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Opman Topic 7 Part 2
Opman Topic 7 Part 2
MANAGEMENT
TOPIC VII
DESIGN OF WORK SYSTEM
A. JOB DESIGN
B. METHODS ANALYSIS
C. MOTION STUDY
Job Design
Used to develop a time standard based on observation of one
worker taken over a number of cycles
N=
Z= number of normal sample standard deviation needed for
desired confidence
S= Sample standard deviation
A= Desired accuracy percentage
X= Sample Mean
Stopwatch Time Study
E= Maximum Acceptable Error
Example
B.) N=
N= 67.77 or 68
Formulas:
Observed Time
OT=
Normal Time
NT=
Standard Time
ST=
Allowance Factor
AFjob =
AFday=
Standard Elemental Times
Time-based systems
Also known as hourly and measured daywork systems
Compensation based on time and employee has worked during a
pay period
Compensation
Output-based systems
Compensate employees according to the amount of output they
produce during a pay period,
Pay according to performance
Management Worker
1. Time-Based
Advantages Stable labor cost Stable pay
Easy to administer Less pressure to produce
Simple to compute pay than under output system
Stable output