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Utilizing Job Task Analysis for Effective ROI Forecasting Premium Content

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Wednesday, January 27, 2010 - by James D. Rethaber

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Purpose

The purpose of this study is to demonstrate how performing a job task analysis (JTA) can be useful in developing an objective and effective ROI forecast.

Background

Texas Grocery* (fictitious name) is an innovative, multi-billion dollar grocery retailer committed to providing the highest levels of customer service and quality of products, while also maintaining low prices and a commitment to the communities it serves. In response to the demand for grocery services in low socioeconomic areas - which are typically underserved - Texas Grocery is introducing a new concept store that provides high quality and highly-discounted items. The area of focus within this new concept store is the bakery.

The bakery will provide fewer items (four items total) than the other bakeries in the traditional Texas Grocery retail stores (more than 20), but will produce significantly more of the four items than the bakeries in the traditional stores. Texas Grocery wants to provide straight-from-the-oven products to the customer in large quantities, at reduced prices, and of the highest quality. Market research has provided a projected production range for two (sandwich rolls and bread) of the four items that will be produced in the bakery (Table 1). The other two items do not require baking, so they are not considered for this study.

The risk management department within Texas Grocery has been tasked with determining if these production goals are feasible and safe with one employee; one proofer, which is a machine that forces the dough to rise; and one double oven for baking the sandwich rolls and the bread. The risk management department has tasked FIT for WORK, an occupational health and safety firm specializing in performance improvement through ergonomics and safety-related training and non-training solutions, with determining if these production goals are feasible, and if not, what will be needed to make these production goals possible.

Process

To determine if these goals are safe and feasible, the performance improvement specialist (PI) from FIT for WORK met with the director of risk management to schedule an observation of a bakery within Texas Grocery that performed these baking processes and with the equipment suggested earlier. Based on this meeting, the PI brainstormed to determine what would be needed to complete this project. The brainstorming session concluded with a list of questions that would need to be answered while performing the onsite observations:

  1. What processes, from start to finish, are required to produce the sandwich rolls and bread?
  2. What is the time requirement for each process to produce the sandwich rolls and bread?
  3. What equipment is necessary to perform these processes?
  4. What other variables affect the production of these two items?
  5. What equipment will the PI need to accurately collect the information necessary for completing this study?

Methodology

Due to the nature of the request from the director of risk management, the PI determined that a job-task analysis (JTA) would be the most efficient method for determining the safety and feasibility of the production goals. Judith A. Hale, author of The Performance Consultant's Fieldbook, describes a job-task analysis as "a formal study to identify what people do; what they have to know to do it; what they use to do it, including equipment, materials, systems, and information; and under what conditions they do it.". This will provide the PI with a better understanding of the entire baking process and any unforeseen variables that may need to be explored.

Data Collection

Darlene M. Van Tiem, James L. Moseley, and Joan Conway Dessinger (2001) recommend utilizing a variety of data collection methodologies while performing job-task analyses. These methodologies include questionnaires and surveys, interviews, observations, diaries and logs, and focus groups. The data collection procedures utilized by the PI for this study were:

  • interviews of the bakery manager and the bakers
  • review of the standard operating procedures (SOPs) for baking each product
  • observations of all the processes involved within the baking process.

It is important to note that each data collection methodology served as a progression from one method to the next. For example, the results of the interviews led the PI to review the SOPs for each baking product. Then, based on the review of the SOP, the PI determined that observations of all the processes involved within the baking process needed to be performed.

The interviews of the bakery manager and the bakers were performed to gather experiential information necessary to complete this study. These interviews provided the PI with information such as the location of the ingredients for making the sandwich rolls and the bread, what the most challenging aspect of performing the baking process is, and possible solutions to increasing the performance of the bakery. Based on these interviews, the PI discovered that Texas Grocery has a standard operating procedure (SOP) for each product produced in the bakery.

The review of the SOPs for baking each product provided the PI with standardized information such as the steps necessary for baking each product and the time requirements for mixing, proofing, and baking each product. These SOPs are utilized in every bakery within Texas Grocery to ensure that the same high quality product is produced at each bakery within Texas Grocery. Based on a thorough review of the SOP for each product, the PI determined that a videotaped observation of the entire baking process was necessary.

Videotaped observations were performed for a multitude of reasons. First, videotaped observations are cost-effective for both the PI and the client. Videotaped observations allow the PI to review the job tasks multiple times without having to repeat the onsite observations. Second, videotaped observations provide objective information that can be utilized during the analysis, recommendations, and presentation of findings. Also, videotaped observations utilize timers, which are valuable when analyzing the time necessary for completing each step of the baking process. Based on the videotaped observations, the PI was able to complete the job task analysis, determine the feasibility of the production goals, and make corresponding recommendations.

Results

Based on the results of the job task analysis, the PI determined that the production goals were not feasible (Table 2).

