THE NEED AND DETERMINATION OF TIME DATA FOR OPERATIONS MANAGEMENT IN - - PowerPoint PPT Presentation

THE NEED AND DETERMINATION OF TIME DATA FOR OPERATIONS MANAGEMENT IN THE SERVICES DELIVERY ENVIRONMENT

SAIMAS' 27th Annual Conference “ACHIEVING ORGANISATIONAL AGILITY” 26 OCTOBER 2017 Eddie Morrison, Consultant/Trainer, Process Chain Solutions Kelebogile Madiba, Lecturer, Operations Management, Tshwane University of Technology (TUT)

Content ...

• 1. Introduction
• 2. Operations Management in Government
• 3. MTM Data System for Office Work
• 4. Data creation
• 5. Advantages of the application
• 6. Lessons learned
• 7. Discussion / Questions

Need for time determining in Services Sector

Why necessary?

• Increasing economic importance of tertiary sector

(administration and services) but also rising work costs in these sectors.

• Demands for productivity improvement and changes in the

administration sector will be the same as the production sector had already managed at the beginning of the 90s.

• In administration there is significant potential to improve

efficiency and quality.

• Since the early 1990s, economic growth in South Africa has been driven

like in the rest of the world mainly by the tertiary sector – which includes wholesale and retail trade, tourism, government and communications.

• South Africa is now moving towards becoming a knowledge-based

economy, with a greater focus on technology, e-commerce, financial and other services.

Need for time determining in Services Sector

Need for time determining in Services Sector

• Initial situation: relevance of the service sector in RSA
• Most important economic sector with annual growth of about

4%, 65% of the GDP, 63% of employment, 74% of capital formation

• Main source of economic growth: necessity for the increase

in productivity even in service sector to maintain the competitive situation and also service delivery Primary sector Secondary sector Tertiary sector (Source: DTI, 2010)

9% 26% 65%

Content ...

• 1. Introduction
• 2. Operations Management in Government
• 3. MTM Data System for Office Work
• 4. Data creation
• 5. Advantages of the application
• 6. Lessons learned
• 7. Discussion / Questions

Department of Public Service and Administration (DPSA) was tasked with identifying and researching solutions to bridge the gap between strategy and delivery of services. The non-existence of operations management principles in governmental institutions was identified as the root cause of the service delivery gap.

Operation Management in Government

The purpose of the Operation Management Framework (OMF) is to assist governmental institutions to plan, structure, execute and continuously improve their operations for the effective and efficient delivery of services. In terms of the Public Service Regulations of 2016, the DPSA now requires governmental institutions to establish an OMF consisting of the following: ➢ A service delivery model ➢ Managed and mapped business processes for all services ➢ Standard operating procedures for all services ➢ Service standards for all services ➢ A published service charter

Operation Management in Government

Leading the Public Service to Higher Productivity

Operations Management Value Chain

National Development Plan MTSF and Delivery Agreement Strategic Plan Annual Operations Plan

• Organisational

Functional Assessment

• Productivity

Management

• Service Delivery

Improvement Plan

• Learning & Knowledge

Management

• Business Process

Management

• Standard Operating

Procedures

• Service Standards

and Service Charter

• Organisational

Design

• Forecasting of
• perations
• Planning of
• perations
• Control of operations
• Adjustment of
• perations
• Service Delivery

Model

DETERMINATION OF TIME DATA FOR ADMINISTRATIVE PROCESSES

10

• In the case of business processes the DPSA stipulates

that indicators must be identified for measuring the efficiency and effectiveness of business processes.

• Targets for improvements in this regard must be set, the

indicators must be measured, and plans for improving business processes must be developed and implemented.

Mandate from DPSA

Productivity management in the service sector:

From Manufacturing To indirect areas Production/Operations

• assemble & manufacture
• operations technology
• process technology

➢ Transformation of material to goods Information work/Operations

• information search
• creation of information
• information processing
• providing information

➢ Documents, reports and forms

Productivity management in the service sector: Transfer of industry proven tools and methods

If you can‘t measure it you can‘t manage it.“ (Kaplan & Norton, 1996)

Productivity management in the service sector:

The question is how accurate the standards must be?

• Companies have to think about smart working

methods rather than the trendy (sometimes impractical ways) methods

• Secret of productivity improvement: engineered

standard time and labour performance control system

• IE´s must follow a balance between maintaining a

commitment to the basic traditional tools and rolling with the evolution

• For real productivity improvement it is sometimes

better to return to traditional measurements instead of modern methods like Kaizen or Lean Management

• But there is no right or wrong way to improve the

productivity Source: Industrial Engineer, member forum, Mar 2009; 41, 3; Docstoc

• pg. 24

Productivity management in the service sector:

Work Measurement Tools for Indirect areas

In actual practice, work measurement can be done by various techniques including activities such as:

Work Measurement Tools Time Study Activity sampling Bench- marking Mathe- matical calculations Self logging Estimates Others Predeter- mined Time Systems

Content ...

