QETA/002 Engineering
Organisational Efficiency and
Improvement
501/1130/9
Level 3 Diploma in Engineering Technology (QCF)
1
Session Aims:
1. Understand Production Activities
2. Understand the Application of Quality Control and Quality
Assurance
3. Understand Organisational Improvement Techniques and
Competitiveness
4. Understand Personnel Rights and Responsibilities within an
Organisation
2
2.1 Understand Production Activities
You will be able to:
• Explain the different types and methods of production
• Recognise the considerations that need to be made when selecting a
production type or method
• Identify the different stages of production planning
• Explain how to apply typical process charts
3
Explain the different types and methods of production
Production Types:
• Mass Production - a method of producing goods in large quantities at low cost per unit. But mass
production, although allowing lower prices, does not have to mean low-quality production. Instead, massproduced goods are standardized by means of precision-manufactured, interchangeable parts.
• Flow Production - involves the use of production lines such as in a car manufacturer where doors,
engines, bonnets and wheels are added to a chassis as it moves along the assembly line. It is appropriate
when firms are looking to produce a high volume of similar items.
• Automated Production – is the use of various control systems for operating equipment such as machinery,
processes in factories, boilers and heat treating ovens, switching on telephone networks, steering and
stabilization of ships, aircraft and other applications with minimal or reduced human intervention within
the production process.
• Batch Production - is a technique used in manufacturing, in which the object in question is created stage
by stage over a series of workstations, and different batches of products are made. With job
production (one-off production) and flow production(continuous production) it is one of the three main
production methods.
• One-off/Bespoke Production - One off production is the manufacture of a single product/item. This can
include large scale projects, such as a bridge, ship, stadium, multi-storey building or tower, Other
examples of one offs are - specialist jewellery, made to measure clothing, bespoke furniture and many
more.
4
Describe the considerations that need to be made when selecting
a production type or method for different types of product
Describe and analyse some of the considerations below such as:
• Market Requirements i.e. what is the scale of demand for the product? Is it going to be shipped
locally/nationally/globally? Are there other production plants that are producing the same product?
• Design of the Product i.e. is the product able to be put into an automated or mass production process? Is it highly
bespoke and have to be manufactured individually?
• Plant and Equipment Availability i.e. Although the product can be manufactured en masse, do you have the
equipment/plant available to deliver the production in mass/flow production?
• Personnel i.e. do you have the trained personnel to manage the process of mass production – robot machines could
break down? Do you have enough trained staff to deliver batch production or is there a skills shortage and have to do
them one at a time?
• Production Control “Production control is the activity of monitoring and controlling a large physical facility or physically
dispersed service. It is a "set of actions and decision taken during production to regulate output and obtain reasonable
assurance that the specification will be met” are there plant control rooms, production planners, SAP software in place?
• Quality Control - is a specialised type of system control designed to check that a product meets the design
specification and quality. Before making a product, the designer decides what quality checks are needed and when they
should be carried out. A high-quality product will; meet the specification, function correctly, be free of defects, satisfy
customer requirements.
• Cost i.e. is it going to be cost effective to engage in the particular production method to satisfy the current demand? Will
the purchase of the necessary plant/equipment be cost effective to be worthwhile swapping to the alternative
production method?
5
Methods and Application of Cellular and Just in Time
(JIT) Production
Cellular Production is a lean method of producing similar products using cells, or groups
of team members, workstations, or equipment, to facilitate operations by eliminating
setup and unneeded costs between operations. Cells might be designed for a specific
process, part, or a complete product. This is commonly used in mass production in sectors
such as the automotive sector. This allows for specialisation in a particular cell area to
reduce errors made by production staff in the production process. It also allows for the
identification and improvement of cells individually as each can be monitored and
targeted separately.
Just in Time (JIT) Production is a strategy companies employ to increase efficiency and
decrease waste by receiving goods only as they are needed in the production process,
thereby reducing inventory costs. This method requires that producers are able to
accurately forecast demand. Many parts of a Just in Time process are included from the
point a supplier raises a parts delivery note, to the time of delivery into the factory and
how long it takes for the part to go from the delivery area into the assembly/loading area.
6
Push and Pull types of Production
The original meaning of Push and Pull, as used in operations management, logistics and supply chain
management. In the pull system production orders begin upon inventory reaching a certain level,
while on the push system production begins based on demand (forecasted or actual demand).
A pull system is a lean manufacturing strategy used to reduce waste in the production process. In this
type of system, components used in the manufacturing process are only replaced once they have
been consumed so companies only make enough products to meet customer demand.
Technology push is a part of a business strategy of a company. In the innovation literature, there is a
distinction between technology push and market pull or demand pull.
7
Cost Factors to be considered in the production process
Production Costs are:
“A cost incurred by a business when manufacturing a good or producing a service. Production costs
combine raw material and labour. To figure out the cost of production per unit, the cost of
production is divided by the number of units produced. A company that knows how much it will cost
to produce an item, or produce a service, will have a clearer picture of how to better price the item
or service and what will be the total cost to the company.”
The production cost of an item can only be worked out once the associated Direct Costs and
Indirect Costs are taken into account.
Direct costs refer to materials, labour and expenses related to the production of a product.
Other costs, such as depreciation or administrative expenses, are more difficult to assign to a
specific product, and therefore are considered indirect costs.
Indirect costs are costs that are not directly accountable to a cost object (such as a particular
project, facility, function or product). Indirect costs may be either fixed or variable. Indirect
costs include administration, personnel and security costs.
8
The different stages of Production Planning
There are 3 main different stages for the Production Planning process;
Scheduling - is the process of arranging, controlling and optimizing work and workloads in a
production process or manufacturing process. Scheduling is used to allocate plant and machinery
resources, plan human resources, plan production processes and purchase materials.
It is an important tool for manufacturing and engineering, where it can have a major impact on the
productivity of a process. In manufacturing, the purpose of scheduling is to minimize the
production time and costs, by telling a production facility when to make, with which staff, and on
which equipment. Production scheduling aims to maximize the efficiency of the operation and
reduce costs.
Loading – The Production Planner defines which style to be loaded to the production line and how
much of each quantity needs to be loaded.
