The Generic Process For Developing New Products

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02 Nov 2017

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Product development is the process of creating a new product to be sold by a business or enterprise to its customers. In the document title, Design refers to those activities involved in creating the styling, look and feel of the product, deciding on the product's mechanical architecture, selecting materials and processes, and engineering the various components necessary to make the product work. Development refers collectively to the entire process of identifying a market opportunity, creating a product to appeal to the identified market, and finally, testing, modifying and refining the product until it is ready for production. A product can be any item from a book, musical composition, or information service, to an engineered product such as a computer, hair dryer, or washing machine. This document is focused on the process of developing discrete engineered products, rather than works of art or informational products.

The task of developing outstanding new products is difficult, time-consuming, and costly. People who have never been involved in a development effort are astounded by the amount of time and money that goes into a new product. Great products are not simply designed, but instead they evolve over time through countless hours of research, analysis, design studies, engineering and prototyping efforts, and finally, testing, modifying, and re-testing until the design has been perfected.

Few products are developed by a single individual working alone. It is unlikely that one individual will have the necessary skills in marketing, industrial design, mechanical and electronic engineering, manufacturing processes and materials, tool-making, packaging design, graphic art, and project management, just to name the primary areas of expertise. Development is normally done by a project team, and the team leader draws on talent in a variety of disciplines, often from both outside and inside the company. As a general rule, the cost of a development effort is a factor of the number of people involved and the time required to nurture the initial concept into a fully-refined product. Rarely can a production-ready product be developed in less than one year, and some projects can take three to five years to complete.

The impetus for a new product normally comes from a perceived market opportunity or from the development of a new technology. Consequently, new products are broadly categorized as either market-pull products or technology-push products. With a market-pull product, the marketing center of the company first determines that sales could be increased if a new product were designed to appeal to a particular segment of its customers. Engineering is then be asked to determine the technical feasibility of the new product idea. This interaction is reversed with a technology-push product. When a technical breakthrough opens the way for a new product, marketing then attempts to determine the idea's prospects in the marketplace. In many cases, the technology itself may not actually point to a particular product, but instead, to new capabilities and benefits that could be packaged in a variety of ways to create a number of different products. Marketing would have the responsibility of determining how the technology should be packaged to have the greatest appeal to its customers. With either scenario, manufacturing is responsible for estimating the cost of building the prospective new product, and their estimations are used to project a selling price and estimate the potential profit for the company.

The process of developing new products varies between companies, and even between products within the same company. Regardless of organizational differences, a good new product is the result a methodical development effort with well defined product specifications and project goals. A development project for a market-pull product is generally organized along the lines shown in Figure 1.

Figure 1

The Generic Product Development Process

  Concept

  Development

System-Level

Design

Detail

Design

Testing and

Refinement

Marketing

Define market

   segments

Identify Lead users

Identify competitive

   productsarrow-rh.gif (57 bytes)arrow-rh.gif (57 bytes)arrow-rh.gif (57 bytes)

Develop plan for

   product options

   and extended

   product familyarrow-rh.gif (57 bytes)

Develop

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Dev. promotion

   and launch

   materials

Facilitate

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Design

Study feasibility

   of product concepts

Develop industrial

   design concepts

Build and test

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Generate

   alternative

   architectures

Define systems

   and interfaces

Refine industrial

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Define part

   geometry

Spec materials

Spec tolerances

Industrial design

   control

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Reliability,

   performance

   and life tests

Get regulatory

   approvals

Impliment

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Manufacturing

Estimate

   manufacturing cost

Assess production

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Identify suppliers

Make/buy study

Define final

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Define processes

Design tooling

Begin tooling

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Begin supplier

   ramp-up

Refine mfg.

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Concept Development

Good concept development is crucial. During this stage, the needs of the target market are identified, competitive products are reviewed, product specifications are defined, a product concept is selected, an economic analysis is done, and the development project is outlined. This stage provides the foundation for the development effort, and if poorly done can undermine the entire effort. Concept development activities are normally organized according to Figure 2.

Figure 2

Concept Development

Identify

Customer

Needs

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Establish

Target

Sepcifications

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Generate

Product

Concepts

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Select a

Product

Concept

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Analyze

Competitive

Products

Perform

Economic

Analysis

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Concept Development

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Identify Customer Needs: Through interviews with potential purchasers, focus groups, and by observing similar products in use, researchers identify customer needs. The list of needs will include hidden needs, needs that customers may not be aware of or problems they simply accept without question, as well as explicit needs, or needs that will most likely be reported by potential purchasers. Researchers develop the necessary information on which to base the performance, size, weight, service life, and other specifications of the product. Customer needs and product specifications are organized into a hierarchical list with a comparative rating value given to each need and specification.

