Work measurement

Work Measurement
Work measurement is the process of establishing the time that a given task would take when
performed by a qualified worker working at a defined level of performance.
There are various ways in which work may be measured and a variety of techniques have been
established. The basic procedure, irrespective of the particular measurement technique being
used, consists of three stages ;
 an analysis phase in which the job is divided into convenient, discrete components,
commonly known as elements;
 a measurement phase in which the specific measurement technique is used to establish
the time required (by a qualified worker working at a defined level of performance) to
complete each element of work;
 a synthesis phase in which the various elemental times are added, together with
appropriate allowances (see below), to construct the standard time for the complete job.
The techniques used to measure work can be classified into those that rely on direct observation
of the work, and those that do not. For example, some techniques, such as predetermined motion-
time systems and the use of synthetic or standard data can provide times from simulation or even
visualisation of the work. However, the data on which such techniques are based were almost
certainly based on earlier observation of actual work.
Rating
Direct observation techniques such as time study and analytical estimating include a process for
converting observed times to times for the "qualified worker working at a defined level of
performance." The commonest of these processes is known as rating.
This involves a trained observer making an assessment of the worker's rate of working relative to
the observer's concept of the rate corresponding to standard rating. This assessment is based on
the factors involved in the work such as effort, dexterity, speed of movement, and consistency.
The assessment is made on a rating scale, of which there are three or four in common usage.
Thus on the 0-100 scale, the observer makes a judgement of the worker's rate of working as a
percentage of the standard rate of working (100).
The rating is then used, in a process known as "extension" in time study, to convert the observed
time to the basic time using the simple formula:
Basic time = observed time x observed rating/standard rating
Rating is regarded by many as a controversial area of measurement since it is a subjective
assessment. Where different observers rate differently, the resulting basic times are not
comparable. However, practised rating practitioners are remarkably consistent. It is important
that those undertaking the rating are properly trained, and that this training is regularly updated
to maintain a common perception of standard rating through rating 'clinics'.

Allowances
When carrying out work over a complete shift or working day, workers obviously suffer from the
fatigue imposed both by the work undertaken and the conditions under which they are working.
The normal practice is to make an addition to the basic time (commonly referred to as an
"allowance") to allow the worker to recover from this fatigue and to attend to personal needs.
The amount of the allowance depends on the nature of the work and the working environment,
and is often assessed using an agreed set of guidelines and scales.
It is usual to allow some of the recovery period inherent in these allowances to be spent away
from the workplace and this is essential in adverse working conditions. Thus, work design should
include the design of an effective work-rest regime. The addition of allowances should never be
used to compensate for an unsafe or unhealthy working environment.
One minority school of thought suggests that relaxation allowances are unnecessary. With work
which involves, say, the carrying of heavy weights, this school suggests that the observer
automatically adjusts the concept of standard rating to allow for the weight. Thus, if the standard
rate of performance for walking on level ground carrying no weight is equivalent to four miles
per hour, then an observer rating a worker walking while carrying a weight will not expect the
equivalent rate. Thus, it is argued that the weight has been allowed for in the adjustment of
standard rating and any relaxation allowance is simply a duplication of this adjustment.
In many jobs there are small amounts of work that may occur irregularly and inconsistently. It is
often not economic to measure such infrequent work and an additional allowance is added to
cover such work and similar irregular delays. This allowance is known as a contingency
allowance and is assessed either by observation, by analysis of historical records of such items as
tool sharpening or replacement, or by experience. The end result is a Standard Time which
includes the time the work "should" take (when carried out by a qualified worker) plus additional
allocations in the form of allowances, where appropriate, to cover relaxation time, contingency
time and, perhaps, unoccupied time which increases the overall work cycle such as waiting for a
machine to finish a processing cycle.
Choosing a measurement technique
The choice of a suitable measurement technique depends on a number of factors including:
 the purpose of the measurement;
 the level of detail required;
 the time available for the measurement;
 the existence of available predetermined data;
 and the cost of measurement.
There is a trade off between some of these factors. For example, techniques which derive times
quickly may provide less detail and be less suitable for some purposes, such as the establishment
of individual performance levels on short-cycle work.

