø
ö
ç
è
æ
=
e
p
p
e
z
n
MGT-530: Operation Management (Processes, Facilities, and
Work Systems) Module 07
Regulations:
· GRADING EXPECTATIONS :
1. I recommend that you use the grading rubric to shape your
work product (Attached).  
2. With respect to grading, The instructor really looks for 2
things: citations and substance. I encourage you to include cites
and information from scholarly and/or peer-reviewed sources in
addition to the course text (Stevenson, W. (2018). Operations
management (13th ed.). New York, NY: McGraw-Hill Irwin.
ISBN-13:9781259667473)
Otherwise, my potential for points is reduced. It  indicates you
have read the course materials and searched far and wide for
theories, statistics, and facts to address the issue at hand. I
encourage you to paraphrase these sources. Convert the content
into your own words rather than using direct quotes. This
improves the synthesis of information, and it makes the writing
more closely resemble your own style. 
In addition to scholarly citations, a substantive assignment is
one that not only answers the question but advances the
discussion. Please, do more than is expected.
· The writer must apply APA style guidelines.
· Support your submission with:
1. Course material concepts, principles, and theories from the
textbook and Use it in the references (Stevenson, W. (2018).
Operations management (13th ed.). New York, NY: McGraw -
Hill Irwin. ISBN-13:9781259667473)
2.  At least Three scholarly, peer-reviewed journal articles such
as:
2.1 Rezagholi, M. (2019). Demands for multidimensional
information on the work environment: A methodological
framework for regular studies. Work, 63(1), 9–20.
2.2 Korkulu, S., & Bona, K. (2019). Ergonomics as a social
component of sustainable lot-sizing: A review. Periodica
Polytechnica: Social and Management Sciences, 27(1), 1–8.
2.3 Beke, E., Horvath, R., & Takacs-Gyorgy, K. (2020).
Industry 4.0 and Current Competencies. Our Economy (Nase
Gospodarstvo), 66(4), 63–70. https://doi.org/10.2478/ngoe-
2020-0024
· Be 2 pages in length, does not include the title page, abstract,
conclusion and required reference page, which are never a part
of the minimum content requirements.
Processes, Facilities, and Work Systems
Business processes are important to communicate an
organization’s best practices as they leverage themselves
against competitors. Some benefits of business processes are
that in the long run gains may be realized in cost reduction,
meeting customers’ expectations, and streamlining business
operations. Business process management then focuses on a
workflow that may hinder good performance.
Address the following requirements:
1. Identify a business process for which there is not yet a
workflow diagram, explain the situation, and devise a workflow
to address the problem
2. Defend your workflow and identify any areas of concern that
may hinder successful implementation and a proposed remedy to
that concern.
Thank you for your support
MGT
-
5
30
:
Operation Management
(
Processes, Facilities, and Work Systems
)
Module 0
7
Regulations
:
·
GRADING EXPECTATIONS
:
1.
I recommend that you use the grading rubric to shape your work
product (
Attached
).
2.
With respect to
grading, The instructor really looks for 2 things:
citations
and substance
. I
encourage you to include cites and information from
scholarly and/or peer
-
reviewed sources in
addition to the course text
(
Stevenson
, W. (2018). Operations management (13th ed.). New
York, NY: McGraw
-
Hill Irwin. ISBN
-
13:9781259667473)
Otherwise
, my
potential for points is reduced. It
indicates you have read the course materials
and searched far and wide for theories, statistics, and facts
to address the issue at hand.
I encourage
you to paraphrase these sources. Convert the content into your
own wor
ds rather than using direct
quotes
. This improves the synthesis of information, and it makes the
writing more closely resemble
your own style.
In addition to
scholarly citations, a substantive assignment is one that not only
answers the
question but adv
ances the discussion. Please, do more than is expected.
·
The writer must apply
APA style guidelines
.
·
Support your submission with:
1.
Course material concepts, principles, and theories from the
textbook and
Use
it in the
references
(Stevenson, W. (2018). Operations management (13th ed.). New
York, NY:
McGraw
-
Hill Irwin. ISBN
-
13:9781259667473)
2.
At least
Three
scholarly, peer
-
reviewed journal articles such as:
2.1
Rezagholi, M. (2019). Demands for multidimensional
information on the
work
environment: A methodological framework for regular studies.
Work, 63(1), 9
–
20.
2.2
Korkulu, S., & Bona, K. (2019). Ergonomics as a social
component of sustainable lot
-
sizing: A review. Periodica Polytechnica: Social and
Management Sciences, 27(1), 1
–
8.
