ERGONOMICS

(HUMAN
ENGINEERING)
Chapter V
LEARNING OBJECTIVES:

A f t e r re a d in g th is ch a p t e r, yo u w ill b e ab le to :

1. u n d e r st a n d d e e p ly t h e sign if ica n ce o f in t e gr a t e d w a st e m a n a ge m e n t

2. kn o w ab o u t co d if icat io n

3. u n d e r st a n d va lu e an a ly sis
INTRODUCTION
• T h e w o r d ‘E rg o n o m i cs’ h as i ts o r igi n i n t w o G r e e k w o r d s ‘Ergo n ’ m e a n i ng
la w s. So i t is t h e st u d y o f t h e m a n i n re l a t i o n t o h is w o r k . I t is call e d b y
t h e n a m e “ h u m a n e ngi n e e r i ng o r h u m a n fa c t o rs e ngi n e e r i ng.” H u m a n
e ngi n e e r i ng is d e f i n e d as, “ T h e a p p lica t i o n o f h u m a n b i o l ogica l sci e n c e s
a l o ng w i t h e ngi n e e r i ng sci e n c es t o ac h i e v e o p t i m u m m u t u a l a d j u s t m e n t
o f m e n a n d h is w o r k, t h e b e n e f i t s b e i n g m e as u r e d i n t e r m s o f h u m a n
e f f ici e n c y a n d w e ll - b e i ng.” T h e h u m a n f a c t o rs o r h u m a n e ngi n e e r i ng is
c o n c e r n e d w i t h m a n - m a c h i n e sys t e m . T h u s a n o t h e r d e f i n i t i o n w h i c h
h ig h lig h t s t h e m a n - m a c h i n e sys t e m is: “ T h e d esig n o f h u m a n t as ks, m a n -
m a c h i n e sys t e m , an d e f f e c t i v e acc o m p lis h m e n t o f t h e jo b , i n cl u d i ng
d is p l a ys f o r p r e s e n t i ng i n f o r m a t i o n t o h u m a n s e n s o rs, c o n t r o l s f o r h u m a n
o p e r a t i o n s a n d c o m p l e x m a n - m a c h i n e sys t e m s. “ H u m a n e ngi n e e r i ng
f o c u s es o n h u m a n b e i ngs a n d t h e i r i n t e r a c t i o n w i t h p r o d u c t s , e q u i p m e n t
fa cilit ie s an d en v ir o n m e n t s u se d in t h e w o r k .
INTEGRATED WASTE MANAGEMENT
• H u m a n en gin e e r in g (e r go n o m ics) h a s t w o b r o a d e r o b je ct iv e s:
• ·To en h a n ce t h e ef f icie n cy an d ef f e ct iv e n e ss w it h w h ich t h e act iv it ie s
(w o r k ) is ca r r ie d o u t so as t o in cr e a se t h e co n v e n ie n ce o f u se , re d u ce d
e r r o r s an d in cr e a se in p r o d u ct iv it y.
• ·To en h a n ce ce r t a in d e sir a b le h u m a n va lu e s in clu d in g sa f e t y re d u ce d
st r e ss an d fa t igu e an d im p r o v e d q u a lit y o f lif e .
• In gen e r a l t h e sco p e an d o b je ct iv e o f er go n o m ics is “ d e sign in g
fo r h u m a n u se an d o p t im izin g w o r k in g an d liv in g co n d it io n s
• H u m a n fa c t o r s (e r go n o m ics) d isco v e r an d ap p ly in f o r m a t io n
ab o u t h u m a n b e h av io r.
• A b ilit ie s an d lim it a t io n s an d o t h e r ch a r a ct e r ist ics t o t h e d e sign
o f t o o ls, m a ch in e s, sy st e m s, t a sk s, jo b s an d en v ir o n m e n t fo r
p r o d u ct iv e , sa fe , co m f o r t a b le an d ef f e ct iv e h u m a n u se .
Er go n o m ics aim s at p r o v id in g co m f o r t an d im p r o v e d w o r k in g
co n d it io n s so as t o ch a n n e lize t h e en e r gy, sk ills o f t h e w o r ke r s
in t o co n st r u ct iv e p r o d u ct iv e w o r k .
• Th is acco u n t s fo r in c r e a se d p r o d u c t iv it y, sa fe t y an d re d u ce s
t h e fa t igu e . Th is h e lp s t o in cr e a se t h e p la n t u t ilizat io n .
 STORE MANAGEMENT
• St o r e s p la y a vit a l ro le in t h e o p e r at io n s o f co m p a n y.
• It is in d ir e ct t o u ch w it h t h e u se r d e p a r t m e n t s in it s d ay -t o -
d ay act iv it ie s.
• Th e m o st im p o r t a n t p u r p o se se r v e d b y t h e st o r e s is t o
p r o v id e u n in t e r r u p t e d se r v ic e t o t h e m a n u f a ct u r in g
d iv isio n s.
• Fu r t h e r, st o r e s ar e o f t e n e q u a t e d d ir e ct ly w it h m o n e y ; as
m o n e y is lo c ke d u p in t h e st o r e s.
F U N C T I O N S O F STO R ES
1. To re ce iv e ra w m a t e r ia ls, co m p o n e n t s, to o ls, eq u ip m e n t an d o t h e r it e m s an d acco u n t
fo r t h e m .
2. To p r o v id e ad e q u a t e an d p r o p e r st o r a ge an d p r e se r v a t io n t o t h e va r io u s it e m s.
3. To m e e t t h e d e m a n d s o f t h e co n su m in g d e p a r t m e n t s b y p r o p e r issu e s an d acco u n t
fo r t h e co n su m p t io n .
4. To m in im ize o b so le sce n ce , su r p lu s an d scr a p t h r o u gh p r o p e r co d if ica t io n ,
p r e se r v a t io n an d h a n d lin g.
5. To h igh ligh t st o ck accu m u la t io n , d iscr e p a n cie s an d ab n o r m a l co n su m p t io n an d ef fe ct
co n t r o l m e a su r e s.
6. To en su r e go o d h o u se ke e p in g so t h a t m a t e r ia l h a n d lin g, m a t e r ia l p r e se r v a t io n ,
st o ck in g, re ce ip t an d issu e ca n b e d o n e ad e q u a t e ly.
7. To assist in ve r if ica t io n an d p r o v id e su p p o r t in g in f o r m a t io n fo r ef f e ct iv e p u r ch a se
act io n .
C O D I F I C AT I O N