Establish Target Specifications: Based on customers' needs and reviews of competitive products, the team establishes the target specifications of the prospective new product. While the process of identifying customer needs is entirely a function of marketing, designers and engineers become involved in establishing target specifications. Target specifications are essentially a wish-list tempered by known technical constraints. Later, after designers have generated preliminary products concepts, the target specifications are refined to account for technical, manufacturing and economic realities.

Analyze Competitive Products: An analysis of competitive products is part of the process of establishing target specifications. Other products may exhibit successful design attributes that should be emulated or improved upon in the new product. And by understanding the shortfalls of competitive products, a list of improvements can be developed that will make the new product clearly superior to those of others. In a broader sense, analyzing competitive products can help orient designers and provide a starting point for design efforts. Rather than beginning from scratch and re-inventing the wheel with each new project, traditionally, the evolution of design builds on the successes and failures of prior work.

Generate Product Concepts: Designers and engineers develop a number of product concepts to illustrate what types of products are both technically feasible and would best meets the requirements of the target specifications. Engineers develop preliminary concepts for the architecture of the product, and industrial designers develop renderings to show styling and layout alternatives. After narrowing the selection, non-functional appearance models are built of candidate designs.

Select a Product Concept: Through the process of evaluation and tradeoffs between attributes, a final concept is selected. The selection process may be confined to the team and key executives within the company, or customers may be polled for their input. Candidate appearance models are often used for additional market research; to obtain feedback from certain key customers, or as a centerpiece of focus groups.

Refine Product Specifications: In this stage, product specifications are refined on the basis of input from the foregoing activities. Final specifications are the result of tradeoffs made between technical feasibility, expected service life, projected selling price, and the financial limitations of the development project. With a new luggage product, for example, consumers may want a product that is lightweight, inexpensive, attractive, and with the ability to expand to carry varying amounts of luggage. Unfortunately, the mechanism needed for the expandable feature will increase the selling price, add weight to the product, and introduce a mechanism that has the potential for failure. Consequently, the team must choose between a heavier, more costly product, or one that does not have the expandable feature. When product attributes are in conflict, or when the technical challenge or higher selling price of a particular feature outweighs its benefits, the specification may be dropped or modified in favor of other benefits.

Perform Economic Analysis: Throughout the foregoing activities, important economic implications regarding development expenses, manufacturing costs, and selling price have been estimated. A thorough economic analysis of the product and the required development effort is necessary in order to define the remainder of the development project. An economic model of the product and a review of anticipated development expenses in relation to expected benefits is now developed.

Plan the Remaining Development Project: In this final stage of concept development, the team prepares a detailed development plan which includes a list of activities, the necessary resources and expenses, and a development schedule with milestones for tracking progress.

System-Level Design

System-level design, or the task of designing the architecture of the product, is the subject of this stage. In prior stages, the team was focused on the core product idea, and the prospective design was largely based on overviews rather than in-depth design and engineering. Once the development plan is approved, marketing may begin to develop ideas for additional product options and add-ons, or perhaps an extended product family. Designers and engineers develop the product architecture in detail, and manufacturing determines which components should be made and which should be purchased, and identifies the necessary suppliers.

The product architecture defines the product in chunks, or the primary functional systems and subsystems, and how these systems are arranged to work as a unit. For example, an automobile is comprised of a body and a chassis with an engine, a transmission, final drive, frame, suspension and braking system. The architecture of an automobile design determines the platform layout, whether the vehicle is front-wheel-drive or rear-wheel-drive, the size and location of the engine, transmission and final drive, the overall design of suspension system, and the layout and type of other necessary subsystems such as brakes, wheels, and steering. The architecture may determine the layout of the exhaust system, but it would not provide the detailed engineering needed to determine the diameter and thickness of the exhaust pipe, the detailed design of mufflers, nor the engineering of motor mounts and exhaust hangers needed to isolate vibrations from the passenger compartment.

The architecture of the product, how it is divided into chunks and how the chunks are integrated into the total product, impacts a number of important attributes such as standardization of components, modularity, options for change later on, ease of manufacture, and how the development project is divided into manageable tasks and expenses. If a family of products or upgrades and add-ons are planned, the architecture of the product would determine the commonality of components and the ease with which upgrades and add-ons can be installed. A system or subsystem borrowed from another product within the company's line will economize on development, tooling and manufacturing costs. With outsourced components, the supplier may contribute much of the associated design and engineering.

Detail Design

Detail design, or design-for-manufacture, is the stage wherein the necessary engineering is done for every component of the product. During this phase, each part is identified and engineered. Tolerances, materials, and finishes are defined, and the design is documented with drawings or computer files. Increasingly, manufacturers and developers are turning to three-dimensional solid modeling using programs such as Pro-Engineer. Three-dimensional computer models form the core of today's rapid prototyping and rapid manufacturing technologies. Once the database has been developed, prototype components can be rapidly built on computerized machines such as CNC mills, fused deposition modeling devices, or stereo lithography systems.

