06 designpeoplesystem

Design of People System

Henry C. Co
Technology and Operations Management,
California Polytechnic and State University

Job Design
 Job design involves specifying the
content and methods of job
 What will be done
 Who will do the job

 How the job will bob will be done

 Where the job will be done

 Ergonomics: Incorporation of human
factors in the design of the workplace

Design of People System (Henry C. Co) 3

Design of Work Systems
 Specialization
 Behavioral Approaches to Job Design
 Teams
 Methods Analysis
 Motions Study
 Working conditions


Decisions in Job Design
Who What Where When Why How

Organizational
Mental and Geographic
Time of day; rationale for Method of
physical locale of the
Tasks to be time of the job; object- performance
characteristics organization;
performed occurrence in ives and mot- and
of the location of
the work flow ivation of the motivation
work force work areas
worker

Ultimate
Job
Structure


Approaches in Job Design
 Behavioral approaches
 The Hawthorn studies.
 The work of Herzberg, Hackman, Oldham,
and others.
 Japanese management systems.

 Efficiency approaches
 From Taylor’s scientific management
concepts (Time study, work sampling,
methods. improvement study).


Behavioral Approaches (Psycho-Social
Factors)
 Job enlargement (high task variety).
 Vertical (job enrichment).
 To include planning, organizing, inspecting
one’s own work.
 Meaningful work, responsibility for outcomes.

 Knowledge of actual results.

 Horizontal (greater variety).
 Job Rotation: Workers periodically
exchange.
 Taylorism (high task specialization).


 Socio-technical system
 Blends the sociological concerns of the
worker with modern technology of robots
and computer-controlled machines.
 Design job to adjust the needs of the
workers and work group.
 Skill variety.
 Task variety.

 Task identity.

 Task autonomy.

 Feedback.


Specialization in Business (Table 7.1)

For Management: For Labor:
1. Difficult to motivate 1. Monotonous work
quality 2. Limited opportunities
2. Worker dissatisfaction, for advancement
possibly resulting in 3. Little control over work
absenteeism, high
4. Little opportunity for
turnover, disruptive
self-fulfillment
tactics, poor attention
to quality


Disadvantages

For Management: For Labor:
1. Difficult to motivate 1. Monotonous work
quality 2. Limited opportunities
2. Worker dissatisfaction, for advancement
possibly resulting in 3. Little control over work
absenteeism, high
4. Little opportunity for
turnover, disruptive
self-fulfillment
tactics, poor attention
to quality


Efficiency Approach (Technical-Physical
Factors)
 Work Physiology (Study of Manual Tasks)
 Manual tasks entail stress on large muscle groups.
 Physiological Indices of Fatigue
 heart rate, oxygen intake.
 sweat rate, lactic acid in blood, body
temperature.
 Human-Factors Engineering
 Motor Tasks
 Controlled by the central nervous system.
 Fatigue is localized in small muscle groups (e.g.,
fingers, arms, hands).
 Mental Tasks
 Rapid decision making based upon stimuli.
 Effectiveness measured by response time and
kind/number of errors.


The Work Environment
Working Conditions
T e m p e ra tu re & V e n t ila t io n
H u m id it y

I llu m in a t io n C o lo r


Noise & Vibration Work Breaks

Safety Causes of Accidents


Work Methods
 The need for methods analysis can come from a
number of different sources:
 Changes in tools and equipment.
 Changes in product design or new products.
 Changes in materials or procedures.
 Other factors (e.g. accidents, quality problems).
 Focus on doing the job right; poka yoke.
 Select the job to be studied.
 Jobs that are prone to human error.
 High labor content; done frequently.
 Unsafe or tiring that offer the most potential for
improvement.
 Document and analyze the present method.
 Develop an improved method.
 Implement the improved method.
 Maintain and follow up on the new method.


Document and Analyze
Present Method
 Obtain production requirements.
 Procure engineering data.
 Procure manufacturing and cost data.
 Description and sketches of work
station and tools.
 Use assembly chart, flow process
chart, flow diagram, worker-machine
activity chart, etc.