The advantage of structured and systematic work measurement is that it gives a common
currency for the evaluation and comparison of all types of work. The results obtained from work
measurement are commonly used as the basis of the planning and scheduling of work, manpower
planning, work balancing in team working, costing, labour performance measurement, and
financial incentives. They are less commonly used as the basis of product design, methods
comparison, work sequencing and workplace design.
Time Study
Time study is a structured process of directly observing and measuring human work using a
timing device to establish the time required for completion of the work by a qualified worker
when working at a defined level of performance.
It follows the basic procedure of systematic work measurement of:
 analysis of the work into small, easily-measurable components or elements
 measurement of those components and
 synthesis from those measured components to arrive at a time for the complete job.
The observer first undertakes preliminary observation of the work (a pilot study) to identify
suitable elements which can be clearly recognised on subsequent occasions and are of convenient
length for measurement.
Subsequent studies are taken during which the observer times each occurrence of each element
using a stopwatch or other timing device while at the same time making an assessment of the
worker's rate of working on an agreed rating scale. One of the prime reasons for measuring
elements of work, rather than the work as a whole is to facilitate the process of rating. The rate at
which a worker works will vary over time; if elements are carefully selected, the rate of working
should be consistent for the relatively short duration of the element. More information on rating
is given within the entry on work measurement. This assessment of rating is later used to convert
the observed time for the element into a basic time; a process referred to as "extension". It is
essential that a time study observer has been properly trained in the technique and especially in
rating.
Time study, when properly undertaken, involves the use of specific control mechanisms to
ensure that timing errors are within acceptable limits. Increasingly, timing is by electronic
devices rather than by mechanical stopwatch; some of these devices also assist in subsequent
stages of the study by carrying out the process of "extending" or converting observed times into
basic times. The basic time is the time the element would take if performed at a specified
standard rating.
The number of cycles that should be observed depends on the variability in the work and the
level of accuracy required. Since time study is essentially a sampling technique in which the

value of the time required for the job is based on the observed times for a sample of
observations, it is possible using statistical techniques to estimate the number of observations
required under specific conditions. This total number of observations should be taken over a
range of conditions where these are variable and, where possible, on a range of workers.
Once a basic time for each element has been determined, allowances are added (for example, to
allow the worker to recovere from the physical and mental effects of carrying out the work) to
derive a standard time.
Time study is a very flexible technique, suitable for a wide range of work performed under a
wide range of conditions, although it is difficult to time jobs with very short cycle times (of a
few seconds). Because it is a direct observation technique, it takes account of specific and special
conditions but it does rely on the use of the subjective process of rating. However, if properly
carried out it produces consistent results and it is widely used. Additionally, the use of electronic
data capture devices and personal computers for analysis makes it much more cost effective than
previously.
Method Study
Method study is the process of subjecting work to systematic, critical scrutiny to make it more
effective and/or more efficient. It is one of the keys to achieving productivity improvement.
It was originally designed for the analysis and improvement of repetitive manual work but it can
be used for all types of activity at all levels of an organisation.
The process is often seen as a linear, described by its main steps of:
 Select(the worktobe studied);
 Record(all relevantinformationaboutthatwork);
 Examine (the recordedinformation);
 Develop(animprovedwayof doingthings);
 Install (the newmethodasstandardpractice);
 Maintain(the newstandardproactive).
Although this linear representation shows the underlying simplicity of method study, in practice
the process is much more one of repeated passes through the sequence of steps with each
dominating at a different stage of the investigation.
The cyclic process often starts with a quick, rough pass in which preliminary data are collected
and examined before subsequent passes provide and handle more comprehensive and more
detailed data to obtain and analyse a more complete picture.

Select
Work selected for method study may be an identified problem area or an identified opportunity.
It may be identified through a systematic review of available data, normal monitoring or control
processes, high levels of dissatisfaction and complaint or as part of a change in management
policy, practice, technology or location, and usually because it meets certain conditions of
urgency and/or priority.
Define
Before any method study investigation is begun, it is necessary to establish clear terms of
reference which define the aims, scale, scope and constraints of the investigation. This should
also include an identification of who "owns" the problem or situation and ways in which such
ownership is shared. This may lead to a debate on the aims of the project, on reporting
mechanisms and frequencies, and on the measures of success. This process is sometimes
introduced as a separate and distinct phase of method study, as the "Define" stage. It leads to a
plan for the investigation which identifies appropriate techniques, personnel, and timescale.
Record
The Record stage of method study involves gathering sufficient data (in terms of both quality
and quantity) to act as the basis of evaluation and examination. A wide range of techniques are
available for recording; the choice depends on the nature of the investigation; the work being
studied; and on the level of detail required. Many of the techniques are simple charts and
diagrams, but these may be supplemented by photographic and video recording, and by computer
based techniques.
Especially with "hard" (clearly defined) problems, method study often involves the construction
and analysis of models, from simple charts and diagrams used to record and represent the
situation to full, computerised simulations. Manipulation of and experimentation on the models
leads to ideas for development.
Examine
The recorded data are subjected to examination and analysis; formalised versions of this process
are critical examination and systems analysis. The aim is to identify, often through a structured,
questioning process, those points of the overall system of work that require improvements or
offer opportunity for beneficial change.
Develop
The Examine stage merges into the Develop stage of the investigation as more thorough analysis
leads automatically to identified areas of change. The aim here is to identify possible actions for
improvement and to subject these to evaluation in order to develop a preferred solution.

