1. 1 © 2010 Nkumbwa™. All Rights Reserved. Job Design, Work Measurement and Labor Standards Eng. R. L. Nkumbwa™ www.nkumbwa.weebly.com

2. 2 © 2010 Nkumbwa™. All Rights Reserved. Outline Job Design Job Design Job specialization Job specialization Job expansion Job expansion Psychological components Psychological components Self-directed teams Self-directed teams Motivation and incentive systems Motivation and incentive systems Ergonomics and work methods Ergonomics and work methods Work Measurement Work Measurement Time Studies Time Studies Work Sampling Work Sampling Labor Standards Labor Standards

3. 3 © 2010 Nkumbwa™. All Rights Reserved. Job Design Specifying the tasks that make up a job for an individual or group Specifying the tasks that make up a job for an individual or group Involves determining Involves determining What is to be done (i.e., responses) What is to be done (i.e., responses) How it is to be done (i.e., tools etc.) How it is to be done (i.e., tools etc.) Why it is to be done (i.e., purpose) Why it is to be done (i.e., purpose) Results in job description Results in job description Shows nature of job in task-related behaviors Shows nature of job in task-related behaviors

4. 4 © 2010 Nkumbwa™. All Rights Reserved. Job Classifications and Work Rules Specify Specify who can do what who can do what when they can do it when they can do it under what conditions they can do it under what conditions they can do it Occasionally the result of union pressure Occasionally the result of union pressure Restricts flexibility in assignments; consequently restricts efficiency of production Restricts flexibility in assignments; consequently restricts efficiency of production

5. 5 © 2010 Nkumbwa™. All Rights Reserved. Work Schedules Standard work schedule Standard work schedule five eight-hour days five eight-hour days Flex-time Flex-time allows employees, within prescribed limits, to determine their own schedules allows employees, within prescribed limits, to determine their own schedules Flexible work week Flexible work week four 10-hour days four 10-hour days Part-time Part-time less than eight hours per day, or an irregular schedule less than eight hours per day, or an irregular schedule

6. 6 © 2010 Nkumbwa™. All Rights Reserved. Components of Job Design Job specialization Job specialization Job expansion Job expansion Psychological components Psychological components Self-directed teams Self-directed teams Motivation and incentive systems Motivation and incentive systems Ergonomics and work methods Ergonomics and work methods

7. 7 © 2010 Nkumbwa™. All Rights Reserved. Job Specialization Involves Involves Breaking jobs into small component parts Breaking jobs into small component parts Assigning specialists to do each part Assigning specialists to do each part First noted by Adam Smith (1776) First noted by Adam Smith (1776) Observed how workers in pin factory divided tasks into smaller components Observed how workers in pin factory divided tasks into smaller components Found in manufacturing & service industries Found in manufacturing & service industries

8. 8 © 2010 Nkumbwa™. All Rights Reserved. Greater dexterity & faster learning Greater dexterity & faster learning Less lost time changing jobs or tools Less lost time changing jobs or tools Use of more specialized tools Use of more specialized tools Pay only for needed skills Pay only for needed skills Job Specialization Often Reduces Cost

9. 9 © 2010 Nkumbwa™. All Rights Reserved. Job Expansion Process of adding more variety to jobs Process of adding more variety to jobs Intended to reduce boredom associated with labor specialization Intended to reduce boredom associated with labor specialization Methods Methods Job enlargement Job enlargement Job enrichment Job enrichment Job rotation Job rotation Employee empowerment Employee empowerment

10. 10 © 2010 Nkumbwa™. All Rights Reserved. Job Rotation Geriatrics © 1995 Corel Corp. Pediatrics © 1995 Corel Corp. Maternity © 1995 Corel Corp.

