WK 3 - Job Design

Job Design and
Work Measurement
10
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Global Edition, Eleventh Edition
Principles of Operations Management, Global Edition, Ninth Edition
PowerPoint slides by Jeff Heyl
© 2014
© 2014
Pearson
Pearson
Education
Education 10 - 1
Outline
► Global Company Profile:
Rusty Wallace’s NASCAR Racing Team
► Human Resource Strategy for
Competitive Advantage
► Labor Planning
► Job Design
► Ergonomics and the Work
Environment
© 2014 Pearson Education 10 - 2

Outline - Continued
► Methods Analysis
► The Visual Workplace
► Labor Standards
► Ethics

Learning Objectives
When you complete this chapter you
should be able to:
1. Describe labor planning policies

2. Identify the major issues in job design
3. Identify major ergonomic and work
environment issues
4. Use the tools of methods analysis

Learning Objectives
When you complete this chapter you
should be able to:
5. Identify four ways of establishing labor

standards
6. Compute the normal and standard times in
a time study
7. Find the proper sample size for a time study

High-Performance Pit Crew
Teamwork Makes the Difference
between Winning and Losing
► NASCAR racing became very

popular in the 1990s with huge
sponsorship and prize money
► High performance pit crews are a
key element of a successful race
team
© 2014
© 2014
Pearson
Pearson
Education
Education 10 - 6
Rusty Wallace’s NASCAR
Racing Team
► Pit crew members can earn
$100,000 per year – for changing
tires!
► Each position has very specific
labor standards
► Pit crews are highly organized and
go though rigorous physical training
► Pit stops are videotaped to look for
improvements
© 2014
© 2014
Pearson
Pearson
Education
Education 10 - 7
Rusty Wallace’s NASCAR
Racing Team

Human Resource Strategy
The objective of a human resource

strategy is to manage labor and
design jobs so people are effectively
and efficiently utilized

Human Resource Strategy
▶ Ensure that people:
1. Are effectively utilized within the
constraints of other operations
management decisions
2. Have a reasonable quality of work life
in an atmosphere of mutual
commitment and trust

Constraints on Human
Resource Strategy
Product strategy Process strategy
• Skills needed • Technology
• Talents needed • Machinery and
• Materials used equipment used
• Safety • Safety
Schedules
Individual differences
• Time of day When Who
HUMAN • Strength and fatigue
• Time of year
RESOURCE • Information
(seasonal)
STRATEGY processing and
• Stability of
response
schedules
Location strategy Layout strategy

• Climate • Fixed position
• Temperature • Process
• Noise • Assembly line
• Light • Work cell
• Air quality • Product
Figure 10.1
Labor Planning
Employment-Stability Policies
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

Labor Planning
Employment-Stability Policies
2. Hold employment constant
► Maintains trained workforce
► Minimizes hiring, layoff, and
unemployment costs
► Employees may be underutilized during
slack periods
► Labor is treated as a fixed cost

Work Schedules
▶ Standard work schedule
▶ Five eight-hour days
▶ Flextime
▶ Allows employees, within limits, to
determine their own schedules
▶ Flexible work week
▶ Fewer but longer days
▶ Part-time
▶ Fewer, possibly irregular, hours
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

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

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

Job Expansion
▶ Adding more variety to jobs
▶ Intended to reduce boredom associated
with labor specialization
▶ Job enlargement
▶ Job rotation
▶ Job enrichment
▶ Employee empowerment

Job Enlargement
Figure 10.2
Enriched job
Planning
(Participate in a cross-
function quality
improvement team)
Enlarged job
Task #3 Present job Task #2
(Lock printed circuit (Manually insert and (Adhere labels
board into fixture for solder six resistors) to printed circuit
next operation) board)
Control
(Test circuits after
assembly)

Psychological Components
of Job Design
Human resource strategy requires
consideration of the psychological
components
of job design

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

Core Job Characteristics
Jobs should include the following
characteristics
1. Skill variety
2. Job identity
3. Job significance
4. Autonomy
5. Feedback
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

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
► Supervisors must release control

Job Design Continuum
Self-directed
Figure 10.3 teams
Empowerment
Self-direction
Enrichment
Enlargement
Specialization
Job expansion

