Job Design Work Measurement and Labor Standards Eng

Outline n n Job Design n Job specialization n Job expansion n Psychological components n Self-directed teams n Motivation and incentive systems n Ergonomics and work methods Work Measurement n n n Time Studies Work Sampling Labor Standards © 2010 Nkumbwa™. All Rights Reserved. 2

Job Design n Specifying the tasks that make up a job for an individual or group Involves determining n What is to be done (i. e. , responses) n How it is to be done (i. e. , tools etc. ) n Why it is to be done (i. e. , purpose) Results in job description n Shows nature of job in task-related behaviors © 2010 Nkumbwa™. All Rights Reserved. 3

Job Classifications and Work Rules n n n Specify n who can do what n when they can do it n under what conditions they can do it Occasionally the result of union pressure Restricts flexibility in assignments; consequently restricts efficiency of production © 2010 Nkumbwa™. All Rights Reserved. 4

Work Schedules n n Standard work schedule n five eight-hour days Flex-time n allows employees, within prescribed limits, to determine their own schedules Flexible work week n four 10 -hour days Part-time n less than eight hours per day, or an irregular schedule © 2010 Nkumbwa™. All Rights Reserved. 5

Components of Job Design n Job specialization n Job expansion n Psychological components n Self-directed teams n Motivation and incentive systems n Ergonomics and work methods © 2010 Nkumbwa™. All Rights Reserved. 6

Job Specialization n Involves n Breaking jobs into small component parts n Assigning specialists to do each part First noted by Adam Smith (1776) n Observed how workers in pin factory divided tasks into smaller components Found in manufacturing & service industries © 2010 Nkumbwa™. All Rights Reserved. 7

Job Specialization Often Reduces Cost n n Greater dexterity & faster learning Less lost time changing jobs or tools Use of more specialized tools Pay only for needed skills © 2010 Nkumbwa™. All Rights Reserved. 8

Job Expansion n Process of adding more variety to jobs Intended to reduce boredom associated with labor specialization Methods n Job enlargement n Job enrichment n Job rotation n Employee empowerment © 2010 Nkumbwa™. All Rights Reserved. 9

Job Rotation Pediatrics Maternity © 1995 Corel Corp. © 2010 Nkumbwa™. All Rights Reserved.

Employee Empowerment Decision-Making Control Planning © 2010 Nkumbwa™. All Rights Reserved. 11

Psychological Components of Job Design n Individuals have values, attitudes, and emotions that affect job results n Example: Work is a social experience that affects belonging needs Effective worker behavior comes mostly from within the individual n Scientific management argued for external financial rewards First examined in ‘Hawthorne studies’ © 2010 Nkumbwa™. All Rights Reserved. 12

Hawthorne Studies n n Conducted in late 1920’s Western Electric Hawthorne plant Showed importance of the individual in the workplace Showed the presence of a social system in the workplace © 2010 Nkumbwa™. All Rights Reserved. 13

Hawthorne Studies: Workplace Lighting n n n Originally intended to examine effects of lighting on productivity n Scientific management proposed that physical conditions affect productivity Result: Productivity increased regardless of lighting level Conclusion: Increased productivity was due to workers’ receiving attention © 2010 Nkumbwa™. All Rights Reserved. 14

Hawthorne Studies: Piecework Pay n n Examined effects of group piecework pay system on productivity Workers under piecework system should produce as much as possible n Scientific management assumes that people are motivated only by money Result: Production less than maximum Conclusion: Social pressure caused workers to produce at group-norm level © 2010 Nkumbwa™. All Rights Reserved. 15

Self-Directed Teams n n n Group of empowered individuals working together for a common goal May be organized for short-term or long-term objectives Reasons for effectiveness n Provide employee empowerment n Provide core job characteristics n Meet psychological needs (e. g. , belonging) © 2010 Nkumbwa™. All Rights Reserved. 16

Job Design Continuum Self-directed Teams Empowerment Enrichment Increasing reliance on employees’ contribution and increasing acceptance of responsibility by employee Enlargement Specialization Job Expansion © 2010 Nkumbwa™. All Rights Reserved. 17

Core Job Characteristics n n n Skill variety Job identify Job significance Autonomy Feedback

Motivation n Worker performance depends on n Motivation n Ability n Work environment Motivation is the set of forces that compel behavior Money may serve as a psychological & financial motivator © 2010 Nkumbwa™. All Rights Reserved. 19

Motivation and Money n Taylor’s scientific management (1911) n n n Maslow’s theory (1943) n n Workers are motivated mainly by money Suggested piece-rate system People are motivated by hierarchy of needs, which includes money Herzberg (1959) n Money either dissatisfies or is neutral in its effect © 2010 Nkumbwa™. All Rights Reserved. 20

