Chapter 7 - Human Resource

8/13/2019 Chapter 7 - Human Resource

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GUIDE FOR THE ESSAY:

Write an essay based on the LEGO video giving focus on how LEaddressed OM issues related to:

Design Layout Capacity Quality Management

Scheduling & Maintenance Inventory, supply chain and distribution

How do you describe the process adopted by LEGO in producing thecomponents?

Based on the LEGO video, can you see the connection between OMmarketing and finance? Why or why not?


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JOB DESIGN &MEASUREMENT

Chapter 7

Production

Managem


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TOPICS

Quality of work life

Job design

Methods analysis Work measurement


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Happy people are

productive people

to make its employeeproductive as possible


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QUALITY OF WORK LIFE

Why do people work?

to earn a living

to seek for a lot of things:

self-realization status

physical and mental stimulation, and

socialization


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It affects:

Overall sense of well being

Productivity


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Two significant aspects

Working Condition

Compensation


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Temperature and Humidity

Ventilation

Illumination


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QUALITY OF WORK LIFE:WORKING CONDITIONS

Noise and Vibrations

Work Time and Work Breaks e.g.: 8:00 am5:00 pm (can be as earl

7:30 but never beyond 8:30) 8:30 am5:30 pm (earliest: 8:00 am, la9:00 am)

As long as you render 8 hours a day


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Occupational Health Care

Safety


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Safety

From an employer standpoint, accidents undesirable because they are expensive(insurance and compensation

From a worker standpoint, accidents meaphysical suffering, mental anguish, potenof earnings, and disruption of the work ro


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Two Basic Causes of Accidents

Carelessness

Accident hazards (unsafe conditio


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Ways to prevent hazards

Toxic wastes, gases and vapors, and radiation hazards must be contain

Use of proper lighting

Clearly marked danger zones

Use of protective equipment (hardhats, goggles, earmuffs, gloves, heavclothing),

Use of safety devices (machine guards, dual control switches that requito use both hands)

Use of emergency equipment (emergency showers, fire extinguishers, f

Thorough instruction in safety procedures and use of regular and emergequipment

Housekeeping (clean floors, open aisles, waste removal)


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QUALITY OF WORK LIFE:COMPENSATION

Approaches to Compensation

time-based systems

output-based (incentive) systems knowledge-based systems


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Time-based systems

Also known as hourly and measured work systems

Compensate employees for the time employee has worked during a pay p Salaried workers also represent a fortime-based compensation


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QUALITY OF WORK LIFE:COMPENSATIONTime-based systems

more widely used than incentive systems, particuoffice, administrative, and managerial employeesalso for blue-collar workers

One reason for this is that computation of wagesstraightforward and managers can readily estimacosts for a given employee level

Another reason for using time-based systems is many jobs do not lend themselves to the use ofincentives. In some cases, it may be difficult or imto measure output.


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Output-based (incentives) systems

compensate employees according to the amount of ouproduce during a pay period, thereby tying pay directlyperformance.

Incentives reward workers for their output, presumably

some workers to produce more than they might underbased system.

Workers may prefer incentive systems because they srelationship between their efforts and their pay

An incentive system presents an opportunity for them more money.


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Output-based (incentives) systems

Individual Incentive Plans. straight piecework. Under this plan, aworker's pay is a direct linear functioor her output.


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QUALITY OF WORK LIFE:COMPENSATIONOutput-based (incentives) systems

Group Incentive Plans. stress sharing of productivity gains with employ Some focus exclusively on output, while others

employees for output and for reductions in mateother costs.

One form of group incentive is the team approamany companies are now using for problem solcontinuous improvement. The emphasis is on teindividual, performance.


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Knowledge-based systems

As companies shift toward lean production, a number of changa direct impact on the work environment fewer managers are present increased emphasis on quality, productivity, and flexibility Consequently, workers who can perform a variety of tasks are part

valuable.

Organizations are increasingly recognizing this, and they are spay systems to reward workers who undergo training that increskill levels Knowledge based pay system - A pay system used by organization

workers who undergo training that increases their skills It is a portion of a worker's pay that is based on the knowledge and

worker possesses


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JOB DESIGN

Job design involves specifying the content and methods of jobs

Job designers focus what will be done in a job who will do the job how the job will be done where the job will be done

The objectives of job design

Productivity

Safety

quality of work life.


