Human Resources, Job

10 Design, and Work

Measurement

PowerPoint presentation to accompany

Heizer and Render
Operations Management, 10e
Principles of Operations Management, 8e

PowerPoint slides by Jeff Heyl

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

 Outline
 Global Company Profile: Rusty
Wallace’s NASCAR Racing Team
 Human Resource Strategy for
Competitive Advantage
 Constraints on Human Resource Strategy
 Labor Planning
 Employment-Stability Policies
 Work Schedules
 Job Classifications and Work Rules
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 2
 Outline – Continued
 Job Design
 Labor Specialization
 Job Expansion
 Psychological Components of Job
Design
 Self-Directed Teams
 Motivation and Incentive Systems
 Ergonomics and the Work
Environment
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 3
 Outline – Continued
 Methods Analysis
 The Visual Workplace
 Labor Standards
 Historical Experience
 Time Studies
 Predetermined Time Standards
 Work Sampling
 Ethics
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 4
 Learning Objectives
When you complete this chapter you
should be able to:

1. Describe labor planning policies

2. Identify the major issues in job design
3. Identify major ergonomic and work
environment issues
4. Use the tools of methods analysis

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 5

 Learning Objectives
When you complete this chapter you
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

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 6

 Rusty Wallace’s NASCAR
Racing 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
team
 Pit crew members can earn
$100,000 per year – for changing
tires!
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 7
 Rusty Wallace’s NASCAR
Racing Team

 Each position has very specific

work standards
 Pit crews are highly organized
and go though rigorous physical
training
 Pit stops are videotaped to look
for improvements

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 Rusty Wallace’s NASCAR
Racing Team

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 Human Resource Strategy

The objective of a human resource

strategy is to manage labor and
design jobs so people are effectively
and efficiently utilized

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 Human Resource Strategy
1. People should be effectively utilized
within the constraints of other
operations management decisions
2. People should have a reasonable quality
of work life in an atmosphere of mutual
commitment and trust

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 Constraints on Human
Resource Strategy
Product strategy Process strategy
• Skills needed • Technology
• Talents needed

e
• Machinery and

ur
• Materials used W
ha

ed
equipment used
t

oc
• Safety • Safety

Pr
Schedules Individual differences
• Time of day When Who • Strength and
• Time of year HUMAN fatigue
(seasonal) RESOURCE • Information
• Stability of STRATEGY processing and
schedules response

Location strategy Layout strategy

• Climate • Fixed position
re

H
he

ow
• Temperature • Process
W

• Noise • Assembly line

• Light • Work cell
• Air quality • Product
© 2011 Pearson Education, Inc. publishing as Prentice Hall Figure 10.1 10 - 12
 Labor Planning
Employment Stability Policies
1. Follow demand exactly
 Matches direct labor costs to
production
 Incurs costs in hiring and
termination, unemployment
insurance, and premium wages
 Labor is treated as a variable cost

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 Labor Planning
Employment Stability Policies
2. Hold employment constant
 Maintains trained workforce
 Minimizes hiring, termination, and
unemployment costs
 Employees may be underutilized
during slack periods
 Labor is treated as a fixed cost

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 Work Schedules
 Standard work schedule
 Five eight-hour days
 Flex-time
 Allows employees, within limits, to
determine their own schedules
 Flexible work week
 Fewer but longer days
 Part-time
 Fewer, possibly irregular, hours

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 Job Classification and
Work Rules
 Specify who can do what
 Specify when they can do it
 Specify under what conditions
they can do it
 Often result of union contracts
 Restricts flexibility in assignments
and consequently efficiency of
production
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 Job Design
 Specifying the tasks that
constitute a job for an individual
or a group
1. Job specialization
2. Job expansion
3. Psychological components
4. Self-directed teams
5. Motivation and incentive systems

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 Labor Specialization
 The division of labor into unique tasks
 First suggested by Adam Smith in 1776
1. Development of dexterity
2. Less loss of time
3. Development of specialized tools
 Later Charles Babbage (1832) added
another consideration
1. Wages exactly fit the required skill
required

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 Job Expansion
 Adding more variety to jobs
 Intended to reduce boredom
associated with labor specialization
 Job enlargement
 Job rotation
 Job enrichment
 Employee empowerment

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 Job Enlargement
Enriched job
Planning
(Participate in a cross-
function quality
improvement team)