Testing and Refinement

During the testing and refinement stage, a number of prototypes are built and tested. Even though they are not made from production components, prototypes emulate production products as closely as possible. These alpha prototypes are necessary to determine whether the performance of the product matches the specifications, and to uncover design shortfalls and gain in-the-field experience with the product in use. Later, beta prototypes are built from the first production components received from suppliers.

Production Ramp-up

During production ramp-up, the work force is trained as the first products are being assembled. The comparatively slow product build provides time to work out any remaining problems with supplier components, fabrication, and assembly procedures. The staff and supervisory team is organized, beginning with a core team, and line workers are trained by assembling production units.

Technology-Push Products

The generic development process is used with technology-push products, but with slight modification. With technology-push products, the company acquires or develops a new technology and then looks for appropriate markets in which to apply the technology. Consequently, an extra phase is added at the beginning during which the new technology is matched to an appropriate market opportunity. When the match has been made, the generic development process is carried out as described.

Models and Prototypes

The terms prototype and model are often used interchangeably to mean any full-scale pre-production representation of a design, whether functional or not. I prefer to use the term model to describe a non-functional representation and the term prototype to describe a functional item. An appearance model is a full-scale, non-functional representation that looks, as closely as possible, identical to the prospective new product. Modeling and prototyping serve a variety of purposes throughout the development effort.

Early on, engineering prototypes may be built of systems and subsystems to bench-test performance and debug the system before proceeding with the design. Appearance models prove out styling and ergonomics. A full-scale mockup of an automobile interior, for example, provides a real-world test of ease of ingress, seating position, access to controls, visibility and appearance. Models and prototypes are necessary because of the limitations of theoretical work and artificial mediums. A product can be designed and put into simulated use on computer, but one doesn't really know how it will work until the item is built and tested in its intended environment. Prototyping and modeling efforts begin virtually at the inception of the project and continue into production ramp-up.

The Role of Industrial Design

According to the definition given by the Industrial Designers Society of America (IDSA), industrial design (ID) is the "professional service of creating and developing concepts and specifications that optimize the function, value and appearance of products and systems for the mutual benefit of both user and manufacturer." An industrial designer combines artistic form with engineering necessities. The ID practitioner blends the human meanings expressed through form, color, and texture with the mechanical realities of function in a way that broadcasts a coherent and purposeful message to those who experience the product. Good industrial design can create additional product benefits through the selection of materials and the architecture of the design. Industrial designers have extensive training in art, as well as training in basic engineering, manufacturing and fabrication processes, and marketing practices. Dreyfuss (1967) lists five critical goals that industrial designers bring to a team when developing new products:

Utility: The product's human interfaces should be safe, easy to use, and intuitive. Each feature should be shaped so that it communicates its function to the user.

Appearance: Form, line, proportion, and color are used to integrate the product into a pleasing whole.

Ease of Maintenance: Products must also be designed to communicate how they are to be maintained and repaired.

Low Costs: Form and features have a large impact on tooling and production costs, so they must be considered jointly by the team.

Communication: Product designs should communicate the corporate design philosophy and mission through the visual qualities of the products.

Industrial design is costly and the value per dollar spent is often difficult to quantity. The value becomes obvious, however, when one experiences the results. When the purchaser intuitively understands a product's function, and senses the quality of its construction and the integrity of the company that produced it, these subliminal messages are normally the result of good industrial design.

Industrial designers usually become involved in a development project almost at the outset. Enthusiasm within the development team increases when industrial designers develop an attractive concept early in the project. When members have a real concept to work towards, the effort ceases to be a purely cerebral exercise, and instead, comes alive with personal meaning.

Value Analysis

What is Value Analysis?

It is an orderly and creative method to increase the value of an item. This " item" can be a product, a system, a process, a procedure, a plan, a machine, equipment, tool , a service or a method of working. Value Analysis, also called Functional Analysis was created by L.D. Miles.

The value of an item is how well the item does its function divided by the cost of the item (In value analysis value is not just another word for cost):

 

value of an item = performance of its function / cost

 

An item, that does its function better than another, has more value. Between two items that perform their function equally well, the one that costs less, is more valuable.

The "performance of its function" could include that it is beautiful (where needed).

Do not be surprised if as a result of value analysis the cost of an item is less that half of its previous cost.

Select the item to be studied and form a study group

To make a value analysis we form a study group of 4 to 6 persons, preferably each with different knowledge, with different backgrounds. They meet in a room free from interruptions.

