TECIE W2-4 230103 Merged

Techniques of Industrial Engineering,
Aleksander Buczacki, PhD

Agenda 4
1. Work Design and Measurement
2. Work Analysis
3. Job Evaluation
4. Inventory Management
5. Process Analysis
6. Lean Tools
Additional literature 7
Stevenson W.J., Operations Management, McGraw-Hill Irwin, 2018.
Niebel B.W., Motion and Time Study, 8th ed., 1988.
Shook J., Learning to See: Value Stream Mapping, 1999.

Contact / Consultations 8
E-mail: aleksander.buczacki@pw.edu.pl
Consultations:
Work design and measurement 9
Major advantages of specialization in business:
For management For employees
Simplifies training Low education and skill requirements

High productivity Minimum responsibilities
Low wage costs Little mental effort needed
Work design and measurement 10
Major disadvantages of specialization in business:
For management For employees
Difficult to motivate quality Monotonous work

Worker dissatisfaction, possibly Limited opportunities for
resulting in absenteeism, hight advancement
turnover, disruptive tactics, poor
attention to quality
Little control over work
Little opportunity for self-fulfillment
Introduction 11
Work
analysis
Methods Work Work

of analysis measurement evaluation
Work analysis 12
Basic procedure of work analysis (1/2):
1. Identify the operation to be studied, and gather all pertinent

facts about tools, equipment, materials, etc.
2. For existing jobs, discuss the job with the operator
and supervisor to get their input.
3. Study and document the present method of an existing job
using process charts. For new jobs, develop charts based on
information about the activities involved.
Work analysis 13
Basic procedure of work analysis (2/2):
4. Analyze the job.

5. Propose new methods.
6. Implement the new methods.
7. Follow up implementation to assure that improvements have
been achieved.
Work analysis 14
General guidelines for selcting a job:
1. Have a high labor content

2. Are done frequently
3. Are unsafe tiring, unpleasant, and/or noisy
4. Are designated as problems (e.g. quality problems, processing
bottlenecks)
Work measurement 20
Types of basic work measurement methods:
1. Stopwatch time study

2. Historical times
3. Predermined time standards
- MTM - Methods - Time Measurement
- MODAPTS – Modular Arrangement of Predetermined Time Standards
4. Work sampling
Stopwatch time study 21
Process of a time study are:
1. Define the task to be studied, and inform the worker who will
be studied
2. Determine the number if cycles to observe (min 20)
3. Time the job, and rate the worker’s performance
4. Compute the standard time
The number of cycles that must be timed is a function

of the following factors:
1. The variability of observed times;

2. The desired accuracy;
3. The desired level of confidence for the estimated job time.
If the goal of a time study is to achieve an estimation within percentage

of the actual mean, then:
2
 zs 
n  Typical values of „z” are:
 ax  Desired „z” value
Where: confidence %
90 1.65
z – number of normal standard deviations
95 1.96
needed for desired confidence
95.5 2.00
s – sample standard deviation
98 2.33
s
 (x  x)
i
2
99 2.58
n 1
a – desired accuracy percentage
ẋ – sample mean
When the desired accuracy is stated as an amont (e.g. within one minute
of the true mean), then:
2 Typical values of „z” are:
 zs 
n 
e Desired
confidence %
„z” value
Where: 90 1.65
z – number of normal standard deviations 95 1.96
needed for desired confidence 95.5 2.00
s – sample standard deviation 98 2.33
99 2.58
s
 (x  x)
i
2
n 1
e – accuracy or maximum error desired
Example - 1
A time study analyst wants to estimate the time required

to perform a certain job. A preliminary study yielded a mean
of 7,2 minutes and a standard deviation of 2 minutes.
The desired confidence is 95 %. How many observations
will be needed (including those already taken) if the desired maximum
error is:
- ±10% of the sample mean?

- half minute (30 s)?
a. z – 1.96; s – 2;
ẋ - 7.2; a – 10%.
Solution 𝑛=
𝑧𝑠
=
1.96 × 2
= 29.64 ≈ 30
𝑎𝑥̅ 0.10 × 7.2
b. e – 0.5
𝑧𝑠 1.96 × 2
𝑛= = = 61.47 ≈ 62
𝑒 0.5
Development of a time standard involves compuptation

of three times (1/3):
1. Observed time (OT) – the average of the observed times
2. Normal time (NT) – the observed time adjusted for worker performance
NT  OT  PR PR – Performance rating
PR depends of: NT   ( xi  PRi ) PRi – Performance rating for element i
1. Attemption to deliberately slow the pace;
2. Natural abilities differ from the norm
For long jobs, each element may be rated for short jobs or a single rating may be made for
entire cycle.
Development of a time standard involves compuptation of three times (2/3):
3. Standard time (ST) – the length of time a worker should take to perform a job if there are
no delays or interruptions.
It does not take into account:

- Personal delays – getting an drink of water ora going to the restroom
- Unavoidable delays – machine adjustments and repairs, talking to a supervisor, waiting for materials
- Rest breakes.
ST  NT  AF AF – Allowance factor
Development of a time standard involves compuptation of three times (3/3):

Allowance factor can be computed in on of two ways
If allowances are based on the job time, the allowance factor must be computed:
AF job  1  A A – Allowance percentage based on job time
If allowances are based on a percentage of the workday, the allowance factor must be computed:
1
AFday 
1 A
Allowance precentages for working conditions:
Group of Type of allowances %

allowances
Constant Personal 5
Basic fatigue 4
Variable Standing 2
Abnormal position 0-7
Use of force or muscular energy (weight lifted) 0-22
Bad light 0-5
Atmospheric conditions (head and humidity) 0-10
Close attention 0-5
Noise level 0-5
Mental strain 1-8
Monotony 0-4
Tediousness 0-5
Example – 2
A time study of an assembly operation yielded the following observed times, for which
the analyst gave a performance rating of 1.10. Using an allowance of the 15 %
of job time, determine the appropriate standard time for the operation.
# Observation Time (minutes)