2.3
B
eke, E., Horvath, R., & Takacs
-
Gyorgy, K. (2020). Industry 4.0 and Current
Competencies. Our Economy (Nase Gospodarstvo), 66(4), 63
–
70.
https://doi.org/10.2478/ngoe
-
2020
-
0024
·
Be
2
pages
in length,
does not include the title
page, abstract, conclusion and
required
reference page,
which are never a part of the minimum content requirements.
MGT-530: Operation Management (Processes, Facilities, and
Work Systems)
Module 07
Regulations:
NS :
1. I recommend that you use the grading rubric to shape your
work product (Attached).
2. With respect to grading, The instructor really looks for 2
things: citations and substance. I
encourage you to include cites and information from scholarly
and/or peer-reviewed sources in
addition to the course text (Stevenson, W. (2018). Operations
management (13th ed.). New
York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473)
Otherwise, my potential for points is reduced. It indicates you
have read the course materials
and searched far and wide for theories, statistics, and facts to
address the issue at hand. I encourage
you to paraphrase these sources. Convert the content into your
own words rather than using direct
quotes. This improves the synthesis of information, and it
makes the writing more closely resemble
your own style.
In addition to scholarly citations, a substantive assignment is
one that not only answers the
question but advances the discussion. Please, do more than is
expected.
The writer must apply APA style guidelines.
1. Course material concepts, principles, and theories from the
textbook and Use it in the
references (Stevenson, W. (2018). Operations management (13th
ed.). New York, NY:
McGraw-Hill Irwin. ISBN-13:9781259667473)
2. At least Three scholarly, peer-reviewed journal articles such
as:
2.1 Rezagholi, M. (2019). Demands for multidimensional
information on the work
environment: A methodological framework for regular studies.
Work, 63(1), 9–20.
2.2 Korkulu, S., & Bona, K. (2019). Ergonomics as a social
component of sustainable lot-
sizing: A review. Periodica Polytechnica: Social and
Management Sciences, 27(1), 1–8.
2.3 Beke, E., Horvath, R., & Takacs-Gyorgy, K. (2020).
Industry 4.0 and Current
Competencies. Our Economy (Nase Gospodarstvo), 66(4), 63–
70.
https://doi.org/10.2478/ngoe-2020-0024
conclusion and required
reference page, which are never a part of the minimum content
requirements.
SEU Discussion Board Rubric
Meets
Expectation
Approaches
Expectation
Below
Expectation
Limited
Evidence
No
Evidence
Content, Research, and Analysis
2 Points 1.5 Points 1 Point .5 Points 0 Points
Content Meets Expectation
- Demonstrates
excellent
knowledge of
concepts, skills,
and theories
relevant to topic.
Approaches
Expectation -
Demonstrates fair
knowledge of
concepts, skills,
and theories.
Below Expectation
- Demonstrates
significantly flawed
knowledge of
concepts, skills,
and theories.
Limited Evidence -
Demonstrates poor
or absent
knowledge of
concepts, skills,
and theories.
No Evidence - Did
not participate.
2 Points 1.5 Points 1 Point .5 Points 0 Points
Support Meets Expectation
- Statements are
well supported;
posts extend
discussion.
Approaches
Expectation -
Statements are
partially
supported; posts
may extend
discussion.
Below Expectation
- Support is
deficient; posts do
not extend
discussion.
Limited Evidence -
Statements are not
supported
No Evidence - Did
not participate.
2 Points 1.5 Points 1 Point .5 Points 0 Points
Writing
Quality
Meets Expectation
- Writing is well
organized, clear,
concise, and
focused; no errors.
Approaches
Expectation - Some
significant but not
major errors or
omissions in
writing
organization,
focus, and clarity.
Below Expectation
- Numerous
significant errors
or omissions in
writing
organization,
focus, and clarity.
Limited Evidence -
Numerous errors
or omissions—at
least some
major—in writing
organization,
focus, and clarity.
No Evidence - Did
not participate.
2 Points 1.5 Points 1 Point .5 Points 0 Points
Timelines
s
Meets Expectation
- Initial post made
before deadline.
Approaches
Expectation - Initial
post made 1 day
late.
Below Expectation
- Initial post 2 days
late.
Limited Evidence -
Initial post 3 days
late.
No Evidence - Did
not participate.
2 Points 1.5 Points 1 Point .5 Points 0 Points
Quantity Meets Expectation
- Initial post and
two other posts of
substance.
Approaches
Expectation - Initial
post and one other
post of substance.
Below Expectation
- Initial post only.
Limited Evidence -
One post of
substance to
colleagues.
No Evidence - Did
not participate.
