Design of People SystemHenry C. CoTechnology and Operations Management,California Polytechnic and State University
Job Design   Job design involves specifying the    content and methods of job     What  will be done     Who will do th...
Design of Work Systems   Specialization   Behavioral Approaches to Job Design   Teams   Methods Analysis   Motions St...
Decisions in Job Design    Who              What                Where              When            Why               How  ...
Approaches in Job Design   Behavioral approaches     The Hawthorn studies.     The work of Herzberg, Hackman, Oldham,  ...
Behavioral Approaches (Psycho-SocialFactors)   Job enlargement (high task variety).     Vertical   (job enrichment).    ...
   Socio-technical system     Blends the sociological concerns of the      worker with modern technology of robots      ...
Specialization in Business (Table 7.1)For Management:                          For Labor:1. Difficult to motivate         ...
DisadvantagesFor Management:                          For Labor:1. Difficult to motivate                 1. Monotonous wor...
Efficiency Approach (Technical-PhysicalFactors)   Work Physiology (Study of Manual Tasks)       Manual tasks entail stre...
The Work Environment                           Working Conditions T e m p e ra tu re &                       V e n t ila t...
Noise & Vibration                        Work Breaks     Safety                     Causes of Accidents       Design of Pe...
Work Methods   The need for methods analysis can come from a    number of different sources:       Changes in tools and ...
Document and AnalyzePresent Method   Obtain production requirements.   Procure engineering data.   Procure manufacturin...
Assembly Chart (Operation Process Chart)   Information conveyed    Purpose of operation             Process of manufactur...
Assembly Chart … (Continued)   Standard symbols:    Circle (operation)    and    Square(inspection)            Design of ...
Process Flowchart Symbols           Operation:           An activity directly contributing to product or service          ...
Figure 7-2                                                                                  ion                           ...
Worker-Machine Chart   Graphical model of the simultaneous    activities of a worker and the    equipment he/she operates...
Job Photo-Id Cards                                            Date   10/14          Time                                Ti...
Operation Analysis   Question every detail.     Why?     Where?     What?     Who?     When?     How?             D...
Operation Analysis   10 Primary Approaches     Purpose  of the operation.     Design of the part.     Tolerance and sp...
Principles of Motion Economy   Both hands should work at the same    time.   The hands should work in opposite    symmet...
Work Measurement   Motion study is the systematic study of the human motions    used to perform an operation.   Work mea...
Major Methods of Work MeasurementType of Task                              Major MethodsVery short interval, highly       ...
The Critics of Work Measurement   UPS has 1000 industrial engineers (out of a work    force of 152,000) set standards for...
Time Study Sheet
Elemental Standard Time Data   Develop tables of performance times    for operations that are common to    many applicati...
Predetermined Motion-Time Data Systems   Uses historically developed data for time    required for basic body movement, e...
The MTMPredeterminedMotion-TimeData System
Work Sampling   Observing an activity during a fixed duration    (e.g., a day) at random intervals to estimate    the fra...
Work Sampling Study   A work sample is being conducted. the    observer randomly samples 60 times in a    day and notes t...
Maslow’sHierarchy ofNeeds         Design of People System (Henry C. Co)   34
Compensation Methods   Some reasons a company might use a    wage incentive plan     Increased pay for employees     Lo...
Wage Incentive Plans   Piecework plans.   Standard hour wage plans.   Gain-sharing plans.   Recommendations for develo...
Group Incentive Plans   Direct-wage group.   Profit-sharing and cost-reduction plans.   The Scanlon plan.       Whenev...
Lincoln Electric   The Lincoln Electric Plan     Average incentive bonus for the last 10      years = 11 months- salary....
Lincoln ElectricDisbursed Ten Year Average        Design of People System (Henry C. Co)   39
Employee Health & Safety   Several regulations and government    agencies monitor and control;     OSHA   - safety and h...
Learning Curves   Illustrates    improvement rate    of workers as a job    is repeated    Processing time per           ...
Time required for the nth unit = tn = t1nbwhere: tn =    time required for nth unit produced t1 =    time required for fir...
Learning Curve EffectContract to produce 36 computers.t1 = 18 hours, learning rate = 80%What is time for 9th, 18th, 36th u...
Learning Curve for Mass Production Job       Processing time per unit                                                     ...
Learning Curves (cont.)   Advantages                         Limitations       planning labor                       pr...
