1. Explain the three major components of organizational productivity. The three major components of organizational productivity are (1) efficiency of technology, (2) efficiency of labor, and (3) effectiveness of management.
2. Discuss the benefits of work-methods improvement. Reduced costs, higher productivity, reduced delays, higher quality, reduced waste, improved safety, and more satisfied employees are among the potential benefits of methods improvement.
3. Distinguish between motion study and time study. Motion study is concerned with determining the most efficient set of motions required to do a given task. Time study is the analysis of a task to determine the elements of work required to perform it, the order in which the elements occur, and the time required to perform them effectively.
4. Present a systematic approach for improving work methods. The PDCA Cycle presents a systematic approach for improving work methods. The PDCA Cycle consists of four major stages: (1) plan, (2) do, (3) check, and (4) act. Successful implementation of the PDCA Cycle requires a balanced emphasis on each of the four stages.
5. Describe the Kaizen philosophy for improvement. Kaizen literally means “good change.” In today’s context, Kaizen describes a process of continuous and relentless improvement. Kaizen is not based on large technical leaps of innovations but on the incremental refining of existing processes.
6. Describe the supervisor’s role in improving productivity through cost reduction and control. The supervisor is a key person in any cost reduction and control program because he or she is in an ideal position to do something about costs. The supervisor also sets the tone for the entire department and largely influences the attitudes of the employees with regard to cost reduction and control.
7. Summarize several cost-reduction strategies that can be helpful to supervisors. Cost-reduction strategies that can be helpful to supervisors include the following: Increase output, improve methods, regulate or level the work flow, minimize waste, reduce overhead, analyze all control points, ensure adequate storage space, minimize downtime, and invest in employee training.
8. Identify several areas of concern to supervisors that tend to be especially susceptible to cost overruns. Areas that tend to be especially susceptible to cost overruns are overtime, absenteeism, tardiness, turnover, employee theft, materials handling, job methods, quality maintenance, and inventory control.
9. Discuss the major types of inventories and explain the purposes for carrying inventories. Inventories can generally be classified according to three categories: (1) raw materials, (2) in-process, or (3) finished goods. Inventories provide added flexibility to the production system and allow the organization to purchase, produce, and ship in economic batch sizes; to produce on a smooth, continuous basis even though the demand for the finished product or raw material may fluctuate; and to prevent major problems when forecasts of demand are in error or when there are unforeseen slowdowns or stoppages in supply or production.
10. Explain the just-in-time approach to inventory control. The just-in-time (JIT) approach to inventory schedules materials to arrive and leave as they are needed. JIT can be viewed as an operating philosophy which has as its basic objective the elimination of waste.