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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
http://-/?-http://-/?-


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http://www.purdueonlineengineering.com/


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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

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attending educational

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Its not too late. Registration rates increase on March 13.

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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
http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://www.iienet.org/IEmagazinehttp://www.iienet.org/IEmagazinehttp://www.iienet.org/iemagazine


5/41March 2016 | Industrial Engineer 5
mailto:quetech.comhttp://www.quetech.com/http://www.quetech.com/http://www.quetech.com/



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.
http://ce.org/mailto:[email protected]://www.iienet.org/IEmagazinemailto:[email protected]



Plan Your 2016 Training

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March 21-24 | Orlando, FL

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Management and Specialty Courses

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June 6-8 | Norcross, GA

Project Management Fundamentals


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Financial Management for Engineers


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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.

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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

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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


Healthcare Labor Management

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(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

subscriptions: per year $210; two years $369; three years $472. Outside U.S.: one year $260; two years $444; three years $603. Airmail $99 additional. Institutions and agencies, call for rates: (770) 449-0460.Editors Note:

We treat all communications as letters to the editor unless otherwise instructed. This publication is designed to provide accurate information in regard to the subject matter covered. It is provided and disseminated with the

understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.Content:

Publication does not constitute endorsement of any product or material, nor does IIE necessarily agree with the statements or opinions advanced at its meetings or printed in its publications.This magazine acts as a

moderator, without approving, disapproving, or guaranteeing the validity or accuracy of any data, claim, or opinion appearing under a byline or obtained or quoted from an acknowledged source.All issues of

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PresidentJames E. Moore II, Ph.D.,

University of Southern California

President-Elect and CFOMichael D. Foss, Amazon

Immediate Past PresidentDennis Oates, Amazon

Senior VP-at-Large, AcademicRanda Shehab, Ph.D.,

University of Oklahoma

Senior VP-at-Large, IndustryJoan Wagner, P.E., Spirit

AeroSystems Inc.

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Institute of Industrial Engineers

INSTITUTE OF INDUSTRIAL ENGINEERS

BOARD OF TRUSTEES

Executive EditorMonica Elliott

[email protected]

(770) 449-0461, ext. 116

Managing EditorMichael Hughes

[email protected]

(770) 349-1110

Web Managing EditorAshlyn Kirk

[email protected]

(770) 449-0461, ext. 119

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serves the diverse audience of professionals and students whose

common interest is industrial engineering. Our mission is to provide useful,

interesting, timely and thought-provoking content that addresses the broad

spectrum of industrial engineering practice in all industries. As the pre-eminent

voice of the profession, strives to give readers information they

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

To serve as a career development resource to students and professionals

To maintain high editorial standards, journalistic integrity and credibility

To support the mission of IIE in its service to members and the industrial

engineering profession

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Corporate partners receive H[FOXVLYH EHQHWV On-site training tailored to your company needs

Discounted group rate training (on site or online)

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Connections to a global network of professional Industrial Engineers

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BECOME AN IIECORPORATE PARTNER

STRENGTHEN YOUR BRAND GROW YOUR ORGANIZATION STAY CONNECTED

Contact Doug Long, Global Director Strategic Alliances,

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The Institute of Industrial Engineers corporate partnerships provide

the tools employees need to understand the latest trends and newest

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.

Blue Cross Blue Shield

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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
http://www.iienet.org/IEmagazine



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



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.



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



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



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.



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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Get excited for the largest industrial and systems engineering event of

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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.
mailto:[email protected]://www.iienet.org/IEmagazine



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

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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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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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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.

ELSS 2016 tracks:
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prise

By Jack Kester

THE RIGHT METRICS

FOR ERGONOMICS



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



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



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


32/41



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

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