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JOB DESIGN

Two basic schools of thought in job de Efficiency school of thought - emphassystematic, logical approach to job de a refinement of Frederick Winslow Taylo

scientific management concepts

Behavioral school of thought - emphasatisfaction of wants and needs


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JOB DESIGN:SPECIALIZATION

Specialization Division of labor into unique (special) tasks Describes jobs that have a very narrow scope main rationale for specialization is the ability to concentrate one's efforts and

become proficient at that type of work.

Sometimes the amount of knowledge or training required of a specialist complexity of the work suggest that individuals who choose such work awith their jobs.

The advantage of these highly specialized jobs is that they yield high prorelatively low unit costs, and they are largely responsible for the high staliving that exists today in industrialized nations

Unfortunately, many of the lower-level jobs can be described as monotodownright boring, and are the source of much of the dissatisfaction amoindustrial workers


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JOB DESIGN:SPECIALIZATION

Wrong to conclude that all workers oppose thof work

Some workers, prefer jobs with limitedrequirements/responsibility

Others get frustrated with this type of work RESULT: high turnover and absenteeism, distactics, deliberate slowdown, poor attention tproduct quality

There are approaches by job designers to re

these issues


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JOB DESIGN: BEHAVIORALAPPROACH

Job Enlargement Giving a worker a larger portion of the total horizontal loading (additional work is on thelevel of skill & responsibility as the original j

Goal: make the job more interesting byincreasing the variety of skills required,providing the worker with more recognizacontribution to overall output


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Job Rotation Workers periodically exchange jobs

To avoid employees stuck in monotonou

Works best: transfer to more interestinginstead of exchanging one boring job foanother

Allows worker to broaden their learning

experience and enables them to fill in fo


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Job Enrichment Increasing responsibility for planning and coord

(control) tasks, by vertical loading Focus: motivating potential of worker satisfactio

Importance of behavioral approaches (JOBEXPANSIONadding variety) to job design:

Increase motivational power of jobs by Increasisatisfaction thru improvement in the quality of w


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Task #3

(lock printed circuitboard into fixture for

next operation)

Present job

(manually insert andsolder six resistors)

Task #2

(adhere labelsto printed circuit

board)

Enlarged

Enriched jobPlanning(participating in a cross-

function quality-improvement team)

Control(Test circuits after

assembly)


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Empowerment Practice of enriching jobs so employeaccept responsibility for a variety ofdecisions normally associated with sspecialists

Helps employees to take ownershiptheir jobs so they have a personal intin improving performance


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JOB DESIGN: MOTIVATION

Motivation Motivation is a key factor in many aspects of work life (influence quality, prod

contributes to the work environment) People work for a variety of reasons in addition to compensation. Other reaso

socialization, self-actualization, status, the physiological aspects of work, andpurpose and accomplishment.

Awareness of these factors can help management to develop a motivational encourages workers to respond in a positive manner to the goals of the orga

Another factor that influences motivation, productivity, and employeemrelations is t rust . In an ideal work environment, there is a high level of trust between workers a

When managers trust employees, there is a greater tendency to give employresponsibilities. When employees trust management, they are more likely to positively. Conversely, when they do not trust management, they are more likin less desirable ways.


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JOB DESIGN: TEAMS

Self-Directed Teams Self-directed teams (self-managed teams), are designed to achieve

level of teamwork and employee involvement typically empowered to make changes in the work processes unde

Underlying concept the workers, who are close to the process and have the best know

are better suited than management to make the most effective chaimprove the process. and because they have a vested interest and personal involvemen

changes, they tend to work harder to ensure that the desired resultachieved than they would if management had implemented the cha

For these teams to function properly, team members must be trainprocess improvement, and teamwork


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JOB DESIGN: TEAMS

Self-Directed Teams: Advantages fewer managers are necessary; very often one mana

handle several teams can provide improved responsiveness to problems, t

a personal stake in making the process work, and thless time to implement improvements

higher quality, higher productivity, and greater workesatisfaction higher levels of employee satisfaction can lead to les

turnover and absenteeism, resulting in lower costs toworkers and less need to fill in for absent employees