Assembly Chart (Operation Process Chart)
 Information conveyed
Purpose of operation Process of manufacture
Design of the part Setup and tools
Tolerances and specifications Working conditions
Materials Plant layout


Assembly Chart … (Continued)
 Standard symbols:
Circle (operation)
and
Square(inspection)


Process Flowchart Symbols

Operation:
An activity directly contributing to product or service
Transportation:
Moving the product or service from one location to another
Inspection:
Examining the product or service for completeness,
irregularities, or quality
Delay:
Process having to wait

Storage:
Store of the product or service


Figure 7-2

ion
nt
n
FLOW PROCESS CHART

e
ANALYST PAGE

tio

age
ect
vem

ay
Job Requisition of petty cash D. Kolb 1 of 2

era

p

Stor
De l
Ins
Mo
Op
Details of Method
Requisition made by department head
Put in “pick-up” basket
To accounting department
Account and signature verified
Amount approved by treasurer
Amount counted by cashier
Amount recorded by bookkeeper
Petty cash sealed in envelope
Petty cash carried to department
Petty cash checked against requisition
Receipt signed
Petty cash stored in safety box

Worker-Machine Chart
 Graphical model of the simultaneous
activities of a worker and the
equipment he/she operates.
 Helps identify idle time and costs of
both workers and machines.
 For analyzing alternative worker-
machine combinations to determine
the most efficient arrangement.


Job Photo-Id Cards Date 10/14
Time Time
(min) Operator (min) Photo Machine

–1
Key in customer data 2.6 Idle
–2 on card

–3 Feed data card in 0.4 Accept card
Position customer for photo 1.0 Idle
–4
Take picture 0.6 Begin photo process
–5
Worker-
Machine –6
Chart
Idle 3.4 Photo/card processed
–7

–8

–9 Inspect card & trim edges 1.2 Idle


Operation Analysis
 Question every detail.
 Why?

 Where?

 What?

 Who?

 When?

 How?


Operation Analysis
 10 Primary Approaches
 Purpose of the operation.
 Design of the part.
 Tolerance and specifications.
 Material.
 Process of manufacture.
 Setup and tools.
 Working conditions.
 Material handling.
 Plant layout.
 Principles of motion economy.


Principles of Motion Economy
 Both hands should work at the same
time.
 The hands should work in opposite
symmetrical directions.
 Each hand should go through as few
motions as possible.
 The work place should be designed to
avoid long reaches.
 Avoid using the hand as a holding
device.


Work Measurement
 Motion study is the systematic study of the human motions
used to perform an operation.
 Work measurement: Measures time requirement to make a
product
 Time standards: The time required for a trained worker to
perform a given task using a prescribed work method with
normal effort and skill.
 Uses of standards
Uses of standards %
Estimating and cost 89%
Incentive compensation plans 59
Production scheduling 55
Performance appraisal 41
Staffing & capacity plans 2


Major Methods of Work Measurement
Type of Task Major Methods
Very short interval, highly Film analysis
repetitive
Short interval, repetitive Stop watch time study or
predetermined data
Task in conjunction with Elemental data or subjective
machinery or other fixed estimate
processing time equipment
Infrequent work or work of a longWork sampling or subjective
cycle time estimate


The Critics of Work Measurement
 UPS has 1000 industrial engineers (out of a work
force of 152,000) set standards for a myriad of
closely supervised tasks. Productivity and profits are
high.
 “Time study is a dark-ages technique, and it’s
dehumanizing to track someone around with a
stopwatch.”
Vice President, H.B. Maynard & Co.
 “UPS runs counter to the drift of many companies
who see (1) Automation (such as Roadway) or (2)
Employee Involvement as better ways to higher
productivity, rather than rigid monitoring at UPS.”
Wall Street Journal


Elemental Standard Time Data
 Develop tables of performance times
for operations that are common to
many applications.
 Avoids the need for separate time
studies.


Predetermined Motion-Time Data Systems
 Uses historically developed data for time
required for basic body movement, elements
of operation, or even an entire operation.
 Very useful in estimating new product cost.
 Procedure
 Divide total task into elements.
 Rate the difficulty of each element.
 Look up tables for the time allowed for each
element.
 Add all element times together.
 Systems available
 Methods time measurements (MTM).
 Basic motion time study (BMT).
 Motion time survey (GE).
 Work factor.