Monetary Incentives n n Bonuses: Cash & stock options Profit sharing: Distribution of profits Gain sharing: Reward for company performance (e. g. , cost reduction) n Scanlon plan is most popular (cost reduction. ) Incentive systems n Measured daywork: Pay based on standard time n Piece rate: Pay based on pieces done © 2010 Nkumbwa™. All Rights Reserved. 21

Maslow’s Hierarchy of Needs Self-Actualization Use of abilities Self-fulfillment Ego Self Respect Social Group Interaction Job Status Safety Physical Safety Job Security Physiology Food Shelter © 2010 Nkumbwa™. All Rights Reserved. 22

Herzberg’s Motivation/Hygiene Factors Job Dissatisfiers (Hygiene) Job Satisfiers (Motivators) ©Supervision - technical ©Recognition ©Working conditions ©Advancement ©Interpersonal relations - supervision ©Work itself ©Status ©Responsibility ©Job security ©Personal growth ©Company policies and administration ©Achievement ©Salary © 2010 Nkumbwa™. All Rights Reserved. 23

Job Characteristics Core Job Characteristics n Motivation n Satisfaction n Job performance n Absenteeism & turnover Psychological States Personal & Work Outcomes © 2010 Nkumbwa™. All Rights Reserved. Hackman & Oldham 24

Ergonomics and Work Methods n n Worker performance depends on n Motivation n Ability n Work environment Foundation laid by Frederick Taylor n Match employees to task n Develop work methods n Establish work standards © 2010 Nkumbwa™. All Rights Reserved. 25

Ergonomics n n Study of work Also called ‘human factors’ Involves human-machine interface Examples

Methods Analysis n n n Focuses on how task is performed Used to analyze n Movement of body, people, or material n Activities of people & machines Tools n Process chart n Flow diagram n Activity chart n Operations chart (right-hand, left-hand) © 2010 Nkumbwa™. All Rights Reserved. 27

Methods Analysis n n n Movement of individuals or materials (Flow diagrams or process charts) Activity of human and machine and crew activity (Activity charts) Body movement (primarily hands) (Micro-motion charts) © 2010 Nkumbwa™. All Rights Reserved. 28

The Visual Workplace n n n Uses low-cost visual devices to share information quickly and accurately. Displays and graphs replace paper Provides real-time information System should focus on improvement, not merely monitoring Can provide both production and financial data © 2010 Nkumbwa™. All Rights Reserved. 29

The Visual Workplace © 2010 Nkumbwa™. All Rights Reserved. 30

What is Work Measurement? n n Determining the amount of worker time required to generate one unit of output Provides labor standards n Target amount of time required to perform a job under normal working conditions © 2010 Nkumbwa™. All Rights Reserved. 31

Time Studies n n Labor standards are based on observing worker doing task n Observe only a sample of work n Use average time & pace to set standard Disadvantages n Requires a trained & experienced analyst n Standard cannot be set before task is performed © 2010 Nkumbwa™. All Rights Reserved. 32

Eight Steps to Conducting a Time Study 1. Define the task to be studied (after a methods analysis) 2. Break down the task into precise elements 3. Decide how many times each element of the task must be measured 4. Record the times and ratings of performance for the task elements Compute the average observed cycle time (element times adjusted for unusual influences) 5. © 2010 Nkumbwa™. All Rights Reserved. 33

Eight Steps to Conducting a Time Study 6. Compute the normal time for each task element: Normal time = (Average actual cycle time) x (Rating factor) 7. Sum the normal times for each element to develop a total normal time for the task Compute the standard time: 8. Standard time =Total normal time 1 - Allowance factor © 2010 Nkumbwa™. All Rights Reserved. 34

Allowances n n n Personal time allowance - 4% - 7% of total time - use of restroom, water fountain, etc. Delay allowance - based upon actual delays that occur Fatigue allowance - to compensate for physical or mental strain, noise level, tediousness, heat and humidity, assumption of an abnormal position, etc. © 2010 Nkumbwa™. All Rights Reserved. 35

Rest Allowances (%) for Various Classes of Work 1. Constant allowance (a) Personal allowance ……………. . . (b) Basic fatigue allowance ………… 5 4 2. Variable allowances: (A) Standing allowance ……………. . 2 (B) Abnormal position (I) Awkward (bending) …………. 2 (ii) Very awkward (lying, stretching) …………. . (C) Use of force or muscular energy in lifting, pulling, pushing Weight lifted (pounds) 20 ………………… 40…………………. 60…………………. © 2010 Nkumbwa™. All Rights Reserved. 7 3 9 17 36

