The document discusses techniques for improving value for money (VFM) for customers through improving productivity using methods from industrial engineering. It describes conducting a systematic examination of work methods to develop more effective and efficient processes, setting performance standards, and using time and motion studies to establish standard times for tasks. The overall goal is to increase productivity and efficiency while improving working conditions.

1. Apurb Sinha Vibha Garg Executive PGDM (2010-11)

2. Organizational objective VFM for customers Improve overall productivity

3. Q : Quality S : Service R : Customer relationship P : Price L : Lead time

4. Output : Good or services Input : Man, Machine, Material, Information, Capital

5. Technique of improving VFM Productivity Major discipline of Industrial engineering

6. The systematic examination of the method of carrying on activities so as to improve the effective use of resources and to set up standards of performance for the activities being carried out.

8. Systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing cost

9. Select job/process to be examined & observe current performance high process cost, bottlenecks, tortuous route, low productivity, erratic quality Record & document facts activities performed operators involved - how etc equipment and tools used materials processed or moved Apply critical examination - challenge job components & necessity (purpose, place, sequence, method). Develop alternative methods & present proposals Document as base for new work system Install, monitor (slippage) & maintain

10. Improvement in use of all inputs Economy in human effort Layout improvement Improvement in design of plant and machinery Improvement in safety standards and procedures Better working environment

11. Outline process chart Flow process chart Travel chart Multiple activity chart Data flow diagrams

12. High operating cost High wastage & scrap Excessive movement of materials and workmen Excessive production bottlenecks Excessive rejections and rework Complaints about quality Complaints about poor working condition Increasing number of accidents Excessive use of overtime

13. The application of technique designed to establish time for a qualified worker to carry out a task at a defined rate of working at a defined level of performance Fair Day’s work

14. Why define/measure work? standard, reliable methods control performance & quality obtain predictability defined labour costs & performance set pay rates & provide data for effort-reward relationship Why set standard times assumptions about competent, motivated workers be clear about "allowances" & fatigue

15. Finding ineffective time in an activity Setting standards (norms) for output level Performance evaluation – capability management Capacity management Comparing work methods Scheduling – facility operations Establishing wage incentives schemes

16. Stop – watch time study Work sampling Predetermined times standards Standard data

17. Techniques to establish the time for a qualified, motivated worker to carry out a task at a defined rate of working Example – Cricket pitch curator

18. One of the most common types of work measurement is time study For example - Purpose An international coffee shop chain may want to find out how long a barista should take to make a specific coffee drink. Some of the stated condition may include using cold milk that needs to be steamed, rather than already steamed milk.

19. Observations A qualified practitioner should observe the employee using a time measurement device. The observer should also assess the quality of work Observed Person The observed person in the time study must be fully trained in the measured task

20. Employees are your company's life. Providing incentives for employees can boost productivity and confidence in the workplace, especially in a poor economy

23. Customers place pizzas orders A single order may contain several pizzas Each customer is in one of many service areas Each customer is serviced by one of 6 outlets Each customer is allocated an outlet depending on their area location All pizzas are made at all outlets

24. All work is different - idiographic vs/ nomothetic Large firm/employer and large engineered systems only Work study is obsolete It is exploitative of workers It has never been and never will be accepted here

25. Increased productivity and increased efficiency Reduced manufacturing costs Improved work place layout Better manpower planning and capacity planning Fair wages to employees Better working conditions for employees Improved workflow Reduced material handling costs Better industrial relations and employee morale Provides better job satisfaction to employees

26. Human capital managers Capability managers Capacity managers Project managers Consultants Leaders

27. F W Taylor(1856 – 1915) Father of scientific measurements and IE Criticism Raising standards