06 designpeoplesystem
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06 designpeoplesystem

  1. 1. Design of People SystemHenry C. CoTechnology and Operations Management,California Polytechnic and State University
  2. 2. 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: Incorporation of human factors in the design of the workplace Design of People System (Henry C. Co) 3
  3. 3. Design of Work Systems Specialization Behavioral Approaches to Job Design Teams Methods Analysis Motions Study Working conditions Design of People System (Henry C. Co) 4
  4. 4. Decisions in Job Design Who What Where When Why How OrganizationalMental and Geographic Time of day; rationale for Method ofphysical locale of the Tasks to be time of the job; object- performancecharacteristics organization; performed occurrence in ives and mot- andof the location of the work flow ivation of the motivationwork force work areas worker Ultimate Job Structure Design of People System (Henry C. Co) 5
  5. 5. Approaches in Job Design Behavioral approaches  The Hawthorn studies.  The work of Herzberg, Hackman, Oldham, and others.  Japanese management systems. Efficiency approaches  From Taylor’s scientific management concepts (Time study, work sampling, methods. improvement study). Design of People System (Henry C. Co) 6
  6. 6. Behavioral Approaches (Psycho-SocialFactors) Job enlargement (high task variety).  Vertical (job enrichment).  To include planning, organizing, inspecting one’s own work.  Meaningful work, responsibility for outcomes.  Knowledge of actual results.  Horizontal (greater variety).  Job Rotation: Workers periodically exchange. Taylorism (high task specialization). Design of People System (Henry C. Co) 7
  7. 7.  Socio-technical system  Blends the sociological concerns of the worker with modern technology of robots and computer-controlled machines.  Design job to adjust the needs of the workers and work group.  Skill variety.  Task variety.  Task identity.  Task autonomy.  Feedback. Design of People System (Henry C. Co) 8
  8. 8. Specialization in Business (Table 7.1)For Management: For Labor:1. Difficult to motivate 1. Monotonous work quality 2. Limited opportunities2. Worker dissatisfaction, for advancement possibly resulting in 3. Little control over work absenteeism, high 4. Little opportunity for turnover, disruptive self-fulfillment tactics, poor attention to quality Design of People System (Henry C. Co) 9
  9. 9. DisadvantagesFor Management: For Labor:1. Difficult to motivate 1. Monotonous work quality 2. Limited opportunities2. Worker dissatisfaction, for advancement possibly resulting in 3. Little control over work absenteeism, high 4. Little opportunity for turnover, disruptive self-fulfillment tactics, poor attention to quality Design of People System (Henry C. Co) 10
  10. 10. Efficiency Approach (Technical-PhysicalFactors) Work Physiology (Study of Manual Tasks)  Manual tasks entail stress on large muscle groups.  Physiological Indices of Fatigue  heart rate, oxygen intake.  sweat rate, lactic acid in blood, body temperature. Human-Factors Engineering  Motor Tasks  Controlled by the central nervous system.  Fatigue is localized in small muscle groups (e.g., fingers, arms, hands).  Mental Tasks  Rapid decision making based upon stimuli.  Effectiveness measured by response time and kind/number of errors. Design of People System (Henry C. Co) 11
  11. 11. The Work Environment Working Conditions T e m p e ra tu re & V e n t ila t io n H u m id it y I llu m in a t io n C o lo r Design of People System (Henry C. Co) 12
  12. 12. Noise & Vibration Work Breaks Safety Causes of Accidents Design of People System (Henry C. Co) 13
  13. 13. Work Methods 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). Focus on doing the job right; poka yoke.  Select the job to be studied.  Jobs that are prone to human error.  High labor content; done frequently.  Unsafe or tiring that offer the most potential for improvement.  Document and analyze the present method.  Develop an improved method.  Implement the improved method.  Maintain and follow up on the new method. Design of People System (Henry C. Co) 14
  14. 14. Document and AnalyzePresent Method Obtain production requirements. Procure engineering data. Procure manufacturing and cost data. Description and sketches of work station and tools. Use assembly chart, flow process chart, flow diagram, worker-machine activity chart, etc. Design of People System (Henry C. Co) 15
  15. 15. Assembly Chart (Operation Process Chart) Information conveyed Purpose of operation Process of manufacture Design of the part Setup and tools Tolerances and specifications Working conditions Materials Plant layout Design of People System (Henry C. Co) 16