Then we select the item to be studied. The item should be one that gives the impression that its cost is too high or that it does not do its function well.

Value Analysis

The value analyst should always be aware of functions, not of products, shapes, or processes. The main function is what the item does, is that which somebody wanted to archive by creating the item. Express this function (if possible) with just two words, a verb and a noun.

If the item is composed of various parts, it is useful to ask for the function of each part, and how they contribute to the main function of the item.

Do not be distracted by mere aggregate functions such as the rubber on a pencil's end or the ice producing part of a refrigerator. These were functions added since it was economical or easy to do so. They have no relationship with the main function.

Gather information

Find the main function and the secondary functions of an item. Get the cost of realizing each function.

The attitude of a value analyst should be critical, aggressive, nonconformist, never satisfied with what she/he receives for the money given.

The first action of the group should be to gather all the information about the item. Ask the best specialist of the field, not the person most accessible. Get a detail of costs. Collect drawings, specifications, all the written data on the item. Don't be satisfied with verbal information.

For a pencil, for instance:

What is it? (a pencil)

What is it for? (make permanent marks)

What is the main function? (make marks, write lines)

What is the method, material or procedure that was used to realize the main function? (a graphite stick and wood)

What are the corresponding secondary functions? ("transfer graphite to paper" and "facilitate holding the graphite"

What does the item cost and how can we distribute the cost of realizing the main function into each secondary function?

Comparing these costs to an item of a similar function, how much should each function and the total cost?

(This example, the pencil, is already a high value item).

Center the attention of the value analysis group on the main function, because, during the analysis, the secondary functions may change. The group may choose different secondary functions to realize the main function.

It is not important that the individual costs assigned are imprecise. Because even an imprecise numerical value is much better than an expression such as "very costly" or "of low cost".

Measure the value of the way each secondary function is realized, is materialized:

Does it contribute value? (Is there something that does not contribute value?)

Is the cost in proportion to the function realized.

Does it need all its parts, elements, procedures?

Is there something better to do the same function?

Is there a standard part that can do the function?

Investigate the cost of a function. Put a dollar sign on tolerances and strict specifications. See what's thought to be necessary and which somebody put in, just to be on the safe side. Remember: All that does not contribute to the main function is waste and should be eliminated.

Creativity (the brainstorming session)

The objective is to find a better way to do the main function. We try to find a different material, or concept, or process, or design idea, that realizes the main function.

People looked for conditions under which the human mind produces really original ideas, a method that helped creativity. These conditions and procedures are stated below and need strict adherence:

1- State the main function clearly and shortly on paper or a blackboard (verb and noun), so that the group can fix their attention on it. State it without mentioning the physical object or the specific process. (Do not state secondary or aggregate functions).

2- The leader of the group says "We begin now" and when the ideas do not flow so fast anymore (about 15 to 20 min.) The leader says "That's all".

3- Members of the group state loudly any solution to the problem they can think of. It is very important that they do not analyze their own thoughts or those of others. They should not smile or react when exotic, improbable or senseless ideas are stated. They should not criticize or speak with others. They should only let their imagination run wild and state ideas. An idea can be inspired by a previous idea. (If no rare ideas are stated, then the members are analyzing, not making a brain storm).

4- The leader registers all ideas on paper or a blackboard.

5- When the session has finalized, if there is any doubt what was meant by an idea, the leader clarifies the idea with the help of members. He does not analyze or discard any idea.

This finalizes the brainstorm.

Evaluation

The evaluation should be done after an interval, at best about two days after the brainstorm, to allow the group to gain perspective.

Now the group analyzes each idea. They group similar ideas. When evaluating, do not think why the idea would not work, why it is not possible. Develop each idea, making it more practical, making it function better. Estimate a very approximate cost for each idea and investigate carefully ideas with an apparently low cost. When an idea is canceled, that should be based on facts, not opinions.

Identify barriers and eliminate them tactfully.

Barriers are excuses or preconceived ideas that cannot be substantiated with numbers, facts, detailed and precise information or experimental evidence. Barriers can be honest beliefs. Normally there is gold behind a barrier. Now select the two to four ideas having the lowest cost.

Obtain information for analyzing and developing an idea. Do not work in isolation. Once the group has advanced as far as it can on its own, make contact with specialists. This may be necessary in the selection and also during the development of ideas. The value analyst is a coordinator of specialists, of groups of experts in other companies (Pay them for their contribution in some manner).

Obtain information from the best source, not the nearest or most accessible one. Do not take into account an answer by a person or specialist that lies outside his field of expertise. The use of specialists is a powerful way of tearing down barriers. Avoid generalizations. Do not accept second hand information. Ask for copies of documents.

Development of the two to four ideas selected.

