Operations Management: An Integrated Approach, 5th Edition

THE SUPPLY CHAIN LINK

Work system design includes job design, methods analysis, work measurement, and compensation. Each of these is critical to successful supply chain management. Job design requires clearly specifying what has to be done, who has to do it, how it should be done, and how it should be measured. Every member of the supply chain needs to have his or her role similarly defined. Methods analysis is used to improve processes and eliminate non-value-adding activities. Such analysis can reduce duplicate efforts among supply chain members. Work measurement is used to develop standards for activities performed by members of the supply chain. Standards for picking and packing materials at warehouses or standards for unloading and loading at crossdocks are critical for coordinating material flow within the supply chain. Using standards to measure job performance is critical to improving supply chain success.