Dispatching (co-ordination of pre-production activities) - It refers to the control of processes of
operation planning, giving operation order and controlling operations in the manufacturing site. Its
purpose is to improve the operability by properly controlling the capacity of delivery date
management. Thus the order delivery date, stock on hand, allocation of work in process, operation
status of workers and machine/equipment are grasped as needed, and the operation planning is
performed.
9
Producing Work Schedules
In order to produce a work schedule there a few factors that need to be considered:
• Engineering Drawings – of the desired product/component
• Technical Data – what technical data needs to be required to ensure the product is
manufactured to drawing/specification
• Personnel – What personnel are available in order to meet the production demand that
is required
• Machinery/Tools – What machinery/tooling/equipment is required in order for the
component/product to be manufactured successfully
• Components – What components are required in the production process? Is there
anything that could hinder the process? Will there be lower components that interfere
with the upper components of the end component?
• Materials – What lead times is there for the materials? Are any difficult to obtain?
• Consumables – Are there any consumables in the process that are required in great
quantities, have a long lead in time, or are difficult to get hold of?
10
Application and use of typical Process Charts
In order to plan a production process it may be pertinent for the planner to use
various flow charts and diagrams.
The most commonly used of these is called a Gantt Chart. (Please see next slide
for an example.)
These are some of the symbols used in flow charts:
11
This is an
example of a
Gantt Chart
showing the
various
processes
over the
timespan of
the operation.
12
Understand the application of quality control and
quality assurance
You will be able to:
• Explain the meaning of the terms ‘quality control’ and ‘quality
assurance’
• Describe the role and stages of inspection activities
• Explain the application and content of the BS EN ISO 9000 series of
standards
• Explain the role and responsibilities of the quality manager
• List the elements of quality planning
• Describe the principles of Total Quality Management (TQM)
13
Quality, Quality Control and Quality Assurance
Definitions:
Quality: defining somethings fitness for purpose or the standard that
meets the customers expectations
Quality Control: is carrying out the procedures that have been set out
and designed in the quality assurance criteria
Quality Assurance: is the writing and implementing the procedures that
ensure quality control
14
How to Apply Quality Control (1)
Quality Control can be applied in every stage of the production process from
start to finish. Quality measures do not necessarily have to be extensive at
each stage and ultimately depends on the variation allowed at the end
product stage and the quality required of the product. At each of these stages
describe how quality control COULD be applied:
• Design
• Purchasing
• Production Planning
• Manufacture (Process Control)
• Final Inspection
• Dispatch
15
How to apply Quality Control (2)
Inspection means that every stage in the manufacture or delivery of the product or service
is checked or inspected so that:
• Any deviation from what is expected is detected
• Adjustments can be made to ensure the final quality is in line with customer expectations
• Deviation is: “is the Departure from an agreed-upon course, design, mean, or method.”
• In other words, how far the product/component/service is different from the engineering
drawing or technical parameters. Companies will often have a set Variance which is
acceptable to them in the Quality Assurance and Quality Control procedures.
16
Stages of Inspection
Within the inspection process it is important to include inspection at
various stages of the entire production process. You will more than
likely include inspection at:
- Goods Inwards
- During Production (Process Control)
- Final Inspection or PDI (Pre-Delivery Inspection
17
Inspection
• Inspection is a tool by which quality control is applied and the role of
the Inspector as checking compliance with the quality standard and
procedures.
• Quality Inspection is the method by which Quality can be strictly
monitored in accordance with the Quality Assurance methodology set
out and recorded against.
18
Statistical Process Control and Document Control
Statistical process control (SPC) is a method of quality control which
uses statistical methods. SPC is applied in order to monitor and control a process.
Monitoring and controlling the process ensures that it operates at its full potential.
Statistical Process Control measures quality and performance and ensures its within
agreed limits.
Document control is the management of documents through the document life
cycle to a much higher degree of reliability for security, version control, review
cycle, visibility, availability and, most importantly, for a controlled reliable audit
trail.
Document Control creates evidence about the existence of a system whether
electronic or paper based and provides a record of the current operational
document in use by the organisation.
19
What is Quarantine within Quality?
Quarantine is a clearly marked area of the factory/warehouse that is
controlled by the quality department that is used to store any
defective/faulty work, whilst a decision is made if the work should be
either; scrapped, reworked or adjusted to make it fit for purpose again.
It is important to consider when deciding how a part should move on in
its lifecycle the cost involved inc. man hours to put it back to the way it
should be.
20
Sampling Methodology
Purpose of Sampling: “take a sample or samples of (something) for analysis.”
Types of Sampling:
• Spot Check - a test made without warning on a randomly selected subject.
• Random Sampling - A simple random sample is meant to be an unbiased
representation of a group. Subjects are chosen at random.
• Process Sampling – is a sampling method whereby a set process is chosen
to sample the subjects. This means establishing what sampling method will
be used and what sampling framework needs to be established.
• Batch Sampling – This is where a particular batch is chosen for sampling to
form a representative sample of what has been produced.
21
Mean Time Between Failures (MTBF)
MBTF or Mean Time Between Failures constitutes part of sampling.
MTBF (mean time between failures) is a measure of how reliable a
hardware product or component is. For most components, the
measure is typically in thousands or even tens of thousands of hours
between failures. For example, a hard disk drive may have a mean time
between failures of 300,000 hours.
This is commonly used to stress test products that are under frequent
use and determine its lifespan before it ceases to operate and fails.
22
BS EN ISO 9001 (1)
What is BS EN ISO 9001?
BS EN ISO 9001:2008 Quality management systems. Requirements.ISO
9001 is the world's most established quality framework. It helps you to
effectively manage your business and meet your customers' requirements.
BS EN ISO 9001 is an internationally recognised quality assurance standard,
which is designed to bring together all the activities that may already exist in
a company that support quality. Some advantages can include; Involvement
of all levels within a company, rationalised systems and procedures,
improved costs, improved efficiency, consistent quality of product or service
and customer confidence.
23
BS EN ISO 9001 (2)
The role of a Quality Manual in BS EN ISO 9001:
A quality manual. The documents you decide are necessary to run your business (procedures,
policies, forms, checklists, etc) Mandatory procedures for 6 areas: nonconformity, corrective &
preventive action, document control, records management, internal audit.
This sets out the policies and procedures for the company to operate its quality procedures.
