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VOLUME 48 : NUMBER 3: $17.50MARCH 2016
How lean Six Sigmaimproves military logistics
The triple aim theory of affordability
Boost manufacturing performanceby at least 20 percent
TPS helps a Georgiahealth system reach No. 1
THE RIGHTMETRICS FOR
ERGONOMICS
Choosi g what to measure
whe a ake all the
differe ce for your e terprise
Industrial EngineerEngineering and management systems at work
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March 21-24, 2016 | Disney's Coronado Springs Resort | Orlando, Fla.
Gather with Leading Minds inErgonomics Attend AEC 2016!Discuss best practices, research and applications with
professionals in the ergonomics, human factors, safety, risk
management and industrial hygiene fields!
Select the most relevant sessions across 12 tracks of posterand oral presentations to customize your learning
experience. Plus, with the opportunity to learn directly
from practitioners in educational sessions and the Ergo
Cup competition, youll gain new insights and ideas for
applications at your job.
Get a Six Sigma Green
Belt at AEC 2016
Spend the mornings earning
your Six Sigma Green Belt
and the afternoons
attending educational
sessions, the Ergo Cupcompetition, the Ergo Quiz
Bowl and enjoying all that
AEC 2016 offers. Add the Six
Sigma Green Belt training to
your registration.
Its not too late. Registration rates increase on March 13.
www.appliedergoconference.org
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4/414 Industrial Engineer | www.iienet.org/IEmagazine
the Front line
12|Mixed generations on the job13|Miss your incandescent lights?13|Falling down at work14|Workplace injuries add up14|Leveraging your enterprise's alumni15|Your perfect future is possible15|Bringing the virtual class to life
16|Queensland offers energy efficiency toolkit16|Robotics for agriculture
the institute
58|New name for an evolving era59|ISEs and Disneyland: A perfect fit60|SHS has new president-elect, board directors60|Journey to the Far East61|In ergonomics, experience counts62|The saving grace of a true network63|UPS likes fruits of its generosity63|Abstract deadline nears
in every issue
6|Editors Desk10|Trending at IIE50|Case Study52|Research56|Tools & Technologies64|Careers
66|Final Five
Features
28 | Measuring what ails your workforceErgonomics programs are effective when you choose
the right metrics
By Jack Kester
33|Winning battles with lean Six SigmaCombining methodology with strategy, operations
and technology improves military logistics capability
By Chris Hook
38 | Affordabilitys triple aimAdvancing your organizations performance involves
targeting value, customer and cost
By Paul Odomirok
44|Increase performance by 20 percentGoal-setting and feedback process works
in manufacturing
By Timothy Stansfield and Josh Manuel
perspectives18 | PerformanceSome unintended messages shouldnt be sent
20 | ManagementGauging your spirit of entrepreneurship
22 | Health SystemsHoshin kanri for a professional society?
24 | InnovationUN sets sights on sustainable industry and energy
26 | Member ForumOut-of-the-box supply chain packaging
Value
customer cost
33
38
60
12
Table of ContentsMarch 2016 | Volume 48 | Number 3 | www.iienet.org/IEmagazine
44
28Cover Story
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5/41March 2016 | Industrial Engineer 5
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6/416 Industrial Engineer | www.iienet.org/IEmagazine
editor
s
desk
To reach me,
email [email protected]
or call (770) 349-1110.
Measuring the realityof ergonomicsErgonomics, like many IE concepts, has become more mainstream in
the past few years. Every media outlet seems to have a story on stand-
ing desks or adjustable workstations. Numerous material handling
products tout their safety as well as efficiency. Some workplaces high-
light their ergonomics programs to lure high-performing employees.
But plenty of room for improvement remains. As youll see on
Pages 13 and 14 in The Front Line, U.S. businesses are losing more
than $1 billion a day from workplace injuries, and fatalities from falls,
slips and trips increased 10 percent from 724 in 2013 to 793 in 2014.
Perhaps, suggests Jack Kester, theyre just not measuring reality the
right way.
It seems simple, right? The enterprise starts an ergonomics pro-
gram and workplace injuries and OSHA recordable incidents decline,
while healthy employees become more productive.
But it doesnt always work that way, Kester writes in The Right
Metrics for Ergonomics, which starts on Page 28. Often, knowledge
of ergonomics brings problems to light. That nagging back or carpal
tunnel syndrome that workers thought they just had to live with?
Well, we can fix that, but uncovering the issue might lead to in-
creases in workers compensation claims. Management might decidethe ergo process is causing more woes than its worth.
While injuries are valid long-term metrics, Kester points out a
number of better short-term metrics that management should use to
keep its nascent ergonomics program on track. In classic industrial
engineering parlance, choosing the right thing to measure when is
the key to figuring out and then fixing what ails your workers.
The March issue of the mag has plenty more ergonomics where
that comes from. The Front Line (Page 12) discusses how the aging
workforce will have ergonomists working on organizational dynam-
ics. Tools & Technologies (Page 56) examines a program that can
help you review and promote healthier lifting techniques. And TheInstitute has a Volunteer Snapshot with Tim McGlothlin, who has
been a driving force behind the Applied Ergonomics Conference.
Visit the conference (www.appliedergoco fere ce.org) for plenty of 3-D
activities in safety, applied research and the world-famous Ergo Cup
competition. Turn the pages to learn about ergonomics in our tradi-
tional, 2-D magazine format.
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7/41March 2016 | Industrial Engineer 7
Plan Your 2016 Training
Process Improvement CoursesSix Sigma Green Belt
March 21-24 | Orlando, FL
April 26-28 | Norcross, GA
July 12-14 | Norcross, GA
Lean Black Belt
April 11-14 (Session 1) | Norcross, GA
May 2-5 (Session 2) | Norcross, GA
Lean Green Belt
April 18-20 | Norcross, GA
Management and Specialty Courses
Introduction to Industrial Engineering
June 6-8 | Norcross, GA
Project Management Fundamentals
June 9-10 | Norcross, GA
Introduction to Engineering Analytics
July 19-20 | Norcross, GA
Financial Management for Engineers
July 27-28 | Norcross, GA
Spend your professional development dollars wisely! Apply new knowledge to your work
immediately with hands-on practice, tools and ongoing support from IIE Training. Expert
instructors will help you understand new concepts and specific applications for your job.
IIE
TRAI
NINGCENTER
LEARN.IMPROVE.PROFIT
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1948
Register at www.IIETrainingCenter.org.
Ergonomics and Healthcare CoursesLean Six Sigma Green Belt for Healthcare
April 18-22 | Birmingham, AL
Principles of Occupational Ergonomics
March 29-31 | Norcross, GA
Lean Black Belt for HealthcareApril 11-14 (Session 1) | Norcross, GA
May 2-5 (Session 2) | Norcross, GA
Lean Green Belt for Healthcare
April 18-20 | Norcross, GA
April 18-22 | Birmingham, AL
Six Sigma Green Belt for Healthcare
April 26-28 | Norcross, GAJuly 12-14 | Norcross, GA
Intro to IE in Healthcare
June 13-14 | Norcross, GA
Healthcare Labor Management
June 15-17 | Norcross, GA
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8/418 Industrial Engineer | www.iienet.org/IEmagazine
(ISSN 1542-894X) is published monthly. Copyright 2016 Institute of Industrial Engineers. Established 1969. Subscriptions for members included in annual dues, not deductible. Single copy $17.50. USA
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PresidentJames E. Moore II, Ph.D.,
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Institute of Industrial Engineers
INSTITUTE OF INDUSTRIAL ENGINEERS
BOARD OF TRUSTEES
Executive EditorMonica Elliott
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can use to enhance their professional capabilities, improve their organizationsperformance and advance the development of their profession.
