1. Human Resources, Job Design, and Work Measurement10
PowerPoint presentation to accompany
Heizer and Render
Operations Management, 10e
Principles of Operations Management, 8e
PowerPoint slides by Jeff Heyl
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

2. Outline Human Resource Strategy for Competitive Advantage
Labor Planning
Work Schedules
Job Classifications and Work Rules
Job Design
Labor Specialization
Job Expansion
Motivation and Incentive Systems
Ergonomics and the Work Environment
The Visual Workplace
Labor Standards
Historical Experience
Time Studies
Ethics
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

3. Learning Objectives Describe labor planning issues
Identify the major issues in job design
Identify major ergonomic and work environment issues
Establish labor standards
Compute the normal and standard times in a time study
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

4. Rusty Wallace’s NASCAR Racing Team
High performance pit crews are a key element of a successful race team and pit crew members can earn $100,000 per year – for changing tires!
Each position has very specific work standards
Pit crews are highly organized and go though rigorous physical training
Pit stops are videotaped to look for improvements
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

5. Rusty Wallace’s NASCAR Racing Team
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

6. Human Resource Strategy
The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized
People should be effectively utilized within the constraints of other operations management decisions
People should have a reasonable quality of work life in an atmosphere of mutual commitment and trust
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

7. Labor Planning Employment Stability Policies Follow demand exactly
Matches direct labor costs to production
Labor is treated as a variable cost
Hold employment constant
Maintains trained workforce
Labor is treated as a fixed cost
Follow demand exactly
Matches direct labor costs to production
Incurs costs in hiring and termination, unemployment insurance, and premium wages
Labor is treated as a variable cost
Hold employment constant
Maintains trained workforce
Minimizes hiring, termination, and unemployment costs
Employees may be underutilized during slack periods
Labor is treated as a fixed cost
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

8. The Workplace Work Schedules Job Classification and Work Rules
Standard work schedule
Flex-time
Flexible work week
Part-time
Job Classification and Work Rules
Specify who can do what
Specify when they can do it
Often result of union contracts
Restricts flexibility and consequently efficiency of production
Standard work schedule
Five eight-hour days
Flex-time
Allows employees, within limits, to determine their own schedules
Flexible work week
Fewer but longer days
Part-time
Fewer, possibly irregular, hours
Job Classification and Work Rules
Specify who can do what
Specify when they can do it
Specify under what conditions they can do it
Often result of union contracts
Restricts flexibility in assignments
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

9. Job Design: Labor Specialization
The division of labor into unique tasks
First suggested by Adam Smith in 1776
Development of dexterity
Less loss of time
Development of specialized tools
Later Charles Babbage (1832) added another consideration
Wages exactly fit the required skill required
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

10. Job Design: Job Expansion
Adding more variety to jobs
Intended to reduce boredom associated with labor specialization
Job enlargement
Job rotation
Job enrichment
Employee empowerment
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

11. Job Enlargement Enriched job Enlarged job Limitations:
Task #3
(Lock printed circuit board into fixture for next operation)
Present job
(Manually insert and solder six resistors)
Task #2
(Adhere labels to printed circuit board)
Enlarged job
Enriched job
Planning
(Participate in a cross-function quality improvement team)
Control
(Test circuits after assembly)
Limitations:
Higher capital cost
Individuals may prefer simple jobs
Higher wages rates for greater skills
Smaller labor pool
Higher training costs
Figure 10.2
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

12. Core Job Characteristics
Jobs should include the following characteristics
Skill variety
Job identity
Job significance
Autonomy
Feedback
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

13. Job Design Continuum Self-directed teams Empowerment Self-direction
Specialization
Enlargement
Self-directed teams
Empowerment
Enrichment
Job expansion
Self-direction
Figure 10.3
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

14. Motivation and Incentive Systems
Bonuses
Profit-sharing
Gain sharing
Incentive plans
Knowledge-based systems
Bonuses - cash or stock options
Profit-sharing - profits for distribution to employees
Gain sharing - rewards for improvements
Incentive plans - typically based on production rates
Knowledge-based systems - reward for knowledge or skills
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

15. Ergonomics and the Work Environment
Ergonomics is the study of the interface between man and machine
Often called human factors
Operator input to machines
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

16. Ergonomics and Work Methods
Feedback to operators
The work environment
Illumination
Noise
Temperature
Humidity
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

17. The Visual Workplace
Use low-cost visual devices to share information quickly and accurately
Displays and graphs replace printouts and paperwork
Able to provide timely information in a dynamic environment
System should focus on improvement
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

18. The Visual Workplace Visual utensil holder encourages housekeeping
A “3-minute service” clock reminds employees of the goal
Figure 10.8
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

19. The Visual Workplace
Visual signals at the machine notify support personnel
Visual kanbans reduce inventory and foster JIT
Andon
Line/machine stoppage
Parts/ maintenance needed
All systems go
Part A Part B Part C
Reorder point
Figure 10.8
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