The role of a Quality Manager in BS EN ISO 9001:
• The quality manager will champion, support or lead quality improvement initiatives. He or she is
responsible for ensuring that all managers, process owners and supervisors develop and
maintain their part of the quality management system.
• The quality manager monitors and advises on how the system is performing, which may often
include the publication of statistics regarding company performance against set measures.
• A key role of the quality manager is that of ensuring that customer requirements and
expectations have been accurately identified and that the organisation is meeting or exceeding
customer expectations.
24
How to develop a Quality Plan
In the development of a quality plan there are a number of issues that need
to be considered:
• Establishing a set of quality requirements (customer expectations)
• Allocation of responsibilities (at all levels)
• Agree Production times to ensure quality can be met
• Agree Budgets to support quality activities
• The setting up of systems to measure quality and report progress
• Identification and calibration of quality equipment
• Ability to take corrective actions if non-conformity is found
25
Total Quality Management (TQM)
Total Quality Management or TQM is a way of thinking about goals,
organisations, processes and people to ensure that the right things are done
right first time. This thought process can change attitudes, behaviours and
hence results for the better.
These are some advantages of adopting TQM as a system of quality:
• Making an organisation more competitive through high quality
• Establishing a new culture which will enable growth and longevity
• Providing a working environment in which everyone can succeed
• Reducing Stress, waste and friction
• Building teams, partnerships and co-operation
26
2.3 Understand Organisational Improvement
Techniques and Competitiveness
You will be able to:
1. Explain the meaning of the terms lean manufacture, kaizen, just in
time and Kanban and their overall advantages
2. Recognise the importance of improving productivity
3. Recognise how to manage the production process
4. Recognise the importance of teamwork and the individuals
contribution to effective teamwork
27
Examples of Terms Meanings (1):
Lean Manufacture – the removal of waste
of all kinds (time, motion, inventory, poor
cost of quality etc.), stimulate
productivity and quality and use valueadded processes (Low Quality = High
Waste / High Quality = Low Waste and
Higher Values)
Just in Time – (Stockless production or
lean production) e.g. manufacturing to
order, not to stock up on
Kanban – is an aspect of manufacturing
that manages the overall supply chain
efficiently and effectively. It is a Japanese
manufacturing system in which the supply
Kaizen - is the philosophy that
of components is regulated through the
encompasses continuous improvement
use of an instruction card sent along the
‘can we make it faster with less waste and production line.
fewer mistakes and also makes it easier’
28
Examples of Terms Meanings (2):
Advantages:
• Better quality products/services
• Making quality a responsibility of
every worker, not just for quality
control inspectors
• Reduced scrap and re-work
• Reduced Cycle Times
• Lower Setup Times
• Smoother Production Flow
• Less inventory of raw materials,
work-in-progress and finished goods
Advantages:
• Cost savings
• Higher productivity
• Higher worker participation
• More Skilled Workforce, able and
willing to switch roles e.g. multiskilling and flexible workforce
• Reduced Space Requirements
• Improved Relationships with Supplier
• Improved Safety
29
What is Production and its history?
•
Before the Industrial Revolution, most manufactured products were made individually by hand. A single craftsman or team of craftsmen would create each part of a product. They would use their skills
and tools such as files and knives to create the individual parts. They would then assemble them into the final product, making cut-and-try changes in the parts until they fit and could work together (craft
production).
•
The Venetian Arsenal, dating to about 1104, operated similar to a production line. Ships moved down a canal and were fitted by the various shops they passed. At the peak of its efficiency in the early
16th century, the Venetian Arsenal employed some 16,000 people who could apparently produce nearly one ship each day, and could fit out, arm, and provision a newly built galley with standardized
parts on an assembly-line basis. Although the Venice Arsenal lasted until the early Industrial Revolution, production line methods did not become common even then.
•
The Industrial Revolution led to a proliferation of manufacturing and invention. Many industries, notably textiles, firearms, clocks and watches, horse-drawn vehicles, railway locomotives, sewing
machines, and bicycles, saw expeditious improvement in materials handling, machining, and assembly during the 19th century, although modern concepts such as industrial engineering and logistics had
not yet been named.
•
One of the earliest examples of an almost modern factory layout, designed for easy material handling, was the Bridgewater Foundry. The factory grounds were bordered by the Bridgewater Canal and
the Liverpool and Manchester Railway. The buildings were arranged in a line with a railway for carrying the work going through the buildings. Cranes were used for lifting the heavy work, which
sometimes weighed in the tens of tons. The work passed sequentially through to erection of framework and final assembly.
•
During the early 19th century, the development of machine tools such as the screw-cutting lathe, metal planer, and milling machine, and of toolpath control via jigs and fixtures, provided the
prerequisites for the modern assembly line by making interchangeable parts a practical reality.
•
The modern assembly line and its basic concept is credited to Ransom Olds, who used it to build the first mass-produced automobile, the Oldsmobile Curved Dash. Olds patented the assembly line
concept, which he put to work in his Olds Motor Vehicle Company factory in 1901. This development is often overshadowed by Henry Ford, who perfected the assembly line by installing driven conveyor
belts that could produce a Model T in 93 minutes. The assembly line developed for the Ford Model T began operation on December 1, 1913. It had immense influence on the world.
•
What was worked out at Ford was the practice of moving the work from one worker to another until it became a complete unit, then arranging the flow of these units at the right time and the right place
to a moving final assembly line from which came a finished product. Regardless of earlier uses of some of these principles, the direct line of succession of mass production and its intensification into
automation stems directly from what we worked out at Ford Motor Company between 1908 and 1913. Henry Ford is generally regarded as the father of mass production. He was not. He was the sponsor
of it.
•
Ford's complex safety procedures—especially assigning each worker to a specific location, reduced the rate of injury. The combination of high wages & high efficiency is called "Fordism", and was copied
by most major industries. The efficiency gains from the assembly line also coincided with the take-off of the United States. The assembly line forced workers to work at a certain pace with very repetitive
motions which led to more output per worker while other countries were using less productive methods.
