heizer om10 ch10-work design

10/16/2010

1

1010 Human Resources, Job Design, and Work

Measurement

Human Resources, Job Design, and Work

Measurement

10 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall

PowerPoint presentation to accompany PowerPoint presentation to accompany Heizer and Render Heizer and Render Operations Management, 10e Operations Management, 10e Principles of Operations Management, 8ePrinciples of Operations Management, 8e

PowerPoint slides by Jeff Heyl

OutlineOutlineGlobal Company Profile: Rusty Wallace’s NASCAR Racing TeamHuman Resource Strategy for Competitive Advantage


Constraints on Human Resource Strategy

Labor PlanningEmployment-Stability PoliciesWork SchedulesJob Classifications and Work Rules

Outline Outline –– ContinuedContinuedJob Design

Labor SpecializationJob ExpansionPsychological Components of Job


Psychological Components of Job DesignSelf-Directed TeamsMotivation and Incentive Systems

Ergonomics and the Work Environment

Outline Outline –– ContinuedContinuedMethods AnalysisThe Visual WorkplaceLabor Standards

Hi i l E i


Historical ExperienceTime StudiesPredetermined Time StandardsWork Sampling

Ethics

Learning ObjectivesLearning ObjectivesWhen you complete this chapter you When you complete this chapter you should be able to:should be able to:

1. Describe labor planning policies


2. Identify the major issues in job design3. Identify major ergonomic and work

environment issues4. Use the tools of methods analysis

Learning ObjectivesLearning ObjectivesWhen you complete this chapter you When you complete this chapter you should be able to:should be able to:

5. Identify four ways of establishing labor standards


6. Compute the normal and standard times in a time study

7. Find the proper sample size for a time study

10/16/2010

2

Rusty Wallace’s NASCAR Rusty Wallace’s NASCAR Racing TeamRacing Team

NASCAR racing became very popular in the 1990s with huge sponsorship and prize money


High performance pit crews are a key element of a successful race teamPit crew members can earn $100,000 per year – for changing tires!


Each position has very specific work standardsPit crews are highly organized


Pit crews are highly organized and go though rigorous physical trainingPit stops are videotaped to look for improvements



Human Resource StrategyHuman Resource Strategy

The objective of a human resource The objective of a human resource strategy is to manage labor and strategy is to manage labor and

design jobs so people are effectivelydesign jobs so people are effectively


design jobs so people are effectively design jobs so people are effectively and efficiently utilizedand efficiently utilized

Human Resource StrategyHuman Resource Strategy

1. People should be effectively utilized within the constraints of other operations management decisions

2 People should have a reasonable quality


2. People should have a reasonable quality of work life in an atmosphere of mutual commitment and trust

Constraints on Human Constraints on Human Resource StrategyResource Strategy

Product strategy• Skills needed• Talents needed• Materials used• Safety

Schedules

Process strategy• Technology• Machinery and

equipment used• Safety

Individual differences

10 - 12© 2011 Pearson Education, Inc. publishing as Prentice Hall Figure 10.1

HUMAN RESOURCE STRATEGY

Schedules• Time of day• Time of year

(seasonal)• Stability of

schedules

When

Location strategy• Climate• Temperature• Noise• Light• Air quality

Individual differences• Strength and

fatigue• Information

processing and response

Who

Layout strategy• Fixed position• Process• Assembly line• Work cell• Product

10/16/2010

3

Labor PlanningLabor Planning

1. Follow demand exactlyMatches direct labor costs to

Employment Stability PoliciesEmployment Stability Policies


productionIncurs costs in hiring and termination, unemployment insurance, and premium wagesLabor is treated as a variable cost

Labor PlanningLabor Planning

2. Hold employment constantMaintains trained workforce

Employment Stability PoliciesEmployment Stability Policies


Minimizes hiring, termination, and unemployment costsEmployees may be underutilized during slack periodsLabor is treated as a fixed cost

Work SchedulesWork SchedulesStandard work schedule

Five eight-hour daysFlex-time

Allows employees, within limits, to


Allows employees, within limits, to determine their own schedules

Flexible work weekFewer but longer days

Part-timeFewer, possibly irregular, hours

Job Classification and Job Classification and Work RulesWork Rules

Specify who can do whatSpecify when they can do itSpecify under what conditions


Specify under what conditions they can do it Often result of union contractsRestricts flexibility in assignments and consequently efficiency of production