Total Points Possible: 10

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Process Selection and Facility LayoutChapter 6Copyright ©201

  • 1. Process Selection and Facility Layout Chapter 6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› 1 You should be able to: LO 6.1 Explain the strategic importance of process selection and the influence it has on the organization and its supply chain LO 6.2 Name the two main factors that influence process selection LO 6.3 Compare the four basic processing types LO 6.4 Explain the need for management of technology LO 6.5 List some reasons for redesign of layouts LO 6.6 Describe product layouts and their main advantages and disadvantages LO 6.7 Describe process layouts and their main advantages and disadvantages LO 6.8 Solve simple line-balancing problems LO 6.9 Develop simple process layouts Chapter 6: Learning Objectives Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
  • 2. written consent of McGraw-Hill Education 6-‹#› Process selection Refers to deciding on the way production of goods or services will be organized It has major implications for Capacity planning Layout of facilities Equipment Design of work systems Process Selection LO 6.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process Selection and System Design Forecasting Product and Service Design
  • 3. Technological Change Capacity Planning Process Selection Facilities and Equipment Layout Work Design LO 6.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Key aspects of process strategy: Capital intensity The mix of equipment and labor that will be used by the organization
  • 4. Process flexibility The degree to which the system can be adjusted to changes in processing requirements due to such factors as Product and service design changes Volume changes Changes in technology Process Strategy LO 6.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Two key questions in process selection: How much variety will the process need to be able to handle? How much volume will the process need to be able to handle? Process Selection LO 6.2 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Job Shop Repetitive
  • 5. Batch Continuous Job ShopBatchRepetitive/ AssemblyContinuousDescriptionCustomized goods or servicesSemi- standardized goods or servicesStandardized goods or servicesHighly standardized Goods or servicesAdvantagesAble to handle a wide variety of workFlexibility; easy to add or change products or servicesLow unit cost, high volume, efficientVery efficient, very high volumeDisadvantagesSlow, high cost per unit, complex planning and schedulingModerate cost per unit, moderate scheduling complexityLow flexibility, high cost of downtimeVery rigid, lack of
  • 6. variety, costly to change, very high cost of downtime Types of Processing LO 6.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Sustainable Production of Goods and Services There is increasing pressure for organizations to operate sustainable production processes According to the Lowell Center for Sustainable Production: “Sustainable Production is the creation of goods and services using processes and systems that are: non-polluting; conserving of energy and natural resources; economically efficient; safe and healthful for workers, communities, and consumers; and, socially and creatively rewarding for all working people.” Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process and Information Technology Process and information technology can have a major impact on costs, productivity and competitiveness: Process technology Methods, procedures, and equipment used to produce goods and
  • 7. provide services Information technology The science and use of computers and other electronic equipment to store, process, and send information Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process technology and information technology can have a profound impact on: Costs Productivity Competitiveness The Need to Manage Technology LO 6.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Automation Machinery that has sensing and control devices that enable it to operate automatically Fixed automation Programmable automation Flexible automation
  • 8. Automation Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Programmable Automation Programmable automation Involves the use of high-cost, general-purpose equipment controlled by a computer program that provides both the sequence of operations and specific details about each operation Computer-Aided Manufacturing (CAM) The use of computers in process control, ranging from robots to automated quality control Numerically Controlled (N/C) Machines Machines that perform operations by following mathematical processing instructions Robot A machine consisting of a mechanical arm, a power supply, and a controller Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#›
  • 9. Flexible Automation Flexible automation Evolved from programmable automation. It uses equipment that is more customized than that of programmable automation. A key difference between the two is that flexible automation requires significantly less changeover time. FMS (Flexible Manufacturing System) A group of machines designed to handle intermittent processing requirements and produce a variety of similar products CIM (Computer Integrated Manufacturing) A system for linking a broad range of manufacturing activities through an integrated computer system Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Flexible Manufacturing System (FMS) FMS A group of machines designed to handle intermittent processing requirements and produce a variety of similar products Have some of the benefits of automation and some of the flexibility of individual, or stand-alone, machines Includes supervisory computer control, automatic material handling, and robots or other automated processing equipment Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#›
  • 10. CIM A system for linking a broad range of manufacturing activities through an integrated computer system Activities include Engineering design FMS Purchasing Order processing Production planning and control The overall goal of CIM is to link various parts of an organization to achieve rapid response to customer orders and/or product changes, to allow rapid production and to reduce indirect labor costs Computer Integrated Manufacturing (CIM) Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Facilities Layout Layout The configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system Facilities layout decisions arise when: Designing new facilities Re-designing existing facilities Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