1 3.20
2 3.15
3 3.08
4 3.12
5 3.15
6 3.18
7 3.14
8 3.14
SUM 25.16
n – 8; PR – 1.10; A – 0.15.
∑x 25.16
𝑂𝑇 = = = 3.14
n 8
𝑁𝑇 = 𝑂𝑇 × 𝑃𝑅 = 3.145 × 1.10 = 3.3495
𝑆𝑇 = 𝑁𝑇 × 1 + 𝐴 = 3.4595 × 1.15 = 3.978425 ≈ 3.98
Predetermined Time Standards 34
Predetermined times are the tabulated value of the normal time required
to perform individual movements (eg. moving an arm from one position
to another).
The entire operation is described by a series of these basic motions.
The main advantage is the opportunity to estimate the time of an operation

before it takes place.
Predetermined Time Standards 35
Predetermined times have the following attributes:

1. They eliminate the need for an observer to clock the manual movements
of an operator, thereby avoiding distortions possible from observer bias.
2. They bestow credence to task times by virtue of the very large samples
from which the component times were developed.
3. They bypass the troublesome performance rating factor by including
the pace ratings in the tabulated values.
4. They yield standard times for operations that are reliable enough
to be accepted by most trade unions.
5. They are adaptable to computerization, allowing electronic assistance
for the design of motion patterns and the collection of operation times.
Source: Riggs J., Production systems: planning, analysis and control, Wiley 1987.
MTM – Methods – Time Measurement 36
History
Early XX Taylor and the Gilbreths suggested the establishment
of predetermined time standards for each element of operation.
During the 1920s the first practical version of elementary time standards
introduced by A. B. Segur. The Motion Time Analysis was available only
to A.B. Segur’s clients.
In 1934, a group of industrial engineers (headed by J.H. Quick) originated
a system called Work Factor.
During the 1940s, several companies developed systems
of predetermined motion times: General Electric, Honeywell,
and Westinghouse.
In 1948, the first book on Methods-Time Measurement (MTM) was
published.
Definition
Methods – Time Measurement is a procedure that analyzes any manual
operation or method into the basic motions required to perform it and assigns
to each motion a predetermined time standard that is determined by the nature
of the motion and the conditions under which it is made.
In MTM-1, nine basic motions are delineated on data cards, and a tenth card
shows the easy of difficulty of performing motions simultaneously with both
hands.
Durations of motions are given in Time Measurement Units (TMU), with each
equal to 0.0006 minutes, or 0.036 seconds.
https://youtu.be/DEkPehZeVkQ - MTM
Groups of Nr of Table Elementary Symbol

movements movement
Hands I Reach R
II Move M
III A Turn T
III B Apply pressure AP
IV Grasp G
V Position (1’’ and less) P
VI Release RL
VII Disengage D
Eyes VIII Eye travel ET
VIII Eye focus EF
Groups of movements Number of table Elementary movement Symbol
Body, leg and foot IX Side step SS
IX Turn body TB
IX Foot motion FM
IX Leg motion LM
IX Bend B
IX Arise from bend AB
IX Stoop S
IX Arise from stoop AS
IX Knee on one knee KOK
IX Arise from one knee AKOK
IX Knee on both knees KBK
IX Arise from both knees AKBK
IX Sit from standing position SIT
IX Stand from sitting position STD
IX Walk W
Groups of Nr of table Elementary movement Symbol

movements
Simultaneous motions X
Supplementary data
1 Position (more than 1’’) P
1A Secondary engage E2
2 Crank (light resistance) C
Source: MTM Association for Standards and Research

Process of application:
A task is recorded or synthesized by listing the constituent movements,
extracting the appropriate table values, and summing the value to determine
the normal time of the operation.
Eg., for the Reach table, the motion has three parameters.
- Distance – true path traveled by hand between two points;
- Target – nature and position of the objective sought;
- Motion state – whether the hand is already in motion
at the beginning of the reach or continues moving at the end.
Distance Time TMU Hand in motion
Moved A B C or D E A B
inches
¾ or less 2.0 2.0 2.0 2.0 1.6 1.6
1 2.5 2.5 3.6 2.4 2.3 2.3
2 4.0 4.0 5.9 3.8 3.5 2.7
3 5.3 5.3 7.3 5.3 4.5 3.6
4 6.1 6.4 8.4 6.8 4.9 4.3
5 6.5 7.8 9.4 7.4 5.3 5.0
6 7.0 8.6 10.1 8.0 5.7 5.7
7 7.4 9.3 10.8 8.7 6.1 6.5
8 7.9 10.1 11.5 9.3 6.5 7.2
9 8.3 10.8 12.2 9.9 6.9 7.9
10 8.7 11.5 12.9 10.5 7.3 8.6
A – Reach to object in fixed location, or to object in other hand
or on which other hand rests.
B – Reach to single object in location which may vary slightly from cycle to cycle.
C – reach to object jumbled with other objects in a group so that search and
select occur.
D – Reach to a very small object or where accurate grasp is required
E – Reach to indefinite location to get hand in position for body balance or next
motion or out of way.
Motions are described by shorthand notations. An R10E symbol indicates
a 10-inch hand movement from a rest position stopping at an indefinite
spot – the required time is 10.5 TMU, or 0.063 minutes, which is 3.78 seconds.
An mR10A symbol indicates the hand is already in motion

as the reach to a fixed object begins (7.3 TMU); an m at the right
of the „reach” symbol means the hand is in motion at the end
of the movement.
One minute of work may involve 100 or more basic elements,

and a typical job may involve several hundred or more of basic elements.
MODAPTS 45
Basic information:
MODular Arrangement of Predetermined Time Standards;
Developed by C. Heyde (The Australian Association for Predetermined Time

Standards and Research) in 1966;
Based on MSD (Master Standard Date);
Simple (than MTM) to learn and quick to apply with appropriate accuracy.
MODAPTS 46
Basic information:
MODular Arrangement of Predetermined Time Standards;
Developed by C. Heyde (The Australian Association for Predetermined Time

