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Introduction To Methods Engineering and Operations Analysis

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0% found this document useful (0 votes)
142 views

Introduction To Methods Engineering and Operations Analysis

Uploaded by

Maria Verano
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to Methods

Engineering and Operations


Analysis

1 Evolution and Scope of Methods Engineering


2 How to Apply Methods Engineering
2.1 Systematic Approach in Methods Engineering
2.2 The Techniques of Methods Engineering
2.3 Selecting Among Alternative Improvement Proposals
3 Basic Data Collection and Analysis Techniques
4 Methods Engineering and Automation
4.1 USA Principle
4.2 Ten Strategies for Automation
4.3 Automation Migration Strategy

The techniques discussed in this chapter have the following basic objectives:

• To analyze existing work systems


• To make improvements in existing work systems
• To design new work systems
• To plan the facilities in which the work systems operate

Most of the techniques that we discuss are traditional industrial engineering “tools
of the trade.” Methods engineering is often associated with work measurement. The two
areas are often referred to collectively as “motion and time study.” Many of the motion
and time study techniques can be traced to the origins of industrial engineering, when it was
referred to as the “scientific management movement.” The techniques have been used to
analyze, design, and measure work for many decades.

From Chapter 8 of Work Systems and the Methods, Measurement, and Management of Work, First Edition.
Mikell P. Groover. Copyright © 2007 by Pearson Education, Inc. Published by Pearson Prentice Hall. All
rights reserved.
Introduction to Methods Engineering and Operations Analysis

Methods engineering is a broader term than motion study. The scope of this field
has expanded well beyond its original focus on human body motions to perform phys-
ical labor. We define methods engineering as the analysis and design of work methods
and systems, including the tooling, equipment, technologies, workplace layout, plant lay-
out, and environment used in these methods and systems.1 Other names have some-
times been used to indicate the same basic approaches of methods engineering. These
other names include work study, work simplification, methods study, process re-
engineering, and business process re-engineering.
The traditional objectives in methods engineering, whatever the name for this
improvement activity, are the following:
• To increase productivity and efficiency
• To reduce cycle time
• To reduce product cost
• To reduce labor content
In addition, other objectives are frequently defined for process improvement
efforts. Some of these additional objectives have a more contemporary appeal in today’s
society. They include the following:
• To improve customer satisfaction
• To improve product and/or service quality
• To reduce lead times and improve work flow
• To increase work system flexibility
• To improve worker safety
• To apply more ergonomic work methods
• To enhance the environment (both inside and outside the facility)
A term closely related to methods engineering is operations analysis, defined as
the study of an operation or group of related operations for the purpose of analyzing
their efficiency and effectiveness so that improvements can be developed relative to
specified objectives.2 The specified objectives are basically the same as in methods engi-
neering: to increase productivity, reduce time and cost, and improve safety and quality.
Thus, methods engineering and operations analysis are very similar terms, except that
methods engineering places more emphasis on design. Both terms are widely used in
industrial engineering and this is why both names are included in our chapter title.

1
The definition of methods engineering developed by the Work Measurement and Methods Standards
Subcommittee [ANSI Standard Z94.11-1989] is the following: “That aspect of industrial engineering con-
cerned with the analysis and design of work methods and systems, including the technological selection of
operations or processes, specification of equipment type and location, design of manual and worker-machine
tasks. May include the design of controls to insure proper level of output, inventory, quality, and cost.”
2
The definition of operations analysis developed by the Work Measurement and Methods Standards
Subcommittee [ANSI Standard Z94.11-1989] is the following: “A study of an operation or scenes of opera-
tions involving people, equipment, and processes for the purpose of investigating the effectiveness of specific
operations or groups so that improvements can be developed which will raise productivity, reduce costs,
improve quality, reduce accident hazards, and attain other desired objectives.”
Introduction to Methods Engineering and Operations Analysis

1 EVOLUTION AND SCOPE OF METHODS ENGINEERING


The initial research in the area of methods engineering by Frank Gilbreth in 1885 dealt
with the motions performed by workers in bricklaying. Motion study was truly an appro-
priate term for Gilbreth’s research. The study of manual physical labor in manufactur-
ing and construction was the primary concern of the scientific management movement
in the late nineteenth and early twentieth centuries, and motion study was one of the
two principal techniques used by the practitioners in that movement (the other, of course,
was time study). Today, methods engineering is being applied in many other areas of
work, including indirect labor, logistics, service operations, office work, and plant layout
design. As these other areas have grown in importance in the economies of industrial-
ized nations, methods engineering has been applied to analyze, improve, and design the
work methods.
In terms of the problems that are addressed, methods engineering can be divided
into two areas: (1) methods analysis and (2) methods design. Methods analysis is con-
cerned with the study of an existing method or process, usually by breaking it down into
the work elements or basic operations that comprise it.3 By examining the details of the
elements or operations, a systematic search can be carried out to find ways to improve
the method or process.The systematic search often consists of checklists of questions and
suggestions that offer opportunities for improvement. There are several objectives of
using checklists in methods analysis:
• To eliminate unnecessary and non-value-adding elements or operations from the
larger method or process
• To combine multiple elements or operations by performing them at one location
and/or simultaneously
• To rearrange the elements or operations into a more logical sequence and work flow
• To simplify the remaining elements or operations so they can be accomplished
more quickly and with minimum effort.
In addition to studying an existing method or process, methods analysis can also be used
to analyze a proposed new method for possible improvements. In this regard the two
areas of methods analysis and methods design overlap each other.
Methods design is concerned with either of the following situations: (1) the design
of a new method or process or (2) the redesign of an existing method or process based
on a preceding methods analysis. The design of a new method or process occurs when a
new product or service is introduced and/or a new facility or equipment is installed, and
there is no existing precedent for the operation. In this case, the method or process must
be designed from scratch. This can often be accomplished by referring to best current
practice for similar operations and attempting to improve on the current work design.
In other cases, an original work design must be developed, including the basic operations,

3
The definition of methods analysis developed by the Work Measurement and Methods Standards
Subcommittee [ANSI Standard Z94.11-1989] is the following: “That part of methods engineering normally
involving an examination and analysis of an operation or a work cycle broken down into its constituent parts
for the purpose of improvement, elimination of unnecessary steps, and/or establishing and recording in detail
a proposed method of performance.”
Introduction to Methods Engineering and Operations Analysis

methods, equipment, special tooling, workplace layout, and plant layout. As in other
areas of design, guidelines are available, such as the principles of motion economy and
the plant layout planning approach, and these can be applied in solving the design
problem.
Methods engineering studies have traditionally been the province and responsi-
bility of industrial engineers. Today, methods analysis and design are no longer accom-
plished exclusively by industrial engineers.They are accomplished, with greater or lesser
effectiveness, by a variety of individuals, departments, and teams. The workers them-
selves often participate in the development and improvement of their own work meth-
ods, under the assumption that they know their jobs better than anyone else. Industrial
engineers often participate in these improvement activities, serving an important role
as technical consultant and mentor.

