More Related Content Similar to Heizer om10 ch10-work design (20) Heizer om10 ch10-work design1. 10/16/2010
Human Resources, Job
10 Design, and Work
Measurement Global Company Profile: Rusty
Outline
Wallace’s NASCAR Racing Team
Human Resource Strategy for
Competitive Advantage
PowerPoint presentation to accompany
Heizer and Render Constraints on Human Resource Strategy
Operations Management, 10e
Principles of Operations Management, 8e Labor Planning
PowerPoint slides by Jeff Heyl Employment-Stability Policies
Work Schedules
Job Classifications and Work Rules
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Outline – Continued Outline – Continued
Job Design Methods Analysis
Labor Specialization The Visual Workplace
Job Expansion Labor Standards
Psychological Components of Job
Historical Experience
Hi i lE i
Design
Time Studies
Self-Directed Teams
Predetermined Time Standards
Motivation and Incentive Systems
Work Sampling
Ergonomics and the Work
Environment Ethics
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Learning Objectives Learning Objectives
When you complete this chapter you When you complete this chapter you
should be able to: should be able to:
1. Describe labor planning policies 5. Identify four ways of establishing
labor standards
2. Identify the major issues in job design
6. Compute the normal and standard
3. Identify major ergonomic and work times in a time study
environment issues
7. Find the proper sample size for a time
4. Use the tools of methods analysis study
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Rusty Wallace’s NASCAR Rusty Wallace’s NASCAR
Racing Team Racing Team
NASCAR racing became very Each position has very specific
popular in the 1990s with huge work standards
sponsorship and prize money
Pit crews are highly organized
High performance pit crews are a and go though rigorous physical
key element of a successful race training
team
Pit stops are videotaped to look
Pit crew members can earn for improvements
$100,000 per year – for changing
tires!
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Rusty Wallace’s NASCAR
Racing Team
Human Resource Strategy
The objective of a human resource
strategy is to manage labor and
design jobs so people are effectively
and efficiently utilized
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Constraints on Human
Human Resource Strategy Resource Strategy
Product strategy Process strategy
1. People should be effectively utilized • Skills needed • Technology
• Talents needed • Machinery and
within the constraints of other • Materials used equipment used
• Safety
operations management decisions • Safety
2.
2 People should have a reasonable quality Schedules
• Time of day
Individual differences
When HUMAN Who • Strength and
of work life in an atmosphere of mutual • Time of year
RESOURCE
fatigue
(seasonal) • Information
commitment and trust • Stability of STRATEGY processing and
schedules response
Location strategy Layout strategy
• Climate • Fixed position
• Temperature • Process
• Noise • Assembly line
• Light • Work cell
• Air quality • Product
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Figure 10.1 10 - 12
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Labor Planning Labor Planning
Employment Stability Policies Employment Stability Policies
1. Follow demand exactly 2. Hold employment constant
Matches direct labor costs to Maintains trained workforce
production Minimizes hiring, termination, and
Incurs costs in hiring and unemployment costs
termination, unemployment Employees may be underutilized
insurance, and premium wages during slack periods
Labor is treated as a variable cost Labor is treated as a fixed cost
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Work Schedules Job Classification and
Work Rules
Standard work schedule
Five eight-hour days Specify who can do what
Flex-time Specify when they can do it
Allows employees, within limits, to Specify under what conditions
determine their own schedules
they can do it
Flexible work week
Fewer but longer days
Often result of union contracts
Part-time Restricts flexibility in assignments
Fewer, possibly irregular, hours
and consequently efficiency of
production
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Job Design Labor Specialization
Specifying the tasks that The division of labor into unique tasks
constitute a job for an individual
First suggested by Adam Smith in 1776
or a group
1. Development of dexterity
1.
