Company Success in Manufacturing Organizations A Holistic Systems Approach Industrial Innovation Series Series Editor Adedeji B Badiru Air Force Institute of Technology (AFIT)—Dayton, Ohio PUBLISHED TITLES Carbon Footprint Analysis: Concepts, Methods, Implementation, and Case Studies, Matthew John Franchetti & Defne Apul Cellular Manufacturing: Mitigating Risk and Uncertainty, John X Wang Communication for Continuous Improvement Projects, Tina Agustiady Computational Economic Analysis for Engineering and Industry, Adedeji B Badiru & Olufemi A Omitaomu Conveyors: Applications, Selection, and Integration, Patrick M McGuire Culture and Trust in Technology-Driven Organizations, Frances Alston Global Engineering: Design, Decision Making, and Communication, Carlos Acosta, V Jorge Leon, Charles Conrad, & Cesar O Malave Global Manufacturing Technology Transfer: Africa–USA Strategies, Adaptations, and Management, Adedeji B Badiru Guide to Environment Safety and Health Management: Developing, Implementing, and Maintaining a Continuous Improvement Program, Frances Alston & Emily J Millikin Handbook of Emergency Response: A Human Factors and Systems Engineering Approach, Adedeji B Badiru & LeeAnn Racz Handbook of Industrial Engineering Equations, Formulas, and Calculations, Adedeji B Badiru & Olufemi A Omitaomu Handbook of Industrial and Systems Engineering, Second Edition, Adedeji B Badiru Handbook of Military Industrial Engineering, Adedeji B Badiru & Marlin U Thomas Industrial Control Systems: Mathematical and Statistical Models and Techniques, Adedeji B Badiru, Oye Ibidapo-Obe, & Babatunde J Ayeni Industrial Project Management: Concepts, Tools, and Techniques, Adedeji B Badiru, Abidemi Badiru, & Adetokunboh Badiru Inventory Management: Non-Classical Views, Mohamad Y Jaber Kansei Engineering—2-volume set • Innovations of Kansei Engineering, Mitsuo Nagamachi & Anitawati Mohd Lokman • Kansei/Affective Engineering, Mitsuo Nagamachi Kansei Innovation: Practical Design Applications for Product and Service Development, Mitsuo Nagamachi & Anitawati Mohd Lokman Knowledge Discovery from Sensor Data, Auroop R Ganguly, João Gama, Olufemi A Omitaomu, Mohamed Medhat Gaber, & Ranga Raju Vatsavai Learning Curves: Theory, Models, and Applications, Mohamad Y Jaber Managing Projects as Investments: Earned Value to Business Value, Stephen A Devaux Modern Construction: Lean Project Delivery and Integrated Practices, Lincoln Harding Forbes & Syed M Ahmed Moving from Project Management to Project Leadership: A Practical Guide to Leading Groups, R Camper Bull Project Management: Systems, Principles, and Applications, Adedeji B Badiru Project Management for the Oil and Gas Industry: A World System Approach, Adedeji B Badiru & Samuel O Osisanya Quality Management in Construction Projects, Abdul Razzak Rumane Quality Tools for Managing Construction Projects, Abdul Razzak Rumane Social Responsibility: Failure Mode Effects and Analysis, Holly Alison Duckworth & Rosemond Ann Moore Statistical Techniques for Project Control, Adedeji B Badiru & Tina Agustiady STEP Project Management: Guide for Science, Technology, and Engineering Projects, Adedeji B Badiru Sustainability: Utilizing Lean Six Sigma Techniques, Tina Agustiady & Adedeji B Badiru Systems Thinking: Coping with 21st Century Problems, John Turner Boardman & Brian J Sauser Techonomics: The Theory of Industrial Evolution, H Lee Martin Total Productive Maintenance: Strategies and Implementation Guide, Tina Agustiady & Elizabeth A Cudney Total Project Control: A Practitioner’s Guide to Managing Projects as Investments, Second Edition, Stephen A Devaux Triple C Model of Project Management: Communication, Cooperation, Coordination, Adedeji B Badiru FORTHCOMING TITLES 3D Printing Handbook: Product Development for the Defense Industry, Adedeji B Badiru & Vhance V Valencia Company Success in Manufacturing Organizations: A Holistic Systems Approach, Ana M Ferreras & Lesia L