Chapter 17 Human Resources in Operations Management To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Human Resources in Strategic Planning TQM recognizes importance of employees Education & training viewed as long-term investments Employees Have broad latitude in jobs Are trained in wide range of skills Are empowered to improve quality & service To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Changes in HR Management Skilled craftspeople Scientific management Assembly lines Limitations of scientific management Behavioral influences in job design To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Behavioral Influences in Job Design 1. Horizontal job enlargement 2. Vertical job enlargement 3. Responsibility for job reliability and quality 4. Job rotation 5. Communications between workers To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Trends in Job Design Job and task flexibility Responsibility and empowerment Increased skill and ability levels Teamwork Employee compensation and incentives Technology and automation Alternative workplaces Temporary and part-time employees Employee satisfaction To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Evolution of Job Design 1900s to 1960s 1970s to 2000s Scientific management/ assembly lines Current trends Task specialization Minimal worker skills Repetition Minimal job training Mass production Piece-rate wages Time as efficiency Minimal job responsibility Tight supervisory control Horizontal job enlargement Vertical job enlargement Extensive job training Job responsibility and empowerment Job control Training and education Job rotation Higher skill levels Team problem solving Worker interaction Employee involvement Focus on quality Figure 17.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Elements of Job Design TASK ANALYSIS Table 17.1 Description of tasks to be performed Task sequence Function of tasks Frequency of tasks Criticality of tasks Relationship with other jobs/tasks Performance requirements Information requirements Control requirements Error possibilities Tasks duration(s) Equipment requirements To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Elements of Job Design TASK ANALYSIS Description of tasks to be performed Task sequence Function of tasks Frequency of tasks Criticality of tasks Relationship with other jobs/tasks Performance requirements Information requirements Control requirements Error possibilities Tasks duration(s) Equipment requirements Table 17.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. WORKER ANALYSIS Elements of Job Design Capability requirements Performance requirements TASK ANALYSIS WORKER ANALYSIS Evaluation Description of tasks to be Capability Skill level performed requirements Task sequence Performance Job training Function of tasks requirements requirements Frequency of tasks Physical Evaluation Criticality of tasks Skill level Mental stress Relationship with other Job training jobs/tasks Physical requirements Boredom Performance requirements Mental stress Motivation Information requirements Boredom Control requirements Motivation Number of workers Error possibilities Number of workers Tasks duration(s) Level of responsibility Level of responsibility Equipment requirements Monitoring level Quality responsibility Monitoring level Empowerment level Quality responsibility Empowerment level Table 17.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Elements of Job Design TASK ANALYSIS Description of tasks to be performed Task sequence Function of tasks Frequency of tasks Criticality of tasks Relationship with other jobs/tasks Performance requirements Information requirements Control requirements Error possibilities Tasks duration(s) Equipment requirements WORKER ANALYSIS Capability requirements Performance requirements Evaluation Skill level Job training Physical requirements Mental stress Boredom Motivation Number of workers Level of responsibility Monitoring level Quality responsibility Empowerment level Table 17.