2 HOW TO APPLY METHODS ENGINEERING


In this section we present a systematic approach that can be used to accomplish a meth-
ods engineering study. We then survey the tools and techniques used in such a study.
Finally, we present a procedure for selecting among alternative possible solutions to a
methods engineering problem.

2.1 Systematic Approach in Methods Engineering


An underlying assumption in methods engineering is that a systematic approach is more
likely to yield operational improvements than an undisciplined approach. Our systematic
approach to problem solving in methods engineering has its basis in the scientific method
used in science, research and development, engineering design, and other problem areas.
The systematic approach in methods engineering consists of the steps described below.

Step 1: Define the Problem and Objectives. The problem is the reason for need-
ing a systematic approach to determine its solution. The problem in a methods engi-
neering study may be low productivity, high cost, inefficient methods, or the need for a
new method or a new operation.The objective is the desired improvement or new meth-
ods design that would result from the methods engineering project. Possible objectives
are to increase productivity, reduce labor content and cost, improve safety, or develop
a new method or new operation. These are the typical objectives discussed in our chap-
ter introduction. The problem definition and objectives must be specific to the problem
under investigation, although there may be similarities with other problems.

Step 2: Analyze the Problem. This step consists of data collection and analysis
activities that are most appropriate for the type of problem being studied. The kinds of
activities often used in this step include the following:

• Identify the basic function of the operation.


• Gather background information.
• Observe the existing process or observe similar processes if the problem involves
a new work design.
Introduction to Methods Engineering and Operations Analysis

• Collect data on the existing operation and document the details in a format that
lends itself to examination.
• Conduct experiments on the process.
• Develop a mathematical model of the process or utilize an existing mathematical
model such as those on work systems and how they work.
• Perform a computer simulation of the process.
• Use charting techniques.

A survey of the analysis techniques used in step 2 is provided in Section 2.2.

Step 3: Formulate Alternatives. There are always multiple ways to perform a task
or accomplish a process, some of which are more efficient and effective than others.
Only by enumerating the alternative ways and comparing them can the most efficient
and effective method or process be determined.4 However, the purpose of this step in
the problem-solving approach is not to identify the best alternative but to formulate all
of the alternatives that are feasible.5

Step 4: Evaluate Alternatives and Select the Best. This step consists of a method-
ical assessment of the alternatives and the selection of the best solution among them,
based on the original definition of the problem and objectives. The selection procedure
described in Section 2.3 is useful in this step of the methods engineering approach.

Step 5: Implement the Best Method. Implementation means installing the selected
solution: introducing the changes proposed in the existing method or operation, or insti-
tuting the new method or process. This may involve pilot studies or trials of the new or
revised method preliminary to online implementation and application of the method.
Implementation also includes complete documentation of the new or revised method
and replacement of the previous documentation in the case of a revised method. Unless
the old documentation is replaced, the old method may remain as the official method
until a new methods engineering study is performed sometime in the future (thus rein-
venting the wheel).

Step 6: Audit the Study. It is desirable to perform an audit or follow-up on the


methods engineering project. How successful was the project in terms of the original prob-
lem definition and objectives? What were the implementation issues? What should be
done differently in the next methods engineering study? For an organization committed
to continuous improvement, answers to these kinds of questions help to fine-tune its
problem-solving and decision-making skills.

4
In the scientific method as applied to research, the alternatives are typically the different proposed theories
to explain the observed phenomenon. Ultimately, one theory is selected as the most reasonable in terms of
explaining the phenomenon.
5
Even the infeasible solutions should probably be included in the list. Sometimes the alternatives that initially
seem infeasible turn out to be quite doable after all. What made them seem unacceptable on first considera-
tion were artificial or false constraints that proved not to be constraints upon closer scrutiny.
Introduction to Methods Engineering and Operations Analysis

2.2 The Techniques of Methods Engineering


A variety of techniques are available for operations analysis. The techniques are most
closely associated with the analysis step in methods engineering, although they may also
be applicable in some of the other steps as well. As a starting point, we have the basic
data collection and analysis techniques discussed in Section 3. These are graphical and
statistical methods for gathering, plotting, and displaying data. They include histograms
and x-y plots as well as other charts and diagrams.
Beyond the basic data collection and analysis techniques, which are applicable
in many disciplines other than methods engineering, there are the specialized analysis
techniques more closely associated with operations analysis and industrial engineer-
ing. They are described briefly in the following sections.

Charting and Diagramming Techniques. There are many charting techniques


available for collecting, displaying, and analyzing data on a given work system or oper-
ation sequence of interest. They can be classified into the following categories:

• Network diagrams. These are used for analyzing work flow, assembly line balanc-
ing, and project scheduling. Special algorithms are often available to analyze
these network diagrams.
• Traditional industrial engineering charting techniques. These are used to symbolize
and summarize the details of an existing operation or sequence of operations. The
traditional charting techniques can be used to analyze the activities of one human
worker, groups of workers, worker-machine systems, materials, parts, and products.
• Block diagrams and process maps. These diagrams represent alternative ways of
depicting processes. They are sometimes used in place of the traditional IE chart-
ing techniques.

Motion Study and Work Design. This area of methods engineering is concerned
with the study of the basic motions of a human worker while performing a given task.
The basic motions include reach (using the hand to reach for an object), grasp (grasp-
ing the object), move (moving the object), and release (releasing it). All manual tasks
performed at a single workplace are composed of these basic motions.There are 17 basic
motion elements, most of which involve movements of the arm and hand. By studying
the basic motions in the work method used by a worker, unnecessary motions can be
eliminated, or some of the motion elements can be combined (for example, using both
hands to simultaneously perform motions rather than one arm doing everything), or the
method can be otherwise simplified.
Over many years, the study of basic motions in manual operations has resulted in
the development of certain principles on how to perform work. Commonly called the
principles of motion economy, they provide guidelines for work design in three categories:
(1) use of the human body in developing the standard method, (2) workplace layout,
and (3) design of the tooling and equipment used in the task. Many of the principles are
Introduction to Methods Engineering and Operations Analysis

simple and obvious; for example,“design the work so that both hands are fully utilized.”
Yet simple work design principles such as these are often neglected in many manual
operations performed throughout the world. By having these guidelines available, work
methods can be designed to be safer, faster, more efficient, and less fatiguing.