Job DesignJob DesignSpecifying the tasks that constitute a job for an individual or a group1 Job specialization


1. Job specialization2. Job expansion3. Psychological components4. Self-directed teams5. Motivation and incentive systems

Labor SpecializationLabor Specialization

The division of labor into unique tasksFirst suggested by Adam Smith in 1776

1. Development of dexterity


2. Less loss of time3. Development of specialized tools

Later Charles Babbage (1832) added another consideration

1. Wages exactly fit the required skill required

10/16/2010

4

Job ExpansionJob Expansion

Adding more variety to jobsIntended to reduce boredom associated with labor specialization


Job enlargementJob rotation Job enrichmentEmployee empowerment

Job EnlargementJob Enlargement

Enlarged job

Enriched jobPlanning

(Participate in a cross-function quality

improvement team)


Figure 10.2

Task #3(Lock printed circuit board into fixture for

next operation)

Present job(Manually insert and solder six resistors)

Task #2(Adhere labels

to printed circuit board)

Enlarged job

Control(Test circuits after

assembly)

Psychological Components Psychological Components of Job Designof Job Design

Human resource strategy requires consideration of the psychological components


components of job design

Hawthorne StudiesHawthorne StudiesThey studied light levels, but discovered productivity improvement was independent from lighting levelsIntroduced psychology into the workplace


p y gy pThe workplace social system and distinct roles played by individuals may be more important than physical factorsIndividual differences may be dominant in job expectation and contribution

Core Job CharacteristicsCore Job Characteristics

1. Skill variety

Jobs should include the following characteristics


2. Job identity3. Job significance4. Autonomy5. Feedback

Self-directed teams

Empowerment

Job Design ContinuumJob Design Continuumec

tion


Specialization

Enlargement

Enrichment

Figure 10.3Job expansion

Self-

dire

10/16/2010

5

SelfSelf--Directed TeamsDirected TeamsGroup of empowered individuals working together to reach a common goalMay be organized for long-term or


short-term objectivesEffective because

Provide employee empowermentEnsure core job characteristicsMeet individual psychological needs

SelfSelf--Directed TeamsDirected Teams

Ensure those who have legitimate contributions are on the teamP id t t

To maximize effectiveness, managers should


Provide management supportEnsure the necessary trainingEndorse clear objectives and goalsFinancial and non-financial rewardsSupervisors must release control

Benefits of Teams and Benefits of Teams and Expanded Job DesignsExpanded Job Designs

Improved quality of work lifeImproved job satisfactionI d i i


Increased motivationAllows employees to accept more responsibilityImproved productivity and qualityReduced turnover and absenteeism

1. Higher capital cost 2. Individuals may prefer simple jobs

Limitations of Job Limitations of Job ExpansionExpansion


y p p j3. Higher wages rates for greater skills4. Smaller labor pool 5. Higher training costs

1. Higher capital cost 2. Individuals may prefer simple jobs

Limitations of Job Limitations of Job ExpansionExpansion


y p p j3. Higher wages rates for greater skills4. Smaller labor pool 5. Higher training costs

Motivation and Incentive Motivation and Incentive SystemsSystems

Bonuses - cash or stock optionsProfit-sharing - profits for distribution to employees


Gain sharing - rewards for improvementsIncentive plans - typically based on production ratesKnowledge-based systems - reward for knowledge or skills

10/16/2010

6

Ergonomics and the Work Ergonomics and the Work EnvironmentEnvironment

Ergonomics is the study of the interface between man and machine


machineOften called human factors

Operator input to machines

Ergonomics and Work Ergonomics and Work MethodsMethods

Feedback to operatorsThe work environment


environmentIlluminationNoiseTemperatureHumidity

Recommended Levels of Recommended Levels of IlluminationIllumination


Figure 10.4A

Levels of IlluminationLevels of IlluminationTask Condition Type of Task

or AreaIllumination

LevelType of

Illumination

Small detail, extreme accuracy

Sewing, inspecting dark materials

100 Overhead ceiling lights and desk lamp

Normal detail, Reading, parts 20-50 Overhead


prolonged periods

assembly, general office work

ceiling lights

Good contrast, fairly large objects

Recreational facilities

5-10 Overhead ceiling lights

Large objects Restaurants, stairways, warehouses

2-5 Overhead ceiling lights

Decibel LevelsDecibel Levels

10 - 35© 2011 Pearson Education, Inc. publishing as Prentice HallTable 10.4B

Methods AnalysisMethods AnalysisFocuses on how task is performedUsed to analyze1. Movement of individuals or material