In furtherance of this mission, we adhere to the following objectives:
To present accurate reporting and analysis of the most prevalent industrial
engineering topics
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BECOME AN IIECORPORATE PARTNER
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Contact Doug Long, Global Director Strategic Alliances,
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methods that can impact an organizations bottom line. Whether you
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money and time, as well as boost employee skills and retention.
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Trending @iieThe results are in from the IIE name change vote, and the membership has decided that the Institute
of Industrial Engineers will become the Institute of Industrial and Systems Engineers. The change will
be official in April, but members of the LinkedIn group are already sharing their thoughts. Facebook
group members weighed in on the most important qualities for industrial engineers to have based on
the December 2015 update of the Occupational Outlook Handbook.
LinkedIn posts
IIE is becoming IISEI think this was [a] very good change, and it ref lects the prog-
ress that has occurred for the profession of industrial engineer-
ing.
Leonidas Guadalupe
Continuous improvement consultant
I recall the extensive discussion on the matter last year. Opin-
ions at the time appeared to be fairly evenly divided. Let us
hope that the implementation date does not yet prove to be
prophetic!
John Wigley
Owner, Nightingale Management Services
This is a positive change and in alignment with the current
trends in our profession.
Arvind Shrikant Tripathi
Director/MBB LSS, Flowserve
I like it. One of the biggest challenges in our field is that no
one seems to know what we do; this is a small semantic change
that helps to narrow that gap.
Brady Beckham
Owner/industrial engineer, REAL Systems
This is a great change in an effort to showcase the evolution
of the profession.
Luis Mercado
Materials program manager, Cree
A much better name for the organization.
Diane Powers
Project engineer, Abbott
Years ago I started off as an industrial engineer and through
many additional classes naturally progressed to being a lead
systems engineer. The organizational and leadership skill sets
with the overall technical management of both makes the
change to IISE logical and beneficial.
Dirk Nelson
Program director, Business Navigators
And the pendulum swings once again! Im old enough to
have seen this go back and forth and back and forth
John Cesarone
Senior lecturer, Illinois Institute of Technology
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11/41March 2016 | Industrial Engineer 11
Facebook posts
I a uary, IIE Membership Admi istrator Elai e Schwartz posted
a tem about the rece tly updated U.S. Departme t of Labor Occu-
pational Outlook Handbook, which cited that the most importa t
qualities of IEs are critical thi ki g, liste i g, math, problem-solvi g,
speaki g a d writi g skills, as well as creativity. What skills wouldyou add to the list?
Stella Marie Sasing-Mahakian:Systems thinker and in-
tegrator
Ernesto Vizcarra: Project management
Rico Andreano Fahreza:Lean thinker
Narayana Rao Kvss: Engineering knowledge is the pri-
mary requirement. Industrial engineers have to keep updat-
ing their engineering knowledge to improve the products
and processes.
Lean thinking is industrial engineering only with new em-
phasis on reduction of inventory.
Pablo Grosskelwing:Detail on voice of client criteria
Correction
In the February cover story Unconstraining a Doctors Of-
fice, the colors in the Figure 1 diagram on Page 30 are in-
correct compared to the text in the article. The colors in the
second and third columns should have been yellow and red,
respectively. The scheduling buffers first day is the red region,
the second day (tomorrow) is the yellow region and the thirdday (day after tomorrow) is the green region.
Wed love to hear from you. Send letters to the editor to Michael Hughes
at [email protected] or be retro and mail them to his attention at
3577 Parkway Lane, Suite 200, Norcross, GA 30092. And join the
discussion on IIEs social media sites by sharing your professional
insights, questions, multimedia, kudos and more. Go to www.iienet.org/
networkingto get into the conversation.
Share and discuss
Help Future IEs Makea Donation to the IIEScholarship FundThe IIE Scholarship Fund recognizes industrial
and systems engineering students academic
excellence and campus leadership. Last year,
IIE awarded more than $50,000 in scholarships.
W ' hW^ D ^
which recognized her work increasing awareness
/ //
abroad work.
W //
like you. Visit www.iienet.org/PlannedGivingto
Why did Paolabecome an industrialengineering major?My favorite part about industrial engineering is
the practicality and versatility of the discipline.
Everything in life is a process and
industrial engineering gives you the
skills and understanding to quantify
and model these processes to improve
them and make them more efficient.
Going to class every day and knowing
youre gaining tangible tools to go out
and make a difference, whether its out in a
manufacturing plant or a hospital floor, makes
learning a much more rewarding experience.
http://www.iienet.org/networkinghttp://www.iienet.org/networkinghttp://www.iienet.org/PlannedGivingmailto:[email protected]://www.iienet.oreg/plannedgiving -
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12/4112 Industrial Engineer | www.iienet.org/IEmagazine
As the U.S. workforce ages, teamwork
and organizational dynamics are going
to be just as important as ergonomically
accommodating physical needs.
Already, one in five American work-
ers is older than 65, according to the
National Institute for Occupational
Safety and Health. The same thing is
happening in other Western countries
like Germany, where 35 percent of its
production employees will be in the 55-
to-65 age bracket by 2021, according to
Assemblymagazine.
Diana Schwerha, an associate profes-
sor of industrial and systems engineer-
ing at Ohio University, said ergonomists
have been looking at how different age
cohorts blend in the workforce becauseeach generation brings different values
to the office.
These days, younger people could
be working with, and even managing,
someone who could be their parent.
And many people retire and take up sec-
ond careers in other sectors, so theyre
on the same learning curve as their
younger colleagues.
So that could cause some team dy-
namics between individuals who thinkI dont turn anything in until Ive
proofread it three times versus the I just
want to get kind of a skeleton paper out
there and someone else will check it or
clean it up.
But lean tools can bring age-diverse
teams together, creating more cohesive-
ness. One of Schwerhas students, Kierra
Westmoreland, used her masters de-
gree thesis to examine how lean train-
ing games affected different age cohorts.
Younger people perceived that
they did better on lean games that
were considered routine, ones
that didnt require creativity or
extensive past knowledge.
Older people perceived that
they did better on complex ac-
tivities that required creativity or
previous knowledge.
Lean projects are, by default,
team projects. Some exer-
cises will be more intuitive for
younger people, others more
intuit ive for older people. West-
morelands research was a proof
of concept asking if lean tools
help teamwork in age-diverse
groups. The answer was yes allage cohorts benefited from lean
training games that promoted
discussion and communication so that
the employees could align their goals
and methods to achieve them.
Corporate ergonomists also can de-
velop age awareness training programs.
BMW did one that led AARP Interna-
tional to name the German carmaker
one of the best employers of people older
than 50. Such programs make the work-force aware of normal aging changes and
how to improve the environment.
