QETA/002 Engineering Organisational Efficiency and Improvement

1. QETA/002 Engineering Organisational Efficiency and Improvement 501/1130/9 Level 3 Diploma in Engineering Technology (QCF)

2. Session Aims: • Understand Production Activities • Understand the Application of Quality Control and Quality Assurance • Understand Organisational Improvement Techniques and Competitiveness • Understand Personnel Rights and Responsibilities within an Organisation

3. 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

4. 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, mass-produced 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.

5. 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?

6. 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.

7. 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 pushsystem 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.

8. 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 costobject (such as a particular project, facility, function or product). Indirect costs may be either fixed or variable. Indirectcosts include administration, personnel and security costs.

9. 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.

10. 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?

11. 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:

12. This is an example of a Gantt Chart showing the various processes over the timespan of the operation.

13. 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)

14. 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

15. 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

16. 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.

17. 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

18. 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.

19. 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.

20. 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.

21. 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.

22. 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.

23. 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.

24. 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. 

25. 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

26. 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

27. 2.3 Understand Organisational Improvement Techniques and Competitiveness You will be able to: • Explain the meaning of the terms lean manufacture, kaizen, just in time and Kanban and their overall advantages • Recognise the importance of improving productivity • Recognise how to manage the production process • Recognise the importance of teamwork and the individuals contribution to effective teamwork

28. 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 value-added processes (Low Quality = High Waste / High Quality = Low Waste and Higher Values) Kaizen - is the philosophy that encompasses continuous improvement ‘can we make it faster with less waste and fewer mistakes and also makes it easier’ 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 of components is regulated through the use of an instruction card sent along the production line.

29. Examples of Terms Meanings (2): Advantages: • Cost savings • Higher productivity • Higher worker participation • More Skilled Workforce, able and willing to switch roles e.g. multi-skilling and flexible workforce • Reduced Space Requirements • Improved Relationships with Supplier • Improved Safety 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

30. 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.

31. 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.

32. 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?

33. 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!

34. 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!

35. 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 (GenchiGenbutsu): • 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.

36. 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.

37. 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

38. 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, well-functioning 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 resource is busy with the last task, creating a queue. Increasing capacity reduces the queue time.

39. The Definition of TEAM? The literal definition of ‘team’ is: “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 self-management, (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.” Read more: http://www.businessdictionary.com/definition/team.html#ixzz3t4ofudv6 What is TEAM? T - together E - everyone A - achieves M - more

40. 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.

41. 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 communicates so well that mutual understanding helps to facilitate progress.

42. 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.

43. 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.

44. 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

45. 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 45

46. 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 46 46

47. 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 47 47 47

48. 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 48 48 48 48

49. 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 49 49 49 49

50. Relevant Organisational Documentation and Employment Legislation (8) Appraisals 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: • a piece of ‘two-way’ rather than ‘one-way’ communication • a process rather than an event • a tool for development as well as for assessing performance. 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. Disciplinary Procedures • Your employer should put their disciplinary procedure in writing, and make it easily available to all staff. • 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: • A letter setting out the issue. • A meeting to discuss the issue. • A disciplinary decision. • A chance to appeal this decision. Your employer’s disciplinary procedures should follow the ACAS code of practice. 50 50 50 50