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

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 Outline
Human Resource Strategy for Competitive Advantage
Labor Planning
Work Schedules
Job Classifications and Work Rules
Job Design
Labor Specialization
Job Expansion
Motivation and Incentive Systems
Ergonomics and the Work Environment
The Visual Workplace
Labor Standards
Historical Experience
Time Studies
Ethics

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 Learning Objectives

1. Describe labor planning issues

2. Identify the major issues in job design
3. Identify major ergonomic and work
environment issues
5. Establish labor standards
6. Compute the normal and standard
times in a time study

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 Rusty Wallaces NASCAR
Racing Team
High performance pit crews are a key
element of a successful race team and
pit crew members can earn $100,000
per year for changing tires!
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 Wallaces 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
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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 Labor Planning
Employment Stability Policies
1. Follow demand exactly
Matches direct labor costs to production
Labor is treated as a variable cost

2. Hold employment constant

Maintains trained workforce
Labor is treated as a fixed cost

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 The Workplace
Work Schedules
Standard work schedule
Flex-time
Flexible work week
Part-time

Job Classification and Work Rules

Specify who can do what
Specify when they can do it
Often result of union contracts
Restricts flexibility and consequently
efficiency of production
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Job Design:
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 Design:
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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 Core Job Characteristics
Jobs should include the following
characteristics

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

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Job Design Continuum
Self-directed
teams

Empowerment

Self-direction
Enrichment

Enlargement

Specialization

Job expansion
Figure 10.3

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Motivation and Incentive
Systems
Bonuses
Profit-sharing
Gain sharing
Incentive plans
Knowledge-based systems

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Ergonomics and the Work
Environment
Ergonomics is the study of the
interface between man and
machine
Often called
human factors
Operator input
to machines

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

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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
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 The Visual Workplace
Visual utensil holder A 3-minute service
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
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 Labor Standards
Manpower planning depends on a
knowledge of the labor required
Labor standards are the amount of
time required to perform a job
Labor standards determine labor
requirements, costs, and fair work
Necessary for determining staffing
requirements
Important to labor incentive systems

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 Time Studies

Involves timing a sample of a

workers 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
- Compute average observed time:

- Determine performance rating and normal time:

- Sum normal times of elements to find task normal time

- Compute the standard time

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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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 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% observations (marked with *)
1. Delete unusual or nonrecurring
sort envelopes
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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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

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 In-Class Problems from the
Lecture Guide Practice Problems
Problem 2:
Develop an Activity Chart for doing three loads of laundry.

Time Operator Machine 1 Machine 2

Washer Dryer
Load clothes and Being loaded Idle
detergent in to
Machine 1
Idle Run Idle
Remove clothes Being Idle
from Machine 1 unloaded
Load clothes into Idle Being loaded
Machine 2
Load clothes and Being loaded Run
detergent into
Machine 1
Idle Run Run
Remove clothes Idle Being unloaded
from Machine 2
Hang clothes Idle Idle
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 In-Class Problems from the
Lecture Guide Practice Problems

Problem 3:
Carolyn Barrett, a marketing surveyor, takes an average of 10
minutes to complete a particular questionnaire. Carolyns
performance rating (pace) is 110% and there is an allowance of 15%.

What is the Normal time for completing this questionnaire?

What is the Standard time for completing this questionnaire?

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 In-Class Problems from the
Lecture Guide Practice Problems

Problem 5:
The two steps in preparing chocolate candy bars are molding and
packaging. Personal fatigue and delay allowances are set at 15%.
The molding machine operator is rated at 110% and the packer is
rated at 80%. Observed times per batch are given below.

Determine the Normal and standard times for both tasks.

Observed Time in Minutes

Task 1 2 3 4
Molding 26 30 29 31
Packing 45 50 35 30

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