Standards and Research) in 1966;
Based on MSD (Master Standard Date);
Simple (than MTM) to learn and quick to apply with appropriate accuracy.
MODAPTS 47
Basic information:
https://www.youtube.com/watch?v=Thfq-t27m9Q - MODAPTS
Techniques of Industrial Engineering,

Work sampling 2
Work sampling is a technique for estimating the proportion of time that a worker or
machine spends on various activities.
An observer makes brief obseravions of a worker or machine at random intervals over

a period of time and simply note the nature of the activity.
The resulting data are counts of the number of times each category of activity or
nonactivity was observed.
https://www.youtube.com/watch?v=06ZdmMMzuCc
Work sampling 3
Assume that during a 3-hour study period an analyst made a total of 75 observations, and
15 of those observations showed the worker making entries in a customer contact log.
It would be assumed that 15 / 75, or 20% of the time was spent making entries in the log.
20% of 3 hours is 36 minutes.
If the log showed that 48 entries were made by the worker during the study, then it would
be assumed that each entry took an average of 36 / 48 = 0.75 minute = 45 sec.
The analyst might adjust this time by a performance rating established while the
observations were made.
Work sampling 4
For large sample, the maximum error e, can be computed
using the formula:
2
pˆ (1  pˆ ) z
ez n    pˆ (1  pˆ )
Where: n e
z – number of standard deviations needed
to achieve desired confidence
ṗ - sample proportion
n – sample size
Source: Stevenson W.J., Operations Management

Work Sampling 5
Example
The manager of a small supermarket chain wants to estimate the proportion of time stock
clerks spend making price changes to previously marked merchandise. The manager wants
a 95% confidence that the resulting estimate will be within 5% of the true value. What sample
size should be used?
Source: Stevenson W.J., Operations Management.

Work sampling 6
Solution (1/2)
z – number of standard deviations needed to achieve desired confidence – 1.96
ṗ - sample proportion - unkown
e – maximum error – 0.05
When no sample estimate of p is available, a preliminary estimate of sample size can be obtained
using ṗ = 0.5. Then after 20 or so observations, a new estimate of ṗ can be obtained from those
observations and revised value of n computed using the new ṗ.
In fact, it would be prudent to recompute the value of n at two or three points during the study
to obtain a better indication of the necessary sample size. Thus, the initial estimate of n is:
1.96
𝑛= 0.5 1 − 0.5 = 384.16
0.05

Work sampling 7
Solution (2/2)
Suppose that, in the first 20 observations, stock clerks were found to be changing prices twice,
making ṗ =2/20=0.1. The revised estimate of n at that point would be:
1.96
𝑛= 0.1 1 − 0.1 = 138.3
0.05
Suppose a second check is made after a total 100 observations, and assume ṗ =0.11 at this point
(including the initial 20 observations). Recomputing n yields:
1.96
𝑛= 0.11 1 − 0.11 = 150.44
0.05
If the computed value of n is less than the number of observations already taken, sampling would be
terminated at that point.
Work sampling 8
Main steps for time study using the work sampling:
1. Clearly identify the worker(s) or machine(s) to be studied.
2. Notify the workers and supervisors of the purpose of the study to avoid arousing suspicions.
3. Compute an initial estimate of sample size using a preliminary estimate of p, if available.

Otherwise, use ṗ = 0.50.
4. Develop a random observation schedule.
5. Begin taking observations. Recompute the required sample size several times during the study.
6. Determine the estimated proportion of time spend on the specified activity.

Work sampling 9
A schedule of observations might appear as follows:
# Observation Time Busy Idle

1 2:12 V
2 8:54 V
3 10:31 V
4 11:02 V
5 1:29 V

Work sampling 10
The procedure for identyfing random times at which to make work sampling
observations involves the followinng steps:
1. Determine the number of days in the study and the number of hours per day. This will indicate
the required number of digitis for days and hours.
2. Obtain necessary number of sets for days, ignoring any sets that exceed the number of days.
3. Repeat step 2 for hours.
4. Repeat step 2 for minutes.
5. Link the days, hours, and minutes in the order that they were obtained.
6. Place the observation times in chronological order.

Work sampling 11
Advantages and disadvantages of work sampling compared to stopwatch (1/2)
Advantages Disadvantages
Observations are spread out over a
There is much less detail on the elements
period of time, making results less
of a job
susceptible to short-term fluctuations
Workers may alter their work patterns
There is little or no disruption of work when they spot the observer, thereby
invalidating the results
In many cases, there is no record of the
Workers are less resentful
method used by the worker
Studies are less costly and less time-
Observers may fail to adhere to a random
consuming, and the skill requirements of
schedule of observations
the analyst are much less

Work sampling 12
Advantages and disadvantages of work sampling compared to stopwatch (2/2)
Advantages Disadvantages
The study can be interrupted without It is not well suited for short, repetitive
affecting the results tasks
Many different studies can be conducted Much time may be required to move from
simultaneously one workplace to another and back to
satisfy the randomness requirement
No timing device is required
Lends itself to nonrepetive tasks

Job design 13
Source: Slack et. al (2009), Operations Management.

Job evaluation 14
Job evaluation is a critical in HR management.
The aim challenge is linking work results with particular employee in context of the
organization objectives.
Job evaluation 15
Job evaluation 16
Job evaluation methods (1/5)
Method Characteristics Advantages Disadvantages
name
Ranking job A summary method based - Easy to use - No definition of a model
posts on ranking job posts from - Easily understood by the - The least accurate
the hardest to the easiest employees - Does not measure the
ones. difficulty of a job
- Hard to explain
Classifying A summary method based - Easy to use - Subjective in character
job posts on grouping job posts into - Easily understood by the - Hard in creating good job
homogenous classes employees descriptions
(categories); the jobs are - Does not measure the
then compared to a model difficulty of a job
Source: Adamus W., A new method of job evaluation.