Make a real effort to develop the ideas of lowest cost that do the main function. Make tests, prototypes, get quotes of cost. Estimate costs of short term alternatives, of long term alternatives and of any new ideas produced during the evaluation.

At the end of this process, the idea of least cost should have been identified. Ask yourself: Would I spend my own money on this solution? If not, modify it.

Recommendation

If you work in an organization or enterprise, be sure that the person really interested in applying the solution gets to see it. Present the final solution in writing, on a single sheet of paper, to the person that should implement it. Give a copy to his boss. This sheet should state the savings, costs and a detailed plan for implementing the idea. It should have all the information needed so that a person that does not know this subject can understand it and do it.

The value analysis group should not itself implement the idea, if this is outside its normal area of work.

Implementation and Follow Up

Value analysis is not a method of controlling the work of others or of investigating errors.

Normally the amount of work to implement an idea is greater than the amount of work needed to produce the idea. Therefore it is good procedures to let the people that implement the idea get most of the praise and merit. That produces excellent relations.

Obtain that the group that implements the idea informs of the savings produced and, if possible, benefits from these savings. If needed, help them to establish the way the implementation will be checked and the savings calculated.

Qualitative & Quantitative Factors Evaluated During The Site Selection Process:

It is very important for site selection advisory services firms and companies to thoroughly evaluate quantitative and qualitative factors when evaluating communities and states. Often in today’s world, many organizations tend to primarily focus on quantitative factors when deciding where to locate a new facility.

While quantitative factors have been and will continue to be very important in the site selection process, qualitative factors are also critical in order to ensure that the company makes the best decision. This is particularly true as the economies of the United States and the world become more knowledge-based.

What are the most important quantitative and qualitative factors evaluated by site selection advisors and companies when making a decision regarding the location of a new or expanded operation? The list will vary depending on type of facility (i.e. manufacturing, logistics, research & technology, office), but most factors apply to all forms of projects. Please find below a summary of the most important quantitative and qualitative factors considered by companies.

Quantitative Factors

1. Property Tax Rates

2. Corporate Income Tax Rates

3. Sales Tax Rates

4. Real Estate Costs

5. Utility Rates

6. Average Wage/Salary Levels

7. Construction Costs

8. Worker’s Compensation Rates

9. Unemployment Compensation Rates

10. Personal Income Tax Rates

11. Industry Sector Labor Pool Size

12. Infrastructure Development Costs

13. Education Achievement Levels

14. Crime Statistics

15. Frequency of Natural Disasters

16. Cost of Living Index

17. Number of Commercial Flights to Key Markets

18. Proximity to Major Key Geographic Markets

19. Unionization Rate/Right to Work versus Non-Right to Work State

20. Population of Geographic Area

Qualitative Factors

1. Level of Collaboration with Government, Educational and Utility Officials

2. Sports, Recreational and Cultural Amenities

3. Confidence in Ability of All Parties to Meet Company’s Deadlines

4. Political Stability of Location

5. Climate

6. Availability of Quality Healthcare

7. Chemistry of Project Team with Local and State Officials

8. Perception of Quality of Professional Services Firms to Meet the Company’s Needs

9. Predictability of Long-term Operational Costs

10. Ability to Complete Real Estate Due Diligence Process Quickly

Another important part of the site selection evaluation process relates to the weighting of the key quantitative and qualitative factors. Depending on the type of project, factors will be weighted differently. As an example, for a new manufacturing facility project, issues such as utility rates, real estate costs, property tax rates, collaboration with governmental entities, and average hourly wage rates may be weighted more heavily. By contract, for a new office facility factors such as real estate costs, number of commercial flights, crime statistics, climate and industry sector labor pool size may be more important.

When assisting clients, our firm weights the importance of each criterion. We then rate the risk level of each factor. Finally, we input the weighted data into a formula to compute a score for each site. This approach allows Ginovus to tailor the analysis to meet each client’s needs and to adjust the formula as issues arise. We believe this allows us to provide the best possible recommendation to a client.

Every project is unique and must be evaluated based upon its own individual set of circumstances. By identifying the key factors impacting a project, site selection advisors and companies can reach an informed decision. Carefully designed methodology, when combined with thorough analysis, and sometimes instinct, should lead to a successful outcome.

QUES2) Q2. Explain the following:-

Job Design

Line Balancing

Work Measurement

ANS2)

Job design also gives information about the qualifications required for doing the job and the reward (financial and non-financial benefits) for doing the job. Job design is mostly done for managers' jobs. While designing the job, the needs of the organization and the needs of the individual manager must be balanced. Needs of the organization include high productivity, quality of work, etc. Needs of individual managers include job satisfaction? That is, they want the job to be interesting and challenging. Jobs must not be made highly specialized because they lead to boredom.

