In common language, “materiality” could be replaced with “importance” or “relevance.” In a business setting, however, the word has greater significance; no adequate substitute is available. In this context, materiality is not a binary characteristic, or even a one-dimensional spectrum; instead it lies in a two-dimensional array.
Materiality has been defined in a multitude of ways by numerous organizations. Though these organizations have developed their definitions independently, to serve their own purposes, there is a great deal of overlap in both. Perhaps the simplest and, therefore, most broadly-applicable description of materiality was provided by the GHG Protocol:
“Information is considered to be material if, by its inclusion or exclusion, it can be seen to influence any decisions or actions taken by users of it.”
Recognizing the proliferation and potential risk of divergent definitions, several organizations that develop corporate reporting standards and assessments published a consensus definition in 2016:
“Material information is any information which is reasonably capable of making a difference to the conclusions reasonable stakeholders may draw when reviewing the related information.” (IIRC, GRI, SASB, CDP, CDSB, FASB, IASB/IFRS, ISO)
The consensus definition is still somewhat cryptic, only alluding to the reason for its existence – corporate financial and ESG (Environmental, Social, Governance) reporting. As much can be surmised from the list of signatory organizations as from the definition itself.
The work balance chart is a critical component of a line balancing effort. It is both the graphical representation of the allocation of task time among operators, equipment, and transfers in a manufacturing or service process and a tool used to achieve an equal distribution.
Like other tools discussed in “The Third Degree,” a work balance chart may be referenced by other names in the myriad resources available. It is often called an operator balance chart, a valid moniker if only manual tasks are considered. It is also known as a Yamazumi Board. “Yamazumi” is Japanese for “stack up;” this term immediately makes sense when an example chart is seen, but requires an explanation to every non-Japanese speaker one encounters. Throughout the following presentation, “work balance chart,” or “WBC,” is used to refer to this tool and visual aid. This term is the most intuitive and characterizes the tool’s versatility in analyzing various forms of “work.”
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