The PI determined that the following variables will prevent the bakery at the new concept store from reaching the projected production goals:

  1. The layout of the bakery is not designed for the baker to work efficiently - the baker must walk to other departments to obtain items necessary for baking such as ice and the current layout requires the baker to lift, carry, and push or pull items multiple times.
  2. The double oven and proofer are not able to accommodate and produce the quantity of sandwich rolls and bread necessary for reaching the production goals.
  3. Other processes - such as customer service - detract from the time that the baker can devote to performing all of the baking processes.

Recommendations

To reach these production goals and to reduce the time necessary to produce these items, the PI recommended that the design of the bakery should be configured utilizing lean manufacturing and ergonomic-related methodologies (for example, an additional proofer should be added and a full-time baker's assistant should be added to perform customer service and decorating processes).

Lean ergonomic design

The current layout of the bakery depicts a layout in which the bakery employee will have to make non-linear movements (for example, "star" pattern to perform all of the essential processes within the baking process. Based on interviews and observations, it was determined that stocking the bins outside of the bakery and performing customer service while on the retail floor - for example, bagging sandwich rolls for customers - were major time-consuming processes that could be avoided via design improvements. Although customer service is an important concept, it is considered to be a non value-added component within the bakery process since it detracts from time spent performing baking duties.

Justification for appropriate and adequate equipment

The current design depicts a layout without a dedicated ice machine within the bakery. If a bakery employee must leave the bakery to obtain ice, the chances of being side-tracked to perform customer service and items in the oven burning (waste due to shrink) are increased.

Although customer service is an important concept, it is considered to be a non value-added component within the bakery process since it detracts from time spent performing baking duties. The most time-consuming process within the entire baking process is the proofing of the dough. With two proofers that accommodate three carts each (six total per cycle); the amount of proofing time will be reduced by one-half.

Based on the interviews with the bakers within the comparable stores, another production-limiting factor is the number of baker's racks and pans. An adequate supply of baker's racks to account for preparation, baking, proofing, and displaying will help to increase productivity by reducing down-time (waste).

Addition of a full-time baker's assistant

A full-time baker's assistant should:

  • provide customer service
  • fill or replenish the bakery display areas
  • receive the bakery goods from the delivery truck(s).

Based on the data collection, the most time-consuming non value-added processes within the baking process (besides the proofer) are the above-mentioned processes. By utilizing a full-time baker's assistant, the baker will be able to dedicate all of his/her time to the baking process. This will help meet production goals, as well as to guarantee the overall quality of the product.

Forecasting ROI

Jack J. Phillips and Lizette Ziga (2008) describe the importance of forecasting ROI as a means to reduce uncertainty for expensive programs and projects, when there are high risks and uncertainty, and as a comparison to post-implementation results. The recommendations for this project each have an associated expense and all parties involved in this project are interested in how the recommendations will affect the production goals.

Since the performance improvement specialist was not supplied with proprietary information such as the procurement cost of the equipment, manpower costs per hour, or units of product sold per hour, a true ROI could not be forecasted. However, the forecasted ROI was expressed in units of time and provided to the client for utilization within internal communiqu. By providing the ROI forecast in terms of units of time, the PI is providing objective, quantifiable information gathered during the job task analysis. This helps to provide additional validity to the findings and recommendations of the PI (Creswell, 2008).

Conclusion

By utilizing a job-task analysis, various methods of data collection, ergonomics, and Lean manufacturing, the PI was able to determine that the projected production goals with the proposed equipment and manpower were not feasible. The specialist also was able to utilize the same methodologies to recommend the design, manpower, and equipment needs of the new bakery. To justify these recommendations, an ROI forecast was performed.

Although the client did not provide the performance improvement specialist with proprietary information such as the procurement cost of the equipment, manpower costs per hour, or units of product sold per hour, a forecasted ROI was provided based on time-saving units. These time-saving units were calculated based on the observations, data collection, and analyses performed during the job task analyses of the comparable bakery. The time-saving units and justification were provided to the client for utilization within internal communiqu.

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James D. Rethaber is the director of ergonomic onsite analysis with FIT for WORK, a San Antonio, Texas-based occupational health and safety consulting firm specializing in decreasing workers' compensation claims and expenditures through ergonomic and safety training and non-training solutions. Rethaber is a PhD candidate in the training & performance improvement specialization at Capella University; jamesrethaber@wellworkforce.com .

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References

Creswell, J.W. (2008). Educational research: Planning, conducting, and evaluating quantitative and qualitative research (3rd ed.). Upper Saddle River, NJ: Pearson Education, Inc.

Hale, J.A. (2006). Certification. In J.A. Pershing (Ed.), Handbook of human performance technology (3rd ed., pp. 1008-1023). San Francisco: Pfeiffer.

Phillips, J.J. & Ziga, L. (2008). Costs and ROI: Evaluating at the ultimate level. San

Francisco: Pfeiffer.

Van Tiem, D.M., Moseley, J.L., & Dessinger, J.C. (2001). Performance improvement interventions: Enhancing people, processes, and organizations through performance technology. Silver Spring, MD: International Society for Performance Improvement.

Utilizing Job Task Analysis for Effective ROI Forecasting

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