Operations

Management
Topic 5 – Human
Resources and Job
Design
School of Mechanical Engineering,
College of Engineering, UiTM Shah Alam

*Contents are based on Heizer, Jay, and Barry Render, Operations Management, 10th Edition, Pearson Education, USA, 2011
 LEARNING OUTCOMES
1. Understand human resource strategy constraints
and manpower planning
2. Understand job design; labor specialization, job
expansion, motivation and incentive systems, self
directed teams, ergonomics and work
environment
3. Apply and analyze job design methods analysis
4. Apply and analyze work measurement and
analysis
Human Resource Strategy

The objective of a human

resource strategy is to manage
labor and design jobs, so
people are effectively and
efficiently utilized
 Human Resource Strategy
Ensure that people:
1. Are effectively utilized within the constraints
of other operations management decisions
2. Have a reasonable quality of work life in an
atmosphere of mutual commitment and trust
Constraints on Human Resource Strategy

Product strategy Process strategy

• Skills needed • Technology
• Talents needed • Machinery and
• Materials used equipment used
• Safety • Safety

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

Location strategy Layout strategy

• Climate • Fixed position
• Temperature • Process
• Noise • Assembly line
• Light • Work cell
• Air quality • Product
 Human Resource Strategy
Three (3) distinct decisions areas of HR strategy:
(requirement for effective HR strategy)

1. Labor planning – determining staffing policies that

deal with (1) employment stability policies, (2)work
schedules, and (3) job classification and work rules
2. Job Design – specifies the tasks that constitute a
job for an individual or group
3. Labor Standards - amount of time required to
perform a job or part of a job formally or informally
(knowledge of the labor required)
 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
Job Design
 Labor Specialization
1. The division of labor into unique tasks
2. First suggested by Adam Smith in 1776
 Development of dexterity
 Less loss of time
 Development of specialized tools
3. Later Charles Babbage (1832) added another
consideration
 Wages exactly fit the required skill required
 Job Expansion
1. Adding more variety to jobs
2. Intended to reduce boredom associated
with labor specialization
 Job enlargement
 Job rotation
 Job enrichment
 Employee empowerment
Job Enlargement & Job Enrichment
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 circuit
next operation) board)

Control
(Test circuits after
assembly)
 Limitations of Job Expansion
1. Higher capital cost
2. Individuals may prefer simple jobs
3. Higher wage rates for greater skills
4. Smaller labor pool
5. Higher training costs
 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
Psychological Components of Job
Design
Human resource strategy requires consideration
of the psychological components of job design
 Hawthorne Studies
1. They studied light levels, but discovered
productivity improvement was independent
from lighting levels
2. Introduced psychology into the workplace
3. The workplace social system and distinct roles
played by individuals may be more important
than physical factors
4. Individual differences may be dominant in job
expectation and contribution
 Core Job Characteristics
Jobs should include the following characteristics:
1. Skill variety
2. Job identity
3. Job significance
4. Autonomy
5. Feedback
 Self-Directed Teams
1. Group of empowered individuals working
together to reach a common goal
2. May be organized for long-term or
short-term objectives
3. Effective because
 Provide employee empowerment
 Ensure core job characteristics
 Meet individual psychological needs
 Self-Directed Teams
To maximize effectiveness, managers should:
1. Ensure those who have legitimate
contributions are on the team
2. Provide management support
3. Ensure the necessary training
4. Endorse clear objectives and goals
5. Financial and non-financial rewards
6. Supervisors must release control
 Job Design Continuum
Self-directed
teams

Empowerment

Self-direction
Enrichment

Enlargement

Specialization

Job expansion
Benefits of Teams and Expanded Job
Designs
1. Improved quality of work life
2. Improved job satisfaction
3. Increased motivation
4. Allows employees to accept more
responsibility
5. Improved productivity and quality
6. Reduced turnover and absenteeism
 Motivation and Incentive Systems
1. Bonuses - cash or stock options
2. Profit-sharing - profits for distribution to
employees
3. Gain sharing - rewards for improvements
4. Incentive plans - typically based on
production rates
5. Knowledge-based systems - reward for
knowledge or skills
Ergonomics and the Work Environment
“Ergonomics (or human factors) is the scientific discipline
concerned with the understanding of the interactions
among human and other elements of a system, and the
profession that applies theory, principles, data and
methods to design in order to optimize human well-being
and overall system performance.” International Ergonomics Association
Executive Council, August 2000

 Often called human factors

 Operator input to machines
 Ergonomics and Work Methods
1. Feedback to operators
2. The work environment
▶Illumination
▶Noise
▶Temperature
▶Humidity
Recommended Levels of Illumination
 Levels of Illumination
TASK CONDITION TYPE OF TASK ILLUMINATION TYPE OF
OR AREA LEVEL ILLUMINATION

Small detail, extreme Sewing, inspecting 100 Overhead ceiling

accuracy dark materials lights and desk lamp

Normal detail, Reading, parts 20-50 Overhead ceiling

prolonged periods assembly, general lights
office work

Good contrast, fairly Recreational facilities 5-10 Overhead ceiling

large objects lights

Large objects Restaurants, stairways, 2-5 Overhead ceiling

warehouses lights
Decibel Levels
 HR & Job Design
Methods Analysis
1. Focuses on how task is performed
2. Used to analyze:
i. Movement of individuals or material
 Flow diagrams and process charts
ii. Activities of human and machine and crew activity
 Activity charts
iii. Body movement
 Operations charts
 Flow Diagram