Job evaluation 17
name
Comparing An analytical method based - Universal – it can be used in - Difficult in appropriate
factors on determining the right different organizations selection of key job posts
hierarchy of job posts - Subjective in character
regardless of level of job
difficulty.
Analytical Methods based on - Easy in evaluating and - Its creation, implementation
point determining the level of job describing the differences and application is
ranking difficulty on the basis of between posts complicated
analysis of previously - Takes into account factors - It requires a great deal of
described criteria and influencing the difficulty knowledge on occupations,
comparing them to the level of a post posts, tasks
scale; a given number of - Gives the evaluator defined - Based on subjective
points is attributed to each evaluation criteria evaluation
criterion. - Guarantees a flexible - Difficulty in explaining the
relation between work and difference between various
remuneration levels of established criteria

Job evaluation 18

name
Bedaux’s An analytical method - Takes into account more - Laborious
Method, based on point evaluation factors influencing the - It requires a great deal
Ch. Bedaux of requirements for various difficulty level of a job post of knowledge on
jobs carried out by occupations, posts, tasks
employees etc. from the people
creating the remuneration
systems
Hay Guide An analytical point ranking - Mostly used in case of - Aimed at evaluating
Chart and method based on three managerial posts evaluation nonproduction jobs
Profile synthetic criteria: knowhow, - Constantly developed and - It is difficult in
Method problem solving and modified by consultants of comprehension for the
accountability, which were Hay Group employees
extended by analytical and
fragmentary criteria – all
in terms of job’s difficulty

Job evaluation 19
https://www.youtube.com/watch?v=dBfcWcQWJbg
– Job evaluation - Hay Group method
Job evaluation 20

name
Scheme of A method unifying - The basis for many - Used to evaluate difficulty
Geneva, different, practical criteria job evaluation for blue-collar posts
International of job evaluation dividing methods, especially in
Labour them into synthetic and industrial companies
Organization analytical ones
(ILO)
Universal Point ranking method - Universal – used for - Laborious
Method of referring directly to the evaluation of - In case of lack of independence
Job Scheme of Geneva; it managerial and in organization, it may cause
Evaluation uses for synthetic criteria executive posts in all erroneous evaluation by inflating
(UMEWAP) branches of economy value of work or faking the whole
process

Job evaluation 21
name
National Job evaluation for blue- - Only one evaluation - No analytical criteria
Joint Council collar workers and criterion is used to assess - Comparable range of
(NJC) (1997) administrative staff the know-how needed to interaction of all 13 criteria
based on 13 synthetic perform tasks on a given
criteria post
Questionnaire Point ranking method - Easy to use - Laborious
Job based on the Scheme of - Greater differentiation in - Encourages omitting job
Evaluation Geneva referring directly point ranking of posts descriptions
(AWP) to the UMEWAP method
Market-based A method based on - The job is paid as much, - Does not take into account
job evaluation evaluation of pay rates in as the market is willing to that values of posts in one
comparison with the pay for it organization may differ in
market pay rates for other organizations
similar job posts - Difficulty in acquiring
information about pay rates
on the market

Job evaluation 22
Typical criteria for job evaluation (usually appr. 20 criteria with a sub.):
1. Skills (know-how, experience, job complexity),
2. Responsibility (for people, for moral values, for tangible property),
3. Problem solving (knowledge and intellectual processes vital for solving

problems effectively),
4. Work conditions,
5. Decision-making and powers on a given post,
6. Competence of employees.
Source: based on Saaty T.L., Fundamentals of Decision Making and Priority Theory with the Analytic
Hierarchy Process
Job evaluation 23
Additional (practical) criteria should be taken into account for job evaluation:
1. Size of a company,
2. Type of production or service,
3. Numbers of posts for evaluation,
4. Complexity of jobs,
5. Time window in which the posts are evaluated,
6. Other.

24
Process analysis
Lean definition 25
What is Lean?
Lean – organization of work within a company and between all cooperating companies
which is focused on the delivery of value with minimum waste.
60-70% of charged time in best companies is waste.
“It is so simple… we are looking at the time from order to delivery and payment by the
customer… and we trying to shorten that time by elimination of waste"
– Taiichi Ohno, ”father” of Toyota Production System
Value vs. waste 26
Value Added (VA)

• Transforms or shapes material or information or reduces risk;
• The customer would be willing to pay for it;
• It is done right the first time..
Required Non-Value Added (RNVA)

• Required (regulatory, company mandate, legal);
• The task creates no value but it cannot be eliminated based on current technology or thinking.
Non-Value Added (NVA) – pure waste (often between VA)

• Consumes resources but creates no value in the eyes of the customer.
Value vs. waste 27
Basic types of Waste (by T. Ohno):
Over-production - creating too much material or information;
Waiting – waiting for material or information, or material or information waiting to be processed;
Inventory – having more material or information than you need;
Defects – errors or mistakes causing the effort to be redone to correct the problem;
Unnecessary movement – moving people to access or process material of information;
Over-processing – processing more than necessary to produce the desired output;
Transportation – moving material or information.
The most important - Talent – wasting human talent, creativity enthusiasm.

Lean Principles 28
1.Specify value: Value is defined by customer in terms of specific products. Capture the sense of value perfectly.
2.Identify the value stream: Map out all end-to-end linked actions, processes and functions necessary for
transforming raw materials into products, while eliminating waste;
3.Make value flow continuously: Make the remaining linked value-creating steps „flow” per common takt time,
without backflow, stoppages;
4.Let customers pull value: Customer’s „pull” cascades all the way back to the lowest level supplier, enabling
the super efficient just-in-time production;
5.Pursue perfection: Make imperfections visible, eliminate each once and for all, pursue continuous process
of improvement striving for perfection;
6.Respect People.
Based on: LAI Lean Academy: Oppenheim, Murman, Secor

What moves in a Value Stream? 29
In manufacturing or construction… material
IndesiIn design and services… information
In health services… patients

Value stream – What is a process? 30
Customer / Consumer
Set of actions which
Inputs transform inputs to Outputs
outputs
Process: A series of actions, changes, or functions bringing about a result

