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--incorporating human factors into the design of a product or process Goals –Productivity –Safety –Quality of work life 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 Ways of overcoming worker boredom 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 Motivation What makes people work People can be motivated by: –Money –Social needs –Self-fulfillment –Sense of accomplishment –Fear

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 Self-Directed Teams Groups empowered to make limited changes in their work processes Based on the assumption that no one knows more about a process than the workers Can lead to: –Higher productivity –Higher quality –Greater worker satisfaction –Lower turnover

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 Methods Analysis Changes in tools and equipment Changes in product design or new products Changes in materials or procedures Regulations or contractual issues Other factors (e.g. accidents, quality problems, productivity) Analyzing how a job is done The need for methods analysis can come from a number of different sources:

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 Methods Analysis Can be used on new or existing jobs Procedure: –Identify the operation to be studied and gather facts –Discuss the job with supervisor and operator –Study and document current/proposed method –Analyze the job –Propose new methods –Install new methods –Follow-up to ensure results have been achieved

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 Motion Study Motion study is the systematic study of the human motions used to perform an operation in order to improve ergonomics, safety, and efficiency.

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 Motion Study Techniques 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

7-14 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 Eliminate unnecessary motions Combine activities Reduce fatigue Improve the arrangement of the workplace Improve the design of tools and equipment Developing Work Methods

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 Working Conditions Environmental conditions that impact worker performance, safety, and productivity

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 Working Conditions

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 Working Conditions (cont’d) Noise & Vibration Causes of Accidents Safety Work Breaks

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 Work Measurement Determining how long it should take to do a job Critical for manpower planning, estimating labor costs, scheduling, budgeting, etc. Methods: –Stopwatch Time Study –Standard Elemental Times –Predetermined Time Standards –Work Sampling

7-19 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 Two most basic categories of compensation: –Time based –Output based Other subcategories: –Individual Incentive Plans –Group Incentive Plans –Knowledge-Based Pay System –Management Compensation

7-20 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