Crumpton-Young Design for Profitability: Guidelines to Cost Effective Management of the Development Process of Complex Products, Salah Ahmed Mohamed Elmoselhy Essentials of Engineering Leadership and Innovation, Pamela McCauleyBush & Lesia L Crumpton-Young Handbook of Construction Management: Scope, Schedule, and Cost Control, Abdul Razzak Rumane Handbook of Measurements: Benchmarks for Systems Accuracy and Precision, Adedeji B Badiru & LeeAnn Racz Introduction to Industrial Engineering, Second Edition, Avraham Shtub & Yuval Cohen Manufacturing and Enterprise: An Integrated Systems Approach, Adedeji B Badiru, Oye Ibidapo-Obe & Babatunde J Ayeni Project Management for Research: Tools and Techniques for Science and Technology, Adedeji B Badiru, Vhance V Valencia, & Christina Rusnock Project Management Simplified: A Step-by-Step Process, Barbara Karten A Six Sigma Approach to Sustainability: Continual Improvement for Social Responsibility, Holly Allison Duckworth & Andrea Hoffmeier Zimmerman Work Design: A Systematic Approach, Adedeji B Badiru Company Success in Manufacturing Organizations A Holistic Systems Approach Dr Ana Ferreras National Academy of Sciences Dr Lesia Crumpton-Young Tennessee State University CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2018 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S Government works Printed on acid-free paper International Standard Book Number-13: 978-1-4822-3317-9 (Hardback) This book contains information obtained from authentic and highly regarded sources Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if 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arranged Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe Library of Congress Cataloging-in-Publication Data Names: Ferreras, Ana, author | Crumpton-Young, Lesia, author Title: Company success in manufacturing organizations : a holistic systems approach / Ana Ferreras, Lesia Crumpton-Young Description: Edition | Boca Raton, FL : CRC Press, [2017] | Series: Industrial innovation series Identifiers: LCCN 2017011446| ISBN 9781482233179 (hardback : alk paper) | ISBN 9781482233186 (ebook) Subjects: LCSH: Success in business | Employee motivation | Industrial efficiency Classification: LCC HF5386 F4127 2017 | DDC 658 dc23 LC record available at https://lccn.loc.gov/2017011446 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Contents Preface xi Acknowledgments xiii Authors .xv Chapter Company success in the twenty-first century 1.1 What drives success? 1.2 Manufacturing leaders and their complex decisions 1.3 Decision-making in manufacturing organizations 1.4 Toward a holistic characterization of company success 1.5 Limitations of previous approaches References Chapter Modeling company success: A novel approach 11 2.1 The evolution of organizational performance measures 11 2.2 A new methodology 16 2.2.1 Taxonomies development and key organizational performance measures: Step 21 2.2.2 Identify existing data and development of new tools: Step 21 2.2.3 Data collection: Step 22 2.2.4 Model development and membership function mapping of company success components: Step 23 2.2.4.1 Analytical hierarchy process 25 2.2.4.2 Weights 26 2.2.4.3 Inconsistency ratio 26 2.2.4.4 Subject matter experts 27 2.2.4.5 Company success index model: Step 27 2.2.4.6 Company success index model validation: Step 27 2.3 Summary 28 References 28 vii viii Contents Chapter Employee morale: The Ferreras model 31 3.1 The evolution of employee morale: Theories and perspectives 33 3.2 Understanding your employees and your organizational culture 34 3.3 Internal and external factors in employee morale 35 3.4 Human capital in manufacturing organizations 36 3.5 The evolution of decision-making on human capital and employee morale 37 3.6 Business ethics 38 3.6.1 Accountability 38 3.6.2 Transparency 38 3.7 The Ferreras theory: A holistic approach to evaluate and measure employee morale 39 3.7.1 Employee engagement 40 