1. McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 7 Design of Work Systems

2. 7-2 Learning Objectives  Explain the importance of work design.  Briefly describe the two basic approaches to job design.  Discuss the advantages and disadvantages of specialization.  Explain the term knowledge-based pay.  Explain the purpose of methods analysis and describe how methods studies are performed.  Describe four commonly used techniques for motion study.

3. 7-3 Learning Objectives  Discuss the impact of working conditions on job design.  Define a standard time.  Describe and compare time study methods and perform calculations.  Describe work sampling and perform calculations.  Compare stopwatch time study and work sampling.  Contrast time and output pay systems.

4. 7-4  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: Incorporation of human factors in the design of the workplace Job Design

5. 7-5 Design of Work Systems  Specialization  Behavioral Approaches to Job Design  Teams  Methods Analysis  Motions Study  Working conditions

6. 7-6 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. 7-7 Specialization in Business: Advantages ForManagement: 1. Simplifies training 2. High productivity 3. Low wage costs ForLabor: 1. Low education and skill requirements 2. Minimum responsibilities 3. Little mental effort needed Table 7.1

8. 7-8 Disadvantages 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 Table 7.1

9. 7-9 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

10. 7-10 Motivation and Trust  Motivation  Influences quality and productivity  Contributes to work environment  Trust  Influences productivity and employee- management relations

11. 7-11 Teams  Benefits of teams  Higher quality  Higher productivity  Greater worker satisfaction  Self-directed teams  Groups of empowered to make certain changes in their work process

12. 7-12 Methods Analysis  Methods analysis  Analyzing how a job gets done  Begins with overall analysis  Moves to specific details

13. 7-13 Methods Analysis  Changes in tools and equipment  Changes in product design or new products  Changes in materials or procedures  Other factors (e.g. accidents, quality problems) The need for methods analysis can come from a number of different sources:

14. 7-14 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

15. 7-15 Selecting an Operation  Selecting a job to study consider:  High labor content  Done frequently  Unsafe  Tiring  Unpleasant  Noisy  Designated problem

16. 7-16 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  Worker-machine chart  Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle

17. 7-17 FLOW PROCESS CHART Job Requisition of petty cash Details of Method ANALYST D. Kolb PAGE 1 of 2 Operation Movement Inspection Delay Storage 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 Figure 7-2

18. 7-18 Motion Study Motion study is the systematic study of the human motions used to perform an operation.

19. 7-19 Motion Study Techniques  Motion study principles - guidelines for designing motion-efficient work procedures  Analysis of therbligs - basic elemental motions into which a job can be broken down  Micromotion study - use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze  Charts  Therbligs

20. 7-20 1.Eliminate unnecessary motions 2.Combine activities 3.Reduce fatigue 4.Improve the arrangement of the workplace 5.Improve the design of tools and equipment Developing Work Methods

21. 7-21 Therbligs  Therbligs: Basic elemental motions that make up a job.  Search  Select  Grasp  Hold  Transport load  Release load

22. 7-22 Working Conditions

23. 7-23 Working Conditions (cont’d) Noise & Vibration Causes of Accidents Safety Work Breaks

24. 7-24 Work Measurement  Work measurement: Determining how long it should take to do a job.  Standard time  Stopwatch time study  Historical times  Predetermined data  Work Sampling

25. 7-25 Standard time Standard time: The amount of time it should take a qualified worker to complete a specific task, working at a sustainable rate, using given methods, tools and equipment, raw materials, and workplace arrangement.

26. 7-26 Stopwatch Time Study  Stopwatch Time Study: Development of a time standard based on observations of one worker taken over a number of cycles.  The basic steps in a time study: 1.Define the task to be studied 2.Determine the number of cycles to observe 3.Time the job 4.Compute the standard time

27. 7-27 Standard Elemental Times  Standard elemental times: Time standards derived from a firm’s historical data.  Steps for standard elemental times 1.Analyze the job 2.Check file for historical times 3.Modify file times if necessary 4.Sum elemental times to get normal time

28. 7-28 Predetermined Time Standards  Predetermined time standards: Published data based on extensive research to determine standard elemental times.  Advantages: 1.Based on large number of workers under controlled conditions 2.Analyst not requires to rate performance 3.No disruption of the operation 4.Standards can be established

29. 7-29 Work Sampling  Work sampling: technique for estimating the proportion of time that a worker or machine spends on various activities and idle time.  Work sampling involves making brief observations of a worker or machine at random intervals  Work sampling does not require  timing an activity  continuous observation of an activity

30. 7-30 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

31. 7-31 Form of Incentive Plan  Accurate  Easy to apply  Consistent  Easy to understand  Fair

32. 7-32 Compensation  Individual Incentive Plans  Group Incentive Plans  Knowledge-Based Pay System  Management Compensation