Flow diagrams and process charts


Flow diagrams and process charts2. Activities of human and machine

and crew activityActivity charts

3. Body movementOperations charts

10/16/2010

7

Flow DiagramFlow Diagram

Storage binsFrom

press P i t

Welding


Machine 1

Mach. 2

Mach. 3 Mach. 4

pmach. Paint

shop

Figure 10.5 (a)

Machine 3

Machine 4

P i t

Welding

Flow DiagramFlow Diagram


Storage bins

Machine 1

Machine 2

From press mach.

Paint shop

Figure 10.5 (b)

Process Process ChartChart


Figure 10.5 (c)

Activity ChartActivity Chart


Figure 10.6

Operation ChartOperation Chart


Figure 10.7

The Visual WorkplaceThe Visual WorkplaceUse low-cost visual devices to share information quickly and accuratelyDisplays and graphs replace


p y g p pprintouts and paperworkAble to provide timely information in a dynamic environmentSystem should focus on improvement

10/16/2010

8

The Visual WorkplaceThe Visual Workplace

Present the big picture

Visual signals can take many forms Visual signals can take many forms and serve many functionsand serve many functions


Present the big picturePerformanceHousekeeping

The Visual WorkplaceThe Visual WorkplaceVisual utensil holder encourages housekeeping

A “3-minute service” clock reminds employees of the goal

10 - 44© 2011 Pearson Education, Inc. publishing as Prentice HallFigure 10.8

The Visual WorkplaceThe Visual WorkplaceVisual signals at the machine notify support personnel

Visual kanbans reduce inventory and foster JIT

Line/machine stoppage

Reorder point


Andon

Parts/ maintenance needed

All systems go

Part A Part B Part C

Figure 10.8

The Visual WorkplaceThe Visual Workplace


Quantities in bins indicate ongoing daily requirements and clipboards provide information on schedule changes

Process specifications and operating procedures are posted in each work area

Figure 10.8

Labor StandardsLabor StandardsEffective manpower planning is dependent on a knowledge of the labor requiredLabor standards are the amount


Labor standards are the amount of time required to perform a job or part of a jobAccurate labor standards help determine labor requirements, costs, and fair work

Labor StandardsLabor StandardsStarted early in the 20th centuryImportant to both manufacturing and service organizationsN f d t i i


Necessary for determining staffing requirementsImportant to labor incentive systems

10/16/2010

9

Meaningful Standards Help Meaningful Standards Help DetermineDetermine

1. Labor content of items produced2. Staffing needs3 Cost and time estimates


3. Cost and time estimates4. Crew size and work balance5. Expected production6. Basis of wage incentive plans7. Efficiency of employees

Labor StandardsLabor Standards

May be set in four ways:

1. Historical experience


p2. Time studies3. Predetermined time standards4. Work sampling

Historical ExperienceHistorical ExperienceHow the task was performed last timeEasy and inexpensive


Data available from production records or time cardsData is not objective and may be inaccurateNot recommended

Time StudiesTime Studies

Involves timing a sample of a worker’s performance and using it to set a standard


Requires trained and experienced observersCannot be set before the work is performed


1. Define the task to be studied2. Divide the task into precise

elements


3. Decide how many times to measure the task

4. Time and record element times and rating of performance

Time StudiesTime Studies5. Compute average observed time

Average observed

time

Sum of the times recorded to perform each elementNumber of observations=


time

6. Determine performance rating and normal time

Normal time = xAverage

observed time

Performance rating factor

10/16/2010

10


7. Add the normal times for each element to develop the total normal time for the task


8. Compute the standard time

Standard time =Total normal time

1 - Allowance factor

Rest AllowancesRest Allowances

Personal time allowance4% - 7% of total time for use of restroom, water fountain, etc.