•
The massive demand for military hardware in World War II prompted assembly-line techniques in shipbuilding and aircraft production. Thousands of Liberty Ships were built making extensive use of
prefabrication, enabling ship assembly to be completed in weeks or even days. After having produced fewer than 3,000 planes for the United States Military in 1939, American aircraft manufacturers
built over 300,000 planes in World War II. Vultee pioneered the use of the powered assembly line for aircraft manufacturing. Other companies followed. As William S. Knudsen of the National Defense
Advisory Commission observed, "We won because we smothered the enemy in an avalanche of production, the like of which he had never seen, nor dreamed possible.
•
Henry Ford mentions several benefits of the assembly line including; Workers do no heavy lifting, No stooping or bending over, No special training required, There are jobs that almost anyone can do,
Provided employment to immigrants.
•
One of Capitalism's most famous critics; Karl Marx highlighted in the Entfremdung theory the fact that in order to achieve job satisfaction workers need to see themselves in the objects they've created,
products should be "mirrors in which workers see their reflected essential nature.“ Specialisation makes it incredibly difficult for any worker to achieve a sense of genuine contribution they may be
making to the real needs of humanity. The repetitive nature of specialised tasks causes a feeling of disconnection between what a worker does all day and who they really are and would ideally be able to
contribute to existence. Marx also argued that specialised jobs are insecure, since they make the worker utterly expendable the minute costs rise and savings can be made through technology.
•
Since workers have to stand in the same place for hours and repeat the same motion hundreds of times per day repetitive stress injuries are a possible pathology of occupational safety. Industrial
noise also proved dangerous. When it was not too high, workers were often prohibited from talking. Charles Piaget, a skilled worker at the LIP factory, recalled that beside being prohibited from
speaking, the semi-skilled workers had only 25 centimeters in which to move. Industrial ergonomics later tried to minimize physical trauma.
30
What are the benefits of improved productivity within a
company’s workforce?
Improved productivity can have many benefits for the company. Some examples of benefits are:
• Higher Morale
• Better cost savings from employees investing in the processes and suggesting cost improvements
• Better profit margins
• Higher Quality Products
It can also improve the Regions economy as well as overall GDP:
• Better profits means better earnings for the employee as there will be more to share around
• Better company profitability means security of employee jobs
• Better company profitability means more secure pensions on offer to employees
• Better company productivity means better safety in the company as they are all working more effectively as a result
and not producing shoddy goods or ‘bodging’ projects
• Better Working hours and conditions as everyone is working efficiently to produce better quality goods in a better
style of working environment
• More earnings for the employees means that there is more GDP being spent in the local economy overall therefore
meaning more taxes for the Government. This over a multiplying effect of several hundreds or thousands of
companies combined effect can produce great results for the overall economy of the UK.
31
Improved Productivity = Less Waste???
Improved Productivity can reduce wastage
in many ways (see the diagram to the right)
however its important to see how reduced
wastage can have an effect on the
environment – can you suggest ways in
which this might be the case??
Some examples:
- Reduced Steel usage = less steel
consumed = less steel cast in foundries =
less CO2 emissions
- Improved Logistics productivity = less
wagons used to transport goods = cost
savings for the company + less CO2
produced through fuel emissions
What can you think of that may help the
environment?
32
The importance of Market Competitiveness
National and global markets are driven by competitiveness, therefore its important for
companies to improve their ability to be competitive and be more productive.
• Multinationals – these have a massive need to ensure that they are competitive else
they will result in redundancies
• Nationals – have to remain competitive to compete with the muli-nationals who
have global networks to rely on
• Regional – by increasing their productivity it means that they can take on specialist
talent in order to compete with national firms and strive towards becoming a
national company
• SMEs – have limited workforce size and need to remain competitive to retain talent
that they want to compete so they can pay good wages to stop them being stolen by
nationals and multinationals who pay better normally
• Sole Traders – if they do not remain competitive they go out of business!
33
Continuous Improvement
What is Continuous Improvement? “is a long-term approach to work that systematically seeks to achieve
small, incremental changes in processes in order to improve efficiency and quality.”
What are the benefits of Continuous Improvement?
• Improvements are based on many small changes rather than the radical changes that might arise from
Research and Development
• As the ideas come from the workers themselves, they are less likely to be radically different, and therefore
easier to implement
• Small improvements are less likely to require major capital investment than major process changes
• The ideas come from the talents of the existing workforce, as opposed to using research, consultants or
equipment – any of which could be very expensive
• All employees should continually be seeking ways to improve their own performance
• It helps encourage workers to take ownership for their work, and can help reinforce team working, thereby
improving worker motivation.
Who takes control of Continuous Improvement? – The answer is EVERYONE!
34
Continuous Improvement
What are the basic 4 stages of Continuous Improvement? They are Plan, Do, Check and Action (the improvement).
What are the underlying principles of Continuous Improvement?
1. Challenge
• Have a long term Vision of the challenges you need to face to realize your ambition – what you need to learn rather than what you want to do and
then have the spirit to face that challenge.
• To do so, you and your team have to challenge yourselves every day to see if you are achieving your goals.
2. Kaizen
• Establishing the Kaizen Mindset is the starting point of the continuous improvement journey. Everything can and should be improved. Good
enough never is, no process can ever be thought perfect, so operations must be improved continuously, striving for evolution and innovation.
3. Go and See (Genchi Genbutsu):
• This is a key principle of the Toyota Production System. The only way to truly understand what happens on the shop floor ('gemba') is to go there.
It is here that value is added and here that waste could be observed. 'Go and See' is therefore a key approach in problem solving.
• If the problem exists on the shopfloor then it needs to be understood and solved at the shop floor. Since real value is created at the shop floor in
manufacturing, this is where management need to spend their time. Go to the source to see the facts for oneself and make the right decisions,
create consensus, and make sure goals are attained at the best possible speed. This attitude of "Go and See" is also called Gemba attitude.
4. Making It Work: Respect For People
• Respect For People at Toyota essentially involves two defining principles:
• 1. Respect: Taking every stakeholders' problems seriously, and making every effort to build mutual trust. Taking responsibility for other people
reaching their objectives.
• 2. Teamwork: Develop individuals through teams-based problem-solving. Engage people and develop them through their contribution to team
performance. The are three team levels: shop floor teams, the whole site as team, and the whole company as a team.