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
1. Higher capital cost

2. Individuals may prefer simple jobs
3. Higher wage rates for greater skills
4. Smaller labor pool
5. Higher training costs

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. Higher training costs

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

Ergonomics and the Work
Environment
▶ Ergonomics is the study of the interface
between man and machine
▶ Often called
human factors
▶ Operator input
to machines

Ergonomics and Work Methods
▶ Feedback to operators
▶ The work environment
▶ Illumination
▶ Noise
▶ Temperature
▶ Humidity

Recommended Levels of
Illumination
Figure 10.4a

Levels of Illumination
TASK CONDITION TYPE OF TASK ILLUMINATION TYPE OF
OR AREA LEVEL ILLUMINATION
Small detail, Sewing, inspecting 100 Overhead ceiling
extreme accuracy dark materials lights and desk
lamp
Normal detail, Reading, parts 20-50 Overhead ceiling
prolonged periods assembly, general lights
office work
Good contrast, fairly Recreational 5-10 Overhead ceiling
large objects facilities lights
Large objects Restaurants, 2-5 Overhead ceiling

stairways, lights
warehouses

Decibel Levels
Table 10.4b

Methods Analysis
▶ Focuses on how task is performed
▶ 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
▶ Operations charts

Flow Diagram
Welding
From
Storage bins
press
mach. Paint
shop
Mach. 3 Mach. 4
Machine 1
Mach. 2
Figure 10.5 (a)

Flow Diagram
Machine 4 Welding
Machine 3
Paint
Machine 2 shop
Machine 1
From
press Storage
mach. bins
Figure 10.5 (b)

Process
Chart
Figure 10.5 (c)

Activity Chart
Figure 10.6
Operation Chart
Figure 10.7

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 signals can take many forms
and serve many functions
► Present the big picture

► Performance
► Housekeeping

Visual utensil holder A “3-minute service” clock
encourages reminds employees of the
housekeeping goal
Figure 10.8
Visual signals at the Visual kanbans reduce
machine notify inventory and foster JIT
support personnel
Reorder
Line/machine point
stoppage
Parts/
maintenance
needed
All systems go
Part A Part B Part C
Andon
Figure 10.8
Quantities in bins indicate

ongoing daily requirements Company data, process
and clipboards provide specifications, and operating
information on schedule procedures are posted in
changes each work area
Figure 10.8
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

Labor Standards
▶ Started early in the 20th century
▶ Important to both manufacturing and
service organizations
▶ Necessary for determining staffing
requirements
▶ Important to labor incentive systems

Meaningful Standards Help
Determine
1. Labor content of items produced
2. Staffing needs
3. Cost and time estimates
4. Crew size and work balance
5. Expected production
6. Basis of wage-incentive plans
7. Efficiency of employees
Labor Standards
May be set in four ways:
1. Historical experience
2. Time studies
3. Predetermined time standards
4. Work sampling

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

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

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

Time Studies
5. Compute average observed time
Sum of the times recorded to
Average perform each element
observed =
time Number of observations
6. Determine performance rating and

normal time
Average Performance
Normal time = observed x
rating factor
time
Time Studies
7. Add the normal times for each

element to develop the total normal
time for the task
8. Compute the standard time
Total normal time

Standard time =
1 - Allowance factor

Rest Allowances
▶ Personal time 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

Rest Allowances
Allowance Factors (in percentage) for
TABLE 10.1
Various Classes of Work
1. Constant allowances:
(A) Personal allowance …………………………………….. 5
(B) Basic fatigue allowance ………………………………... 4
2. Variable allowances:
(A) Standing allowance …………………………………….. 2
(B) Abnormal position
(i) Awkward (bending) …………………………………. 2
(ii) Very awkward (lying, stretching) ………………….. 7

Rest Allowances
TABLE 10.1
(C) Use of force or muscular energy in lifting, pulling,
pushing
Weight lifted (pounds)
20 ……………………………………………………….. 3
40 ……………………………….................................. 9
60 ………………………………………………………. 17

Rest Allowances
TABLE 10.1
(D) Bad light
(i) Well below recommended ………………………… 2
(ii) Quite inadequate …………………………………… 5
(E) Noise level:
(i) Intermittent–loud …………………………..………. 2
(ii) Intermittent–very loud or high pitched ..…………. 5