• In industrial economics, codification refers to the process of

converting knowledge, typically about production processes,
into a formalized and explicit form.
• This can involve documenting procedures, techniques, or
best practices in a standardized way so that they can be easily
communicated and replicated within an organization.
• Codification is often used to improve efficiency, quality, and
innovation within industrial settings by making knowledge
more accessible and transferable.
 CODIFICATION
• Due to the growth of industrial activity and diverse kind of industrial
requirements, a large no. of organizations have to store a large number of
items, often running into several thousands and even lacs. Therefore, there
should be some means of identifying them.
• A common practice is to describe the items by individuals names. Since
several departments use the same item, they call the same item by different
names and store them in different places.
• One of the most useful techniques of “Materials Management’’ is a
rationalized codification system for properly classifying equipments, raw
materials, components and spares to suit to the particular needs of any
organization.
CODIFICATION

• An article of stores is identified by its simple description or nomenclature.

Difficulty arises when the same article is known by different names.
• Codification is a process of representing each item by a number, the digit
of which indicates the group, the sub-group, the type and the dimension of
the item.
• Many organizations in the public and private sectors, railways have their
own system of codification, varying from eight to thirteen digits. The first
two digits represent the major groups, such as raw materials, spare parts,
sub-contracted items, hardware items, packing material, tools, oil,
stationery etc.
THE NEED FOR CODIFICATION ARISES
BECAUSE OF THE FOLLOWING REASONS:
(i) Speed,
(ii) Unambiguity,
(iii) Saving of Effort,
(iv) Space Saving on forms,
(v) Ease of classification,
(vi) Mechanization.
CHARACTERIS TICS OF CODES

• As far as possible uniform dimension say, the metric system should be

adopted.
• Code should be Simple.
• Code should be unique.
• Coding should be compact, concise and consistent.
• Code should be sufficiently flexible to meet future demands.
BASIC REQUIREMENT S OF A CODE