35
Continuous Improvement
Flexible Working - is a phrase that describes any working pattern adapted to suit your needs. Common types of flexible
working are: Part-time: working less than the normal hours, perhaps by working fewer days per week. Flexi-time: choosing
when to work (there's usually a core period during which you have to work). This means that hours can be developed to suit
the business needs rather than being stuck to stringent hours which are inflexible.
Multi-Skilling - is a mechanism by which companies can improve efficiency, reduce costs, improve quality, and increase
production etc.
Flexibility: A company with multi-skilled employees has a flexible workforce, which provides the employer with the ability to
schedule and arrange workers to best suit the needs of the business. Workers are able to fill in for absent employees and
work in any area of the business that requires increased manpower at any time, and for any duration. This allows the
business owner to maintain production levels under many circumstance that would otherwise leave workers idled or profits
left on the table.
Decreased Labour Costs :A business with a multi-skilled labour force can operate with a reduced number of employees
necessary to conduct business. Workers who are skilled in only one area of the business may sit idle while waiting for work
to become available. A multi-skilled workforce moves with the workload instead of waiting for the work to come to them.
This results in fewer idle work hours, which reduces the cost to the business owner.
Efficiency in Planning: Planning and scheduling workers can make changes to the production schedule to meet customer
demand without a loss of productivity. For example, when a customer requests a faster delivery, planners can adjust the
production schedule to meet the new date without disruption to production because all workers can focus on the new
customer demand. In a business with a flexible workforce, planning and scheduling activities can always focus on the needs
of the customer and not the capabilities of the staff.
Employee Satisfaction: Multi-skilled workers are not threatened by obsolescence when new technology changes the
method of production, as workers used to learning new skills consistently can adapt to changes in production. Employee
satisfaction improves morale in a business, which leads to increases in productivity and employee retention rates.
36
The Benefits of Continuous Improvement?
What benefits of continuous improvement to companies? Explain in
the context each of the below:
• Multi-nationals
• Nationals
• Regional
• SME’s
• Sole Traders
37
Managing the Production Process
What is the importance of the layout of the production area?
Facility layout and design is an important component of a business's overall operations, both in terms of maximizing the effectiveness of the production process and meeting the
needs of employees. The basic objective of layout is to ensure a smooth flow of work, material, and information through a system. The key to good facility layout and design is
the integration of the needs of people (personnel and customers), materials (raw, finishes, and in process), and machinery in such a way that they create a single, wellfunctioning system.
What are the following?
Batch Production: is a technique used in manufacturing, in which the object in question is created stage by stage over a series of workstations, and different batches of products
are made. With job production (one-off production) and flow production (continuous production) it is one of the three main production methods.
Synchronisation: Systematic movement of information, materials, and other resources, through all stages in a manufacturing process, in concert with market demand. A
Process in which each production run (or batch) outputs identical sequence of items in terms of mix, rate, and quantity.
Lead Time: the time between the initiation and completion of a production process.
How can lead time be improved? How do you reduce lead time? It's not by working faster. Here are key strategies:
•
Work in parallel. If work is done in parallel instead of in series, there isn't less work, but it is completed sooner. When my wife asks me to pour the kids some milk while she's
putting food on the plate, it gets dinner on the table sooner. Most efforts of set-up reduction are solved in this way: taking steps done in series after the machine stops and
moving them to being done in parallel to the machine running.
•
Eliminate loops. Working faster often fails because it inadvertently increases errors. Rework is the most common form of loops. There is an exception, and that is when the
loops primarily are designed for learning. If knowledge is the end result of the process, loops aren't rework. They are each a value-added step toward the objective.
•
Eliminate handoffs. Every handoff is an opportunity for a delay or an error. Work stops and must be transferred before it begins again. Worse, the next resource is not
immediately ready to begin so the work waits in queue. The most substantive improvements are often from eliminating handoffs. Removing people from the process
eliminates handoffs. Many retail services that require approvals give employees the tools needed to do approvals themselves, so customers get answers faster.
•
Eliminate steps altogether. Cutting out steps not only reduces lead time by the time needed for those steps, but also likely eliminates two handoffs. To improve hiring lead
time, instead of finance verifying the budget availability, they design tools so managers can do it themselves. This eliminates the step for finance, saving 15 minutes, but the
handoff to finance and back eliminates over a week of lead time.
•
Compress the work. Getting the work done in less time, not by working faster, is often the hardest. After spell-check was invented, it took less time to check the spelling in
this column. Technology is often a solution here, whether it is buying faster equipment in manufacturing or developing software tools for the office. Capacity frequently is
increased, although that was not the driving objective.
•
Increase capacity. Capacity can increase many ways, including by compressing the work. You can also add more resources. This impacts lead time because after a handoff, the
38
resource is busy with the last task, creating a queue. Increasing capacity reduces the queue time.
The Definition of TEAM?
The literal definition of ‘team’ is:
What is TEAM?
“A group of people with a full set of
complementary skills required to complete a task, job,
or project.
Team members (1) operate with
a high degree of interdependence,
(2) share authority and responsibility for selfmanagement, (3) are accountable for the
collective performance, and (4) work toward
a common goal and shared rewards(s). A team
becomes more than just a collection of people when a
strong sense of mutual commitment creates synergy,
thus generating performance greater than the sum of
the performance of its individual members.”
T - together
E - everyone
A - achieves
M - more
Read more: http://www.businessdictionary.com/definition/team.html#ixzz3t4ofudv6
39
The importance and Roles of a team
What are the key roles within a team?
• Leaders – people who co-ordinate the roles of others. They motivate, clarify and check
understanding
• Doers – very action orientated. They achieve tasks and contribute drive and energy to the team.
• Thinkers – think through problems. They tend to be analytical and enjoy planning and problem
solving.
• Carers - interested in developing a good team spirit. They work to ease tensions and develop
relationships
Why is it important to have balance within a team?
Belbin suggests that, by understanding your role within a particular team, you can develop your
strengths and manage your weaknesses as a team member, and so improve how you contribute to the
team.
Team leaders and team development practitioners often use the Belbin model to help create more
balanced teams.
Teams can become unbalanced if all team members have similar styles of behavior or team roles. If
team members have similar weakness, the team as a whole may tend to have that weakness. If team
members have similar team-work strengths, they may tend to compete (rather than cooperate) for
the team tasks and responsibilities that best suit their natural styles.