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JOB DESIGN: ERGONOMICS

Ergonomics is the incorporation of human factorsdesign of the workplace the scientific discipline concerned with the understan

interactions among humans and other elements of aand the profession that applies theory, principles, damethods to design in order to optimize human well-b

overall system performance Ergonomists contribute to the design and evaluationjobs, products, environments and systems in order tothem compatible with the needs, abilities and limitatipeople

In the work environment, ergonomics also helps to inproductivity by reducing worker discomfort and fatigu


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Three domains of ergonomics physical (e.g., repetitive movements, layhealth, and safety);

cognitive (mental workload, decision mahumancomputer interaction, and work and

organizational (e.g., communication, teawork design, and telework)


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Frederick Taylor, found that the amount of cworkers could shovel could be increasedsubstantially by reducing the size and weigshovels.

Frank and Lillian Gilbreth expanded Taylor's

developing a set of motion study principlesintended to improve worker efficiency and rinjury and fatigue

Poor posture can lead to fatigue, low produand injuries to the back, neck, and arm

Good posture can help avoid or minimize thproblems


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METHODS ANALYSIS

Methods analysisanalyzing how a job is do Job design often begins with an analysis of toverall operation

Factors that drive methods analysis Changes in tools and equipment. Changes in product design or introduction of new prod Changes in materials or procedures. Government regulations or contractual agreements. Other factors (e.g., accidents, quality problems).


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METHODS ANALYSIS

Basic procedure in methods analysis is as follow Identify the operation to be studied, and gather all pertinen

about tools, equipment, materials, and so on. For existing jobs, discuss the job with the operator and sup

get their input.

GENERAL GUIDELINES Have a high labor content Are done frequently Are unsafe, tiring, unpleasant, and/or noisy Are designated as problems (e.g., quality problems, proc

bottlenecks)


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METHODS ANALYSIS

Basic procedure in methods analysis is as follows: Study and document the present method of an existing job using p

charts. For new jobs, develop charts based on information about thinvolved.

Analyze the job. Job analysis requires careful thought about the what, why, when,

who of the job.

Going through these questions will clarify the review process Analyzing and improving methods is facilitated by the use of variosuch as flow process charts and worker-machine charts.

Propose new methods. Install the new methods. Follow up implementation to assure that improvements have been


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WORK MEASUREMENT

Job design determines the content of

Methods analysis determines how a jobe performed

Work measurement is concerned withdetermining the length of time it shoulto complete the job.


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WORK MEASUREMENT

A standard - is the amount of time it should take qualified worker to complete a specified task, wosustainable rate, using given methods, tools andequipment, raw material inputs, and workplacearrangement

it is essential to provide a complete description oparameters of the job because the actual time tojob is sensitive to all of these factors; changes inof the factors can materially affect time requireme

Periodic time studies may be used to update thestandards


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WORK MEASUREMENT

Commonly used methods of workmeasurement

(1) stopwatch time study

(2) historical / standard elemental time (3) predetermined data

(4) work sampling


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WORK MEASUREMENT:STOPWATCH TIME STUDY

Development of a time standard based oobservations of one worker taken over a of cycles.

The basic steps in a time study: Define the task to be studied Determine the number of cycles to observe Time the job Compute the standard time


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Stopwatch Time Study: Requires familiarity Check that the job is performed efficiently before

time standard Break very short jobs into elemental motions / ob

for each element Number of cycles varies according to: Variability of observed times Desired accuracy Desired level of confidence

WORK MEASUREMENT


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WORK MEASUREMENT


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WORK MEASUREMENT


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Stopwatch Time Study: Requires familiarity Check that the job is performed efficiently before

time standard Break very short jobs into elemental motions / ob

for each element Number of cycles varies according to:

Variability of observed times Desired accuracy Desired level of confidence

WORK MEASUREMENT


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Developing Time standards Observed timeaverage of recorded time

= ()/ If a job element does not occur each cycle, its

time should be determined separately and thashould be included in the observed time (OT)

WORK MEASUREMENT


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Developing Time standards Normal timeobserved time adjusted for worker

performance

=

Assumption: single performance rating for the enratings are made element-by-element basis, NT (each element average time x its performance ra

