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© 2008 Prentice Hall, Inc. 10 – 1
Operat ionsManagement
Chapter 10 – Human Resourcesand Job Design
PowerPoint p resentat ion to accompany
Heizer/Render
Pr inciples o f Operat ions Management, 7e
Operations Management, 9e
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Rusty Wallace’s NASCARRacing Team
NASCAR racing became verypopu lar in the 1990s w ith huge
sponso rship and pr ize money High perform ance pi t crews are a
key element o f a successfu l raceteam
Pit crew members can earn$100,000 per year – for chang ingtires!
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Rusty Wallace’s NASCARRacing Team
Each posi t ion has very speci f icwork standards
Pit crews are high ly o rganizedand go though r igorous phys icalt raining
Pit stops are videotaped to lookfor imp rovements
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Human Resource Strategy
The ob ject ive of a human resou rcestrategy is to manage labo r and
design jobs so peop le are effect ivelyand eff ic ient ly u t i l ized
1. Peop le shou ld be ef fect ively ut il izedw i th in the con straints of o ther
operat ions m anagement decis ions
2. People should have a reasonable qual ity
of work l ife in an atmosphere of mutual
comm i tment and trust
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Cons train ts on Human
Resource Strategy
Figure 10.1
HUMANRESOURCESTRATEGY
Produc t strategy• Ski l ls n eeded• Talents n eeded• Materials used• Safety
Schedules• Time of day• Time of year(seasonal)
• Stabi l i ty ofschedules
When
Locat ion strategy• Climate• Temperature• Noise• Light• Air qual i ty
Process strategy• Technology• Machinery andequipment used
• Safety
Individ ual dif ferences• Strength andfat igue
• Informat ionprocess ing andresponse
Who
Layout strategy• Fixed posi t ion• Process• Assembly l ine• Work cel l• Product
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Labo r Planning
1. Fo l low demand exact ly
Matches d i rect labo r costs toproduct ion
Incu rs costs in hi r ing and
term inat ion, unemploym entinsu rance, and premium wages
Labo r is treated as a var iable cost
Employment Stabi l i ty Pol ic ies
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Labo r Planning
2. Ho ld employment cons tan t
Maintains trained wo rkfo rce
Minim izes h ir ing, term inat ion , andunemploym ent costs
Emp loyees may be underut i l izeddu r ing slack per iods
Labo r is treated as a f ixed cos t
Employment Stabi l i ty Pol ic ies
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Work Schedu les
Standard work s chedule
Five eight-hou r days
Flex-t ime
Al low s emp loyees, w i th in l imi ts, todeterm ine their own schedules
Flexib le work week
Fewer but lon ger days: l ight-assemblyplants
Part-t ime
Fewer, po ss ibly irregular, hours :restaurants
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Job Class i f icat ion and
Work Rules Speci fy who can do what
Speci fy when they can do i t
Speci fy under what condi t ions theycan do i t
Often resul t of un ion con tracts
Restr icts f lexib i l ity in ass ignmentsand consequent ly effic iency ofproduct ion
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Job Design
Speci fy ing the tasks that const i tutea job fo r an ind iv idual or a group
1. Job spec ial izat ion
2. Job expans ion
3. Psycho log ical componen ts
4. Sel f-d i rected teams
5. Mot ivat ion and incent ive sys tems
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Labor Spec ial izat ion
The div is ion o f labo r into unique tasks
Example of job: assembly l ine
First suggested by Adam Sm ith in 17761. Development of dexter ity and fas ter
learning : repeti t ion
2. L es s lo ss of t ime : wouldn’t changing jobs
3. Development of spec ial ized too ls
Later Charles Babbage (1832) addedano ther considerat ion
4. Wages exact ly f i t the requ i red sk i l l
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Job Expans ion
Adding more var iety to jobs
In tended to reduce bo redom associatedw ith labo r special izat ion
Job enlargement: add tasks w ith sim i larski l ls to an exist ing job
Job rotat ion: move from one special ized jobto another
Job enr ichment : adds planning and contro lto the job
Emp loyee empowerment: emp loyees acceptrespons ib i l ity for a var iety o f decis ion
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Job Enlargement and JobEnrichment
Figure 10.2
Task #3(Loc k pr inted circui tboard into f ixture for
next operation)
Present job(Manual ly insert andsolder six resistors)
Task #2(Adhere labels
to pr intedcircui t b oard)
Enlarged job
Enr iched jobPlanning
(Part icipate in a cros s- funct ion qu ali ty
impro vement team)
Control(Test c ircuits after
assembly)
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Psychological Components o f Job Design
