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© 2008 Prentice Hall, Inc. 10 – 1
Operations ManagementOperations Management
Chapter 10 Human Resources and Job Design
David SimarmataErdita Nimas B
SimonNovan
© 2008 Prentice Hall, Inc. 10 – 2
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
© 2008 Prentice Hall, Inc. 10 – 3
Constraints on Human Resource Strategy
HUMAN RESOURCE STRATEGY
Product strategy• Skills needed• Talents needed• Materials used• Safety
What
Schedules• Time of day• Time of year
(seasonal)• Stability of
schedules
When
Location strategy• Climate• Temperature• Noise• Light• Air quality
Wher
e
Process strategy• Technology• Machinery and
equipment used• SafetyPro
cedure
Individual differences• Strength and
fatigue• Information
processing and response
Who
Layout strategy• Fixed position• Process• Assembly line• Work cell• Product
How
© 2008 Prentice Hall, Inc. 10 – 4
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
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
© 2008 Prentice Hall, Inc. 10 – 5
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
© 2008 Prentice Hall, Inc. 10 – 6
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 and
consequently efficiency of production
© 2008 Prentice Hall, Inc. 10 – 7
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
© 2008 Prentice Hall, Inc. 10 – 8
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
© 2008 Prentice Hall, Inc. 10 – 9
Job Expansion
Adding more variety to jobs Intended to reduce boredom associated with labor
specialization Job enlargement Job rotation Job enrichment Employee empowerment
© 2008 Prentice Hall, Inc. 10 – 10
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 jobPlanning
(Participate in a cross-function quality
improvement team)
Control(Test circuits after
assembly)
© 2008 Prentice Hall, Inc. 10 – 11
Psychological Components of Job Design
Human resource strategy requires consideration of the psychological components of job design
© 2008 Prentice Hall, Inc. 10 – 12
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
© 2008 Prentice Hall, Inc. 10 – 13
Core Job Characteristics
Skill variety Job identity Job significance Autonomy Feedback
Jobs should include the following characteristics
© 2008 Prentice Hall, Inc. 10 – 14
Job Design Continuum
Specialization
Enlargement
Self-directed teams
Empowerment
Enrichment
Job expansion
Increasing reliance on employee’s contribution and increasing responsibility accepted by employee
© 2008 Prentice Hall, Inc. 10 – 15
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
© 2008 Prentice Hall, Inc. 10 – 16
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 Supervisors must release control
To maximize effectiveness, managers should
© 2008 Prentice Hall, Inc. 10 – 17
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
© 2008 Prentice Hall, Inc. 10 – 18
1. Higher capital cost
2. Individuals may prefer simple jobs
3. Higher wages rates for greater skills
4. Smaller labor pool
5. Higher training costs
Limitations of Job Expansion
© 2008 Prentice Hall, Inc. 10 – 19
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
© 2008 Prentice Hall, Inc. 10 – 20
Ergonomics and the Work Environment
Ergonomics is the study of the interface between man and machine Often called
human factors Operator input
to machines
© 2008 Prentice Hall, Inc. 10 – 21
Ergonomics and Work Methods
Feedback to operators The work environment
Illumination Noise Temperature Humidity
© 2008 Prentice Hall, Inc. 10 – 22
Job Design and Keyboards
Figure 10.4
© 2008 Prentice Hall, Inc. 10 – 23
Levels of IlluminationTask Condition Type of Task
or AreaIllumination
LevelType 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
© 2008 Prentice Hall, Inc. 10 – 24
Decibel LevelsEnvironment Common Noise
Noises Sources Decibels
Jet takeoff (200 ft) 120|
Electric furnace area Pneumatic hammer 100 Very annoying|
Printing press plant Subway train (20 ft) 90|
Pneumatic drill (50 ft) 80 Ear protectionInside sports car (50 mph) | required if Vacuum cleaner (10 ft) 70 exposed for 8Near freeway (auto traffic) Speech (1 ft) | or more hours
60 IntrusivePrivate business office |Light traffic (100 ft) Large transformer (200 ft) 50 Quiet
|Minimum levels, Chicago 40 residential areas at night Soft whisper (5 ft) |Studio (speech) 30 Very quiet
Table 10.3
© 2008 Prentice Hall, Inc. 10 – 25
Methods Analysis
Focuses on how task is performed Methods techniques are used to analyze
1. Movement of individuals or material Flow diagrams and process charts
2. Activities of human and machine and crew activity Activity charts
3. Body movement Micro-motion charts
© 2008 Prentice Hall, Inc. 10 – 26
Flow Diagram
Storage bins
Machine 1
Mach. 2
Mach. 3 Mach. 4
From
press mach. Paint
shop
Welding
Figure 10.5 (a)
© 2008 Prentice Hall, Inc. 10 – 27
Storage bins
Machine 1
Machine 2
Machine 3
Machine 4
From press mach.