Value Stream – Identify the Customer 31
What happens to the outputs of a process?
They go to a customer!
• External customers – are outside an organization, money is typically with external customers
• End users are customers who pay for an operational or consumable product or service
• Internal customers – are inside an organization, money is typically not exchanged directly
with internal customers
Types of customers 32
Type of customer Description
Primary customers They are the customers who directly receive the output from the
proces.
Secondary A secondary customer is an organization outside the proces
customers boundaries that receives output from the proces but is not directly
needed to support the primary mission of the process.
Indirect customers These are customers wihtin organization who do not directly receive
the output from process but are affected if the output from the process
is wrong and/or late.
External customers These are the customers outside the company who receive the end
product or service.
Consumers These are often indirect, external customers. Sometimes, companies
deliver their output directly o the consumer.
Source: Harrington H.J. (1991) Business Process Improvement: The breakthrough strategy for total quality, productivity, and
competitiveness, McGraw-Hill Inc.
Value Stream Mapping – Basic Steps 33
1. Define the boundaries
2. Define the value
3. “Walk” the process – identify tasks and flows of material

and information between them
4. Gather data – identify resources for each task

and flow
5. Create the „Current State” map
6. Analyze current conditions – identify value added and waste.

Reconfigure process to eliminate waste and maximize value
7. Visualize „Ideal State”
8. Create the „Future State” map
9. Develop action plans and tracking
Example from aviation industry

Flow 34
Definition – The product, information or service flows predictably in single pieces without batching along
the value stream without stoppages, interruptions, or backflows.
Lean – moving and producing at a

Traditional – waiting, delays, idle time - waste predictible rate
Flow 35
Flow in batches (5 pcs.)
0 I II III IV
5 I II III IV
10 I II III IV
15 I II III IV
20 I II III IV
Flow 0 I II III IV
36
1 I II III IV
One piece flow
2 I II III IV
3 I II III IV
4 I II III IV
5 I II III IV
6 I II III IV
7 I II III IV
8 I II III IV
Flow 37
` Batch 5 pcs. One piece
Time to finish the batch 20 8
16
Time to first piece out 4
DEMAND
Pull MARKETING
38
PRODUCTION
PLANNING
Push system – each activity delivers its output MARKET

RESEARCH
when it is done (independently)
PLAN
• Results in build up of batches

with lots of inventory. MARKET
Inventories go obsolete, PRODUCTION ASSEMBLY

occupy space, costs. Push system
DEMAND
Pull system – each activity delivers its output just MARKETING
as the next activity needs its input (“just-in-time”)

PRODUCTION
• Triggered by the customer (external & internal); PLANNING
MARKET
• Results in smooth flow with no batches or voids; RESEARCH
PLAN
• Minimizes inventory and rework
due to defects.
MARKET
PRODUCTION ASSEMBLY
There is very little waste in a pull system
Pull system
Mater ial Flow Information Flow
Source: Santarek K., Kosieradzka A., Rafalski R., Struktury sieciowe przedsiębiorstw
Pull 39
https://youtu.be/PbAStO3EMMs
Perfection 40
After Principles 1-4 have been implemented:
• The flow visualization makes the slightest imperfections visible and aggravating to all
• The Flow gives people a sense of urgency to deal with all imperfections
• There is no end to the process of reducing effort, time space, cost and mistakes
Make all imperfections visible, then swarm them to eliminate once and for
all, and eliminate fear to enable making imperfections visible.
Respect of People 41
„People” principle promotes the best human relations at work based on respect for people:
• Trust;
• Honesty;
• Respect;
• Empowerment;
• Teamwork;
• Stability;
• Motivation;
• Drive for excellence;
• and healthy hiring and promotion policies.
It calls for a vision which draws and inspires the best people.
It promotes a learning environment.
All Principles work together 42
1
Value
2
5
6 Value stream
Perfection
Respect
people
4 3
Pull Flow
Selected Tools / Methods utilized by Lean (1/2) 43
For problem identification & analysis:

• 5W + 1H - Who/What/Where/When/Why + How;
• 4M – Man, Method, Machine, Material (Fishbone Chart);
• 5W – 5 Why – Root cause analysis tool;
• ABC Classification;
• Pareto Chart;
• QA Matrix - Quality Assurance Matrix;
• VSM - Value Stream Mapping.

Selected Tools / Methods utilized by Lean (2/2) 44
For problem solving:
• 5S - Seiri, Seiton, Seiso, Seiketsu, Shitsuke;
• SMED – Single – Minute Exchange of Die;
• PDCA – Plan, Do, Check, Act;
• DMAIC – Define, Measure, Analyze, Improve, Control;
• GT – Group Technology;
• TPM – Total Productive Maintenance;
• TQM – Total Quality Management.
Characteristics of Lean Systems 45
• Waste reduction
• Continuous improvement
• Use of teams
• Work cells
• High quality
• Minimal inventory
• Output only to match demand
• Quick chngeovers
• Small lot sizes
• Lean culture
Benefits of Lean Systems:
• Reduced waste due to emphasis on waste reduction.
• Lower costs due to reduce waste and lower inventories.
• Increased quality motivated by customer Focus and the need for high-quality processes.
• Reduced cycle times due to elimination of non-value-added operations.
• Increased flexibility due to quick changeovers and small lot sizes.
• Increased productivity due to elimination of non-value-added processes.

Risks of Lean Systems:
• Increased stress on workers due to increased responsibilities for equipment changeovers, problem
solving, and process and quality improvement.
• Fewer resources (e.g. inventory, people, time) available if problems occur.
• Supply chain disruptions can halt operations due to minimal inventory or time buffers.
A
Ultimate Goal balanced,
rapid flow
Eliminate disruptions
Supporting Goals Make the system flexible
Eliminate waste
Product Process Personel / Manufacturing

Building Blocks Design Design Organization
Planning and
Control
Source: Vollmann et. al (2005), Manufacturing Planning and Control Systems, 5th ed.
Supporting Goals:
• Eliminate disruptions
• Make the system flexible
• Eliminate waste, especially excess inventory
Building Blocks
Product Design:
• Standard parts
• Modular design
• Highly capable Production systems with quality built in
• Concurrent engineering
Building Blocks
Process Design (1/2):
• Small lot sizes
• Stepu time reduction
• Manufacturing cells
• Quality improvement
Building Blocks
Process Design (2/2):
• Production flexibility
• A balanced system
• Little inventory storage
• Fail-safe methods
Building Blocks
Small vs large –lot run sizes
Source: Stevenson W.J. (2018), Operations Management, 13th ed.