• Identify commodities
• Name commodities
• Specify commodities
• Classify commodities
• Indicate inter-relationships between commodities
• Indicate the source of origin of commodities
• Refer specifically to an individual and unique commodity.
OBJECTIVES OF CODIFICATION
• Accurate and logical identification: A separate code allotted to each of the
items available in the warehouse indicating the size, quality price, usability,
special characteristics, specification etc.
• Prevention of duplication: All items are separately codified and are
arranged in a logical order. Similar materials are grouped together (such as
stationery items, hardware items) and given a code.
• Standardization and reduction of varieties: For codification, grouping of
identical item is done and it enables the stores to examine the entire range
of items. It facilitates the elimination of those varieties in place of which
other varieties of the same quality can be used. This reduces the number of
varieties to a minimum. If proper standardization is achieved and the
number of items is kept at the minimum, it will considerably reduce
investment in various items as well as the cost of inventory carrying.
OBJECTIVES OF CODIFICATION
• Efficient purchasing: The filling up of purchase requisition, and
preparation of purchase orders are simplified by the use of codes which
easily indicates the materials required. Buying instructions to the suppliers
become easy and quick if there is proper understanding of codification by
the suppliers.
• Efficient recording and accounting codes leads to effective stock control,
efficient recording and it results in yielding accounting. Chances of
mistakes are minimized. Pricing and valuation also become more accurate
and reliable.
• Easy locating, indexing and inspection of all materials is possible.
• Easy computerization: The computer work better with codes then with
long description of materials.
VALUE ANALYSIS
• Value analysis is defined as “an organized creative approach which has its
objective, the efficient identification of unnecessary cost which provides neither
quality nor use nor life nor appearance nor customer features.”
• Value analysis focuses engineering, manufacturing and purchasing attention to
one objective—equivalent performance at a lower cost.
• Value analysis is concerned with the costs added due to inefficient or unnecessary
specifications and features. It makes its contribution in the last stage of product
cycle, namely, the maturity stage. At this stage, research and development no
longer make positive contributions in terms of improving the efficiency of the
functions of the product or adding new functions to it.
• Value is not inherent in a product, it is a relative term, and value can change with
time and place. It can be measured only by comparison with other products which
perform the same function. Value is the relationship between what someone
wants and what he is willing to pay for it. In fact, the heart of value analysis
techniques is the functional approach. It relates to cost of function whereas others
relate cost to product. It is denoted by the ration between function and cost.
 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛
• value = 𝑐𝑜𝑠𝑡

• Let's assume the function (value) of the process is to produce 100

units of the product per hour, and the cost of producing these 100
units is P500 (including all expenses). We can calculate the value/cost
ratio as follows:
• Value = 100 units/hour Cost = P500
• Value/Cost = 100 units/hour / P500 = 0.2 units per Peso
• This ratio tells us that for every Money spent on the manufacturing
process, we are able to produce 0.2 units of the product.
VALUE ANALYSIS FRAMEWORK

The basic framework for value analysis approach is formed by the following
questions:
• What is the item?
• What does it do?

• What does it cost?

• What else would do the job?

• What would the alternative cost be?

Value analysis requires these questions to be answered for the

successful implementation of the technique.
S TEPS IN VALUE ANALYSIS

In order to answer the above questions, three basic steps are

necessary:
Identifying the Function
Any useful product has some primary function which must be
identified a bulb to give light a refrigerator to preserve food, etc. In addition,
it may have secondary functions such as withstanding shock, etc. These two
must be identified.
Evaluation of the Function by Comparison
Value being a relative term, the comparison approach must be used to
evaluate functions. The basic question is, ‘Does the function accomplish
reliability at the best cost?’ and can be answered only comparison
DEVELOP ALTERNATIVES

• Realistic situations must be faced, objections should overcome and

effective engineering manufacturing and other alternatives must be
developed. In order to develop effective alternatives and identify
unnecessary cost the following thirteen value analysis principles must be
used:
• Avoid generalities.
• Get all available costs.
• Use information only from the best source.
BRAINSTORMING SESSIONS

• In the blast stage, alternative productive products, materials, processes, or ideas are
generated. In the ‘create’ stage the ideas generated in the blast stages are used to generate
alternatives which accomplish the function almost totally. In the refining stage the
alternatives generated are sifted and refined so as to arrive at the final alternative to be
implemented.
• Identify and overcome road blocks.
• Use industry specialists to extend specialized knowledge.
• Key tolerance not to be too light.
• Utilize the pay for vendors’ skill techniques.
• Utilize vendors’ available functional products.
• Utilize specialty processes.
• Utilize applicable standards.
INVENTORY MANAGEMENT S YS TEM