Ergonomists also can get people of
different age groups together to think
through a project and the alternatives.
I dont have to necessarily scream,
Hey, this is a better design for an older
person, Schwerha said. Its just like,
Hey, heres my user group, and these are
our abilities, and lets make sure we con-
sider all of them.
When it comes to the purely physical
aspects of aging, ergonomists are well-
equipped.
But some research has shown that
leaning out processes and creating too
much repetition could make the ergo-
nomics worse for that older person.
That, in Schwerhas opinion, is not
what lean should be. But ergonomistscan look at strength requirements, fa-
tigue issues and auditory and visual de-
mands because those things change with
age.
In addition, the issue of the sedentary
workplace is everywhere with sit-
stand workstations a hot topic for several
years. But Schwerha cautioned that older
workers tend to lose lower extremity
strength first, resulting in hip, knee or
back pain.
News from the fieldThe front line
Mixed generations on the jobAging workforce means ergonomists now must tackle organizational dynamics
Diana Schwerha of Ohio University said it will
be interesting to see how cohorts of different
ages work together as the workforce gets older.
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13/41March 2016 | Industrial Engineer 13
MIT researchers might have an answer to those forlorn home-
owners who miss the instant, bright warm glow of incandes-
cent light bulbs.
Surrounding the filament with a special crystal structure in
the glass bounces back the energy lost in heat. The energy that
normally escapes returns to the filament where it creates new
light, The Telegraph of London reported.
Traditional light bulbs are about 5 five percent efficient,
with LED and florescent bulbs coming in at 14 percent ef-
ficiency. But the new bulb, which is at the proof of concept
stage, could achieve efficiency levels of 40 percent.
The colors displayed are more natural than modern energy-
efficient bulbs, which at their best have a color rendering in-
dex rating of 80. In addition, some researchers have warned
that their blue light affects melatonin levels, preventing people
from sleeping at night. Traditional incandescent bulbs rate 100
because they match the hue of objects seen in natural daylight,
the newspaper reported.
That is precisely the reason why incandescent lights re-
mained dominant for so long: their warm light has remained
preferable to drab fluorescent lighting for decades, said prin-
cipal research scientist Ivan Celanovic.
Miss your incandescent lights?Surrounding filament increases venerable bulbs efficiency to 40 percent
And standing all day isnt always
good for that, she said. We used to
think the opposite, like the pharmacist
who stood all day, he or she was the one
whod tend to get back and knee and hip
pain. Now its sort of like, Oh, people
are sitting too much, so get them up
and get them standing. But if an older
person already has hip and knee pain, I
dont think I want them standing al l day
because that may exacerbate things.
Research always is changing and
advancing, and Schwerha said that dif-
ferent solutions could work for differ-
ent age cohorts, with some benefiting
younger people on the job and others
more appropriate for older employees.
Theres always going to be research
on whats the worst: repetition, force,
posture and the interaction between the
three, Schwerha said.
I think ergonomists are always going
to be working on trying to drill down
in those areas to understand whats the
best combination or worst combination.
But I think ergonomists are pretty good
at looking at their user groups by now.
In a technique they call recycling light, MIT researchers
have created an incandescent light bulb that could be 40
percent efficient, compared to the 14 percent found in mostenergy-efficient bulbs.
Falling down at workFalls are among the most common causes of serious work-related
injuries and deaths. OSHA recently announced the preliminary
top 10 most frequently cited workplace safety violations for
fiscal year 2015 and fall protection ranks as its top violation with
6,721citations for the year. According to the Bureau of LaborStatistics, fatalities from falls, slips and tr ips increased 10 percent
to 793 in 2014 from 724 in 2013. Transportation and material
moving occupations accounted for the largest share (28 percent)
of fatal occupational injuries of any occupation group.
Prime Number
PhotocourtesyMIT
-
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14/4114 Industrial Engineer | www.iienet.org/IEmagazine
the
frontline
the
front
line
Workplace injuries add upLiberty Mutual index says U.S. business loses nearly $62 billion
U.S. businesses spend more than a billion dollars a week on disabling workplace injuries, according to the 2016 Liberty Mutual
Workplace Safety Index. The index annually ranks the top 10 causes of serious, nonfatal workplace injuries and their direct
costs.
Reprinted with permission of Liberty Mutual Research Institute for Safety, 2016
When employees quit jobs, the knee-jerk reaction may be to blame a
bad boss. But a University of Illinois business professor shows that work-
ers also leave good bosses, and companies can use that to their strategic
advantage.
Ravi S. Gajendran found that an organizations alumni, provided
they leave on good terms, can be a source of future business or infor-
mation. Boundaryless LMX: Examining LMXs Impact on External
Career Outcomes and Alumni Goodwill, which will appear in Perso elPsychology, found that good bosses invest in their workers, which means
the employees are more attractive in the workplace.
So while employees leave good bosses and bad bosses, employers
shouldnt be bitter. Instead, Gajendran said, they should pay more atten-
tion to the off-boarding process, just like they do to the on-boarding
process. Some companies are even creating social networks and events
for ex-employees to keep in touch.
The papers findings are apt in industries with high-velocity and tight
labor markets.
Our paper shows that even employees who are leaving can be valu-
able somewhere down the line, Gajendran said.
Leveraging your enterprise's alumniGood boss? Bad boss? Study says workers leave both
Ravi S. Gajendran said companies can leverage
former employees for future business or information
provided the workers leave on good terms.
Photo
courtesyUniversityofIllinoisCollegeofBusiness
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15/41March 2016 | Industrial Engineer 15
What would happen if an accomplished industrial engineer
and corporate executive applied hoshin kanri to the self-help
book sector?
Well, you wind up with Perfectly Possibleby Rona Howen-
stine. Howenstine uses IE tools to drill down to the key ele-
ments to consider at every stage of your life from insecure
high school student to questioning executive. Ever the IE,
Rowenstine ends each of her 11 chapters with two lists: key
takeaways and insight questions.
Howenstine admittedly is a self-help book junkie.
Throughout her life, such books have led her to scholarships
and jobs, while giving her ways to deal with perfectionism,
get organized, build relationships, handle motherhood, make
it through divorce and write a successful Ph.D. dissertation in
industrial engineering for the University of Pittsburgh.
The longtime IIE members goal with Perfectly Possibleis
to provide people with the same kind of art of the possible
thinking that she received many times in her life like when
she made the difficult deci-
sion to leave a 17-year career
at Rolls-Royce, where she
became global head of im-
provement for defense.
The move worked out
Howenstine now is vice
president operational excel-
lence and claims for OneAm-
erica Financial Partners Inc.
So sometimes, Chapter 10,
Realizing When Change
Is in Order, will be applicable. Whereas millennials start-
ing their careers will find good advice in the fourth chapter,
Proving Your Worth.
Perfectly Possible: Defi i g Your Path to Success whe he
Odds Are Not i our Favoris available from Tate Publishing
($13.99).
Your perfect future is possibleHowenstine applies IE techniques to the self-help genre
BookoftheMonth
As higher education increases onlinecourse options, one fundamental prob-
lem remains: the lack of real-time, im-
mersive interactions during classroom
instruction. A team led by Penn States
Conrad Tucker aims to change that by
combining three-dimensional scan-
ning of an engineering classroom with
an Oculus Rift device fitted with Leap
Motion technology.