Facility Layout Planning. A facility (e.g., factory, office building, warehouse, hos-
pital) is a fixed asset of the organization that owns (or rents) it. Facility layout refers
to the size and shape of a facility, the arrangement of the different functions and/or
departments in it, and the way the equipment is positioned. The layout plays a signifi-
cant role in determining the overall efficiency of the operations accomplished in the
facility. Facility layout planning represents an important problem area in industrial
engineering, and we discuss the techniques for solving it within the scope of methods engi-
neering. The problem area includes designing a new facility, installing new equipment,
retiring old equipment, and expanding (or contracting) an existing facility.
Plant layout planning and design are best accomplished using a systematic
approach, similar to the systematic approach in methods engineering. As in other prob-
lem areas in methods engineering, there are tools available to use in a plant layout design
project. The approach is called “systematic layout planning,” developed by Richard
Muther [13].

Work Measurement Techniques. Several of the work measurement techniques


can also be used in methods engineering. We mention two that seem most relevant for
studying and analyzing operations and methods: predetermined motion time systems
and work sampling.
A predetermined motion time system (PMTS) is a database of basic motion ele-
ments and their associated normal time values, and it includes procedures for applying
the database to analyze manual tasks and establish standard times for the tasks.The prin-
cipal application of a PMTS is to determine standard times. However, some systems also
include tools for analyzing methods and motions in the task, which is a methods engi-
neering function.
Work sampling is a statistical technique for determining the proportions of time
spent by workers or machines in various categories of activity. It can be applied to deter-
mine machine utilization, worker utilization, and the average time spent performing var-
ious types of activities.As such it can be a useful tool in methods engineering for identifying
areas that need attention. For example, if a work sampling study finds that workers in a
facility spend large amounts of their time waiting for work, then this is a management
problem that should be addressed.

New Approaches in Methods Engineering. Nearly all of the preceding techniques


have been used for many decades, some even longer.6 More recently, alternative
approaches for improving production and service operations have evolved from these
traditional techniques. These alternative approaches include lean production (based on

6
An example: Frank Gilbreth’s interest in motion study dates from 1885; his book, Motion Study, was pub-
lished in 1911.
Introduction to Methods Engineering and Operations Analysis

the famed Toyota Production System), total quality management, and Six Sigma.
It is the view of this author that most of the tools used in these more recent
approaches are basically adaptations and modifications of good industrial engineering
techniques and principles. Not to demean their importance, they are often used with
good effect to identify and solve problems and to make improvements. And they some-
times successfully serve the function of providing a rallying point for motivating work-
ers who might not be motivated by something called motion and time study. Their
objectives are generally the same as the objectives of methods engineering.

2.3 Selecting Among Alternative Improvement Proposals


Evaluating the alternative improvement proposals and selecting the best among them
(step 4 in the systematic methods engineering approach) can be a difficult process in
methods engineering. As always, it is helpful to use a systematic procedure to decide
which improvement proposal(s) should be selected. The procedure recommended here
is most applicable when the selection is to be made among specific proposals—for exam-
ple, alternative process designs or different equipment proposals from vendors. The
alternatives have been developed to address a specified problem or a need of the cus-
tomer organization. Each proposed solution has its relative strengths and weaknesses,
and the selection procedure must weigh the pros and cons in a fair and logical way. The
procedure is explained as follows.7
Prior to the development of proposals, a list of technical features and functional
specifications for the given application must be prepared by the customer organization.
This is an essential part of the problem definition step (step 1) in the methods engi-
neering approach. The operations analyst(s) or equipment vendors will use this list as
the basis for formulating alternative solutions and proposals (step 3 in the systematic
approach). The same list will be used by the customer organization to evaluate the pro-
posals. The features and specifications should be divided into two categories:
1. Must features. These are the features and specifications that the proposal
must satisfy. If these are not satisfied, then the proposal is not suitable for the
application.
2. Desirable features. These are features and specifications that are not necessarily
required to satisfy the application, but they are desirable.
After all of the proposals have been submitted, the evaluation process begins.The
tabular format shown in Table 1, sometimes referred to as a criteria matrix, is used.
First, the proposals are evaluated against the must features. A candidate proposal must
satisfy all of the must features or it is dropped from further consideration.

7
Although we are presenting this selection procedure as a decision-making tool in methods engineering, its
applications are much broader and more diverse. For example, it can be used for selecting which new car to
buy, deciding which job offer to accept (assuming there is more than one offer), or even choosing a prospec-
tive spouse.
Introduction to Methods Engineering and Operations Analysis

TABLE 1 Evaluation of Alternative Industrial Robots for a Welding Application in Example 1

Industrial Robot Candidates

Model A Model B Model C Model D

Must features:
Continuous path control OK OK OK OK
Six-axis robot arm OK OK Not OK OK
Walkthrough programming OK OK OK OK

Desirable features:
Ease of programming (0–9) 6 4 6
Capability to edit program (0–5) 4 2 5
Multipass features (0–4) 2 2 2
Work volume (0–9) 5 8 6
Repeatability (0–5) 5 2 4
Lowest price (0–5) 4 5 3
Delivery (0–3) 1 1 3
Evaluation of vendor (0–9) 6 5 8
Totals: 33 29 37

Source: [6].

Next, the proposals are compared against each of the desirable features. For each
feature, a rating score is given to each candidate to indicate how well it satisfies that fea-
ture. No doubt there will be differences in the relative importance of the different
features, and this is taken into account by assigning a maximum possible point score to
each desirable feature. For example, if a particular feature is judged to be twice as impor-
tant as another, then the more important feature is assigned a maximum score of, say,
10 points, while the less important feature is given a maximum of 5 points. These maxi-
mum point scores are judgment calls made by the methods engineer or by the collec-
tive wisdom of the project team doing the selection. Scoring each proposal on each
feature is also a judgment call based on the relative merits of each candidate.
Finally, for the proposals that still remain after elimination of those that failed one
or more of the must features, the scores of each proposal are tallied and the proposal
with the highest total score is selected as the winner.
Of course, economics must play a role in the selection process. One might be inclined
to simply choose the low cost bidder. However, that is often a mistake. Cost is rarely the
only factor in implementing a new process, purchasing a piece of equipment, or making
other investment decisions.The cost factor can be included as one of the desirable features
in the list and given an appropriate weighting score to reflect its importance.The following
example illustrates the use of this procedure to select a robot for a welding application.