20. The Visual Workplace
Quantities in bins indicate ongoing daily requirements and clipboards provide information on schedule changes
Process specifications and operating procedures are posted in each work area
Figure 10.8
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

21. Labor Standards
Manpower planning depends on a knowledge of the labor required
Labor standards are the amount of time required to perform a job
Labor standards determine labor requirements, costs, and fair work
Necessary for determining staffing requirements
Important to labor incentive systems
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

22. Time Studies
Involves timing a sample of a worker’s performance and using it to set a standard
Requires trained and experienced observers
Cannot be set before the work is performed
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

23. Time Studies - Compute average observed time:
Average Observed time= Sum of the time recorded to perform each element Number of Observations
- Determine performance rating and normal time:
Normal time= Average Observed time x Performance rating factor
- Sum normal times of elements to find task normal time
- Compute the standard time
Standard time= Total Normal Time 1−Allowance factor
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

24. Rest Allowances Personal time allowance Delay allowance
4% - 7% of total time for use of restroom, water fountain, etc.
Delay allowance
Based upon actual delays that occur
Fatigue allowance
Based on our knowledge of human energy expenditure
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

25. Time Study Example 1 Average observed time = 4.0 minutes
Worker rating = 85%
Allowance factor = 13%
Normal time = (Average observed time) x (Rating factor)
= (4.0)(.85)
= 3.4 minutes
It might be useful at this point to discuss typical equipment utilization rates for different process strategies if you have not done so before.
Standard time = = =
Normal time
1 - Allowance factor
3.4
.87
= 3.9 minutes
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

26. Time Study Example 2 Allowance factor = 15%
Performance
Job Element Rating
Compose and type letter * %
Type envelope address %
Stuff, stamp, seal, and 2 1 5* % sort envelopes
Cycle Observed (in minutes)
Delete unusual or nonrecurring observations (marked with *)
Compute average times for each element
It might be useful at this point to discuss typical equipment utilization rates for different process strategies if you have not done so before.
Average time for A = ( )/4 = 9.5 minutes
Average time for B = ( )/5 = 2.2 minutes
Average time for C = ( )/4 = 1.5 minutes
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

27. Time Study Example 2 Compute the normal time for each element
Normal time = (Average observed time) x (Rating)
Normal time for A = (9.5)(1.2) = 11.4 minutes
Normal time for B = (2.2)(1.05) = 2.31 minutes
Normal time for C = (1.5)(1.10) = 1.65 minutes
It might be useful at this point to discuss typical equipment utilization rates for different process strategies if you have not done so before.
Add the normal times to find the total normal time
Total normal time = = minutes
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

28. Time Study Example 2 15.36 = = 18.07 minutes 1 - .15
Compute the standard time for the job
Standard time =
Total normal time
1 - Allowance factor
= = minutes
15.36
It might be useful at this point to discuss typical equipment utilization rates for different process strategies if you have not done so before.
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

29. Ethics and the Work Environment
Fairness, equity, and ethics are important constraints of job design
Important issues may relate to equal opportunity, equal pay for equal work, and safe working conditions
Helpful to work with government agencies, trade unions, insurers, and employees
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

30. In-Class Problems from the Lecture Guide Practice Problems
Develop an Activity Chart for doing three loads of laundry.
Time
Operator
Machine 1
Washer
Machine 2
Dryer
Load clothes and detergent in to Machine 1
Being loaded
Idle
Run
Remove clothes from Machine 1
Being unloaded
Load clothes into Machine 2
Load clothes and detergent into Machine 1
Remove clothes from Machine 2
Hang clothes
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

31. In-Class Problems from the Lecture Guide Practice Problems
Carolyn Barrett, a marketing surveyor, takes an average of 10 minutes to complete a particular questionnaire. Carolyn’s performance rating (pace) is 110% and there is an allowance of 15%.
What is the Normal time for completing this questionnaire?
What is the Standard time for completing this questionnaire?
Normal Time = (observed time)(Performance Rating)
Normal Time = (10)(1.10) = 11 minutes
Standard Time = Total Normal time/(1-Allowance Factor) = 11/(1-0.15) = 11/.85=12.9 minutes
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013

32. In-Class Problems from the Lecture Guide Practice Problems
The two steps in preparing chocolate candy bars are molding and packaging. Personal fatigue and delay allowances are set at 15%. The molding machine operator is rated at 110% and the packer is rated at 80%. Observed times per batch are given below.
Determine the Normal and standard times for both tasks.
For Molding:
Average for the actual Molding cycle = 29 minutes per batch
Normal Time = (Observed Time)((Performance Rating)
= (29)(1.10) = 31.9
Standard Time = (Normal Time)/(1-Allowance)
= 31.90/(1-0.15)=37.5 minutes per batch
For Packing:
Average actual Packing time = 40 minutes
Normal Time (Observed Time)(.8) = 32
= 32/(1-0.15)=37.6 minutes per batch
Observed Time in Minutes
Task 1 2 3 4
Molding 26 30 29 31
Packing 45 50 35
04: Ch10 HR, Job Design - MGMT 3102: Fall 2013