Importance of Job Design

Job design is a very important function of staffing. If the jobs are designed properly, then highly efficient managers will join the organization. They will be motivated to improve the productivity and profitability of the organization. However, if the jobs are designed badly, then it will result in absenteeism, high labor turnover, conflicts, and other labor problems.

Factors Affecting Job Design

The guidelines influencing or factors affecting job design are depicted below.

factors affecting job design

Proper scope of job

The scope of the job should be proper. If the scope is narrow (less), then the job will not be challenging. It will not give an opportunity for development. The manager will not get satisfaction after completing an easy job. If the scope of the job is very wide, then the manager will not be able to handle it properly. This will cause stress, frustration and loss of control. Therefore, scope of the job must be balanced and proper.

Full-time challenge of the job

The job should be so challenging that it takes up the full-time and effort of the manager. So, the service of the manager must be fully utilized. If not, the manager will have a lot of free time. He will use this free time to interfere in the work of his subordinates. This will cause problems and conflicts because subordinates do not like unnecessary interference from their superiors.

Managerial skills

The skills of the manager should be considered before designing his job. All managers do not have equal skills. So jobs should be designed after considering the skills of the manager. So, a manager having a high level of skill should be given very challenging jobs while a manager having a low level of skill should be given fewer challenging jobs. Jobs must be made flexible so that it can be changed according to the skills of the manager.

Organization’s requirements

Jobs must be designed according to the requirements of the organization. We cannot use the same job design for all organizations.

Individual likes and dislikes

People have different likes and dislikes. Some people like to work alone while some people prefer to work in groups. Some people want to do only planning and decision making while other people like to implement these plans and decision. So, individual likes and dislikes must be considered while designing the job.

Organizational structure

Organizational structure also affects the job design. Individual jobs must fit into the organization’s structure.

Technology

The level of technology used by the organization also affects the job design. An organization having a high level of technology will have different job designs compared to an organization having a low level of technology.

Line Balancing

Description

Line Balancing is leveling the workload across all processes in a cell or value stream to remove bottlenecks and excess capacity. A constraint slows the process down and results if waiting for downstream operations and excess capacity results in waiting and absorption of fixed costs.

Objective

Match the production rate after all wastes have been removed to the take time at each process of the value stream.

EXAMPLE:

Taking the example from the takt time page as the starting point there were additional studies conducted each the remaining processes that it takes to make UNIT ABC.

There are five processes in the work cell dedicated to only UNIT ABC.

Each process has same demand and available work time = same take time.

The LOADING data was found using historical production data of ACCEPTABLE parts only including downtime but only when the processes were scheduled with operator(s).

The customer only wants acceptable parts and that is what the customer demand is based on within the take time formula. When figuring the production rates (loading) the scrap or non-conforming pieces must be netted out.

http://www.six-sigma-material.com/images/LineBalancingData.GIF

Often the bottlenecks or areas of excess capacity are known by the team members but this analysis provides the quantitative data to prioritize activities to improve.

Line Balancing

Process 1: Taking much longer than take time. Overtime is probably used to make up production and is the #1 constraint.

Process 2: Exceeding the take time, probably a lot of waiting and the excess capacity can be filled by absorbing some of the work from Process 1 and/or Process 4.

Process 3 & 5: Very close to meeting take time, not a focus area but possibly some best practices and application of LEAN tools can improve these loading rates. Improvement in these areas could be used to share workload from constraint processes.

Process 4: Taking longer than take time. Again, overtime is probably used or there are late deliveries, high expediting costs or unhappy customers. Apply Lean Manufacturing principles and try to alleviate workload to Process 2 or others that may be able be improved to absorb some of the workload.

Examine all the specific activities occurring in each process. Time studies, motion studies, and other Lean tools often provide most the ideas for improvement.

Develop a plan for immediate, low-cost improvements. Professional signage, advanced comprehensive training and capital investments are not needed or justified yet.

Run studies to determine potential LOADING improvements. There is most likely not much that can be done to change the take time, focus on improving the LOADING (production rate). Improving the LOADING even in non-constraint operations is desirable, but the top priority is relieving constraint operations.

Work Measurement

Definition

Work measurement is the application of techniques designed to establish the time for a qualified worker to carry out a specified job at a defined level of performance.

The Purpose of Work Measurement

Method study is the principal technique for reducing the work involved, primarily by eliminating unnecessary movement on the part of material or operatives and by substituting good methods for poor ones. Work measurement is concerned with investigating, reducing and subsequently eliminating ineffective time, that is time during which no effective work is being performed, whatever the cause.

Work measurement, as the name suggests, provides management with a means of measuring the time taken in the performance of an operation or series of operations in such a way that ineffective time is shown up and can be separated from effective time. In this way its existence, nature and extent become known where previously they were concealed within the total.