Students will be able to use their
hands to rotate, explore and dissect avirtual model the same way a traditional
student would explore a physical object
or prototype with his or her hands, said
Tucker, an assistant professor of engi-
neering design and industrial engineer-
ing.
The 3-D mesh of the room will let
students learning from a distance ex-
perience the furniture, computers,
whiteboards and anything else in the
classroom. For intangible classroom in-
teractions, which involve communicat-
ing concepts and ideas, students will use
the virtual reality environment to cre-
ate and augment how those concepts are
communicated, Tucker said.
Researchers plan to compare the ef-
fectiveness of each setting by testing
students who were present in engineer-
ing design, industrial engineering and
architectural engineering courses with
students who learned the concepts from
a distance.
Bringing the virtual class to lifePenn State to examine effectiveness for distance learning in engineering courses
Conrad Tucker grabs a virtual building block that exhibits similar physical real-world
properties such as gravity, color, rigidity, etc.
-
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16/4116 Industrial Engineer | www.iienet.org/IEmagazine
2015 Scott Adams. Used by permission of UNIVERSAL UCLICK. All rights reserved.Dilbert
the
frontline
the
front
line
Queensland University of Technology has launched a free and course-
ready virtual classroom designed for engineering lecturers and their stu-
dents.The cloud-based Energy Efficiency Education Resources for Engi-
neering was developed by a national team led by Queenslands Cheryl
Desha, with involvement from the schools science and engineering
faculty and educators from the University of Adelaide, University of
Wollongong, Victoria University and the Royal Melbourne Institute of
Technology, according to the Australian news site Engineers Australia.
The available tools equip engineering students with ways to conduct
energy efficiency assessments and improve energy performance across
major sectors of the Australian economy.
The package, available at bit.ly/1Sge4Cq, includes 10 videos, lecture
and tutorial notes, two deep-dive case studies and a virtual experience
3-D model through a commercial building.
The resources can be spliced into existing lecture material, while the virtual reality components let students navigate
worksites and conduct energy efficiency assessments from their home, office or classroom.
Queensland offers energy efficiency toolkitFree, online package has engineering lecturers, students in mind
SITETOSEE
Robotics for agriculture Driverless tractors are in the early stages of commercialization, and up to this point have
been in the prototype stage. With that said, we expect that the next few years will be a time
of significant growth for this category, with approximately 500 unit shipments in 2016
marking the beginning of true commercialization about 1,600 units in 2017, and more
than 4,100 in 2018.
Clint Wheelock, Tractica managing director, quoted Jan. 21 on the EnterpriseTech website about a
report on how robotics is leading to driverless tractors, drone crop dusters and automated milking
Quote, unquote
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17/41March 2016 | Industrial Engineer 17
Inspiring Ideas, Connections
and Professional DevelopmentALL AT THE IIE ANNUAL CONFERENCE & EXPO 2016
Get excited for the largest industrial and systems engineering event of
the year. Workshops, case studies, thought leadership, research and
connections are all reasons to attend.
KEYNOTE SPEAKERS
Register now. Early-bird savings end April 8.www.iienet.org/Annual
Brian Betts
Vice President of Operations Planning and Insights
Walt Disney Parks & Resorts
Phil Kaminsky
Professor and Chair of Industrial Engineering andOperations Research
University of California, Berkeley
Jack B. ReVelle
Consulting Statistician
ReVelle Solutions LLC
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Some unintended messages shouldnt be sentBy Kevin McManus
performance
Three of my favorite people recently
received the same less than desirable
holiday gift from their employers
unexpected early retirement. In all three
cases, the changes were made in the
spirit of cost savings and improved future
performance for their organizations. But
all three cases sent unintended messages
across the workplace, as dedicated peo-
ple were told that their services were no
longer needed.
Admittedly, Im biased. But I also
know how much effort these people
gave to their companies over time. I
get the need to make such decisions
for the good of the business, but I
also have been around the businessblock enough to recognize the po-
tential flaws in the decision-making
processes used to decide who has to
retire.
My brother was the first victim. For
the past six years, he and his family have
been serving on a mission in Indonesia.
Yes, it is true missionary teams can
get downsized. Even though the en-
tire family had made personal sacrifices
to support the organizational mission,the choice was made to let a significant
percentage of that missionary team go.
What type of message does that send to
others who knew my brother and the
quality of his work?
On the same day my brother was
asked to leave, my life partner was given
similar notification. She had been with
her company for 36 years, and like my
brother she easily had given well more
than an average days work to her com-
pany on a daily basis. Like my brother,
her contributions went well beyond time
served significant emotional and qual-
ity of life sacrifices had been made. She
was respected by myriad suppliers and
teams she had helped over the years, just
as my brothers congregation respected
him. What unintended messages were
sent internally and externally to stake-
holders by forcing these people out?
One of my closest business friends was
victim No. 3. He gave so much to his
company in terms of travel time away
from home and invested emotion that
his relationships away from work were
compromised to some degree. His com-
mitment, like the other two folks in this
story, went well beyond a 40-hour-a-
week focus. Operations teams across his
company appreciated his service as well.Like many management decisions, the
alternatives were evaluated using incom-
plete data sets. Wage and overhead costs
may be obvious, but where do the daily,
positive cultural impacts from these peo-
ple show up in financial reports? Where
does loss of morale and focus for those
left behind show up in the product or
service costing models? What is the true
cost of these unintended messages?
If process excellence and sustainabil-
ity are organizational goals, how do you
ensure your costing models accurately
gauge the true pros and cons of a given
management choice? Where quanti-
tative data cannot be had, how do we
design our decision-making models to
consider the soft costs of what appears
to be a sound management choice from a
budgetary perspective? When the mar-
ket creates the need for headcount re-
duction, how do we decide who stays
and who goes?
I am confident that each will emerge
from this shift unscathed. In fact,
I think all three will be better off
personally and will have the chance
to help even more people in highimpact ways. Their organizations
will regret each choice to some de-
gree.
Sadly, the greatest need for regret
will go unrecognized the impact on
morale and performance that is felt from
letting high performers go while possi-
bly allowing underperformers to remain
in their jobs. Choices such as these are
necessary at times, but the processes that
are used to make them all too often needredesign. Could the cost-cutting choices
you make as a leader send unintended
messages?Y
Kevi cMa us is a per forma ce improve-
me t coach based i ai ier, Orego , a d
a 33-year member of IIE. He has writte
workbooks about perso al a d team effective-
ess. McMa us is a lum i exami er for the
Malcolm Baldrige Natio al Quality Award.
Reach him at kevi @greatsystems.com.
The alternatives were
evaluated using incomplete
data sets.
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management
Gauging your spirit of entrepreneurshipBy Paul Engle
We recently hosted a panel of entre-
preneurs to discuss the hurdles they
faced starting their businesses. All had
achieved some success in their ventures
but were working hard to achieve stable
profitability.
Each launched their enterprises when
their highly paid jobs disappeared, sev-
eral during the financial crisis of 2008.
