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  1. 1. Design of People System
  2. 3. Job Design <ul><li>Job design involves specifying the content and methods of job </li></ul><ul><ul><li>What will be done </li></ul></ul><ul><ul><li>Who will do the job </li></ul></ul><ul><ul><li>How the job will bob will be done </li></ul></ul><ul><ul><li>Where the job will be done </li></ul></ul><ul><ul><li>Ergonomics : Incorporation of human factors in the design of the workplace </li></ul></ul>
  3. 4. Design of Work Systems <ul><li>Specialization </li></ul><ul><li>Behavioral Approaches to Job Design </li></ul><ul><li>Teams </li></ul><ul><li>Methods Analysis </li></ul><ul><li>Motions Study </li></ul><ul><li>Working conditions </li></ul>
  4. 5. Decisions in Job Design
  5. 6. Approaches in Job Design <ul><li>Behavioral approaches </li></ul><ul><ul><li>The Hawthorn studies. </li></ul></ul><ul><ul><li>The work of Herzberg, Hackman, Oldham, and others. </li></ul></ul><ul><ul><li>Japanese management systems. </li></ul></ul><ul><li>Efficiency approaches </li></ul><ul><ul><li>From Taylor’s scientific management concepts (Time study, work sampling, methods. improvement study). </li></ul></ul>
  6. 7. Behavioral Approaches (Psycho-Social Factors) <ul><li>Job enlargement (high task variety). </li></ul><ul><ul><li>Vertical (job enrichment). </li></ul></ul><ul><ul><ul><li>To include planning, organizing, inspecting one’s own work. </li></ul></ul></ul><ul><ul><ul><li>Meaningful work, responsibility for outcomes. </li></ul></ul></ul><ul><ul><ul><li>Knowledge of actual results. </li></ul></ul></ul><ul><ul><li>Horizontal (greater variety). </li></ul></ul><ul><ul><li>Job Rotation: Workers periodically exchange. </li></ul></ul><ul><li>Taylorism (high task specialization). </li></ul>
  7. 8. <ul><li>Socio-technical system </li></ul><ul><ul><li>Blends the sociological concerns of the worker with modern technology of robots and computer-controlled machines. </li></ul></ul><ul><ul><li>Design job to adjust the needs of the workers and work group. </li></ul></ul><ul><ul><ul><li>Skill variety. </li></ul></ul></ul><ul><ul><ul><li>Task variety. </li></ul></ul></ul><ul><ul><ul><li>Task identity. </li></ul></ul></ul><ul><ul><ul><li>Task autonomy. </li></ul></ul></ul><ul><ul><ul><li>Feedback. </li></ul></ul></ul>
  8. 9. Specialization in Business (Table 7.1) For Management: 1. Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality For Labor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for self-fulfillment
  9. 10. Disadvantages For Management: 1. Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality For Labor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for self-fulfillment
  10. 11. Efficiency Approach (Technical-Physical Factors) <ul><li>Work Physiology (Study of Manual Tasks) </li></ul><ul><ul><li>Manual tasks entail stress on large muscle groups. </li></ul></ul><ul><ul><li>Physiological Indices of Fatigue </li></ul></ul><ul><ul><ul><li>heart rate, oxygen intake. </li></ul></ul></ul><ul><ul><ul><li>sweat rate, lactic acid in blood, body temperature. </li></ul></ul></ul><ul><li>Human-Factors Engineering </li></ul><ul><ul><li>Motor Tasks </li></ul></ul><ul><ul><ul><li>Controlled by the central nervous system. </li></ul></ul></ul><ul><ul><ul><li>Fatigue is localized in small muscle groups (e.g., fingers, arms, hands). </li></ul></ul></ul><ul><ul><li>Mental Tasks </li></ul></ul><ul><ul><ul><li>Rapid decision making based upon stimuli. </li></ul></ul></ul><ul><ul><ul><li>Effectiveness measured by response time and kind/number of errors. </li></ul></ul></ul>
  11. 12. The Work Environment
  12. 13.
