Week 9 Job Design and Work Measurement

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© 2008 Prentice Hall, Inc. 10 – 1

Operat ionsManagement

Chapter 10 – Human Resourcesand Job Design

PowerPoint p resentat ion to accompany

Heizer/Render

Pr inciples o f Operat ions Management, 7e

Operations Management, 9e




Rusty Wallace’s NASCARRacing Team

NASCAR racing became verypopu lar in the 1990s w ith huge

sponso rship and pr ize money High perform ance pi t crews are a

key element o f a successfu l raceteam

Pit crew members can earn$100,000 per year – for chang ingtires!




Rusty Wallace’s NASCARRacing Team

Each posi t ion has very speci f icwork standards

Pit crews are high ly o rganizedand go though r igorous phys icalt raining

Pit stops are videotaped to lookfor imp rovements




Human Resource Strategy

The ob ject ive of a human resou rcestrategy is to manage labo r and

design jobs so peop le are effect ivelyand eff ic ient ly u t i l ized

1. Peop le shou ld be ef fect ively ut il izedw i th in the con straints of o ther

operat ions m anagement decis ions

2. People should have a reasonable qual ity

of work l ife in an atmosphere of mutual

comm i tment and trust




Cons train ts on Human

Resource Strategy

Figure 10.1

HUMANRESOURCESTRATEGY

Produc t strategy• Ski l ls n eeded• Talents n eeded• Materials used• Safety

Schedules• Time of day• Time of year(seasonal)

• Stabi l i ty ofschedules

When

Locat ion strategy• Climate• Temperature• Noise• Light• Air qual i ty

Process strategy• Technology• Machinery andequipment used

• Safety

Individ ual dif ferences• Strength andfat igue

• Informat ionprocess ing andresponse

Who

Layout strategy• Fixed posi t ion• Process• Assembly l ine• Work cel l• Product




Labo r Planning

1. Fo l low demand exact ly

Matches d i rect labo r costs toproduct ion

Incu rs costs in hi r ing and

term inat ion, unemploym entinsu rance, and premium wages

Labo r is treated as a var iable cost

Employment Stabi l i ty Pol ic ies


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Labo r Planning

2. Ho ld employment cons tan t

Maintains trained wo rkfo rce

Minim izes h ir ing, term inat ion , andunemploym ent costs

Emp loyees may be underut i l izeddu r ing slack per iods

Labo r is treated as a f ixed cos t

Employment Stabi l i ty Pol ic ies



Work Schedu les

Standard work s chedule

Five eight-hou r days

Flex-t ime

Al low s emp loyees, w i th in l imi ts, todeterm ine their own schedules

Flexib le work week

Fewer but lon ger days: l ight-assemblyplants

Part-t ime

Fewer, po ss ibly irregular, hours :restaurants



Job Class i f icat ion and

Work Rules Speci fy who can do what

Speci fy when they can do i t

Speci fy under what condi t ions theycan do i t

Often resul t of un ion con tracts

Restr icts f lexib i l ity in ass ignmentsand consequent ly effic iency ofproduct ion



Job Design

Speci fy ing the tasks that const i tutea job fo r an ind iv idual or a group

1. Job spec ial izat ion

2. Job expans ion

3. Psycho log ical componen ts

4. Sel f-d i rected teams

5. Mot ivat ion and incent ive sys tems



Labor Spec ial izat ion

The div is ion o f labo r into unique tasks

Example of job: assembly l ine

First suggested by Adam Sm ith in 17761. Development of dexter ity and fas ter

learning : repeti t ion

2. L es s lo ss of t ime : wouldn’t changing jobs

3. Development of spec ial ized too ls

Later Charles Babbage (1832) addedano ther considerat ion

4. Wages exact ly f i t the requ i red sk i l l



Job Expans ion

Adding more var iety to jobs

In tended to reduce bo redom associatedw ith labo r special izat ion

Job enlargement: add tasks w ith sim i larski l ls to an exist ing job

Job rotat ion: move from one special ized jobto another

Job enr ichment : adds planning and contro lto the job

Emp loyee empowerment: emp loyees acceptrespons ib i l ity for a var iety o f decis ion



Job Enlargement and JobEnrichment

Figure 10.2

Task #3(Loc k pr inted circui tboard into f ixture for

next operation)

Present job(Manual ly insert andsolder six resistors)