3.7.2 Work environment 42 3.8 The Ferreras model: A holistic approach 43 3.9 Weights 45 3.10 Employee morale survey 46 3.11 Contingent valuation: Making investment decisions on human capital 48 3.12 Case example 48 3.12.1 Data collection of qualitative measures 50 3.12.2 Data collection of quantitative measures 52 3.12.3 Employee morale index results 55 3.12.4 Employee morale index model validation 56 3.13 Summary 58 References 59 Chapter Modeling quality using quantitative and qualitative performance measures 61 4.1 The evolution of quality 63 4.2 Understanding quality in manufacturing organizations 65 4.3 Systems thinking 66 4.4 Quality for business leaders 67 4.5 Limitations of quality models, methods, and techniques 69 4.6 Analyzing quality in manufacturing organizations using a holistic approach 70 4.6.1 Customers’ view 71 4.6.2 Quality management and quality control 74 4.7 A holistic quality index model 76 4.8 Weights 77 4.9 Case example 77 4.9.1 Data collection and membership function development 78 4.9.2 Quality index model results 82 4.9.3 Quality index model validation 83 Contents ix 4.10 Summary 84 References 85 Chapter A new model to evaluate and predict ergonomics and safety 87 5.1 The evolution of ergonomics 88 5.2 The history of safety 89 5.3 Human factors: Ergonomics and safety 91 5.4 Ergonomics and safety tools 93 5.5 A holistic ergonomics and safety model 94 5.6 Weights 95 5.7 Case example 96 5.7.1 Data collection and membership function development 96 5.7.2 Ergonomics and safety index model results 102 5.7.3 Ergonomics and safety index model validation 103 5.8 Summary 104 References 106 Chapter Profit, productivity, and efficiency within company success 109 6.1 The evolution of financial measures in manufacturing organizations 109 6.2 Measuring profit 110 6.3 Profit weight 110 6.4 Case example on profit 112 6.4.1 Profit membership function��������������������������������������������������113 6.5 Productivity in manufacturing organizations 116 6.6 Measuring productivity 118 6.7 Productivity weight .119 6.8 Case example on productivity 120 6.8.1 Productivity membership function 120 6.9 Efficiency in manufacturing organizations 122 6.10 Measuring efficiency 123 6.11 Efficiency weight 125 6.12 Case example on efficiency 126 6.12.1 Efficiency membership function 127 6.13 Summary 130 References 130 Chapter A company success index model for manufacturing organizations 133 7.1 Company success index model development 133 7.2 Weights 134 7.3 Company success index model formulation 135 Appendix E: Checklist for a great place to work The purpose of this tool is to assess Employee Morale over your organization Each set of guidelines will address a particular task, and there are four major parts: (1) Basic Terms of Employment meaning company’s compensation policies relating to time and money exchange between the organization and the employees; (2) the Job representing how and when jobs are to be done and who is to them; (3) Workplace Rules; and (4) stake in Success Every category should be scored based on the following scale: Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always Basic terms of employment Fair pay and benefits: a Compare well with similar employers b Square with company’s ability to pay Commitment to job security Commitment to safe and attractive working environment The job Maximizes individual responsibility for how job is done Flexibility about working hours Opportunities for growth: a Promotes from within b Provides training c Recognizes mistakes as part of learning 163 164 Appendix E Workplace rules Reduces social and economic distinctions between management and other employees Right to due process Right to information Right to free speech Right to confront those in authority Right not to be part of the family/team Stake in success Shares rewards from productivity improvements Shares profits Shares ownership Shares recognition NOTE: A great workplace cannot be