Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Right.docx

Copyright © 2016, 2013, 2010 Pearson Education, Inc. All
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Operations Management
8th edition
Chapter 9
People in Operations
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Figure 9.1
This chapter examines people in operations
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In Chapter 9 – People in operations – Slack et al. identify the
following key questions…

resource strategy?
Key questions
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Figure 9.2
People in operations
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Figure 9.3
(a) U-form organizations give prominence to functional
groupings of resources

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Figure 9.3
(b) The M-form separates the organization's resources into
separate divisions
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Figure 9.3
(c) Matrix form structures the organization's resources so
that they have two (or more) levels of responsibility
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Figure 9.3
(d) N-form organizations form loose networks internally
between groups of resources and externally with other
organizations

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Figure 9.4
A typology of the ‘operations developer’ role
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Some of the influences on job design
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The objectives of job design
Job
design
impacts on
quality of working life
quality
speed
dependability
flexibility

cost
health and safety
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Dividing the total task down into smaller parts, each of which
is accomplished by a single person or team.
Promotes faster learning.
Makes automation easier.
Ensures that non-productive work is reduced.
Advantages
Leads to monotony.
Can result in physical injury.
Is not particularly robust.
Can reduce flexibility.
Disadvantages
Division of labour

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Work study
Method study Work measurement
Method study is the systematic
recording and critical examination
of existing and proposed methods
of doing work, as a means of
developing and applying easier
and more effective methods and
reducing costs.
The application of techniques
designed to establish the time
for a qualified worker to carry
out a specified job at a defined
level of performance.
Work study
A generic term for those techniques, particularly method study
and work
measurement, which are used in the examination of human work
in all its
contexts, and which lead systematically to the investigation of
all the factors
which affect the efficiency and economy of the situations being

reviewed in
order to effect improvement.
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Resources and flow: Job design
Method Study: SREDIM
Method study seeks to improve methods of production –
it embraces layout, environment, material and labour
usage
Select task to be studied
Record present method – using five charting
symbols
Examine the facts critically
Develop best method
Install the new method
Maintain by regular checks

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Standard performance is the rate of
output which qualified workers will achieve
without over-exertion as an average over
the working day provided they are
motivated to apply themselves to their
work.
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A qualified worker is one who is
accepted as having the necessary
physical attributes, intelligence, skill,
education and knowledge to perform the
task to satisfactory standards of safety,
quality and quantity.
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Work measurement
Standard times are the building blocks of process
design – they represent the time needed for a qualified
worker to carry out specific jobs at defined levels of
performance
Basic time + allowances = standard time
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The stages in work measurement (1 of 2)
Basic
time for
element
Observed
time for
element
Basic
time
Observed

time
Rating
Standard rating
= ×
‘Rating’ to adjust for effort
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The stages in work measurement (2 of 2)
Basic
time
Standard
time =
Allowances+
Basic
time for
element
‘Allowances’ for relaxation, etc.
Standard
time for

element
Standard
time for job
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Element Basic time Allowances
min
Standard
time
A
B
C
D
0.6
0.4
0.8
0.3
2.1

17
12
10
17
0.10
0.05
0.08
0.05
0.28
0.70
0.45
0.88
0.35
2.38
Basic time
2.10
Allowance
0.28

Standard time = 2.38
Build up of standard times
%
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A standard unit of work,
e.g. 1 standard minute
The ‘standard’ unit of work
Light job
90% work
10% relaxation
Average job
84% work
16% relaxation
Heavy job
68% work
32% relaxation

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Ergonomics
How the person
interfaces with the
physical aspects of
his or her
workplace
How the person
interfaces with the
environmental conditions
prevalent in his or her
immediate working area
Ergonomics is concerned primarily with the physiological
aspects of job design – that is, with the human body and how
it fits into its surroundings
Ergonomics (1 of 5)
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Ergonomics (2 of 5)
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Ergonomics (3 of 5)
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Forearms
approximately
horizontal
Seat back
adjustability
Good
lumbar
support
Seat height
adjustability
No excess pressure on
underside of thighs
and backs of knees
Foot
support

if needed
Space for
postural change,
no obstacles
under desk
Leg room and
clearance to allow
postural changes
Ergonomics (4 of 5)
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Keyboard
usable,
adjustable,
detachable,
legible
Adequate
lighting
Distracting
noise
minimized