Building Blocks
Benefits of small lot sizes:
• Reduced inventory, lower carrying costs
• Less space required to store inventory
• Less rework if defects occur
• Less inventory to „work off” before implementing product improvements
• Increased visibility of problems
• Increased production flexibility
• Increased ease of balancing operations

Building Blocks
Guidelines for increasing Production flexibility (1 / 2):
• Reduce downtime due to changeovers on key equipment by reducing changeover time.
• Use preventive maintenance on key equipment to reduce breakdowns and downtime.
• Cross-train workers so they can help when bottlenecks occur or other workers are absent.
Train workers to handle equipment adjustments and minor repairs.

Building Blocks
Guidelines for increasing Production flexibility (2 / 2):
• Use many small units of capacity; many small cells make it easier to shift capacity temporarily and
to add or subtract capacity than a few units of large capacity.
• Use offline buffers. Store infrequently used safety stock away from the Production area to decrease
congestion and to avoid continually turning it over.
• Reserve capacity for important customers.
Source: Knod E.M., Schonberger R.J. (2001), Operations Management: Meeting Customers’ Demand, 13th ed.
Building Blocks

Building Blocks
Personnel / Organizational Elements:
• Workers as assets
• Cross-trained workers
• Continuous improvement
• Cost accounting
• Leadership / project management

Building Blocks
Manufacturing Planning and Control:
• Level loading
• Pull systems
• Visual systems
• Limited work-in-process (WIP)
• Close vendor relationships
• Reduced transaction processing
• Preventive maintenance and housekeeping

Building Blocks
Kanban vs CONWIP
Little’s law: WIP = Cycle time x Arrival rate
Kanban’s control of WIP focuses on individual workstations, while CONWIP’S Focus is on the
system as a whole. With CONWIP, when a job extis the system, a new job is allowed to enter. This
results in a constants level of work-in-process.
Kanan works best in an environment that is stable and predictable. CONWIP offers an advantage
if there is variability in a line.
Building Blocks
Types of transactions (1 / 2)
Logistical transactions include ordering, execution and confirmation of materials transported

from one location to another. Related costs cover shipping and receiving personel, expediting
orders, data entry, and data processing.
Balancing transactions include forecasting, Production planning, Production control,

procurement, scheduling, and order processing. Associated costs relate to the personel involved
in these and supporting activities.

Building Blocks
Types of transactions (2 / 2)
Quality transactions include determining and communicating specifications, monitoring,

recording, and follow-up activities. Costs relate to appraisal, prevention internal failures (e.g.,
scrap, rework, retesting, delays, administration, activities) and external failures (e.g., warranty
costs, product liability returns potentials loss of future business).
Change transactions primarily involve engineering changes and the ensuing changes generated
in specifications, bills of materials, scheduling, processing instructions, and so on. Engineering
changes are among the most costly of all transactions.

Traditional
supplier
network

Supplier
tiers
network

Comparison of lean and traditional production
Factor Traditional Lean

Inventory Much, to offset forecast Minimal necessary to operate
errors, late deliveries
Deliveries Few, large Many, small
Lot sizes Large Small
Setups, runs Few, long runs Many, short runs
Vendors Long-term relationships are Partners
unusual
Workers Ncessary to do the work Assets

Enablers for Successful Conversation (1 / 2)
1. Make sure top management is committed to the conversation and that they know
what will be required. Make sure that management is involved in the process and knows what
it will cost, how long it will take to complete conversion, and what results can be expected.
2. Study the operations carefully; decide which parts will need the most effort to convert.
3. Obtain the support and cooperation of workers. Prepare training programs that include
sessions in setups, maintenance of equipment, cross-training for multiple tasks, cooperation,
and problem solving. Make sure workers are fully informed about what lean is and why it is
desirable. Reassure workers that their jobs are secure.

Enablers for Successful Conversation (2 / 2)
4. Begin by trying to reduce setup Times while maintaining the current system. Enlist the aid of workers
in identifying and eliminating existing problems (e.g., bottlenecks, poor quality).
5. Gradually convert operations, beginning at the end of the process and working back-ward. At each
stage, make sure the conversion has been relatively successful before moving on. Do not Begin to
reduce inventories until major problems have been resolved.
6. Convert suppliers to JIT and be prepared to work closely withe them. Start by narrowing the list of
vendors. Use vendors located nearby if Quick response time is important. Establish long-term
commitments with vendors. Insist on high standards of quality and adherence to strict delivery
schedules.
7. Be prepared to encounter obstacles to conversion.

Introduction to process mapping 69
Main definitions:
• Process;
• Mapping standards;
• Hierarchy of processes;
• Modeling rules;
• Graphic symbols and operators.
Process classification 70
Processes in organization could be:
Primary / main / core – creates added value for customers and stakeholders.
Support – mainly for internal customers. Their main task is to create conditions
for the correct implementations of main processes.
Process measurements 71
Effectiveness measurements Efficiency measurements Adaptability measurements
• Appearance • Processing time • Empowering people to take