Human resourc e strategy requires con siderat ion o f the p sych ologica lcomponents of job des ign
Hawtho rne Studies
In t roduced psycho logy into the work place
The workplace social sys tem and dist inct ro les played b yindiv iduals m ay be more impo r tant than phy sica l factors
Ind ividual di f ferences may be dom inant in what anemplo yee expects for the job and what the emplo yee think sher of his contr ibut ion to the job should be
Hires p eople wi th enthusiasm and empower to excel – fewer com plaints and h igher prof i ts
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Job Design Con t inuum
Special ization
Enlargement
Self-directedteams
Empowerment
Enr ichment
Figure 10.3
Job expansion
Increasing
rel iance onemployee’scontr ibut ionandincreasingresponsib i l i tyaccepted by
employee
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Self-Directed Teams
Group o f empowered indiv idualswork ing together to reach acommon goal
May be organized fo r long-term orshort-term ob ject ives
Effect ive because
Provide employee empowerment
Ensu re co re job character is t ics
Meet indiv idual ps ychologica l needs
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Self-Directed Teams
Ensu re those who have legi t imate
contr ibut ions are on the team Prov ide management support
Ensu re the necessary training
Endo rse clear ob ject ives and goals
Financ ial and non -f inancial rewards
Superv isors mus t release con tro l
To maximize effect iveness, managers should
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Benefi ts o f Teams and
Expanded Job Designs Improved qual ity o f work l ife
Improved job satis fact ion
Inc reased mot ivat ion
A l low s employees to accept more
responsib i l i ty Improved produc t iv ity and qual ity
Reduced turnover and absenteeism
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Motivat ion and Incen t ive
Systems
Bonuses - cash o r stock op t ions
Prof i t -shar ing - pro f i ts for distr ibu t ion toemployees
Gain shar ing - rewards for improv ements
Incent ive plans - typ ically based on
product ion rates
Know ledge-based sys tems - reward fo rknow ledge or ski l ls
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Ergonom ics and the Work
Envi ronment
Ergonom ics is the study of theinterface between man andmachine
Often calledhuman factors
Understanding ergonom icsissues helps to improvehum an performance
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Job Design and Keyboards
Figure 10.4
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Methods Analys is
Focuses on how task is per formed
Used to analyze
1. Movement of ind iv iduals or mater ial Flow d iagrams and pro cess charts
2. Act iv i ties of human and mach ine andcrew act iv i ty
Act iv i ty c harts
3. Body movemen t
Micro-mo t ion charts
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Flow Diagram
Storage bins
Machine 1
Mach . 2
Mach . 3 Mach . 4
From
pressmach. Paint
shop
Welding
Figure 10.5 (a)
Old Method
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Storagebins
Machine 1
Machine 2
Machine 3
Machine 4
Frompressmach.
Paintshop
Welding
Flow Diag ram
Figure 10.5 (b)
New method: improved work f low and less s torage and
space
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Process Chart
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Act iv i ty Chart
Figure 10.6
Two-person Crew do ing an Oi l Change in 12 minutes at
Quick Car Lube
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Operat ion Chart
Figure 10.7
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The Visual Workp lace
Use low -cost visual devices toshare informat ion qu ick ly andaccurately
Displays and g raphs replacepr intou ts and paperwo rk
Able to provide t imely informat ionin a dynamic environment
System should focus onimprovement
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The Visual Workp lace
Present the big p icture
Performance
Housekeeping
Visual signals can take many form sand serve many fun ct ions
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The Visual Workp lace
Visual utensi l h olderencourageshousekeeping
A “3- minute service”clock reminds employeesof the goal
Figure 10.8
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The Visual Workp lace
Visual sig nals at themachine not i fysupp or t personn el
Visual kanbans reduceinventory and fos ter JIT
Andon
Line/machinestoppage
Parts/maintenanceneeded
Al l systems go
Part A Part B Part C
Reorder
po in t
Figure 10.8
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The Visual Workp lace
Quanti t ies in bin s ind icate
ongo ing daily requirementsand cl ipboards provideinformat ion on s chedulechanges
Process speci f icat ions andoperat ing p rocedu res areposted in each work area
Figure 10.8
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Labo r Standards
Effect ive manpower plann ing isdependent on a know ledge of thelabo r required