Delay allowance


Delay allowanceBased upon actual delays that occur

Fatigue allowanceBased on our knowledge of human energy expenditure

Rest AllowancesRest Allowances1. Constant allowance

(A) Personal allowance ……………... 5(B) Basic fatigue allowance ………… 4

2. Variable allowances:


Table 10.1

(A) Standing allowance ……………… 2(B) Abnormal position

(i) Awkward (bending) ………… 2(ii) Very awkward (lying,

stretching) …………………… 7

Rest AllowancesRest Allowances(C) Use of force or muscular energy in

lifting, pulling, pushingWeight lifted (pounds)20 …………………………………… 340 9


Figure 10.1

40……………………………………. 960……………………………………. 17

(D) Bad light:(i) Well below recommended…. 2(ii) Quite inadequate……………. 5

Rest AllowancesRest Allowances(E) Atmospheric conditions

(heat and humidity) …………… 0-10(F) Close attention:

(i) Fine or exacting……………….. 2


Figure 10.1

(ii) Very fine or very exacting…… 5(G) Noise level:

(i) Intermittent—loud…………….. 2(ii) Intermittent—very loud

or high-pitched………………... 5

Rest AllowancesRest Allowances(H) Mental strain:

(i) Complex or wide span of attention.…………………….. 4

(ii) Very complex………………….. 8


Figure 10.1

(I) Tediousness:(i) Tedious…………..……………… 2(ii) Very tedious.…………………… 5

10/16/2010

11

Time Study Example 1Time Study Example 1Average observed time = 4.0 minutesWorker rating = 85%Allowance factor = 13%

Normal time = (Average observed time) x (Rating factor)


= (4.0)(.85)= 3.4 minutes

Standard time = = =Normal time1 - Allowance factor

3.41 - .13

3.4.87

= 3.9 minutes

Time Study Example 2Time Study Example 2Allowance factor = 15%

PerformanceJob Element 1 2 3 4 5 Rating

(A) Compose and type letter 8 10 9 21* 11 120%(B) Type envelope address 2 3 2 1 3 105%

Cycle Observed (in minutes)


(B) Type envelope address 2 3 2 1 3 105%(C) Stuff, stamp, seal, and 2 1 5* 2 1 110%

sort envelopes

1. Delete unusual or nonrecurring observations (marked with *)2. Compute average times for each element

Average time for A = (8 + 10 + 9 + 11)/4 = 9.5 minutesAverage time for B = (2 + 3 + 2 + 1 + 3)/5 = 2.2 minutesAverage time for C = (2 + 1 + 2 + 1)/4 = 1.5 minutes

Time Study Example 2Time Study Example 2

3. Compute the normal time for each element

Normal time for A = (9.5)(1.2) = 11.4 minutes

Normal time = (Average observed time) x (Rating)


Normal time for B = (2.2)(1.05) = 2.31 minutesNormal time for C = (1.5)(1.10) = 1.65 minutes

4. Add the normal times to find the total normal time

Total normal time = 11.40 + 2.31 + 1.65 = 15.36 minutes


5. Compute the standard time for the job

Standard time =Total normal time

1 - Allowance factor


= = 18.07 minutes15.361 - .15

Determine Sample SizeDetermine Sample Size

1. How accurate we want to be2. The desired level of confidence3 H h i ti i t ithi


3. How much variation exists within the job elements


Required sample size = n = 2zs

hx

where h = accuracy level (acceptable error) desired in percent of the job element


desired in percent of the job element expressed as a decimal

z = number of standard deviations required for the desired level of confidence

s = standard deviation of the initial samplex = mean of the initial samplen = required sample size

10/16/2010

12


Required sample size = n = 2zs

hx

where h = accuracy level (acceptable error) desired in percent of the job element

Desired Confidence

(%)

z Value (standard deviation required for

desired level of confidence)

Common z Values


desired in percent of the job element expressed as a decimal

z = number of standard deviations required for the desired level of confidence

s = standard deviation of the initial samplex = mean of the initial samplen = required sample size

)90.0 1.6595.0 1.9695.45 2.0099.0 2.5899.73 3.00

Table 10.2

Time Study Example 3Time Study Example 3Desired accuracy with 5%Confidence level = 95%Sample standard deviation = 1.0Sample mean = 3.00

h = .05 x = 3.00 s = 1.0


n = 2zs

hx

n = = 170.74 ≈ 17121.96 x 1.0

.05 x 3

h .05 x 3.00 s 1.0z = 1.96 (from Table S10.1 or Appendix I)