equated with the presence or absence of a particular set of policies or practices The quality of the relationship between a company and its employees is instrumental for the success of any organization Appendix F: OSHA ergonomic and safety guidelines assessment The purpose of this tool is to assess OSHA Ergonomic and Safety Guidelines over any organization Each set of guidelines will address a particular task, and there are three major parts: (1) program management recommendations for management practices addressing ergonomic hazards in the industry or task; (2) worksite analysis recommendations for worksite/workstation analysis techniques geared to the specific operations that are present in the industry or task; and (3) hazard control recommendations that contain descriptions of specific jobs and detail the hazards associated with the operation, possible approaches to controlling the hazard, and the effectiveness of each control approach To what extent does your ergonomics program address the ergonomic hazards in your industry or task? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always Do you have specific hazards as regular working conditions in your industry or task? (0) Y (1) N (circle correct answer) To what extent does your ergonomics program address the specific control methods that are available for the ergonomic hazards present in your industry? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always 165 166 Appendix F To what extent does your ergonomics program include a mechanism for reporting injuries, symptoms, and hazards which may be related to ergonomics in the workplace? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always Are you responding to these reports? (1) Y (0) N To what extent does your ergonomics program reflect a process for evaluating the nature and causes of injuries which may be related to ergonomics in the workplace? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always Do you have a process for identifying, implementing, and evaluating measures to reduce injuries? (1) Y (0) N Do you have quantitative data or other information demonstrating the program’s provisions effectiveness in reducing the number of ergonomic hazards or the number and severity of workplace injuries related to ergonomics? (1) Y (0) N Are exits properly identified and lighted, and are exit paths clear? Never 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always 0.75 Frequently Always 0.75 Frequently Always 10 Is the emergency lighting operable? Never 0.25 Sometimes 0.5 Regularly 11 Has the fire alarm been tested? Never 0.25 Sometimes 0.5 Regularly 12 Are portable fire extinguishers available? Are extinguishers serviced/tagged annually? Never 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always Appendix F 167 13 Is the sprinkler system operable and tested regularly? Never 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always 0.75 Frequently Always 14 Are combustibles and trash controlled? Not at all 0.25 Sometimes 0.5 Regularly 15 Is lighting protection installed on towers, steeples, or spires? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always 16 Has a licensed electrician inspected the electrical wiring? Never 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always 17 Are state inspection certificates on file and current? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always 18 Is there a preventive maintenance service contract in effect on heating/air-conditioning equipment? