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Chapter 7

Work Design and Measurement

© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

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Learning Objectives (1 of 2)

You should be able to:

7.1 Explain the importance of work design

7.2 Compare and contrast the two basic approaches to job design

7.3 Discuss the advantages and disadvantages of standardization

7.4 Describe behavioral approaches to job design

7.5 Discuss the impact of working conditions on job design

7.6 Compare the advantages and disadvantages of time-based and output-based pay systems

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Learning Objectives (2 of 2)

7.7 Explain the purpose of methods analysis and describe how methods studies are performed

7.8 Describe four commonly used techniques for motion study

7.9 Define a standard time

7.10 Describe and compare time study methods and perform calculations

7.11 Describe work sampling and perform calculations

7.12 Compare stopwatch time study and work sampling

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Learning Objective 7.1

Job Design (1 of 2)

Job design

The act of specifying the contents and methods of jobs

What will be done in a job

Who will do the job

How the job will be done

Where the job will be done

Importance

Organization’s are dependent on human efforts to accomplish their goals

Many job design topics are relevant to continuous and productivity improvement

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Learning Objective 7.1

Job Design (2 of 2)

Objectives

Productivity

Safety

Quality of work life

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Learning Objective 7.2

Efficiency versus Behavioral Job Design

Efficiency School

Emphasizes a systematic, logical approach to job design

A refinement of Frederick Winslow Taylor’s scientific management concepts

Behavioral School

Emphasizes satisfaction of needs and wants of employees

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Learning Objective 7.3

Specialization

Specialization

Work that concentrates on some aspect of a product or service

Advantages
For management: Simplifies training High productivity Low wage costs For employees: Low education and skill requirements Minimum responsibility Little mental effort needed
Disadvantages
For management: Difficult to motivate quality Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality For employees: Monotonous work Limited opportunities for advancement Little control over work Little opportunity for self-fulfillment

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Learning Objective 7.4

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

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Motivation

Motivation is a key factor in many aspects of work life

Influences quality and productivity

Contributes to the work environment

Trust is an important factor that affects motivation

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Teams (1 of 2)

Teams take a variety of forms:

Short-term team

Formed to collaborate on a topic or solve a problem

Long-term teams

Self-directed teams

Groups empowered to make certain changes in their work processes

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Teams (2 of 2)

Benefits of teams

Higher quality

Higher productivity

Greater worker satisfaction

Team problems

Some managers feel threatened

Conflicts between team members

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Learning Objective 7.5

Quality of Work Life

Quality of work life affects not only workers’ overall sense of well-being and contentment, but also their productivity

Important aspects of quality of work life:

How a worker gets along with co-workers

Quality of management

Working conditions

Compensation

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Compensation

It is important for organizations to develop suitable compensation plans for their employees

Compensation approaches

Time-based systems

Output-based systems

Incentive systems

Knowledge-based systems

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Compensation Systems

Time-based system

Compensation based on time an employee has worked during the pay period

Output-based (incentive) system

Compensation based on amount of output an employee produced during the pay period

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Learning Objective 7.6

Comparing Compensation Approaches

Management Worker
TIME-BASED Advantages Stable labor costs Easy to administer Simple to compute pay Stable Output Stable pay Less pressure to produce than under output system
Disadvantages No incentive for workers to increase output Extra efforts not rewarded
OUTPUT-BASED Advantages Lower cost per unit Greater output Pay related to efforts Opportunity to earn more
Disadvantages Wage computation more difficult Need to measure output Quality may suffer Difficult to incorporate wage increases Increased problems with scheduling Pay fluctuates Workers may be penalized because of factors beyond their control (e.g., machine breakdown)

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Individual and Group Incentive Plans

Individual incentive plans

Straight piecework

Worker’s pay is a direct linear function of his or her output

Minimum wage legislation has reduced their popularity

Base rate + bonus

Worker is guaranteed a base rate, tied to an output standard, that serves as a minimum

A bonus is paid for output above the standard

Group incentive plans

Tend to stress sharing of productivity gains with employees

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Knowledge-Based Pay Systems

Knowledge-based pay

A pay system used by organizations to reward workers who undergo training that increases their skills

Three dimensions:

Horizontal skills

Reflect the variety of tasks the worker is capable of performing

Vertical skills

Reflect the managerial skills the worker is capable of

Depth skills

Reflect quality and productivity results

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Management Compensation

Many organizations used to reward managers based on output

New emphasis is being placed on other factors of performance

Customer service

Quality

Executive pay is increasingly being tied to the success of the company or division for which the executive is responsible

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Learning Objective 7.7

Methods Analysis

Methods Analysis

Analyzing how a job gets done

It begins with an analysis of the overall operation

It then moves from general to specific details of the job concentrating on

Workplace arrangement

Movement of workers and/or materials

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Learning Objective 7.7

The Need for Methods Analysis

The need for methods analysis can arise from a variety of sources

Changes in tools and equipment

Changes in product design or introduction of new products

Changes in materials and procedures

Government regulations or contractual agreements

Accidents or quality problems

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Learning Objective 7.7

Methods Analysis Procedure

Identify the operation to be studied, and gather relevant data

Discuss the job with the operator and supervisor to get their input

Study and document the present methods

Analyze the job

Propose new methods

Install the new methods

Follow up implementation to assure improvements have been achieved

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Learning Objective 7.7

Guidelines for Selecting a Job to Study

Consider jobs that:

Have a high labor content

Are done frequently

Are unsafe, tiring, unpleasant, and/or noisy

Are designated as problems

Quality problems

Processing bottlenecks

etc.