  • 11. written consent of McGraw-Hill Education 6-‹#› Inefficient operations High cost Bottlenecks Accidents or safety hazards Changes in product or service design Introduction of new products or services Changes in output volume or product mix Changes in methods or equipment Changes in environmental or other legal requirements Morale problems The Need for Layout Planning LO 6.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Basic objective Facilitate a smooth flow of work, material, and information through the system Supporting objectives Facilitate product or service quality Use workers and space efficiently Avoid bottlenecks Minimize material handling costs
  • 12. Eliminate unnecessary movement of workers or material Minimize production time or customer service time Design for safety Layout Design Objectives LO 6.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Basic Layout Types Product layouts Process layouts Fixed-position layout Combination layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Product layout Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow Repetitive Processing: Product Layouts Used for Repetitive Processing Repetitive or Continuous Raw materials
  • 13. or customer Finished item Station 2 Station 3 Station 4 Material and/or labor Material and/or labor Material and/or labor Material and/or labor Station 1 LO 6.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 14. 6-‹#› Product Layouts: Advantages & Disadvantages Advantages High rate of output Low unit cost Labor specialization Low material handling cost per unit High utilization of labor and equipment Established routing and scheduling Routine accounting, purchasing, and inventory control Disadvantages Creates dull, repetitive jobs Poorly skilled workers may not maintain equipment or quality of output Fairly inflexible to changes in volume or product or process design Highly susceptible to shutdowns Preventive maintenance, capacity for quick repair and spare- parts inventories are necessary expenses Individual incentive plans are impractical LO 6.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#›
  • 15. Process layouts Layouts that can handle varied processing requirements Non-repetitive Processing: Process Layouts Used for Intermittent processing Job Shop or Batch Dept. A Dept. B Dept. D Dept. C Dept. F Dept. E LO 6.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#›
  • 16. Process Layouts: Advantages & Disadvantages Advantages Can handle a variety of processing requirements Not particularly vulnerable to equipment failures General-purpose equipment is often less costly and easier and less costly to maintain It is possible to use individual incentive systems Disadvantages In-process inventories can be high Routing and scheduling pose continual challenges Equipment utilization rates are low Material handling is slow and inefficient Reduced spans of supervision Special attention necessary for each product or customer Accounting, inventory control, and purchasing are more involved LO 6.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Fixed position layout Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed Fixed Position Layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 17. 6-‹#› Combination Layouts Some operational environments use a combination of the three basic layout types: Hospitals Supermarket Shipyards Some organizations are moving away from process layouts in an effort to capture the benefits of product layouts Cellular manufacturing Flexible manufacturing systems Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Service layouts can be categorized as: product, process, or fixed position Service layout requirements are somewhat different due to such factors as: Degree of customer contact Degree of customization Common service layouts: Warehouse and storage layouts Retail layouts Office layouts Service Layouts
  • 18. Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Cellular Layouts Cellular production Layout in which workstations are grouped into a cell that can process items that have similar processing requirements Groupings are determined by the operations needed to perform the work for a set of similar items, part families, that require similar processing The cells become, in effect, miniature versions of product layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Group Technology Group technology The grouping into part families of items with similar design or manufacturing characteristics Design characteristics: Size Shape Function
  • 19. Manufacturing or processing characteristics Type of operations required Sequence of operations required Requires a systematic analysis of parts to identify the part families Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Service Layouts Two key factors: Customer contact Degree of customization Layouts: Warehouse and storage layouts Retail layouts Office layouts Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› The goal of a product layout is to arrange workers or machines in the sequence that operations need to be performed Designing Product Layouts: Line Balancing LO 6.8
  • 20. Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Line balancing The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements Goal: Obtain task grouping that represent approximately equal time requirements since this minimizes idle time along the line and results in a high utilization of equipment and labor Why is line balancing important? It allows us to use labor and equipment more efficiently To avoid fairness issues that arise when one workstation must work harder than another Line Balancing LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Cycle Time Cycle time The maximum time allowed at each workstation to complete its set of tasks on a unit
  • 21. Cycle time also establishes the output rate of a line LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› The required number of workstations is a function of Desired output rate Our ability to combine tasks into a workstation Theoretical minimum number of stations How Many Workstations Are Needed? LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Precedence Diagram Precedence diagram A diagram that shows elemental tasks and their precedence