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Elements of Job Design TASK ANALYSIS ENVIRONMENTAL ANALYSIS WORKER ANALYSIS Capability Work place location performed requirements Process location Task sequence Performance Function of tasks requirements Temperature and humidity Frequency of tasks Evaluation Criticality of tasks Lighting Skill level Relationship with other Job training jobs/tasks Physical requirements Ventilation Performance requirements Mental stress Safety Information requirements Boredom Control requirements Motivation Logistics Error possibilities Number of workers Tasks duration(s) Space requirements Level of responsibility Equipment requirements Monitoring level Noise Quality responsibility Empowerment level Vibration Description of tasks to be Table 17.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Elements of Job Design TASK ANALYSIS Description of tasks to be performed Task sequence Function of tasks Frequency of tasks Criticality of tasks Relationship with other jobs/tasks Performance requirements Information requirements Control requirements Error possibilities Tasks duration(s) Equipment requirements WORKER ANALYSIS Capability requirements Performance requirements Evaluation Skill level Job training Physical requirements Mental stress Boredom Motivation Number of workers Level of responsibility Monitoring level Quality responsibility Empowerment level ENVIRONEMENTAL ANALYSIS Work place location Process location Temperature and humidity Lighting Ventilation Safety Logistics Space requirements Noise Vibration Table 17.1 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Job Analysis Study how job should be done Tools: Process flowchart - analyze process steps Worker-machine chart - study time utilization Motion study - study human motions in tasks To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Process Flowchart Symbols Operation: An activity directly contributing to the 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: The process having to wait. Storage: Store of the product or service. Figure 17.2 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Process Flowchart Job: Date: Copying Job 9/11 Analyst: Calvin Page: Process Description Process Symbols Desk operator fills out work order Work order placed in “waiting job” box Job picked up by operator and read Job carried to appropriate copy machine Operator waits for machine to vacate Operator loads paper Operator sets machine Operator performs and completes job Operator inspects job for irregularities Job filed alphabetically in completed shelves Job waits for pick up Job moved by cashier for pick up Cashier completes transaction Figure 17.3 Cashier packages job (bag, wrap, or box) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Process Flowchart Job: Date: Copying Job 9/11 Analyst: Calvin Page: Process Description Process Symbols Desk operator fills out work order Work order placed in “waiting job” box Job picked up by operator and read Job carried to appropriate copy machine Operator waits for machine to vacate Operator loads paper Operator sets machine Operator performs and completes job Operator inspects job for irregularities Job filed alphabetically in completed shelves Job waits for pick up Job moved by cashier for pick up Cashier completes transaction Figure 17.3 Cashier packages job (bag, wrap, or box) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Worker-Machine Chart Job Photo-Id Cards Time (min) Date 10/14 Operator Time (min) Key in customer data on card 2.6 Idle Feed data card in 0.4 Accept card Position customer for photo 1.0 Idle Take picture 0.6 Begin photo process Idle 3.4 Photo/card processed Inspect card & trim edges 1.2 Idle Photo Machine –1 –2 –3 –4 –5 –6 –7 –8 –9 – 10 Figure 17.4 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Worker-Machine Chart Job Photo-Id Cards Time (min) Date Operator Time (min) Key in customer data on card 2.6 Idle 0.4 Accept card 10/14 Photo Machine –1 –2 –3 Feed data card in –4 Operator Time Summary Position customer for photo 1.0 Take picture 0.6 % Work 5.8 63 Idle 3.4 37 9.2 Idle min 100% –5 –6 Total 3.4 Idle Photo Machine Time 4.8 Begin photo process % 52 4.4 48 9.2 Min Photo/card processed 100% –7 –8 –9 – 10 Inspect card & trim edges 1.2 Idle Figure 17.4 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Motion Study Frank & Lillian Gilbreth Find one “best way” to do task Divide task into therbligs Search, select, grasp, hold Use videotape to study motions To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. General Guidelines For Motion Study Efficient Use Of Human Body Work - simplified, rhythmic & symmetric Hand/arm