Software appropriate to
task, adapted to user, no
undisclosed monitoring
Screen: stable
image,
adjustable,
readable
glare/
reflection-free
Window
covering
Adequate
contrast,
no glare or
distracting
reflections
Work surfaces:
allow flexible
arrangements,
spacious, glare-free
Ergonomics (5 of 5)
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More tasks
which give
increased
responsibility
autonomy or
decision-
making
Original
job
tasks
Job
enlargement
Job
enrichment
More tasks of the
same type
Behavioural approaches – Job enlargement and
enrichment

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Division of labour
Ergonomics
Behavioural
approaches
Empowerment
Team working
Flexible working
Staff treated
as a resource
Staff treated
as a cost
Emphasis on
managerial control
Emphasis on
commitment and
engagement of staff
Scientific
management

Self-managed
method study
Control versus commitment
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Operations Management
8th edition
Chapter 5
The Structure and
Scope of Operations
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In Chapter 5 – The structure and scope of operations –
Slack et al. identify the following key questions…

operations’ supply networks?
uld a supply network have?
be?
-house and what
to outsource?
Key questions
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Operations performance should be seen as a
whole supply chain issue
Benefits of looking at the whole supply chain include:
It helps an understanding of competitiveness.
It helps to identify the significant links in the network.
It helps focus on long-term issues.
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Design
Manufacture
nacelle parts

Assemble
nacelle
Install Operate
Manufacture
tower/blades
Company A
One wind turbine company's vertical integration
position (1 of 3)
Blades
Tower
Nacelle details
Parts of the supply chain
owned by this company
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Design
Manufacture
nacelle parts

Assemble
nacelle Install
Operate
Manufacture
tower/blades
Company B
position (2 of 3)
Blades
Tower
Nacelle details
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Design
Manufacture
nacelle parts
Assemble

nacelle
Install Operate
Manufacture
tower/blades
Company C
position (3 of 3)
Blades
Tower
Nacelle details
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Performance
objective
‘Do it yourself’
In-house supply

‘Buy it in’
Outsourced supply
Quality The origins of any quality
problems usually easier to
trace in-house and
improvement can be more
immediate but can be some
risk of complacency.
Supplier may have specialized
knowledge and more
experience, also may be
motivated through market
pressures, but communication
more difficult.
Speed Can mean synchronized
schedules which speeds
throughput of materials and
information, but if the operation

has external customers,
internal customers may be low
priority.
Speed of response can be built
into the supply contract where
commercial pressures will
encourage good performance,
but there may be significant
transport/delivery delays.
How outsourcing may affect performance
objectives (1 of 3)
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Performance
objective
In-house supply
‘Buy it in’

Outsourced supply
Dependability Easier communications can
help dependability, but, if the
operation also has external
customers, internal customers
may receive low priority.
Late delivery penalties in the
supply contract can encourage
good delivery performance, but
organizational barriers may
inhibit in communication.
Flexibility Closeness to the real needs of
a business can alert the in-
house operation to required
changes, but the ability to
respond may be limited by the
scale and scope of internal
operations.

Outsource suppliers may be
larger with wider capabilities
than in-house suppliers and
more ability to respond to
changes, but may have to
balance conflicting needs of
different customers.
objectives (2 of 3)
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Performance
objective
In-house supply
‘Buy it in’
Outsourced supply

Cost In-house operations do not
have to make the margin
required by outside suppliers
so the business can capture
the profits which would
otherwise be given to the
supplier, but relatively low
volumes may mean that it is
difficult to gain economies of
scale or the benefits of process
innovation.
Probably the main reason why
outsourcing is so popular.
Outsourced companies can
achieve economies of scale
and they are motivated to
reduce their own costs
because it directly impacts on

their profits, but costs of
communication and
coordination with supplier need
to be taken into account.
objectives (3 of 3)
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Figure 5.11
The decision logic of outsourcing
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The direction, extent and balance of an
operation’s vertical integration

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The balance of capacity
Capacity can either lead or lag demand.
Inventory can be used to smooth out the peaks.
Spare capacity can be used to supply other
operations.
The danger of this is that the original operation
may receive a lower level of service.
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Figure 5.7
(a) Capacity-leading and capacity-lagging
strategies

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Figure 5.7
(b) Smoothing with inventories means using the excess
capacity in one period to produce inventory that supplies
the under-capacity period

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