Chapter-7 Job Design and Work Measurement Final.pptx

operation management

1. CHAPTER 7 Job Design and Work Measurement Kahsu Mebrahtu (Asst. Prof.) Mekelle University College of Business and Economics Department of Management Postgraduate Program(MBA) ninth edition

2. Job Design and Work Measurement Job Design Defined Job Design Decisions Trends in Job Design Work Measurement Basic Compensation Systems Financial Incentive Plans

3. What is Job Design? Defined-It determines the contents of a job. Job design is the function of specifying the work activities of an individual or group in an organizational setting. The objective of job design is to develop jobs that meet the requirements of the organization and its technology and that satisfy the jobholder’s personal and individual requirements.

4. Job Design Decisions How Why When Where What Who Mental and physical characteristics of the work force Tasks to be performed Geographic locale of the organization; location of work areas Time of day; time of occurrence in the work flow Organizational rationale for the job; object- ives and mot- ivation of the worker Method of performance and motivation Ultimate Job Structure

5. Trends in Job Design Quality control as part of the worker's job. Cross-training workers to perform multiskilled jobs. Employee involvement and team approaches to designing and organizing work. "Informating" ordinary workers through telecommunication networks and computers.

6. Trends in Job Design (Continued) Extensive use of temporary workers. Automation of heavy manual work. Organizational commitment to providing meaningful and rewarding jobs for all employees.

7. Approaches to Job Design Mechanistic approach cater for jobs that are simple, routine, repetitive tasks such as assembly jobs, packing processes. Motivational approach cater for jobs that deal with services, tasks that involve much movements, variety of works fulfills 5 core job dimensions: use skills variety, tasks variety, task identity, task autonomy and feedback Biological approach consider ergonomics factors: to design a job that fits the worker’s physiological nature, and not to fit the worker to the job Perceptual approach consider mental factors and demands that do not exceed the mental capabilities of the worker 7

8. Job Design Feasibility Issues Technical feasibility: Whether the job is within physical & mental capabilities of the workforce Economic feasibility: Whether the cost of performing the job is less than its added value Behavioral feasibility: Whether the job is intrinsically satisfying

9. Workplace Changes Labor/organizational changes. More technology, fewer workers and organizational layers. Increased employee involvement. Composition (gender/ethnic diversity). Thus, managers have different roles. Mentors or coaches rather than “bosses.”

10. Employee Empowerment Assume roles once owned by managers. Increases employee motivation and hence productivity. Managers must share: Organizational performance information. Rewards (based on organizational performance). Knowledge/expertise needed to enhance organizational performance. Decision-making power.

11. Involvement Increases trust and commitment Improves employee communications and attitudes Involved employees are more likely to generate new ideas Involved employees achieve a higher quality of work life which generates higher levels of commitment leading to higher productivity

12. Work Methods –How a job is to be performed ? Work methods deals with a better ways of performing jobs and/tasks This can be undertaken using: operation charts , worker-machine charts , activity charts , etc The end result may be: improved labour utilization, machine utilization, material utilization, reducing operating cost, and standardization of operations and products .

13. Con… Process Flowchart- is used to analyze how the steps of a job or how a set of jobs fit into the over all flow of the production process. Eg. The flow of a product through a manufacturing assembly process. Worker-machine Chart –shows the amount of time a worker and a machine are working or idle in a job.

14. Work Methods Studies Individual/group operations : use charting (operations charts, worker-machine charts, simultaneous motion charts, activity charts) with time studies or standard time data to analyze/evaluate work efficiency . Overall operations : identify non-value-adding (waste) and inefficient activities for process/productivity improvement

15. Cont.. Work Methods Design Aids Activity Objective of Study Study Techniques 1 Production process Eliminate or combine steps; shorten transport distance ;identify delays Flow charts ,service blue prints ,process charts 2 Worker at fixed workplace Simplify method; minimize motions Operations charts , simo charts , 3 Worker’s interaction with equipment Minimize idle time; find number or combination of machines to balance cost of worker and machine idle time Activity chart, worker-machine charts 4 Worker’s interaction with other workers Maximize productivity ; minimize interference Activity charts, process charts

16. Study the Job Picks up wire in left hand and moves it to the terminal Simultaneously picks up solder iron in right hand and moves to the terminal Solders wire to terminal and replaces solder iron in holder Solders terminal #1, then #2 - #6, going right to left

17. Flowchart the Process

18. Summary: Work Methods In developing work methods that are motion efficient , the analyst tries to: Eliminate unnecessary motions Combine activities Reduce fatigue Improve the arrangement of the workplace Improve the design of tools and equipment

19. Work Measurement Defined Work measurement is a process of analyzing jobs for the purpose of setting time standards . It determines the length of time t o complete a job Why use it? Schedule work and allocate capacity Motivate and measure work performance Evaluate performance Provide benchmarks

20. Methods of Work Measurement Stopwatch Time Study- development of a time standard based on observations of one worker taken over a number of cycles Standard Elemental Times – time standards derived from a firm’s historical time data Predetermined Time Standards – Published data based on extensive research to determine standard elemental times Work Sampling – Technique for estimating the proportion of time that a worker or machine spends on various activities

21. Important Terms Observed Time (OT) = the average of the recorded times . OT=∑xi/n n =No observations. It is the length of time a worker should take to perform a job if there are no delays or interruptions Normal Time(NT) = OT adjusted for worker performance i.e , NT=OT x PR PR =performance rating PR= is used to adjust OT to “average “pace Standard Time(ST ) =Normal time plus an allowance for delays i.e , ST= NTxAF

