Design of Work Systems

1. Design of Work Systems CHAPTER SEVEN Kit Laserna

2. OPERATIONS STRATEGY

3. JOB DESIGN

4. JOB DESIGN The act of specifying the contents of and methods of jobs. What? Who? How? Where? Ergonomics – Incorporation of human factors in the design of the workplace (design of equipment, work methods and overall design of the work environment)

5. Factors that Affect Job Design Workers and managers consultation Managerial support Written record establishment Elements Efficiency school – systematic and logical Behavioral school- satisfaction of wants and needs

6. SPECIALIZATION Work that concentrates on some aspect of product or service Advantages For management: For labor 1. Simplifies training 1. Low education and skill requirements 2. High productivity 2. Minimum responsibilities 3. Low wage cost 3. Little mental effort Disadvatanges Difficult 1. Monotonous work 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for sel-fulfillment

7. BEHAVIORAL APPROACHES TO JOB DESIGN Job Enlargement – Giving a worker a larger position of the total task Job Rotation – Workers periodically exchange jobs Job Enrichment – Increasing responsibility for planning and coordination tasks, by vertical loading. Increase the motivational power of jobs by increasing worker satisfaction through improvement in the quality of work life

8. MOTIVATION Key factor in many aspects of work life Influence quality and productivity Contributes to the work environment Trust – influences motivation, productivity and employee-management relations

9. Why do people work? Compensation Socialization Self-actualization Status Physiological aspects of work Sense of purpose and accomplishment

10. TEAMS Short-term team Long-term team Self-directed teams (self-managed teams)- designed to achieve higher level of teamwork and employee involvement. Althoug

11. Successful Team Building Requirements Clearly stated and commonly held vision and goals Talent and skills required to meet goals Clear understanding of team members’ roles and functions Efficient and shared understanding of procedures and norms Effective and skilled interpersonal relations A system of reinforcement and celebration Clear understanding of the team’s relationship to the greater organization

12. METHODS ANALYSIS

13. METHOD ANALYSIS Analyzing how a job is done Can be a good source of productivity improvements DIFFERENT SOURCES Changes in tools and equipment. Changes in product design or introduction of new products Changes in materials or procedures Government regulations or contractual agreements Other factors (e.g., accidents, quality problems)

14. New job – establish a method Existing job – analysts observe and improve

15. Procedure in Method Analysis Identify the operation to be studied and gather facts about tools, equipment, materials etc. (existing jobs) job discussion with operator and supervisor for input (existing jobs) Study and document the present method using process charts. (new jobs) develop charts based on info about activities involved.

16. Procedure in Method Analysis Analyze the job Propose new methods Install new methods Follow up implementation to assure that improvements have been achieved

17. Selecting an Operation to Study GUIDELINES FOR SELECTING A JOB; Jobs that… Have a high labor content Are done frequently Are unsafe, tiring, unpleasant and/ore noisy Are designated as problems

18. Documenting the Current Method Charts, graphs and verbal descriptions of the way job is being performed Will provide good understanding of the job and serve as a basis of comparison against which revisions can be judged.

19. Analyzing th Job and Proposing New Methods Facilitated by the use of various charts such as; flow process charts worker-machine charts

20. Flow Process Charts Used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials. Helpful in identifying non-productive part of the process Used to study the flow od material through a department Used to study the sequence that documents or forms take. Used in analyzing movement and care of surgical patients Layout of department and grocery stores Mail handling

21. Why is there delay or storage at this point? How can travel distances be shortened or avoided? Can materials handling be reduced? Would a rearrangement of the workplace result in greater efficiency? Can similar activities be grouped? Would the use of additional or improved equipments?

22. Process Chart Symbols

23. Flow Process Chart

24. Worker-machine chart Used to determine portions of a work cycle during which an operator and equipment are busy or idle.

25. Installing the Improved Method Convinced manager + cooperating workers NOTE: If the proposed method constitutes a major change from the way the job has been performed in the past, workers may have to undergo a certain amount of retraining and full implementation may take time to achieve.

26. The follow-up To ensure that changes has been made To ensure that the proposed method is functioning as expected

27. MOTION STUDY Systematic study of the human motions used to perform an operation. Purpose: To eliminate unnecessary motions To identify the best sequence of motions for maximum efficiency.