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Learning Objective 7.7

Analyzing the Job: Flow Process Charts (1 of 2)

Flow process chart

Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials

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Learning Objective 7.7

Analyzing the Job: Flow Process Charts (2 of 2)

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Learning Objective 7.7

Analyzing the Job: Worker-Machine Chart (1 of 2)

Worker machine chart

Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle

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Learning Objective 7.7

Analyzing the Job: Worker-Machine Chart (2 of 2)

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Learning Objective 7.8

Motion Study

Motion study

Systematic study of the human motions used to perform an operation

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– activity or process charts, simo charts (simultaneous motions)

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Learning Objective 7.8

Developing Work Methods

In developing work methods that are motion efficient, the analyst attempts to

Eliminate unnecessary motions

Combine activities

Reduce fatigue

Improve the arrangement of the workplace

Improve the design of tools and equipment

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Learning Objective 7.9

Work Measurement (1 of 2)

Work measurement is concerned with how long it should take to complete a job.

It is not concerned with either job content or how the job is to be completed since these are considered a given when considering work measurement.

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Learning Objective 7.9

Work Measurement (2 of 2)

Standard time

The amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw material inputs, and workplace arrangement.

Commonly used work measurement techniques

Stopwatch time study

Historical times

Predetermined data

Work sampling

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Learning Objective 7.10

Work Measurement Techniques

Stopwatch Time Study

Used to develop a time standard based on observations of one worker taken over a number of cycles.

Standard Elemental Times

are derived from a firm’s own historical time study data.

Predetermined time standards

involve the use of published data on standard elemental times.

Work sampling

a technique for estimating the proportion of time that a worker or machine spends on various activities and idle time.

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Learning Objective 7.10

Stopwatch Time Study

Used to develop a time standard based on observations of one worker taken over a number of cycles.

Basic steps in a time study:

Define the task to be studied and inform the worker who will be studied

Determine the number of cycles to observe

Time the job, and rate the worker’s performance

Compute the standard time

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Learning Objective 7.10

Number of Cycles to Observe (1 of 2)

The number of observations to collect is a function of

Variability of the observed times

The desired level of accuracy

Desired level of confidence for the estimated job time

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Learning Objective 7.10

Number of Cycles to Observe (2 of 2)

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Learning Objective 7.10

Observed Time

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Learning Objective 7.10

Normal Time (1 of 3)

NT = OT × PR

where

NT = Normal time

PR = Performance rating

Assumes that a single performance rating has been made for the entire job

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Learning Objective 7.10

Normal Time (2 of 3)

Assumes that performance ratings are made on an element-by-element basis

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Learning Objective 7.10

Normal Time (3 of 3)

ST = NT × AF

where

ST = Standard time

AF = Allowance factor

and

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Learning Objective 7.10

Historical Times

Standard Elemental Times are derived from a firm’s own historical time study data.

Over time, a file of accumulated elemental times that are common to many jobs will be collected.

In time, these standard elemental times can be retrieved from the file, eliminating the need to go through a new time study to acquire them.

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Learning Objective 7.10

Predetermined Time Standards

Predetermined time standards involve the use of published data on standard elemental times.

Developed in the 1940s by the Methods Engineering Council.

The MTM (methods-time-measurement) tables are based on extensive research of basic elemental motions and times.

To use this approach, the analyst must divide the job into its basic elements (reach, move, turn, etc.) measure the distances involved, and rate the difficulty of the element, and then refer to the appropriate table of data to obtain the time for that element

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Learning Objective 7.11

Work Sampling (1 of 3)

Work sampling is a technique for estimating the proportion of time that a worker or machine spends on various activities and the idle time.

Work sampling does not require timing an activity or involve continuous observation of the activity

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Learning Objective 7.11

Work Sampling (2 of 3)

Uses:

ratio-delay studies which concern the percentage of a worker’s time that involves unavoidable delays or the proportion of time a machine is idle.

analysis of non-repetitive jobs.

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Learning Objective 7.11

Work Sampling (3 of 3)

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Learning Objective 7.12

Work Sampling versus Stopwatch Time Studies (1 of 2)

Advantages

Observations are spread out over a period of time, making results less susceptible to short-term fluctuations

There is little or no disruption of work

Workers are less resentful

Studies are less costly and less time-consuming, and the skill requirements of the analyst are much less

Studies can be interrupted without affecting the results

No timing device is required

It is well suited for non repetitive tasks

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Learning Objective 7.12

Work Sampling versus Stopwatch Time Studies (2 of 2)

Disadvantages

There is much less detail on the elements of a job

Workers may alter their work patterns when they spot the observer, thereby invalidating the results

In many cases, there is no record of the method used by the worker

Observers may fail to adhere to a random schedule of observations

It is not well suited for short, repetitive tasks

Much time may be required to move from one workplace to another and back to satisfy the randomness requirement

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Job Design Success

Success factors:

Carried out by personnel with appropriate training and background

Consistent with the goals of the organization

In written form

Understood and agreed to by both management and employees

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Operations Strategy

It is important to make design of work systems a key element of strategy:

People are still at the heart of the business

Workers can be valuable sources of insight and creativity

It can be beneficial to focus on quality of work life and instilling pride and respect among workers

Companies are reaping gains through worker empowerment

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End of Presentation

© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

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