motions - coordinated and simultaneous Employ full extent of physical capabilities Conserve energy - use machines, minimize distances, use momentum Tasks - simple, minimal eye contact & muscular effort, no unnecessary motions, delays or idleness To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. General Guidelines For Motion Study Efficient Arrangement Of Workplace Tools, material, equipment - designated, easily accessible location Seating & work area comfortable and healthy Efficient Use Of Equipment Equipment & mechanized tools enhance worker abilities Use foot-operated equipment to relieve hand/arm stress Construct & arrange equipment to fit worker use To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Work Measurement Estimate standard time required to perform a task Methods of performing work measurement Stopwatch time study Elemental standard time files Predetermined motion times Work sampling To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Stopwatch Time Study Basic Steps 1. Establish the standard job method 2. Break down the job into elements 3. Study the job 4. Rate the worker’s performance (RF) 5. Compute the average time (t ) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Stopwatch Time Study Basic Steps 6. Compute the normal time Normal Time = (Elemental average) x (rating factor) Nt = (t )(RF) Normal Cycle Time = NT = Nt 7. Compute the standard time Standard Time = (normal cycle time) x (1 + allowance factor) ST = (NT)(1 + AF) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Performing a Time Study Time Study Observation Sheet Identification of operation Date Sandwich Assembly Operator Smith Approval Jones Observer Russell Cycles 1 Grasp and lay 1 out bread slices Spread mayonnaise 2 on both slices 3 4 Place ham, cheese, and lettuce on bread t 2 3 4 5 6 Summary 7 8 9 10 .04 .05 .05 .04 .06 .05 .06 .06 .07 .05 R .04 .38 .72 1.05 1.40 1.76 2.13 2.50 2.89 3.29 t .07 .06 R .11 .44 .79 1.13 1.47 1.83 2.21 2.60 2.98 3.37 t .12 .11 R .23 .55 .07 .08 .07 .07 .14 .12 .13 .13 5/17 .08 .13 .10 .12 .09 .14 .08 t t RF Nt .53 .053 1.05 .056 .77 .077 1.00 .077 .14 1.28 1.28 1.10 .141 .93 1.25 1.60 1.96 2.34 2.72 3.12 3.51 Place top on sandwich, t .10 .12 .08 .09 .11 .11 .10 .10 .12 .10 1.03 1.03 1.10 .113 Slice, and stack R .33 .67 1.01 1.34 1.71 2.07 2.44 2.82 3.24 3.61 Figure 17.5 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Performing a Time Study Time Study Observation Sheet Identification of operation Average element 0.53 t Assembly time =Sandwich t= = = 0.053 10 10 Operator Smith Approval Jones Cycles Normal time = (Elemental average)(rating factor) 1 2 3 4 5 6 7 8 9 Nt = ( t )(RF) = (0.053)(1.05) = 0.056 Grasp and lay 1 out bread slices Spread mayonnaise Normal 2 on both slices t Date Observer Russell Summary 10 .04 .05 .05 .04 .06 .05 .06 .06 .07 .05 R .04 t t RF Nt .53 .053 1.05 .056 .38 .72 1.05 1.40 1.76 2.13 2.50 2.89 3.29 t .07Time .06 .07 .08= .07 .08 .10 Cycle = NT Nt.07= 0.387 R .11 5/17 .09 .08 .77 .077 1.00 .077 .44 .79 1.13 1.47 1.83 2.21 2.60 2.98 3.37 3 t .12 .11 .14 .12 .13 .13 .13 .12 .14 .14 1.28 1.28 1.10 .141 Place ham, cheese, = (NT) (1 + AF) = (0.387)(1+0.15) = 0.445 min andST lettuce on bread R .23 .55 .93 1.25 1.60 1.96 2.34 2.72 3.12 3.51 4 Place top on sandwich, t .10 .12 .08 .09 .11 .11 .10 .10 .12 .10 1.03 1.03 1.10 .113 Slice, and stack R .33 .67 1.01 1.34 1.71 2.07 2.44 2.82 3.24 3.61 Example 17.3 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Performing a Time Study Time Study can Observation Sheet How many sandwiches be made in 2 hours? Identification of operation Average element 0.53 t Assembly time =Sandwich t= = = 0.053 10 10 Date 5/17 Approval Observer 120 min Operator Smith Russell = 269.7 or Jones 270 sandwiches 0.445 min/sandwich Cycles Summary Normal time = (Elemental average)(rating factor) 1 2 3 4 5 6 7 Nt = ( t )(RF) = (0.053)(1.05) = 0.056 Grasp and lay 1 out bread slices Spread mayonnaise Normal 2 on both slices t 8 9 10 .04 .05 .05 .04 .06 .05 .06 .06 .07 .05 R .04 t RF Nt .53 .053 1.05 .056 .38 .72 1.05 1.40 1.76 2.13 2.50 2.89 3.29 t .07Time .06 .07 .08= .07 .08 .10 Cycle = NT Nt.07= 0.387 R .11 t .09 .08 .77 .077 1.00 .077 .44 .79 1.13 1.47 1.83 2.21 2.60 2.98 3.37 3 t .12 .11 .14 .12 .13 .13 .13 .12 .14 .14 1.28 1.28 1.10 .141 Place ham, cheese, = (NT) (1 + AF) = (0.387)(1+0.15) = 