1 Job specialization
2. Less loss of time
2. Job expansion 3. Development of specialized tools
3. Psychological components Later Charles Babbage (1832) added
4. Self-directed teams another consideration
5. Motivation and incentive systems 1. Wages exactly fit the required skill
required
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Job Expansion Job Enlargement
Enriched job
Adding more variety to jobs Planning
(Participate in a cross-
function quality
Intended to reduce boredom improvement team)
associated with labor specialization
Enlarged job
Job enlargement Task #3 Present job Task #2
(Lock printed circuit (Manually insert and (Adhere labels
Job rotation board into fixture for
next operation)
solder six resistors) to printed
circuit board)
Job enrichment
Employee empowerment Control
(Test circuits after
assembly)
Figure 10.2
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Psychological Components Hawthorne Studies
of Job Design
They studied light levels, but discovered
Human resource strategy requires productivity improvement was
independent from lighting levels
consideration of the psychological
components Introduced psychology into the workplace
p y gy p
of job design The workplace social system and distinct
roles played by individuals may be more
important than physical factors
Individual differences may be dominant in
job expectation and contribution
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Core Job Characteristics Job Design Continuum
Self-directed
Jobs should include the following teams
characteristics
Empowerment
ection
1. Skill variety
Self-dire
Enrichment
2. Job identity
3. Job significance Enlargement
4. Autonomy
Specialization
5. Feedback Job expansion
Figure 10.3
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Self-
Self-Directed Teams Self-
Self-Directed Teams
Group of empowered individuals To maximize effectiveness, managers should
working together to reach a
common goal Ensure those who have legitimate
contributions are on the team
May be organized for long-term or
short-term objectives Provide management support
P id t t
Ensure the necessary training
Effective because
Endorse clear objectives and goals
Provide employee empowerment
Financial and non-financial rewards
Ensure core job characteristics
Meet individual psychological needs Supervisors must release control
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Benefits of Teams and Limitations of Job
Expanded Job Designs Expansion
Improved quality of work life
1. Higher capital cost
Improved job satisfaction
2. Individuals may p
y prefer simple jobs
p j
Increased motivation
I d i i
3. Higher wages rates for greater skills
Allows employees to accept more 4. Smaller labor pool
responsibility
5. Higher training costs
Improved productivity and quality
Reduced turnover and absenteeism
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Limitations of Job Motivation and Incentive
Expansion Systems
Bonuses - cash or stock options
1. Higher capital cost Profit-sharing - profits for distribution to
2. Individuals may p
y prefer simple jobs
p j employees
3. Higher wages rates for greater skills Gain sharing - rewards for
improvements
4. Smaller labor pool
Incentive plans - typically based on
5. Higher training costs production rates
Knowledge-based systems - reward for
knowledge or skills
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Ergonomics and the Work Ergonomics and Work
Environment Methods
Ergonomics is the study of the Feedback to operators
interface between man and The work
machine environment
Often called Illumination
human factors Noise
Operator input Temperature
to machines
Humidity
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Recommended Levels of Levels of Illumination
Illumination Task Condition Type of Task Illumination Type of
or Area Level Illumination
Small detail, Sewing, inspecting 100 Overhead
extreme dark materials ceiling lights
accuracy and desk lamp
Normal detail, Reading, parts 20-50 Overhead
prolonged assembly, ceiling lights
periods general office
work
Good contrast, Recreational 5-10 Overhead
fairly large facilities ceiling lights
objects
Large objects Restaurants, 2-5 Overhead
stairways, ceiling lights
warehouses
Figure 10.4A
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Decibel Levels Methods Analysis
Focuses on how task is performed
Used to analyze
1. Movement of individuals or material
Flow diagrams and process charts
2. Activities of human and machine
and crew activity
Activity charts
3. Body movement
Operations charts
Table 10.4B
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Flow Diagram Flow Diagram
Welding
Machine 4 Welding
From
Machine 3
Storage bins
p
press
mach. Paint
P i t Paint
P i t
shop Machine 2 shop
Mach. 3 Mach. 4
Machine 1
Machine 1 From
press Storage
mach. bins
Mach. 2
Figure 10.5 (a) Figure 10.5 (b)
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Activity Chart
Process
Chart
Figure 10.5 (c)
Figure 10.6
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Operation Chart The Visual Workplace
Use low-cost visual devices to
share information quickly and
accurately
Displays and graphs replace
p y g p p
printouts and paperwork
Able to provide timely information
in a dynamic environment
System should focus on
improvement
Figure 10.7
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The Visual Workplace The Visual Workplace
Visual utensil holder A “3-minute service”
Visual signals can take many forms encourages
housekeeping
clock reminds employees
of the goal
and serve many functions
Present the big picture
Performance
Housekeeping
Figure 10.8
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The Visual Workplace The Visual Workplace
Visual signals at the Visual kanbans reduce
machine notify inventory and foster JIT
support personnel
Reorder
Line/machine point
stoppage
Parts/
maintenance
needed
Quantities in bins indicate
ongoing daily requirements
All systems go and clipboards provide
information on schedule Process specifications and
Part A Part B Part C operating procedures are
changes
Andon posted in each work area
Figure 10.8 Figure 10.8
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Labor Standards Labor Standards
Effective manpower planning is Started early in the 20th century
dependent on a knowledge of the Important to both manufacturing
labor required and service organizations
Labor standards are the amount Necessary f d t
N for determining
i i
of time required to perform a job staffing requirements
or part of a job
Important to labor incentive
Accurate labor standards help systems
determine labor requirements,
costs, and fair work
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Meaningful Standards Help Labor Standards
Determine
1. Labor content of items produced May be set in four ways:
2. Staffing needs
p
1. Historical experience
3.
