Work

1
Work
2
Outline

• Productivity and Efficiency
• Cultural Differences

3
Productivity

• The concept of productivity is poorly understood
  and yet widely discussed.
• Migrating from manufacturing to knowledge work
  has not helped the situation.

4
Definition

• The amount of output per unit of input (labor,
  equipment, and capital).
• There are many different ways of measuring
  productivity. For example, in a factory
  productivity might be measured based on the
  number of hours it takes to produce a good, while
  in the service sector productivity might be
  measured based on the revenue generated by an
  employee divided by his/her salary.

http//www.investorwords.com/3876/productivity.htm
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Productivity and Efficiency

• Productivity measures completed work
• Efficiency measures the amount of work done,
  regardless of how much completed product there is.

6

• Bill works 30 hours and makes 100 widgets.
• Mike works 60 hours and makes 101 widgets.

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Cultural Differences

• U.S.
• Japan

8
Frederick Taylor

• Wrote The Principles of Scientific Management in
  1911, these principles became known as Taylorism.
• "The principal object of management should be to
  secure maximum prosperity for the employer,
  coupled with maximum prosperity for the employee"

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Taylorism (1/3)

• Time studies
• Functional or specialized supervision
• Standardization of tools and implements
• Standardization of work methods
• Separate Planning function
• Pay linked to productivity
• The use of the 'differential rate'

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Taylorism (2/3)

• Science, not rule of thumb
• Harmony, not discord
• Cooperation, not individualism
• Maximum output in place of restricted output
• The development of each man to his greatest
  efficiency and prosperity

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Taylorism (3/3)

• Hierarchical leadership
• Fixed, not fluid
• Split locations for manufacturing and office work
• Offices were compartmentalized
• Work became specialized with divisional labor
• Office features were a symbol of status
• Product/outcome focused - not customer focused

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Result (1/2)

• new departments-industrial engineering,
  personnel, quality control
• growth in middle management separation of
  planning from operations
• rational rules and procedures increase in
  efficiency
• formalized management, mass production
• human problems-dehumanization of work sabotage,
  group resistance, hatred

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Result (2/2)

• While his principles have a certain logic, most
  applications of it fail to account for two
  inherent difficulties
• It ignores individual differences the most
  efficient way of working for one person may be
  inefficient for another
• It ignores the fact that the economic interests
  of workers and management are rarely identical,
  so that both the measurement processes and the
  retraining required by Taylor's methods would
  frequently be resented and sometimes sabotaged by
  the workforce.

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Note

• A basic tenet of scientific management was that
  employees were not highly educated and thus were
  unable to perform any but the simplest tasks.
• Modern thought is that all employees have
  intimate knowledge of job conditions and are
  therefore able to make useful contributions.
• Rather than dehumanizing the work and breaking
  the work down into smaller and smaller units to
  maximize efficiency, we look more toward issues
  of job satisfaction by providing the worker with
  the opportunity to improve the work context.

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Implementations

• U.S.
• Adversarial
• Japan
• Cooperative

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History

• August 15, 1945
• VJ Day
• In 1970, Japanese four-wheeled motor vehicle
  exports reached the 1,090,000 mark, surpassing
  Italy, the U.S. and the U.K. (in that order) and
  making Japan the world's third largest automobile
  exporter. In 1971 Japanese exports surpassed
  those of France, and in 1974, with a total of
  2,620,000 export units, Japan moved past West
  Germany to become the largest exporter of
  automobiles in the world.

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W. Edward Deming

• His influential work in Japan--instructing top
  executives and engineers in quality
  management--was a driving force behind that
  nation's economic rise.   Dr. Deming contributed
  directly to Japan's phenomenal export-led growth
  and its current technological leadership in
  automobiles, shipbuilding and electronics.

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Demings 14 Points

• Create and communicate to all employees a
  statement of the aims and purposes of the
  company.
• Adapt to the new philosophy of the day
  industries and economics are always changing. 
• Build quality into a product throughout
  production.  
• End the practice of awarding business on the
  basis of price tag alone instead, try a
  long-term relationship based on established 
  loyalty and trust. 
• Work to constantly improve quality and
  productivity. 
• Institute on-the-job training.
• Teach and institute leadership to improve all job
  functions.
• Drive out fear create trust. 
• Strive to reduce intradepartmental conflicts.
• Eliminate exhortations for the work force
  instead, focus on the system and morale. 
• (a) Eliminate work standard quotas for
  production. Substitute leadership methods for
  improvement.
• (b) Eliminate MBO. Avoid numerical goals.
  Alternatively, learn the capabilities of
  processes, and how to improve them.
• Remove barriers that rob people of pride of
  workmanship
• Educate with self-improvement programs.
• Include everyone in the company to accomplish the
  transformation.

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Deming (1/2)

• 1. Create constancy of purpose for the
  improvement of product and service, with the aim
  to become competitive, stay in business, and
  provide jobs.
• 2. Adopt a new philosophy of cooperation
  (win-win) in which everybody wins and put it into
  practice by teaching it to employees, customers
  and suppliers.
• 3. Cease dependence on mass inspection to achieve
  quality. Instead, improve the process and build
  quality into the product in the first place.
• 4. End the practice of awarding business on the
  basis of price tag alone. Instead, minimize total
  cost in the long run. Move toward a single
  supplier for any one item, based on a long-term
  relationship of loyalty and trust.
• 5. Improve constantly, and forever, the system of
  production, service, planning, of any activity.
  This will improve quality and productivity and
  thus constantly decrease costs.
• 6. Institute training for skills.
• 7. Adopt and institute leadership for the
  management of people, recognizing their different
  abilities, capabilities, and aspiration. The aim
  of leadership should be to help people, machines,
  and gadgets do a better job. Leadership of
  management is in need of overhaul, as well as
  leadership of production workers.

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Deming (2/2)

• 8. Drive out fear and build trust so that
  everyone can work more effectively.
• 9. Break down barriers between departments.
  Abolish competition and build a win-win system of
  cooperation within the organization. People in
  research, design, sales, and production must work
  as a team to foresee problems of production and
  use that might be encountered with the product or
  service.
• 10. Eliminate slogans, exhortations, and targets
  asking for zero defects or new levels of
  productivity. Such exhortations only create
  adversarial relationships, as the bulk of the
  causes of low quality and low productivity belong
  to the system and thus lie beyond the power of
  the work force.
• 11. Eliminate numerical goals, numerical quotas
  and management by objectives. Substitute
  leadership.
• 12. Remove barriers that rob people of joy in
  their work. This will mean abolishing the annual
  rating or merit system that ranks people and
  creates competition and conflict.
• 13. Institute a vigorous program of education and
  self-improvement.14.Put everybody in the company
  to work to accomplish the transformation. The
  transformation is everybody's job.
• 14. Put everybody in the company to work to
  accomplish the transformation. The transformation
  is everybody's job.