Example 1 Selecting a Welding Robot8


Four industrial robots were being considered to satisfy an arc-welding application at the company.
They are identified in Table 1 as Models A, B, C, and D. As suggested in the selection

8
This example is based on an industrial case study in which the author participated. The case study was first
reported in [7]. The company remains anonymous.
Introduction to Methods Engineering and Operations Analysis

procedure, the features and specifications are divided into two categories:“must” and “desir-
able.” The must features were considered essential for the application. The desirable fea-
tures were assigned maximum point scores as shown in the table.The entries in the table for
each robot indicate how that candidate was scored in each of the features. Note that one of
the features was price, but it was not considered to be the most important feature.
Conclusion. First, model C was eliminated from consideration because it did not satisfy
one of the “must” features. For the three remaining models, model D was selected because
it had the highest point score among the desirable features. ■

3 BASIC DATA COLLECTION AND ANALYSIS TECHNIQUES


The data collection and analysis techniques discussed in this section are used by scien-
tists, engineers, mathematicians, and statisticians. Most of them are statistical charting
tools used to record and/or exhibit data so that it can be interpreted more readily. The
techniques also have value for analysis. When used to measure and analyze production
and service operations, these statistical tools are often associated with a field known as
statistical process control (SPC).9 Statistical process control and other quality-oriented
programs are discussed in Chapter 21. In these programs, worker teams are organized
to study operational problems.To enable the teams to be more effective, they are trained
in the use of these basic tools. Thus, industrial engineers are not the exclusive users of
these techniques in operations analysis. Instead, IEs must often serve as team leaders,
training instructors, and expert consultants for the worker teams who carry out the studies.

Histograms. A histogram is a statistical graph consisting of bars representing


different values or ranges of values, in which the length of each bar is proportional to
the frequency or relative frequency of the value or range, as shown in Figure 1. Also
known as a bar chart, it is a graphical display of the frequency distribution of the numer-
ical data. What makes the histogram such a useful statistical tool is that it enables the
analyst to quickly visualize the features of a complete set of data.These features include
(1) the shape of the distribution, (2) any central tendency exhibited by the distribution,
(3) approximations of the mean and mode of the distribution, and (4) the amount of
scatter or spread in the data.

Example 2 Frequency Distribution and Histogram


Part dimension data from a manufacturing process are displayed in the frequency distri-
bution of Table 2. The data are the dimensional values of individual parts taken from the
process, while the process is running normally. Plot the data as a histogram and draw
inferences from the graph.

Solution: The frequency distribution in Table 2 is displayed graphically in the histogram of


Figure 1. We can see that the distribution is normal (in all likelihood), and that the mean is

9
Although we are giving due recognition to the field of statistical process control, it should also be noted that
many of these basic tools have been taught for many years in industrial engineering courses and used by prac-
ticing industrial engineers to study problems in methods engineering and operations analysis.
Introduction to Methods Engineering and Operations Analysis

TABLE 2 Frequency Distribution of Part Dimension Data

Range of Dimension Frequency Relative Frequency Cumulative Relative Frequency

1.975 " × # 1.980 1 0.01 0.01


1.980 " × # 1.985 3 0.03 0.04
1.985 " × # 1.990 5 0.05 0.09
1.990 " × # 1.995 13 0.13 0.22
1.995 " × # 2.000 29 0.29 0.51
2.000 " × # 2.005 27 0.27 0.78
2.005 " × # 2.010 15 0.15 0.93
2.010 " × # 2.015 4 0.04 0.97
2.015 " × # 2.020 2 0.02 0.99
2.020 " × # 2.025 1 0.01 1.00

around 2.00. We can approximate the standard deviation to be the range of the values
(2.025–1.975) divided by 6, based on the fact that nearly the entire distribution (99.73%) is
contained within ! 3σ of the mean value. This gives a σ value of around 0.008. ■

Pareto Charts. A Pareto chart is a special form of histogram, illustrated in


Figure 2, in which attribute data are arranged according to some criteria such as cost or
value. When appropriately used, it provides a graphical display of the tendency for a
small proportion of a given population to be more valuable than the much larger major-
ity.This tendency is sometimes referred to as Pareto’s law, which can be succinctly stated:

32

28

24
Frequency

20

16

12

4
2.025

2.020

2.015

2.010

2.005

2.000

1.995

1.990

1.985

1.980

1.975

Dimension

Figure 1 Histogram of the data in Table 2.


Introduction to Methods Engineering and Operations Analysis

50

Relative frequency (%)


40

30

20

10

A B C D E F G H I J P
Product models

Figure 2 Typical (hypothetical) Pareto distribution of a


factory’s production output. Although there are ten
models produced, two of the models account for
80% of the total units. This chart is sometimes
referred to as a P-Q chart, where
P $ products and Q $ quantity of production.

“the vital few and the trivial many.”10 The “law” was identified by Vilfredo Pareto
(1848–1923), an Italian economist and sociologist who studied the distribution of wealth
in Italy and found that most of it was held by a small percentage of the population.
Pareto’s law applies not only to the distribution of wealth, but to many other
distributions as well. The law is often identified as the 80%–20% rule (although exact
percentages may differ from 80 and 20): 80% of the wealth of a nation is in the hands
of 20% of its people; 80% of inventory value is accounted for by 20% of the items in
inventory; 80% of sales revenues are generated by 20% of the customers; and 80%
of a factory’s production output is concentrated in only 20% of its product models
(as in Figure 2). A Pareto chart identifies the proportion of the population that is the
most important, and the focus in any improvement study or project should be on that
proportion.
A Pareto distribution can also be plotted as a cumulative frequency distribution,
as shown in Figure 3 for the same data shown in Figure 2. The Pareto cumulative distri-
bution can be modeled by the following equation:11

(1 + A) x
y= for 0 … y … 1 and 0 … x … 1 (1)
A+x

10
The statement is attributed to J. M Juran [8].
11
Based on Bender, P., “Mathematical Modeling of the 20/80 Rule: Theory and Practice,” Journal of Business
Logistics, Vol. 2, No. 2, 1981, pp 139–157.
Introduction to Methods Engineering and Operations Analysis

