Vocabulary

1. Match the following English words with their Ukrainian equivalents. Use your dictionary if necessary.

a) approach	g) to improve	m) lifespan
b) to evaluate	h) to seek	n) breakdown
c) to achieve	i) precise	о) solution
d) efficiently	j) cheap	р) to aim
e) law	k) to case	q) to contain
f) screw	1) worthwhile
а) гвинт	є) покривати	й) дешевий
б)вартий	ж) досягати	к) ТОЧНИЙ
в) тривалість життя	з) рішення	л) оцінювати
г) покращувати	и)закон	м) аналіз
д) ставити ціль	і) включати в себе	н) ефективно
е) підхід	ї) шукати

Reading

1. Read text 17.

TEXT 17

VALUE ANALYSIS AND ITS STAGES

Value analysis is an approach to evaluating the effectiveness of producing a component or product. It is an exercise designed to answer the question: Can we achieve the same result more efficiently and therefore at a lower cost? The stages in value analysis emphasize the role the different business functions play in the development of a product.

Value analysis is not concerned with a particular product. It is interested in the function that product has for both the business and the customer. For a business manufacturing shelving units the function of a screw is to hold a shelf bracket to the wall; the same screw may also have a decorative function that is important to the customer. By defining the function of the component or product rather than the item itself, value analysis encourages the business to seek alternative methods of performing that function and so improving efficiency and reducing production costs.

Defining the function of the product If the product is a component then this stage should produce a precise statement of what it must do if it is to perform its job correctly .A good definition may immediately suggest more cost effective ways of achieving that function. The definition of a finished good should also take into account the market for which it is designed. A company producing wristwatches for the luxury market might lose the market if they used a cheaper metal casing in an effort to control costs.

Collection of data At this stage the company may only think it knows what the product is. They need detailed information if they are going to evaluate it. This information should include:

• detailed technical specifications of the product.

• marketing information. The existence of similar products, the life expectancy of the product and the data from market research will all have a role to play in the final decision. A major design exercise will not be worthwhile if the product has a limited lifespan. On the other hand value analysis might be used to identify strategies to extend the lifespan of the product.

• a detailed breakdown of costs to indicate the areas it may be advantageous to investigate and also to define the constraints on any changes that might be suggested.

• the technology available to make the product. This should include details of new developments and their possible effects on production costs and quality control.

• the required quality of the product and details of the control procedures used to achieve this level. This relates to the quality required by the market but also to the production processes of the business.

Evaluation It is likely that a number of alternative solutions will be suggested to the same problem. Each solution will then be evaluated against the criteria established by the original product definition.

TEXT 19

STOCK LEVELS

We have already established that it is desirable for a business to keep stocks as low as possible. On the other hand if stocks are too low then there is a danger of production stopping because of a shortfall in materials. A business will have a minimum stock level, sometimes called the buffer, safety or insurance level, below which it will not allow stocks to fall, and a maximum stock level, above which the costs of holding the stock outweigh the advantages of holding it. The minimum and maximum of stock held are relative rather than absolute figures and will depend upon a combination of factors.

Storage space and costs Space used to store materials can be seen as space that could be used for manufacturing. In some businesses there may be a physical shortage of space that puts a clear limit on the amount of stock they can hold safely and without risk of excessive spoilage.

The lead time This is the interval of time between the identification of the need for an order and the availability of that order to the production department. It is not the same as delivery time. Lead time includes ordering, delivery and receiving time. The longer the lead time the higher the minimum level at which stocks will have to be held.

The amount of capital available This will influence the stock level. This does not mean that a successful business will hold a higher level of stocks than a similar but less profitable business. In fact the reverse might be true. Lack of available capital might force a business to hold a lower level of stock than it considers strictly desirable.

The type of stock Perishable goods will be kept in smaller quantities than non- perishable stock to reduce the risk of loss. The 'life' of stock does not depend only on whether it is likely to deteriorate; it also depends on the lifespan of the final product. If the product goes out of fashion the stocks bought in to make it will be useless.

The economic ordering quantity This will determine the amount of stock bought at any one time. Discounts available might offset the costs of storage and encourage a business to raise its minimum stock level.

TEXT 22

WORK STUDY AND ITS STAGES

Work study is a body of (a) that analyze the tasks to be performed

(work measurement and / or motion study), the time that is needed to (b) the

tasks (time study) and the setting of standards for a given task. Work study can:

• increase productivity by (c) unnecessary effort and saving time;

• reduce the risk of injury to a worker and so improve health and safety;

• reduce costs by reducing time lost through absenteeism caused by injury, and wastage caused by bad working practices;

• increase the degree of satisfaction felt by the worker;

• help the personnel function in devising effective training schemes.

Work study can be divided into motion study, time study and establishing standards by which a work can be evaluated.

Motion study is a detailed evaluation of the way in which a task is carried out. Its main objectives are to:

• make the job easier;

• make it safer;

• improve quality;

• increase productivity.

Frederick Taylor was the first person to seriously consider improving productivity - and therefore profit - by teaching the workforce to move efficiently. Workers should

use the minimum amount of (d) in doing a job and so tire less quickly. Since

Taylor's early studies at the beginning of the century a body of knowledge has grown up. This includes such things as an emphasis on smooth and continuous motion, using gravity to help the work, placing tools in the order in which they are used and establishing a rhythm of work.

The expert studying a problem can use film or video to observe movements in

slow motion. The analyst then labels each action. If a worker spends time (e) for a

tool then this suggests that reorganization of the workstation would increase efficiency. Effort in lifting causes tiredness so the use of a machine could increase productivity and reduce the likelihood of accidents.

Once the additional machinery has been (f) , the workstation organized

and the workforce trained, a time study can be undertaken. This allows a time to be set for a particular job and so can help in costing. A time study can be conducted using a stopwatch study, that is the timing of each action, a sample of the time taken to perform a given task over a specified period of time and the use of data from the records of the business.

Stopwatch studies are supposed to be conducted by watching a normal worker operating at a normal speed. This is the main drawback of the method. It is difficult to

decide what is (g) by a normal worker and people find it hard to

(h) naturally when they know they are being observed, particularly if they feel

threatened by the observation.

Work sampling avoids some of the problems associated with the stopwatch method. For much of the time the worker is alone. The analyst takes observations at intervals and analyses the statistics to determine the pattern of work. Although the results are less accurate than the stopwatch method over a period of time they may be more accurate. The person being observed is more likely to relax and work at the normal pace.

Work study has positive (i) but its introduction is often treated with

suspicion. The workforce need to be reassured that any increases in productivity will not lead to a reduction in the number of jobs. Changes in working practice may be resented even when the original practices were both tiring and inefficient.

2. Comprehension check.

Here are some answers about work study. Write the questions.

a)What ?

Work-study is used to analyze the tasks to be performed and the time that is needed to perform the tasks.

b)What ?

Work-study can be divided into motion study, time study and establishing standards.

c)What ?

The main objectives of motion study are to make the job easier and safer, to improve quality and to increase productivity.

d) Who ?

Frederik Taylor was the first person to seriously consider improving productivity and profit by teaching the workforce to move efficiently.

Discussion Work in pairs.

1. State and explain three ways in which work study can improve the efficiency of a business.

1. Give two reasons why a stopwatch study may not give accurate results.

2. Distinguish between stopwatch studies and sampling.