9. Specialization in Business (Table 7.1) For Management: 1. Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality For Labor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for self-fulfillment
10. Disadvantages For Management: 1. Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality For Labor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for self-fulfillment
18. Process Flowchart Symbols Operation: An activity directly contributing to product or service Storage: Store of the product or service Inspection: Examining the product or service for completeness, irregularities, or quality Transportation: Moving the product or service from one location to another Delay: Process having to wait
19. Figure 7-2 FLOW PROCESS CHART Job Requisition of petty cash Details of Method ANALYST D. Kolb PAGE 1 of 2 Operation Movement Inspection Delay Storage Requisition made by department head Put in “pick-up” basket To accounting department Account and signature verified Amount approved by treasurer Amount counted by cashier Amount recorded by bookkeeper Petty cash sealed in envelope Petty cash carried to department Petty cash checked against requisition Receipt signed Petty cash stored in safety box
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21. Worker-Machine Chart – 1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 Key in customer data on card Feed data card in Position customer for photo Take picture Inspect card & trim edges Idle Idle Idle Idle Photo/card processed Accept card Begin photo process 2.6 0.4 1.0 0.6 3.4 1.2 Job Photo-Id Cards Date 10/14 Time Time (min) Operator (min) Photo Machine
42. t n = time required for n th unit produced t 1 = time required for first unit produced n = cumulative number of units produced b = , where r is the learning curve % (decimal coefficient) Time required for the n th unit = t n = t 1 n b where:
43. Learning Curve Effect Contract to produce 36 computers. t 1 = 18 hours, learning rate = 80% What is time for 9th, 18th, 36th units? t 9 = (18)(9) ln(0.8)/ln 2 = (18)(9) -0.322 = (18)/(9) 0.322 = (18)(0.493) = 8.874hrs t 18 = (18)(18) ln(0.8)/ln 2 = (18)(0.394) = 7.092hrs t 36 = (18)(36) ln(0.8)/ln 2 = (18)(0.315) = 5.674hrs
44. Learning Curve for Mass Production Job Standard time End of improvement Units produced Processing time per unit