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always 19 Is exterior illumination adequate? Are all lights functioning? Not at all 0.25 Sometimes 0.5 Regularly 0.75 Frequently Always Index A Absenteeism, 38, 42 membership function, 53, 54 rate, 49 Accountability, 38 Accuracy, 27 Additive mathematical operands, 76 Advancement opportunities, 43, 51, 52, 157 AHP, see Analytical hierarchy process American National Standards Institute (ANSI), 61, 75, 79, 92 American Society for Quality (ASQ), 61 American Society of Safety Engineers (ASSE), 90 Analytical hierarchy process (AHP), 25–26 ANSI, see American National Standards Institute Appraisal costs, 68, 71 membership function, 81 Appreciation, 42, 159 ASQ, see American Society for Quality ASSE, see American Society of Safety Engineers B Backlog, 120 Balanced scorecard (BSC), 12, 13 Belonging, 41, 155 Belongingness, 33, 41 BLS, see Bureau of Labor Statistics BSC, see Balanced scorecard Budgetability, 14 Bureau of Labor Statistics (BLS), 96 Business ethics, 38 accountability, 38 transparency, 38–39 Business leaders, quality for, 67–69 Business Wire, 73 Butters, Kerry, 40 C Camaraderie, 34, 39 Capacity Utilization, 118 CEI report, see Customer experience impact report Chartered Institute of Ergonomics & Human Factors (CIEHF), 88 Checklist for great place to work, 163–164 CIEHF, see Chartered Institute of Ergonomics & Human Factors Cognitive ergonomics, 92 Commitment, 37, 41, 158 “Common framework”, 12 Company leaders, 31, 68 Company policies and guidelines, 43, 161 Company success, components, data analytics, decision-making in manufacturing organizations, 3–4 framework, 21 holistic characterization, 4–7 limitations, 7–8 manufacturing leaders and complex decisions, 2–3 PwC Strategy, Company success index model, 16, 27, 133 accuracy values, 138 critical success factor variables, 145 data collection, 141 development, 133–134 formulation, 135–136 identifying data collection tools, methods, and techniques, 140–141 169 170 Company success index model (Continued) methodology and approach, 140 model development per company success component, 141–145 taxonomies development/key organizational performance measures, 140 validation, 27–28, 136–140, 146 weights, 134–135 Company success modeling see also Quality modeling AHP, 25–26 data collection, 22–23 evolution of organizational performance measures, 11–16 existing data identification and new tools development, 21–22 inconsistency ratio, 26 levels of management information and decision system, 22 model development and membership function mapping, 23–28 new methodology, 16–28 research methodology, 20 SME sample form, 26, 27 taxonomies development and key organizational performance measures, 21 tools, methods, and techniques, 17–19 weights, 26 Company values, 43, 161 Compensation, see Worker’s compensation (WC) Complex decisions, 2–3 Conformance to specifications, 61 Contingent valuation technique, 46, 48 Continuous improvement movement, 64 Cook, Tim, 74 CoQ model, see “Cost of Quality” model Corporate culture, 34–35 Corporate leaders, 2–3 Corporate strategy, 35 “Cost of Quality” model (CoQ model), 68, 76, 139 Costs due to customer complaints and returns, 71 Costs of corrective action, 71 Crowley, Mark, 32 Culture Audit ©, 34 Customer-based criteria, 61 Customer experience impact report (CEI report), 73 Index Customer loyalty, 70, 158 membership function, 79 Customer satisfaction, 71 membership function, 80 D Data analytics, Data collection, 22–23, 78–82 of qualitative measures, 50–52 of quantitative measures, 52–55 Decision-making in manufacturing organizations, 3–4 processes, Defects, 123, 125 cost, 125, 126 Defects per million (DPM), 65 Delivery, 119 Department of Defense (DOD), 118 Digby, James, 72 Discrimination, 38 Diseases of Workers, 88 Dissatisfied employees, 32 DOD, see Department of Defense Downgrading costs, 71 Downtime cost, 125 DPM, see Defects per million E Economic Control of Quality of Manufactured Products, 75 Economic History Association (EH.net), 91 EDI, see Electronic data interchange Effectiveness, 14 Efficiency, 14; see also Ergonomics and safety case example on, 126 in manufacturing organizations, 122–123 measuring, 123–125 MF, 127–130 performance measures, 126 weight, 125 EFQM, see European Foundation for Quality Management Egyptian pyramids, 74 Electronic data interchange (EDI), 109 Employee engagement, 37, 39, 40–42, 144 Employee