1. © 2006 Prentice Hall, Inc.10 – 1 Operations Management Chapter 10 – Human Resources and Job Design Chapter 10 – Human Resources and Job Design © 2006 Prentice Hall, Inc. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e

2. © 2006 Prentice Hall, Inc.10 – 2 Outline  Global Company Profile: Southwest Airlines  Human Resource Strategy For Competitive Advantage  Constraints on Human Resource Strategy  Labor Planning  Employment-Stability Policies  Work Schedules  Job Classifications and Work Rules

3. © 2006 Prentice Hall, Inc.10 – 3 Outline – Continued  Job Design  Labor Specialization  Job Expansion  Psychological Components of Job Design  Self-Directed Teams  Motivation and Incentive Systems  Ergonomics and Work Methods

4. © 2006 Prentice Hall, Inc.10 – 4 Outline – Continued  The Visual Workplace  Ethics and the Work Environment  Labor Standards

5. © 2006 Prentice Hall, Inc.10 – 5 Learning Objectives When you complete this chapter, you should be able to: Identify or Define:  Job design  Job specialization  Job expansion  Tools of methods analysis  Ergonomics  Labor standards  Andon

6. © 2006 Prentice Hall, Inc.10 – 6 Learning Objectives When you complete this chapter, you should be able to: Describe or Explain:  Requirements of good job design  The visual workplace  Ethical issues in human resources

7. © 2006 Prentice Hall, Inc.10 – 7 Southwest Airlines  Profitable for over 30 years while United, Northwest, Delta, and USAir lost billions  Key strategy is human resources  Culture of caring for people in the totality of their lives, not just at work  Spends more to recruit and train than any other airline

8. © 2006 Prentice Hall, Inc.10 – 8 Southwest Airlines  Empowered employees  Wages higher than industry average  Stock options for some employees  Employees treated like customers  Success comes from people, not gimmicks or special equipment

9. © 2006 Prentice Hall, Inc.10 – 9 Human Resource Strategy The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized 1.People should be effectively utilized within the constraints of other operations management decisions 2.People should have a reasonable quality of work life in an atmosphere of mutual commitment and trust

10. © 2006 Prentice Hall, Inc.10 – 10 Constraints on Human Resource Strategy Figure 10.1 HUMAN RESOURCE STRATEGY Product strategy Skills needed Talents needed Materials used Safety What Schedules Time of day Time of year (seasonal) Stability of schedule When Location strategy Climate Temperature Noise Light Air quality Where Process strategy Technology Machinery and equipment used Safety Procedure Individual differences Strength and fatigue Information processing and response Who Layout strategy Fixed position Process Assembly line Work cell Product How

11. © 2006 Prentice Hall, Inc.10 – 11 Labor Planning 1.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 Employment Stability Policies

12. © 2006 Prentice Hall, Inc.10 – 12 Labor Planning 2.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 Employment Stability Policies

13. © 2006 Prentice Hall, Inc.10 – 13 Work Schedules  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

14. © 2006 Prentice Hall, Inc.10 – 14 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 pressure  Restricts flexibility in assignments and consequently efficiency of production

15. © 2006 Prentice Hall, Inc.10 – 15 Job Design  Specifying the tasks that constitute a job for an individual or a group 1.Job specialization 2.Job expansion 3.Psychological components 4.Self-directed teams 5.Motivation and incentive systems 6.Ergonomics and work methods 7.Visual workplace

16. © 2006 Prentice Hall, Inc.10 – 16 Labor Specialization  The division of labor into unique tasks  First suggested by Adam Smith in 1776 1.Development of dexterity and faster learning 2.Less loss of time 3.Development of specialized tools  Later Charles Babbage (1832) added another consideration 4.Wages exactly fit the required skill

17. © 2006 Prentice Hall, Inc.10 – 17 Job Expansion  Adding more variety to jobs  Intended to reduce boredom associated with labor specialization  Job enlargement  Job rotation  Job enrichment  Employee empowerment

18. © 2006 Prentice Hall, Inc.10 – 18 Job Enlargement Figure 10.2 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 (participating in a cross- function quality- improvement team) Control (Test circuits after assembly)

19. © 2006 Prentice Hall, Inc.10 – 19 Psychological Components of Job Design Human resource strategy requires consideration of the psychological components of job design

20. © 2006 Prentice Hall, Inc.10 – 20 Hawthorne Studies  They studied light levels, but discovered productivity improvement was independent from lighting levels  Introduced psychology into the workplace  The workplace social system and distinct roles played by individuals may be more important than physical factors  Individual differences may be dominant in job expectation and contribution

21. © 2006 Prentice Hall, Inc.10 – 21 Core Job Characteristics  Skill variety  Job identity  Job significance  Autonomy  Feedback Jobs should include the following characteristics

22. © 2006 Prentice Hall, Inc.10 – 22 Job Design Continuum Specialization Enlargement Self-directed teams Empowerment Enrichment Figure 10.3 Job expansion Increasing reliance on employee’s contribution and increasing responsibility accepted by employee

