2000 by Prentice-Hall, Inc1 Chapter 17 - Human Resources in Strategic Planning TQM recognizes importance of employees Education & training viewed as.

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 11

Chapter 17 - Human Resources Chapter 17 - Human Resources in Strategic Planningin Strategic Planning

TQM recognizes importance of employeesTQM recognizes importance of employees Education & training viewed as long-term Education & training viewed as long-term

investmentsinvestments EmployeesEmployees

Have broad latitude in jobsHave broad latitude in jobs Are trained in wide range of skillsAre trained in wide range of skills Are empowered to improve quality & serviceAre empowered to improve quality & service

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 22

Changes in HR Changes in HR ManagementManagement

Skilled craftspeopleSkilled craftspeople Scientific managementScientific management Assembly linesAssembly lines Limitations of scientific managementLimitations of scientific management Behavioral influences in job designBehavioral influences in job design

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 33

Behavioral Influences in Behavioral Influences in Job DesignJob Design

1. Horizontal job enlargement1. Horizontal job enlargement

2. Vertical job enlargement2. Vertical job enlargement

3. Responsibility for job reliability 3. Responsibility for job reliability and qualityand quality

4. Job rotation4. Job rotation

5. Communications 5. Communications between workersbetween workers

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 44

Trends in Job DesignTrends in Job Design

Job and task flexibilityJob and task flexibility Responsibility and empowermentResponsibility and empowerment Increased skill and ability levelsIncreased skill and ability levels TeamworkTeamwork Employee compensation and incentivesEmployee compensation and incentives Technology and automationTechnology and automation Alternative workplacesAlternative workplaces Temporary and part-time employeesTemporary and part-time employees Employee satisfactionEmployee satisfaction

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 55

Evolution of Job Design Evolution of Job Design 1900s to 1960s1900s to 1960s

Task specializationMinimal worker skillsRepetitionMinimal job trainingMass productionPiece-rate wagesTime as efficiencyMinimal job

responsibilityTight supervisory

control

Scientific management/ assembly lines

1970s to 2000s1970s to 2000s

Horizontal job enlargement

Vertical job enlargementExtensive job trainingJob responsibility and

empowermentJob controlTraining and education Job rotationHigher skill levelsTeam problem solvingWorker interactionEmployee involvementFocus on quality

Current trends

Figure 17.1Figure 17.1

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 66

TASK ANALYSISTASK ANALYSIS WORKER ANALYSISWORKER ANALYSIS ENVIRONEMENTAL ENVIRONEMENTAL ANALYSISANALYSIS

Description of tasks to Description of tasks to be performedbe performed

Task sequenceTask sequence Function of tasksFunction of tasks Frequency of tasksFrequency of tasks Criticality of tasksCriticality of tasks Relationship with other Relationship with other

jobs/tasksjobs/tasks Performance Performance

requirementsrequirements Information Information

requirementsrequirements Control requirementsControl requirements Error possibilitiesError possibilities Tasks duration(s)Tasks duration(s) Equipment requirementsEquipment requirements

Capability Capability requirementsrequirements

Performance Performance requirementsrequirements

EvaluationEvaluation Skill levelSkill level Job trainingJob training Physical Physical

requirementsrequirements Mental stressMental stress BoredomBoredom MotivationMotivation Number of workersNumber of workers Level of Level of

responsibilityresponsibility Monitoring levelMonitoring level Quality Quality

responsibilityresponsibility Empowerment Empowerment

levellevel

Work place locationWork place location Process locationProcess location Temperature and Temperature and

humidityhumidity LightingLighting VentilationVentilation SafetySafety LogisticsLogistics Space requirementsSpace requirements NoiseNoise VibrationVibration

Elements of Job DesignElements of Job Design

Table 17.1Table 17.1

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 77

Job AnalysisJob Analysis

Study how job should be doneStudy how job should be done Tools:Tools:

Process flowchart - analyze Process flowchart - analyze process stepsprocess steps

Worker-machine chart - study time Worker-machine chart - study time utilizationutilization

Motion study - study human Motion study - study human motions in tasksmotions in tasks

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 88

Process Flowchart SymbolsProcess Flowchart Symbols

Operation:Operation: An activity directly contributing An activity directly contributing to the product or service.to the product or service.

Storage:Storage: Store of the product or service.Store of the product or service.

Inspection:Inspection: Examining the product or service Examining the product or service for completeness, irregularities, for completeness, irregularities, or quality.or quality.

Transportation:Transportation: Moving the product or service Moving the product or service from one location to another.from one location to another.

Delay:Delay: The process having to wait.The process having to wait.

Figure 17.2Figure 17.2

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 99

Process FlowchartProcess FlowchartDate: 9/11

Analyst: Calvin

Job: Copying Job

Page:

Desk operator fills out work order

Work order placed in “waiting job” box

Job picked up by operator and read

Job carried to appropriate copy machine

Operator waits for machine to vacate

Operator loads paper

Operator sets machine

Operator performs and completes job

Job filed alphabetically in completed shelves

Job waits for pick up

Job moved by cashier for pick up

Cashier completes transaction

Operator inspects job for irregularities

Cashier packages job (bag, wrap, or box)

Process Description Process Symbols

Figure 17.3Figure 17.3

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1010

Motion StudyMotion Study

Frank & Lillian GilbrethFrank & Lillian Gilbreth Find one “best way” to do taskFind one “best way” to do task Divide task into therbligsDivide task into therbligs

Search, select, grasp, holdSearch, select, grasp, hold

Use videotape to study motionsUse videotape to study motions

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1111

General Guidelines For Motion General Guidelines For Motion StudyStudy

Efficient Use Of Human BodyEfficient Use Of Human Body Efficient Arrangement Of WorkplaceEfficient Arrangement Of Workplace