Task #2(Adhere labels

to pr intedcircui t b oard)

Enlarged job

Enr iched jobPlanning

(Part icipate in a cros s- funct ion qu ali ty

impro vement team)

Control(Test c ircuits after

assembly)



Psychological Components o f Job Design

Human resourc e strategy requires con siderat ion o f the p sych ologica lcomponents of job des ign

Hawtho rne Studies

In t roduced psycho logy into the work place

The workplace social sys tem and dist inct ro les played b yindiv iduals m ay be more impo r tant than phy sica l factors

Ind ividual di f ferences may be dom inant in what anemplo yee expects for the job and what the emplo yee think sher of his contr ibut ion to the job should be

Hires p eople wi th enthusiasm and empower to excel – fewer com plaints and h igher prof i ts



Job Design Con t inuum

Special ization

Enlargement

Self-directedteams

Empowerment

Enr ichment

Figure 10.3

Job expansion

Increasing

rel iance onemployee’scontr ibut ionandincreasingresponsib i l i tyaccepted by

employee



Self-Directed Teams

Group o f empowered indiv idualswork ing together to reach acommon goal

May be organized fo r long-term orshort-term ob ject ives

Effect ive because

Provide employee empowerment

Ensu re co re job character is t ics

Meet indiv idual ps ychologica l needs



Self-Directed Teams

Ensu re those who have legi t imate

contr ibut ions are on the team Prov ide management support

Ensu re the necessary training

Endo rse clear ob ject ives and goals

Financ ial and non -f inancial rewards

Superv isors mus t release con tro l

To maximize effect iveness, managers should




Benefi ts o f Teams and

Expanded Job Designs Improved qual ity o f work l ife

Improved job satis fact ion

Inc reased mot ivat ion

A l low s employees to accept more

responsib i l i ty Improved produc t iv ity and qual ity

Reduced turnover and absenteeism




Motivat ion and Incen t ive

Systems

Bonuses - cash o r stock op t ions

Prof i t -shar ing - pro f i ts for distr ibu t ion toemployees

Gain shar ing - rewards for improv ements

Incent ive plans - typ ically based on

product ion rates

Know ledge-based sys tems - reward fo rknow ledge or ski l ls




Ergonom ics and the Work

Envi ronment

Ergonom ics is the study of theinterface between man andmachine

Often calledhuman factors

Understanding ergonom icsissues helps to improvehum an performance




Job Design and Keyboards

Figure 10.4




Methods Analys is

Focuses on how task is per formed

Used to analyze

1. Movement of ind iv iduals or mater ial Flow d iagrams and pro cess charts

2. Act iv i ties of human and mach ine andcrew act iv i ty

Act iv i ty c harts

3. Body movemen t

Micro-mo t ion charts




Flow Diagram

Storage bins

Machine 1

Mach . 2

Mach . 3 Mach . 4

From

pressmach. Paint

shop

Welding

Figure 10.5 (a)

Old Method




Storagebins

Machine 1

Machine 2

Machine 3

Machine 4

Frompressmach.

Paintshop

Welding

Flow Diag ram

Figure 10.5 (b)

New method: improved work f low and less s torage and

space




Process Chart




Act iv i ty Chart

Figure 10.6

Two-person Crew do ing an Oi l Change in 12 minutes at

Quick Car Lube




Operat ion Chart

Figure 10.7




The Visual Workp lace

Use low -cost visual devices toshare informat ion qu ick ly andaccurately

Displays and g raphs replacepr intou ts and paperwo rk

Able to provide t imely informat ionin a dynamic environment

System should focus onimprovement





Present the big p icture

Performance

Housekeeping

Visual signals can take many form sand serve many fun ct ions





Visual utensi l h olderencourageshousekeeping

A “3- minute service”clock reminds employeesof the goal

Figure 10.8





Visual sig nals at themachine not i fysupp or t personn el

Visual kanbans reduceinventory and fos ter JIT

Andon

Line/machinestoppage

Parts/maintenanceneeded

Al l systems go

Part A Part B Part C

Reorder

po in t

Figure 10.8





Quanti t ies in bin s ind icate

ongo ing daily requirementsand cl ipboards provideinformat ion on s chedulechanges

Process speci f icat ions andoperat ing p rocedu res areposted in each work area

Figure 10.8




Labo r Standards

Effect ive manpower plann ing isdependent on a know ledge of thelabo r required

Labor s tandards are the amount o ft ime requ ired to perform a job orpart of a job

