7 CHAPTER 7 Design of Work Systems McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Major Factors Affecting Productivity Technological Development and Raw Materials Employees’ Job Performance Ability Motivation Motivational Theories (Theory X, Theory Y, and Theory Z) Technological Development and Raw Materials Technology Materials Plant Layout Job Designs Employees’ Job Performance Ability Skills Training Experience Knowledge Education Employees’ Job Performance Motivation Economic Motivators Individual’s Needs Hierarchy of Needs Formal Organization Organization Structure Leadership Climate Personnel Policies Motivation Informal Organization Size Goals Cohesiveness Leadership Type of Leadership Autocratic Close Supervison Democratic General Supervision Motivation Union Cohesiveness Goals Leadership Maslow’s Hierarchy of Needs Achievement, Creativity, SELF Development & FULFILLMENT Advancement Self-respect, EGO Recognition, Prestige, Status SOCIAL SECURITY PHYSICAL Friendship Shelter & Protection Hunger, Thirst, Sex Theory X People lack motivation People are basically lazy People only work because they have to Theory Y People are interested in goal accomplishments People have the potential for creativity People have many skills and potentials Theory Z William G. Ouchi’s This theory explores the differences between the Japanese and American management systems. Japanese system is designated as J type American system is designated as A type U.S. organizations that have some characteristics of the Japanese organizations as Z type Examples: IBM, Eastman-Kodak, Hewlett-Packard Theory Z Characteristics of Z type organizations Employment must be stabilized This means employment security Unions must be involved but not in an adversary relationship A system for slow evaluation and promotion should be developed 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 Design of Work Systems Specialization Behavioral Approaches to Job Design Teams Methods Analysis Motions Study Working conditions Job Design Success Successful Job Design must be: Carried out by experienced personnel with the necessary training and background Consistent with the goals of the organization In written form Understood and agreed to by both management and employees Specialization in Business: Advantages For Management: For Labor: 1. Simplifies training 1. Low education and 2. High productivity 3. Low wage costs skill requirements 2. Minimum responsibilities 3. Little mental effort needed Disadvantages ForManagement: ForLabor: 1. Difficult to motivate quality 1. Monotonous work 2. Limited opportunities for advancement 2. Worker dissatisfaction, possibly resulting in 3. Little control over work absenteeism, high 4. Little opportunity for turnover, disruptive self-fulfillment tactics, poor attention to quality Behavioral Approaches to Job Design Job Enlargement Job Rotation Giving a worker a larger portion of the total task by horizontal loading Workers periodically exchange jobs Job Enrichment Increasing responsibility for planning and coordination tasks, by vertical loading Motivation and Trust Motivation Influences quality and productivity Contributes to work environment Trust Influences productivity and employeemanagement relations Teams Benefits of teams Higher quality Higher productivity Greater worker satisfaction Self-directed teams Groups of empowered to make certain changes in their work process Methods Analysis Methods analysis Analyzing how a job gets done Begins with overall analysis Moves to specific details Methods Analysis 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) Methods Analysis Procedure Identify the operation to be studied Get employee input Study and document current method Analyze the job Propose new methods Install new methods Follow-up to ensure improvements have been achieved Analyzing the Job Flow process chart Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials Worker-machine chart Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle FLOW PROCESS CHART ANALYST PAGE Job Requisition of petty cash D. Kolb 1 of 2 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 Motion Study Motion study is the 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 Developing Work Methods Eliminate unnecessary motions Combine activities Reduce fatigue Improve the arrangement of the workplace Improve the design of tools and equipment Working Conditions Temperature & Humidity Illumination Ventilation Color Working Conditions (cont’d) Noise & Vibration Work Breaks Safety Causes of Accidents Work Measurement Standard time Stopwatch time study Historical times Predetermined data Work Sampling Compensation Time-based system Compensation based on time an employee has worked during a pay period Output-based (incentive) system Compensation based on the amount of output an employee produces during a pay period Form of Incentive Plan Accurate Easy to apply Consistent Easy to understand Fair Compensation Individual Incentive Plans Group Incentive Plans Knowledge-Based Pay System Management Compensation Learning Curves Learning curves: the time required to perform a task decreases with increasing repetitions Time per repetition Learning Effect Number of repetitions Time per unit Learning with Improvements Average Time Improvements may create a scallop effect in the curve. Applications of Learning Curves Manpower planning and scheduling Negotiated purchasing Pricing new products Budgeting, purchasing, and inventory planning Capacity Planning Time/cycles Worker Learning Curves A (underqualified) B (average) Standard time C (overqualified) One week Training time Cautions and Criticisms Learning rates may differ from organization to organization Projections based on learning curves should be viewed as approximations Estimates based the first unit should be checked for valid times Cautions and Criticisms At some point the curve might level off or even tip upward Some improvements may be more apparent than real For the most part, the concept does not apply to mass production