Enlarged job
Task #3 Present job Task #2
(Lock printed circuit (Manually insert and (Adhere labels
board into fixture for solder six resistors) to printed
next operation) circuit board)

Control
(Test circuits after
assembly)
Figure 10.2
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 Psychological Components
of Job Design
Human resource strategy requires
consideration of the psychological
components
of job design

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 Hawthorne Studies
 They studied light levels, but discovered
productivity improvement was
independent from lighting levels
 Introduced psychology into the workplace
 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

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 Core Job Characteristics
Jobs should include the following
characteristics

1. Skill variety
2. Job identity
3. Job significance
4. Autonomy
5. Feedback

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 23

 Job Design Continuum
Self-directed
teams

Empowerment

Self-direction
Enrichment

Enlargement

Specialization

Job expansion
Figure 10.3

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 Self-Directed Teams
 Group of empowered individuals
working together to reach a
common goal
 May be organized for long-term or
short-term objectives
 Effective because
 Provide employee empowerment
 Ensure core job characteristics
 Meet individual psychological needs
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 25
 Self-Directed Teams
To maximize effectiveness, managers should
 Ensure those who have legitimate
contributions are on the team
 Provide management support
 Ensure the necessary training
 Endorse clear objectives and goals
 Financial and non-financial rewards
 Supervisors must release control

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 26

 Benefits of Teams and
Expanded Job Designs
 Improved quality of work life
 Improved job satisfaction
 Increased motivation
 Allows employees to accept more
responsibility
 Improved productivity and quality
 Reduced turnover and absenteeism
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 27
 Limitations of Job
Expansion
1. Higher capital cost
2. Individuals may prefer simple jobs
3. Higher wages rates for greater skills
4. Smaller labor pool
5. Higher training costs

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 28

 Limitations of Job
Expansion
1. Higher capital cost
2. Individuals may prefer simplenjobs
nual
Average A
3. Higher wages rates for ining Hou
Tragreater rs/
skills
Employee
4. Smaller labor pool 7
U.S.
5. Higher training costs den 170
Swe
Japan 200

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 Motivation and Incentive
Systems
 Bonuses - cash or stock options
 Profit-sharing - profits for distribution to
employees
 Gain sharing - rewards for
improvements
 Incentive plans - typically based on
production rates
 Knowledge-based systems - reward for
knowledge or skills
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 30
 Ergonomics and the Work
Environment
 Ergonomics is the study of the
interface between man and
machine
 Often called
human factors
 Operator input
to machines

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 31

 Ergonomics and Work
Methods
 Feedback to operators
 The work
environment
 Illumination
 Noise
 Temperature
 Humidity

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 32

 Recommended Levels of
Illumination

Figure 10.4A

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 Levels of 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

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 34

 Decibel Levels

Table 10.4B
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 35
 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
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 36
 Flow Diagram

Welding

From
Storage bins
press
mach. Paint
shop
Mach. 3 Mach. 4
Machine 1

Mach. 2

Figure 10.5 (a)

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 37
 Flow Diagram

Machine 4 Welding
Machine 3
Paint
Machine 2 shop
Machine 1
From
press Storage
mach. bins

Figure 10.5 (b)

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 Process
Chart

Figure 10.5 (c)

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 Activity Chart

Figure 10.6
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 Operation Chart

Figure 10.7
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 The Visual Workplace
 Use low-cost visual devices to
share information quickly and
accurately
 Displays and graphs replace
printouts and paperwork
 Able to provide timely information
in a dynamic environment
 System should focus on
improvement
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 42
 The Visual Workplace
Visual signals can take many forms
and serve many functions

 Present the big picture

 Performance
 Housekeeping

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 The Visual Workplace
Visual utensil A “3-minute service”
holder encourages clock reminds employees
housekeeping of the goal

Figure 10.8
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 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

All systems go
Part A Part B Part C
Andon

Figure 10.8
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 The Visual Workplace

Quantities in bins indicate

ongoing daily requirements
and clipboards provide
information on schedule Process specifications and
changes operating procedures are
posted in each work area

Figure 10.8
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 46
 Labor Standards
 Effective manpower planning is
dependent on a knowledge of the
labor required
 Labor standards are the amount
of time required to perform a job
or part of a job
 Accurate labor standards help
determine labor requirements,
costs, and fair work
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 47
 Labor Standards
 Started early in the 20th century
 Important to both manufacturing
and service organizations
 Necessary for determining
staffing requirements
 Important to labor incentive
systems

© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 48

 Meaningful Standards Help
Determine
1. Labor content of items produced
2. Staffing needs
3. Cost and time estimates
4. Crew size and work balance
5. Expected production
6. Basis of wage incentive plans
7. Efficiency of employees
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 49
 Labor Standards

May be set in four ways:

1. Historical experience
2. Time studies
3. Predetermined time standards
4. Work sampling

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 Historical Experience
 How the task was performed last
time
 Easy and inexpensive
 Data available from production
records or time cards
 Data is not objective and may be
inaccurate
 Not recommended
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 51
 Time Studies

 Involves timing a sample of a

worker’s performance and using
it to set a standard
 Requires trained and experienced
observers
 Cannot be set before the work is
performed

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 Time Studies

1. Define the task to be studied

2. 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

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 Time Studies
5. Compute average observed time
Sum of the times recorded
Average to perform each element
observed =
time Number of observations

6. Determine performance rating

and normal time
Average
Performance
Normal time = observed x rating factor
time

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 Time Studies

7. Add the normal times for each

element to develop the total normal
time for the task
8. Compute the standard time

Total normal time

Standard time =
1 - Allowance factor

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 Rest Allowances
 Personal time allowance
 4% - 7% of total time for use of
restroom, water fountain, etc.
 Delay allowance
 Based upon actual delays that occur
 Fatigue allowance
 Based on our knowledge of human
energy expenditure

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 Rest Allowances
1. Constant allowance
(A) Personal allowance ……………... 5
(B) Basic fatigue allowance ………… 4
2. Variable allowances:
(A) Standing allowance ……………… 2
(B) Abnormal position
(i) Awkward (bending) ………… 2
(ii) Very awkward (lying,
stretching) …………………… 7
Table 10.1
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 Rest Allowances
(C) Use of force or muscular energy in
lifting, pulling, pushing
Weight lifted (pounds)
20 …………………………………… 3
40……………………………………. 9
60……………………………………. 17
(D) Bad light:
(i) Well below recommended…. 2
(ii) Quite inadequate……………. 5
Figure 10.1
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 Rest Allowances
(E) Atmospheric conditions
(heat and humidity) …………… 0-10
(F) Close attention:
(i) Fine or exacting……………….. 2
(ii) Very fine or very exacting…… 5
(G) Noise level:
(i) Intermittent—loud…………….. 2
(ii) Intermittent—very loud
or high-pitched………………... 5
Figure 10.1
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 Rest Allowances
(H) Mental strain:
(i) Complex or wide span
of attention.…………………….. 4
(ii) Very complex………………….. 8
(I) Tediousness:
(i) Tedious…………..……………… 2
(ii) Very tedious.…………………… 5

Figure 10.1
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 Time Study Example 1
Average observed time = 4.0 minutes
Worker rating = 85%
Allowance factor = 13%

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

= (4.0)(.85)
= 3.4 minutes

Normal time 3.4 3.4

Standard time = = =
1 - Allowance factor 1 - .13 .87
= 3.9 minutes

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 Time Study Example 2
Allowance factor = 15%
Cycle Observed (in minutes)
Performance
Job 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%
(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 minutes
Average time for B = (2 + 3 + 2 + 1 + 3)/5 = 2.2 minutes
Average time for C = (2 + 1 + 2 + 1)/4 = 1.5 minutes

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 Time Study Example 2
3. Compute the normal time for each element

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

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

Normal time for B = (2.2)(1.05) = 2.31 minutes
Normal 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

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 Time Study Example 2
5. Compute the standard time for the job

Total normal time

Standard time =
1 - Allowance factor

15.36
= = 18.07 minutes
1 - .15

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 Determine Sample Size

1. How accurate we want to be

2. The desired level of confidence
3. How much variation exists within
the job elements

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 Determine Sample Size
2
zs
Required sample size = n =
hx