28. Motion study techniques Motion study principles Analysis of therbligs Micromotion study charts

29. Motion study principles Guidelines for designing motion-efficient work procedure Eliminate unnecessary motions Combine Activities Reduce Fatigue Improve the arrangement of the workplace Improve the design of tools and equipment

30. Therbligs Basic elemental motions that make up a job NATURE: Search- hunting for an item with hands and/or eyes Select – means to choose from a group of objects Grasp – to take hold of an object Hold – retention of an object after being grasp Transport load – movement of an object after hold Release – deposit the object

31. Micromotion study Use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze.

32. WORKING CONDITIONS Temperature and Humidity Ventilation Illumination Noise and vibrations Work Breaks Safety **Causes of Accidents – carelessness and Accident Hazards

33. WORK MEASUREMENT Determining how long it should take to do the job

34. Standard time The amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw materials, and workplace arrangement Periodic time studies may be used to update the standards The most commonly used method of time elements are; Stopwatch time study Standard elemental times Predetermined time standards Work sampling

35. STOPWATCH TIME STUDY Introduced by Frederick Winslow Taylor – late 19 th century Most widely used method of work instrument Especially appropriate for short, repetitive tasks Used to develop a time standard based on observations of one worker taken over a number of cycles.

36. Steps in time study Define the task to be studied, and inform the worker who will be studied Determine the number of cycles to be observe Time the job, and rate the worker’s performance Compute the standard time

37. Number of Cycles Function Variability of Observed times Desired Accuracy Desire Level of Confidence

38. Formula (sample size needed) Where Z = # of normal standard deviations (SD) needed for desired confidence S = sample SD a= Desired accuracy (%) = Sample mean

39. Alternative: **when the desired accuracy is stated as an amount instead of percentage Where: e = Maximum acceptable error

40. Example 1 A time study analyst wants to estimate the time required to perform a certain job. A preliminary study yieldes a mean of 6.4 minutes and a standard deviation of 2.1minutes. The desired confidence is 95%. How many observations will he need if the desired maximum error is + or – 10% of the sample mean? One-half minute?

41. Solution s= 2.1minutes z= 1.96 x = 6.4mins a= 10% b. e= 0.5

42. Development of Time Standard Observed Time Normal Time Standard Time

43. Observed Time Average of recorded times Where: OT = Observed time = Sum of recorded times n = number or observations

44. Normal Time Observed time adjusted for worker performance Computed by multiplying Observed time by performance rating NT = OT X PR Where: NT= Normal time PR = Performance rating

45. Normal Time If ratings are made on an element-by-element basis, the normal time is obtained by multiplying each element’s average time by its performance rating and summing those values: NT = Where = Ave time for element j = Perfomance rating for element j

46. Standard Time Normal time multiplied by an allowance factor (personal, unavoidable delays or rest breaks) ST = NT × AF Where ST = Standard time AF = Allowance factor

47. Allowance factor = Allowance percentage based on job time = Allowance percentage based on workday

48. Sample Problem Compute the allowance factor for these two cases: The allowance is 20 percent of job time The allowance is 20 percent of work time

49. Solution A = .20 AF = 1 + A = 1.20, or 120% AF = = 1.25, or 125%

50. Typical Allowance Percentage for Working Conditions A. Constant Allowances: 1. Personal allowance 5 2. Basic fatigue allowances 4

51. B. Variable Allowance 1. Standing Allowance 2 2. Abnormal Position Allowance a. Slightly awkward………………………………………………………………… b. Awkward (bending) ……………………………………………………………. c. Very awkward (lying, stretching) …………………………………………… 2 7 3. Use of force or muscular energy: Weight lifted (lbs) 5…………………………………………………………………………………………. 10……………………………………………………………………………………….. 15……………………………………………………………………………………….. 20……………………………………………………………………………………….. 25……………………………………………………………………………………….. 30……………………………………………………………………………………….. 35……………………………………………………………………………………….. 40……………………………………………………………………………………….. 45……………………………………………………………………………………….. 50………………………………………………………………………………………. 1 2 3 4 5 7 9 11 13