=

WORK MEASUREMENT


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Developing Time standards Standard timenormal time multiplied by an allowanc

for delay

= Allowances can be based on either job time or time wo

= 1 + =

11

WORK MEASUREMENT


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Developing Time standards

Compute allowance factor:Allowance is 20% of job timeAllowance is 20% of work time

= 1 + .2 = 1.2 120% =

11 . 2 = 1.25 1.25

WORK MEASUREMENT


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WORK MEASUREMENT:EXAMPLE

N = 9 PR = 1.13 A = .2 OT = 10.35 / 9 = 1.15 min NT = 1.15 x 1.13 = 1.30 ST = 1.30 (1.2) = 1.56 min

i x i x

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 1.5 Total 10.35

WORK MEASUREMENT:


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WORK MEASUREMENT:SAMPLE PROBLEM

Determine the average cycle time for each elem Find the normal time for each elementAssuming an allowance factor of 15% of job tim

compute the standard time for this job.

Elemen

t

Performanc

e Rating

Observations (Minutes per Cycle)

1 2 3 4 5 6

1 90% 0.44 0.50 0.43 0.45 0.48 0.46

2 85 1.50 1.54 1.47 1.51 1.49 1.52

3 110 0.84 0.89 0.77 0.83 0.85 080

4 100 1.10 1.14 1.08 1.20 1.16 1.26

WORK MEASUREMENT:


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1 90% 0.44 0.5 0.43 0.45 0.48 0.46 0.462 85% 1.5 1.54 1.47 1.51 1.49 1.52 1.505 13 110% 0.84 0.89 0.77 0.83 0.85 0.8 0.834 100% 1.1 1.14 1.08 1.2 1.16 1.26 1.1567 1

3

4

WORK MEASUREMENT:


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1 90% 0.44 0.5 0.43 0.45 0.48 0.46 0.462 85% 1.5 1.54 1.47 1.51 1.49 1.52 1.505 13 110% 0.84 0.89 0.77 0.83 0.85 0.8 0.834 100% 1.1 1.14 1.08 1.2 1.16 1.26 1.1567 1

3

4

WORK MEASUREMENT:


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WORK MEASUREMENT:STANDARD ELEMENTAL TIME

Standard elemental times: Time standards derived from a firms historic

Steps for standard elemental timesAnalyze the job Check file for historical times Modify file times if necessary Sum elemental times to get normal time

WORK MEASUREMENT:


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WORK MEASUREMENT:PREDETERMINED TIME STANDA

Predetermined time standards: Published data based on extensive research to

determine standard elemental times.

Advantages:

Based on large number of workers under controlconditions

Analyst not requires to rate performance No disruption of the operation Standards can be established

WORK MEASUREMENT: WOR


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WORK MEASUREMENT: WORSAMPLING

Work sampling: technique for estimating the proportion of tim

worker or machine spends on various activitiidle time.

Work sampling involves making brief observa

worker or machine at random intervals Work sampling does not require

timing an activity continuous observation of an activity

HUMAN RESOURCE & JOB


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HUMAN RESOURCE & JOBDESIGN

It is important for management to make design osystems a key element of its operations strategy.the major advances in computers and operationstechnology, people are still the heart of a businescan make or break it, regardless of the technologTechnology is important, of course, but technolog

is not enough.

The topics described in this chapter all have an iproductivity. Although they lack the glamour of hithey are essential to the fundamentals of work de

HUMAN RESOURCE & JOB


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HUMAN RESOURCE & JOBDESIGN

Workers can be a valuable source of insight and creatbecause they actually perform the jobs and are closesproblems that arise. All too often, managers overlookcontributions and potential contributions of employeessometimes from ignorance and sometimes from a falspride. Unionmanagement differences are also a factoand more, though, companies are attempting to develoof cooperation between employees and managers.

In the same vein, an increasing number of companiesfocusing attention on improving the quality of work life instilling pride and respect among workers. Many orgaare reaping surprising gains through worker empowergiving workers more say over their jobs.


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JOB DESIGN &MEASUREMENT

Chapter 7

Production

Managem

-end of Module 7-Any questions?

Chapter 7 - Human Resource

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