MBC L 8-9

Work Measurement

• is series of techniques employed to evaluate the time needed for completion of a task by an average human worker.

• Often called time study.

• Largely concerned with human worker output.

• It considers any automated work output.

Standard Time

• the time required by qualified and well-trained person working at a normal time pace to do a specified task.

• Any worker who exceeds this is said to be working slow.

• Includes a certain allowance, to provide for a worker’s personal needs, fatigue, and unavoidable delays during shift.

• Important aspect since workers are paid according to their work output in hours in many organizations.

Standard Time

• the time required by qualified and well-trained person working at a normal time pace to do a specified task.

• Any worker who exceeds this is said to be working slow.

• Includes a certain allowance, to provide for a worker’s personal needs, fatigue, and unavoidable delays during shift.

• Important aspect since workers are paid according to their work output in hours in many organizations.

Work Measurement

• it helps in the determination of schedules and the planning of work.

• It can aid in determining standard costs.

• It is fairly helpful in determining the amount of wage that needs to be paid for labor, and help an organization to ensure that it is paying its employees appropriately for their labor.

Time standard

• serves in determining the number of staff needed to accomplish a particular amount of workload.

• Serve the highly important objective of helping organizations evaluate their employee’s performance.

Employees’ Fair Day’s work

Analyzing the sum of their standard time of the entire task accomplished during the day and checking where it stands.

Normal Time

• it is the expected time required to perform some work activity at normal pace, under normal operating conditions, and using a prescribed method.

• A pace that can be consistently performed by the average employee without undue fatigue under normal operating condition.

• Observed times must be adjusted by a factor that accounts for the worker’s effort.

Normal Time = observed time x performance rating factor

Normal Times formula

Performance Rating Factor

• is an adjustment by the person doing the time study as to whether the employee is working at the normal pace. (1 or 100)

Normal Time

• must be also adjusted for personal time and unavoidable delays.

• Allowances includes time for labor fatigue and personal needs, equipment breakdown, rest periods, information delays, and so on.

• Standard time is ______ adjusted for allowances.

10 to 20%

Most allowance factors are in the range of ______

Standard Time = normal time (1 + allowance factors)

Standard Time formula

Work under “repetitive”

Element of operations will repeat many times during the study.

Work under “non-repetitive type”

• work cycle is hardly repeated.

1. Stop watch time study

2. Synthesis

3. Predetermined motion study time study (PMTS)

4. Analytical estimating

5. Comparative estimating

6. Activity sampling

7. Time study

8. Activity sampling and rated activity sampling

9. Synthesis from standard data

10. Pre-determined motion time system

11. Estimatng

12. Analytical estimating

13. Comparative estimating

Methods of work measurement

Work Sampling

• a highly efficient system through which needed information can be obtained in less time, and at a lower cost, compared to other methods of work measurement.

• Also known as activity sampling, ratio-delay study, random observation study, snap-reading method, and observation ratio study.

• It’s based on the law of probability.

Supply Chain Management

• is the management of a network of interconnected business involved in the provision of product and service packages required by the end customers.

• spans all movement and storage of raw material, work-in-process inventory, and finished goods from point of origin to point of consumption.

SCM

• is the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across these businesses within the supply chain, for the purposes of improving the longterm performance of the individual companies and the supply chain as a whole.

• Requires a total system view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the customer.

SCM

• encompasses the companies and the business activities needed to design, make, deliver, and use a product or service.

• business depends on their supply chains to provide them with what they need to survive and thrive.

• Every business fit into one or more supply chains and has a role to play in each of them.

Production

• driver can be made very responsive by building factories that have a lot of excess capacity and that use flexible manufacturing techniques to produce a wide range of items.

Inventory

• responsiveness here can be had by stocking high levels of inventory for a wide range of products.

Location

• approach that emphasizes responsiveness would be one where a company opens up many locations to be physically close to its customer base.

• Has used _____ to be very responsive to its customers by opening up lots of stores in its high-volume markets.

Transportation

• responsiveness can be achieved by a _______ mode that is fast and flexible.

• Many companies that sell products through catalogues or over the internet are able to provide high levels of responsiveness by using ______ to deliver their product, often within 24 hours.

Information

• the power of this driver grows stronger each year as the technology for collecting and sharing information become more widespread, easier to use, and less expensive.

1. Improve business performance

2. Improved system capability

3. Improved supply chain effectiveness

4. Improved channel management and communication

5. Supply chain integration

6. Supply chain information sharing and visibility

7. Improved supply chain partnerships

8. Improved productivity

Benefits of SCM

1. Sales and operations planning

2. Collaborative planning, fulfillment, and replenishment

3. Concurrent engineering

4. Extended ERP

5. Integrated supply planning

Elements of SCM

Voluntary Interindustry Commerce Standard (VICS) committee

• originally defines Collaborative Planning, Forecasting, and Replenishment (CPFR)

• A registered trademark of VICS And consist of leading retailers, manufacturers, and solution providers.