0.445 min andST lettuce on bread R .23 .55 .93 1.25 1.60 1.96 2.34 2.72 3.12 3.51 4 Place top on sandwich, t .10 .12 .08 .09 .11 .11 .10 .10 .12 .10 1.03 1.03 1.10 .113 Slice, and stack R .33 .67 1.01 1.34 1.71 2.07 2.44 2.82 3.24 3.61 Example 17.3 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Incentive PieceRate System Piece-rate is $0.04 per sandwich What would average worker earn per hour? 60 min = 134.8 or 135 sandwiches 0.445 min/sandwich Average wage rate = (135)(0.04) = $5.40 Adjusted for the allowance factor– 60 min = 144.6 or 145 sandwiches 0.415 min/sandwich Average wage rate = (145)(0.04) = $5.80 Example 17.4 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Number of Cycles To determine the sample size: n= zs eT 2 where z = the number of standard deviations from the mean in a normal distribution reflecting a level of statistical confidence s= (xi - x)2 = sample standard deviation from the sample time study n-1 T = the average job cycle time from the sample time study e = the degree of error from the true mean of the distribution To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Number of Cycles Average cycle time = 0.361 Computed standard deviation = 0.03 Company wants to be 95% confident that computed time is within 5% of true average time n= zs eT 2 2 (1.96)(0.03) = = 10.61, or 11 (0.05)(0.361) Example 17.5 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Elemental Times Predetermined Motion Times Used for micromotions Divide tasks into micromotions Grasp, reach, move, etc. Time Measurement Units (TMU) 0.0006 minutes, 100,000 per hour To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. MTM Table for MOVE TIME (TMU) WEIGHT ALLOWANCE DISTANCE Hand in Weight MOVED motion (lb) Dynamic (INCHES) A B C B up to: factor 3/4 or less 1 2.5 2.0 2.9 2.0 3.4 2.0 2.3 2 3.6 3 4.9 4 6.1 … 4.6 5.7 6.9 5.2 6.7 8.0 20 19.2 18.2 22.1 2.5 1.00 0 2.9 3.6 4.3 7.5 1.06 2.2 15.6 37.5 1.39 12.5 Static constant TMU A. Move object to other hand or against stop B. Move object to approximate or indefinite location C. Move object to exact location To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Work Sampling Basic Steps 1. Define the job activities 2. Determine number of observations n= where z e 2 p(1 - p) n = the sample size (number of sample observations) z = the number of standard deviations from the mean for the desired level of confidence e = the degree of allowable error in the sample estimate p = the proportion of time spent on a work activity estimated prior to calculating the work sample To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Work Sampling Basic Steps 3. Determine length of sampling period 4. Conduct work sampling study, record observations 5. Periodically recompute number of observations To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Work Sampling Study What percent of time is spent looking up information? Current estimate is p = 30% Estimate within +/- 2%, with 95% confidence n= z e 2 1.96 p(1 - p) = 0.02 2 (0.3)(0.7) = 2016.84 or 2017 After 280 observations, p = 38% n= z e 2 1.96 p(1 - p) = 0.02 2 (0.38)(0.62) = 2263 Example 17.6 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Learning Curves Processing time decreases with worker learning (experience) Time per unit decreases by constant percentage each time output doubles Use to plan labor, budget & scheduling requirements To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Processing time per unit Learning Curves Units produced Figure 17.6 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Learning Curves 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 b = ln r/ln 2, where r is the learning curve percentage (decimal coefficient) To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. 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 Example 17.7 To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. Processing time per unit Learning Curve for Mass Production Job End of improvement Standard time Figure 17.7 Units produced To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved. More on Learning Curves Not effective for mass production jobs Product modifications negate effects Improvement can derive from sources besides learning Industry-derived learning curve rates may be inappropriate To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.