40
The importance and Roles of a Team
What can individuals bring to a team?
Individuals can bring unique ideas and perspectives on a subject that ordinarily may be obscured by an authoritarian style of management. They allow
for these ideas to be bounced around the team and discussed at length to ensure the idea is sensible before suggesting it to be implemented by the
company.
Why the interest in team building?
• Well, look what teams in a business environment can achieve:
• They can generate a wider range of ideas and innovation than individuals;
• They are able to motivate themselves;
• They can bounce ideas off each team member;
• They often take more risks than individuals;
• They have a range of personalities such as workers, thinkers, leaders who contribute the right balance of skills necessary to achieve high
performance;
• They support each other and are not just task-orientated;
• They can be a support mechanism which provide mentoring and allow others to grow in self-confidence
• If you have the individuals with the potential to create a high performing team, just imagine what they could achieve for your sales, productivity or
bottom line!
Why is effective Communication within a team important?
Effective communication can bring a number of benefits to a company and a team including; efficient action – so that messages are delivered quickly
and correctly as intended, it encourages input from other team members so that the team can utilise all its internal resources, it encourages dynamic
change the team is able to keep up because important information is shared efficiently. Information that the team needs in order to adapt to business
changes reaches each team member quickly in an efficient team communication structure and finally it helps to create understanding When a team is
able to communicate effectively, each member is better able to understand his teammates. Cultural diversity becomes a benefit, because the team
41
communicates so well that mutual understanding helps to facilitate progress.
2.4 Understand Personnel Rights and Responsibilities
within an organisation
You will be able to:
• Identify the relevant organisational documentation and employment
legislation in relation to personnel rights and responsibilities.
• Identify the personnel opportunities for development and progression.
• Identify the representative bodies in the engineering sector that support
personnel and organisations.
• Explain the implications that ‘Investors in People’ has on an organisation and
its personnel.
42
Relevant Organisational Documentation and Employment
Legislation (1)
Contracts of Employment
A contract of employment is an
agreement between an employer and
an employee which sets out
their employment rights,
responsibilities and duties. These are
called the 'terms' of the contract.
Employment Rights Act
It deals with rights that most
employees can get when they work,
including unfair dismissal, reasonable
notice before dismissal, time off rights
for parenting, redundancy and more. It
was amended substantially by the
Labour government since 1997, to
include the right to request flexible
working time.
43
Relevant Organisational Documentation and Employment
Legislation (2)
Staff Handbooks
An employee handbook, sometimes
also known as an employee
manual or staff handbook, is a book
given to employees by an employer.
Usually, the employee
handbook contains information about
company policies and procedures.
Working Time Regulations
Most workers should not have
to work more than an average of 48
hours a week, according to
the Working Time Regulations. The
Regulations also give you rights to paid
holiday, rest breaks and limits on
night work.
44
Relevant Organisational Documentation and Employment
Legislation (3)
Health and Safety at Work Act
Health and Safety at
Work etc. Act 1974. Often referred to
as HASAW or HSW, this Act of
Parliament is the main piece of
UK health and safety legislation. It
places a duty on all employers "to
ensure, so far as is reasonably
practicable, the health, safety and
welfare at work" of all their
employees.
Data Protection Act
The Data Protection Act 1998.
The Data Protection Act (DPA) gives
individuals the right to know what
information is held about them, and
provides a framework to ensure that
personal information is handled
properly.
45
Relevant Organisational Documentation and Employment
Legislation (4)
Personnel Records
Every employer maintains personnel
records to document the employment
relationship with employees. Personnel
records range from employee recognition
letters to job applications to personnel
files. Personnel records provide a paper
trail of an employee's background,
experiences, history, accomplishments,
goals, feedback, disciplinary action (if
any), recognition, and promotions, to
name just a few personnel records. Find
out more about personnel records and
see examples of personnel records.
Equal Opportunities Policies
An equal opportunities policy should:
make clear your organisation's
commitment to equal opportunities,
non-discriminatory procedures and
practices. list all the forms of
discrimination covered by the policy, ie
age, gender, race, religion or belief,
sexual orientation, disability or pay
rate.
46
Relevant Organisational Documentation and Employment
Legislation (5)
Sex Discrimination Act
The Sex Discrimination Act 1975 (c. 65)
is an Act of the Parliament of the
United Kingdom which protected men
and women from discrimination on
the grounds of sex or marital status.
The Act concerned employment,
training, education, harassment, the
provision of goods and services, and
the disposal of premises.
Race Relations Act
The Race Relations Act 1965 was the
first legislation in the United Kingdom
to address racial discrimination.
The Act outlawed discrimination on
the "grounds of colour, race, or ethnic
or national origins" in public places.
47
Relevant Organisational Documentation and Employment
Legislation (6)
Race Relations (Amendment Act)
Key points of the Race Relations Amendment Act implementation report:
• Racial discrimination is "unacceptable" and is outlawed in all public authorities, and in those functions of public
authorities run by the private sector.
• Public bodies will have a general duty to promote race equality - they will have no discretion to decide "whether
the promotion of race equality is an 'appropriate activity' ".
• They must promote equality of opportunity and "good relations" between people of different racial groups.
• The general duty to promote race equality is a "positive one" requiring public authorities to be pro-active in
seeking to avoid unlawful discrimination before it occurs.
• Organisations covered by the act must monitor their workforce and take steps to ensure that ethnic minorities
are treated fairly.
• They must assess how policies and programmes can affect ethnic minorities, and take remedial action where
any potential for "adverse differential impact" on ethnic minority communities is identified.
• Bodies must monitor the implementation of policies and programmes to ensure they meet the needs of ethnic
minorities.
• Each organisation must have a "publicly stated policy on race equality".
• The commission for racial equality has powers under the act to issue a compliance notice to a public body which
it believes is not fulfilling its duties to promote race relations.
• On employment issues, public bodies will be expected to ethnically monitor staff in post and applicants for jobs,
promotion and training. They must analyse grievances, disciplinary action, dismissals and other reasons for
leaving, particularly among senior employees.
• The results of ethnic monitoring should be published each year by each public body covered by the act.
Human Rights Act
The Human Rights Act is
a UK law passed in 1998.