Sometimes it is necessary to identify short-term and long-term solutions so that improvements
can be made (relatively) immediately, while longer-term changes are implemented and come to
fruition.
Install
The success of any method study project is realised when actual change is made 'on the ground' -
change that meets the originally specified terms of reference for the project. Thus, the Install
phase is very important. Making theoretical change is easy; making real change demands careful
planning - and handling of the people involved in the situation under review. They may need
reassuring, retraining and supporting through the acquisition of new skills. Install, in some cases
,will require a parallel running of old and new systems, in others, it may need the build-up of
buffer stocks, and other planning to manage the change. what matters is that the introduction of
new working methods is successful. There is often only one chance to make change!
Maintain
Some time after the introduction of new working methods, it is necessary to check that the new
method is working, that it is being properly followed, and that it has brought about the desired
results. This is the Maintain phase. Method drift is common - when people either revert to old
ways of workin, or introduce new changes. Some of these may be helpful and should formally be
incorporated; others may be inefficient or unsafe. A methods audit can be used to formally
compare practice with the defined method and identify such irregularities.
KAIZEN
KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement. Adopting
KAIZEN involves the creation of a culture of sustained continuous improvement focusing on
eliminating waste in all systems and processes of an organization.
There are two essential elements that make up KAIZEN:
 improvement/change for the better; and
 ongoing/continuity.
A system/culture that lacks either of these is not true KAIZEN. Thus, maintaining existing ways
of working (good though they may be) lacks the essential 'improvement' element, though it
ensures continuity. Similarly, breakthrough improvement, not backed up by effective ongoing
improvement, lacks the element of continuity. KAIZEN should contain both elements. KAIZEN
is not consistent with the saying "If it ain't broke, don't fix it".

KAIZEN achieves its effects by working through people. All are expected to be involved.
Managers, for example, are expected to spend about half their time on improving what they and
those for whom they are responsible do.
Traditionally, a Japanese Samurai carried seven tools into battle. After World War II the
Japanese adopted quality as a philosophy for economic recovery and, in line with this traditional
approach, sought seven tools to accomplish the economic rejuvenation. The seven tools chosen
were:
 Histograms
 Cause and Effect Diagrams
 Check Sheets
 Pareto Diagrams
 Graphs
 Control Charts
 Scatter Diagrams
These tools were largely developed as aids within the process of statistical quality control. All
personnel are trained to use them - and the resulting charts and diagrams are displayed
prominently.
KAIZEN recognises that improvements can be small or large. Many small improvements can
make a big change - so KAIZEN works at a detailed level.
The principles/approach behind KAIZEN are:
1. Discard conventional fixed ideas.
2. Think of how to do it, not why it cannot be done.
3. Do not make excuses. Start by questioning current practices.
4. Do not seek perfection. Do it right away even if it will only achieve 50% of target.
5. If you make a mistake, correct it right away.
6. Throw wisdom at a problem, not money.
7. Ask 'WHY?" five times and seek root causes.
8. Seek the wisdom of ten people rather than the knowledge of one.
9. Don't ask workers to leave their brains at the factory gate.
KAIZEN is thus a (relatively) low cost, simple, team-based approach. Team are trained in the
techniques and tools of KAIZEN. They then brainstorm improvement ideas and vote on them for
priority action. They then create an action/implementation plan which is submitted to
management for approval. Assuming it is approved, the team then sets about implementation
(with professional help if appropriate). The team then meets weekly to review progress,
identify/overcome barriers, celebrate successes, and document the resulting changed processes.

