Re: More economically efficient US?

From: rjbjr (rjburnsjr_at_comcast.net)
Date: 12/05/04 

Date: 4 Dec 2004 18:37:59 -0800

frisbieinstein@yahoo.com (Patrick Powers) wrote in message news:<9511688f.0412032358.d94e499@posting.google.com>...
> rjburnsjr@comcast.net (rjbjr) wrote in message news:<98f44843.0412030629.42267be7@posting.google.com>...
>
> >
> > And you can make management decisions in a way that changes the way
> > the workers get "rewarded". You can design into your computer system
> > a decision-making subsystem that makes personnel work-assignment
> > decisions. If done right the system can "decide" in such a way that
> > changes the overtime incentive.
> >
> > But, that's down the road. The first thing you need is a system that
> > collects the data and whose analytical output really reflects what is
> > happening in real time and over time.
>
> OK, assume you have a system that collects all data. How would you
> then reward the workers?

Patrick,
That's a difficult question to answer on a message board. Too many
ways to do it and it depends on what kind of manufacturing system you
are working with.

I'll try to provide some insights, though. First, remember it's not
just a matter of having a system that collects real time data from all
the equipment in the factory. Such systems already exist. The thing
that doesn't currently exist is the appropriate algorithm(s) for
analyzing the data.

Here's a simple example of how you get productivity improvement when
you have the data and the algorithms. In factories I am familiar
with, management attention is prioritized toward the "biggest"
problems. Most existing information systems (manual or automated)
identify a particular "bottleneck" [sic] operation in a production
line. An operator running a non-bottleneck operation is working below
the management radar. As long as the worker keeps enough parts
supplied to the "bottleneck" [sic], the worker can get away with a
lot. Such operators often work only 3-4 hours a day for their 8 hours
of pay. No one notices.

Now, we know queuing phenomena operate in a very strange manner. For
example, you can identify what you think is a "bottleneck" when in
reality, combinations of effects from two or three non-bottleneck
operation can really control the throughput of the line. It may be
that an operator on a non-bottleneck can be critical to meeting
production. (You'll have to accept that if you are not familiar with
asynchronous processes. This is why it's difficult to explain on a
bulletin board).

But, if your computer system is watching and analyzing properly, you
can have it send a message to management as the problem is happening -
in real time. All management has to do is to go to the problem worker
and investigate. Now, the worker is used to being "under the radar".
When you let him know you are aware he is creating a problem, he will
usually straighten right up. Seems too simple? But, it works (from
my own experience of doing exactly that kind of thing).

Another effect of having the right kind of algorithm is on the
management side. Management responds to abnormal events (such as
machine breakdowns) in a number of ways. They use "rules of thumb"
for deciding what to do with labor when a breakdown occurs, for
example. They can move labor or send labor home. Often the decisions
management makes in response to these crisis situations are not
optimal (again, I would need a lot more space and time to explain how
and why this happens). As a matter of fact, it is virtually
impossible for a human to be able to make the most cost effective
decision in a real time environment. Too much data. Too difficult to
manually do the algorithms in a reasonable time.

However, the computer system I am describing is easily able to make
the decisions for management. No matter how many problems are
occurring on the floor, the computer can make as many optimal
decisions as necessary.

There's another way such a system can be useful. I believe the whole
idea of hourly pay came from the manufacturing industry. At one time
virtually everyone was paid by the piece. But, as the processes got
more complex, it became impossible to administer a fair piecework
system. Unions fought for and won the pay-by-the-hour philosophy.

Being aware of the problems associated with paying workers an hourly
wage, factories have tried to go back to the old piecework systems.
I've seen and read about such efforts. Such attempts have been
universally unsuccessful (to my knowledge) when the process gets just
a little complicated.

However, with the type of system I have been discussing, the
complexity of administering a piecework system where each individual
is paid according to his his own productivity (and quality) is
possible.

There are many other incentive systems I can think of that could be
implemented in factories if management has the proper tools. Which is
best, I don't know because they have never been possible to do before.
 Sure wish I could have seen some tried to see which is best.

Hope this helps answer your question a little anyway.

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