Welding

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

Mach. 2
Flow Diagram

Machine 4
Welding
Machine 3
Paint
Machine 2 shop

From Machine 1
press Storage
mach. bins
 Process
Chart

© 2014 Pearson Education 10 - 30

Activity Chart
Operation Chart
 Labor Standards
1. Effective manpower planning is dependent
on a knowledge of the labor required
2. Labor standards are the amount of time
required to perform a job or part of a job
3. Accurate labor standards help determine
labor requirements, costs, and fair work
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
 Labor Standards
May be set in four ways:
1. Historical experience
2. Time studies
3. Predetermined time standards
4. Work sampling
 1. Historical Experience
1. How the task was performed last time
2. Easy and inexpensive
3. Data available from production records or
time cards
4. Data is not objective and may be
inaccurate
5. Not recommended
 2. Time Studies
1. Involves timing a sample of a worker’s
performance and using it to set a standard
2. Requires trained and experienced
observers
3. Cannot be set before the work is
performed
 2. Time Studies
1. Observe and 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
 2. Time Studies
5. Compute average observed time
Sum of the times recorded to
Average perform each element
observed =
time Number of observations

6. Determine performance rating and

normal time
Average Performance
Normal time = observed x
rating factor
time
 2. 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
 Rest Allowances
1. Personal time allowance
 4% - 7% of total time for use of restroom, water
fountain, etc.
2. Delay allowance
 Based upon actual delays that occur
3. Fatigue allowance
 Based on our knowledge of human energy
expenditure
 Rest Allowances
Allowance Factors (in percentage) for Various Classes of
TABLE
Work
1. Constant allowances:
(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
 Rest Allowances
Allowance Factors (in percentage) for Various Classes
TABLE
of Work
(C) Use of force or muscular energy in lifting, pulling, pushing
Weight lifted (pounds)
20 ……………………………………………………….. 3
40 ……………………………….................................. 9
60 ………………………………………………………. 17
 Rest Allowances
Allowance Factors (in percentage) for Various Classes
TABLE
of Work
(D) Bad light
(i) Well below recommended ………………………… 2
(ii) Quite inadequate …………………………………… 5
(E) Noise level:
(i) Intermittent–loud …………………………..………. 2
(ii) Intermittent–very loud or high pitched ..…………. 5
 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%
OBSERVATIONS (MIN) 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, and seal envelopes 2 1 5* 2 1 110%

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

© 2014 Pearson Education 10 - 46

 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
=
1 - .15
= 18.07 minutes

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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

Required sample size =

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
= mean of the initial sample
n = required sample size

© 2014 Pearson Education 10 - 50

 Determine Sample Size

Required sample size =

TABLE
Where; h = accuracy level (acceptable error) desired in Common z-Values
percent of the job element expressed as a
decimal z-VALUE
(STANDARD
z = number of standard deviations required for DEVIATION
the desired level of confidence REQUIRED FOR
DESIRED DESIRED LEVEL
s = standard deviation of the initial sample CONFIDENCE OF
(%) CONFIDENCE)
= mean of the initial sample 90.0 1.65
n = required sample size 95.0 1.95
95.45 2.00
99.0 2.58
99.73 3.00

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 Time Study Example 3
Desired accuracy with 5%
Confidence level = 95%
Sample standard deviation = 1.0
Sample mean = 3.00
h = .05 = 3.00 s = 1.0
z = 1.96 (from Table S10.1 or Appendix I)

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

© 2014 Pearson Education 10 - 53

 Time Study Example 3
Variations
When the standard deviation s is not provided, it must
be computed:

Where;

© 2014 Pearson Education 10 - 54

 3. Predetermined Time Standards

1. Divide manual work into small basic

elements that have established times
2. Can be done in a laboratory away from the
actual production operation
3. Can be set before the work is performed
4. No performance ratings are necessary
MTM Table
 MTM Example
Weight – less than 2 pounds Place accuracy – approximate
Conditions of GET – easy Distance range – 8 to 20 inches

TABLE 10.3 MTM-HC Analysis: Pouring Tube Specimen

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
 4. Work Sampling
1. Estimates percent of time a worker
spends on various tasks
2. Requires random observations to record
worker activity
3. Determines how employees allocate their
time
4. Can be used to set staffing levels,
reassign duties, estimate costs, and set
delay allowances
 4. 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
 4. Work Sampling

Determining the sample size:

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 (as a decimal)
 Work Sampling Example
Estimates employees idle 25% of the time
Sample should be accurate within ± 3%
Wants to have 95.45% confidence in the results

Where; n = required sample size

z = 2 for a 95.45% confidence level
p = estimate of idle proportion = 25% = .25
h = acceptable error of 3% = .03
 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
 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%

© 2014 Pearson Education 10 - 63

 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
© 2014 Pearson Education 10 - 64
 4.Work
WorkSampling
Sampling

Advantages of work sampling:

1. Less expensive than time study
2. Observers need little training
3. Studies can be delayed or interrupted with
little impact on results
4. Worker has little chance to affect results
5. Less intrusive
 4.Work
WorkSampling
Sampling
Disadvantages of work sampling:
1. Does not divide work elements as
completely as time study
2. Can yield biased results if observer does
not follow random pattern
3. Less accurate, especially when
job element times are short
 Ethics

1. Fairness, equity, and ethics are important

constraints of job design
2. Important issues may relate to equal
opportunity, equal pay for equal work, and
safe working conditions
3. Helpful to work with government agencies,
trade unions, insurers, and employees
 Let’s Recap
1. Understand human resource strategy
constraints and manpower planning
2. Understand Job design; labor specialization,
job expansion, motivation and incentive
systems, self directed teams, ergonomics
and work environment
3. Apply and Analyze HR and Job Design
Methods Analysis
4. Apply and Analyze Work measurement and
analysis