22. Work Measurement Standard time: The length of time a qualified worker, using appropriate tools & procedures, will take to complete a job Standard time is used in: Costing the labor component of products Tracking employee performance Scheduling & planning required resources

23. Setting Standard Times Step 1 : Choose the specific job to be studied Step 2 : Inform the worker of the study Step 3 : Break the job into distinguishable elements Step 4 : Calculate the number of cycles to observe Step 5 : Time each element, record data & rate the worker’s performance Step 6 : Compute the standard time

24. Con… Compute normal time Compute standard time Copyright 2006 John Wiley & Sons, Inc. Supplement 8- 24 Normal Cycle Time = NT =  N t Normal Time = (Elemental average) x (rating factor) N t = ( t )( RF ) ST = (NT)(1 + AF) Standard Time = (normal cycle time) x (1 + allowance factor)

25. Con…. Performance Rating The performance of the worker should be rated by the person doing the study. Hence a performance rating factor of : 100% reflects normal work performance Below 100% represents a below average performance above 100% indicates performance better than normal Usually rating range between 80% and 120%

26. Time Study Normal Time Formulas Normal time (NT) = Observed performance time per unit x (1+Performance rating) NT = Time worked x (1+Performance rating) Number of units produced

27. Time Study Standard Time Formulas Standard time = Normal time + (Allowances x Normal times) Standard time = NT(1 + Allowances) Standard time = NT . 1 - Allowances

28. Cont.. Allowances includes: Personal needs (washroom and coffee breaks), unavoidable work delays ( equipment break down or lack of materials ) and worker fatigue (physical or mental).

29. Doing a Time Study When making a time study several decisions are made to assure desired results: # of observations to make Desired level of accuracy Desired level of confidence for the estimated standard time Desired accuracy level is typically expressed as a % of the mean observed times In next column is a formula for determining the number of observations needed n: number of observations z: provides desired statistical confidence ( e.g .: 1.96 for 95%) s: observed standard deviation in time required to complete the task element a: desired accuracy or precision x-bar: the mean observed time to complete the task

30. Performing a Time Study Copyright 2006 John Wiley & Sons, Inc. Supplement 8- 30 Time Study Observation Sheet Identification of operation Sandwich Assembly Date 5/17 Operator Approval Observer Smith Jones Russell Cycles Summary 1 2 3 4 5 6 7 8 9 10  t Nt RF t Place ham, cheese, and lettuce on bread 1 2 3 4 Grasp and lay out bread slices Spread mayonnaise on both slices Place top on sandwich, Slice, and stack t t t t R R R R .11 .44 .79 1.13 1.47 1.83 2.21 2.60 2.98 3.37 .04 .05 .05 .04 .06 .05 .06 .06 .07 .05 .53 .053 1.05 .056 .04 .38 .72 1.05 1.40 1.76 2.13 2.50 2.89 3.29 .07 .06 .07 .08 .08 .08 .07 .07 .10 .09 .77 .077 .077 1.00 .11 .12 .14 .12 .12 .13 .13 .13 .14 .14 1.28 1.28 1.10 .141 .93 .23 .55 1.25 1.60 1.96 2.34 2.72 3.12 3.51 .12 .10 .08 .09 .12 .10 .11 .11 .10 .10 1.03 1.03 1.10 .113 .33 .67 1.01 1.34 1.71 2.07 2.44 2.82 3.24 3.61

31. Performing a Time Study (cont.) Copyright 2006 John Wiley & Sons, Inc. Supplement 8- 31 Normal time = (Elemental average)(rating factor) N t = ( t )( RF ) = (0.053)(1.05) = 0.056 Normal Cycle Time = NT =  N t = 0.387 ST = (NT) (1 + AF) = (0.387)(1+0.15) = 0.445 min Average element time = t = = = 0.053 S t 10 0.53 10

32. Performing a Time Study (cont.) Copyright 2006 John Wiley & Sons, Inc. Supplement 8- 32 Example 17.3 How many sandwiches can be made in 2 hours? = 269.7 or 270 sandwiches 120 min 0.445 min/sandwich

33. Reading Assignment Read on Work Sampling as method for work Measurement

34. Worker Compensation Systems Compensation is the third part of work system design Time-based plans (day pay) versus output-based systems (incentive pay) Group incentive plans: profit sharing & gain sharing Plans put part of a worker’s salary at risk Does the compensation system undermine teamwork? Does plan prevent free-riders not doing their fair share? Does the incentive plan encourage workers to support the long-term health of the organization? Pay –for-performance

35. Chapter :Summary Work system design involves job design, work measurements, and worker compensation. Relevant job design issues include design feasibility, the choice of human or machine, the use of teams, and the location where the work is to be done. Methods or process analysis is concerned with how the employee does the job and is used to make improvements. Work measurement is used to determine standard times and are usually based on time studies. Standard times are used for product costing, process evaluations, and for planning workloads and staffing.

36. Chapter :Summary (Continued) Doing a time study requires breaking the job into work elements and determining the number of observations. Work sampling involves random observations of a worker to determine the proportion of time spent on each activity. Standard times are developed with time studies, elemental time data, and predetermined time data. Worker compensation systems are time-based or out-put based and can be based on individual or group performance. Learning curves show the rate of learning that occurs when an employee repeats the same task over time.

37. Work Study 37 METHOD ANALYSIS to determine how to do a job - to study work method to develop best, standard operating procedure(SOP)) WORK MEASUREMENT to determine how long to do a job to determine standard time to establish labor standard - relative worth of a job