• 1. Introduction
• 2. Operations Management in Government
• 3. MTM Data System for Office Work
• 4. Data creation
• 5. Advantages of the application
• 6. Lessons learned
• 7. Discussion / Questions

MTM Building Block System for Office Work

Methods Time Measurement

The

Method

Determines the

Time!

MOS is the MTM Building Block Systems for Offices Describe present & future work process based on MTM- Norm performance

MTM Building Block System for Office Work

MOS is a third (3rd) general level MTM system. MOS is complementary to other Management Services/ Industrial Engineering charting and analytical techniques; it does not replace them. MOS should be used after broader techniques have established the general Necessity and Purpose, Place, Sequence, Person and Means of the tasks to be evaluated.

MTM Building Block System for Office Work

MOS Basic Operations

Handle Code TMU Get and Place

• bjects

e.g. turn page, tear off sheet,

• pen or close, get or put away

HA 40 Handle tools get and place e.g. pen, stamp or similar and put away HB 60 Combine/Sort 2 sheets combine, 1 sheet allocate, count per 10 units, sort per sign and sheet HC 85 Mark stamp with ink-pad, underline HD 60 Label apply adhesive label HE 200 Work Tap, fold, punch, cut, connect, take apart HF 100 Open/Close mechanism rocker lever, ring binder, folder/metal fastener HG 190 Insert or Remove / sheet per sheet or set, (also folder without mechanism) HH 75 Insert or Remove / envelope per sheet or set, with open or close without folding up HI 210

MTM Building Block System for Office Work

MOS Basic Operations Screen actions Keyboard press single key SA 10 Mouse position and click SB 20 Select with mouse Basic value

• rientate on screen

SC1 55

• Pos. single-stage

search and find position and click SC2 75

• Pos. multi-stage

search directory SC3 240 Mask select pull-down menu SC4 40 Scroll gradually SC5 170 Edit Format format selected text, several lines SD 380 Use of these table values without thorough training in MOS will lead to erroneous results.

MTM Building Block System for Office Work

Use of these table values without thorough training in MOS will lead to erroneous results.

Mental functions Search for and Find simple Register, text selection known range MA1 70 difficult Specific page, text section unknown range MA2 170 Read sign Word, number per 3 digits character per 3 letters MB1 10 line A4 MB2 70 Check sign Word, number per 3 digits, character per 3 letters MC1 20 line A4 MC2 140 Compare sign Word, number per 3 digits, character per 3 letters MD1 40 line A4 MD2 300 Write - hand symbol Digit, letter, character ME1 25 word Including transfer ME2 150

MTM Building Block System for Office Work

MOS – Standard Operations

Process - Information Code Data field Continuous text page A4 Small 1 - 12 characters 1–2 words Medium 13 - 30 characters 3–5 words Large 31 - 100 characters 6–15 words Quarter Half Total Class A B C D E F Read VA- 20 50 130 630 1 190 2 380 Check VB- 40 100 260 1 260 2 380 4 760 Compare VC- 80 190 530 2 700 5 100 10 200

Use of these table values without thorough training in MOS will lead to erroneous results.

MTM Building Block System for Office Work

Create - Information Write Code Data field Continuous text page A4 Small 1 - 12 characters 1–2 words Medium 13 - 30 characters 3–5 words Large 31 - 100 characters 6–15 words Quarter Half Total Class A B C D E F Keyboard Screen EA- 120 260 680 5 040 9 520 19 040 Hand Basic value EB- 220 220 220 Write EC- 200 480 1 290

Use of these table values without thorough training in MOS will lead to erroneous results.

From Building Block System to Process

APD11 Check-in luggage Description Cod e Freq TMU

• 1. Luggage tag according to target airport

MA 1 1 70

• 2. Get luggage tag

HA 1 40

• 3. Pick up a pen

HB 1 60

• 4. Read flight-no.

MB 1 2 2*10

• 5. Enter flight-no. / luggage (two times)

ME 1 5 * 2 5*2*25

• 6. Mark flight ticket

HE 1 200

• 7. Mark luggage

HE 1 200

MTM specific visualisation considering as example reimbursement of travel expenses

Details ...