  • 22. requirements LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Assigning Tasks to Workstations Some heuristic (intuitive) rules: Assign tasks in order of most following tasks Count the number of tasks that follow Assign tasks in order of greatest positional weight Positional weight is the sum of each task’s time and the times of all following tasks LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Balance delay (percentage of idle time) Percentage of idle time of a line
  • 23. Efficiency Percentage of busy time of a line Measuring Effectiveness LO 6.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Designing Process Layouts The main issue in designing process layouts concerns the relative placement of the departments Measuring effectiveness A major objective in designing process layouts is to minimize transportation cost, distance, or time LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#›
  • 24. Information Requirements In designing process layouts, the following information is required: A list of departments to be arranged and their dimensions A projection of future work flows between the pairs of work centers The distance between locations and the cost per unit of distance to move loads between them The amount of money to be invested in the layout A list of any special considerations The location of key utilities, access and exit points, etc. LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Distance between locations in metersToABCFromA2040B30C Process Layout ProblemInterdepartmental work flows (loads per day)To123From13017021003 LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Process Layout Problem (cont.) A B
  • 25. C 1 2 3 30 170 100Dept.LoadsLocationDistance (meters)Load Distance Score1 to 2170A to B20170 x 20 = 3,4001 to 330A to C4030 x 40 = 1,2002 to 3100B to C30100 x 30 = 3,000Total7,600 LO 6.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-‹#› Work Design and Measurement Chapter 7 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› You should be able to: LO 7.1 Explain the importance of work design LO 7.2 Compare and contrast the two basic approaches to job design
  • 26. LO 7.3 Discuss the advantages and disadvantages of standardization LO 7.4 Describe behavioral approaches to job design LO 7.5 Discuss the impact of working conditions on job design LO 7.6 Compare the advantages and disadvantages of time- based and output-based pay systems LO 7.7 Explain the purpose of methods analysis and describe how methods studies are performed LO 7.8 Describe four commonly used techniques for motion study LO 7.9 Define a standard time LO 7.10 Describe and compare time study methods and perform calculations LO 7.11 Describe work sampling and perform calculations LO 7.12 Compare stopwatch time study and work sampling Chapter 7: Learning Objectives Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Job Design Job design The act of specifying the contents and methods of jobs What will be done in a job Who will do the job How the job will be done Where the job will be done Importance Organization’s are dependent on human efforts to accomplish their goals Many job design topics are relevant to continuous and
  • 27. productivity improvement Objectives Productivity Safety Quality of work life LO 7.1 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Efficiency vs. Behavioral Job Design Efficiency School Emphasizes a systematic, logical approach to job design A refinement of Frederick Winslow Taylor’s scientific management concepts Behavioral School Emphasizes satisfaction of needs and wants of employees LO 7.2 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Specialization Specialization Work that concentrates on some aspect of a product or service AdvantagesFor management: Simplifies training High productivity
  • 28. Low wage costsFor employees: Low education and skill requirements Minimum responsibility Little mental effort neededDisadvantagesFor management: Difficult to motivate quality Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to qualityFor employees: Monotonous work Limited opportunities for advancement Little control over work Little opportunity for self-fulfillment LO 7.3 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Behavioral Approaches to Job Design Job Enlargement Giving a worker a larger portion of the total task by horizontal loading Job Rotation Workers periodically exchange jobs Job Enrichment Increasing responsibility for planning and coordination tasks, by vertical loading LO 7.4 Copyright ©2018 McGraw-Hill Higher Education 6-‹#›
  • 29. Motivation Motivation is a key factor in many aspects of work life Influences quality and productivity Contributes to the work environment Trust is an important factor that affects motivation Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Teams Teams take a variety of forms: Short-term team Formed to collaborate on a topic or solve a problem Long-term teams Self-directed teams Groups empowered to make certain changes in their work processes Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Benefits of teams Higher quality Higher productivity
  • 30. Greater worker satisfaction Team problems Some managers feel threatened Conflicts between team members Teams Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Quality of Work Life Quality of work life affects not only workers’ overall sense of well-being and contentment, but also their productivity Important aspects of quality of work life: How a worker gets along with co-workers Quality of management Working conditions Compensation LO 7.5 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Compensation It is important for organizations to develop suitable compensation plans for their employees Compensation approaches Time-based systems
  • 31. Output-based systems Incentive systems Knowledge-based systems Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Time-based system Compensation based on time an employee has worked during the pay period Output-based (incentive) system Compensation based on amount of output an employee produced during the pay period Compensation Systems Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Comparing Compensation ApproachesManagementWorkerTIME-BASED AdvantagesStable labor costs Easy to administer Simple to compute pay Stable OutputStable pay Less pressure to produce than under output systemDisadvantagesNo incentive for workers to increase outputExtra efforts not rewardedOUTPUT-BASED