The Uses of Work Measurement

Revealing existing causes of ineffective time through study, important though it is, is perhaps less important in the long term than the setting of sound time standards, since these will continue to apply as long as the work to which they refer continues to be done. They will also show up any ineffective time or additional work which may occur once they have been established.

In the process of setting standards it may be necessary to use work measurement:

To compare the efficiency of alternative methods. Other conditions being equal, the method which takes the least time will be the best method.

To balance the work of members of teams, in association with multiple activity charts, so that, as nearly as possible, each member has a task taking an equal time to perform.

To determine, in association with man and machine multiple activity charts, the number of machines an operative can run.

The time standards, once set, may then be used:

To provide information on which the planning and scheduling of production can be based, including the plant and labor requirements for carrying out the programme of work and the utilization of available capacity.

To provide information on which estimates for tenders, selling prices and delivery promises can be based.

To set standards of machine utilization and labor performance which can be used for any of the above purposes and as a basis for incentive schemes?

To provide information for labor-cost control and to enable standard costs to be fixed and maintained.

It is thus clear that work measurement provides the basic information necessary for all the activities of organizing and controlling the work of an enterprise in which the time element plays a part. Its uses in connection with these activities will be more clearly seen when we have shown how the standard time is obtained.

Techniques of work measurement

The following are the principal techniques by which work measurement is carried out:

1. Time study

2. Activity sampling

3. Predetermined motion time systems

4. Synthesis from standard data

5. Estimating

6. Analytical estimating

7. Comparative estimating

Of these techniques we shall concern ourselves primarily with time study, since it is the basic technique of work measurement. Some of the other techniques either derive from it or are variants of it.

1. Time Study

Time Study consists of recording times and rates of work for elements of a specified job carried out under specified conditions to obtain the time necessary to carry out a job at a defined level of performance.

In this technique the job to be studied is timed with a stopwatch, rated, and the Basic Time calculated.

1.1   Requirements for Effective Time Study

The requirements for effective time study are:

a. Co-operation and goodwill

b. Defined job

c. Defined method

d. Correct normal equipment

e. Quality standard and checks

f. Experienced qualified motivated worker

g. Method of timing

h. Method of assessing relative performance

i. Elemental breakdown

j. Definition of break points

k. Recording media

One of the most critical requirements for time study is that of elemental breakdown. There are some general rules concerning the way in which a job should be broken down into elements. They include the following. Elements should be easily identifiable, with definite beginnings and endings so that, once established, they can be repeatedly recognized. These points are known as the break points and should be clearly described on the study sheet. Elements should be as short as can be conveniently timed by the observer. As far as possible, elements - particularly manual ones - should be chosen so that they represent naturally unified and distinct segments of the operation.

1.2 Performance Rating

Time Study is based on a record of observed times for doing a job together with an assessment by the observer of the speed and effectiveness of the worker in relation to the observer's concept of Standard Rating.

This assessment is known as rating, the definition being given in BS 3138 (1979):

The numerical value or symbol used to denote a rate of working.

Standard rating is also defined (in this British Standard BS3138) as:

"The rating corresponding to the average rate at which qualified workers will naturally work, provided that they adhere to the specified method and that they are motivated to apply themselves to their work. If the standard rating is consistently maintained and the appropriate relaxation is taken, a qualified worker will achieve standard performance over the working day or shift."

Industrial engineers use a variety of rating scales, and one which has achieved wide use is the British Standards Rating Scale which is a scale where 0 corresponds to no activity and 100 corresponds to standard rating. Rating should be expressed as 'X' BS.

Below is an illustration of the Standard Scale:

Rating Walking Pace

0 no activity

50 very slow

75 steady

100 brisk (standard rating)

125 very fast

150 exceptionally fast

The basic time for a task, or element, is the time for carrying out an element of work or an operation at standard rating.

Basic Time = Observed Time x Observed Rating

The result is expressed in basic minutes - BM's.

The work content of a job or operation is defined as: basic time + relaxation allowance + any allowance for additional work - e.g. that part of contingency allowance which represents work.

 Standard Time

Standard time is the total time in which a job should be completed at standard performance i.e. work content, contingency allowance for delay, unoccupied time and interference allowance, where applicable.

Allowance for unoccupied time and for interference may be important for the measurement of machine-controlled operations, but they do not always appear in every computation of standard time. Relaxation allowance, on the other hand, has to be taken into account in every computation, whether the job is a simple manual one or a very complex operation requiring the simultaneous control of several machines. A contingency allowance will probably figure quite frequently in the compilation of standard times; it is therefore convenient to consider the contingency allowance and relaxation allowance, so that the sequence of calculation which started with the completion of observations at the workplace may be taken right through to the compilation of standard time.