It means that you can
defend your rights in the
UK courts and that
public organisations
(including the
Government, the Police
and local councils) must
treat everyone equally,
with fairness, dignity
and respect.
48
Relevant Organisational Documentation and Employment
Legislation (7)
Disability Discrimination Act
This is the main disability discrimination law. It bans disability
discrimination by employers against disabled job-seekers and employees
and by service providers against disabled service-users. It is most notable
for imposing a duty on employers and service providers to make
reasonable adjustments for disabled people to help them to overcome
barriers that they may face in gaining and remaining in employment and in
accessing and using goods and services. The main activities covered by the
DDA are• employment, including access to employment
• access to and use of goods, facilities and services, including access to
public buildings, shops and leisure facilities and to healthcare, housing
and transport
• certain other functions carried out by public bodies, such as policing
and issuing licences
• membership of private clubs and use of their facilities
• The legislation requires public bodies to promote equality of
opportunity for people with disabilities. It also allows the government to
set minimum standards so that people with disabilities can use public
transport easily.
Grievance Procedures
Grievance procedures are a
means of dispute resolution
that can be used by a
company to address
complaints by employees,
suppliers, customers, and/or
competitors. A grievance
procedure provides a
hierarchical structure for
presenting and settling
workplace disputes.
49
Relevant Organisational Documentation and Employment
Legislation (8)
Appraisals
Disciplinary Procedures
The main purpose of appraisal is to give the appraisee the opportunity to
reflect on their work and learning needs in order to improve their
performance. This can be achieved through discussing their
development and feedback on their job performance in a way that is
constructive and motivational. It should result in an effective personal
development plan. So lesson one is not to spend 95% of the time
available purely reviewing past performance and lesson two is to involve
the appraisee fully in the discussion so that they can get the maximum
benefit from it.
Ideally appraisal should be:
• Your employer should put their disciplinary procedure in writing, and
make it easily available to all staff.
• a piece of ‘two-way’ rather than ‘one-way’ communication
1.
A letter setting out the issue.
• a process rather than an event
2.
A meeting to discuss the issue.
• a tool for development as well as for assessing performance.
3.
A disciplinary decision.
4.
A chance to appeal this decision.
It is also important to be clear on a couple of things that appraisal is not.
First, appraisal is not a disciplinary process or a disciplinary discussion.
There are other, separate processes for addressing serious issues to do
with conduct or capability, which should be followed and used
appropriately. Second, it is not a discussion you ‘save things up for’.
Whether containing praise or criticism, merits or mistakes, timely
feedback is really the only sort of feedback that has value. So there
should essentially be no surprises in the appraisal discussion.
• It should say what performance and behaviour might lead to
disciplinary action and what action your employer might take.
• It should also include the name of someone you can speak to if you
don’t agree with your employer’s disciplinary decision.
Your employer’s disciplinary procedure should include the following
steps:
Your employer’s disciplinary procedures should follow the ACAS code of
practice.
50
Development and Progression Opportunities (1)
Company Training Programmes
Developing an effective employee training
program is vital to the long-term success of
any business. Training programs provide
multiple benefits for employees and the
company, but only if they are carefully
planned and properly implemented. Clear
understanding of policies, job functions,
goals and company philosophy lead to
increased motivation, morale and
productivity for employees, and higher
profits for your business. Training is a means
to a specific end, so keeping goals in mind
during the development and implementation
stages of your training program will assist in
creating a clearly defined and effective
program.
Apprenticeships
Apprenticeships combine practical training in a job with
study. As an apprentice you’ll:
• work alongside experienced staff
• gain job-specific skills
• earn a wage and get holiday pay
• study towards a related qualification (usually one day a
week)
• Apprenticeships take 1 to 4 years to complete depending
on their level.
An apprenticeship has an equivalent education level and can
be:
• Intermediate – equivalent to 5 GCSE Passes
• Advanced – equivalent to 2 A Level Passes
• Higher - equivalent to NVQ Level 4 and above or a
foundation degree
51
Development and Progression Opportunities (2)
Organisational Training Opportunities
Training is about improving knowledge
and skills in an individual or group. It’s
about making it easier for you to do
what you do, increasing productivity
and making a greater impact with your
organisation. New and improved skills
don’t always improve organisational
services, and staff may not always
respond well, so you need to choose
training and trainers carefully.
Promotions
When the time comes to promote an
employee, you must make the choice by
thoroughly evaluating each candidate.
Since a promotion comes with new
challenges for the employee to overcome
and daily tasks for him to complete,
employees who are not qualified for the
new position can stumble and cause the
company to struggle. Evaluating an
employee for a promotion requires you to
assess an employee’s skills, effectiveness
at his current position and potential for
growth.
52
Development and Progression Opportunities (3)
Transfer
• There are many reasons employees consider
transferring jobs. When you are relocating and
want to continue working for the same
company, a transfer may be a viable option.
• If you aren't thrilled with your job, but like your
company, one of the first places to consider for
new employment may be your current
employer. When you are interested in changing
your job function, a transfer can be a good way
to start a new career path without having to
seek employment with a new company.
Benefits of Transferring
• An internal transfer can have many advantages,
including the retention of your current pay
level, retirement plan, healthcare coverage,
vacation benefits and friendships with coworkers.
Higher Education – the benefits!
53
Development and Progression Opportunities (3)
Professional Qualifications
1. Gain job related skills
• The first thing to understand is that your bachelor’s degree is an academic qualification. Professional and academic qualifications may sound similar but in fact they are
quite different. Academic qualifications will help you learn the theory of marketing. You will study the works of different authors and theorists and understand how
tactics and strategies are developed. However, studying how to run an email campaign is not the same as actually running one. This is where professional courses come
in. Unlike most academic courses, professional courses such as CIM and CAM are assessed through assignments where you are required to conduct an actual marketing
campaign, or develop a blog or presentation. This practice will equip you for a professional role in marketing.
2. Work towards an MBA
• An MBA does open doors that remain locked to others. However it can be very time consuming, not to mention expensive. Professional courses address both of these
issues. Our previous blog post discussed educational credits, which allow you to work towards an MBA by completing diploma and certificate courses. These include
professional courses. For example, a CIM introductory certificate counts for 12 credits, a CIM professional certificate for 40. This makes completing your professional
qualification both affordable and flexible, helping you get closer to adding ‘MBA’ to your business card.