100

90

80

Cumulative frequency (%)


70

60

50

40

30

20

10

A B C D E F G H I J
Products

Figure 3 Pareto chart plotted as a cumulative frequency


distribution for the same data shown in Figure 2.

where y $ cumulative fraction of the value variable (e.g., wealth, inventory value, sales
revenue), x $ cumulative fraction of the item variable (e.g., population, inventory items,
customers), and A is a constant that determines the shape of the distribution. Values
of A between zero and infinity provide shapes that possess the Pareto characteristic,
as shown in Figure 4. When A $ 0, the equation reduces to y $ 1 for all x, and when
A $ ∞, the equation becomes y $ x.
To determine the appropriate value of A for a given situation or set of data, equa-
tion (1) can be rearranged to solve for A as a function of x and y, as follows:

x(1 % y)
A$ (2)
y %x
where x and y are the cumulative frequencies of the two variables at a given point in the
distribution. The following example illustrates the approach.

Example 3 Pareto Cumulative Distribution


It is known that 20% of the total inventory items in a company’s warehouse accounts for
80% of the value of the inventory. (a) Determine the parameter A in the Pareto cumula-
tive distribution equation. (b) Given that the relationship is valid for the remaining inven-
tory, how much of the inventory value is accounted for by 50% of the items?

Solution (a) To find A, we use equation (2) given that x $ 0.20 and y $ 0.80 (20% of
the items, 80% of the value).
Introduction to Methods Engineering and Operations Analysis

A$0
1.0

A $ .1
0.8

A $ .4
0.6

0.4 A$&

0.2

0
0 0.2 0.4 0.6 0.8 1.0 x

Figure 4 Shape of plots of equation (1) for several


values of A.

0.20(1 % 0.80)
A$ $ 0.06667
0.80 % 0.20
(b) Now that we know the value of A, the following Pareto cumulative distri-
bution equation can be used:
(1.06667)x
y$
0.06667 ' x
For x $ 0.50, the equation can be used to calculate y:
(1.06667)(0.50)
y$ $ 0.941
0.06667 ' 0.50
We expect that 50% of the items in inventory account for 94.1% of the
value of the inventory. ■

Pie Charts. A pie chart is a circular (pie-shaped) display that is sliced by radii
into segments whose relative areas are proportional to the magnitudes or frequen-
cies of the data categories comprising the total circle. The visual effect is similar to a
Pareto chart, in the sense that the important categories can be immediately recognized
because of their relative sizes. Multiple pie charts can be displayed side by side to
indicate not only the relative category sizes within a circle but also the relative sizes
of the circles. Figure 5 shows two consecutive years of company sales, indicating how
sales increased the second year and how the increase was distributed among types of
customers.
Introduction to Methods Engineering and Operations Analysis

Misc.
Misc. (11%)
(8%) Colleges Colleges (34%)
(38%)
Retail Retail
(17%) (20%)

Canadian
(12%)
International (24%)
Canadian
International (11%)
(25%)

Year 1 Year 2

Figure 5 Pie charts showing two annual sales revenues and the customer distributions
for the two years. Sales in year 2 increased 43% over year 1.

Check Sheets. The check sheet (not to be confused with “check list”) is a data
gathering tool generally used in the preliminary stages of the study of a problem. The
operator running a process (for example, the machine operator) is often given the respon-
sibility for recording the data on the check sheet, and the data are often recorded in the
form of simple check marks.

Example 4 Check Sheet Application


For the dimensional data in the frequency distribution of Table 2, suppose we wanted to see
if there were any differences between the three shifts that are responsible for making the
parts. A check sheet has been designed for this purpose, and data have been collected.
Analyze the data.

Solution: The check sheet is illustrated in Table 3. The data include the shift on which each
dimensional value was produced (shifts are identified simply as 1, 2, and 3). The data in a
check sheet are usually recorded as a function of time periods (days, weeks, months), as in
our table.
It is clear from the data that the third shift is responsible for much of the variability
in the data. Further analysis, shown in Table 4, substantiates this finding. This should lead
to an investigation to determine the causes of the greater variability on the third shift, with
appropriate corrective action to address the problem.
We also note from Table 4 that the average daily production rate for the third shift
is somewhat below the daily rate for the other two shifts.The third shift seems to be a prob-
lem that demands management attention. ■

Check sheets can take many different forms, depending on the problem situation
and the ingenuity of the analyst. The form should be designed to allow some interpre-
tation of results directly from the raw data, although subsequent data analysis may be
necessary to recognize trends, diagnose the problem, or identify areas of further study.

Defect Concentration Diagrams. The defect concentration diagram is a graphical


method that has been found to be useful in analyzing the causes of product or part defects.
It is a drawing of the product (or other item of interest), with all relevant views displayed,
Introduction to Methods Engineering and Operations Analysis

TABLE 3 Check Sheet Using Data from Table 2 Recorded According to Shift on Which Parts Were
Made

Range of Dimension May 5 May 6 May 7 May 8 May 9 Weekly Totals

1.975 " × # 1.980 3 1


1.980 " × # 1.985 2 3 3 3
1.985 " × # 1.990 1 3 3 1 3 5
1.990 " × # 1.995 12 11 2 3 12 12 1 22 13
1.995 " × # 2.000 11 222 3 11 22 3 111 222 3 11 222 3 11 22 3 29
2.000 " × # 2.005 11 22 3 11 22 3 111 22 3 11 222 3 111 22 27
2.005 " × # 2.010 123 123 22 3 1 33 123 15
2.010 " × # 2.015 3 3 3 3 4
2.015 " × # 2.020 3 3 2
2.020 " × # 2.025 3 1
Total parts/day 20 20 21 20 19 100

TABLE 4 Summary of Data from Check Sheet of Table 3 Showing Frequency


of Each Shift in Each Dimension Ranges

Range of Dimension Shift 1 Shift 2 Shift 3 Totals

1.975 " × # 1.980 1 1


1.980 " × # 1.985 1 2 3
1.985 " × # 1.990 2 3 5
1.990 " × # 1.995 6 6 1 13
1.995 " × # 2.000 11 13 5 29
2.000 " × # 2.005 12 11 4 27
2.005 " × # 2.010 4 5 6 15
2.010 " × # 2.015 4 4
2.015 " × # 2.020 2 2
2.020 " × # 2.025 1 1
Weekly total parts/shift 35 36 29 100
Average daily parts/shift 7.0 7.2 5.8

onto which the various types of defects or other problems of interest have been sketched
at the locations where they each occurred. By analyzing the defect types and corre-
sponding locations, it may be possible to identify the underlying causes of the defects.
Montgomery [11] describes a case study involving the final assembly of refrigerators
that were plagued by surface defects. A defect concentration diagram (Figure 6) was uti-
lized to analyze the problem. The defects were clearly shown to be concentrated around
the middle section of the refrigerator. Upon investigation, it was learned that a belt was
wrapped around each unit for material handling purposes. It became evident that the defects
were caused by the belt, and corrective action was taken to improve the handling method.