The MTM
Predetermined

Motion-Time
Data System

Work Sampling
 Observing an activity during a fixed duration
(e.g., a day) at random intervals to estimate
the fraction of time spent directly on some
sub-activities of interest
 Applications
 Ratio delay = % idle time
 Performance measurement
 Time standard
Confidence
 Experimental approach level

 Level of confidence
 Sample size β

 Accuracy of observations Maximum Maximum
probable probable
error error


Work Sampling Study
 A work sample is being conducted. the
observer randomly samples 60 times in a
day and notes that a particular element is
performed 12 times.
 Estimate the % of the time that worker
spend on this element.
 Calculate the precision of the estimate (at
95% confidence interval)
 Determine the appropriate sample size
required for a second set of observations if
the acceptable numerical error is 0.02.


Maslow’s
Hierarchy of
Needs


Compensation Methods
 Some reasons a company might use a
wage incentive plan
 Increased pay for employees
 Lower total cost to the company for each
unit produced.
 Many jobs do not lend themselves to
an individual incentive plan.


Wage Incentive Plans
 Piecework plans.
 Standard hour wage plans.
 Gain-sharing plans.
 Recommendations for developing and implementing
successful wage incentive plans:
 The plan should permit earnings about the base rate;
good performance should pay at least a 30% bonus.
 The plan should benefit both the company and the
employees.
 The plan should be simple and understandable.
 The standards should be protected from capricious and
indiscriminate rate cutting.
 Earnings should not be affected by factors beyond the
control of the worker.


Group Incentive Plans
 Direct-wage group.
 Profit-sharing and cost-reduction plans.
 The Scanlon plan.
 Whenever a plant-s productivity exceeds a
preestablished “normal” level, every employee
gets a bonus - the higher the level of productivity,
the bigger the bonus.
 The plan also involves a style of management
designed to give each worker some control over
his or her job by encouraging participation in
decision making affecting it.
 Productivity is increased by a well-designed
employee suggestion plan and through the use of
special committee that constantly prod employees
for ideas on how to improve productivity.


Lincoln Electric
 The Lincoln Electric Plan
 Average incentive bonus for the last 10
years = 11 months- salary.
 Job security: guaranteed minimum of 30
hours- pay per week for employees who
have served the company for 2 years or
more.
 Promotion from within.


Lincoln Electric
Disbursed Ten Year Average


Employee Health & Safety
 Several regulations and government
agencies monitor and control;
 OSHA - safety and health in the
workplace. Federal... proactive.
 Worker’s Compensation - safety and
health in the workplace. State ....
reactive.
 EPA - Environmental protection outside of
the workplace. Federal... proactive.
 Safety and Health departments in
plant.


Learning Curves
 Illustrates
improvement rate
of workers as a job
is repeated
Processing time per

Units produced

unit decreases by a
constant
percentage each
time output
doubles

Processing time per unit


Time required for the nth unit = tn = t1nb

where:

tn = time required for nth unit produced
t1 = time required for first unit produced
n= cumulative number of units produced
ln( r )
b= ln( 2 ) , where r is the learning curve %
(decimal coefficient)


Learning Curve Effect

Contract to produce 36 computers.
t1 = 18 hours, learning rate = 80%
What is time for 9th, 18th, 36th units?

t9 = (18)(9)ln(0.8)/ln 2 = (18)(9)-0.322
= (18)/(9)0.322 = (18)(0.493) = 8.874hrs
t18 = (18)(18)ln(0.8)/ln 2 = (18)(0.394) = 7.092hrs
t36 = (18)(36)ln(0.8)/ln 2 = (18)(0.315) = 5.674hrs

Learning Curve for Mass Production Job


End of improvement

Standard
time

Units produced


Learning Curves (cont.)
 Advantages  Limitations
 planning labor  product modifications
 planning budget negate learning curve
effect
 determining
scheduling  improvement can derive
requirements from sources besides
learning
 industry-derived
learning curve rates
may be inappropriate


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