  • 32. AdvantagesLower cost per unit Greater outputPay related to efforts Opportunity to earn moreDisadvantagesWage computation more difficult Need to measure output Quality may suffer Difficult to incorporate wage increases Increased problems with schedulingPay fluctuates Workers may be penalized because of factors beyond their control (e.g., machine breakdown) LO 7.6 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Individual incentive plans Straight piecework Worker’s pay is a direct linear function of his or her output Minimum wage legislation has reduced their popularity Base rate + bonus Worker is guaranteed a base rate, tied to an output standard, that serves as a minimum A bonus is paid for output above the standard Group incentive plans Tend to stress sharing of productivity gains with employees Individual and Group Incentive Plans Copyright ©2018 McGraw-Hill Higher Education 6-‹#›
  • 33. Knowledge-based pay A pay system used by organizations to reward workers who undergo training that increases their skills Three dimensions: Horizontal skills Reflect the variety of tasks the worker is capable of performing Vertical skills Reflect the managerial skills the worker is capable of Depth skills Reflect quality and productivity results Knowledge-Based Pay Systems Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Management Compensation Many organizations used to reward managers based on output New emphasis is being placed on other factors of performance Customer service Quality Executive pay is increasingly being tied to the success of the company or division for which the executive is responsible Copyright ©2018 McGraw-Hill Higher Education 6-‹#›
  • 34. Methods Analysis Analyzing how a job gets done It begins with an analysis of the overall operation It then moves from general to specific details of the job concentrating on Workplace arrangement Movement of workers and/or materials Methods Analysis LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› The need for methods analysis can arise from a variety of sources Changes in tools and equipment Changes in product design or introduction of new products Changes in materials and procedures Government regulations or contractual agreements Accidents or quality problems The Need for Methods Analysis LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Methods Analysis Procedure Identify the operation to be studied, and gather relevant data
  • 35. Discuss the job with the operator and supervisor to get their input Study and document the present methods Analyze the job Propose new methods Install the new methods Follow up implementation to assure improvements have been achieved LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Consider jobs that: Have a high labor content Are done frequently Are unsafe, tiring, unpleasant, and/or noisy Are designated as problems Quality problems Processing bottlenecks etc. Guidelines for Selecting a Job to Study LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Analyzing the Job: Flow Process Charts
  • 36. Flow process chart Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Analyzing the Job: Worker-Machine Chart Worker machine chart Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle LO 7.7 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Motion study Systematic study of the human motions used to perform an operation Motion Study Techniques Motion study principles– guidelines for designing motion- efficient work procedures Analysis of therbligs– basic elemental motions into which a job
  • 37. can be broken down Micromotion study– use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze Charts– activity or process charts, simo charts (simultaneous motions) Motion Study LO 7.8 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Developing Work Methods In developing work methods that are motion efficient, the analyst attempts to Eliminate unnecessary motions Combine activities Reduce fatigue Improve the arrangement of the workplace Improve the design of tools and equipment LO 7.8 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Work Measurement Work measurement is concerned with how long it should take to complete a job.
  • 38. It is not concerned with either job content or how the job is to be completed since these are considered a given when considering work measurement. LO 7.9 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Work Measurement Standard time The amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw material inputs, and workplace arrangement. Commonly used work measurement techniques Stopwatch time study Historical times Predetermined data Work sampling LO 7.9 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Stopwatch Time Study Used to develop a time standard based on observations of one worker taken over a number of cycles.
  • 39. Standard Elemental Times are derived from a firm’s own historical time study data. Predetermined time standards involve the use of published data on standard elemental times. Work sampling a technique for estimating the proportion of time that a worker or machine spends on various activities and idle time. Work Measurement Techniques LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Stopwatch Time Study Used to develop a time standard based on observations of one worker taken over a number of cycles. Basic steps in a time study: Define the task to be studied and inform the worker who will be studied Determine the number of cycles to observe Time the job, and rate the worker’s performance Compute the standard time LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#›
  • 40. The number of observations to collect is a function of Variability of the observed times The desired level of accuracy Desired level of confidence for the estimated job time Number of Cycles to Observe LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Observed Time LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Normal Time Assumes that a single performance rating has been made for the entire job LO 7.10 Copyright ©2018 McGraw-Hill Higher Education
  • 41. 6-‹#› Normal Time Assumes that performance ratings are made on an element-by- element basis LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Standard Time LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Historical Times Standard Elemental Times are derived from a firm’s own historical time study data.