  16. 16. Assembly Chart … (Continued) Standard symbols: Circle (operation) and Square(inspection) Design of People System (Henry C. Co) 17
  17. 17. Process Flowchart Symbols Operation: An activity directly contributing to product or service Transportation: Moving the product or service from one location to another Inspection: Examining the product or service for completeness, irregularities, or quality Delay: Process having to waitStorage:Store of the product or service Design of People System (Henry C. Co) 18
  18. 18. Figure 7-2 ion nt nFLOW PROCESS CHART e ANALYST PAGE tio age ect vem ayJob Requisition of petty cash D. Kolb 1 of 2 era p Stor De l Ins Mo Op Details of Method 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 Design of People System (Henry C. Co) 19
  19. 19. Worker-Machine Chart Graphical model of the simultaneous activities of a worker and the equipment he/she operates. Helps identify idle time and costs of both workers and machines. For analyzing alternative worker- machine combinations to determine the most efficient arrangement. Design of People System (Henry C. Co) 20
  20. 20. Job Photo-Id Cards Date 10/14 Time Time (min) Operator (min) Photo Machine –1 Key in customer data 2.6 Idle –2 on card –3 Feed data card in 0.4 Accept card Position customer for photo 1.0 Idle –4 Take picture 0.6 Begin photo process –5Worker-Machine –6 Chart Idle 3.4 Photo/card processed –7 –8 –9 Inspect card & trim edges 1.2 Idle Design of People System (Henry C. Co) 21
  21. 21. Operation Analysis Question every detail.  Why?  Where?  What?  Who?  When?  How? Design of People System (Henry C. Co) 22
  22. 22. Operation Analysis 10 Primary Approaches  Purpose of the operation.  Design of the part.  Tolerance and specifications.  Material.  Process of manufacture.  Setup and tools.  Working conditions.  Material handling.  Plant layout.  Principles of motion economy. Design of People System (Henry C. Co) 23
  23. 23. Principles of Motion Economy Both hands should work at the same time. The hands should work in opposite symmetrical directions. Each hand should go through as few motions as possible. The work place should be designed to avoid long reaches. Avoid using the hand as a holding device. Design of People System (Henry C. Co) 24
  24. 24. Work Measurement Motion study is the systematic study of the human motions used to perform an operation. Work measurement: Measures time requirement to make a product Time standards: The time required for a trained worker to perform a given task using a prescribed work method with normal effort and skill. Uses of standards Uses of standards % Estimating and cost 89% Incentive compensation plans 59 Production scheduling 55 Performance appraisal 41 Staffing & capacity plans 2 Design of People System (Henry C. Co) 25
  25. 25. Major Methods of Work MeasurementType of Task Major MethodsVery short interval, highly Film analysisrepetitiveShort interval, repetitive Stop watch time study or predetermined dataTask in conjunction with Elemental data or subjectivemachinery or other fixed estimateprocessing time equipmentInfrequent work or work of a longWork sampling or subjectivecycle time estimate Design of People System (Henry C. Co) 26
  26. 26. The Critics of Work Measurement UPS has 1000 industrial engineers (out of a work force of 152,000) set standards for a myriad of closely supervised tasks. Productivity and profits are high. “Time study is a dark-ages technique, and it’s dehumanizing to track someone around with a stopwatch.” Vice President, H.B. Maynard & Co. “UPS runs counter to the drift of many companies who see (1) Automation (such as Roadway) or (2) Employee Involvement as better ways to higher productivity, rather than rigid monitoring at UPS.” Wall Street Journal Design of People System (Henry C. Co) 27
  27. 27. Time Study Sheet
  28. 28. Elemental Standard Time Data Develop tables of performance times for operations that are common to many applications. Avoids the need for separate time studies. Design of People System (Henry C. Co) 29
  29. 29. Predetermined Motion-Time Data Systems Uses historically developed data for time required for basic body movement, elements of operation, or even an entire operation. Very useful in estimating new product cost. Procedure  Divide total task into elements.  Rate the difficulty of each element.  Look up tables for the time allowed for each element.  Add all element times together. Systems available  Methods time measurements (MTM).  Basic motion time study (BMT).  Motion time survey (GE).  Work factor. Design of People System (Henry C. Co) 30
  30. 30. The MTMPredeterminedMotion-TimeData System