  13. 14. Work Methods <ul><li>The need for methods analysis can come from a number of different sources: </li></ul><ul><ul><li>Changes in tools and equipment. </li></ul></ul><ul><ul><li>Changes in product design or new products. </li></ul></ul><ul><ul><li>Changes in materials or procedures. </li></ul></ul><ul><ul><li>Other factors (e.g. accidents, quality problems). </li></ul></ul><ul><li>Focus on doing the job right; poka yoke. </li></ul><ul><ul><li>Select the job to be studied. </li></ul></ul><ul><ul><ul><li>Jobs that are prone to human error. </li></ul></ul></ul><ul><ul><ul><li>High labor content; done frequently. </li></ul></ul></ul><ul><ul><ul><li>Unsafe or tiring that offer the most potential for improvement. </li></ul></ul></ul><ul><ul><li>Document and analyze the present method. </li></ul></ul><ul><ul><li>Develop an improved method. </li></ul></ul><ul><ul><li>Implement the improved method. </li></ul></ul><ul><ul><li>Maintain and follow up on the new method. </li></ul></ul>
  14. 15. Document and Analyze Present Method <ul><li>Obtain production requirements. </li></ul><ul><li>Procure engineering data. </li></ul><ul><li>Procure manufacturing and cost data. </li></ul><ul><li>Description and sketches of work station and tools. </li></ul><ul><li>Use assembly chart, flow process chart, flow diagram, worker-machine activity chart, etc. </li></ul>
  15. 16. Assembly Chart (Operation Process Chart) <ul><li>Information conveyed </li></ul>
  16. 17. Assembly Chart … (Continued) <ul><li>Standard symbols: Circle (operation) and Square(inspection) </li></ul>
  17. 18. Process Flowchart Symbols Operation: An activity directly contributing to product or service Storage: Store of the product or service Inspection: Examining the product or service for completeness, irregularities, or quality Transportation: Moving the product or service from one location to another Delay: Process having to wait
  18. 19. Figure 7-2 FLOW PROCESS CHART Job Requisition of petty cash Details of Method ANALYST D. Kolb PAGE 1 of 2 Operation Movement Inspection Delay Storage 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
  19. 20. Worker-Machine Chart <ul><li>Graphical model of the simultaneous activities of a worker and the equipment he/she operates. </li></ul><ul><li>Helps identify idle time and costs of both workers and machines. </li></ul><ul><li>For analyzing alternative worker-machine combinations to determine the most efficient arrangement. </li></ul>
  20. 21. Worker-Machine Chart – 1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 Key in customer data on card Feed data card in Position customer for photo Take picture Inspect card & trim edges Idle Idle Idle Idle Photo/card processed Accept card Begin photo process 2.6 0.4 1.0 0.6 3.4 1.2 Job Photo-Id Cards Date 10/14 Time Time (min) Operator (min) Photo Machine
  21. 22. Operation Analysis <ul><li>Question every detail. </li></ul><ul><ul><li>Why? </li></ul></ul><ul><ul><li>Where? </li></ul></ul><ul><ul><li>What? </li></ul></ul><ul><ul><li>Who? </li></ul></ul><ul><ul><li>When? </li></ul></ul><ul><ul><li>How? </li></ul></ul>
  22. 23. Operation Analysis <ul><li>10 Primary Approaches </li></ul><ul><ul><li>Purpose of the operation. </li></ul></ul><ul><ul><li>Design of the part. </li></ul></ul><ul><ul><li>Tolerance and specifications. </li></ul></ul><ul><ul><li>Material. </li></ul></ul><ul><ul><li>Process of manufacture. </li></ul></ul><ul><ul><li>Setup and tools. </li></ul></ul><ul><ul><li>Working conditions. </li></ul></ul><ul><ul><li>Material handling. </li></ul></ul><ul><ul><li>Plant layout. </li></ul></ul><ul><ul><li>Principles of motion economy. </li></ul></ul>
  23. 24. Principles of Motion Economy <ul><li>Both hands should work at the same time. </li></ul><ul><li>The hands should work in opposite symmetrical directions. </li></ul><ul><li>Each hand should go through as few motions as possible. </li></ul><ul><li>The work place should be designed to avoid long reaches. </li></ul><ul><li>Avoid using the hand as a holding device. </li></ul>
  24. 25. Work Measurement <ul><li>Motion study is the systematic study of the human motions used to perform an operation. </li></ul><ul><li>Work measurement: Measures time requirement to make a product </li></ul><ul><li>Time standards: The time required for a trained worker to perform a given task using a prescribed work method with normal effort and skill. </li></ul><ul><li>Uses of standards </li></ul>
  25. 26. Major Methods of Work Measurement
  26. 27. The Critics of Work Measurement <ul><li>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. </li></ul><ul><li>“ Time study is a dark-ages technique, and it’s dehumanizing to track someone around with a stopwatch.” </li></ul><ul><li>Vice President, H.B. Maynard & Co. </li></ul><ul><li>“ 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.” </li></ul><ul><li>Wall Street Journal </li></ul>
  27. 28. Time Study Sheet
  28. 29. Elemental Standard Time Data <ul><li>Develop tables of performance times for operations that are common to many applications. </li></ul><ul><li>Avoids the need for separate time studies. </li></ul>