Continuous Improvement
Continuous improvement is not a tool or technique as such; more a way of life or at least a
cultural approach to quality improvement and the concept of continuous improvement has to be
set in the context of the quality "movement".
Quality as a business issue in the way we know it now arose with labour specialisation, mass
production and automation techniques; techniques which moved away from the traditional expert
craftsman approach to quality.
In the new world of factories and mass production, quality was obtained by inspecting each part
and passing only those that met specifications. This was true until 1931 when Walter A.
Shewhart, a statistician at the Hawthorne plant at Western Electric published his book Economic
Control of Quality of Manufactured Product (Van Nostrand, 1931). This book is the foundation
of modern statistical process control (SPC) and provides the basis for the philosophy of total
quality management or continuous process improvement for improving processes.
With statistical process control, quality inspection of each individual part produced is no longer
used; the process is monitored through sampling. Depending on the results from the sample,
adjustments are made to the process to ensure quality production.
W. Edwards Deming worked as Walter Shewhart's assistant and protégé and helped further
develop this radical approach to improving quality. At about the same time, Shewhart also
developed a never-ending approach toward process improvement called the Shewhart Cycle
(also known in Japan as the Deming cycle) : Plan-Do-Check-Act.
This approach emphasizes the continuing, never-ending nature of process improvement.
The cycle is really a simple feedback loop system.
Plan
A plan is developed to improve a process.
Do
The plan is tested in a small field test.
Check
The results of the test are assessed.
Act
If successful, the plan is implemented.

The improvement process then begins again and the cycle is repeated. The repetition of the
PDCA cycle, with each cycle producing improvement, leads us to the term 'continuous
improvement'.
Push-Pull Manufacturing
"Pushtype"meansMake to Stock inwhichthe productionisnot basedonactual demand."Pull type"
meansMake To Orderin whichthe productionisbasedonactual demand.Insupplychainmanagement,
it isimportantto carry out processeshalfwaybetweenpushtype andpull type orbya combinationof
pushtype and pull type.
SupplyChainManagement(SCM) istocreate a solutioni.e."supply"foragoal or issue,i.e."demand".
Supplychainmodelsof "Pushtype"and"Pull type"are opposite intermsof ademandandsupply
relationship."Pushtype"isrepresentedby"Make toStock" (MTS) in whichthe productionisnotbased
on actual demandand "Pull type"isrepresentedby"Make ToOrder"(MTO) inwhichthe productionis
basedon actual demand.
One of the majorreasonswhysupplychainmanagementcurrentlyreceivessomuchattentionisthat
informationtechnologyenablesthe shiftingof aproductionandsalesbusinessmodel from"Pushtype"
to "Pull type".Pull-type supplychainmanagementisbasedonthe demandside suchasJust-in-Time(JIT)
and CRP(ContinuousReplenishmentProgram) oractual demandassignedtolaterprocesses.Therefore,
unlike the Push-type methoditisnotMake to Stock,whichisbasedon demandforecast.While
inventoryiskepttoa minimum,productscanbe suppliedwithshortleadtimesandat highspeed.At
the pointwhere "Pull type"startstosupplyoperationstriggeredbyactual demand,itislike anelevator.
An elevatorstartswhenabuttonispressedevenif there isonlyone passenger.Onthe otherhand,the
"Pushtype"can be consideredasan escalator.Anescalatorcontinuestosupply(push)regardlessof
whetherthere isactual demand(passenger).Inaddition,"Pushtype"correspondstoamodel fortrains,
buses,andairplanesforwhichsupply(push)isbasedondemandforecastbytime periodandroute.
There may be variousformsbetween"Pushtype"and"Pull type"dependingoninventoryformsof
materials,workinprogress(WIP),andfinisheditemsandhow todeal withthe actual demandinsupply
chainmanagement.
In the case of sushi,there are boxedsushi soldinashop,sushi orderedatthe counterin a sushi
restaurant,andsushi for whichanorder startsfrom purchasinglive fishes.The place andformwhich
fishforsushi are heldinvariesfromdownstreamtoupstreaminasupplychain.Anextreme example of
a pull-type supplychainsushi restaurantthatisunconcernedaboutleadtimesisthe one thatgoes
fishingwhenanorderisreceived.