3 Cost and time estimates
2. Time studies
4. Crew size and work balance
3. Predetermined time standards
5. Expected production
4. Work sampling
6. Basis of wage incentive plans
7. Efficiency of employees
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Historical Experience Time Studies
How the task was performed last
time Involves timing a sample of a
worker’s performance and using
Easy and inexpensive it to set a standard
Data available from production Requires trained and experienced
records or time cards observers
Data is not objective and may be Cannot be set before the work is
inaccurate performed
Not recommended
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Time Studies Time Studies
5. Compute average observed time
1. Define the task to be studied
Sum of the times recorded
2. Divide the task into precise Average to perform each element
observed =
elements time Number of observations
3. Decide how many times to
measure the task 6. Determine performance rating
and normal time
4. Time and record element times and
Average
rating of performance Normal time = observed x
Performance
rating factor
time
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Time Studies Rest Allowances
Personal time allowance
7. Add the normal times for each
4% - 7% of total time for use of
element to develop the total normal restroom, water fountain, etc.
time for the task
Delay allowance
8. Compute the standard time
Based upon actual delays that occur
Total normal time Fatigue allowance
Standard time =
1 - Allowance factor Based on our knowledge of human
energy expenditure
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Rest Allowances Rest Allowances
1. Constant allowance (C) Use of force or muscular energy in
(A) Personal allowance ……………... 5 lifting, pulling, pushing
(B) Basic fatigue allowance ………… 4 Weight lifted (pounds)
2. Variable allowances: 20 …………………………………… 3
(A) Standing allowance ……………… 2 40……………………………………. 9
40
(B) Abnormal position 60……………………………………. 17
(i) Awkward (bending) ………… 2 (D) Bad light:
(ii) Very awkward (lying, (i) Well below recommended…. 2
stretching) …………………… 7 (ii) Quite inadequate……………. 5
Table 10.1 Figure 10.1
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Rest Allowances Rest Allowances
(E) Atmospheric conditions (H) Mental strain:
(heat and humidity) …………… 0-10 (i) Complex or wide span
(F) Close attention: of attention.…………………….. 4
(i) Fine or exacting……………….. 2 (ii) Very complex………………….. 8
(ii) Very fine or very exacting…… 5 (I) Tediousness:
(G) Noise level: (i) Tedious…………..……………… 2
(i) Intermittent—loud…………….. 2 (ii) Very tedious.…………………… 5
(ii) Intermittent—very loud
or high-pitched………………... 5
Figure 10.1 Figure 10.1
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Time Study Example 1 Time Study Example 2
Average observed time = 4.0 minutes Allowance factor = 15%
Worker rating = 85% Cycle Observed (in minutes)
Allowance factor = 13% Performance
Job Element 1 2 3 4 5 Rating
(A) Compose and type letter 8 10 9 21* 11 120%
Normal time = (Average observed time) x (Rating factor)
(B) Type envelope address 2 3 2 1 3 105%
= (4.0)(.85) (C) Stuff, stamp, seal, and 2 1 5* 2 1 110%
= 3.4 minutes sort envelopes
1. Delete unusual or nonrecurring observations (marked with *)
Normal time 3.4 3.4 2. Compute average times for each element
Standard time = = =
1 - Allowance factor 1 - .13 .87 Average time for A = (8 + 10 + 9 + 11)/4 = 9.5 minutes
Average time for B = (2 + 3 + 2 + 1 + 3)/5 = 2.2 minutes
= 3.9 minutes
Average time for C = (2 + 1 + 2 + 1)/4 = 1.5 minutes
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Time Study Example 2 Time Study Example 2
3. Compute the normal time for each element 5. Compute the standard time for the job
Normal time = (Average observed time) x (Rating) Total normal time
Standard time =
1 - Allowance factor
Normal time for A = (9.5)(1.2) = 11.4 minutes
Normal time for B = (2.2)(1.05) = 2.31 minutes 15.36
Normal time for C = (1.5)(1.10) = 1.65 minutes = = 18.07 minutes
1 - .15
4. Add the normal times to find the total normal time
Total normal time = 11.40 + 2.31 + 1.65 = 15.36 minutes
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Determine Sample Size Determine Sample Size
2
zs
1. How accurate we want to be Required sample size = n =
hx
2. The desired level of confidence where h = accuracy level (acceptable error)
3. How much variation exists within
3 H h i ti i t ithi desired in percent of the job element
expressed as a decimal
the job elements z = number of standard deviations required
for the desired level of confidence
s = standard deviation of the initial sample
x = mean of the initial sample
n = required sample size
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Determine Sample Size Time Study Example 3
2 Desired accuracy with 5%
Common z Values zs Confidence level = 95%
Required sample size = n =
hx Sample standard deviation = 1.0
Desired z Value
Confidence
Sample mean = 3.00
(standard deviation required for