Scatter Diagrams. In many industrial problems involving manufacturing


operations, it is useful to identify a possible relationship that exists between two process
variables. The scatter diagram is helpful in this regard. A scatter diagram is an x-y plot
of the data taken of the two variables of interest, as illustrated in Figure 7. The data
Introduction to Methods Engineering and Operations Analysis

Front Right Back Left


view side view side

Figure 6 Defect concentration diagram showing four views


of refrigerator with locations of surface defects
indicated in shaded areas.

are plotted as pairs; for each xi value, there is a corresponding yi value. The shape of the
data points considered in aggregate often reveals a pattern or relationship between
the two variables. For example, the scatter diagram in Figure 7 indicates that a negative
correlation exists between cobalt content and wear resistance of a cemented carbide
cutting tool. As cobalt content increases, wear resistance decreases.
One must be circumspect in using scatter diagrams and in extrapolating the trends
that might be indicated by the data. For instance, it might be inferred from our diagram
that a cemented carbide tool with zero cobalt content would possess the highest wear
resistance of all. However, cobalt serves as an essential binder in the pressing and sin-
tering process used to fabricate cemented carbide tools, and a minimum level of cobalt
is necessary to hold the tungsten carbide particles together in the final product. There
are other reasons why caution is recommended in the use of the scatter diagram, since
Wear resistance

3 6 9 12 15
Cobalt content (%)

Figure 7 Scatter diagram showing the


effect of cobalt binder content on
wear resistance of a cemented
carbide cutting tool insert.
Introduction to Methods Engineering and Operations Analysis

only two variables are plotted.There may be other variables in the process whose impor-
tance in determining the output is far greater than the two variables displayed.

Cause and Effect Diagrams. The cause and effect diagram is a graphical-tabular
chart used to list and analyze the potential causes of a given problem. It is not really a
statistical tool, in the sense of the preceding data collection and analysis techniques. As
shown in Figure 8, the diagram consists of a central stem leading to the effect (the prob-
lem), with multiple branches coming off the stem listing the various groups of possible
causes of the problem. Owing to its characteristic appearance, the cause and effect dia-
gram is also known as a fishbone diagram. In application, cause and effect diagrams are
often developed by worker teams who study operational problems. The diagram pro-
vides a graphical means for discussing and analyzing a problem and listing its possible
causes in an organized and understandable way. Members of the team collectively iden-
tify the branches of the diagram (causes of the problem) and then attempt to determine
which causes are most consequential and how to take corrective action against them.
As a starting point in identifying the causes of the problem (the main branches in
the fishbone diagram), six general categories of causes are often used because they are
the factors that affect performance of most production and service processes. Called the
5Ms and 1P [4], they are as follows:
1. Machines. This refers to the equipment and tooling used in the process.
2. Materials. These are the starting materials in the process.

Specification Worker Method

Missed joints
Work unit Conveyor speed
too small Stress of pacing
for manual by conveyor
operation Cleaning procedure
Layout of
circuit Variability of
Tight worker skill Variation among
(design) tolerances workers
Inadequate training
Effect: poor
solder joints

Manual Solder bit Insufficient


process too large solder
inadequate?
Temperature Improper flux
Process of solder bit
capability Solder contamination
Design of solder
iron Lot-to-lot variations
Process Equipment Materials

Figure 8 Cause and effect diagram for a manual soldering operation. The diagram
indicates the effect (the problem is poor solder joints) at the end of the arrow
and the possible causes are listed on the branches leading toward the effect.
Introduction to Methods Engineering and Operations Analysis

3. Methods. This refers to the procedures, sequence of activities, motions, and other
aspects of the method used in the process.
4. Mother Nature. This is a pseudonym for environmental factors such as air tem-
perature and humidity that might affect the process.
5. Measurement. This relates to the validity and accuracy of the data collection
procedures.
6. People. This is the human factor. Does the worker bring the necessary skills to
the process?
During construction of the fishbone diagram, more specific causes and issues are listed
on the smaller branches within each of these six categories as the analysis team pursues
a solution to the problem.

4 METHODS ENGINEERING AND AUTOMATION


The issue of automation arises frequently in methods engineering. The analysis of an
operation may lead to the conclusion that an automated or semiautomated work sys-
tem is preferable to performing a task manually. However, a certain caution and respect
must be observed in applying automation technologies. In this section, we offer three
approaches for dealing with automation projects in methods engineering: (1) the USA
Principle, (2) ten strategies for automation, and (3) an automation migration strategy.

4.1 USA Principle


The USA principle is a commonsense approach to automation projects. Similar proce-
dures have been suggested in the manufacturing and automation trade literature, but
none have a more captivating title than this one. USA stands for three steps in the analy-
sis and design procedure:
1. Understand the existing process.
2. Simplify the process.
3. Automate the process.
Described in [10], the approach is so general that it is applicable to nearly any automa-
tion project. One might argue that the USA principle is basically an abbreviated ver-
sion of the methods engineering approach (Section 2.1).
The purpose of the first step in the USA principle is to understand the current
process in all of its details. What are the inputs? What are the outputs? What exactly
happens to the work unit between input and output? What is the function of the process?
How does it add value to the product? What are the upstream and downstream oper-
ations in the production sequence and can they be combined with the process under
consideration?
Some of the basic charting tools used in methods engineering are useful in this step.
Applying these kinds of tools to the existing process provides a model of the process that
can be analyzed and searched for weaknesses
Introduction to Methods Engineering and Operations Analysis

