Mata kuliah : J0444 - Manajemen Operasional
Tahun
: 2010
System Design:
Design of Work System
Pertemuan 08
Learning Objectives
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Explain the importance of work design.
Briefly describe the two basic approaches to job
design.
Discuss the advantages and disadvantages of
specialization.
Explain the purpose of methods analysis and describe
how methods studies are performed.
Describe four commonly used techniques for motion
study.
Discuss the impact of working conditions on job
design.
Learning Objectives
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Define a standard time.
Describe work sampling and perform calculations.
Compare stopwatch time study and work sampling.
Contrast time and output pay systems.
List some of the main reasons organizations need to
make location decisions.
Explain why location decisions are important.
Describe some of the major factors that affect location
decisions.
Job Design
• Job design involves specifying the content and
methods of job
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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 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
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Giving a worker a larger portion of the total task by horizontal
loading
• Job Rotation
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Workers periodically exchange jobs
• Job Enrichment
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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 employee-management
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)
Selecting an Operation
• Selecting a job to study consider:
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High labor content
Done frequently
Unsafe
Tiring
Unpleasant
Noisy
Designated problem
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
Job Requisition of petty cash
ANALYST PAGE
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
• Therbligs
Developing Work Methods
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Eliminate unnecessary motions
Combine activities
Reduce fatigue
Improve the arrangement of the workplace
Improve the design of tools and equipment
Therbligs
• Therbligs: Basic elemental motions that make
up a job.
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Search
Select
Grasp
Hold
Transport load
Release load
Working Conditions
Temperature &
Humidity
Illumination
Ventilation
Color
Working Conditions
Noise & Vibration
Work Breaks
Safety
Causes of Accidents
Work Measurement
• Work measurement: Determining how long it
should take to do a job.
– Standard time
– Stopwatch time study
– Historical times
– Predetermined data
– Work Sampling
Standard time
Standard time:
The amount of time it should take a qualified
worker to complete a specific task, working at a
sustainable rate, using given methods, tools and
equipment, raw materials, and workplace
arrangement.
Stopwatch Time Study
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Stopwatch Time Study: Development of a
time standard based on observations of one
worker taken over a number of cycles.
The basic steps in a time study:
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Define the task to be studied
Determine the number of cycles to observe
Time the job
Compute the standard time
Standard Elemental Times
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Standard elemental times: Time standards
derived from a firm’s historical data.
Steps for standard elemental times
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Analyze the job
Check file for historical times
Modify file times if necessary
Sum elemental times to get normal time
Predetermined Time Standards
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Predetermined time standards: Published data
based on extensive research to determine standard
elemental times.
Advantages:
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Based on large number of workers under controlled conditions
Analyst not requires to rate performance
No disruption of the operation
Standards can be established
Work Sampling
• Work sampling: technique for estimating the
proportion of time that a worker or machine
spends on various activities and idle time.
• Work sampling involves making brief
observations of a worker or machine at random
intervals
• Work sampling does not require
– timing an activity
– continuous observation of an activity
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
Need for Location Decisions
• Marketing Strategy
• Cost of Doing Business
• Growth
• Depletion of Resources
Nature of Location Decisions
• Strategic Importance of location decisions
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Long term commitment/costs
Impact on investments, revenues, and operations
Supply chains
• Objectives of location decisions
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Profit potential
No single location may be better than others
Identify several locations from which to choose
• Location Options
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Expand existing facilities
Add new facilities
Move
Making Location Decisions
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Decide on the criteria
Identify the important factors
Develop location alternatives
Evaluate the alternatives
– Identify general region
– Identify a small number of community alternatives
– Identify site alternatives
• Evaluate and make selection
Location Decision Factors
Regional Factors
Multiple Plant
Strategies
Community
Considerations
Site-related
Factors
Regional Factors
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Location of raw materials
Location of markets
Labor factors
Climate and taxes
Community Considerations
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Quality of life
Services
Attitudes
Taxes
Environmental regulations
Utilities
Developer support
Site Related Factors
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Land
Transportation
Environmental
Legal
Multiple Plant Strategies
• Product plant strategy
• Market area plant strategy
• Process plant strategy
Service and Retail Locations
• Manufacturers – cost focused
• Service and retail – revenue focused
– Traffic volume and convenience most important
– Demographics
• Age
• Income
• Education
– Location, location, location
– Good transportation
– Customer safety
Comparison of Service and
Manufacturing Considerations
Manufacturing/Distribution
Service/Retail
Cost Focus
Revenue focus
Transportation modes/costs
Demographics: age,income,etc
Energy availability, costs
Population/drawing area
Labor cost/availability/skills
Competition
Building/leasing costs
Traffic volume/patterns
Customer access/parking
Trends in Locations
• Foreign producers locating in U.S.
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“Made in USA”
Currency fluctuations
• Just-in-time manufacturing techniques
• Microfactories
• Information Technology
Global Locations
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Reasons for globalization
Benefits
Disadvantages
Risks
Global operations issues
Globalization
• Facilitating Factors
– Trade agreements
– Technology
• Benefits
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Markets
Cost savings
Legal and regulatory
Financial
Globalization
• Disadvantages
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Transportation costs
Security
Unskilled labor
Import restrictions
Criticisms
• Risks
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Political
Terrorism
Legal
Cultural
Table 8.3
Foreign
Government
a. Policies on foreign ownership of production facilities
Local Content
Import restrictions
Currency restrictions
Environmental regulations
Local product standards
Liability laws
b. Stability issues
Cultural
Differences
Living circumstances for foreign workers / dependents
Religious holidays/traditions
Customer
Preferences
Labor
Possible buy locally sentiment
Resources
Availability and quality of raw materials, energy,
transportation infrastructure
Level of training and education of workers
Work ethic
Possible regulations limiting number of foreign employees
Language differences
8-46
Evaluating Locations
• Cost-Profit-Volume Analysis
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Determine fixed and variable costs
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Plot total costs
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Determine lowest total costs
Location Cost-Volume Analysis
• Assumptions
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Fixed costs are constant
Variable costs are linear
Output can be closely estimated
Only one product involved
Example 1: Cost-Volume Analysis
Fixed and variable costs for
four potential locations
L o c a tio n
A
B
C
D
F ix e d
C ost
$ 2 5 0 ,0 0
1 0 0 ,0 0
1 5 0 ,0 0
2 0 0 ,0 0
0
0
0
0
V a r ia b le
C ost
$11
30
20
35
Example 1: Solution
Fixed
Costs
A
B
C
D
$250,000
100,000
150,000
200,000
Variable
Costs
$11(10,000)
30(10,000)
20(10,000)
35(10,000)
Total
Costs
$360,000
400,000
350,000
550,000
Example 1: Solution
$(000)
800
700
600
500
400
300
200
100
0
0
D
B
C
A
A Superior
C Superior
B Superior
2
4
6
8
10
Annual Output (000)
12
14
16
Evaluating Locations
• Transportation Model
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Decision based on movement costs of raw materials
or finished goods
• Factor Rating
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Decision based on quantitative and qualitative
inputs
• Center of Gravity Method
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Decision based on minimum distribution costs
The End