  31. 31. Work Sampling Observing an activity during a fixed duration (e.g., a day) at random intervals to estimate the fraction of time spent directly on some sub-activities of interest Applications  Ratio delay = % idle time  Performance measurement  Time standard Confidence Experimental approach level  Level of confidence  Sample size β  Accuracy of observations Maximum Maximum probable probable error error Design of People System (Henry C. Co) 32
  32. 32. Work Sampling Study A work sample is being conducted. the observer randomly samples 60 times in a day and notes that a particular element is performed 12 times. Estimate the % of the time that worker spend on this element. Calculate the precision of the estimate (at 95% confidence interval) Determine the appropriate sample size required for a second set of observations if the acceptable numerical error is 0.02. Design of People System (Henry C. Co) 33
  33. 33. Maslow’sHierarchy ofNeeds Design of People System (Henry C. Co) 34
  34. 34. Compensation Methods Some reasons a company might use a wage incentive plan  Increased pay for employees  Lower total cost to the company for each unit produced. Many jobs do not lend themselves to an individual incentive plan. Design of People System (Henry C. Co) 35
  35. 35. Wage Incentive Plans Piecework plans. Standard hour wage plans. Gain-sharing plans. Recommendations for developing and implementing successful wage incentive plans:  The plan should permit earnings about the base rate; good performance should pay at least a 30% bonus.  The plan should benefit both the company and the employees.  The plan should be simple and understandable.  The standards should be protected from capricious and indiscriminate rate cutting.  Earnings should not be affected by factors beyond the control of the worker. Design of People System (Henry C. Co) 36
  36. 36. Group Incentive Plans Direct-wage group. Profit-sharing and cost-reduction plans. The Scanlon plan.  Whenever a plant-s productivity exceeds a preestablished “normal” level, every employee gets a bonus - the higher the level of productivity, the bigger the bonus.  The plan also involves a style of management designed to give each worker some control over his or her job by encouraging participation in decision making affecting it.  Productivity is increased by a well-designed employee suggestion plan and through the use of special committee that constantly prod employees for ideas on how to improve productivity. Design of People System (Henry C. Co) 37
  37. 37. Lincoln Electric The Lincoln Electric Plan  Average incentive bonus for the last 10 years = 11 months- salary.  Job security: guaranteed minimum of 30 hours- pay per week for employees who have served the company for 2 years or more.  Promotion from within. Design of People System (Henry C. Co) 38
  38. 38. Lincoln ElectricDisbursed Ten Year Average Design of People System (Henry C. Co) 39
  39. 39. Employee Health & Safety Several regulations and government agencies monitor and control;  OSHA - safety and health in the workplace. Federal... proactive.  Worker’s Compensation - safety and health in the workplace. State .... reactive.  EPA - Environmental protection outside of the workplace. Federal... proactive. Safety and Health departments in plant. Design of People System (Henry C. Co) 40
  40. 40. Learning Curves Illustrates improvement rate of workers as a job is repeated Processing time per Units produced unit decreases by a constant percentage each time output doubles Processing time per unit Processing time per unit Design of People System (Henry C. Co) 41
  41. 41. Time required for the nth unit = tn = t1nbwhere: tn = time required for nth unit produced t1 = time required for first unit produced n= cumulative number of units produced ln( r ) b= ln( 2 ) , where r is the learning curve % (decimal coefficient) Design of People System (Henry C. Co) 42
  42. 42. Learning Curve EffectContract to produce 36 computers.t1 = 18 hours, learning rate = 80%What is time for 9th, 18th, 36th units? t9 = (18)(9)ln(0.8)/ln 2 = (18)(9)-0.322 = (18)/(9)0.322 = (18)(0.493) = 8.874hrs t18 = (18)(18)ln(0.8)/ln 2 = (18)(0.394) = 7.092hrs t36 = (18)(36)ln(0.8)/ln 2 = (18)(0.315) = 5.674hrs Design of People System (Henry C. Co) 43
  43. 43. Learning Curve for Mass Production Job Processing time per unit End of improvement Standard time Units produced Design of People System (Henry C. Co) 44
  44. 44. Learning Curves (cont.) Advantages  Limitations  planning labor  product modifications  planning budget negate learning curve effect  determining scheduling  improvement can derive requirements from sources besides learning  industry-derived learning curve rates may be inappropriate Design of People System (Henry C. Co) 45
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