Rather than attempt to land a similar
job, they took the plunge and launched
new ventures. Interestingly, only one
started out alone. The others
quickly found partners.
All cited raising capital as the sin-
gle most difficult hurdle. Our pan-
elists were highly educated gradu-ates of prestigious universities with
impressive business experience, yet
they were forced to obtain seed capital
from friends, family, angel investors and
even U.S. government-insured small
business loans.
These executives emphasized that
the management teams experience and
skills were the most important selling
feature when raising money. All crafted
impressive business plans with well-doc-umented strategies, yet investors wrote
checks based on the people who actually
would implement the plan. When asked
how they would change their approach,
most agreed they would spend less time
crafting plans and more time promoting
their team.
Interestingly, despite plenty of busi-
ness experience, none had run an en-
terprise in their new industry. Investors
didnt seem to require that.
Two entrepreneurs started small,
fine-tuning their products, services and
business processes until they achieved
success at a single location. Once the
concept proved financially viable, the
enterprises rolled out cookie-cutter cop-
ies in new geographies.
Risk was effectively managed because
they made their mistakes early at a single
location, where course corrections were
easy.
All expressed frustration at the slow
pace required to expand. Leasing store-
fronts took up to 12 months and re-
quired multiple visits. Each new loca-
tion required significant resources and
distracted the entrepreneurs from run-
ning the core business. Most were forced
to add administrative staff earlier than
planned in order to grow.
Government offered help but cre-ated hurdles. With an SBA loan for seed
money, regulatory concerns quickly ap-
peared during every phase of the proj-
ect. Attorneys were required early and
often to keep things moving.
All of the entrepreneurs emphasized
the level of commitment required from
themselves, their partners and staffs.
Most worked seven days per week for
months, and all served multiple roles.
Finally, all expressed satisfaction from
their resulting enterprises, and they
would do it all over again.
One common thread was the pan-
elists desire to give back to the com-
munity. All provided a portion of their
services free to the neediest members of
the community, and one business leader
set up a nonprofit foundation to men-
tor lower income students and channel
them to higher education. These leaders
recognized early that they needed to add
value to all elements of the community
rather than focus on a particular
segment.
Is entrepreneurship right for
you?
Most businesses fail within twoyears for a variety of reasons, the
most common being a shortage of
capital and managements poor estimate
of the time and resources required to be
successful. Many enterprises start small,
adjust their business approach until suc-
cess is achieved and then grow.
Most of these entrepreneurs started
when they were young, with lots of en-
ergy and few responsibilities. Their mo-
tivation included a desire to escape largecorporations and gain upward mobility.
All appeared to view their decision as
the right one. Y
Paul E gle is a ma ageme t co sulta t
with a BA i a ce. He has more
tha 0 years of experie ce i a ageme t,
operatio s, product developme t, sales a d
marketi g, strategic pl i g d busi ess
process improveme t. You may co tact him at
paulfe [email protected].
All expressed frustration at the
slow pace required to expand.
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21/41March 2016 | Industrial Engineer 21
Train all your staff at once with exercises tailored to your organization. IIEs expert instructors travel to
your location and provide hands-on training that advances your business goals.
All of the courses in the IIE Training Center, including the online on-demand classes, are available for
corporate training:
Increase Productivity with
IIEs Corporate Training
Explore available courses at www.iietrainingcenter.org .When youre ready to schedule your training,
contact Larry Aft, P.E., at [email protected].
Lean and Six Sigma
Engineering Management
Industrial Engineering Skills
Healthcare Management Engineering
Supply Chain Management
Quality Systems
Applied Ergonomics
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healthsystems
Hoshin kanri for a professional society?By Amanda Mewborn
Like any worthwhile enterprise, IIEs
Society for Health Systems (SHS) regu-
larly updates its vision, mission and stra-
tegic plan. The last revision took place in
2012, so this year the SHS board arrived
at Februarys Healthcare Systems Process
Improvement Conference a day early to
revisit the plan and align it with market
needs.
A lot of advance planning ensures
that we spend our limited time together
wisely, and my successor as SHS presi-
dent, Joyce Siegele, started preparations
in September. One technique, hoshin
kanri, comes straight from the lean tool-
box. This strategy and policy de-
ployment tool aligns a companysmission, strategies, objectives, goals
and action items. The technique
cascades the mission and strategy
by converting it into specific objec-
tives, goals and tactics.
Typically, senior management sets the
mission and strategy, which are convert-
ed into objectives and goals for middle
management. Finally, the objectives and
goals are converted to specific action
items for the front-line staff. I decided totry out this effective business tool with
SHS.
Since SHS didnt use the hoshin kanri
framework at the 2012 retreat, it was a
little difficult to retrofit SHSs mission,
strategies, objectives, goals and tactics.
Nevertheless, the hoshin kanri exercise
helped me identify opportunities for the
board.
For the hoshin kanri framework, I
broke the mission into three statements.
Then, for the strategies, I listed what
SHS previously called objectives: Grow
engaged members; ensure visibility and
recognition of the profession and the
society beyond SHS; align and collabo-
rate with IIE strategy; build leadership;
and host the annual Healthcare Systems
Process Improvement Conference, spon-
sored by SHS.
Next, objectives, which SHS previ-
ously called operational definitions, were
outlined: Manage and build membership
and member benefits; make SHS the rec-
ognized point of contact for IE/systems
engineering in healthcare by organiza-
tions that drive healthcare policy; have
SHS recognized as the expert resource
in key areas of performance improve-
ment; present shared (SHS and IIE) we-
binars and seminars; provide leadership
opportunities for participation in SHScommittees and board positions; provide
leadership opportunities for participation
in formal and informal leadership roles
in the healthcare industry; and through
a successful conference grow engaged
members, build leadership and ensure
visibility and recognition of the society.
The next cascade is for goals. I realized
that the goals we had established were
not SMART, which stands for specific,
measurable, achievable, realistic and
time-bound. We had developed goals by
committee and tied them to the mission,
strategies and objectives.
For example, one of the goals for the
Academic and Student Committee was
to present at IIE's student chapter and re-
gional conferences, and the Content and
Connections Committee aimed to de-
velop a marketing and social media plan
for SHS, including a monthly newslet-
ter. The Conference Committee was to
keep conference attendance at more than
300 people. The Education Committee
was to provide at least nine webinars, six
for members and three to promote the
conference. The Membership Rec-
ognition Committee was to updateand document the diplomate pro-
cess. And the Young/Early Career
Professionals Committee was to
build the basic infrastructure need-
ed to support the societys Young
Professionals group.
The final phase of hoshin kanri would
be to convert these goals into specific
team actions. This work was done by the
committee members SHS equivalent
of front-line staff. Translating SHS vi-sion, mission, objectives and goals into
the hoshin kanri framework was useful,
informative and really helped prepare the
board for its face-to-face strategic plan-
ning session. Y
Ama da Mewbor s a dustrial e gi eer,
registere urse a d lea lack belt who works
as executive director for project ma ageme t at
Piedmo t Healthcare. She ca e reached at
ama da.mewbor @piedmo .org.
Hoshin kanri helped me identify
opportunities for the board.
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23/41March 2016 | Industrial Engineer 23
HEALTHCARE LABORMANAGEMENTNEW!
