© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Chapter 8 Human Resources in Operations Management

2000 by Prentice-Hall, Inc2 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Human Resources In Strategic Planning  Importance of employees  Education & training - long-term investments  Employees  broad latitude in jobs  trained in wide range of skills  empowered to improve quality & service

2000 by Prentice-Hall, Inc3 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Evolution of Job Design 1900s to 1960s Scientific Management/Assembly Lines  Task specialization  Minimal worker skills  Repetition  Minimal job training  Mass production  Piece-rate wages  Time as efficiency  Minimal job responsibility  Tight supervisory control

2000 by Prentice-Hall, Inc4 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Evolution Of Job Design 1970s to 1990s  Horizontal job enlargement  Vertical job enlargement  Extensive job training  Job responsibility & empowerment  Job control  Training & education  Job rotation  Higher skill levels  Team problem solving  Employee involvement & interaction  Focus on quality

2000 by Prentice-Hall, Inc5 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Elements of Job Design Task AnalysisWorker AnalysisEnvironmental Analysis

2000 by Prentice-Hall, Inc6 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Task Analysis  Description of tasks  Task sequence  Function of tasks  Frequency of tasks  Criticality of tasks  Relationship with other jobs/tasks  Performance requirements  Information requirements  Control requirements  Error possibilities  Task duration(s)  Equipment requirements

2000 by Prentice-Hall, Inc7 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 2/e Worker Analysis  Capability  Performance  Evaluation  Skill level  Physical  Mental stress  Boredom  Motivation  Number of workers  Level of responsibility  Monitoring level  Quality responsibility  Empowerment level

2000 by Prentice-Hall, Inc8 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Environmental Analysis  Work place location  Process location  Temperature and humidity  Lighting  Ventilation  Safety  Logistics  Space requirements  Noise  Vibration

2000 by Prentice-Hall, Inc9 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Job Analysis  Study how job should be done  Tools:  Process flowchart - analyze process steps  Worker-machine chart - study time utilization  Motion study - study human motions in tasks

2000 by Prentice-Hall, Inc10 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Desk operator fills out work order Date: 9/11 Analyst: Calvin Job: Copying Job 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) Page: 1 D D D D D D D D D D D D D D Process Flowchart

2000 by Prentice-Hall, Inc11 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Worker-Machine Chart Job Photo-Id CardsDate 10/14 TimeOperatorTimePhoto Machine Key in customer data on card Feed data card in Position customer for photo Take picture Inspect card & trim edges Idle Photo/card processed Accept card Begin photo process

2000 by Prentice-Hall, Inc12 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Motion Study  Frank & Lillian Gilbreth  Find one “best way” to do task  Divide task into therbligs  search, select, grasp, hold  Use videotape to study motions

2000 by Prentice-Hall, Inc13 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e General Guidelines For Motion Study  Efficient Use Of Human Body  Work - simplified, rhythmic & symmetric  Hand/arm motions - coordinated & simultaneous  Employ full extent of physical capabilities  Conserve energy - use machines, minimize distances, use momentum  Tasks - simple, minimal eye contact & muscular effort, no unnecessary motions, delays or idleness

2000 by Prentice-Hall, Inc14 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e  Efficient Arrangement Of Workplace  Tools, material, equipment - designated, easily accessible location  Seating & work area - comfortable & healthy  Efficient Use Of Equipment  Equipment & mechanized tools enhance worker abilities  Use foot-operated equipment to relieve hand/arm stress  Construct & arrange equipment to fit worker use

2000 by Prentice-Hall, Inc15 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Work Measurement  Estimate standard time required to perform a task  Methods of performing work measurement  Stopwatch time study  Elemental standard time files  Predetermined motion times  Work sampling

2000 by Prentice-Hall, Inc16 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e

2000 by Prentice-Hall, Inc17 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Stopwatch Time Study Basic Steps 1. Establish the standard job method 2. Break down the job into elements 3. Study the job 4. Rate the worker’s performance (RF) 5. Compute the average time ( t )

2000 by Prentice-Hall, Inc18 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e 6. Compute the normal time Normal Time = (Elemental average) (rating factor) Nt = ( t )(RF) Normal Cycle Time = NT =  Nt 7. Compute the standard time Standard Time = (normal cycle time) (1 + allowance factor) ST = (NT) (1 + AF)

2000 by Prentice-Hall, Inc19 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Incentive Piece-Rate Example  Piece-rate is $0.04 per sandwich  What would average worker earn per hour?  Wage rate = (135)(0.04) = $5.40

2000 by Prentice-Hall, Inc20 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Number Of Cycles

2000 by Prentice-Hall, Inc21 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Number Of Cycles  Average cycle time (without Rating Factor) =0.361  Computed standard deviation = 0.03  Company wants to be 95% confident that computed time is within 5% of true average time

2000 by Prentice-Hall, Inc22 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Predetermined Motion Times  Predetermined times for micromotions  Divide tasks into micromotions  grasp, reach, move, etc.  Time Measurement Units (TMU)  minutes, 100,000 per hour

2000 by Prentice-Hall, Inc23 Work Sampling  A technique for determining the proportion of time a worker or machine spend on various activities  Involves brief, random observations  Useful for non-repetitive tasks  E.g., secretary, nurse, police officer

2000 by Prentice-Hall, Inc24 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Work Sampling - Basic Steps 1. Define the job activities 2. Determine number of observations desired

2000 by Prentice-Hall, Inc25 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e 3. Determine length of sampling period 4. Conduct work sampling study, record observations 5. Periodically re-compute number of observations

2000 by Prentice-Hall, Inc26 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Learning Curve Processing time per unit Units produced

2000 by Prentice-Hall, Inc27 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Learning Curve  Processing time decreases with worker learning (experience)  Time per unit decreases by constant percentage each time output doubles  Useful for nonrepetitive, complex jobs requiring requiring long time to complete

2000 by Prentice-Hall, Inc28 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Learning Curve For Mass Production Job Standard time End of improvement Processing time per unit Units produced

2000 by Prentice-Hall, Inc29 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e More On Learning Curves  Not effective for mass production jobs  Little relative improvement, in a brief time span  Product modifications negate effects  Productivity improvement can derive from sources besides learning – such as?

2000 by Prentice-Hall, Inc30 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Computing Time For Nth Unit t n = t 1 n b where  t n = time required for nth unit  t 1 = time required for first unit  n = cumulative number of units produced  b = ln r/ln 2, where r is the percentage rate of improvement