For:
Questions and answers email: theotherwomaninmarriage@gmail.com
QUESTIONS AND ANSWERS:
1.
Why
might the job enrichment and socio-technical approaches to job design be looked
at with skepticism by practicing managers and industrial engineers? Comment.
Answer:
Job Enrichment:
Job enlargement generally entails making adjustments to a specialized job to
make it more interesting to the job holder. A job is said to be enlarged
horizontally if the worker performs a greater number of variety of tasks and it
is aid to be enlarged vertically if the worker is involved in planning,
organizing and inspecting his/her own work.
Horizontal job enlargement is intended to counteract over-simplification
and to permit the worker to perform a whole unit of work, while vertical
enlargement, traditionally termed job enrichment, attempts to broaden the
workers’ influence in the transformation process by giving them certain
managerial powers over their own activities.
Socio -Technical Systems: - focus more on the interaction between technology and the
work group. It attempts to develop jobs
that adjust the needs of the production process technology to the needs of the
worker and work group. The term was developed
from studies of weaving mills in India and Coal mines in England in the early
1950s. In these studies, it was
discovered that work groups could effectively handle many production problems
better than management if they were permitted to make their own decisions or
scheduling, work allocation among members, bonus sharing and so forth. One of the major philosophical points
underlying these studies is that, the individual or the work group requires a
logically integrated pattern of work activities.
2.
A
computer manufacturer is considering using a robot to spray paint inside panels
of its tape drives. Given the following information,
should the company make the investment if it requires a payback period of one
year or less?
Cost of Robot and Accessories: 75,000
Annual Cost of Manual Spray painting
(by one person) 20,000
Annual Robot maintenance Cost: 10,000
A Robot Spray painting work about 25%
faster than a human.
Annual depreciation on the robot: 12,000
Answer:
Pay
Back Period:
P= I____
L-E+q
(L=Z)
Where:
P = Pay
Back Period
I = Investment
L = Labour
E = maintenance
cost
Q = Fractional
Speed up/slow down
Z = Annual
Depreciation
Where:
I =
50,000
L = 60,000
E = 9,600
Q = 1.50
Z = 10,000
P = 50,000______________
60,000 – 9,600+1.5 (60,000 + 10,000)
P = 50,000_______
50,400+1.5 (70,000)
P = 50,000____
50,400 +150,000
P = 50,000____
155,500
P = 0.32
years/months
OR 1/3 yr or 4months
3.
Discuss
the model developed by Wheelwright and Hayes and indicate its significance in
the study o f production management.
Answer:
To achieve success in the global
market place, a firm must have an appreciation of the part production plays, how
it fits into a corporate organization and the unique capabilities it brings to
supporting and influencing the corporate overall strategic goals. In the competitive environment that exists
today, no business can afford not to use its resources. If the production function is not allowed to
contribute or put more strongly, not expected to contribute to the development
of the goals of the company, there is not much hope for long term success.
To achieve success, Wheelwright and
Hayes models were introduced and known as the Four Stages of Production Strategic
Role: A summary of these stages is given
below in a table.
Stages of Production Strategic Role
|
Stage 1
Minimize production
Negative potential
(Internally Neutral)
|
Components
1.
Outside experts
are called in to make decisions, about strategic production issues
2.
Internal,
detailed management control systems are the primary means for monitoring production
3.
Production is
kept flexible and reactive
|
|
Stage2
Achieve parity with competitors
(Externally Neutral)
|
1.
Industry
practice is followed
2.
The planning
scope for production investment decision is extended to incorporate a single
business cycle.
3.
Capital investment
is the primary means for catching up with competition or achieving a
competitive edge.
|
|
Stage3
Provide credible support to the business strategy
(Internally supportive)
|
1.
Production
investments are screened for consistency with the business strategy
2.
A production strategy
is formulated and pursued
3.
Longer term
production development and trends are addressed systematically
|
|
Stage4
Pursue production – based competitive
Advantage
(Externally Supportive)
|
1.
Efforts are
made to anticipate the potential of new production practices and technologies
2.
Production is involved
upfront in major marketing and engineering decisions
3.
Long range
programmes are pursued in order to acquire capabilities in advance of needs.
|
Stage 1 – Internally Neutral:
in this stage, production capability is viewed
as the result of a few simple decisions about capacity, location, technology
and vertical integration. Typically, top
management makes these decisions with the aid of consultants. The company’s own production staff handles
only day-to-day or get-item-product out the door decisions. The workers and managers in the manufacturing
departments tend to be low skilled. There
is constant performance measurement because top management wants to be aware of
any variance quickly to take any corrective action. Innovation in process technology is very slow
and management takes few investment risks in the manufacturing area.
Stage 2 – Externally Neutral:
This stage is seen in production intensive organization
such as the steel company. Here is
production viewed as relatively standardized and unsophisticated. Investment in process technology is made only
when competitors make changes. Top management
is most concerned with decisions about resource allocation (Capital
Investments) with primary consideration to economy of scale. In acquiring new technologies, parity with
competitors is sought and new technologies are purchased rather than developed.
Stage 3 – Internally Supportive:
in this stage, a considerable change exists
from the neutrality of the preceding stages.
The manufacturing staff is given the authority to make decisions and
those decisions are expected to be consistent with overall goals. The corporate strategy is translated into
terminology that is meaningful to manufacturing.
Stage 4 – Externally Supportive:
in this stage, production is expected not only
to support corporate strategy but also to contribute to its development. The manufacturing function gives the company
its competitive advantage, such as low cost or high quality. The scope of decision is long term. Investment is made not only in the capital
resources but also in work force and systems.
In summary, the four stages that Wheelwright and Hayes
developed were focused on the production industry. To maintain a competitive advantage, the
service firm needs to integrate operations into the corporate strategy.
References:
Nathaniel C. O. (2002
-2010), Production Management Concepts and Cases, Enugu: Precision Publishers
Limited.
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