Time Study Example 1
Average observed time = 4.0 minutes
Worker rating = 85%
Allowance factor = 13%
Normal time = (Average observed time) x (Rating factor)

= (4.0)(.85)
= 3.4 minutes
Normal time 3.4 3.4

Standard time = = =
1 - Allowance factor 1 - .13 .87
= 3.9 minutes

Allowance factor = 15%
OBSERVATIONS (MIN) PERFORMANCE

JOB ELEMENT 1 2 3 4 5 RATING
(A) Compose and type letter 8 10 9 21* 11 120%
(B) Type envelope address 2 3 2 1 3 105%
(C) Stuff, stamp, and seal 2 1 5* 2 1 110%
envelopes
1. Delete unusual or nonrecurring observations (marked with *)

2. Compute average times for each element
Average time for A = (8 + 10 + 9 + 11)/4 = 9.5 minutes
Average time for B = (2 + 3 + 2 + 1 + 3)/5 = 2.2 minutes
Average time for C = (2 + 1 + 2 + 1)/4 = 1.5 minutes

3. Compute the normal time for each element
Normal time = (Average observed time) x (Rating)

Normal time for A = (9.5)(1.2) = 11.4 minutes
Normal time for B = (2.2)(1.05) = 2.31 minutes
Normal time for C = (1.5)(1.10) = 1.65 minutes
4. Add the normal times to find the total normal time
Total normal time = 11.40 + 2.31 + 1.65

= 15.36 minutes

5. Compute the standard time for the job
Total normal time

Standard time =
1 - Allowance factor
15.36
= = 18.07 minutes
1 - .15

Determine Sample Size
1. How accurate we want to be

2. The desired level of confidence
3. How much variation exists within the
job elements

æ zs ö
2
Required sample size = n = ç ÷

è hx ø
where h = accuracy level (acceptable error) desired in percent of the

job element expressed as a decimal
z = number of standard deviations required for the desired
level of confidence
s = standard deviation of the initial sample
x = mean of the initial sample
n = required sample size

TABLE 10.2
æ zs ö
2
Common z-Values
Required sample size = n = ç ÷ z-VALUE
è hx ø(STANDARD
DEVIATION
REQUIRED
where h = accuracy level (acceptableDESIRED
error) desired in percent
FOR of the
DESIRED
job element expressed CONFIDENCE
as a decimal LEVEL OF
z = number of standard deviations (%)required forCONFIDENCE)
the desired
level of confidence
90.0 1.65
s = standard deviation of the initial sample
95.0 1.95
x = mean of the initial sample
n = required sample size 95.45 2.00
99.0 2.58
99.73 3.00

Desired accuracy with 5%
Confidence level = 95%
Sample standard deviation = 1.0
Sample mean = 3.00
h = .05 x = 3.00 s = 1.0
z = 1.96 (from Table S10.1 or Appendix I)
æ zs ö
2
n=ç ÷
è hx ø
æ 1.96 ´1.0 ö
2
n=ç ÷ = 170.74 » 171

è .05 ´ 3 ø
Variations
If desired accuracy h is expressed as an absolute

amount, substitute e for hx , where e is the absolute
amount of acceptable error
æ zs ö
2
n =ç ÷
èeø

Variations
When the standard deviation s is not provided, it
must be computed
å( x - x ) å(Each sample observation - x )

2 2
i
s= =
n -1 Number in sample -1
where xi = value of each observation

x = mean of the observations
n = number of observations in the sample
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

Figure 10.9
MTM Table

MTM Example
Weight – less than 2 pounds Place accuracy – approximate
Conditions of GET – easy Distance range – 8 to 20 inches
TABLE 10.3 MTM-HC Analysis: Pouring Tube Specimen

ELEMENT DESCRIPTION ELEMENT TIME
Get tube from rack AA2 35
Uncap, place on counter AA2 35
Get centrifuge tube, place at sample table AD2 45
Pour (3 seconds) PT 83
Place tubes in rack (simo) PC2 40
Total TMU 238
.0006 x 238 = Total standard minutes = .14