11. 11 © 2010 Nkumbwa™. All Rights Reserved. Employee Empowerment Control Decision-Making Planning

12. 12 © 2010 Nkumbwa™. All Rights Reserved. Psychological Components of Job Design Individuals have values, attitudes, and emotions that affect job results Individuals have values, attitudes, and emotions that affect job results Example: Work is a social experience that affects belonging needs Example: Work is a social experience that affects belonging needs Effective worker behavior comes mostly from within the individual Effective worker behavior comes mostly from within the individual Scientific management argued for external financial rewards Scientific management argued for external financial rewards First examined in ‘Hawthorne studies’ First examined in ‘Hawthorne studies’

13. 13 © 2010 Nkumbwa™. All Rights Reserved. Hawthorne Studies Conducted in late 1920’s Conducted in late 1920’s Western Electric Hawthorne plant Western Electric Hawthorne plant Showed importance of the individual in the workplace Showed importance of the individual in the workplace Showed the presence of a social system in the workplace Showed the presence of a social system in the workplace

14. 14 © 2010 Nkumbwa™. All Rights Reserved. Originally intended to examine effects of lighting on productivity Originally intended to examine effects of lighting on productivity Scientific management proposed that physical conditions affect productivity Scientific management proposed that physical conditions affect productivity Result: Productivity increased regardless of lighting level Result: Productivity increased regardless of lighting level Conclusion: Increased productivity was due to workers’ receiving attention Conclusion: Increased productivity was due to workers’ receiving attention Hawthorne Studies: Workplace Lighting

15. 15 © 2010 Nkumbwa™. All Rights Reserved. Examined effects of group piecework pay system on productivity Examined effects of group piecework pay system on productivity Workers under piecework system should produce as much as possible Workers under piecework system should produce as much as possible Scientific management assumes that people are motivated only by money Scientific management assumes that people are motivated only by money Result: Production less than maximum Result: Production less than maximum Conclusion: Social pressure caused workers to produce at group-norm level Conclusion: Social pressure caused workers to produce at group-norm level Hawthorne Studies: Piecework Pay

16. 16 © 2010 Nkumbwa™. All Rights Reserved. Self-Directed Teams Group of empowered individuals working together for a common goal Group of empowered individuals working together for a common goal May be organized for short-term or long-term objectives May be organized for short-term or long-term objectives Reasons for effectiveness Reasons for effectiveness Provide employee empowerment Provide employee empowerment Provide core job characteristics Provide core job characteristics Meet psychological needs (e.g., belonging) Meet psychological needs (e.g., belonging)

17. 17 © 2010 Nkumbwa™. All Rights Reserved. Job Design Continuum Increasing reliance on employees’ contribution and increasing acceptance of responsibility by employee Specialization Enlargement Enrichment Empowerment Self-directed Teams Job Expansion

18. 18 © 2010 Nkumbwa™. All Rights Reserved. Core Job Characteristics Skill variety Skill variety Job identify Job identify Job significance Job significance Autonomy Autonomy Feedback Feedback

19. 19 © 2010 Nkumbwa™. All Rights Reserved. Motivation Worker performance depends on Worker performance depends on Motivation Motivation Ability Ability Work environment Work environment Motivation is the set of forces that compel behavior Motivation is the set of forces that compel behavior Money may serve as a psychological & financial motivator Money may serve as a psychological & financial motivator

20. 20 © 2010 Nkumbwa™. All Rights Reserved. Motivation and Money Taylor’s scientific management (1911) Taylor’s scientific management (1911) Workers are motivated mainly by money Workers are motivated mainly by money Suggested piece-rate system Suggested piece-rate system Maslow’s theory (1943) Maslow’s theory (1943) People are motivated by hierarchy of needs, which includes money People are motivated by hierarchy of needs, which includes money Herzberg (1959) Herzberg (1959) Money either dissatisfies or is neutral in its effect Money either dissatisfies or is neutral in its effect

21. 21 © 2010 Nkumbwa™. All Rights Reserved. Monetary Incentives Bonuses: Cash & stock options Bonuses: Cash & stock options Profit sharing: Distribution of profits Profit sharing: Distribution of profits Gain sharing: Reward for company performance (e.g., cost reduction) Gain sharing: Reward for company performance (e.g., cost reduction) Scanlon plan is most popular (cost reduction.) Scanlon plan is most popular (cost reduction.) Incentive systems Incentive systems Measured daywork: Pay based on standard time Measured daywork: Pay based on standard time Piece rate: Pay based on pieces done Piece rate: Pay based on pieces done

