Operations Management

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7-1 Design of Work Systems 7-2 Design of Work Systems Operations Management William J.

William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

the content and methods of job What will be done Who will do the job How the job will bob will be done Where the job

conditions 7-5 Design of Work Systems Job Design Success Successful Job Design must be: Carried out by experienced

Understood and agreed to by both management and employees 7-6 Design of Work Systems Specialization in Business:

1 7-1 Design of Work Systems 7-2 Design of Work Systems Operations Management William J. Stevenson CHAPTER 7 Design of Work Systems 8 th edition McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved. 7-3 Design of Work Systems Job Design 7-4 Design of Work Systems Design of Work Systems Job design involves specifying the content and methods of job What will be done Who will do the job How the job will bob will be done Where the job will be done Ergonomics Specialization Behavioral Approaches to Job Design Teams Methods Analysis Motions Study Working conditions 7-5 Design of Work Systems Job Design Success Successful Job Design must be: Carried out by experienced personnel with the necessary training and background Consistent with the goals of the organization In written form Understood and agreed to by both management and employees 7-6 Design of Work Systems Specialization in Business: Advantages Table 7.1 For Management: 1. Simplifies training 2. High productivity 3. Low wage costs For Labor: 1. Low education and skill requirements 2. Minimum responsibilities 3. Little mental effort needed

2 7-7 Design of Work Systems Disadvantages of Work Specialization Table 7.1 ForManagement: 1. Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality ForLabor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for self-fulfillment 7-8 Design of Work Systems Behavioral Approaches to Job Design Job Enlargement Giving a worker a larger portion of the total task by horizontal loading Job Rotation Workers periodically exchange jobs Job Enrichment Increasing responsibility for planning and coordination tasks, by vertical loading 7-9 Design of Work Systems Motivation and Trust 7-10 Design of Work Systems Teams Motivation Influences quality and productivity Contributes to work environment Trust Influences productivity and employeemanagement relations Benefits of teams Higher quality Higher productivity Greater worker satisfaction Self-directed teams Groups empowered to make certain changes in their work process Show video of color-coding 7-11 Design of Work Systems Methods Analysis Methods analysis Analyzing how a job gets done Begins with overall analysis Moves to specific details 7-12 Design of Work Systems Methods Analysis Procedure 1. Identify the operation to be studied 2. Get employee input 3. Study and document current method 4. Analyze the job 5. Propose new methods 6. Install new methods 7. Follow-up to ensure improvements have been achieved

7-13 Design of Work Systems Analyzing the Job Flow process chart Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials 7-14 Design

3 7-13 Design of Work Systems Analyzing the Job Flow process chart Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials 7-14 Design of Work Systems Figure Design of Work Systems Figure 7-2 FLOW PROCESS CHART Job Requisition of petty cash ANALYST D. Kolb PAGE 1 of 2 Details of Method Requisition made by department head Put in pick-up basket To accounting department Account and signature verified Amount approved by treasurer Amount counted by cashier Amount recorded by bookkeeper Petty cash sealed in envelope Petty cash carried to department Petty cash checked against requisition Receipt signed Petty cash stored in safety box Operation Movement Inspection Delay Storage 7-16 Design of Work Systems Motion Study Motion study is the systematic study of the human motions used to perform an operation Design of Work Systems Developing Work Methods 7-18 Design of Work Systems Monitor Working Conditions! 1. Eliminate unnecessary motions 2. Combine activities 3. Reduce fatigue 4. Improve the arrangement of the workplace (video?) 5. Improve the design of tools and equipment Temperature & Humidity Illumination Ventilation Color

7-19 Design of Work Systems Working Conditions (cont d) 7-20 Design of Work Systems Figure 7-67 Noise & Vibration Work Breaks Safety Causes of Accidents 7-21 Design of Work Systems Compensation

4 7-19 Design of Work Systems Working Conditions (cont d) 7-20 Design of Work Systems Figure 7-67 Noise & Vibration Work Breaks Safety Causes of Accidents 7-21 Design of Work Systems Compensation Time-based system Compensation based on time an employee has worked during a pay period Output-based (incentive) system Compensation based on the amount of output an employee produces during a pay period 7-22 Design of Work Systems Form of Incentive Plan Accurate Easy to apply Consistent Easy to understand Fair 7-23 Design of Work Systems Compensation Individual Incentive Plans Group Incentive Plans Knowledge-Based Pay System Management Compensation 7-24 Design of Work Systems CHAPTER 7s Learning Curves McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

7-25 Design of Work Systems Learning Curves 7-26 Design of Work Systems Figure 7s-3 Learning curves: the time required to perform a task decreases with increasing

Design of Work Systems Figure 7s-2 7-28 Design of Work Systems Figure 7S.

Evaluate progress of your new employees (or new tasks), based on learning curves developed from previous/similar work.

the n th attempt (iteration) n : # of iterations b : log ratio of learning percent to ln(2) Given any 3 of these, compute the 4 th, e.

5 7-25 Design of Work Systems Learning Curves 7-26 Design of Work Systems Figure 7s-3 Learning curves: the time required to perform a task decreases with increasing repetitions Log-log depiction of learning curve (creates straight lines) Note: 80% learning curve is better than 90% (100% no learning being accomplished) 7-27 Design of Work Systems Figure 7s Design of Work Systems Figure 7S.4 Worker Learning Curves Improvements can temporarily increase standard time (time to perform a task), e.g. implementation of Banner and registration times per student. Evaluate progress of your new employees (or new tasks), based on learning curves developed from previous/similar work Design of Work Systems Learning Curve Formula Tn = T1 * n ^ b T1 : Time to complete very first unit (how long did it take the first time) Tn : Time it takes at the n th attempt (iteration) n : # of iterations b : log ratio of learning percent to ln(2) Given any 3 of these, compute the 4 th, e.g How long should the first attempt take if after 13 attempts we want the standard time to be 3 minutes (85% learning curve) Design of Work Systems Applications of Learning Curves 1. Manpower planning and scheduling 2. Negotiated purchasing 3. Pricing new products 4. Budgeting, purchasing, and inventory planning 5. Capacity Planning

Systems Cautions and Criticisms At some point the curve might level off or even tip upward Some improvements may be more apparent than

6 7-31 Design of Work Systems Cautions and Criticisms Learning rates may differ from organization to organization Projections based on learning curves should be viewed as approximations Estimates based the first unit should be checked for valid times 7-32 Design of Work Systems Cautions and Criticisms At some point the curve might level off or even tip upward Some improvements may be more apparent than real For the most part, the concept does not apply to mass production 7-33 Design of Work Systems Figure 7s-5 Still Learning Very little Learning

Human Resources and Job Design. Learning Objectives. Human Resource Strategy. Dr. Richard Jerz

Human Resources and Job Design Dr. Richard Jerz 1 Learning Objectives Explain the importance of work design. Describe the two basic approaches to job design. Discuss the advantages and disadvantages of