• An inventory control system

operates on a technological basis. It
updates automatically every time an
item is scanned and removed from
the inventory, so the employer
knows how much is on location at
all times.
OBJECTIVES

Through the efficient management of inventory, the wealth of owners will

be maximized. To reduce the requirement of cash in business, inventory turnover
should be maximized and management should save itself from loss of production
and sales arising from its being out of stock. On the other hand, management
should maximize stock turnover so that investment in inventory could be minimized
and on the other hand, it should keep adequate inventory to operate the production
and sales activities efficiently. The main objective of inventory management is to
maintain inventory at appropriate level so that it is neither excessive nor short of
requirement. Thus, management is faced with two conflicting objectives.
• (1) To keep inventory at sufficiently high level to perform production and
sales activities smoothly.
• (2) To minimize investment in inventory at minimum level to maximize
profitability
F U N CT I O N S
• This is important, as each item is valuable and essentially an asset for the company
and the employer. An inventory control system functions to protect these assets and
provide a cost-effective inventory control solution for the employer.
• Low Inventory Stock — The inventory control system will also provide the employer with
updated numbers in regards to inventory stock available. This is particularly important for
stores or raw materials used for product development. The figures give information about
when new supplies need to be ordered. The employer can often program the inventory
system to alert him when supplies reach a low of ten items in the inventory, for instance.
• Print Detailed Reports — The inventory control system should also provide the employer
with a detailed inventory report that shows activity surrounding the inventory. This
procedure allow the employer to implement a management team if the employees are
indeed stealing or breaking valuable inventory items.
• Save Time and Money — Without a technological inventory system, the employer must
often sacrifice both time and money by asking employees to work overtime to counting
inventory items.
• Update as Needed — An inventory control system is updated automatically through a
scanning process. If an item or raw material is removed from the inventory, it needs to be
scanned so the system updates.
• Nature of Inventory Management System
• Inventory are necessary for a firm to operate efficiently and almost all
business transactions involve the delivery of a product or service in
exchange for currency. For this reason, inventory management is a very
important part of core operations activities. Most retail businesses and
wholesale organizations acquire most of their revenue through the sale of
merchandise (inventory). In order for business and supply chains to run
effectively and efficiently, they must meet all the listed requirements for
effective inventory management. Some of the main concerns are the level
of customer service and the cost of ordering, storing, and carrying
inventory. Therefore, in order to be a successful and profitable company,
inventory management must be managed wisely.
IMPORTANCE OF INVENTORY
MANAGEMENT S YS TEM
• Inventory management is an important part of a business because it is used to track and maintain
the inventory required to meet customer demand. Inventories are usually the largest expense incurred
from business operations.
• Inventory Orders — Inventory management systems help business order inventory by accurately recording
consumer sales.
• Stock Maintenance — Most companies use inventory management to keep stock items separate from
similar goods; this allows management to determine which items are selling well and which items need to
be reduced from inventory based on poor sales.
• Price Levels — Using inventory management systems will help companies find the lowest price on
inventory items and ensure that the best deals are reached when purchasing these items.
• Count Methods — All inventories need to be counted and reconciled to the information provided by
inventory management systems to ensure accurate reporting.
• Trend Analysis — A great function of inventory management systems is the trending analyses that are
generated for management review. Trends are used to see which months have high inventory levels or the
effectiveness of inventory purchases, and ensure that companies can order inventory.
I N V E N TO RY CO S T S
• The cost of holding goods in stock expressed usually as a percentage of the
inventory value, it includes capital, warehousing, depreciation, insurance,
taxation, obsolescence, and shrinkage costs.
Inventory costs are basically categorized into three headings:
• Ordering cost
• Carrying cost
• Shortage or stock out cost and cost of replenishment
• Cost of loss, pilferage, shrinkage and obsolescence etc.
• Cost of logistics
• Sales discounts, volume discounts and other related costs
Ordering Cost
• Cost of procurement and inbound logistics costs form a part of Ordering
Costs. Ordering Costs is dependent and varies based on two factors — The cost of
ordering excess and the Cost of ordering too less. These two costs are called total
stocking cost.