Classic process structuring

• Consider a claim
• Allow/Refusal claim

MTM process structuring

• Read a claim
• Retrive employee`s data
• Evaluate claim
• Decide - allowance/refusal
• f claim
• Draft a letter
• Print the letter
• File the claim

Content ...

• 1. Introduction
• 2. Operations Management in Government
• 3. MTM Data System for Office Work
• 4. Data creation
• 5. Advantages of the application
• 6. Lessons learned
• 7. Discussion / Questions

MTM – 6 Steps to Success

1 Process recording

→

ABC Analysis / Interviews 2 AS-IS analysis for staff demand Analysis of deviations

→

MTM Process Designer 3 Analysis of deviations

→

Swim Lane Charts / Process / KPI 4 Optimisation of Organisation and Process

→

CIP / Lean / Workshops 5 Planning analysis for staff demand

→

MTM Process Designer 6 Realisation

→

Coaching / Measuring

How we proceed ... Task structuring

1 Process recording

→

ABC Analysis / Interviews Step no. Activity Comments Step 1 Identify tasks Step 2 Determine task levels Step 3 Determine task type Main tasks, Additional tasks etc. Step 4 ABC classification

• Total workload = All tasks performed x

frequency.

• Sort tasks according to highest workload

to task with the lowest workload.

• Classify tasks based on ABC percentage

How we proceed ... Task structuring

MH = M – Main tasks A – Additional tasks

Process type Definitions Interpretation Example Main Activity MH Task which can be planned and directly serves to complete the job Activity resulting directly in completion of a specific task Typing text on the keyboard Secondary/ Other Activity MN Task which can be planned and only indirectly serves to complete the job Activities used in preparation

• r follow up to indirectly

assist in completing the task Open paper tray, place paper in printer tray, turn on computer, change printer cartridge Additional Activity MZ Task, where the occurrence happens in an unplanned manner and consequently cannot be predicted Dealing with interruptions, voluntary or assigned assistance to colleagues or

• ther people, obtaining

missing information for task, activities not specifically assigned Correcting typing errors, query input information which is not readable, using the dictionary, removing paper jam, creating template

How we proceed ... Task structuring

M/A Task Level 1 Task Level 2 Tasks Reference A M Administration Processing documents Process changes on existing documents per operation A M Administration Processing documents Create documents per operation A M Administration Processing documents Permanent document monitoring per operation C A Administration Organisation Create travel expense report per operation C A Administration Organisation Create request for leave per operation C A Administration Consulting Support the planning of new products per operation A A Administration Consulting Cross-departmental support / input for other departments per operation C A Administration Consulting Customer visits per operation B A General Organisation Participate in meetings total

M – Main tasks A – Additional tasks

How we proceed ... Task structuring

M/A Task Level 1 Task Level 2 Tasks Reference B A General Organisation Participate in meetings total C A General Organisation Material procurement (office supplies / CIP materials) per operation C A General Organisation Implement 5S methodology per operation B A General Organisation Handle e-mails / information total C A General Further education Enhancement of knowledge in

• ne’s own domain

per operation C A General Further education Staff instruction per operation C A General Further education Guide / look after trainees total C A General Further education Participate in training courses per operation

M – Main tasks A – Additional tasks

VILFREDO PARETO (1848-1923)

➢ 20% of population owns 80% of nations wealth ➢ 20% of employees cause 80% of problems ➢ 20% of items accounts for 80% of firms expenditure

The Pareto principle

What is a ABC analysis?

• ABC analysis is an inventory categorisation

method which consists in dividing items into three (3) categories (A, B, C):

– A being the most valuable items, – C being the least valuable ones.

• This method aims to draw managers’ attention
• n the critical few (A-items) not on the trivial

many (C-items).

The ABC analysis in Services Sector

In the services sector the emphasis is on administrative processes and the analyst must do the ABC analysis for the total workload. ABC analysis is a categorisation method which consists in dividing the total workload into three (3) categories (A, B, C): A being the most time consuming tasks, C being the least time consuming ones.

• All the times of tasks that must be performed must multiplied by

its frequencies and sorted them starting from the one with the highest workload down to the lowest.)

• Then we show them a classification based on the ABC

percentage.

The ABC analysis in Services Sector

The ABC approach states that an organisation should rate tasks from A to C, grounding its ratings on the following rules:

• A-tasks are tasks of which the total work load is the

highest; the top 70-80% of the total workload of the

• rganisation typically accounts for only 10-20% of all

tasks.

• B-tasks are the interclass tasks, with a medium work

load; those 15-25% of the total work load typically accounts for 30% of all tasks.