  • 42. Over time, a file of accumulated elemental times that are common to many jobs will be collected. In time, these standard elemental times can be retrieved from the file, eliminating the need to go through a new time study to acquire them. LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Predetermined time standards involve the use of published data on standard elemental times. Developed in the 1940s by the Methods Engineering Council. The MTM (methods-time-measurement) tables are based on extensive research of basic elemental motions and times. To use this approach, the analyst must divide the job into its basic elements (reach, move, turn, etc.) measure the distances involved, and rate the difficulty of the element, and then refer to the appropriate table of data to obtain the time for that element Predetermined Time Standards LO 7.10 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Work sampling is a technique for estimating the proportion of
  • 43. time that a worker or machine spends on various activities and the idle time. Work sampling does not require timing an activity or involve continuous observation of the activity Uses: ratio-delay studies which concern the percentage of a worker’s time that involves unavoidable delays or the proporti on of time a machine is idle. analysis of non-repetitive jobs. Work Sampling LO 7.11 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Work Sampling LO 7.11 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Work Sampling vs. Stopwatch Time StudiesAdvantagesObservations are spread out over a period of
  • 44. time, making results less susceptible to short-term fluctuations There is little or no disruption of work Workers are less resentful Studies are less costly and less time-consuming, and the skill requirements of the analyst are much less Studies can be interrupted without affecting the results No timing device is required It is well suited for nonrepetitive tasksDisadvantagesThere is much less detail on the elements of a job Workers may alter their work patterns when they spot the observer, thereby invalidating the results In many cases, there is no record of the method used by the worker Observers may fail to adhere to a random schedule of observations It is not well suited for short, repetitive tasks Much time may be required to move from one workplace to another and back to satisfy the randomness requirement LO 7.12 Copyright ©2018 McGraw-Hill Higher Education 6-‹#› Job Design Success Success factors: Carried out by personnel with appropriate training and background Consistent with the goals of the organization In written form Understood and agreed to by both management and employees Copyright ©2018 McGraw-Hill Higher Education
  • 45. 6-‹#› It is important to make design of work systems a key element of strategy: People are still at the heart of the business Workers can be valuable sources of insight and creativity It can be beneficial to focus on quality of work life and instilling pride and respect among workers Companies are reaping gains through worker empowerment Operations Strategy Copyright ©2018 McGraw-Hill Higher Education 6-‹#› time Cycle day per time Operating rate Output = rate output
  • 56. e percent error maximum ) ˆ 1 ( ˆ 2 = - ÷ ø ö ç è æ = e p p e z n MGT-530: Operation Management (Processes, Facilities, and Work Systems) Module 07 Regulations: · GRADING EXPECTATIONS : 1. I recommend that you use the grading rubric to shape your work product (Attached).  
  • 57. 2. With respect to grading, The instructor really looks for 2 things: citations and substance. I encourage you to include cites and information from scholarly and/or peer-reviewed sources in addition to the course text (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473) Otherwise, my potential for points is reduced. It  indicates you have read the course materials and searched far and wide for theories, statistics, and facts to address the issue at hand. I encourage you to paraphrase these sources. Convert the content into your own words rather than using direct quotes. This improves the synthesis of information, and it makes the writing more closely resemble your own style.  In addition to scholarly citations, a substantive assignment is one that not only answers the question but advances the discussion. Please, do more than is expected. · The writer must apply APA style guidelines. · Support your submission with: 1. Course material concepts, principles, and theories from the textbook and Use it in the references (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw - Hill Irwin. ISBN-13:9781259667473) 2.  At least Three scholarly, peer-reviewed journal articles such as: 2.1 Rezagholi, M. (2019). Demands for multidimensional information on the work environment: A methodological framework for regular studies. Work, 63(1), 9–20. 2.2 Korkulu, S., & Bona, K. (2019). Ergonomics as a social component of sustainable lot-sizing: A review. Periodica Polytechnica: Social and Management Sciences, 27(1), 1–8. 2.3 Beke, E., Horvath, R., & Takacs-Gyorgy, K. (2020). Industry 4.0 and Current Competencies. Our Economy (Nase Gospodarstvo), 66(4), 63–70. https://doi.org/10.2478/ngoe-
  • 58. 2020-0024 · Be 2 pages in length, does not include the title page, abstract, conclusion and required reference page, which are never a part of the minimum content requirements. Processes, Facilities, and Work Systems Business processes are important to communicate an organization’s best practices as they leverage themselves against competitors. Some benefits of business processes are that in the long run gains may be realized in cost reduction, meeting customers’ expectations, and streamlining business operations. Business process management then focuses on a workflow that may hinder good performance. Address the following requirements: 1. Identify a business process for which there is not yet a workflow diagram, explain the situation, and devise a workflow to address the problem 2. Defend your workflow and identify any areas of concern that may hinder successful implementation and a proposed remedy to that concern. Thank you for your support MGT - 5 30 : Operation Management
  • 59. ( Processes, Facilities, and Work Systems ) Module 0 7 Regulations : · GRADING EXPECTATIONS : 1. I recommend that you use the grading rubric to shape your work product ( Attached ). 2. With respect to grading, The instructor really looks for 2 things: citations
  • 60. and substance . I encourage you to include cites and information from scholarly and/or peer - reviewed sources in addition to the course text ( Stevenson , W. (2018). Operations management (13th ed.). New York, NY: McGraw - Hill Irwin. ISBN - 13:9781259667473) Otherwise , my potential for points is reduced. It indicates you have read the course materials and searched far and wide for theories, statistics, and facts to address the issue at hand. I encourage you to paraphrase these sources. Convert the content into your own wor ds rather than using direct quotes . This improves the synthesis of information, and it makes the writing more closely resemble your own style.