Labor s tandards are the amount o ft ime requ ired to perform a job orpart of a job
Accurate labo r standards helpdeterm ine labo r requ irements ,costs, and fai r work
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• Timing a sample of a worker’s performance and using
i t to set a standard
• A trained and exper ienced person can establ ish astandard with eight steps:
1. Def ine the task to be s tud ied
2. D iv ide the task in to prec ise elements
3. Dec ide how many t imes to measure the task
4. Time and record elemental times and rat ings of
performance5. Compu te the average observed (actual) t ime
Average observed t im e =
(Sum of the t imes reco rded to perform each element)
Number of observat ion
Time Stud ies
Equation 10-1
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6. Determine performance rat ing (work pace) and
then com pute the normal t ime for each elementNormal t ime =
(Average observed time) X (Performance rating facto r)
7. Add the norm al times fo r each element to develop
a total no rmal t ime for th e task8. Compute the standard t im e for al lowances su ch aspersonal needs, unavoidable wo rk delays, and workerfat igue
Standard t ime = Total norm al t ime1-Al low ance facto r
Time Stud ies
Equation 10-2
Equation 10-3
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The t ime stud y o f a wo rk operat ion at a Red Lobsterrestaurant yielded an average observed tim e of 4.0m inu tes. The analys ts rate the observed worker at85%. This means the worker performed at 85% ofnorm al when the study was m ade. The f i rm uses a
13% allowance facto r. Red Lobster wants tocom pute the normal t ime and s tandard t ime for th isoperat ion.
The firm needs t o app ly Equ ation s (10-2) and (10-3)
Time Stud ies Example 1
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• Solut ion:
Average observed tim e = 4.0 min
Normal t ime = (Average observed t im e) X (Performance rat ing factor)
= (4.0) X (.85)
= 3.4 min
Standard time = Norm al time = 3.4
1 – A llow ance facto r 1 - .13
= 3.90 min
Because the observed work er rated at 85% (slower than average), thenormal time is less than the worker’s 4.0 minute average time.
Time Stud ies Example 1
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no 1
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Management Science As sociates p romotes i ts managementdevelopment seminars by mail ing thousands of indiv idual lycom posed and typed let ters to var ious f i rms . A t ime stud yhas been conducted on the task of prepar ing let ters formai l ing. On the basis of the fol lowing observat ions,
Management Science Asso ciates wants to develop a t imestandard for this task. The firm’s personal, delay, and fatigueallowance factor is 15%.
Time Stud ies Example 2
Job Element Observation (minutes) Performance
rating
1 2 3 4 5
(A) Compose and type letter 8 10 9 21* 11 120%
(B) Type envelope address 2 3 2 1 3 105%
(C) Stuff, stamp, seal, and sort
envelopes
2 1 5* 2 1 110%
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Approach: on ce data have been col lected, theprocedure is to:
1. Delete unusual or nonrecur ring observat ions
2. Compute the average time for each e lement , us ing
equation (10-1)3. Compute the normal t ime fo r each e lement , us ing
equation (10-2)
4. Find the total no rmal t ime
5. Compute the standard t ime, us ing equat ion (10-3)
Time Stud ies Example 2
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Solut ion:1.Delete observat ions such as those marked w ith anaster ik (*). These may be due to bu sinessinterrup t ions, etc; they are no t part of the jobelement,but may be personal or delay t ime.
2. Average time for each job element:
Average time fo r A = 8+10+9+11 = 9.5 m in
4
Average time fo r B = 2+3+2+1+3 = 2.2 m in
5
Average time fo r C = 2+1+2+1 = 1.5 m in
4
Time Stud ies Example 2
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3. Norm al t ime fo r each job element:Normal t ime for A = (Av erage observed t ime) X (Perform ance rat ing )
= (9.5)(1.2)
= 11.4 m in
Normal tim e fo r B = (2.2)(1.05)
= 2.31 min
Normal tim e fo r C = (1.5)(1.1)
= 1.65 min
Note: Normal t imes are computed fo r each element because theperformance rat ing facto r (work p ace) may vary for each element, as itd id in th is case
Time Stud ies Example 2
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4. Add the norm al t imes for each element to f ind the tota lno rmal t ime (the normal t ime for the who le job)
Total normal tim e = 11.40 + 2.31 + 1.65
= 15.36 min
5. Standard t ime for the job :
Standard time = Norm al time = 15.36
1 – A llow ance facto r 1 - .15
= 18.07 min
Thus , 18.07 m inu tes is the t ime standard for th is job .
Time Stud ies Example 2
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no 2
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