  29. 30. Predetermined Motion-Time Data Systems <ul><li>Uses historically developed data for time required for basic body movement, elements of operation, or even an entire operation. </li></ul><ul><li>Very useful in estimating new product cost. </li></ul><ul><li>Procedure </li></ul><ul><ul><li>Divide total task into elements. </li></ul></ul><ul><ul><li>Rate the difficulty of each element. </li></ul></ul><ul><ul><li>Look up tables for the time allowed for each element. </li></ul></ul><ul><ul><li>Add all element times together. </li></ul></ul><ul><li>Systems available </li></ul><ul><ul><li>Methods time measurements (MTM). </li></ul></ul><ul><ul><li>Basic motion time study (BMT). </li></ul></ul><ul><ul><li>Motion time survey (GE). </li></ul></ul><ul><ul><li>Work factor. </li></ul></ul>
  30. 31. The MTM Predetermined Motion-Time Data System
  31. 32. Work Sampling <ul><li>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 </li></ul><ul><li>Applications </li></ul><ul><ul><li>Ratio delay = % idle time </li></ul></ul><ul><ul><li>Performance measurement </li></ul></ul><ul><ul><li>Time standard </li></ul></ul><ul><li>Experimental approach </li></ul><ul><ul><li>Level of confidence </li></ul></ul><ul><ul><li>Sample size </li></ul></ul><ul><ul><li>Accuracy of observations </li></ul></ul>
  32. 33. Work Sampling Study <ul><li>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. </li></ul><ul><li>Estimate the % of the time that worker spend on this element. </li></ul><ul><li>Calculate the precision of the estimate (at 95% confidence interval) </li></ul><ul><li>Determine the appropriate sample size required for a second set of observations if the acceptable numerical error is 0.02. </li></ul>
  33. 34. Maslow’s Hierarchy of Needs
  34. 35. Compensation Methods <ul><li>Some reasons a company might use a wage incentive plan </li></ul><ul><ul><li>Increased pay for employees </li></ul></ul><ul><ul><li>Lower total cost to the company for each unit produced. </li></ul></ul><ul><li>Many jobs do not lend themselves to an individual incentive plan. </li></ul>
  35. 36. Wage Incentive Plans <ul><li>Piecework plans. </li></ul><ul><li>Standard hour wage plans. </li></ul><ul><li>Gain-sharing plans. </li></ul><ul><li>Recommendations for developing and implementing successful wage incentive plans: </li></ul><ul><ul><li>The plan should permit earnings about the base rate; good performance should pay at least a 30% bonus. </li></ul></ul><ul><ul><li>The plan should benefit both the company and the employees. </li></ul></ul><ul><ul><li>The plan should be simple and understandable. </li></ul></ul><ul><ul><li>The standards should be protected from capricious and indiscriminate rate cutting. </li></ul></ul><ul><ul><li>Earnings should not be affected by factors beyond the control of the worker. </li></ul></ul>
  36. 37. Group Incentive Plans <ul><li>Direct-wage group. </li></ul><ul><li>Profit-sharing and cost-reduction plans. </li></ul><ul><li>The Scanlon plan. </li></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>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. </li></ul></ul>
  37. 38. Lincoln Electric <ul><li>The Lincoln Electric Plan </li></ul><ul><ul><li>Average incentive bonus for the last 10 years = 11 months- salary. </li></ul></ul><ul><ul><li>Job security: guaranteed minimum of 30 hours- pay per week for employees who have served the company for 2 years or more. </li></ul></ul><ul><ul><li>Promotion from within. </li></ul></ul>
  38. 39. Lincoln Electric Disbursed Ten Year Average
  39. 40. Employee Health & Safety <ul><li>Several regulations and government agencies monitor and control; </li></ul><ul><ul><li>OSHA - safety and health in the workplace. Federal... proactive. </li></ul></ul><ul><ul><li>Worker’s Compensation - safety and health in the workplace. State .... reactive. </li></ul></ul><ul><ul><li>EPA - Environmental protection outside of the workplace. Federal... proactive. </li></ul></ul><ul><li>Safety and Health departments in plant. </li></ul>
  40. 41. Learning Curves <ul><li>Illustrates improvement rate of workers as a job is repeated </li></ul><ul><li>Processing time per unit decreases by a constant percentage each time output doubles </li></ul>Units produced Processing time per unit
  41. 42. t n = time required for n th unit produced t 1 = time required for first unit produced n = cumulative number of units produced b = , where r is the learning curve % (decimal coefficient) Time required for the n th unit = t n = t 1 n b where:
  42. 43. Learning Curve Effect Contract to produce 36 computers. t 1 = 18 hours, learning rate = 80% What is time for 9th, 18th, 36th units? t 9 = (18)(9) ln(0.8)/ln 2 = (18)(9) -0.322 = (18)/(9) 0.322 = (18)(0.493) = 8.874hrs t 18 = (18)(18) ln(0.8)/ln 2 = (18)(0.394) = 7.092hrs t 36 = (18)(36) ln(0.8)/ln 2 = (18)(0.315) = 5.674hrs
  43. 44. Learning Curve for Mass Production Job Standard time End of improvement Units produced Processing time per unit
  44. 45. Learning Curves (cont.) <ul><li>Advantages </li></ul><ul><ul><li>planning labor </li></ul></ul><ul><ul><li>planning budget </li></ul></ul><ul><ul><li>determining scheduling requirements </li></ul></ul><ul><li>Limitations </li></ul><ul><ul><li>product modifications negate learning curve effect </li></ul></ul><ul><ul><li>improvement can derive from sources besides learning </li></ul></ul><ul><ul><li>industry-derived learning curve rates may be inappropriate </li></ul></ul>