22. 22 © 2010 Nkumbwa™. All Rights Reserved. Maslow’s Hierarchy of Needs Self-Actualization Use of abilities Self-fulfillment Social Group Interaction Job Status Safety Physical Safety Job Security Physiology Food Shelter Ego Self Respect

23. 23 © 2010 Nkumbwa™. All Rights Reserved. Herzberg’s Motivation/Hygiene Factors ©Achievement ©Recognition ©Advancement ©Work itself ©Responsibility ©Personal growth ©Company policies and administration ©Supervision - technical ©Working conditions ©Interpersonal relations - supervision ©Status ©Job security ©Salary Job Dissatisfiers (Hygiene) Job Satisfiers (Motivators)

24. 24 © 2010 Nkumbwa™. All Rights Reserved. Job Characteristics Motivation Motivation Satisfaction Satisfaction Job performance Job performance Absenteeism & turnover Absenteeism & turnover Core Job Characteristics Psychological States Personal & Work Outcomes Hackman & Oldham

25. 25 © 2010 Nkumbwa™. All Rights Reserved. Ergonomics and Work Methods Worker performance depends on Worker performance depends on Motivation Motivation Ability Ability Work environment Work environment Foundation laid by Frederick Taylor Foundation laid by Frederick Taylor Match employees to task Match employees to task Develop work methods Develop work methods Establish work standards Establish work standards

26. 26 © 2010 Nkumbwa™. All Rights Reserved. Ergonomics Study of work Study of work Also called ‘human factors’ Also called ‘human factors’ Involves human-machine interface Involves human-machine interface Examples Examples Mouse Mouse Keyboard Keyboard

27. 27 © 2010 Nkumbwa™. All Rights Reserved. Methods Analysis Focuses on how task is performed Focuses on how task is performed Used to analyze Used to analyze Movement of body, people, or material Movement of body, people, or material Activities of people & machines Activities of people & machines Tools Tools Process chart Process chart Flow diagram Flow diagram Activity chart Activity chart Operations chart (right-hand, left-hand) Operations chart (right-hand, left-hand)

28. 28 © 2010 Nkumbwa™. All Rights Reserved. Methods Analysis Movement of individuals or materials (Flow diagrams or process charts) Movement of individuals or materials (Flow diagrams or process charts) Activity of human and machine and crew activity (Activity charts) Activity of human and machine and crew activity (Activity charts) Body movement (primarily hands) (Micro-motion charts) Body movement (primarily hands) (Micro-motion charts)

29. 29 © 2010 Nkumbwa™. All Rights Reserved. The Visual Workplace Uses low-cost visual devices to share information quickly and accurately. Uses low-cost visual devices to share information quickly and accurately. Displays and graphs replace paper Displays and graphs replace paper Provides real-time information Provides real-time information System should focus on improvement, not merely monitoring System should focus on improvement, not merely monitoring Can provide both production and financial data Can provide both production and financial data

30. 30 © 2010 Nkumbwa™. All Rights Reserved. The Visual Workplace

31. 31 © 2010 Nkumbwa™. All Rights Reserved. What is Work Measurement? Determining the amount of worker time required to generate one unit of output Determining the amount of worker time required to generate one unit of output Provides labor standards Provides labor standards Target amount of time required to perform a job under normal working conditions Target amount of time required to perform a job under normal working conditions

32. 32 © 2010 Nkumbwa™. All Rights Reserved. Labor standards are based on observing worker doing task Labor standards are based on observing worker doing task Observe only a sample of work Observe only a sample of work Use average time & pace to set standard Use average time & pace to set standard Disadvantages Disadvantages Requires a trained & experienced analyst Requires a trained & experienced analyst Standard cannot be set before task is performed Standard cannot be set before task is performed Time Studies