and opportunities. The number of steps in the process, the number and placement of
inspections, the number of moves and delays experienced by the work unit, and the time
spent in storage can be determined from these charting techniques.
Mathematical models of the process may also be useful to indicate relationships
between input parameters and output variables. What are the important output vari-
ables? How are these output variables affected by inputs to the process, such as raw
material properties, process settings, operating parameters, and environmental condi-
tions? This information may be valuable in identifying what output variables need to be
measured for feedback purposes and in formulating algorithms for automatic process
control.
Once the existing process is understood, then the search begins for ways to sim-
plify the process (step 2). This often involves a checklist of questions about the existing
process. What is the purpose of this operation or this transport? Is that operation nec-
essary? Can this step be eliminated? Is the most appropriate technology being used in
this process? How can this step be simplified? Are there unnecessary steps in the process
that might be eliminated without detracting from the function? These are basic ques-
tions in a methods engineering study.
Some of the ten strategies for automation (Section 4.2) may be used to simplify
the process. Can steps be combined? Can steps be performed simultaneously? Can steps
be integrated into a manually operated production line? Simplifying the process may lead
to the conclusion that automation is not necessary, thus saving the significant invest-
ment cost that would be entailed.
When the process has been reduced to its simplest form, then automation can be
considered (step 3). The possible forms of automation include those listed in the ten
strategies discussed in the following section.An automation migration strategy (Section
4.3) might be implemented for a new product that has yet to prove itself.

4.2 Ten Strategies for Automation


The USA Principle is a good first step in any automation evaluation project. As sug-
gested previously, it may turn out that automation is unnecessary or cannot be cost jus-
tified after the process has been simplified. If automation seems a feasible solution to
improving productivity, quality, or another measure of performance, then the following
ten strategies provide a road map to search for these improvements.13 Although we refer
to them as strategies for automation, some of them are applicable whether the process
is a candidate for automation or just simplification.

1. Specialization of operations. Analogous to the concept of labor specialization for


improving labor productivity, this strategy involves the use of special-purpose
equipment designed to perform one operation with the greatest possible efficiency.
2. Combined operations. Production almost always occurs as a sequence of opera-
tions. Complex parts may require dozens, or even hundreds, of processing steps.

13
These ten strategies were first published in my book Automation, Production Systems, and Computer-Aided
Manufacturing (Prentice Hall, 1980). They seem as relevant and appropriate today as they did in 1980.
Introduction to Methods Engineering and Operations Analysis

The strategy of combined operations involves reducing the number of distinct


workstations through which the work units must be routed. This is accomplished
by performing more than one operation at a given workstation, thereby reducing
the number of separate workstations needed.
3. Simultaneous operations. A logical extension of the combined operations strategy
is to simultaneously perform the operations that are combined at one workstation.
In effect, two or more operations are performed at the same time on the same
work unit, thus reducing total processing time.
4. Integration of operations. This strategy involves linking several workstations
together into a single integrated mechanism using automated work handling devices
to achieve continuous work flow. With an integrated sequence of workstations,
several work units can be processed simultaneously (one at each station), thereby
increasing the overall output of the system.
5. Increased flexibility. This strategy attempts to achieve maximum utilization of
human and equipment resources for low and medium volume situations by using
the same resources for a variety of work units. It involves the use of the flexible
automation concepts that are implemented using computer systems.
6. Improved material handling and storage. The use of automated material handling
and storage systems is a great opportunity to reduce nonproductive time. Typical
benefits include reduced work-in-process and shorter lead times. In information
service operations, the counterpart is a the use of advanced database and data pro-
cessing technologies.
7. On-line inspection. Inspection for quality is traditionally performed after the
process.This means that any poor quality product or service has already been com-
pleted by the time it is inspected. Incorporating inspection into the process per-
mits corrections during the process. This brings the overall quality level closer to
the nominal specifications intended by the designer.
8. Process control and optimization. This includes a wide range of control schemes
intended to operate individual processes and associated equipment more effi-
ciently. By using this strategy, the individual process times can be reduced and
quality improved.
9. Plant operations control. Whereas the previous strategy is concerned with control
of the individual process, this strategy is concerned with control at the plant level.
It attempts to manage and coordinate the aggregate operations in the plant more
efficiently. Its implementation usually involves a high level of computer network-
ing within the facility.
10. Computer integrated manufacturing (CIM). Taking the previous strategy one level
higher, we have the integration of factory operations with engineering design and
the business functions of the firm. CIM involves extensive use of computer appli-
cations, computer databases, and computer networking throughout the enterprise.

The ten strategies constitute a checklist of the possibilities for improving the work
system, through automation or simplification. They should not be considered as mutu-
ally exclusive. For many situations, multiple strategies can be implemented in one
improvement project.
Introduction to Methods Engineering and Operations Analysis

4.3 Automation Migration Strategy


Because of competitive pressures in the marketplace, a company often needs to
introduce a new product in the shortest possible time. The easiest and least expen-
sive way to accomplish this objective is to design a manual production method, using
a sequence of workstations operating independently. The tooling for a manual method
can be fabricated quickly and at low cost. If more than a single set of workstations is
required to make the product in sufficient quantities, as is often the case, then the man-
ual cell is replicated as many times as needed to meet the demand. If the product
turns out to be successful and high demand is anticipated in the future, it makes sense
for the company to automate production. The improvements are often carried out in
phases. Many companies have an automation migration strategy—a formalized
plan for evolving the manufacturing systems used to produce new products as demand
grows. The following phases are included in the typical automation migration
strategy:

Phase 1: Manual production using single station manned cells operating inde-
pendently. This is used for introduction of the new product for reasons mentioned
above: quick and low-cost tooling to get started.
Phase 2: Automated production using single station automated cells operating
independently. As demand for the product grows and it becomes clear that
automation can be justified, the single stations are automated to reduce labor
and increase production rate. Work units are still moved between workstations
manually.
Phase 3: Automated integrated production using a multistation automated
system with serial operations and automated transfer of work units between
stations. When the company is certain that the product will be produced in
mass quantities and for several years, then integration of the single station
automated cells is warranted to further reduce labor and increase produc-
tion rate.