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innovation
UN sets sights on sustainable industry and energyBy Nabil Nasr
On Sept. 25, 2015, the United Nations
launched the 2030 Agenda for Sustain-
able Development, a global program
for advancing fundamental change.
By 2030, the agenda wants to achieve
17 sustainable development goals, end
poverty and inequality worldwide and
safeguard Earth for the future.
The 17 goals are broken down into
169 specific sub-goals to be achieved
by coordinated government, private
and individual initiatives. Three
of the Global Goals would be of
particular interest to I dustrial E -
g eer readers: Industry, innovation
and infrastructure; affordable and
clean energy; and responsible con-sumption and production. I will
focus on the first two.
Industry is an indispensable driver of
the kind of economic and social prog-
ress envisioned by the Global Goals
program, which states that manufac-
turing accounts for around 470 million
jobs worldwide in 2009, about 16 per-
cent of the worlds 2.9 billion member
workforce.
Industrializations job multiplicationeffect has a positive impact, as every
manufacturing job creates 2.2 jobs in
other sectors. Accordingly, several of
the industry, innovation and infrastruc-
ture targets encourage environmentally
responsible and sustainable industrial
expansion:
Promote inclusive and sustainable
industrialization and raise industrys
share of employment and gross do-
mestic product, doubling its share in
least developed countries.
Increase the access of small-scale in-
dustrial and other enterprises, par-
ticularly in developing countries, to
financial services, including afford-
able credit, and integrate them into
value chains and markets.
Upgrade infrastructure and retrofit
industries to make them sustainable,
increasing the efficiency of resource
use and the adoption of clean and
environmentally sound technologies
and industrial processes.
Enhance scientific research; upgrade
the technological capabilities of in-
dustrial sectors in all countries (in
particular developing countries);
encourage innovation; substantially
increase the number of research anddevelopment workers per 1 million
people; and boost public and private
research and development spending.
Likewise, the U.N. also recognizes
that energy production and distribu-
tion drives growth and prosperity. The
renewable energy sector presently em-
ploys around 2.3 million. Given the
gaps in information, this is no doubt a
conservative figure. Because of rising
interest in energy alternatives, the cam-
paigns 2030 goal is to have 20 million
people employed in that sector.
Clean and affordable energy targets
for 2030 include: Ensure universal ac-
cess to affordable, reliable and modern
energy services; substantially increase
the share of renewable energy in the
global energy mix; double the global
rate of improvement in energy efficien-
cy; enhance international cooperation
to facilitate access to clean energy
research and technology, includ-
ing renewable energy, energy ef-
ficiency and cleaner fossil-fuel
technology; promote investment
in energy infrastructure and cleanenergy technology; and expand
infrastructure and upgrade tech-
nology for supplying sustainable energy
for all in developing countries.
The Global Goals program is so com-
prehensive, detailed and ambitious that
some of it may not be achievable in its
15-year timeframe. However, Global
Goals is likely to influence the direc-
tion of business and industry for years.
Therefore, it is worth serious attentionand consideration. For more informa-
tion, visit http://bit.ly/1Kjk 0B. Y
Nabil Nasr is director of the Golisa o I sti-
tute for Sustai ability (GIS) at the Rochester
I stitute of Tech ology (RIT) a d director
of the Ce ter for I tegrated Ma ufacturi g
Studies, a tech logy developm t d tr s-
fer arm of GIS. He fou ded the Natio al
Ce ter for Rema ufacturi g a d Resource
Recovery (NC3R) at RIT.
Industry is an indispensable
driver of economic and
social progress.
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Oct. 18, 2016Embassy Suites Chicago O'Hare Chicago
www.iienet.org/workstandards
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memberforum
Out-of-the-box supply chain packagingBy Rajiv Saxena
Most of us have experienced gift-giv-
ing humor, receiving a large, nicely
wrapped box with increasing ly smaller
wrapped packages enclosed.
This happens with supply chain
packaging too, but its no laughing
matter to manufacturing executives.
Few companies are proficient at en-
gineering this outer shipping layer to
protect items during transit, and such
supply chain packaging mistakes cost
organizations more for every-
thing, including freight, ware-
housing and waste management.
But engineering profession-
als have the tools to address these
pockets of inefficiency. The typi-cal corporate contract holds suppliers
responsible for preparing products for
long-distance shipping. Rarely are
they liable for anything besides prod-
uct damage. As a result, most err on
the side of over-packaging.
To make matters worse, many com-
panies are anything but helicopter
clients when overseeing th is function.
Few question whether the materials,
measurements and configurations usedin supply chain packaging match their
products requirements best. And most
dont offer disincentives for transpor-
tation inefficiencies created by suppli-
ers packaging decisions.
But its a good idea to examine your
supply chain packaging setup. Do you
notice a large size differentia l between
your products ex terior packaging and
the product itself when goods are be-
ing unloaded at stores, fulfillment cen-
ters or cross-docks? Do you see more
cushioning material than before? Do
boxes and crates have superfluous air
space? These conditions indicate room
for significant dimensional reductions.
Examine the configuration of con-
tainer and trai ler contents upon arrival
and how shipping boxes, crates or pal-
lets are put away. A lot of empty space,
especially at the top, and items stored
in single or double rows or layers sug-
gest that your packaging materials
have a stackability or cubing i ssue.
Dont ignore how packaging fares
during your unloading process be-
cause if shipping containers cant be
picked up cleanly with a forklift or
other common material handling
method, that location could fall be-
hind when products arrive or report
more product damage than usual.
An inordinate amount of cardboardboxes, plastic containers or filler could
suggest the need for reusable packag-
ing. There might be a better way to
keep product from shifting during
transit than overstuffing a box.
Many things can compromise sup-
ply chain packaging efficiency, and
engineering professionals have nu-
merous tools for improvement. From
identifying alternate packaging con-
figurations and conducting packaging
optimizations to performing simula-
tions and building/testing prototypes,
engineers possess many of the core
competencies needed to bring a fresh
approach to this long-neglected supply
chain area, transforming it into a true
strategic performer.
So if you suspect your companys
supply chain packaging has been an af-
terthought, consider conducting some
of this due diligence. Then present
what youve learned and ask for
the chance to dig deeper into ev-
erything from the parts or prod-
ucts being packed to the scope of
transit involved.
Your employers or clients willbe grateful you encouraged them to
think outside of the box, especially
when they see the freight savings, car-
bon footprint efficiencies and other
material handling improvements you
help them achieve. Y
Rajiv Saxe a is head of global supply chai
solutio s for APL Logistics, a global supply
chai pecialist. He also is preside t of IIEs
Logistics a d Supply Chai ivisio d cabe reached at rajiv.saxe [email protected].
Supply chain packaging
mistakes cost organizations.
To submit a column, email the text to Michael
Hughes at [email protected]. Columns
must be 500 to 600 words and are subject to
editing. Include a brief bio that includes your
IIE membership status.
Voice your opinion
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27/41March 2016 | Industrial Engineer 27
Lean Six Sigma Applications
Share how Lean Six Sigma can
be used to achieve world-class
performance in a wide variety ofapplications and industries.