33. 33 © 2010 Nkumbwa™. All Rights Reserved. Eight Steps to Conducting a Time Study 1. Define the task to be studied (after a methods analysis) 2. Break down the task into precise elements 3. Decide how many times each element of the task must be measured 4. Record the times and ratings of performance for the task elements 5. Compute the average observed cycle time (element times adjusted for unusual influences)

34. 34 © 2010 Nkumbwa™. All Rights Reserved. 6.Compute the normal time for each task element: Normal time = (Average actual cycle time) x (Rating factor) 7.Sum the normal times for each element to develop a total normal time for the task 8.Compute the standard time: Eight Steps to Conducting a Time Study Standard time = Total normal time 1- Allowance factor

35. 35 © 2010 Nkumbwa™. All Rights Reserved. Allowances Personal time allowance - 4% - 7% of total time - use of restroom, water fountain, etc. Personal time allowance - 4% - 7% of total time - use of restroom, water fountain, etc. Delay allowance - based upon actual delays that occur Delay allowance - based upon actual delays that occur Fatigue allowance - to compensate for physical or mental strain, noise level, tediousness, heat and humidity, assumption of an abnormal position, etc. Fatigue allowance - to compensate for physical or mental strain, noise level, tediousness, heat and humidity, assumption of an abnormal position, etc.

36. 36 © 2010 Nkumbwa™. All Rights Reserved. Rest Allowances (%) for Various Classes of Work 1. Constant allowance (a) Personal allowance ……………... (b) Basic fatigue allowance ………… 2.Variable allowances: (A) Standing allowance …………….. (B) Abnormal position (I) Awkward (bending) …………. (ii) Very awkward (lying, stretching) …………………….. (C) Use of force or muscular energy in lifting, pulling, pushing Weight lifted (pounds) 20 ………………………………… 40………………………………….60…………………………………. 5 4 2 7 3 9 17

37. 37 © 2010 Nkumbwa™. All Rights Reserved. Rest Allowances (%) for Various Classes of Work (D) Bad light (i) Well below recommended ….. (ii) Quite inadequate ……………. (E) Atmospheric conditions (heat and humidity) Variable ………………………….. (F) Close attention (i) Fine or exacting ……………… (ii)Very fine or very exacting …... (G) Noise level (i) Intermittent – loud …………… (ii) Intermittent – very loud or high-pitched 2 5 1-10 2 5 2 5

38. 38 © 2010 Nkumbwa™. All Rights Reserved. Rest Allowances (%) for Various Classes of Work (H) Mental strain (i) Complex or wide span of attention ……………………… (ii) Very complex ……………. (I) Tediousness (i) Tedious ……………………. (ii) Very tedious ……………… 4 2 5

39. 39 © 2010 Nkumbwa™. All Rights Reserved. Time Studies - Sample Size h = accuracy level desired as percent of job element, expressed as a decimal (5% = 0.05) z = number of standard deviations required for the desired level of confidence s = standard deviation of the initial sample x = mean of the initial sample

40. 40 © 2010 Nkumbwa™. All Rights Reserved. Considerations in Determining Sample Size ¶ How accurate do you want to be? · What level of confidence do you want your measurements to have? ¸ How much variation exists within the job elements?

41. 41 © 2010 Nkumbwa™. All Rights Reserved. Common z values

42. 42 © 2010 Nkumbwa™. All Rights Reserved. Allowance factor Nonwork time Total time Average element time  Element times Number of cycles Normal time Average element time * Perf. Rating Standard time Total normal time 1 - Allowance factor = = = = Time Study Equations

43. 43 © 2010 Nkumbwa™. All Rights Reserved. Labor standards are set from times in published tables (e.g., MTM Table) Labor standards are set from times in published tables (e.g., MTM Table) Procedure Procedure Divide manual work into basic elements Divide manual work into basic elements Look up basic element times in table; sum Look up basic element times in table; sum Advantages Advantages Times established in laboratory setting Times established in laboratory setting Useful for planning tasks Useful for planning tasks Widely accepted by unions Widely accepted by unions Predetermined Time Standards