23. © 2006 Prentice Hall, Inc.10 – 23 Self-Directed Teams  Group of empowered individuals working together to reach a common goal  May be organized for long-term or short-term objectives  Effective because  Provide employee empowerment  Ensure core job characteristics  Meet individual psychological needs

24. © 2006 Prentice Hall, Inc.10 – 24 Self-Directed Teams  Ensure those who have legitimate contributions are on the team  Provide management support  Ensure the necessary training  Endorse clear objectives and goals  Financial and non-financial rewards  Many teams have definite life cycles To maximize effectiveness, managers should

25. © 2006 Prentice Hall, Inc.10 – 25 Benefits of Teams and Expanded Job Designs  Improved quality of work life  Improved job satisfaction  Increased motivation  Allows employees to accept more responsibility  Improved productivity and quality  Reduced turnover and absenteeism

26. © 2006 Prentice Hall, Inc.10 – 26 Limitations of Job Expansion 1.Higher capital cost 2.Individuals may prefer simple jobs 3.Higher wages rates for greater skills 4.Smaller labor pool 5.Increased accident rates 6.Current technology may not lend itself to job expansion

27. © 2006 Prentice Hall, Inc.10 – 27 Motivation and Incentive 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

28. © 2006 Prentice Hall, Inc.10 – 28 Ergonomics and Work Methods  Ergonomics is the study of the interface between man and machine  Often called human factors  Operator input to machines  Feedback to operators

29. © 2006 Prentice Hall, Inc.10 – 29 Ergonomics and Work Methods  The work environment  Illumination  Noise  Temperature  Humidity

30. © 2006 Prentice Hall, Inc.10 – 30 Job Design and Keyboards Figure 10.4

31. © 2006 Prentice Hall, Inc.10 – 31 Levels of Illumination Task Condition Type of Task or Area Illumination Level Type of Illumination Small detail, extreme accuracy Sewing, inspecting dark materials 100 Overhead ceiling lights and desk lamp Normal detail, prolonged periods Reading, parts assembly, general office work 20-50 Overhead ceiling lights Good contrast, fairly large objects Recreational facilities 5-10 Overhead ceiling lights Large objects Restaurants, stairways, warehouses 2-5 Overhead ceiling lights Table 10.2

32. © 2006 Prentice Hall, Inc.10 – 32 Decibel Levels EnvironmentCommon Noise NoisesSourcesDecibels Jet takeoff (200 ft)120 | Electric furnace areaPneumatic hammer100Very annoying | Printing press plantSubway train (20 ft)90 | Pneumatic drill (50 ft)80Ear protection Inside sports car| required if (50 mph)Vacuum cleaner (10 ft)70 exposed for 8 (50 mph)Vacuum cleaner (10 ft)70 exposed for 8 Near freewaySpeech (1 ft)| or more hours 60Intrusive Private business office| Light traffic (100 ft)Large transformer (200 ft)50Quiet | Minimum levels, Chicago 40 residential areas at night Soft whisper (5 ft)| residential areas at night Soft whisper (5 ft)| Studio (speech)30Very quiet Table 10.3

33. © 2006 Prentice Hall, Inc.10 – 33 Methods Analysis  Focuses on how task is performed  Used to analyze 1.Movement of individuals or material  Flow diagrams 2.Activities of human and machine and crew activity  Activity charts 3.Body movement  Micro-motion charts

34. © 2006 Prentice Hall, Inc.10 – 34 Flow Diagram Storage bins Machine 1 Mach. 2 Mach. 3Mach. 4 From press mach. Paint shop Welding Figure 10.5 (a)

35. © 2006 Prentice Hall, Inc.10 – 35 Storage bins Machine 1 Machine 2 Machine 3 Machine 4 From press mach. Paint shop Welding Flow Diagram Figure 10.5 (b)

36. © 2006 Prentice Hall, Inc.10 – 36 Process Chart Figure 10.5 (c)

37. © 2006 Prentice Hall, Inc.10 – 37 Activity Chart Figure 10.6

38. © 2006 Prentice Hall, Inc.10 – 38 Operation Chart Figure 10.7

39. © 2006 Prentice Hall, Inc.10 – 39 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

40. © 2006 Prentice Hall, Inc.10 – 40 The Visual Workplace  Present the big picture  Performance  Housekeeping Visual signals can take many forms and serve many functions

41. © 2006 Prentice Hall, Inc.10 – 41 The Visual Workplace Visual utensil holder encourages housekeeping A “3-minute service” clock reminds employees of the goal Figure 10.8

42. © 2006 Prentice Hall, Inc.10 – 42 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 APart BPart C Reorder point Figure 10.8

43. © 2006 Prentice Hall, Inc.10 – 43 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

44. © 2006 Prentice Hall, Inc.10 – 44 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

45. © 2006 Prentice Hall, Inc.10 – 45 Labor Standards  Effective manpower planning is dependent on a knowledge of the labor required  Labor standards are the amount of time required to perform a job or part of a job  Accurate labor standards help determine labor requirements, costs, and fair work