  • 61. In addition to scholarly citations, a substantive assignment is one that not only answers the question but adv ances the discussion. Please, do more than is expected. · The writer must apply APA style guidelines . · Support your submission with: 1. Course material concepts, principles, and theories from the textbook and Use it in the references (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw - Hill Irwin. ISBN
  • 62. - 13:9781259667473) 2. At least Three scholarly, peer - reviewed journal articles such as: 2.1 Rezagholi, M. (2019). Demands for multidimensional information on the work environment: A methodological framework for regular studies. Work, 63(1), 9 – 20. 2.2 Korkulu, S., & Bona, K. (2019). Ergonomics as a social component of sustainable lot - sizing: A review. Periodica Polytechnica: Social and Management Sciences, 27(1), 1 – 8.
  • 63. 2.3 B eke, E., Horvath, R., & Takacs - Gyorgy, K. (2020). Industry 4.0 and Current Competencies. Our Economy (Nase Gospodarstvo), 66(4), 63 – 70. https://doi.org/10.2478/ngoe - 2020 - 0024 · Be 2 pages in length, does not include the title page, abstract, conclusion and required reference page, which are never a part of the minimum content requirements. MGT-530: Operation Management (Processes, Facilities, and Work Systems) Module 07
  • 64. Regulations: NS : 1. I recommend that you use the grading rubric to shape your work product (Attached). 2. With respect to grading, The instructor really looks for 2 things: citations and substance. I encourage you to include cites and information from scholarly and/or peer-reviewed sources in addition to the course text (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473) Otherwise, my potential for points is reduced. It indicates you have read the course materials and searched far and wide for theories, statistics, and facts to address the issue at hand. I encourage you to paraphrase these sources. Convert the content into your own words rather than using direct quotes. This improves the synthesis of information, and it makes the writing more closely resemble your own style. In addition to scholarly citations, a substantive assignment is one that not only answers the question but advances the discussion. Please, do more than is expected. The writer must apply APA style guidelines. 1. Course material concepts, principles, and theories from the textbook and Use it in the references (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473) 2. At least Three scholarly, peer-reviewed journal articles such
  • 65. as: 2.1 Rezagholi, M. (2019). Demands for multidimensional information on the work environment: A methodological framework for regular studies. Work, 63(1), 9–20. 2.2 Korkulu, S., & Bona, K. (2019). Ergonomics as a social component of sustainable lot- sizing: A review. Periodica Polytechnica: Social and Management Sciences, 27(1), 1–8. 2.3 Beke, E., Horvath, R., & Takacs-Gyorgy, K. (2020). Industry 4.0 and Current Competencies. Our Economy (Nase Gospodarstvo), 66(4), 63– 70. https://doi.org/10.2478/ngoe-2020-0024 conclusion and required reference page, which are never a part of the minimum content requirements. SEU Discussion Board Rubric Meets Expectation Approaches Expectation Below Expectation Limited Evidence
  • 66. No Evidence Content, Research, and Analysis 2 Points 1.5 Points 1 Point .5 Points 0 Points Content Meets Expectation - Demonstrates excellent knowledge of concepts, skills, and theories relevant to topic. Approaches Expectation - Demonstrates fair knowledge of concepts, skills, and theories. Below Expectation - Demonstrates significantly flawed knowledge of concepts, skills, and theories. Limited Evidence - Demonstrates poor or absent knowledge of concepts, skills, and theories. No Evidence - Did
  • 67. not participate. 2 Points 1.5 Points 1 Point .5 Points 0 Points Support Meets Expectation - Statements are well supported; posts extend discussion. Approaches Expectation - Statements are partially supported; posts may extend discussion. Below Expectation - Support is deficient; posts do not extend discussion. Limited Evidence - Statements are not supported No Evidence - Did not participate. 2 Points 1.5 Points 1 Point .5 Points 0 Points Writing Quality Meets Expectation
  • 68. - Writing is well organized, clear, concise, and focused; no errors. Approaches Expectation - Some significant but not major errors or omissions in writing organization, focus, and clarity. Below Expectation - Numerous significant errors or omissions in writing organization, focus, and clarity. Limited Evidence - Numerous errors or omissions—at least some major—in writing organization, focus, and clarity. No Evidence - Did not participate. 2 Points 1.5 Points 1 Point .5 Points 0 Points Timelines s
  • 69. Meets Expectation - Initial post made before deadline. Approaches Expectation - Initial post made 1 day late. Below Expectation - Initial post 2 days late. Limited Evidence - Initial post 3 days late. No Evidence - Did not participate. 2 Points 1.5 Points 1 Point .5 Points 0 Points Quantity Meets Expectation - Initial post and two other posts of substance. Approaches Expectation - Initial post and one other post of substance. Below Expectation - Initial post only.
  • 70. Limited Evidence - One post of substance to colleagues. No Evidence - Did not participate. Total Points Possible: 10