1. SECTION 2 STRATEGIC DESIGN
Operations Management I
Dirección de Operaciones I- English teaching
Departamento de Organización de Empresas y Marketing
Área de Organización de Empresas
SECTION 2 STRATEGIC DESIGN
3º GADI- 5º DG-ADI-DER
Slide presentation Chapter 5

2. JOB DESIGN AND WORK MEASUREMENT
CHAPTER 5
JOB DESIGN AND WORK MEASUREMENT
5.1. Job Design
5.2. Methods Analysis
Labor Standards and Work Measurement

3. 5.1 Job Design
Specifying the tasks that constitute a job for an individual or a group
Job specialization
Job expansion
Psychological components
Self-directed teams
Motivation and incentive systems
Ergonomics and work methods
Visual workplace

4. 1. Labor Specialization The division of labor into unique tasks
First suggested by Adam Smith in 1776
Development of dexterity and faster learning
Less loss of time
Development of specialized tools
Later Charles Babbage (1832) added another consideration
Wages exactly fit the required skill

5. 2. Job Expansion Adding more variety to jobs
Intended to reduce boredom associated with labor specialization
Job enlargement: The grouping of a variety of tasks about the same skill level; horizontal expansion
Job rotation: A system in which an employee is moved from one specialized job to another
Job enrichment: A method of giving an employee more responsibility that includes some of the planning and control necessary for job accomplishment; vertical expansion
Employee empowerment: Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization

6. Job Enlargement-Job Enrichment
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)

7. 3. Psychological Components of Job Design
Human resource strategy requires consideration of the psychological components of job design.
These components focus on how to design jobs that meet some minimum psychological requirements
Hawthorne studies (late 1920’s-1930’s) introduced psychology to the workplace: The workplace social system and distinct roles played by individuals may be more important than physical factors

8. Core Job Characteristics
Jobs should include the following characteristics
Skill variety
Job identity
Job significance
Autonomy
Feedback

9. 4. 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

10. Job Design Continuum Self-directed teams
Increasing reliance on employee’s contribution and increasing responsibility accepted by employee
Specialization
Enlargement
Self-directed teams
Empowerment
Enrichment
Job expansion

11. 4. Self-Directed Teams To maximize effectiveness, managers should
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

12. 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
Limitations of Job Expansion
Higher capital cost
Individuals may prefer simple jobs
Higher wages rates for greater skills
Smaller labor pool
Increased accident rates
Current technology may not lend itself to job expansion

13. 5. 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

14. 6. 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
The work environment
Illumination
Noise
Temperature
Humidity

15. 7. 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
Visual systems can take many forms and serve many functions:
Present the big picture
Performance (kanbans, clocks, … )
Housekeeping (shadow boards and footprinting, labeling, color-coded signs and lights, … )

16. Examples: The Visual Workplace
Visual utensil holder encourages housekeeping
A “3-minute service” clock reminds employees of the goal

17. Examples: 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

18. Examples: 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

19. 5.2 Methods Analysis Focuses on how task is performed Used to analyze
Movement of individuals or material
Flow diagrams: drawings used to analyze movement of people or material
Process charts: A graphic representation that depicts a sequence of steps for a process
Activities of human and machine and crew activity
Activity charts: A way of improving utilization of an operator and a machine or some combination of operators (a crew) and machines
Body movement
Operations or micro-motion charts: A chart depicting right and left hand motions

20. Flow Diagram Old method Storage bins Machine 1 Mach. 2 Mach. 3 Mach. 4
From
press mach.
Paint shop
Welding
Old method

21. Flow Diagram New method Machine 4 Welding Machine 3 Paint shop
Storage bins
Machine 1
Machine 2
Machine 3
Machine 4
From press mach.
Paint shop
Welding
New method

22. Process Chart
New method

23. Activity Chart

24. Operation Chart

25. 5.3 Labor Standards and Work Measurement
Started early in the 20th century (F. Taylor and F. and L. Gilbreth)
Important to both manufacturing and service organizations
Necessary for determining staffing requirements
Important to labor incentive systems
Meaningful standards help determine:
Labor content of items produced
Staffing needs
Cost and time estimates
Crew size and work balance
Expected production
Basis of wage incentive plans
Efficiency of employees
This slide provides some reasons that capacity is an issue. The following slides guide a discussion of capacity.

26. 5.3 Labor Standards and Work Measurement
Labor standards may be set in four ways:
Historical experience
Time studies
Predetermined time standards
Work sampling

27. 1. Historical Experience
How the task was performed last time
Easy and inexpensive
Data available from production records or time cards
Data is not objective and may be inaccurate
Not recommended

28. 2. 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
Eight steps:
Define the task
Divide the task into precise elements
Decide how many times to measure the task
Time and record element times and rating of performance

29. 2. Time Studies Compute average cycle time =
Average observed cycle time
sum of the times recorded to perform each element
number of cycles observed =
Determine performance rating and normal time
average observed cycle time
performance rating factor
Normal time = x
Add all the normal times for each element to develop the total normal time for the task
Compute the standard time
Standard time =
total normal time
1 - allowance factor

30. 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

31. Example 1 Normal time = (average observed time) x (rating factor)
The time study of a work operation yielded an average observed time of 4.0 minutes. The analyst rated the observed worker at 85%. This means the worker performed at 85% of normal when the study was made. The firm uses a 13% allowance factor. We want to compute the standard time.
SOLUTION:
Normal time = (average observed time) x (rating factor)
= (4.0)(.85)
= 3.4 minutes
Standard time = = =
normal time
1 - allowance factor
3.4
.87
= 3.9 minutes

32. Example 2
Management Science Associates promotes its management development seminars by mailing thousands of individually composed and typed letters to various firms. A time study has been conducted on the task of preparing letters for mailing. ON the basis of the following observations, MSA wants to develop a time standard for this task. The firm’s personal, delay, and fatigue allowance factor is 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)

33. 3. Predetermined Time Standards
Divide manual work into small basic elements that have established times
Can be done in a laboratory away from the actual production operation
Can be set before the work is actually performed
No performance ratings are necessary
Methods Time Measurement (MTM)
Therbligs (Gilbreth): basic motions (select, grasp, position, assemble, reach, hold, rest, and inspect)
Time Measurement Unit (TMU): unit for very basic micromotions in which 1TMU = min or TMUs = 1hr
You might point out to students that this slide links capacity to work measurement (standard times).

34. MTM Table

35. 4. Work Sampling
Estimates percent of time a worker spends on various tasks
Less expensive than time study
Observers need little training
Studies can be delayed or interrupted with little impact on results
Worker has little chance to affect results
Less intrusive
Adv.
Does not divide work elements as completely as time study
Can yield biased results if observer does not follow random pattern
Less accurate than time study, especially when job element times are short
Disadv.