• Defines CPFR as business practice wherein trading partners use IT and a standard set of business procedures to combine their intelligence in the planning and fulfillment of customer demand.

Collaborative planning, forecasting, and replenishment (CPFR)

• business practice wherein trading partners use IT and a standard set of business procedures to combine their intelligence in the planning and fulfillment of customer demand.

• originally defined by the VICS committee

1. Develop guidelines a roadmap for various collaborative scenarios, which integrate demand and supply planning and execution.

2. Continue to improve on existing guidelines, tools and critical first steps that enable CPFR implementation.

Mission of VICS CPFR commitee

1. Retails event collaborative impact of such event

2. Distribution center (DC) replenishment

3. Store Replenishment

4. Collaborative Assortment Planning

4 most popular deployments

Distribution Center (DC) replenishment

• make to-demand policy, while allowing retailer minimize their inventory liability and stock out risk.

Store replenishment

Capitalize on the insights of both the retailers and manufacturers to deliver optimized replenishment.

Collaborative assortment planning

• is applicable for industries where product lifecycle is short and demand pattern follow a season’s rhythm such as fashion apparel and accessories.

Concurrent Engineering

• product design and development is one of the most effective tools for an organization to differentiate itself from its competitors.

• Defined by APICS as “a concept that refers to the participation of all the functional areas of the firm the product design activity including suppliers and customer with the intent to enhances the design with the inputs of all the key stakeholders so that a product can be quickly brought to the marketplace while maximizing quality and minimizing costs.”

American Production and Inventory Control Society (APICS)

• is not-for-profit international education organization offering certification programs, training tools, and networking opportunities to increase workplace performance.

• Purpose fostering the advancement of end-to-end supply chain management.

Supplier Rationalization

• firm may have more suppliers than it may actually needs.

Vendors Managed Inventory

• where inventory is managed by the vendor instead of the consuming party.

Consignment Process

• model of supplier managed inventory.

• Also known as Vendor Owned Inventory (VOI).

• Supplier physically giving material to the customer at the time an point of use and until that point, supplier retains the cost of the holding the inventory and its title.

1. Supplier Rationalization

2. Vendors Managed Inventory

3. Consignment Process

Integrated Supply Planning

Main Logistics Target

• is to get the best and effective ways to transfer the resources and products from first place to destiny and the customer.

• The main steering of this activities is to satisfy customer demand and offer the suitable deal possible to hols the customers and reach new ones.

Logistics Viewpoints

• inbound and outbound logistic.

1. Procurement

2. Production

3. Distribution

4. After Sales

5. Disposal

Logistics Fields

Procurement

• market research, requirements, make or buy decision, supplier.

Production

• connect procurement to distribution, organizational concept layout planning, production planning and control.

Distribution

• delivery of finished products to the customer.

After Sales

• return good and complains.

Disposal

• disposal of waste product during the operation of a business.

1. Third Party

2. Fourth Party

3. Emergency

4. As a profession

Outsourcing logistic

Third Party

• involves using external organization to execute logistics activity.

Fourth Party

Is an integrator that assembles the resources.

Emergency

Specific time critical modes of transport used to move goods or object rapidly in the event of an emergency.

As a profession (Outsourcing logistics)

• certified by professional association like shipping lines, airport, or freight forwarder.

Electronic Data Interchange (EDI)

• is an electronic transfer of a standardized business transaction between a sender and receiver computer, over some kind of provate network or value-added network (VAN).

E-commerce

Electronics commerce is sharing information, maintaining business relationship, and conducting business by means of telecommunication networks.

1. Production Planning

2. Purchasing

3. Materials Management

4. Distribution

5. Customer Service

6. Sales Forecasting

Key supply chain activities

Production planning

Is the planning and allocation of. Materials, workers, and workstation to fulfill manufacture orders on time.

Purchasing

Activity of acquiring goods or services to accomplish the goals of an organization.

Materials management

• planning and execution of supply chains to meet the materials requirement of a company or organization

Distribution

• managing the movement of goods, whether it be from a wholesaler to a retailer or from a retailer to a customer.

Customer Service

• process of ensuring customer satisfaction with a product or service.

Sales forecasting

• predicting of future sales revenue.

1. Cost efficiency

2. Changes in the distribution system

3. Customer orientation’

4. Shipment tracking

5. Shipping notice

6. Freight auditing

7. Shipping documentation and labeling

8. Online shipping inquiry

E-commerce impacts supply chains managements in variety of keyways including the following:

1. Challenge of managing supply chains

2. Outsourcing creates supply chain visibility challenges

3. Going beyond supply chain visibility to rapid response

4. High value solutions for supply chain management

5. IT service are stretched, but operation performance goals are as important as ever.

6. Supply chain management tools meet software as a service

7. On demand service production optimize value from the data center

8. High value solutions combines with improvement driver service drive real value

9. Steps to optimizing supply chain management

Requirements for supply chain management