morale, 31, 163–164 accuracy values of Ferreras model, 58 business ethics, 38–39 case example, 48–58 Index characterization with metrics or taxonomy, 47 company leaders, 31 contingent valuation, 48 data collection of qualitative measures, 50–52 data collection of quantitative measures, 52–55 dissatisfied employees, 32 employees and organizational culture, 34–35 evolution of, 33–34 evolution of decision-making on human capital and, 37–38 Ferreras model, 43–45 Ferreras model vs gold standard in Plant A and Plant B, 58 Ferreras theory, 39–43 gold standard checklist, 56–57 human capital in manufacturing organizations, 36–37 hygiene factors, 34 index model validation, 56–58 index model weights, 46 index results, 55 internal and external factors in, 35–36 Maslow variables, 33 membership function for manufacturing industry, 50, 52 model, 44, 143 survey, 46, 155–161 total values of Plant A and Plant B, 55 weights, 45 WTP, 51, 53 Empowerment, 42, 159 “Enablers”, 13, 65 Energy, 125 Engineering and Physical Sciences Research Council (EPSRC), 16 Enthusiasm, 41, 157 Ergonomics and safety, 87, 139–140, 142; see also Efficiency case example, 96 data collection and membership function development, 96–102 evolution of ergonomics, 88–89 gold standard values, 105 holistic ergonomics and safety model, 94 human factors, 91–92 index model results, 102–103 index model validation, 103–104 index model weights, 95 171 model vs gold standard values, 105, 106 tools, 93–94 weights, 95 Esteem, 33, 34 European Foundation for Quality Management (EFQM), 13, 64–65 Existing data identification, 21–22 External factors in employee morale, 35–36 External failure costs, 68, 71 membership function, 80 F Federal Reserve Board (FRB), 118 Feigenbaum, Armand, 76 Ferreras model, 43–45, 57 accuracy values of, 58 gold standard in Plant A and Plant B vs., 58 Ferreras theory, 32, 39 employee engagement, 40–42 Employee Morale taxonomy, 40 Herzberg’s hygiene factors, 39 Maslow and Herzberg theories, 39 work environment, 42–43 Financial measures, 11 evolution in manufacturing organizations, 109–110 Financial performance measurements, 11 5S system, 123 Fixed overhead cost, 111 Flexibility, 67 Fortune 500, 4, 49, 77 FRB, see Federal Reserve Board Fuzzy models, 103–104, 138–139 Fuzzy set theory (FST), 15–16, 23, 133, 141–145 G Generally accepted accounting principles (GAAP), 109 Genetic algorithms, Getting Engaged: The New Workplace Loyalty, 40–41 Gold standard checklist, 56–57 Goodnight, James, 35 Great Place to Work, 34, 56 Grimsley, Shawn, 36 Gross domestic product (GDP), 79 “Gut feeling”, 172 H Harvard Business Review, The report, Hassell, David, 36 HCI, see Human–computer interaction Herzberg, Frederick, 33 hygiene factors, 39 theories, 39 HFES, see Human Factors and Ergonomics Society High-risk decisions, Holistic approach, 139 Holistic ergonomics and safety model, 94 Holistic quality index model, 76–77 HR, see Human resource Human capital decision-making evolution on, 37–38 in manufacturing organizations, 36–37 Human–computer interaction (HCI), 89 Human factors, 91–92 Human Factors and Ergonomics Society (HFES), 89 Human–machine interaction, 89 Human resource (HR), 33, 37 100 Best Companies to Work for in America, The, 34 Hygiene factors, 34, 42 I IEA, see International Ergonomics Association Income taxes, 111 Inconsistency ratio, 26 Information Age, 89 Information systems costs, 71 Innovation, 14 Instrument maintenance costs, 71 Integrated Performance Measurement Systems (IPMS), 16 Internal customers, 66 Internal factors in employee morale, 35–36 Internal failure costs, 68, 71 membership function, 81 International Ergonomics Association (IEA), 88 International Organization for Standardization (ISO), 90 Inventories, 123, 125 Involvement, 41 Involving, 156–157 Index IPMS, see Integrated Performance Measurement Systems ISO, see International Organization for Standardization J Japanese products, 63, 64 Job satisfaction, 37 Juran, Joseph, 