The ABC analysis in Services Sector

The ABC approach states that a company should rate tasks from A to C, basing its ratings on the following rules:

• C-tasks are, on the contrary, tasks with the lowest

work load; the lower 5% of the annual work load typically accounts for 50% of all tasks. This method aims to draw managers’ or analyst’s attention on the critical few (A-tasks) not on the trivial many (C-tasks).

The ABC analysis

Tasks Percen- tage of tasks Percentage time of total workload Class A tasks About 20% About 80% Close day to day control Class B tasks About 30% About 15% Regular review Class C tasks About 50% About 5% Infrequent review

Visualising Current Process with Process Designer.....

Functional areas or

• rganisation units

Simple modelling with any types of shape etc.: 1. Start shape 2. Process step shape 3. Interface shape 4. Decision shape 5. End shape Every process step is backed with a data set. This data set contains:

• Process information (who is doing what, which

methods are being applied?)

• Time data (MTM Office System, Activity

Sampling, qualified estimate)

• Quantity data and frequencies
• Resource data (e.g. capacities, costs)
• …add further data as necessary

Data Calculation with MTM

Modelled work method and basic time (595 TMU = 22 sec.) Task: Signing in

VDU work (extracted from the MTM-Office System data card) Select Single click SB (20 TMU) Orient oneself on the screen SC1 (55 TMU) Search spot and find with click SC2 (75 TMU) Search index SC3 (240 TMU) DP idle time AZ-A (30 TMU)

MTM Analysis File number □ Planning analysis □ Production analysis Sheet

Code:

D Z 3 7 . 5 .

8 Description: Signing in No

Description Code TMU Q x F Total TMU

1

Activate staff portal SC3 240 1 240

2

DP response time AZ-A 30 1 30

3

Enter password EA-A 120 1 120

4

DP response time AZ-B 45 1 45

5

Open program SC2 75 1 75

6

DP response time AZ-B 45 1 45 ∑ 595

Select process building blocks and describe process

Content ...

• 1. Introduction
• 2. Operations Management in Government
• 3. MTM Data System for Office Work
• 4. Data creation
• 5. Advantages of the application
• 6. Lessons learned
• 7. Discussion / Questions

Benifits for the Organisation and Workers ...

Transparency

Transparency is the ONE precondition for the elimination of waste, for benchmarking, for staff qualification and the implementation of standards.

Measurability

How well is my own organisation performing? Are there significant deviations? The measurability of processes bridges the gap between planning and realisation.

Risk avoidance

Detect chances and avoid risks. The MTM Standard Performance inherent to the system prevents overload as well as underload. Erroneous decisions are avoided.

Suitability for simulations

Which effect do changes have on the process or the organisation? Decisions are based on reliable data.

Benifits for the Organisation and Workers ...

• Avoidance of double work
• Minimise of idle time
• Reduction of process times
• Optimisation of personnel placement
• Use of process standards and reference processes
• Increase in value adding
• Review of IT systems
• Identification, reduction and optimisation of interfaces
• Increase in transparency through quantifiability and

reproduction indices

Process improvement

Benifits for the Organisation and Workers ...

• Adjusting the process to the customers benefit.
• Increase the services quality.
• Continuous cost control.
• Introduction of standards.
• Establish reliable processes by involved and motivated staff.
• Implementation of a continuous improvement process.
• Structuring, visualisation and modelling processes.
• Process documentation in line with certification.

Securing and increasing the process quality

Benifits for the Organisation and Workers ...

• Staff placement based on valid data.
• Improve the ability to react to varying workload.
• Identification of stress factors at the workplace.
• Protecting the staff against overload
• Making full use of the identified potential.
• Use flexible reserves.
• Possibility to simulate the staff placement.

Demand-based staff placement

Content ...

• 1. Introduction
• 2. Operations Management in Government
• 3. MTM Data System for Office Work
• 4. Data creation
• 5. Advantages of the application
• 6. Lessons learned
• 7. Discussion / Questions

... with MOS ...

Lessons learnt in applying MOS:

• The visualisation of the process helps to create a common

understanding of the process and process ownership.

• MOS helps to determine the best working method.
• Employee‘s participation during the analysis phase is

necessary for the acceptance of the new process organisation.

• Due to the inseparable linkage of a work content and the

elapsed time in one process building block MOS helps to quantise the work effort

Content ...

• 1. Introduction
• 2. Operations Management in Government
• 3. MTM Data System for Office Work
• 4. Data creation
• 5. Advantages of the application
• 6. Lessons learned
• 7. Discussion / Questions

End ...

Eddie Morrison Process Chain Solutions Cell: 082 880 1916 Email: eddie@processchain.co.za Kelbogile Madiba Tshwane University of Technology Cell: 078 784 1017 Email: MadibaKJ@tut.ac.za