Paint shop
Welding
Flow Diagram
Figure 10.5 (b)
© 2008 Prentice Hall, Inc. 10 – 28
Process Chart
Figure 10.5 (c)
© 2008 Prentice Hall, Inc. 10 – 29
Activity Chart
Figure 10.6
© 2008 Prentice Hall, Inc. 10 – 30
Operation Chart
Figure 10.7
© 2008 Prentice Hall, Inc. 10 – 31
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
© 2008 Prentice Hall, Inc. 10 – 32
The Visual Workplace
Present the big picture Performance Housekeeping
Visual signals can take many forms and serve many functions
© 2008 Prentice Hall, Inc. 10 – 33
The Visual Workplace
Visual utensil holder encourages housekeeping
A “3-minute service” clock reminds employees of the goal
Figure 10.8
© 2008 Prentice Hall, Inc. 10 – 34
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
© 2008 Prentice Hall, Inc. 10 – 35
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
© 2008 Prentice Hall, Inc. 10 – 36
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
© 2008 Prentice Hall, Inc. 10 – 37
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
© 2008 Prentice Hall, Inc. 10 – 38
Meaningful Standards Help Determine
1. Labor content of items produced2. Staffing needs3. Cost and time estimates4. Crew size and work balance5. Expected production6. Basis of wage incentive plans7. Efficiency of employees
© 2008 Prentice Hall, Inc. 10 – 39
Labor Standards
May be set in four ways:
1. Historical experience
2. Time studies
3. Predetermined time standards
4. Work sampling
© 2008 Prentice Hall, Inc. 10 – 40
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
Historical Experience
© 2008 Prentice Hall, Inc. 10 – 41
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
© 2008 Prentice Hall, Inc. 10 – 42
Time Studies
1. Define the task to be studied
2. Divide the task into precise elements
3. Decide how many times to measure the task
4. Time and record element times and rating of performance
© 2008 Prentice Hall, Inc. 10 – 43
Time Studies
5. Compute average observed time
Average observed
time
Sum of the times recorded to perform each element
Number of observations=
6. Determine performance rating and normal time
Normal time = xAverage
observed time
Performance rating factor
© 2008 Prentice Hall, Inc. 10 – 44
Time Studies
7. Add the normal times for each element to develop the total normal time for the task
8. Compute the standard time
Standard time =Total normal time
1 - Allowance factor
© 2008 Prentice Hall, Inc. 10 – 45
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
© 2008 Prentice Hall, Inc. 10 – 46
Work Sampling Estimates percent of time a worker spends on
various tasks Requires random observations to record worker
activity Determines how employees allocate their time Can be used to set staffing levels, reassign duties,
estimate costs, and set delay allowances
© 2008 Prentice Hall, Inc. 10 – 47
Work Sampling
Advantages of work sampling 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
© 2008 Prentice Hall, Inc. 10 – 48
Disadvantages of work sampling Does not divide work elements as completely as
time study Can yield biased results if observer does not
follow random pattern Less accurate, especially when
job element times are short
Work Sampling
© 2008 Prentice Hall, Inc. 10 – 49
CASE – HARD ROCK’S HUMAN RESOURSE STRATEGY
Bring company value into company culture – experience strategy
The employees are not just the best available for the position, they are the best qualified as well – long term objectives
People development Build job satisfaction and
motivations from psychological and monetary factors.