• Timeliness • Resources expended per unit special action
• Accuracy of output • Moving from meeting basic
• Performance • Value-added cost per unit of requirements to expectations
• Reliability output • Adjusting and adapting to ever-
• Usability • % of value-added time chaning customer expectations
• Serviceability • Poor-quality cost • Continuously improving the
• Durability • Wait time per unit process to keep ahead of the
competition
• Costs
• Providing a nonstandard
• Responsiveness
activity to meet a special
• Adaptability
customer need
• Dependability
Source: Harrington H.J. (1991) Business Process Improvement: The breakthrough strategy for total quality, productivity,
and competitiveness, McGraw-Hill Inc.
Process measurement - example 72
Effectiveness Efficiency Adaptability
• % of orders sent within 8 • Euro cost per order entered • % of special orders entered
hours • % of time spent on rework within 8 hours
• % of orders rejected (for • Maximum time from order • % of special orders
incomplete information) receipt to order entered processed
• % of daily order reports • % of special orders
completed on time processed at the employee
level
Process flow – example – activities’ description (1/2) 73
# Activity Responsible
area
1. Recognize need. Complete payback analysis. Prepare personnel requisition. Manager
Prepare budget request.
2. Evaluate budget. If yes, sign personnel requisition slip. If no, return total Controller
package with reject letter to manager.
3. Conduct in-house search. Personnel
4. If in-house candidates exist, provide list to management. If not, start outside Personnel
hiring procedure.
5. Review candidates’ paperwork and prepare a list of candidates to be Manager
interviewed.
6. Have candidates’ managers review job with the employees and determine Personnel
which employees are interested in the position.
7. Notify personnel of candidates interested in being interviewed. Candidates
8. Set up meeting between manager and candidates Personnel
Process flow – example – activities’ description (1/2) 74
# Activity Responsible
area
9. Interview candidates and review details of job. Manager
10. Notify personnel of interview results. Manager
11. If acceptable candidate is available, make job offer. In not, start outside Personnel
hiring process.
12. Evaluate job offer and notify personnel of candidate’s decision Candidate
13. If yes, notify manager that the job has been filled. If no, go to activity 14. Personnel
14. Were there other acceptable candidates? If yes, go to activity 12. If no, Personnel
start outside hiring process.
15. Have new manager contact candidate’s present manager and arrange for Manager
the candidate to report to work.
Process flow – example 75
Diagram
BPMN (Business Process Modeling Notation 76
Diagram
Source: https://www.researchgate.net/publication/326276156_Towards_a_method_to_generate_GUI_prototypes_from_BPMN/figures?lo=1
VSM – 77
symbols
Source: https://www.conceptdraw.com
VSM - map 78
VSM - map 79
Some suggestions to redesign the process 80
• Combine different individual tasks in a single operation;

• Reduce levels of decision-making up to the level of the worker;
• Apply the natural sequence of the process;
• Design multiple versions of processes;
• Carry out work where it is most effective;
• Reduce the number of hand-offs, checks and controls;
• Minimize the process of data analysis;
• Introduce the principle of a single point of contact between the client and the institution;
• Use a mixed structure: centralized and decentralized.
https://www.youtube.com/watch?v=_2K-txcDteU – Hand-offs
Hierarchy of process modeling 81
Macro scale, relations with environment, each process

is one object
Pro cesy głó wne (megaprocesy)
Postępo wania i decyzje w sprawach x
Klient Realizacja programów Y Klient
Organization scale, internal relations and

Nadzór nad działalnością Z
Proc esy pomoc nicze (megapro cesy)
Zarządzanie zaso bami ludzkimi
Zarządzanie majątkiem
relations between processes

Zarządzanie finansami
Zarządzanie zaso bami IT
Organization scale, internal relations and

Przyjęcie
pracownika
Pracownik zatrudniony Pracownik gotowy do pracy
Przygotowanie
dokumentacji
kadrowej nowego
pracownika
Adaptacja nowego
pracownika na
stanowisku pracy
relations between process activities, relations
between operations
Przeprowadzenie
konkursu na
stanowisko pracy
Rozstrzygnięto
konkurs
Umowa Podpisanie umowy

Dyrketor
departamentu kadr
Organization scale, internal relations ,
Umowa
Aneksowano
Umowa
Podpisano
operation analysis, relations between
umowę umowę
operations
Życiorys
Specjalista ds kadr z
departamentu kadr
Założenie teczki
Podanie osobowej
pracownika
Teczka osobowa
Badanie lekarskie
Założono teczkę
osobową
praconika
e-kadry
Adaptacja nowego
pracownika na
miejscu pracy
Process modeling – Level 2 82
Employment
of an employee
Preparation of new Adaptation

employee of the employee
documentation at the workplace
 Start and end of the process is defined

 Process create chain of added value
 Presented effects (products) of operation
Modeling rules on level 3 83
 EPC [Event-Driven Process Chain model] in ARIS Tool;
 4 main types of objects [event, function (activity), operators, resources and information];
 Each model has at least on event initial and final;
 Activities and events are alternating;
 The process flow split and connected by operators.

Main symbols used in creating maps 84
Main symbols used in creating maps 85
Description of the action at level 3 86
Event
Activity
Events, activities and logical operators form the basic flow of processes;
Activities and events are connected by arrows, which indicate the time-logical
connections between successive activities; Event
Events and activities occur alternately;
Activity
The process always starts with an event and ends with an event.
Event
Description of the activity at level 3 87
Event 1
 Why? Document 1 Document 2
 How? Activity
 With the help of what? IT system Role
 Who?
 With what effect?
Event 2 Event 3
Standard: basic data for process description 88
Supplier
Initiating event
Description of activities
Used IT systems
Inputs of each activity
Outputs of each activity (additional)
Station performing activity / operation
The results of activity
Customer / Recipient
Measurement: Main data for process measurement 89
Number of events initiating the process;

Number of completed activities;
Estimation of time consumption of individual process activity;
Number of inputs by type;
Number of outputs by type;
Number of full-time job positions;
Number of events terminating the process during the period considered.
Optimization 90
„Finding the best solution from the point of view

of a given criterion”
The presented method of optimization processes

looks for the best solution in terms of added value
for the customer and efficiency. In some cases,
these criteria may not be sufficient.
Example 91
C-8
A
O-12 Z-100
C-3
B
Z-100
C-1 O-32 O-40 C-4
C Z-80 Z-20 E
O-48 Z-80
C-8 Z-80 Z-20
D
O-36 Z-100
C-10
F
O-32 Z-100
C-4
G
Z-100
C-7 Z-100 Z-100 C-1
H O-8 O-32 I
O-4 Z-100
Z-100 Z-100 C-1
J
O-12 Z-100
C-1
Before After
Data needed to optimize processes 92
Maps of processes and sub-processes;
Basic data on the number of tasks completed in the last period;
Established maximum time consumption of individual activities from the end of their predecessors;
Estimation of time consumption of individual activities on the largest possible sample of employees;
Products or services that arise at individual stages of the process or even individual activities;
Number of full-time positions at individual positions intended for the implementation of selected
processes.
Six Sigma 93
• Created at Motorola around 1979.
• Focused on Customer Satisfaction (Voice of the Customer).
• In 1995 adopted in GE.