44. 44 © 2010 Nkumbwa™. All Rights Reserved. Time TMU Hand in Motion Distance Moved (in) ABCAB 3/4 or less 2.0 1.6 1 2.5 3.62.3 2 4.0 5.93.52.7 A Reach to object in fixed location. B Reach to object in variable locations. C Reach to object jumbled with others. 1 TMU =.0006 minutes MTM Table for Reach Motion

45. 45 © 2010 Nkumbwa™. All Rights Reserved. Sample MTM Table for GET and PLACE Motions

46. 46 © 2010 Nkumbwa™. All Rights Reserved. MTM-HC Analysis: Pouring Tube Specimen Element Description ElementTime Get tube from rack AA235 Get stopper, place on counter AA235 Get centrifuge tube, place at sample tube AD245 Pour (3 sec.) PT83 Place tubes in rack (simo) PC240 0.0006*238=Total standard minutes = 0.14 Total TMU 238 238

47. 47 © 2010 Nkumbwa™. All Rights Reserved. Labor standard is set using output and % of time worker spends on tasks Labor standard is set using output and % of time worker spends on tasks Involves observing worker at random times over a long period Involves observing worker at random times over a long period Advantages Advantages Less expensive than time studies Less expensive than time studies Observer requires little training Observer requires little training Disadvantages Disadvantages Ineffective with short cycles Ineffective with short cycles Work Sampling

48. 48 © 2010 Nkumbwa™. All Rights Reserved. Used for Used for Ratio delay studies Ratio delay studies Setting labor standards Setting labor standards Measuring worker performance Measuring worker performance Work Sampling

49. 49 © 2010 Nkumbwa™. All Rights Reserved. The Five Step Work Sampling Procedure 1. Take a preliminary sample to obtain an estimate of the parameter value 2. Compute the sample size required 3. Prepare a schedule for observing the worker at appropriate times 4. Observe and record worker activities; rate worker performance 5. Determine how workers spend their time (usually as a percent)

50. 50 © 2010 Nkumbwa™. All Rights Reserved. Work Sampling - Sample Size p = estimated value of sample proportion (of time worker is observed busy or idle) h = accuracy level desired in percent, expressed as a decimal

51. 51 © 2010 Nkumbwa™. All Rights Reserved. Normal Time = (Total Time) (% of time working) (Rating) Number of units Produced Standard Time = Normal Time 1 - Allowance Work Sampling Equations

52. 52 © 2010 Nkumbwa™. All Rights Reserved. Uses of Labor Standards Costing labor content of products Costing labor content of products Planning staffing needs Planning staffing needs Cost & time estimates for bids Cost & time estimates for bids Planning production Planning production Wage-incentive plans Wage-incentive plans Employee efficiency Employee efficiency

53. 53 © 2010 Nkumbwa™. All Rights Reserved. Sources of Labor Standards Historical experience Historical experience Time studies Time studies Predetermined time standards (MTM) Predetermined time standards (MTM) Work sampling Work sampling

54. 54 © 2010 Nkumbwa™. All Rights Reserved. Labor Standards - Historical Experience Labor standards are based on how many labor-hours were needed in past Labor standards are based on how many labor-hours were needed in past Least preferred method Least preferred method Advantages Advantages Easy and inexpensive to obtain standard Easy and inexpensive to obtain standard Disadvantages Disadvantages Unknown accuracy due to unusual occurrences, unknown pace etc. Unknown accuracy due to unusual occurrences, unknown pace etc.

55. 55 © 2010 Nkumbwa™. All Rights Reserved. Costing labor content of products Costing labor content of products Planning staffing needs Planning staffing needs Estimating time and cost for bids Estimating time and cost for bids Planning production (crew size and work balance) Planning production (crew size and work balance) Estimating expected production Estimating expected production Basing wage-incentive plans Basing wage-incentive plans Determining employee efficiency Determining employee efficiency Uses of Labor Standards