Accurate labo r standards helpdeterm ine labo r requ irements ,costs, and fai r work




• Timing a sample of a worker’s performance and using

i t to set a standard

• A trained and exper ienced person can establ ish astandard with eight steps:

1. Def ine the task to be s tud ied

2. D iv ide the task in to prec ise elements

3. Dec ide how many t imes to measure the task

4. Time and record elemental times and rat ings of

performance5. Compu te the average observed (actual) t ime

Average observed t im e =

(Sum of the t imes reco rded to perform each element)

Number of observat ion

Time Stud ies

Equation 10-1




6. Determine performance rat ing (work pace) and

then com pute the normal t ime for each elementNormal t ime =

(Average observed time) X (Performance rating facto r)

7. Add the norm al times fo r each element to develop

a total no rmal t ime for th e task8. Compute the standard t im e for al lowances su ch aspersonal needs, unavoidable wo rk delays, and workerfat igue

Standard t ime = Total norm al t ime1-Al low ance facto r

Time Stud ies

Equation 10-2

Equation 10-3




The t ime stud y o f a wo rk operat ion at a Red Lobsterrestaurant yielded an average observed tim e of 4.0m inu tes. The analys ts rate the observed worker at85%. This means the worker performed at 85% ofnorm al when the study was m ade. The f i rm uses a

13% allowance facto r. Red Lobster wants tocom pute the normal t ime and s tandard t ime for th isoperat ion.

The firm needs t o app ly Equ ation s (10-2) and (10-3)

Time Stud ies Example 1




• Solut ion:

Average observed tim e = 4.0 min

Normal t ime = (Average observed t im e) X (Performance rat ing factor)

= (4.0) X (.85)

= 3.4 min

Standard time = Norm al time = 3.4

1 – A llow ance facto r 1 - .13

= 3.90 min

Because the observed work er rated at 85% (slower than average), thenormal time is less than the worker’s 4.0 minute average time.





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Management Science As sociates p romotes i ts managementdevelopment seminars by mail ing thousands of indiv idual lycom posed and typed let ters to var ious f i rms . A t ime stud yhas been conducted on the task of prepar ing let ters formai l ing. On the basis of the fol lowing observat ions,

Management Science Asso ciates wants to develop a t imestandard for this task. The firm’s personal, delay, and fatigueallowance factor is 15%.


Job Element Observation (minutes) Performance

rating

1 2 3 4 5

(A) Compose and type letter 8 10 9 21* 11 120%

(B) Type envelope address 2 3 2 1 3 105%

(C) Stuff, stamp, seal, and sort

envelopes

2 1 5* 2 1 110%




Approach: on ce data have been col lected, theprocedure is to:

1. Delete unusual or nonrecur ring observat ions

2. Compute the average time for each e lement , us ing

equation (10-1)3. Compute the normal t ime fo r each e lement , us ing

equation (10-2)

4. Find the total no rmal t ime

5. Compute the standard t ime, us ing equat ion (10-3)





Solut ion:1.Delete observat ions such as those marked w ith anaster ik (*). These may be due to bu sinessinterrup t ions, etc; they are no t part of the jobelement,but may be personal or delay t ime.

2. Average time for each job element:

Average time fo r A = 8+10+9+11 = 9.5 m in

4

Average time fo r B = 2+3+2+1+3 = 2.2 m in

5

Average time fo r C = 2+1+2+1 = 1.5 m in

4





3. Norm al t ime fo r each job element:Normal t ime for A = (Av erage observed t ime) X (Perform ance rat ing )

= (9.5)(1.2)

= 11.4 m in

Normal tim e fo r B = (2.2)(1.05)

= 2.31 min

Normal tim e fo r C = (1.5)(1.1)

= 1.65 min

Note: Normal t imes are computed fo r each element because theperformance rat ing facto r (work p ace) may vary for each element, as itd id in th is case





4. Add the norm al t imes for each element to f ind the tota lno rmal t ime (the normal t ime for the who le job)

Total normal tim e = 11.40 + 2.31 + 1.65

= 15.36 min

5. Standard t ime for the job :

Standard time = Norm al time = 15.36

1 – A llow ance facto r 1 - .15

= 18.07 min

Thus , 18.07 m inu tes is the t ime standard for th is job .




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