Efficient Use Of EquipmentEfficient Use Of Equipment

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1212

Work MeasurementWork Measurement

Estimate standard time Estimate standard time required to perform a taskrequired to perform a task

Methods of performing Methods of performing work measurementwork measurement

Stopwatch time studyStopwatch time study Elemental standard Elemental standard

time filestime files Predetermined motion timesPredetermined motion times Work samplingWork sampling

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1313

Stopwatch Time Study Basic StepsStopwatch Time Study Basic Steps

1.1. Establish the standard job Establish the standard job methodmethod

5.5. Compute the average time (Compute the average time (tt ) )

4.4. Rate the worker’s performance (Rate the worker’s performance (RFRF))

3.3. Study the jobStudy the job

2.2. Break down the job into elementsBreak down the job into elements

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1414

Stopwatch Time Study Stopwatch Time Study Basic StepsBasic Steps

ST = (NT)(1 + AF)ST = (NT)(1 + AF)

Standard Time = (normal cycle time) x (1 + allowance factor)Standard Time = (normal cycle time) x (1 + allowance factor)

7.7. Compute the standard timeCompute the standard time

6.6. Compute the normal timeCompute the normal time

Normal Cycle Time = NT = Normal Cycle Time = NT = NNtt

Normal Time = (Elemental average) x (rating factor)Normal Time = (Elemental average) x (rating factor)

NNtt = = ((t t )()(RFRF))

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1515

Performing a Time StudyPerforming a Time StudyTime Study Observation Sheet

Identification of operation Sandwich Assembly Date 5/17

Operator Approval ObserverSmith Jones Russell

Cycles Summary

1 2 3 4 5 6 7 8 9 10 t NtRFt

Place ham, cheese, and lettuce on bread

1

2

3

4

Grasp and lay out bread slices

Spread mayonnaiseon 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 .0771.00

.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

Figure 17.5Figure 17.5

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1616

Number of CyclesNumber of CyclesTo determine the sample size:To determine the sample size:

n n ==zszs

eTeT

22

wherewhere

zz = =the number of standard deviations from the the number of standard deviations from the mean in a normal distribution reflecting a level of mean in a normal distribution reflecting a level of statistical confidencestatistical confidence

TT = =the average job cycle time from the sample time the average job cycle time from the sample time studystudyee = =the degree of error from the true mean of the the degree of error from the true mean of the distributiondistribution

ss = = = = sample sample standard deviation from the sample standard deviation from the sample time studytime study

((xxii -- x x))22

n n - 1- 1

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1717

Number of CyclesNumber of Cycles

Average cycle time = 0.361Average cycle time = 0.361

Computed standard deviation = 0.03Computed standard deviation = 0.03

Company wants to be 95% confident that Company wants to be 95% confident that computed time is within 5% of true average timecomputed time is within 5% of true average time

Example 17.5Example 17.5

n n = = = 10.61, or 11= = = 10.61, or 11zszs

eTeT

22(1.96)(0.03)(1.96)(0.03)

(0.05)(0.361)(0.05)(0.361)

22

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1818

Work Sampling - Work Sampling - Basic StepsBasic Steps

1.1. Define the job activitiesDefine the job activities

2.2. Determine number of observationsDetermine number of observations

n n = = pp(1 - (1 - pp) ) zzee

22

wherewhere

nn = = the sample size (number of sample the sample size (number of sample observations)observations)zz = =the number of standard deviations from the the number of standard deviations from the mean for the desired level of confidencemean for the desired level of confidenceee = =the degree of allowable error in the sample the degree of allowable error in the sample estimateestimatepp = =the proportion of time spent on a work activity the proportion of time spent on a work activity estimated prior to calculating the work sampleestimated prior to calculating the work sample

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 1919

Work Sampling - Work Sampling - Basic StepsBasic Steps

3.3. Determine length of sampling periodDetermine length of sampling period

4.4. Conduct work sampling study, record Conduct work sampling study, record observationsobservations

5.5. Periodically recompute number of Periodically recompute number of observationsobservations

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 2020

Learning CurvesLearning Curves

Processing time decreases with worker Processing time decreases with worker learning (experience)learning (experience)

Time per unit decreases by constant Time per unit decreases by constant percentage each time output doublespercentage each time output doubles

Use to plan labor, budget & scheduling Use to plan labor, budget & scheduling requirementsrequirements

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 2121

Learning CurvesLearning Curves

Units producedUnits produced

Pro

cess

ing

tim

e p

er u

nit

Pro

cess

ing

tim

e p

er u

nit

Figure 17.6Figure 17.6

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 2222

Learning CurvesLearning Curves

tn = t1nb

Time required for the Time required for the nnth unit =th unit =

where

tn =time required for nth unit producedt1 =time required for first unit producedn =cumulative number of units producedb =ln r/ln 2, where r is the learning curve percentage (decimal coefficient)

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 2323

Learning Curve for Mass Learning Curve for Mass Production JobProduction Job

Standard Standard timetime

End of improvementEnd of improvement

Units producedUnits produced

Pro

cess

ing

tim

e p

er u

nit

Pro

cess

ing

tim

e p

er u

nit

Figure 17.7Figure 17.7

2000 by Prentice-Hall, Inc2000 by Prentice-Hall, Inc 2424

More on Learning CurvesMore on Learning Curves

Not effective for mass production jobsNot effective for mass production jobs Product modifications negate effectsProduct modifications negate effects Improvement can derive from sources Improvement can derive from sources

besides learningbesides learning Industry-derived learning curve rates Industry-derived learning curve rates

may be inappropriatemay be inappropriate