Rest Allowances (%) for Various Classes of Work (D) Bad light (i) Well below recommended …. . (ii) Quite inadequate ……………. (E) Atmospheric conditions (heat and humidity) Variable ……………. . (F) Close attention (i) Fine or exacting ……………… (ii)Very fine or very exacting …. . . (G) Noise level (i) Intermittent – loud …………… (ii) Intermittent – very loud or high-pitched © 2010 Nkumbwa™. All Rights Reserved. 2 5 1 -10 2 5 37

Rest Allowances (%) for Various Classes of Work (H) Mental strain (i) Complex or wide span of attention …………… (ii) Very complex ……………. (I) Tediousness (i) Tedious …………. (ii) Very tedious ……………… © 2010 Nkumbwa™. All Rights Reserved. 4 4 2 5 38

Time Studies - Sample Size h = accuracy level desired as percent of job element, expressed as a decimal (5% = 0. 05) 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 © 2010 Nkumbwa™. All Rights Reserved. 39

Considerations in Determining Sample Size ¶ · ¸ How accurate do you want to be? What level of confidence do you want your measurements to have? How much variation exists within the job elements? © 2010 Nkumbwa™. All Rights Reserved. 40

Common z values Desired Confidence Level (%) Z Value 90. 11 1. 65 95.

Time Study Equations Allowance factor= Nonwork time Total time = Average element time Element times Number of cycles = Normal time Average element time * Perf. Rating = Standard time Total normal time 1 - Allowance factor © 2010 Nkumbwa™. All Rights Reserved. 42

Predetermined Time Standards n n n Labor standards are set from times in published tables (e. g. , MTM Table) Procedure n Divide manual work into basic elements n Look up basic element times in table; sum Advantages n Times established in laboratory setting n Useful for planning tasks n Widely accepted by unions © 2010 Nkumbwa™. All Rights Reserved. 43

MTM Table for Reach Motion Hand in Time TMU Motion Distance Moved (in) A B C A B 3/4 or less 2. 0 1. 6 1 2. 5 3. 6 2. 3 2 4. 0 5. 9 3. 5 2. 7 A Reach to object in fixed location. B Reach to object in variable locations. C Reach to object jumbled with others. © 2010 Nkumbwa™. All Rights Reserved. 1 TMU =. 0006 minutes 44

Sample MTM Table for GET and PLACE Motions © 2010 Nkumbwa™. All Rights Reserved.

MTM-HC Analysis: Pouring Tube Specimen Element Description Element Time Get tube from rack AA 2 35 Get stopper, place on counter AA 2 35 Get centrifuge tube, place at sample tube AD 2 45 PT 83 Place tubes in rack (simo) PC 2 40 0. 0006*238=Total standard minutes = 0. 14 Total TMU 238 Pour (3 sec. ) © 2010 Nkumbwa™. All Rights Reserved. 46

Work Sampling n n Labor standard is set using output and % of time worker spends on tasks Involves observing worker at random times over a long period Advantages n Less expensive than time studies n Observer requires little training Disadvantages n Ineffective with short cycles © 2010 Nkumbwa™. All Rights Reserved. 47

Work Sampling n Used for n Ratio delay studies n Setting labor standards n

The Five Step Work Sampling Procedure 1. 2. 3. 4. 5. Take a preliminary sample to obtain an estimate of the parameter value Compute the sample size required Prepare a schedule for observing the worker at appropriate times Observe and record worker activities; rate worker performance Determine how workers spend their time (usually as a percent) © 2010 Nkumbwa™. All Rights Reserved. 49

Work Sampling - Sample Size p = estimated value of sample proportion (of time worker is observed busy or idle) h = accuracy level desired in percent, expressed as a decimal © 2010 Nkumbwa™. All Rights Reserved. 50

Work Sampling Equations Normal Time = (Total Time) (% of time working) (Rating) Standard

Uses of Labor Standards n n n Costing labor content of products Planning staffing needs Cost & time estimates for bids Planning production Wage-incentive plans Employee efficiency © 2010 Nkumbwa™. All Rights Reserved. 52

Sources of Labor Standards n n Historical experience Time studies Predetermined time standards (MTM)

Labor Standards - Historical Experience n n Labor standards are based on how many labor-hours were needed in past Least preferred method Advantages n Easy and inexpensive to obtain standard Disadvantages n Unknown accuracy due to unusual occurrences, unknown pace etc. © 2010 Nkumbwa™. All Rights Reserved. 54

Uses of Labor Standards n n n n Costing labor content of products Planning staffing needs Estimating time and cost for bids Planning production (crew size and work balance) Estimating expected production Basing wage-incentive plans Determining employee efficiency © 2010 Nkumbwa™. All Rights Reserved. 55