1. 7-1
Design of Work Systems
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 7-2
Design of Work Systems
Chapter 7
Design of
Work Systems
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 7-3
Design of Work Systems
Job Design
• Job design involves specifying the
content and methods of job
– What will be done
– Who will do the job
– How the job will bob will be done
– Where the job will be done
– Ergonomics
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

4. 7-4
Design of Work Systems
Design of Work Systems
• Specialization
• Behavioural Approaches to Job Design
• Teams
• Methods Analysis
• Motions Study
• Working conditions
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

5. 7-5
Design of Work Systems
Job Design Success
Successful Job Design must be:
• Carried out by experienced personnel with
the necessary training and background
• Consistent with the goals of the
organization
• In written form
• Understood and agreed to by both
management and employees
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

6. 7-6
Design of Work Systems
Specialization in Business: Advantages
For Management:
For Labour:
1. Simplifies training 1. Low education and
2. High productivity
3. Low wage costs
skill requirements
2. Minimum
responsibilities
3. Little mental effort
needed
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

7. 7-7
Design of Work Systems
Disadvantages
For Management:
For Labour:
1. Difficult to motivate
quality
1. Monotonous work
2. Limited opportunities
for advancement
2. Worker dissatisfaction,
possibly resulting in
3. Little control over work
absenteeism, high
4. Little opportunity for
turnover, disruptive
self-fulfillment
tactics, poor attention
to quality
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

8. 7-8
Design of Work Systems
Behavioural Approaches to Job Design
• Job Enlargement
– Giving a worker a larger portion of the
total task by horizontal loading
• Job Rotation
– Workers periodically exchange jobs
• Job Enrichment
– Increasing responsibility for planning and
coordination tasks, by vertical loading
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

9. 7-9
Design of Work Systems
Methods Analysis
The need for methods analysis can come
from a number of different sources:
• Changes in tools and equipment
• Changes in product design
or new products
• Changes in materials or procedures
• Other factors (e.g. accidents, quality
problems)
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

10. 7-10
Design of Work Systems
ge
Stor
a
De l
ay
n
ect
io
e nt
Ins
p
Details of Method
vem
ANALYST PAGE
Job Requisition of petty cash D. Kolb 1 of 2
Mo
FLOW PROCESS CHART
Op
era
tion
Figure 7-2
Requisition made by department head
Put in “pick-up” basket
To accounting department
Account and signature verified
Amount approved by treasurer
Amount counted by cashier
Amount recorded by bookkeeper
Petty cash sealed in envelope
Petty cash carried to department
Petty cash checked against requisition
Receipt signed
Petty cash stored in safety box
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

11. 7-11
Design of Work Systems
Motion Study
Motion study is the systematic
study of the human motions used
to perform an operation.
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

12. 7-12
Design of Work Systems
Motion Study Techniques
• Motion study principles - guidelines for
designing motion-efficient work procedures
• Analysis of therbligs - basic elemental
motions into which a job can be broken
down
• Micromotion study - use of motion pictures
and slow motion to study motions that
otherwise would be too rapid to analyze
• Charts
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

13. 7-13
Design of Work Systems
Developing Work Methods
•
•
•
•
Eliminate unnecessary motions
Combine activities
Reduce fatigue
Improve the arrangement of the
workplace
• Improve the design of tools and
equipment
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

14. 7-14
Design of Work Systems
Working Conditions
Temperature & Humidity
Ventilation
Illumination
Colour
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

15. 7-15
Design of Work Systems
Working Conditions (cont’d)
Noise & Vibration
Work Breaks
Safety
Causes of Accidents
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

16. 7-16
Design of Work Systems
Work Measurement
• Stopwatch Time Study
• Standard Elemental Times
• Predetermined Time
Standards
• Work Sampling
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

17. 7-17
Design of Work Systems
Compensation
• Individual Incentive Plans
• Group Incentive Plans
• Knowledge-Based Pay
System
• Management
Compensation
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

18. 7-18
Design of Work Systems
Form of Incentive Plan
• Accurate
• Easy to apply
• Consistent
• Easy to understand
• Fair
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

19. 7-19
Design of Work Systems
Group Incentive Plans
• Scanlon Plan
– Encourage reductions in labour costs
• Kaiser Plan
– Committees suggest ways of reducing
costs
• Lincoln Plan
– Profit sharing, job enlargement, and
participative management
• Kodak Plan
– Wages/bonus related to profits
McGraw-Hill Ryerson
Operations Management, 2nd Canadian Edition, by Stevenson & Hojati
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.