Human Resources,

Job Design, and

Work Measurement 8
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition

PowerPoint slides by Jeff Heyl

© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 10 - 1
 Outline
► Global Company Profile:
Rusty Wallace’s NASCAR Racing Team
► Human Resource Strategy for
Competitive Advantage
► Labor Planning
► Job Design
► Ergonomics and the Work
Environment

© 2014 Pearson Education, Inc. 10 - 2

 Outline - Continued
► Methods Analysis
► The Visual Workplace
► Labor Standards
► Ethics

© 2014 Pearson Education, Inc. 10 - 3

 Learning Objectives
When you complete this chapter you
should be able to:

1. Describe labor planning policies

2. Identify the major issues in job design
3. Identify major ergonomic and work
environment issues
4. Use the tools of methods analysis

© 2014 Pearson Education, Inc. 10 - 4

 Learning Objectives
When you complete this chapter you
should be able to:

5. Identify four ways of establishing labor

standards
6. Compute the normal and standard times in
a time study
7. Find the proper sample size for a time study

© 2014 Pearson Education, Inc. 10 - 5

 High-Performance Pit Crew
Teamwork Makes the Difference
between Winning and Losing

► NASCAR racing became very

popular in the 1990s with huge
sponsorship and prize money
► High performance pit crews are a
key element of a successful race
team
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 10 - 6
 Rusty Wallace’s NASCAR
Racing Team
► Pit crew members can earn
$100,000 per year – for changing
tires!
► Each position has very specific
labor standards
► Pit crews are highly organized and
go though rigorous physical training
► Pit stops are videotaped to look for
improvements
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 10 - 7
 Rusty Wallace’s NASCAR
Racing Team

© 2014 Pearson Education, Inc. 10 - 8

 Human Resource Strategy

The objective of a human resource

strategy is to manage labor and
design jobs so people are effectively
and efficiently utilized

© 2014 Pearson Education, Inc. 10 - 9

 Human Resource Strategy
▶ Ensure that people:

1. Are effectively utilized within the

constraints of other operations
management decisions
2. Have a reasonable quality of work life
in an atmosphere of mutual
commitment and trust

© 2014 Pearson Education, Inc. 10 - 10

 Constraints on Human
Resource Strategy
Product strategy Process strategy
• Skills needed • Technology
• Talents needed • Machinery and

re
W

u
• Materials used ha

ed
equipment used
t

oc
• Safety • Safety

Pr
Schedules
• Time of day Individual differences
When HUMAN Who • Strength and fatigue
• Time of year
RESOURCE • Information
(seasonal)
• Stability of STRATEGY processing and
response
schedules

Location strategy Layout strategy

• Climate • Fixed position
re

H
he

• Temperature • Process
ow
W

• Noise • Assembly line

• Light • Work cell
• Air quality • Product
Figure 10.1
© 2014 Pearson Education, Inc. 10 - 11
 Labor Planning
Employment-Stability Policies
1. Follow demand exactly
► Matches direct labor costs to production
► Incurs costs in hiring and termination,
unemployment insurance, and premium
wages
► Labor is treated as a variable cost

© 2014 Pearson Education, Inc. 10 - 12

 Labor Planning
Employment-Stability Policies
2. Hold employment constant
► Maintains trained workforce
► Minimizes hiring, layoff, and
unemployment costs
► Employees may be underutilized during
slack periods
► Labor is treated as a fixed cost

© 2014 Pearson Education, Inc. 10 - 13

 Work Schedules
▶ Standard work schedule
▶ Five eight-hour days
▶ Flextime
▶ Allows employees, within limits, to
determine their own schedules
▶ Flexible work week
▶ Fewer but longer days
▶ Part-time
▶ Fewer, possibly irregular, hours
© 2014 Pearson Education, Inc. 10 - 14
 Job Classification and
Work Rules
▶ Specify who can do what
▶ Specify when they can do it
▶ Specify under what conditions they
can do it
▶ Often result of union contracts
▶ Restricts flexibility in assignments and
consequently efficiency of production

© 2014 Pearson Education, Inc. 10 - 15

 Job Design
▶ Specifying the tasks that constitute a job
for an individual or a group
1. Job specialization
2. Job expansion
3. Psychological components
4. Self-directed teams
5. Motivation and incentive systems