Six Sigma Methodology - DMAIC 94
• Define
• Measure
• Analyze
• Improve
• Control
Six Sigma Methodology - Define 95
Define the Problem
Define the Project: (*) Define the mission; (**) Establish sponsorship;
(***) Develop the project charter; (****) Define the team and resources
Define the Goal: (*) Identify the customer; (**) Define the strategic
objecitve
Define Boundary Conditions: (*) Target relevant processes; (**)

Establish the Data Collection Plan; (***) Establish the Data Analysis
Plan
Initiate the Project

Six Sigma Methodology - Define 96
Tools for the Define Phase:

• Process analyses
• Flow Diagrams
• Value Stream Mapping
• Check sheets
• Pareto Charts
• Ishikawa Diagrams
• Cause-and-effect diagrams
• Failure mode effect analysis
Six Sigma Methodology - Measure 97
Prepare to Measure: (*) Create detailed process maps; (**)

Validate the process maps; (***) Validate the measurement system
Measure
Protect the Data

Six Sigma Methodology - Analyze 98
Indicators for the Analyze Phase (1/2):

• Measures of central tendency
• Histograms and data shapes
• Process capability indexes
• Percent noncompilant calculations
• Upper and lower control chart limits
• Data segmentation and stratification
• Correlation and regression (linear, multiple)
• Process performance (Cp, CpK, Pp, PpK, CpM)
Indicators for the Analyze Phase (2/2):
• Short-term versus long-term capability

• Non-normal data distribution transformations
• Goodness-of-fit-testing
• Hypothesis testing
• Analysis of variance (ANOVA), two sample t-tests, chi-square tests
• Design of Experiments (DOE): full, fractionals factorials
Tools for the Analysis Phase (1/2):
• Histograms
• Pareto Charts
• Timer series/runs charts
• Scatter plots
• Regression analyses
• Cause-and-effect / fishbone diagrams
• Five whys
Tools for the Analysis Phase (2/2):
• Process map review and analysis

• Value stream mapping
• Descriptive statistics
• Inferential statistcis
• Probability analyses and tending
• Cause-and-effect diagrams
• Failure mode effects analyses
Six Sigma Methodology - Improve 102
Assess
Develop
Select
Modify
Pilot & Verify

Six Sigma Methodology - Improve 103
Tools for the Improve Phase:
• Design of experiments
• Analysis of variance
• Multivariante regression testing
• Process simulations
• Failure mode effect analysis
Six Sigma Methodology - Control 104
Develop the control plan
Develop support materials
Establish new measures
Project closeut
Sections could be taken into account in a Control Plan:
• Description of the process additions or revisions

• Mapping of th functionality into existing process streams and flows
• Identification of process owners
• Description of Production changes
• Location and access of support materials
• Training schedule
• Deployment schedule
• Process performance measures
Control Tools:
• Policies
• Standrads and procedures
• Templates and forms
• Monitoring and control system protocols
• Performance validations
Six Sigma Methodology – The Six Sigma Team 107
The Six Sigma Team:

• Six Sigma Champion
o Control resources
o Alocate budgets
o Assign responsibility
o Set strategic direction
• Master Black Belt
• Black Belt
• Green Belt
• Yellow Belt

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Techniques of Industrial Engineering,

Aleksander Buczacki, PhD

1. Work Design and Measurement

Stevenson W.J., Operations Management, McGraw-Hill Irwin, 2018.

Niebel B.W., Motion and Time Study, 8th ed., 1988.

Shook J., Learning to See: Value Stream Mapping, 1999.

Aleksander Buczacki, PhD

Major advantages of specialization in business:

For management For employees

Simplifies training Low education and skill requirements

Major disadvantages of specialization in business:

For management For employees

Difficult to motivate quality Monotonous work

Methods Work Work

Basic procedure of work analysis (1/2):

1. Identify the operation to be studied, and gather all pertinent

Basic procedure of work analysis (2/2):

4. Analyze the job.

General guidelines for selcting a job:

1. Have a high labor content

Types of basic work measurement methods:

1. Stopwatch time study

Process of a time study are:

The number of cycles that must be timed is a function

1. The variability of observed times;

If the goal of a time study is to achieve an estimation within percentage

A time study analyst wants to estimate the time required

- ±10% of the sample mean?

Development of a time standard involves compuptation

Development of a time standard involves compuptation of three times (2/3):

It does not take into account:

Development of a time standard involves compuptation of three times (3/3):

AF job  1  A A – Allowance percentage based on job time

Group of Type of allowances %

# Observation Time (minutes)

The entire operation is described by a series of these basic motions.

The main advantage is the opportunity to estimate the time of an operation

Predetermined times have the following attributes:

Groups of Nr of Table Elementary Symbol

Groups of Nr of table Elementary movement Symbol

Source: MTM Association for Standards and Research

D – Reach to a very small object or where accurate grasp is required

An mR10A symbol indicates the hand is already in motion

One minute of work may involve 100 or more basic elements,

Developed by C. Heyde (The Australian Association for Predetermined Time

Based on MSD (Master Standard Date);

Developed by C. Heyde (The Australian Association for Predetermined Time

Based on MSD (Master Standard Date);

Aleksander Buczacki, PhD

An observer makes brief obseravions of a worker or machine at random intervals over

Source: Stevenson W.J., Operations Management

Source: Stevenson W.J., Operations Management.

Source: Stevenson W.J., Operations Management.

1. Clearly identify the worker(s) or machine(s) to be studied.

3. Compute an initial estimate of sample size using a preliminary estimate of p, if available.

4. Develop a random observation schedule.

6. Determine the estimated proportion of time spend on the specified activity.

Source: Stevenson W.J., Operations Management.

# Observation Time Busy Idle