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
Work Sampling
1. Take a preliminary sample to obtain
estimates of parameter values
2. Compute the sample size required
3. Prepare a schedule for random
observations at appropriate times
4. Observe and record worker activities
5. Determine how workers spend their
time
Work Sampling
Determining the sample size
n=
(
z 2 p 1- p )
h2
where n = required sample size
z = standard normal deviate for desired confidence level
p = estimated value of sample proportion
h = acceptable error level in percent (as a decimal)

Work Sampling Example
Estimates employees idle 25% of the time
Sample should be accurate within ± 3%
Wants to have 95.45% confidence in the results
n=
(
z 2 p 1- p )
h2
where n = required sample size
z = 2 for a 95.45% confidence level
p = estimate of idle proportion = 25% = .25
h = acceptable error of 3% = .03
(2)2 (.25)(.75)
n= 2
= 833 observations
(.03)
Work Sampling Example
NO. OF
OBSERVATIONS ACTIVITY
485 On the phone or meeting with a welfare client
126 Idle
62 Personal time
23 Discussions with supervisor
137 Filing, meeting, and computer data entry
833
All but idle and personal time are work related

Percentage idle time = (126 + 62)/833 = 22.6%
Since this is less than the target value of 25%, the
workload needs to be adjusted
Work Sampling Time Studies
Salespeople
Sales in Travel
person 20%
20%
Telephone
sales Paperwork
12% 17%
Lunch and
personal
10%
Telephone
within firm Meetings
13% and other
8%
Figure 10.10
Work Sampling Time Studies
Startup/exercise
Assembly-Line 3%
Employees
Breaks and lunch
10%
Dead time
between tasks
13%
Productive Unscheduled tasks
work and downtime
67% 4%
Cleanup
3%
Figure 10.10
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

Work Sampling
▶ 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

Ethics
▶ 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

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

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Job Design and

PowerPoint slides by Jeff Heyl

© 2014 Pearson Education 10 - 2

© 2014 Pearson Education 10 - 3

1. Describe labor planning policies

© 2014 Pearson Education 10 - 4

5. Identify four ways of establishing labor

© 2014 Pearson Education 10 - 5

► NASCAR racing became very

© 2014 Pearson Education 10 - 8

The objective of a human resource

© 2014 Pearson Education 10 - 9

© 2014 Pearson Education 10 - 10

Location strategy Layout strategy

© 2014 Pearson Education 10 - 12

© 2014 Pearson Education 10 - 13

© 2014 Pearson Education 10 - 15

© 2014 Pearson Education 10 - 16

© 2014 Pearson Education 10 - 17

© 2014 Pearson Education 10 - 18

© 2014 Pearson Education 10 - 19

© 2014 Pearson Education 10 - 20

© 2014 Pearson Education 10 - 21

© 2014 Pearson Education 10 - 23

© 2014 Pearson Education 10 - 24

© 2014 Pearson Education 10 - 25

© 2014 Pearson Education 10 - 26

1. Higher capital cost

© 2014 Pearson Education 10 - 27

1. Higher capital cost

© 2014 Pearson Education 10 - 28

© 2014 Pearson Education 10 - 29

© 2014 Pearson Education 10 - 30

© 2014 Pearson Education 10 - 31

© 2014 Pearson Education 10 - 32

Large objects Restaurants, 2-5 Overhead ceiling

© 2014 Pearson Education 10 - 33

© 2014 Pearson Education 10 - 34

© 2014 Pearson Education 10 - 35

Figure 10.5 (a)

Figure 10.5 (b)

Figure 10.5 (c)

© 2014 Pearson Education 10 - 38

© 2014 Pearson Education 10 - 40

© 2014 Pearson Education 10 - 41

► Present the big picture

© 2014 Pearson Education 10 - 42

Quantities in bins indicate

© 2014 Pearson Education 10 - 46

© 2014 Pearson Education 10 - 47

May be set in four ways:

© 2014 Pearson Education 10 - 49

© 2014 Pearson Education 10 - 50

© 2014 Pearson Education 10 - 51

1. Define the task to be studied

© 2014 Pearson Education 10 - 52

6. Determine performance rating and

7. Add the normal times for each

Total normal time