7-1 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Chapter 7 Design of Work Systems

7-2 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Job design involves specifying the content and methods of job –What will be done –Who will do the job –How the job will bob will be done –Where the job will be done –Ergonomics Job Design

7-3 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Specialization Behavioral Approaches to Job Design Teams Methods Analysis Motions Study Working conditions

7-4 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems 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

7-5 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Specialization in Business: Advantages ForManagement: 1. Simplifies training 2. High productivity 3. Low wage costs ForLabor: 1. Low education and skill requirements 2. Minimum responsibilities 3. Little mental effort needed

7-6 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Disadvantages ForManagement: 1. Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality ForLabor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for self-fulfillment

7-7 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Behavioral Approaches to Job Design Job Enlargement –Giving a worker a larger portion of the total task by horizontal loading Job Rotation –Workers periodically exchange jobs Job Enrichment –Increasing responsibility for planning and coordination tasks, by vertical loading

7-8 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Methods Analysis Changes in tools and equipment Changes in product design or new products Changes in materials or procedures Other factors (e.g. accidents, quality problems) The need for methods analysis can come from a number of different sources:

7-9 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems FLOW PROCESS CHART Job Requisition of petty cash Details of Method ANALYST D. Kolb PAGE 1 of 2 Operation Movement Inspection Delay Storage 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 Figure 7-2

7-10 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Motion Study Motion study is the systematic study of the human motions used to perform an operation.

7-11 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems 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

7-12 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Eliminate unnecessary motions Combine activities Reduce fatigue Improve the arrangement of the workplace Improve the design of tools and equipment Developing Work Methods

7-13 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Working Conditions

7-14 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Working Conditions (cont’d) Noise & Vibration Causes of Accidents Safety Work Breaks

7-15 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Work Measurement Stopwatch Time Study Standard Elemental Times Predetermined Time Standards Work Sampling

7-16 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Compensation Individual Incentive Plans Group Incentive Plans Knowledge-Based Pay System Management Compensation

7-17 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Form of Incentive Plan Accurate Easy to apply Consistent Easy to understand Fair

7-18 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Design of Work Systems Group Incentive Plans Scanlon Plan –Encourage reductions in labor costs Kaiser Plan –Committees suggest ways of reducing costs Lincoln Plan –Profit sharing, job enlargement, and participative management Kodak Plan –Wages/bonus related to profits