Manufacturing
Healthcare
Logistics and Supply Chains
.V]LYUTLU[ HUK 5VUWYV[
Service Systems & Retail
Lean Six Sigma Education
Discuss the challenges and
innovations that academic and
industry educators have developedto bring Lean and Six Sigma
into the classroom. Papers or
presentations that are data-
based or advance pedagogy are
encouraged.
Education in Industry
Experiential Games and
Simulations
Lean Six Sigma in the Classroom
Administrative Lean in Academia
Lean Six Sigma Research
Present basic research with a
focus on clear and practical
recommendations for improving[OL JVUJLW[\HSPaH[PVU LLJ[P]L
implementation, and sustainment
of Lean Six Sigma initiatives.
Process Improvement
Product and Service Design/
Development
Creating and Sustaining a Lean
Six Sigma Culture
Emerging Topics and the Future
of Lean Six Sigma
Sept. 14-16, 2016
Embassy Suites Riverwalk-DowntownSan Antonio, Texas
Submission deadline: March 25
Visit www.xcdsystem.com/LSS
for submission requirements.
Submit Abstracts Now for ELSS 2016Abstract submissions are now being accepted to present your research, case study orapplication to Lean and Six Sigma practitioners, researchers, educators and students.
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prise
By Jack Kester
THE RIGHT METRICS
FOR ERGONOMICS
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Performance measurement can be a key to success for
any operational or management process. The right
metrics enable an organization to focus staff members
on critical activities and outcomes that achieve the
desired revenues and earnings for shareholders. The
challenge is to identify those select metrics that will
focus your staff on what is most important for your business.
The devil is in the details.
Your ergonomics process is simply another management
process that must be implemented effectively to attain the out-
comes that management is seeking. Many ergonomics pro-
cesses have failed due to the metrics that were selected when
they were initially implemented. The management teams be-
lieved that metrics for their ergonomics processes were self-
evident because they would reduce the number of workers
compensation claims related to musculoskeletal disorders and
reduce the costs related to those claims.
While those may be valid goals over the long term, using
those two metrics over the short term might disappoint your
management ranks. As the ergonomics process is implement-
ed, more employees become aware of musculoskeletal disor-
ders and their symptoms. At that point, the number of claims
and their related costs may increase, causing management to
rethink the wisdom of implementing ergonomics in their
workplace. While the increased incident rates may have been
a short-term phenomenon, many ergonomics processes have
been discontinued due to such perceived negative outcomes.
These false starts could have been avoided if the right short-
term and long-term metrics had been introduced when the
ergonomics processes were initiated. Lets take a look at effec-tive metrics for ergonomics processes.
Sustainable ergonomics processesImplementing an effective ergonomics process is not rocket
science, unless you are implementing it at Boeing or Northrop
Grumman. Most ergonomics processes have similar elements:
an ergonomics team, some form of prioritization system for
selecting jobs for analysis, an ergonomics analysis process, er-
gonomics training, etc.
However, many ergonomics processes do not provide
enough detail to create measurable process tracking and effec-tive metrics. Many processes fail to provide enough data in a
format that enables the management team to make informed
decisions on ergonomics solutions. Most processes do not pro-
vide enough meaningful feedback to management or provide
a structure for engaging management in the process. These
missing features affect the effectiveness of the processes and
limit managements ability to develop metrics that address the
most meaningful activities.
Now, envision an ergonomics process that objectively pri-
oritizes risk in the workplace to focus resources where they
will have the greatest impact. Consider a process that calcu-
lates the impact on risk and the potential return on investment
(ROI) when ergonomics solution options are submitted to
management for approval.
Think about how employees will react when they see se-
nior managers actively involved in meaningful ergonomics
activities in their work areas. How would it feel to see flags
and displays at workstations that celebrate and illustrate the
effectiveness of the ergonomics solutions implemented at the
plants actual workstations? That is the difference that you see
and feel with a sustainable ergonomics process. And each of
those process elements can be measured if, at the outset, they
are designed thoughtful ly.
One of the most important elements of an ergonomics pro-
cess is an objective method for prioritizing risk in the work-
place. One method of prioritizing risk is to use a risk assess-
ment format that provides a means for scoring the level of risk.
A number of available risk assessment tools can quantify the
ergonomics risk, and it is important to select a tool that results
in consistent scores regardless of who completes the assess-
ment. The ergonomics process should define how and when a
risk assessment will be performed and how risk will be priori-
tized. A metric then could be established to track the effective-
ness of the assessment process.
The risk assessment tool has a number of other uses. As er-
gonomic solution options are developed, the team can use the
assessment tool to project the potential impact on risk for each
option. That can be a meaningful data point as management
selects between the solution options.
The assessment tool also can be used to validate the impact
of an ergonomics solution after implementation. This con-firms the effectiveness of the solution and enables the ergo-
nomics team to recognize any unintended consequences that
result from how the solution was implemented. The follow-up
assessment is a critical activity that could be included in the
short-term metrics.
Metrics can be developed to track significant risk assessment
activities to enable management to track the implementation
of the process. For example, some meaningful metrics on risk
assessment may include:
The percentage of jobs/tasks with completed risk assess-ments compared to the time frames in the ergonomics pro-
cess
The percentage of new or revised workstations with risk
assessments completed within 30 days
The percentage (or number) of ergonomics solutions imple-
mented that achieved significant risk reductions based on a
post-implementation risk assessment validation
A sustainable process provides a simple mechanism for cal-
culating potential returns on investment for ergonomics so-
lution options. A spreadsheet calculator Figure 1 shows an
P
-
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example can estimate the potential monetary returns for
each solution and present the ROI calculations side by side
in a summary sheet to enable management to make informed
decisions as they select between solution options. This ROI
calculation also should be performed after an ergonomics solu-
tion has been implemented to confirm the operational impact.
The metrics should compare the ROI or payback periods for
ergonomics solutions to corporate expectations for ROI or
payback periods for capital investments.Sustainable processes provide frequent feedback to the man-
agement team with data on the key metrics in a one-page,
quick-look report. A member of the ergonomics team reviews
the metrics with senior management on a monthly basis to
provide feedback on progress and to solicit management as-
sistance or involvement when obstacles arise. The impact of
ergonomics solutions is reviewed with management during
these meetings, providing positive reinforcement that the er-
gonomics process is adding value to the business.
Management engagement is a prominent element of a sus-
tainable ergonomics process. When senior managers perform
highly visible activities within the process, staff members rec-
ognize the importance of their roles in ergonomics. The man-
agement team also gets a close-up look at how ergonomics
affects the staff members and their well-being. This provides
positive reinforcement to management as well as other staffers,
along with providing potential metrics to hold management
accountable for its level of engagement.
Metrics that drive changeWhat gets measured gets done.
We all have heard that timeless theory about metrics and
effectiveness. The key to making this work is to ensure we are
measuring the right things at the right times.
For example, ergonomics processes can reduce workers
compensation costs. However, it takes time to implement the
ergonomics process and introduce changes to workstations
and workflow that will reduce risk for your staff. Measuring
the workers compensation cost reductions three months after
implementing the ergonomics process sends the wrong mes-
sage to the management team and to hourly staff members
Therightm
etricsforergonomics FIGURE 1FIGURE 1
Ergonomics solution impact calculatorThis ergonomics solution impact calculator provides a simple method for quantifying the costs and potential impact on operations
for various options. Based on the data provided, the spreadsheet calculates the return-on-investment and payback period for various
ergonomics solutions, allowing ergonomics teams and management to compare the data side by side.
