Question

OM in the News: Looking Back–and Forward–on Productivity

SEPTEMBER 29, 2014

tags: Frederick Taylor, Productivity, time and motion studies

by Barry Render

Frederick Taylor revolutionized manufacturing at the turn of the 20th century with a simple insight. Most manufacturing work was a sequence of physical motions. You would load coal onto a shovel, carry it to a furnace, throw it into the furnace, walk back to the coal pile and repeat. In a time and motion study, he quantified each step and how long it took. Then he analyzed how to improve the whole process. He noted, for example, that a typical worker could lift 21 pounds for maximum efficiency. Workers varied in size and strength, but on average this weight balanced the number of shovel lifts per minute against the volume per lift. In those early days, workers used the same shovel for all materials, regardless of the density of the stuff being lifted, so less weight was being lifted for the less dense materials. Taylor’s elegant and simple solution — bigger scoops for shovels used to haul the less dense materials — illustrates how careful analysis of a specific work process can increase productivity.

Today, his time and motion studies seem antiquated. Phone calls and memos have replaced shovels and picks for many workers. “Yet despite its association with early factories, a modern version of the spirit of Taylorism is sorely needed,” writes Harvard’s Prof. Sendhil Mullainathan in the New York Times (Sept. 28, 2014). “It’s time to identify and optimize the specific psychologies that constitute the mental alchemy of productivity,” he says.

In one Stanford experiment, some workers were randomly assigned to work at home, others worked in group call centers. The work habits of both groups were carefully monitored electronically, and the workers knew it. Those working at home were 13% more productive than those in call centers. With modern technology, we now have so many ways to quantify, track and motivate productivity, and are just beginning to scratch the surface of doing so.

Discussion questions:

1. Why is productivity such an important issue in OM?

2. Describe how time studies are conducted

3. How would explain the results of the Stanford experiment mentioned in the final paragraph of the article?

Answer 1

Answer 1

Productivity is a critical factor in OM because it indicates the efficiency of production. It also shows how effectively the resources are used. It can be defined as the ratio of production (output) to the raw material required (input). Higher the productivity, higher is the profits and market competitiveness.    

Answer 2

Time studies are conducted by following the steps below:

· Observe the manufacturing process – The processes used in the assembly line are noted and analysed.

· Fixing the start and end point - The start and end point of the entire process is identified. The intermediate steps are individually broken down, with a clear end point for each step.

· Data recording – Record the time taken for each step. A large sample size is preferred for better analysis.

· Data analysis – Calculate the average time taken for each step. Add up all the times to get the total average time for the entire process. Also include the number of breaks and time taken by the workers. The average time taken for the entire process is then presented.

Answer 3

The results of the Stanford experiment highlight the advantages of working remotely. Productivity is increased as workers can put in more hours, commuting time is saved, less number of breaks, flexible working hours, and there is less stress for the workers.