Heizer om10 ch10-work design

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  • 1. 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 1 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 2 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 3 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 4 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 5 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 6 1
  • 2. 10/16/2010 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!© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 7 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 8 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 9 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 10 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 11 © 2011 Pearson Education, Inc. publishing as Prentice Hall Figure 10.1 10 - 12 2
  • 3. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 13 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 14 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 15 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 16 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 17 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 18 3
  • 4. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 19 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 20 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 21 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 22 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 23 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 24 4
  • 5. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 25 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 26 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 27 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 28 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 29 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 30 5
  • 6. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 31 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 32 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 33 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 34 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 35 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 36 6
  • 7. 10/16/2010 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)© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 37 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 38 Activity Chart Process Chart Figure 10.5 (c) Figure 10.6© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 39 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 40 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 41 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 42 7
  • 8. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 43 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 44 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 45 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 46 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 47 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 48 8
  • 9. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 49 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 50 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 51 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 52 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 53 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 54 9
  • 10. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 55 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 56 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 57 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 58 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 59 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 60 10
  • 11. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 61 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 62 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 63 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 64 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 65 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 66 11
  • 12. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 67 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 68 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 69 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 70 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 71 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 72 12
  • 13. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 73 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 74 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 75 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 76 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 77 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 78 13
  • 14. 10/16/2010 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 79 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 80 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 81 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 82 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© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 83 © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 84 14