75–76 Just in Time (JIT), 11, 123 K Kanban technique, 123 Kimberlin, Cecilia, 62 L Labor, 111, 125 Leadership, 69 Lean Manufacturing, 123, 124 Lean Sigma, 123 Legal fees, 111 Linear membership function (Linear MFs), 24, 50 Linear MFs, see Linear membership function Linguistic values, 23 Logistic MFs, 24 Love, 33 Loyalty, 41 M Maintenance seekers, 34 Malcolm Baldrige National Quality Award, 13, 64, 69 Manufacturing businesses, 76 leaders, 2–3 manufacturing-based criteria, 61 Manufacturing organizations decision-making in, 3–4 human capital in, 36–37 quality in, 65–66 Maslow theories, 39 Maslow variables, 33 Material, 111, 125 Mean-time-between-failure (MTBF), 25 Measurement-managed organizations, Membership functions (MFs), 22, 24, 53, 133–134, 136, 138–139 Index appraisal cost, 81 development, 78–82 efficiency, 125, 127–130 external failure cost, 80 internal failure cost, 81 prevention cost, 82 productivity, 120–122 profit, 113–116 sigmoidal, 80 MFs, see Membership functions MindTools, 122 Motion, 123 Motivation, 41, 157–158 Motivators, 33, 34, 40 MTBF, see Mean-time-between-failure My Life and Work, 63 N National Institute for Occupational Safety and Health (NIOSH), 93–94, 101 National Safety Council (NSC), 90 Naval Air Systems Command, 74 Netflix, 73 Neural networks, New tools development, 21–22 Non biased workforce decisions, 37 Nonlinear models, 138 Nonmarket-based valuation method, 48 Nonmeasurement-managed organizations, Normalized average weighting, 25 NSC, see National Safety Council O Occupational Safety and Health Administration (OSHA), 90 Ergonomics and Safety Guidelines Assessment, 104, 165–167 injury and illness membership function, 99, 100 Voluntary safety and Health Program Management Guidelines, 91 Open communication, 42–43, 156 Organizational culture, 34–35 Organizational decisions, 2–3 Organizational ergonomics, 92 Organizational leaders, 64, 68 questionnaire, 140, 147–148 Organizational performance measures, evolution of, 11 financial performance measurements, 11 FST models, 15–16 173 Malcolm Baldrige award, 13 measurement systems, performance areas, 14–15 quantitative and qualitative performance measures, 16 SMART model, 12 OSHA, see Occupational Safety and Health Administration Over-processing, 123 Overproduction, 123 P Pairwise comparisons, 25, 26 Pam’s manufacturing business, 22–23 PE, see Proactive ergonomics Performance measurement questionnaire, 12 Physiological knowledge, 33, 89 Plant manager questionnaire, 140–141, 149–150 Positive engagements, 74 Prevention costs, 68, 71 membership function, 82 Preventive ergonomics, 93 Pride, 34 Principles of Management, 34 Proactive ergonomics (PE), 94, 101 membership function, 101 Probability theory, 23 Process control costs, 71 Process failure costs, 71 Process measurement and control costs, 71 Process owners, 66 Production capability, 125 Production volume, 118–121 Productivity, 14, 26 case example on, 120 in manufacturing organizations, 116–118 measuring, 118 MF, 120–122 performance measures, 119 ratio, 117 weight, 119–120 Product liability costs, 71 Product recall costs and warranty claims, 71 Profit, 26, 49 case example on, 112 measuring, 110 MF, 113–116 174 Profit (Continued) performance measures and metrics for, 112 weight, 110–112 Profitability, 14 Public Contracts Act, 90 PwC Strategy, Q Qualitative measures, data collection of, 50–52 Qualitative performance measures, 16 Quality, 14, 76 assurance, 63 control, 74–76 management, 74–76 planning costs, 71 of work life, 14 Quality analyzing in manufacturing organizations, 70 customers’ view, 71–74 quality categorization structure, 70 quality management and quality control, 74–76 taxonomy, 70 Quality index model, 139 results, 82–83 validation, 83–84 Quality modeling, 61; see also Company success modeling analyzing quality in manufacturing organizations, 70–76 appraisal cost membership function, 81 case example, 77–84 customer loyalty membership function, 79 customer satisfaction