General data Solution description: Install a self-leveling lift table
# of employees on job 2
Hourly labor rate $22 $22
Annual WC costs for job $15,000
Solution implementation cost Productivity impact estimate
Cost factors Costs Level of increase Mark 'x'
Equipment purchase $1,400 High - Speeds up process
Installation costs $100 Medium - Reduces wasted motion x
Training costs $50 Low - Improves comfort/reduces fatigue
Recurring costs Solution effectiveness estimate
Other costs Type of Solution Mark 'x'
Total cost of solution $1,550 Eliminates the exposure
Solution cost savings Reduces the level of exposure x
WC cost auto calculation $6,000 Reduces the time of exposure
Productivity calculation $4,400 Relies on behavior changes or training
Product returns & rework Comments:
Absenteeism/employee turnover
Other factors
Total savings from solution
Comparative valuation of solution
First year return-on-investment 5.71 (projected savings - implementation cost)/implementation cost = ROIPayback period (years) 0.15 (implementation cost/projected savings) x 1 year =payback period
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because such figures are great long-term metrics but provide
no meaningful information over the short term.
Long-term metrics focus on the intended outcomes of the
ergonomics process once it has had time to be implemented
and become normalized. Long-term metrics can start to pro-
vide some meaningful data two or three years after the ergo-
nomics process is functional. If long-term metrics do not meet
expectations, management should evaluate the ergonomics
process to identify flaws or gaps.
For example, evaluating the process may show that effective
ergonomics solutions have been implemented, but employees
have not adopted the changes or are not using new tools and
equipment as intended. Armed with that information, the
process can be modified to reinforce training and behavior
observation practices to improve the level of conformance.
Over the short term, the management team needs to track
upstream metrics the implementation of critical ergonomics
process elements that will achieve long-term goals. If the pro-
cess is designed properly, the significant process elements will
include time frames for performance and procedures to gather
feedback and evaluate the quality of ergonomics activities.
The ergonomics process should be simple to translate into
upstream metrics to enable management to evaluate the level
of implementation. This provides the opportunity to identify
areas where implementation is lagging and enables manage-
ment to identify and overcome any internal obstacles and
guide the process back on track. Better yet, when short-term
metrics reveal effective application of the process, manage-
ment can provide positive reinforcement to team members to
encourage continued success.The best management processes allow for mutual account-
ability, establishing roles in the process for all staff members,
from hourly workers to the senior management team. All staff
members should be held accountable for effectively fulfilling
their roles in the process.
For example, the ergonomics team typically submits its
ideas for ergonomics solutions to management to gain agree-
ment and to secure funding for solution implementation. The
management team should be accountable for making decisions
on the ergonomics solutions within a reasonable designated
time frame. Training the ergonomics team to estimate ROIor payback periods for its solutions as well as potential risk re-
duction will facilitate management discussions and reduce the
decision-making time frames.
Lets look at some examples of typical short-term and long-
term metrics used by prominent U.S. organizations.
Short-term metricsAs mentioned above, short-term metrics should be designed
to implement key ergonomics activities effectively. You need
to trust that the ergonomics process will achieve the intended
outcomes if management, ergonomics team members, and
other staff members fulfill their roles within the process.
Therefore, short-term metrics, which have a time frame of
zero to three years, focus on the implementation and quality
of performance for significant ergonomics activities, such as:
Percentage of risk assessments performed within the process
timelines
Consistency of the scoring in the risk assessment process
Ergonomics job analyses performed for the selected number
of jobs/tasks defined as high risk within the risk assess-
ment process
The number of ergonomic analyses completed for high-
risk jobs with a range of potential solutions presented to
management with data on the potential impact on the risk
score and the estimated return on investment of each solu-
tion option
Management decisions made on the solutions presented for
the high-risk jobs within the time frames designated by the
ergonomics process
The number of ergonomics solutions implemented for
high-risk jobs
The number of validations of the reduction in the risk score
and the return on investment for ergonomics solutions im-
plemented
The number of cases of senior management involvement
or engagement in critical and visible ergonomics activities,
such as behavior observations after the implementation of
ergonomics solutions, observation of risk assessment activi-
ties performed by the ergonomics team, ergonomics solu-
tion brainstorming sessions, etc. The frequency of the status reports to management as de-
fined within the ergonomics process
These metrics enable the management team to track the ef-
fectiveness of the implementation of the ergonomics process.
If the upstream metrics are not being met, management can
intervene to address issues.
For example, a common issue that arises is an uncooperative
production supervisor who will not allow ergonomics team
members to leave their jobs to perform risk assessments or job
analyses. When the risk assessment metrics are behind sched-ule, senior management can investigate the causal factors and
secure the cooperation of the supervisor. Training issues and
team conflict are other issues that can be uncovered as man-
agement evaluates short-term metric performance.
Short-term metrics provide a valuable mechanism to spot
flaws in the ergonomics process implementation quickly to
maintain momentum and achieve success.
Long-term metricsLong-term metrics focus on downstream outcomes that add
value to the company. Management team members want to
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Todays United States armed
forces are the strongest and
most advanced military force
the world has ever known.
This statement is thrown
around by many political pun-
dits and talking heads alike, although
many times they dont think about the
significance of its implications.
Consider that according to the Stock-holm International Peace Research In-
stitute, U.S. military spending averages
$711 billion per year, representing 48
percent of the total military spending
in the world. There are 10 U.S. aircraft
carriers in service, while everyone else
has 10 combined. There are 8,400 attack
helicopters in the world, and the U.S.
owns 6,400 of them. These statistics
go on and on, all supporting the fact of
Americas unrivaled military might.
How did we get here? While the
United States has enjoyed unabated mil-
itary prominence following World War
II, the post-9/11 military ramp-up in
spending to combat terror and support
two ground wars represents a watershed
moment in American history military
spending increased by 50 percent in the
following decade. This trend followed
the dogma of more money = moremilitary capability.
While the resulting increase in the
sheer abundance of resources is obvious,
the fallout from this spending, coupled
with fiscal constraints set via congres-
sional efforts to combat the federal gov-
ernments financial deficit, had left one
logistics information technology (Log-
IT) military entity questioning if the re-
sources acquired led to the right logistics
support capability. The warfighter de-
pends on the capability of LogIT systems
to support mission requirements every
day. This could range from the transfer
of requests for amphibious vehicle parts
in Djibouti to the relay of geographi-
cal information for service members in
theater. The ability of these systems to
function both exclusively and as a unit
was truly a l ife and death situation.
This questioning turned into a firmrecognition of inefficient acquisition
practices as sequestration became the
new normal. The quick, knee-jerk,
hey, thats a great idea acquisition de-
cisions of the early 2000s gave rise to a
bloated, capability-redundant LogIT
portfolio. Many systems accomplished
the exact same mission but treated data
in very different ways. This resulted in
not only confusion in how and which
LogIT systems to employ, but also un-
T