Contingency allowance

A contingency allowance is a small allowance of time which may be included in a standard time to meet legitimate and expected items of work or delays, the precise measurement of which is uneconomical because of their infrequent or irregular occurrence.

Relaxation allowance

A relaxation allowance is an addition to the basic time to provide the worker with the opportunity to recover from physiological and psychological effects of carrying out specified work under specified conditions and to allow attention to personal needs. The amount of the allowance will depend on the nature of the job. Examples are:

Personal 5-7%

Energy output 0-10%

Noisy 0-5%

Conditions 0-100%

e.g. Electronics 5%

Other allowances

Other allowances include process allowance which is to cover when an operator is prevented from continuing with their work, although ready and waiting, by the process or machine requiring further time to complete its part of the job. A final allowance is that of Interference which is included whenever an operator has charge of more than one machine and the machines are subject to random stoppage. In normal circumstances the operator can only attend to one machine, and the others must wait for attention. This machine is then subject to interference which increased the machine cycle time.

It is now possible to obtain a complete picture of the standard time for a straightforward manual operation.

 

2. Activity Sampling

Activity sampling is a technique in which a large number of instantaneous observations are made over a period of time of a group of machines, processes or workers. Each observation records what is happening at that instant and the percentage of observations recorded for a particular activity or delay is a measure of the percentage of time during which the activity or delay occurs.

The advantages of this method are that

It is capable of measuring many activities that are impractical or too costly to be measured by time study.

One observer can collect data concerning the simultaneous activities of a group.

Activity sampling can be interrupted at any time without effect.

The disadvantages are that

It is quicker and cheaper to use time study on jobs of short duration.

It does not provide elemental detail.

The type of information provided by an activity sampling study is:

     a.  The proportion of the working day during which workers or machines are producing.

     b.  The proportion of the working day used up by delays. The reason for each delay must be recorded.

     c.  The relative activity of different workers and machines.

To determine the number of observations in a full study the following equation is used:

 

 

Where:

 

 

3. Predetermined Motion Time Systems

A predetermined motion time system is a work measurement technique whereby times established for basic human motions (classified according to the nature of the motion and the conditions under which it is made) are used to build up the time for a job at a defined level of performance.

The systems are based on the assumption that all manual tasks can be analysed into basic motions of the body or body members. They were compiled as a result of a very large number of studies of each movement, generally by a frame-by-frame analysis of films of a wide range of subjects, men and women, performing a wide variety of tasks.

The first generation of PMT systems, MTM1, were very finely detailed, involving much analysis and producing extremely accurate results. This attention to detail was both a strength and a weakness, and for many potential applications the quantity of detailed analysis was not necessary, and prohibitively time -consuming. In these cases "second generation" techniques, such as Simplified PMTS, Master Standard Data, Primary Standard Data and MTM2, could be used with advantage, and no great loss of accuracy. For even speedier application, where some detail could be sacrificed then a "third generation" technique such as Basic Work Data or MTM3 could be used.

4. Synthesis

Synthesis is a work measurement technique for building up the time for a job at a defined level of performance by totaling element times obtained previously from time studies on other jobs containing the elements concerned, or from synthetic data.

Synthetic data is the name given to tables and formulae derived from the analysis of accumulated work measurement data, arranged in a form suitable for building up standard times, machine process times, etc by synthesis.

Synthetic times are increasingly being used as a substitute for individual time studies in the case of jobs made up of elements which have recurred a sufficient number of times in jobs previously studied to make it possible to compile accurate representative times for them.

5. Estimating

The technique of estimating is the least refined of all those available to the work measurement practitioner. It consists of an estimate of total job duration (or in common practice, the job price or cost). This estimate is made by a craftsman or person familiar with the craft. It normally embraces the total components of the job, including work content, preparation and disposal time, any contingencies etc, all estimated in one gross amount.

6. Analytical estimating

This technique introduces work measurement concepts into estimating. In analytical estimating the estimator is trained in elemental breakdown, and in the concept of standard performance. The estimate is prepared by first breaking the work content of the job into elements, and then utilising the experience of the estimator (normally a craftsman) the time for each element of work is estimated - at standard performance. These estimated basic minutes are totalled to give a total job time, in basic minutes. An allowance for relaxation and any necessary contingency is then made, as in conventional time study, to give the standard time.

7. Comparative estimating

This technique has been developed to permit speedy and reliable assessment of the duration of variable and infrequent jobs, by estimating them within chosen time bands. Limits are set within which the job under consideration will fall, rather than in terms of precise capital standard or capital allowed minute values. It is applied by comparing the job to be estimated with jobs of similar work content, and using these similar jobs as "bench marks" to locate the new job in its relevant time band - known as Work Group.

 



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