52. 4. Bad light a. Slightly below recommended b. Well below c. Very inadequate 2 5 5. Atmospheric conditions (heat and humidity)- variable 0-10 6. Close attention: a. Fairly fine work b. Fine or extracting c. Very fine or very extracting 2 5 7. Noise level a. continuous b. intermittent – loud c. intermittent – very loud d. High-pitched- loud 2 5 5 8. Mental strain: a. Fairly complex process b. Complex or wide span of attention c. Very complex 1 4 8

53. 9. Monotony: a. low b. Medium c. High 1 4 10. Trediousness: a. Rather tredious b. Tredious c. Very tredious 2 5

54. Sample Problem i Observation Time, x (minutes) i observation Time, x (minutes 1 1.12 6 1.18 2 1.15 7 1.14 3 1.16 8 1.14 4 1.12 9 1.19 5 1.15 Total 10.35 N = 9 PR = 1.13 A = 0.20 A time study of an assembly operation yielded the following observed times for one element of the job, for which the analyst gave a performance rating of 1.13 Using an allowance of 20 percent of job time, determine the appropriate standard time for this operation.

55. Solution OT = NT = OT × PR = 1.15 (1.13) = 1.30minutes ST = NT × (1 + A) = 1.30(1.20) = 1.56 minutes = 1.15 minutes

56. STANDARD ELEMENTAL TIME Derived from a firm’s own historical time study data Procedure for using Standard Elemental times Analyze the job to identify the standard elements Check the file for elements that have historical times, and record them. Use time study to obtain others, if necessary Modify the file times of necessary Sum the elemental times to obtain the normal time, and factor in allowances to obtain the standard time.

57. Advantages and Disadvantages Advantages Potential savings in cost and effort Less disruption of work Performance ratings do not have to be done Disadvantages Times may not exist for enough standard elements to make it worthwhile File times ma be biased or inaccurate

58. PREDETERMINED TIME STANDARDS Published data based on extensive research to determine standard elemental times. Methods-time measurement Commonly used system MTM tables are based on extensive research of basic elemental motions and times

59. Advantages Based on large numbers of workers under controlled conditions The analyst is not required to rate performance in developing the standard. There is no disruption of the operation Standards can be established even before a job is done.

60. WORK SAMPLING Technique for estimating the proportion of time that a worker or machine spends on various activities and the idle time. Does not require timing an activity NOR involve continuous observation of the activity Observer makes brief observations of a worker or machine at a random intervals Primary uses ratio-delay studies Analysis of non-repetitive jobs

61. COMPENSATION

62. Two Basic Systems for Compensating Employees

63. Time-based system Compensate employees for the time the employee has worked during a pay period Management Worker ADVANTAGES 1. Stable labor cost 1. Stable pay 2. Easy to administer 2. Less pressure to produce than under output system 3. Simple to compute pay 4. Stable Output DISADVANTAGES 1.. No incentive to workers to increase output 1. Extra efforts not rewarded

64. Output-based According to the amount of output they produce during a pay period Tying pay directly to performance Management Worker ADVANTAGE 1. Lower cost per unit 1. Pay related to efforts 2. Greater output 2. Opportunity to earn more DISADVANTAGES 1. Wage computation more difficult 1. Pay related to efforts 2.Need to measure output 2. Workers may be penalized because of factors beyond their control 3. Quality may suffer 4. Difficult to incorporate wage increase 5. Increase problems with scheduling

65. Accurate Easy to Apply Consistent\ Easy to understand Fair

66. INDIVIDUAL INCENTIVE PLANS Straight piecework- worker’s pay is direct linear function of his or her output Protects the worker from pay loss due to delays, breakdowns and similar probems

67. GROUP INCENTIVE PLANS Team approach Some exclusively focus on output, while others reward employees for output and for reductions in material and other costs

68. KNOWLEDGE-BASED PAY SYSTEMS A pay system used by organizations to reward workers who undergo training that increase their skills Three dimensions: Horizontal skills – reflect the variety of tasks the worker is capable of performing Vertical skills – reflect managerial tasks the worker is capable of Depth skills – reflect quality and productivity results

69. MANAGEMENT COMPENSATION Tied to the success of the company or division that executive is responsible for