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THE HUMAN ELEMENT
IN OPERATIONS
MANAGEMENT
The Human Element
• Fundamental premise of Factory Physics is that
there are natural laws or tendencies that govern
the behaviour of plants.
• Understanding these laws and working with
them facilitate better management policies.
• In the same manner, there are natural
tendencies of human behaviour, or “personnel
laws,” that significantly influence the operation of
a factory.
The Human Element
• Manufacturing system consists of equipment,
logic, and people. Well-designed systems make
effective use of all three components.
• "Poor operations decisions are generally not
misguided because of a lack of appreciation of
subtle psychological details but because of a
wholesale inattention to fundamental aspects of
human nature."
The Human Element
• Law (Self-Interest):
People, not organizations, are self-optimizing.
• Individual preference are complex and never be
able to really comprehend.
• Organizations made up of people will not
necessarily act according to organizational goals.
• Sales and Manufacturing disagreements
• Engineering design a headache to Manufacturing
The Human Element
• Constrained
optimization problem
• Optimize
>Objectives
Subject to
>Constrains
• Ex: minimize inventory
to achieve minimum
service
• Theory of Constraints
The Human Element
• Significance of this law is that organizations,
including manufacturing systems, do not naturally
seek the optimum within the feasible region
• Constrains can actually improve the system...
• CONWIP
• Design with standardized parts (Using CAD programs)
• Sales coordinating their offering with plant status...
• Working on right parts on right time...
• Improving a manufacturing system is not simply a
matter of removing constraints.
The Human Element
• Law (Individuality): People are different.
• Differences in experience, manual dexterity, or
discipline may change the abilities of workers
• Taylor understood inherent differences in workers..
addressed with incentives and punishments
• Bucket-brigade example worker differences
• MacGregor’s Theory X and Theory Y
• Differs in response to various motivation factors
Bucket-brigade
Toyota Sewn Products Management
System, Seiki Co., a subsidiary of
Toyota
The Human Element
• Law (Advocacy): For almost any program,
there exists a champion who can make it
work-at least for awhile.
• Role of Zealots
• Law (Burnout): People get burned out.
• Use revolutions sparingly
• Do not skimp on training
• Use pilot programs
The Human Element
• The difference between planning and
motivating.
• Predictive systems (eg. Scheduling tools, due date
quoting systems, and capacity planning procedures)
should use the most accurate data available (historical
data)
• Motivational systems (eg. incentive mechanisms, merit
evaluations, and disciplinary procedures, may rely on
speculative targets (but still targets should not be too
high)
The Human Element
• Law (Responsibility): Responsibility without
commensurate authority is demoralizing and
counterproductive.
• Deming experiment All manufacturing systems
are with randomness, some
variations in performance will
be due to pure chance.
Effective management
practices must be able to
distinguish between real
differences and noise. (The
effect of Regression to mean)
Question
• In Deming’s red beads example, employees have
no control over their performance. What does this
experiment have to do with a situation in the real
world, where employees’ performance is a
function both of their ability/effort and random
factors? What managerial insights can one obtain
from this example? (FP 4)

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MyPGDMM_MS_Chap11_HR (1).pdf

  • 1. THE HUMAN ELEMENT IN OPERATIONS MANAGEMENT
  • 2. The Human Element • Fundamental premise of Factory Physics is that there are natural laws or tendencies that govern the behaviour of plants. • Understanding these laws and working with them facilitate better management policies. • In the same manner, there are natural tendencies of human behaviour, or “personnel laws,” that significantly influence the operation of a factory.
  • 3. The Human Element • Manufacturing system consists of equipment, logic, and people. Well-designed systems make effective use of all three components. • "Poor operations decisions are generally not misguided because of a lack of appreciation of subtle psychological details but because of a wholesale inattention to fundamental aspects of human nature."
  • 4. The Human Element • Law (Self-Interest): People, not organizations, are self-optimizing. • Individual preference are complex and never be able to really comprehend. • Organizations made up of people will not necessarily act according to organizational goals. • Sales and Manufacturing disagreements • Engineering design a headache to Manufacturing
  • 5. The Human Element • Constrained optimization problem • Optimize >Objectives Subject to >Constrains • Ex: minimize inventory to achieve minimum service • Theory of Constraints
  • 6. The Human Element • Significance of this law is that organizations, including manufacturing systems, do not naturally seek the optimum within the feasible region • Constrains can actually improve the system... • CONWIP • Design with standardized parts (Using CAD programs) • Sales coordinating their offering with plant status... • Working on right parts on right time... • Improving a manufacturing system is not simply a matter of removing constraints.
  • 7. The Human Element • Law (Individuality): People are different. • Differences in experience, manual dexterity, or discipline may change the abilities of workers • Taylor understood inherent differences in workers.. addressed with incentives and punishments • Bucket-brigade example worker differences • MacGregor’s Theory X and Theory Y • Differs in response to various motivation factors
  • 8. Bucket-brigade Toyota Sewn Products Management System, Seiki Co., a subsidiary of Toyota
  • 9. The Human Element • Law (Advocacy): For almost any program, there exists a champion who can make it work-at least for awhile. • Role of Zealots • Law (Burnout): People get burned out. • Use revolutions sparingly • Do not skimp on training • Use pilot programs
  • 10. The Human Element • The difference between planning and motivating. • Predictive systems (eg. Scheduling tools, due date quoting systems, and capacity planning procedures) should use the most accurate data available (historical data) • Motivational systems (eg. incentive mechanisms, merit evaluations, and disciplinary procedures, may rely on speculative targets (but still targets should not be too high)
  • 11. The Human Element • Law (Responsibility): Responsibility without commensurate authority is demoralizing and counterproductive. • Deming experiment All manufacturing systems are with randomness, some variations in performance will be due to pure chance. Effective management practices must be able to distinguish between real differences and noise. (The effect of Regression to mean)
  • 12. Question • In Deming’s red beads example, employees have no control over their performance. What does this experiment have to do with a situation in the real world, where employees’ performance is a function both of their ability/effort and random factors? What managerial insights can one obtain from this example? (FP 4)