Bua Chapter 9 / 10

Frank and Lillian Gilbreth were a husband-and-wife team of industrial engineers who expanded on Taylor's motion studies to develop their principle of motion economy

, in which every job could be broken down into a series of elementary motions. The practical significance of Taylor's and the Gilbreths' theories today can be seen every time you observe fast-food workers, airline baggage handlers, or race-car pit crews.

Assembly Line -

As series of steps for assembling a product, each step using the same parts, performed by the same worker. Henry Ford's assembly line.

Improving Production

CAD, CAM, and CIM Computer-Aided Design Computer-Aided Manufacturing Computer-Integrated Manufacturing Flexible Manufacturing Systems (FMS) Lean Manufacturing (eliminating waste in the production process, using the fewest steps, fewest resources) Mass Customization (Dell computers)

Purchasing

Dealing with suppliers - choice to use many suppliers to ensure a constant supply at the right price, or a few trusted suppliers who provide consistent quality, on time, with a price that acceptable to both the supplier and the buyer Inventory & inventory control Supply Chain Management Just-in-Time (JIT) Materials Requirement Planning (MRP) Enterprise Resource Planning (ERP)

Goal-Setting Theory & MBO

Employees can be motivated by goals that are: Specific Challenging Achievable Management by objectives (MBO)

Mechanization -

The use of machines to do the work formerly performed by people. "The Cotton Gin" separated seed from cotton.

Fredrick Taylor is the founder of scientific management.

This theory refers to the scientific study of work methods to improve the productivity of individual workers. Taylor based his system on time-motion studies, in which he broke down each worker's job into basic physical motions and then trained workers to use the methods of their best-performing coworkers.

Standardization -

Using uniform parts for easy interchange, reduced the need for craftsmen. Interchangeable gun parts.

Theory X

assumes workers to be irresponsible, resistant to change, lacking in ambition, hating work, and preferring to be led rather than to lead.

Production Processes

is the transferring of materials into finished products. Form utility is the value that people add in converting resources—natural resources, capital, human resources, entrepreneurship, and knowledge— into finished products. This happens in two ways: Breaking Down Materials: Analytic Transformation The process in which resources are broken down to create finished products is known as analytic transformation. Combining Materials: Synthetic Transformation The process in which resources are combined to create finished products is called synthetic transformation.

Theory Y

makes the positive assumption that workers are capable of accepting responsibility, self-direction, and self-control and of being imaginative and creative. Theory Y leads to empowerment, in which management makes employees more involved in their jobs by giving them the authority and responsibility to make decisions.

Ouchi: Theory Z

is a motivational approach that emphasizes involving employees at all levels, giving them long-term job security, allowing collective decision making, emphasizing slow evaluation and promotion procedures, and treating workers like family.

Mass Production -

the production of uniform goods in great quantities (Cars, jeans, canned soups)

Automation -

using machines as much as possible rather than human labor to perform production tasks (Robotics used on car production)

The Hawthorne effect

— if they thought managers cared about their welfare and that supervisors paid special attention to them. This was begun by an investigation by Elton Mayo. The Hawthorne studies led to the so-called human relations movement in the 50s and 60s, which focused more on psychological motivation rather than work steps in increasing productivity.

There are five reasons why it's important to motivate employees, as Panel 10.1 illustrates: You want employees to:

1. Join - You want to motivate talented prospective workers to hire on with you. 2. Show up - You want employees to be motivated to come to work — to show up on time. 3. Stay - You don't want good people to leave. 4. Perform - You want them to be motivated to be highly productive. 5. Do extra - You hope they will be good organizational citizens and perform extra tasks beyond the regular call of duty.

Job enrichment is the idea of finding the right fit between the job and the person.

Fitting people to jobs Job simplification involves reducing the number of tasks a worker performs. Fitting the job to the person Job enlargement consists of increasing the number of tasks in a job to improve employee satisfaction, motivation, and quality of production. Job enrichment consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement.

A PERT chart

PERT stands for program evaluation and review technique—is a diagram for determining the best sequencing of tasks. Identify the Tasks. Arrange Tasks in Order. Estimate Time for Each Task. Diagram the Task Sequences and Times. Compute the Critical Path: the sequence of tasks that takes the longest time to complete.

Operations Management

Production or operations refers to any process that takes basic resources and transforms then into finished products-inputs into outputs. Resources are the factors of production include natural resources, capital, human resources, entrepreneurship, and knowledge. Finished products are goods or services.

Goal-setting Theory

SMART Goals are: Specific Measurable Achievable Realistic/Results-oriented Timely/Time-bound

Six Sigma

Six Sigma is a management philosophy developed by Motorola that emphasizes setting extremely high objectives, collecting data, and analyzing results to a fine degree as a way to reduce defects in products and services. The Greek letter sigma is sometimes used to denote variation from a standard. The philosophy behind Six Sigma is that if you measure how many defects are in a process, you can figure out how to systematically eliminate them and get as close to perfection as possible.

Vroom's Expectancy Theory

Victor Vroom offered another motivational theory called the Expectancy Theory. This theory proposes that people are motivated by (1) how strongly they want something, and (2) how likely they think they are to get it. See Panel 10.5 on page 299 for an illustration of the three assessments or calculations of Expectancy Theory: Assessment 1 (expectancy): "Will I be able to accomplish a certain task?" (if yes, I'm motivated) Assessment 2 (instrumentality): "If I accomplish the task, what kind of reward will I get?" (if reward is known, I'm motivated) Assessment 3 (valence): "How much do I want the reward?" (If reward is ok, I' m motivated)

Motivation

consists of the psychological processes that induce people to pursue goals. Some ways to motivate employees are through extrinsic and intrinsic rewards: An extrinsic reward is the payoff, such as money or recognition, a person receives from others for performing a particular task. An intrinsic reward is the satisfaction, such as a feeling of accomplishment, a person receives from performing the particular task itself.

The conversion process can be

continuous or intermittent. A continuous process is a production process in which goods or services are turned out in a long production run on an ongoing basis over time. An intermittent process is a production process in which finished goods or services are turned out in a series of short production runs and the machines are changed frequently to make different products.