This strategy is illustrated in Figure 9. Details of the automation migration strategy vary
from company to company, depending on the types of products they make and the
processes they perform. But well-managed companies have policies like this one. There
are several advantages to such a strategy:

• It allows introduction of the new product in the shortest possible time, since
production cells based on manual workstations are the easiest to design and
implement.
• It allows automation to be introduced gradually (in planned phases), as demand
for the product grows, engineering changes in the product are made, and time
is allowed to do a thorough design job on the automated manufacturing
system.
• It avoids the commitment to a high level of automation from the start, since there
is always a risk that demand for the product will not justify it.
Introduction to Methods Engineering and Operations Analysis

PHASE 1 Manual workstations Manual handling

Starting Completed
work units work units

Worker
Work-in-process

PHASE 2
Manual handling
Automated workstations

Aut Aut Aut

Automated integrated
production
Connected stations
Automated
Product demand

production

One-station PHASE 3 Automated transfer


cells of work units

Manual
production Aut Aut Aut

One-
station
cells
PHASE 1 PHASE 2 PHASE 3 Time

Figure 9 The three phases of a typical automation migration strategy: (1) manual
production with single independent workstations, (2) automated production
stations with manual handling between stations, and (3) automated integrated
production with automated handling between stations.

REFERENCES
[1] Aft, L. S. Work Measurement and Methods Improvement. New York: Wiley, 2000.
[2] Akiyama, M., and H. Kamata. “Method Engineering and Workplace Design.” Pp.4. 3–4.20
in Maynard’s Industrial Engineering Handbook, 5th ed., edited by K. Zandin. New York:
McGraw-Hill, 2001.
[3] Barnes, R. M. Motion and Time Study: Design and Measurement of Work. 7th ed. New York:
Wiley, 1980.
[4] Eckes, G. Six Sigma for Everyone. Hoboken, NJ: Wiley, 2003.
[5] Geitgey, D. C. “Operation Analysis.” Pp. 3.23–3.40 in Maynard’s Industrial Engineering
Handbook, 4th ed., edited by W. K. Hodson. New York: McGraw-Hill, 1992.
[6] Groover, M., M. Weiss, R. Nagel, and N. Odrey. Industrial Robotics: Technology,
Programming,and Applications. New York: McGraw-Hill, 1986.
Introduction to Methods Engineering and Operations Analysis

[7] Groover, M. P. Automation, Production Systems, and Computer Integrated Manufacturing.


2nd ed. Upper Saddle River, NJ: Prentice Hall, 2001.
[8] Juran, J. M., and F. M. Gryna. Quality Planning and Analysis. 3rd ed. New York: McGraw-
Hill, 1993.
[9] Kadota,T., and S. Sakamoto.“Methods Analysis and Design.” Pp. 1415–45 in Handbook of
Industrial Engineering, 2nd ed., edited by G. Salvendy. New York: Wiley and Institute of
Industrial Engineers, Norcross, GA, 1992.
[10] Kapp, K. M.“The USA Principle.” APICS—The Performance Advantage (June 1997): 62–66.
[11] Montgomery, D. Introduction to Statistical Quality Control. 3rd ed. New York:Wiley, 1996.
[12] Mundel, M. E., and D. L. Danner. Motion and Time Study: Improving Productivity. 7th ed.
Englewood Cliffs, NJ: Prentice Hall, 1994.
[13] Muther, R. Systematic Layout Planning. 2nd ed. Boston, MA: Cahners Books, 1973.
[14] Niebel, B. W., and A. Freivalds. Methods, Standards, and Work Design. 11th ed. New York:
McGraw-Hill, 2003.

REVIEW QUESTIONS
1 What is methods engineering?
2 What are the principal objectives of methods engineering?
3 What is operations analysis?
4 What was the operation studied by Frank Gilbreth in his initial research on motion study?
5 What is methods analysis?
6 What is methods design?
7 What are the six steps of the systematic approach in methods engineering?
8 The procedure offered in the text for selecting among alternatives divides the technical fea-
tures of proposed equipment alternatives into two categories.What are the two categories?
9 What is a histogram?
10 What is a Pareto chart?
11 What is a check sheet?
12 What is a defect concentration diagram?
13 What is a scatter diagram?
14 What is a cause and effect diagram?
15 What does “USA” stand for in the USA principle?
16 What are the three phases in the automation migration strategy?
17 Why would a company want to use manual production methods instead of automated meth-
ods at the beginning of production of a new product?

PROBLEMS
1 A factory has 10 departments, all of which have quality problems leading to delays in ship-
ping products to customers. A breakdown of the number of quality problems for each
department (listed alphabetically) is as follows: (1) assembly, 16; (2) final packaging, 9;
(3) finishing, 37; (4) forging, 73; (5) foundry, 362; (6) machine shop, 294; (7) plastic mold-
ing, 120; (8) receiving inspection, 124; (9) sheet metalworking, 86; and (10) tool-making, 42.
Introduction to Methods Engineering and Operations Analysis

(a) Construct a Pareto chart for this data. (b) Assuming that all quality problems are of equal
value, in which department would you start to take corrective action to reduce the quality
problems? (c) Determine the percentage of total quality problems that are attributable to
the two departments (20% of the departments) with the most quality problems.
2 Using your answer to part (c) of the preceding problem, (a) determine the parameter A
in equation (1) representing the Pareto cumulative distribution. Use 20% of the depart-
ments as the x value in your computations. (b) Construct the idealized Pareto chart based
on your answer to part (a) and discuss the comparison between this idealized chart and
the actual data in the previous problem. Use a spreadsheet program to calculate the data
for part (b).
3 Assume that 75% of the sales in a retail company are accounted for by 25% of the customers.
(a) Determine the parameter A in the Pareto cumulative distribution equation. (b) Given
that the relationship is valid for the remaining sales, how much of the sales value is accounted
for by 50% of the customers?
4 The inventory policy of a retail company is to hold only the highest sales volume items in
its distribution center and to ship the remaining lower sales volume items direct from the
respective manufacturers to its stores.This policy is intended to reduce transportation costs.
Total annual sales of the company are $1 billion. It is known that half of this amount is
accounted for by only 15% of the items. In addition, it is assumed that equation (1) in the
text can be used to model the Pareto cumulative distribution. (a) If the company wants to
stock the top selling 35% of the items in the distribution center, what is the expected value
of these items in terms of annual sales? (b) On the other hand, if the company wants to stock
only those items accounting for the top 75% of annual sales, what proportion of the items
corresponds to this sales volume?
5 The marketing research department for the Stitch Clothing Company has determined that
22% of the items stocked account for 70% of the dollar sales. A typical outlet store carries
1000 items. The items accounting for the top 60% of sales are replenished from the com-
pany’s distribution center. The rest are shipped directly from the supplier (manufacturer)
to the stores. How many items are represented by the top 60%?
6 Consider some process or procedure with which you are familiar that manifests some
chronic problem. Develop a cause and effect diagram that identifies the possible causes of
the problem. This is a project that lends itself to a team activity.

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