© 2014 Pearson Education, Inc. 10 - 16

 Labor Specialization
▶ The division of labor into unique tasks
▶ First suggested by Adam Smith in 1776
1. Development of dexterity
2. Less loss of time
3. Development of specialized tools
▶ Later Charles Babbage (1832) added
another consideration
4. Wages exactly fit the required skill required

© 2014 Pearson Education, Inc. 10 - 17

 Job Expansion
▶ Adding more variety to jobs
▶ Intended to reduce boredom associated
with labor specialization
▶ Job enlargement
▶ Job rotation
▶ Job enrichment
▶ Employee empowerment

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 Job Enlargement
Figure 10.2
Enriched job
Planning
(Participate in a cross-
function quality
improvement team)

Enlarged job
Task #3 Present job Task #2
(Lock printed circuit (Manually insert and (Adhere labels
board into fixture for solder six resistors) to printed circuit
next operation) board)

Control
(Test circuits after
assembly)

© 2014 Pearson Education, Inc. 10 - 19

 Psychological Components
of Job Design
Human resource strategy requires
consideration of the psychological
components
of job design

© 2014 Pearson Education, Inc. 10 - 20

 Hawthorne Studies
► They studied light levels, but discovered
productivity improvement was independent from
lighting levels
► Introduced psychology into the workplace
► The workplace social system and distinct roles
played by individuals may be more important
than physical factors
► Individual differences may be dominant in job
expectation and contribution

© 2014 Pearson Education, Inc. 10 - 21

 Core Job Characteristics
Jobs should include the following
characteristics

1. Skill variety
2. Job identity
3. Job significance
4. Autonomy
5. Feedback
© 2014 Pearson Education, Inc. 10 - 22
 Self-Directed Teams
▶ Group of empowered individuals working
together to reach a common goal
▶ May be organized for long-term or
short-term objectives
▶ Effective because
▶ Provide employee empowerment
▶ Ensure core job characteristics
▶ Meet individual psychological needs

© 2014 Pearson Education, Inc. 10 - 23

 Self-Directed Teams
To maximize effectiveness, managers should
► Ensure those who have legitimate
contributions are on the team
► Provide management support
► Ensure the necessary training
► Endorse clear objectives and goals
► Financial and non-financial rewards
► Supervisors must release control
© 2014 Pearson Education, Inc. 10 - 24
 Job Design Continuum
Self-directed
Figure 10.3 teams

Empowerment

Self-direction
Enrichment

Enlargement

Specialization

Job expansion

© 2014 Pearson Education, Inc. 10 - 25

Benefits of Teams and Expanded
Job Designs
▶ Improved quality of work life
▶ Improved job satisfaction
▶ Increased motivation
▶ Allows employees to accept more
responsibility
▶ Improved productivity and quality
▶ Reduced turnover and absenteeism

© 2014 Pearson Education, Inc. 10 - 26

 Limitations of Job Expansion

1. Higher capital cost

2. Individuals may prefer simple jobs
3. Higher wage rates for greater skills
4. Smaller labor pool
5. Higher training costs

© 2014 Pearson Education, Inc. 10 - 27

 Limitations of Job Expansion

1. Higher capital cost

2. Individuals may prefer simple jobs
3. Higher wages rates for rage Annual
Avegreater
Train ing Hours/
skills Employee
4. Smaller labor pool U.S. 7
170
5. Higher training costsSweden
Japan 200

© 2014 Pearson Education, Inc. 10 - 28

 Motivation and Incentive
Systems
▶ Bonuses - cash or stock options
▶ Profit-sharing - profits for distribution to
employees
▶ Gain sharing - rewards for improvements
▶ Incentive plans - typically based on
production rates
▶ Knowledge-based systems - reward for
knowledge or skills

© 2014 Pearson Education, Inc. 10 - 29

 Ergonomics and the Work
Environment
▶ Ergonomics is the study of the interface
between man and machine
▶ Often called
human factors
▶ Operator input
to machines

© 2014 Pearson Education, Inc. 10 - 30

 Ergonomics and Work Methods
▶ Feedback to operators
▶ The work environment
▶ Illumination
▶ Noise
▶ Temperature
▶ Humidity