SCM (Supply Chain Management)
"SupplyChainManagement(SCM)"istoshare informationandmanagementresourcestoeliminate the
waste of businessprocessesas muchaspossible,asone businessprocessbeyondthe wallsof
companies,organizations,anddivisionsaimingfortotal optimization.
The goal of SupplyChainManagement(SCM) isto make money,i.e.toincrease cashflow.Tokeepa
companyinbusinessthe mostimportantthingistoincrease the flow of cash,whichisthe bloodof the
companyas a livingentity.Accountingprincipleprofitisnow notenoughfora companyand posting
profitthat doesnotincrease cashflowwill jeopardizethe managementof the companyinthe deflation
era of today.
Supplychainmanagementsynchronizesdemandwithabusinessunitasa whole byusing
materials/partsandresource capacitysuchas machinesandworkersandconsideringconstraints
(bottlenecks) toincrease the flowfrommaterials/partssupplytoproductselling,i.e.the cashflowspeed
called"throughput".
The three major elementsof supplychainmanagementare demand,materials,andresource capacity
and the goal of supplychainmanagementistoincrease the cash flow speedbysynchronizingbusiness
processesbasedonconstraints.Indexesof the managementare neithercostnor efficiency,whichare
traditional accountingconcepts,butthroughput(itemflow),inventory,andexpenseaimingfortotal
optimization.
In short,supplychainmanagementiscashflow management.Inthe age of mega-competitionwhere
marketsand competitorsexpandglobally,supplychainmanagementisanindispensablemeasure fora
companyto survive.Supplychainmanagementisaconceptthat challengesthe conventional
managementindexinwhichnetprofitmaybe postedbylegallycapitalizingexpensesevenif market
valuesof productsdecrease (the same activityas"stockshuffling"bysecuritiescompanies).Supply
chainmanagementisalsoa managementtool thatprovidesatheoretical base tobuildastrategic
relationshipsuchasa virtual corporationinglobal supplychainmanagement.
MTS (Make to Stock)
In MTS (Make to Stock),productsare manufacturedbasedondemandforecasts.Since accuracyof the
forecastswill preventexcessinventoryandopportunitylossdue tostockout,the issue here ishowto
forecastdemandsaccurately.
MTS (Make to Stock) literallymeanstomanufacture productsforstockbasedondemandforecasts,
whichcan be regardedas push-type production.MTShas beenrequiredtopreventopportunitylossdue
to stockoutand minimizeexcessinventoryusingaccurate forecasts.Inthe industrializedsocietyof mass
productionandmass marketing,thisforecastmassproductionurgedstandardizationandefficient
businessmanagementsuchascost reduction.

As an economyexpands,the income of consumersincreasesandsodemandalsocontinuously
increases.Demandchangesaccordingtothe boomand bustcycle of the economy.Evenif demand
decreasesandinventoryincreases,inventorywill turnintocashone daywhendemandrecovers.
Therefore,the maintheme of businessmanagementishow topredictthe future basedonthe demand
fluctuationcycle of the past.Inspecific,the developmentof a production/inventorymanagement
systemisneededtoimprove managementefficiencyby,forexample,settingsafetystock,optimal
production,andorderingpointsbasedonleadtimesof material procurement,production,anddelivery
as well asdemand forecasts.
If demandcan be accuratelyforecastedtosome extentthenthereisnoproblemincreatingaforecast
productionschedule.If MTO (Make To Order) islike anelevatorbecause MTOstarts byreceivingan
orderas an elevatorstartsby pressinga button,MTS (Make to Stock) islike atrain schedule (supply
schedule) forwhichthe numberof passengers(forecastdemand)foreachtime periodcanbe
prospectedfromthe pastdata. Most of dailynecessitiessuchasprocessedfoods,sundries,andtextiles
are MTS-type productsand quickresponse toconsumers'needs(i.e.fillingretailer'sinventory) will
minimize opportunityloss.
One issue of MTS isto handle supplymanagementsoasnotto have excessinventory.Therefore,small-
batch supplyshouldbe frequentlyperformedbypull-type demandsuchasQR (quickresponse),ECR
(efficientconsumerresponse),CRP(continuousreplenishmentprogram),andVMI(vendormanaged
inventory).Bydoingso,productflowwillaccelerate andcashflow will increase.Changingpush-type
MTS to pull-typesupplychainmodelssuchasCRPand VMI isthe keyto successful supplychain
management.
MTO (Make To Order)
MTO (Make to Order) isa manufacturingprocessinwhichmanufacturingstartsonlyafteracustomer's
orderis received.Formsof MTOvary, forexample,anassemblyprocessstartswhendemandactually
occurs or manufacturingstartswithdevelopmentplanning.
Manufacturingafterreceivingcustomer'sordersmeanstostart a pull-type supplychainoperation
because manufacturingisperformedwhendemandisconfirmed,i.e.beingpulledbydemand.The
opposite businessmodel istomanufacture productsforstockMTS (Make to Stock),whichispush-type
production.There are alsoBTO (BuildtoOrder) andATO (AssembleToOrder) inwhichassemblystarts
accordingto demand.
There are variousmodelsforMake To Order.For example,insome cases,the processof assembling
preparedpartsstarts whenactual demandoccurs.Or, inother cases,the productionprocessstartswith
the obtainingof materialsandparts,or furtherbackfrom developmentdesigning(engineering).
Assemblingafterreceivingacustomer'sordersis"ATO(Assemble ToOrder)"andstartingwith