membership function, 80 data collection and membership function development, 78–82 evolution, 63–65 external failure cost membership function, 80 holistic quality index model, 76–77 internal failure cost membership function, 81 limitations of quality models, methods, and techniques, 69–70 manufacturing-based criteria, 61 in manufacturing organizations, 65–66 prevention cost membership function, 82 quality for business leaders, 67–69 Index quality index model results, 82–83 quality index model validation, 83–84 quality performance measures and metrics, 78 Six sigma summary table, 65 systems thinking, 66–67 in twenty-first century, 62 weights, 77 Quantitative measures, data collection of, 52–55 Quantitative performance measures, 16 R Rapid entire body assessment (REBA), 93–94 Rapid upper limb assessment (RULA), 93–94 Recognition and rewards, 43, 156 Recycle, 125 Relative Weight Analysis, 37 Replacement cost (RC), 88, 94, 96 membership function, 97 Research and development expenditures, 111–112 Risk assessment methods, 93 S Safety, 33 Congress, 90 regulations, 64 Sales, 111 Scrap and rework costs, 71 SCSB, see Swedish Customer Satisfaction Barometer S-curve MFs, see Sigmoid/logistic MFs Search of Excellence, 34 Security needs, 34 Self-actualization, 33, 34 Self-transcendence, 33 Sigmoidal membership function (Sigmoidal MF), 24, 80, 96, 97, 99, 102 Sigmoid/logistic MFs, 24 Sink and Tuttle approach, 15 Six sigma, 65, 78, 123 Sloser, Joshua, 74 SMART model, see Strategic Measurement Analysis and Reporting Technique model SME, see Society of Manufacturing Engineers Index SMEs, see Subject matter experts Social needs, 34 Social Security Act, 90 Society of Manufacturing Engineers (SME), 91, 134–135 Specifications, 61 Stable process, 67 Statistical quality control movement, 63 Strategic Measurement Analysis and Reporting Technique model (SMART model), 12 Structural Equation Modeling, 37 Supervisory consultation, 43, 160 Suppliers, 120 Swedish Customer Satisfaction Barometer (SCSB), 79 Systems thinking, 66–67 175 V Variable cost, 111 Variable overhead, 111 Viable systems structure, 16 W Talkdesk, 74 Taxonomies, 21 Teamwork, 43, 159 TeleFaction A/S (2009), 72 Test and inspection costs, 71 “Theory of human motivation”, 33 “Time and Motion Studies”, 88 Total quality management (TQM), 11, 64 Total quality practices, 63 Training, 43, 160 Training and general management costs, 71 Transparency, 38–39 Transportation, 123 Trust, 34, 41–42, 158 Trust Index© Employee Survey, 34 Turkish Airlines, 73 Turnover, 42 membership function, 54 rate, 49 Waiting, 123 Washington Industrial Safety and Health Act (WISHA), 94 Washington State Department of Labor and Industries, 93 WC, see Worker’s compensation Weights, 26, 45, 77 White House Office of Consumer Affairs, 62 Williams, David, 42 Willingness to pay (WTP), 46, 50, 139 Wise, Bob, 72 WISHA, see Washington Industrial Safety and Health Act Work-related musculoskeletal disorders (WRMDs), 91 Work environment, 42–43 Worker’s compensation (WC), 43, 49, 90, 96, 160 expenses, 140, 153 factor variable, 102 membership function, 102 Work flexibility, 43, 161 Workforce, 123 environment, 39 planning, 38 World Health Organization, 92 WRMDs, see Work-related musculoskeletal disorders WTP, see Willingness to pay U Z U.S Bureau of Labor Statistics, 52, 54 Zero defects (ZD), 75, 123 T ... new holistic approach that assists manufacturing leaders in measuring company performance systematically using quantitative and qualitative indicators An approach that facilitates the measurement... Cataloging -in- Publication Data Names: Ferreras, Ana, author | Crumpton-Young, Lesia, author Title: Company success in manufacturing organizations : a holistic systems approach / Ana Ferreras, Lesia... each Finally, Chapter presents a holistic company success index model capable of assessing and predicting organizational performance in manufacturing organizations using quantitative and qualitative