© 2014 Pearson Education, Inc. 10 - 31

 Recommended Levels of
Illumination

Figure 10.4a

© 2014 Pearson Education, Inc. 10 - 32

 Levels of Illumination
TASK CONDITION TYPE OF TASK ILLUMINATION TYPE OF
OR AREA LEVEL ILLUMINATION
Small detail, Sewing, inspecting 100 Overhead ceiling
extreme accuracy dark materials lights and desk
lamp
Normal detail, Reading, parts 20-50 Overhead ceiling
prolonged periods assembly, general lights
office work
Good contrast, fairly Recreational 5-10 Overhead ceiling
large objects facilities lights

Large objects Restaurants, 2-5 Overhead ceiling

stairways, lights
warehouses

© 2014 Pearson Education, Inc. 10 - 33

 Decibel Levels

Table 10.4b

© 2014 Pearson Education, Inc. 10 - 34

 Methods Analysis
▶ Focuses on how task is performed
▶ Used to analyze
1. Movement of individuals or material
▶ Flow diagrams and process charts
2. Activities of human and machine and crew
activity
▶ Activity charts
3. Body movement
▶ Operations charts

© 2014 Pearson Education, Inc. 10 - 35

 Flow Diagram

Welding

From
Storage bins
press
mach. Paint
shop
Mach. 3 Mach. 4
Machine 1

Mach. 2

Figure 10.5 (a)

© 2014 Pearson Education, Inc. 10 - 36
 Flow Diagram

Machine 4 Welding
Machine 3
Paint
Machine 2 shop
Machine 1
From
press Storage
mach. bins

Figure 10.5 (b)

© 2014 Pearson Education, Inc. 10 - 37
 Process
Chart

Figure 10.5 (c)

© 2014 Pearson Education, Inc. 10 - 38

 Activity Chart

Figure 10.6
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 Operation Chart
Figure 10.7

© 2014 Pearson Education, Inc. 10 - 40

 The Visual Workplace
▶ Use low-cost visual devices to share
information quickly and accurately
▶ Displays and graphs replace printouts
and paperwork
▶ Able to provide timely information in a
dynamic environment
▶ System should focus on improvement

© 2014 Pearson Education, Inc. 10 - 41

 The Visual Workplace
Visual signals can take many forms
and serve many functions

► Present the big picture

► Performance
► Housekeeping

© 2014 Pearson Education, Inc. 10 - 42

 The Visual Workplace
Visual utensil holder A “3-minute service” clock
encourages reminds employees of the
housekeeping goal

Figure 10.8
© 2014 Pearson Education, Inc. 10 - 43
 The Visual Workplace
Visual signals at the Visual kanbans reduce
machine notify inventory and foster JIT
support personnel

Reorder
Line/machine point
stoppage

Parts/
maintenance
needed

All systems go
Part A Part B Part C
Andon
Figure 10.8
© 2014 Pearson Education, Inc. 10 - 44
 All systems go
The Visual Workplace

Quantities in bins indicate

s indicate ongoing
ongoing daily requirementsCompany data, process
Company specificatio
data, process
and clipboards provide
nts, and clipboards
information on schedule and operating procedures
specifications, are poste
and operating
procedures are posted in
ion onchanges
schedule in each work area.
each work area

Figure 10.8
© 2014 Pearson Education, Inc. 10 - 45
 Labor Standards
▶ Effective manpower planning is
dependent on a knowledge of the labor
required
▶ Labor standards are the amount of time
required to perform a job or part of a
job
▶ Accurate labor standards help
determine labor requirements, costs,
and fair work

© 2014 Pearson Education, Inc. 10 - 46

 Labor Standards
▶ Started early in the 20th century
▶ Important to both manufacturing and
service organizations
▶ Necessary for determining staffing
requirements
▶ Important to labor incentive systems

© 2014 Pearson Education, Inc. 10 - 47

 Meaningful Standards Help
Determine
1. Labor content of items produced
2. Staffing needs
3. Cost and time estimates
4. Crew size and work balance
5. Expected production
6. Basis of wage-incentive plans
7. Efficiency of employees
© 2014 Pearson Education, Inc. 10 - 48
 Ethics
▶ Fairness, equity, and ethics are
important constraints of job design
▶ Important issues may relate to equal
opportunity, equal pay for equal work,
and safe working conditions
▶ Helpful to work with government
agencies, trade unions, insurers, and
employees

© 2014 Pearson Education, Inc. 10 - 49

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

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