developmentdesigningis"ETO(EngineerToOrder)".Constructionbygeneral contractorsandplant
constructionbyengineeringcompaniesare categorizedasETO.
Pull-typeproduction,suchasMTO, BTO, ATO, andETO, is a businessmodel of the assemblyindustryin
whichthe quantitytoproduce per productspecificationisone oronlya few.Forexample,construction,
plantconstruction,aircraft,vessels,bridges,andsoon.From the viewpointof supplychain
management,ithasbeenproventhatthose whocan satisfydue datespromisedwithcustomersandcan
shortenleadtimes will have ancompetitive advantage.Evenif the productionquantityincreases,if
push-type productsthatare manufacturedbyMTS can be manufacturedbypull-typeproductionsuchas
MTO andATO modelsusingSCMsoftware or informationtechnology,thenthere willbe greater
businessopportunities.
ATO (Assemble ToOrder) of computersbyDell Inc.andproductionof sportsbicycle byNational Bicycle
Industrial Co.,Ltd.are examplesof creatinganew businessmodelbymatchingthe diversificationof
products withATO,BTO, ETO, and withnew-style marketing.
National Bicycle Industrial Co.,Ltd.says
"We can deliver a custom-madebicycleto you within two weeks."
SolectronCorporationsays
"We can assemblethecomputeryou requested and deliver it within a week."
These are examplesof businessmodelsinwhichnew supplychainmodelsare createdasmarketing
models.
IE/OR (Industrial Engineering/Operations Research)
IE (Industrial Engineering),aconceptforimprovingthe efficiencyof production,isthe drivingforce that
bringssuccessinmass productiontoday.OR(OperationsResearch) isanapproach to explore
optimizationusingstatistical figuresandlinearprogramming.Bothof themare includedinsupplychain
flow.
IE (industrial engineering)isa conceptthat was firststructuredas a conceptto enable the improvement
of productionefficiencyduringthe time whenvariousscientificapproachesstartedbyTaylorwere tried
out to improve productionefficiency.Duringthe Civil War,the U.S.promoted the standardizationof
firearmsandparts of munitions.Asaresult,the U.S.succeededinthe massproductionof parts by
realizinglow-costandshort-leadtime production.The engineof thissuccesswasthe conceptof IE. IE
was takenoverbyHenry Ford for producingthe Model T Ford andthat was a startingpointof growth
for autoindustry.
The base of businessadministrationandmanagementconsultingmethodologyof todaystartedwithIE,
and goingthroughWorldWar I andWorld War II, the ammunitionindustryasa heavyindustryand
modernindustrial societywere created.We canalsosay that IE is a technologythatcombinesproduct-
specificmanufacturingtechniquesandproducttechnologiesorthatsynchronizesmanagement
resources.If IT (informationtechnology)canbe usedformany industriestogetherwithIE,information

and communicationwill be combined,leadingtothe flow of supplychainmanagementsuchasCALS,
BPR, ECR,and QR.
OR (operationsresearch)startedwithamilitarytermof "operationsresearch".Itisa methodof working
out an optimal strategyusingstatisticalfigures,LP(linearprogramming),andDP(dynamic
programming).Itmakesuse of mathematicsandcomputersastoolsfor modeling.The Lanchester
theoryiswidelyappliedforoperationsresearchinbusiness.Withthe principlethatthe square of
militarystrengthisproportionaltothe consumptionrate of the enemy'sfightingpower,the Lanchester
theorytriestodetermine the quantity,places,andtimingof inputtingmilitaryresourcesinorderto
synchronize the resources.
The Lanchestertheorydrewthe attentionof the retail distributionindustryandthe assumptionthatthe
square of the salesfloorareaisproportional tothe abilitytogetcustomerswastheorized,whichhad an
impactbase policies.
Making decisionsinsupplychainmanagementastothe quantity,places,andtimingof inputting
managementresourcessuchasmachinesandworkersisalsopart of the synchronizationof
managementresources.Atpresent,the directionof IE/ORseemstobe leadingtosupplychain
managementintermsof communicationandinformationtechnologysuchasthe InternetandEDI
(electronicdatainterchange).

Work measurement

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