2zs

If desired accuracy h is expressed as an absolute amount, substitute e for hx, where e is the absolute amount of acceptable error

VariationsVariations


n = zse

When the standard deviation s is not provided, it must be computed

s = = ∑(xi - x)2 ∑(Each sample observation - x)2

n - 1 Number in sample - 1

New ToolsNew ToolsWith PDA software, you can study elements, time, performance rate, and statistical confidence intervals can be created, edited,


,managed, and loggedReduces or eliminates the need for data entry

Predetermined Time Predetermined Time StandardsStandards

Divide manual work into small basic elements that have established timesCan be done in a laboratory away from th t l d ti ti


the actual production operationCan be set before the work is actually performedNo performance ratings are necessary

MTM TableMTM Table

10 - 72© 2011 Pearson Education, Inc. publishing as Prentice HallFigure 10.9

10/16/2010

13

MTM ExampleMTM ExampleWeight - less than 2 poundsConditions of GET - easyPlace accuracy - approximateDistance range - 8 to 20 inches

Element Description Element Time


Get tube from rack AA2 35Uncap, place on counter AA2 35Get centrifuge tube, place at sample table AD2 45Pour (3 seconds) PT 83Place tubes in rack (simo) PC2 40

Total TMU 238.0006 x 238 = Total standard minutes = .14

Table 10.4

Work SamplingWork SamplingEstimates percent of time a worker spends on various tasksRequires random observations to record worker activity


Determines how employees allocate their timeCan be used to set staffing levels, reassign duties, estimate costs, and set delay allowances

Work SamplingWork Sampling1. Take a preliminary sample to obtain

estimates of parameter values2. Compute the sample size required3 P h d l f d


3. Prepare a schedule for random observations at appropriate times

4. Observe and record worker activities5. Determine how workers spend their

time

Work SamplingWork Sampling

Determining the sample size

n =z2 p(1 - p)

h2


where n = required sample sizez = standard normal deviate for

desired confidence levelp = estimated value of sample

proportionh = acceptable error level in percent

Work Sampling ExampleWork Sampling ExampleWants employees idle 25% of the timeSample should be accurate within 3%Wants to have 95.45% confidence in the results

n =z2 p(1 - p)

h2


n h2

where n = required sample sizez = 2 for a 95.45% confidence levelp = estimate of idle proportion = 25% = .25h = acceptable error of 3% = .03

n = = 833 observations(2)2 (.25)(.75)

(.03)2

Work Sampling ExampleWork Sampling ExampleNo. of

Observations Activity485 On the phone or meeting with a welfare client126 Idle62 Personal time23 Discussions with supervisor


23 Discussions with supervisor137 Filing, meeting, and computer data entry833

All but idle and personal time are work related Percentage idle time = (126 + 62)/833 = 22.6% Since this is less than the target value of 25%, the workload needs to be adjusted

10/16/2010

14

Work Sampling Time Work Sampling Time StudiesStudies

Salespeople

T l h

Travel20%

Sales in person

20%


Figure 10.10

Telephone sales12%

Telephone within firm

13%

Lunch and personal

10%Meetings and other

8%

Paperwork17%

Work Sampling Time Work Sampling Time StudiesStudies

Startup/exercise3%

Breaks and lunch10%

Dead time

Assembly-Line Employees


Productive work67%

Dead time between tasks

13%

Cleanup3%

Unscheduled tasks and downtime

4%

Figure 10.10

Work SamplingWork SamplingAdvantages of work sampling

Less expensive than time studyObservers need little trainingStudies can be delayed or interrupted


Studies can be delayed or interrupted with little impact on resultsWorker has little chance to affect resultsLess intrusive

Disadvantages of work samplingDoes not divide work elements as completely as time study

Work SamplingWork Sampling


Can yield biased results if observer does not follow random patternLess accurate, especially when job element times are short

Ethics and the Work Ethics and the Work EnvironmentEnvironment

Fairness, equity, and ethics are important constraints of job designImportant issues may relate to equal


Important issues may relate to equal opportunity, equal pay for equal work, and safe working conditionsHelpful to work with government agencies, trade unions, insurers, and employees


All rights reserved. No part of this publication may be reproduced, stored in a retrieval 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.

heizer om10 ch10-work design

Documents

pearson education

prentice hall10

work rules

work times

work environment ethics

human resourcestrategy

huge work standardssponsorship

time study environment