where h =(%)
accuracy level (acceptable error)
desired level of confidence))
desired in percent of the job element h = .05 x = 3.00 s = 1.0
90.0 1.65 z = 1.96 (from Table S10.1 or Appendix I)
expressed as a decimal
z =95.0
number of standard1.96 deviations required zs
2
95.45 the desired level2.00confidence
for of n=
hx
s =99.0 2.58
standard deviation of the initial sample
99.73 3.00 2
x = mean of the initial sample 1.96 x 1.0
n= = 170.74 ≈ 171
n = required sample size Table 10.2 .05 x 3
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Time Study Example 3 New Tools
Variations With PDA software, you can study
If desired accuracy h is expressed as an absolute elements, time, performance rate, and
amount, substitute e for hx, where e is the statistical confidence intervals can be
absolute amount of acceptable error created,
zs
2
edited,,
n= managed,
e
and logged
When the standard deviation s is not provided,
it must be computed
Reduces or
eliminates
∑(xi - x)2 ∑(Each sample observation - x)2 the need
s= = for data entry
n-1 Number in sample - 1
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Predetermined Time MTM Table
Standards
Divide manual work into small basic
elements that have established times
Can be done in a laboratory away from
the t l
th actual production operation
d ti ti
Can be set before
the work is actually
performed
No performance
ratings are necessary
Figure 10.9
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MTM Example Work Sampling
Weight - less than 2 pounds Estimates percent of time a worker
Conditions of GET - easy
Place accuracy - approximate
spends on various tasks
Distance range - 8 to 20 inches
Requires random observations to
Element Description Element Time record worker activity
Get tube from rack AA2 35
Uncap, place on counter AA2 35 Determines how employees allocate
Get centrifuge tube, place at sample table AD2 45 their time
Pour (3 seconds) PT 83
Place tubes in rack (simo) PC2 40
Can be used to set staffing levels,
Total TMU 238 reassign duties, estimate costs, and
.0006 x 238 = Total standard minutes = .14 set delay allowances
Table 10.4
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Work Sampling Work Sampling
1. Take a preliminary sample to obtain Determining the sample size
estimates of parameter values
2. Compute the sample size required z2 p(1 - p)
n=
h2
3. Prepare a schedule for random
3 P h d l f d
observations at appropriate times where n = required sample size
z = standard normal deviate for
4. Observe and record worker activities desired confidence level
p = estimated value of sample
5. Determine how workers spend their proportion
time h = acceptable error level in percent
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Work Sampling Example Work Sampling Example
No. of
Wants employees idle 25% of the time Observations Activity
Sample should be accurate within 3% 485 On the phone or meeting with a welfare client
Wants to have 95.45% confidence in the results 126 Idle
z2 p(1 - p) 62 Personal time
n= 23 Discussions with supervisor
h2
137 Filing, meeting, and computer data entry
where n = required sample size
z = 2 for a 95.45% confidence level 833
p = estimate of idle proportion = 25% = .25
h = acceptable error of 3% = .03 All but idle and personal time are work related
Percentage idle time = (126 + 62)/833 = 22.6%
(2)2 (.25)(.75)
n= = 833 observations Since this is less than the target value of 25%,
(.03)2 the workload needs to be adjusted
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Work Sampling Time Work Sampling Time
Studies Studies
Salespeople Startup/exercise
Assembly-Line 3%
Employees
Breaks and lunch
Sales in Travel 10%
person 20%
20% Dead time
Telephone
T l h
sales Paperwork between tasks
12% 17% 13%
Productive Unscheduled tasks
Lunch and work
personal and downtime
67% 4%
10%
Telephone Cleanup
within firm Meetings 3%
13% and other
8%
Figure 10.10 Figure 10.10
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Work Sampling Work Sampling
Advantages of work sampling
Less expensive than time study Disadvantages of work sampling
Observers need little training Does not divide work elements as
completely as time study
Studies can be delayed or interrupted
with little impact on results Can yield biased results if observer
does not follow random pattern
Worker has little
chance to affect Less accurate, especially when
results job element times are short
Less intrusive
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Ethics and the Work
Environment
Fairness, equity, and ethics are
important constraints of job design
Important issues may relate to equal
opportunity, equal pay for equal All rights reserved. No part of this publication may be reproduced, stored in a retrieval
work, and safe working conditions system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
Helpful to work with government
agencies, trade unions, insurers,
and employees
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