3. Show commitment
• Your bachelor’s degree offers scope for a range of jobs, but a professional qualification provides you with much better chances of getting a specific job. Commitment
matters, and getting a professional qualification in an area of work you are interested in will show your dedication in that area. Look at it from the perspective of a
recruiter: a candidate with a business management bachelor’s degree will seem less dedicated to digital marketing than another who has an added CAM Diploma in
Digital Marketing.
4. Climb the corporate ladder
• Say you land a good job with a bachelor’s qualification. Good on you! But it will be hard to progress just by sticking to the day job. A bachelor’s degree alone does not
offer the skills and experience necessary to reach those top senior management positions. In fact, the majority of those that started a professional course at LSM stated
that their key aim was to progress further in their career. With career growth comes financial perks as well; so those with professional qualifications on top of a
bachelor’s degree get paid better too.
5. Network
• The world today is run by people who know people. Professional courses are taught by industry leaders who have direct influence on and knowledge of the industry you
are entering. Professional courses also attract mature, experienced individuals. The majority of LSM students who enrol in professional qualifications are currently
working or have had previous work experience. Each and every student in the class brings another opportunity for you to network.
• It all comes down to one thing: how well-prepared you want to be when approaching the job market. Professional qualifications are all about employability. Unless
you’re considering a future in academia, theoretical knowledge alone will not be sufficient. In order to get a job you love, you need to develop a practical understanding
54
of your field of interest. These days a degree is an essential, but what sets you apart is your choice of professional qualification, such as a CIM diploma.
What are the Roles of these representative bodies?
Trade Unions
Professional Bodies
•
Although trade unions look after the interests of their members, they also
recognise the advantages of working in partnership with employers. This is
because a successful, profitable business is good for workers and therefore
good for the union and its members.
•
An employer and a recognised trade union interact with the workplace in a
number of ways, as set out below.
Professional bodies are organisations whose members are individual professionals.
In some professions it is compulsory to be a member of the professional body, in
others it is not. This usually depends on whether or not the profession requires the
professional to have a ‘licence to practice’, or to be on a professional register, in
order to do their job. This is related to how the profession is regulated i.e. who is
responsible for making sure that professionals are doing their jobs properly.
The professional body may have a number of functions. They may:
Negotiating collective agreements
•
Set and assess professional examinations
•
If you recognise a trade union in your workplace, you will probably have
agreed with the union to bargain with it about the terms and conditions of
employment of those workers who fall within a defined bargaining unit.
•
Provide support for Continuing Professional Development through learning
opportunities and tools for recording and planning
•
Sometimes, that bargaining unit will include all workers but it is common for
the unit to include just certain categories of worker, eg production line
operatives or technicians.
•
Publish professional journals or magazines
•
Provide networks for professionals to meet and discuss their field of expertise
•
The objective of such collective bargaining is to conclude a collective
agreement with the trade union. Where an independent trade union is
recognised, the employer is obliged to disclose information to the trade union
to facilitate the bargaining process.
•
Issue a Code of Conduct to guide professional behaviour
•
Deal with complaints against professionals and implement disciplinary
procedures
•
Be enabling fairer access to the professions, so that people from all
backgrounds can become professionals.
•
Provide careers support and opportunities for students, graduates and people
already working.
55
What are the Roles of these representative bodies?
Employers Organisations e.g. EEF
Industry Training Support (Sector Skills Councils or SSCs)
EEF is the manufacturers’ organisation - the leading voice of UK manufacturing
and engineering and a key provider of business support services. It is the most
powerful force backing UK manufacturing, working diligently to help the UK
maintain its position as the world’s ninth largest manufacturing nation.
Manufacturing is vital to the UK economy and is undergoing a renaissance, a
turnaround which took hold in 2013 and which could not have come at a more
important time for UK industry.
Sector Skills Councils and Bodies -There are 16 Sector Skills Councils
and 5 Sector Skills Bodies who work with over 550,000 employers to
define skills needs and skills standards in their industry. One of the
Sector Skills Councils is also an Industry Training Board (Construction).
They collect a levy from their Members support businesses through
training grants.
This is an exciting time for EEF as it agrees its strategic plan for the next five years
and addresses key issues such as the future shape and direction of the Eurozone
and EU, the rebalancing of the UK economy, the creation of the Northern
Powerhouse and other influences, to maintain an environment in which
manufacturers and wider industry can innovate, thrive and compete in Britain,
Europe and globally.
• Sector Skills Councils and Bodies with employers define occupational
standards and job competencies. These are used in many different ways
by employers.
The incumbent Chair, Martin Temple, has announced his intention to stand down
at the end of 2015.
The Role:
• Sector Skills Councils and Bodies with employers are responsible for
defining the qualifications which go together to make up an
apprenticeship framework. This framework is then used by employers to
enable them to select the qualification structure most appropriate for
each individual apprentice.
•
Lead and manage the business of the board to provide clear direction and
focus whilst ensuring board members have the collective capability
appropriate for the needs of the organisation.
• Sector Skills Councils and Bodies advise employers about the
qualification that are best suited for the apprenticeship and have
available a list of training providers that can deliver those qualifications.
•
Establish a positive, supportive relationship with the Chief Executive and
other senior members of the management team.
•
Support the CEO and Executive Board in the delivery of business objectives.
• Sector Skills Councils and Bodies are responsible for ensuring that the
correct evidence for each qualification is verified in order to enable the
issue of a valid apprenticeship certificate.
•
In consultation with the Chief Executive, who leads in this area, represent EEF
with key stakeholders building further its reputation and influence.
56
What is the ‘Investors in People IiP National Standard?
What is the Investors in People National Standard?
Investors in People (IiP) is a nationally recognised framework that helps organisations to
improve their performance and realise their objectives through the effective management
and development of their people.
What are the key principles of IiP?
The Key principles of IiP are Leading, Supporting
and Improving.
How do you get assessed for Investors in People?
It first starts through stage 1; Discovery - whereby the organisation uses a Self-Diagnostic
Tool, 2 – Online Assessment of the organisations own activities, 3 – Employee Interviews and
Observations of the companies observations and lastly 4 – Accreditation Report and
Feedback.
57