where h = accuracy level (acceptable

error) 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 sample
x = mean of the initial sample
n as Prentice
© 2011 Pearson Education, Inc. publishing = Hall required sample size 10 - 66
 Determine Sample Size
2
Commonsize
z Values zs
Required sample =n=
hx
Desired z Value
Confidence
where h
(%) = (standard deviation
accuracy levelrequired for
(acceptable
desired level of confidence)
error) desired in percent of the job
90.0 1.65
element expressed as a decimal
95.0
z = number 1.96
of standard
95.45deviations required 2.00 for the desired level
99.0 of confidence 2.58
99.73s = standard3.00
deviation of the
initial sample Table 10.2
x = mean of the initial sample
n as Prentice
© 2011 Pearson Education, Inc. publishing = Hall required sample size 10 - 67
 Time Study Example 3
Desired accuracy with 5%
Confidence level = 95%
Sample standard deviation = 1.0
Sample mean = 3.00

h = .05 x = 3.00 s = 1.0

z = 1.96 (from Table S10.1 or Appendix I)
2
zs
n=
hx
2
1.96 x 1.0
n= = 170.74 ≈ 171
.05 x 3

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 Time Study Example 3
Variations
If desired accuracy h is expressed as an absolute
amount, substitute e for hx, where e is the
absolute amount of acceptable error
2
zs
n=
e

When the standard deviation s is not provided,

it must be computed

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

s= =
n-1 Number in sample - 1

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 New Tools
 With PDA software, you can study
elements, time, performance rate, and
statistical confidence intervals can be
created,
edited,
managed,
and logged
 Reduces or
eliminates
the need
for data entry

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 Predetermined Time
Standards
 Divide manual work into small basic
elements that have established times
 Can be done in a laboratory away from
the actual production operation
 Can be set before
the work is actually
performed
 No performance
ratings are necessary

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 MTM Table

Figure 10.9
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 MTM Example
Weight - less than 2 pounds
Conditions of GET - easy
Place accuracy - approximate
Distance range - 8 to 20 inches

Element Description Element Time

Get tube from rack AA2 35
Uncap, place on counter AA2 35
Get centrifuge tube, place at sample table AD2 45
Pour (3 seconds) PT 83
Place tubes in rack (simo) PC2 40
Total TMU 238
.0006 x 238 = Total standard minutes = .14

Table 10.4
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 Work Sampling
 Estimates percent of time a worker
spends on various tasks
 Requires random observations to
record worker activity
 Determines how employees allocate
their time
 Can be used to set staffing levels,
reassign duties, estimate costs, and
set delay allowances
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 74
 Work Sampling
1. Take a preliminary sample to obtain
estimates of parameter values
2. Compute the sample size required
3. Prepare a schedule for random
observations at appropriate times
4. Observe and record worker activities
5. Determine how workers spend their
time
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 75
 Work Sampling
Determining the sample size

z2 p(1 - p)
n=
h2
where n = required sample size
z = standard normal deviate
for desired confidence level
p = estimated value of
sample proportion
h = acceptable error level in
percent
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 76
 Work Sampling Example
Wants employees idle 25% of the time
Sample should be accurate within 3%
Wants to have 95.45% confidence in the results
z2 p(1 - p)
n=
h2
where n = required sample size
z = 2 for a 95.45% confidence
level
p = estimate of idle proportion
= 25% = .25
(2)2 (.25)(.75)
h = acceptable error of 3% = .
n= 03 2 = 833 observations
(.03)
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 Work Sampling Example
No. of
Observations Activity
485 On the phone or meeting with a welfare client
126 Idle
62 Personal time
23 Discussions with supervisor
137 Filing, meeting, and computer data entry
833

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
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 78
 Work Sampling Time
Studies
Salespeople

Sales in Travel
person 20%
20%
Telephone
sales Paperwork
12% 17%
Lunch and
personal
10%
Telephone
within firm Meetings
13% and other
8%

Figure 10.10

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 Work Sampling Time
Studies
Startup/exercise
Assembly-Line 3%
Employees
Breaks and lunch
10%

Dead time
between tasks
13%
Productive Unscheduled tasks
work and downtime
67% 4%
Cleanup
3%

Figure 10.10

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 Work Sampling
 Advantages of work sampling
 Less expensive than time study
 Observers need little training
 Studies can be delayed or interrupted
with little impact on results
 Worker has little
chance to affect
results
 Less intrusive

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 Work Sampling

 Disadvantages of work sampling

 Does not divide work elements as
completely as time study
 Can yield biased results if observer
does not follow random pattern
 Less accurate, especially when
job element times are short

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 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
work, and safe working conditions
 Helpful to work with government
agencies, trade unions, insurers,
and employees
© 2011 Pearson Education, Inc. publishing as Prentice Hall 10 - 83
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