Chapter 7 DESIGN OF WORK SYSTEMS OPERATIONS STRATEGY It is important for management to make design of work systems a key element

of its operations strategy. In spite of the major advances in computers and manufacturing technology, people are still the heart of a business; they can make or break it, regardless of the technology used. Technology is important, of course, but technology alone is not enough. The topics described in this chapter job design, methods analysis, motion study, work standards, and incentives all have an impact on productivity. They lack the glamour of high tech; they are closer to the back-to-the-basics fundamentals of work improvement. Workers can be a valuable source of insight and creativity because they actually perform the jobs and are closer to the problems that arise. All too often, managers have overlooked contributions and potential contributions of employees, sometimes because of ignorance and sometimes because of a false sense of pride. Union management differences are also a factor. More and more, though, companies are attempting to develop a spirit of cooperation between employees and managers, based in part on the success of Japanese companies. In the same vein, an increasing number of companies are focusing some of their attention on improving the quality of work life and instilling pride and respect among workers. Many organizations are reaping surprising gains through worker empowerment, giving workers more say over their jobs. People work for a variety of reasons. Economic necessity is among the most important, but beyond that, people work for socialization, to give meaning and purpose to their lives, for status, for personal growth, and for other reasons. These reasons can play an important role of the lives of workers and should be accorded serious consideration in the design of work systems.

Job Design. The act of specifying the contents and methods of jobs. The goal of job design is to create a work system that is productive and efficient, taking into consideration of costs and benefits of alternatives for the organizations and the workers. Successful job design must be: 1. Carried out by experienced personnel who have the necessary training and background. 2. Consistent with the goals of the organization. 3. In written form. 4. Understood and agreed to by both management and employees. Current practice in job design contains elements of two basic schools of thought. One might be called the efficiency school because it emphasizes a systematic, logical approach to job design; the other is called the behavioral school because it emphasizes satisfaction of needs and wants. Specialization. Work that concentrates on some aspect of a product or service. Behavioral Approaches to Job Design Job enlargement. Giving a worker a larger portion of the total task, horizontal loading. Job rotation. Workers periodically exchange jobs. Job enrichment. Increasing responsibility for planning and coordination tasks, by vertical loading.

Self-directed teams. Empowered to make certain changes in their work processes. The benefits of teams include higher quality, higher productivity, and greater worker satisfaction. Methods Analysis The need foe methods analysis can come from a number of difference sources: 1. Changes in tools and equipment. 2. Changes in product design, or new product. 3. Changes in materials or procedures 4. Government regulations or contractual agreements. 5. Other factors such accidents and quality problems The basic procedure in method analysis is: 1. Identify the operation to be studied, and gather all pertinent facts about tools, equipment, materials, and so on. 2. If the job is currently being done, discuss the job with the operator and supervisor to get their input. 3. Study and document the present method of an existing job using process charts. For new jobs, develop charts based on information about the activities involved. 4. Analyze the job. 5. Propose new methods. 6. Install the new methods. 7. Follow up installation to assure that improvements have been achieved. Selecting an Operating to Study. 1. Have a high labor content. 2. Jobs are done frequently. 3. Jobs are unsafe, tiring, unpleasant, and/or noisy. 4. Jobs are designated as problems Documenting the Present Method Use charts, graphs, and verbal descriptions of the way the job is now being performed. Analyzing the Job and Proposing New Methods Flow process chart. Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials. Worker-machine chart. Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle. Installing the Improved Method Successful implementation of proposed method changes requires convincing management of the desirability of new method and obtaining the cooperation of the worker. The Follow-up In order to ensure that changes have been made and that the proposed method is functioning as expected, the analyst should review the operation after a reasonable period and consult again with the operator. Motion Study. Systematic study of the human motion used to perform an operation. The purpose is to eliminate unnecessary motions and to identify the best sequence of motions for maximum efficiency. The most-used techniques are: 1. Motion study principles. Guidelines for designing motion-efficient work procedures. a. Eliminate unnecessary motions b. Combine activities c. Reduce fatigue d. Improve the arrangement of the workplace

e. Improve the design of tools and equipment 2. Analysis of therblings. Basic elemental motions into which a job can be broken down. a. Search implies hunting for an item with the hands and/or the eyes. b. Select means to choose from a group of objects. c. Group means to take hold of an object. d. Hold refers to intention of an object after it has been grasped. e. Transport load means movement of an object after hold. f. Release load means to deposit the object. 3. Micromotion study. Use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze. 4. Charts. Simo charts can be used to study simultaneous motions of the hands. Working Conditions 1. Temperature and Humidity. 2. Ventilation 3. Illumination 4. Color a. Effects of colors on mood and feelings b. Visual discriminations c. Designate safe or hazardous areas 5. Noise and Vibration 6. Work Breaks 7. Safety There two basis causes of accidents are worker carelessness and accident hazards. OSHA. Occupational Safety and Health Act of 1970; Occupational Safety and Health Administration. Work Measurement Job design determines the content of a job, and methods analysis determines how a job is to be performed. Work measurement is concerned with determining the length of time it should take to complete job. Job times are vital inputs for manpower planning, estimating labor costs, scheduling, budgeting, and designing incentive systems. Standard time. The amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw materials, and workplace arrangements. The most commonly used methods of work measurements: 1. Stopwatch time study. Development of a time standard based on observations of one worker taken over a number of cycles. Steps: a. Define the task to be studied, and inform the worker who will be studied. b. Determine the number of cycles to observe. c. Time the job, and rate the workers performance. d. Compute the standard time. Several reasons: a. Some elements are not performed in every cycle, and the breakdown enables the analyst to get better perspective on them. b. The workers proficiency may not be the same for all elements of the job. c. To build a file of elemental times that can be used to set for other jobs. The number of cycles that must be timed is a function of three things: 1. the variability of observed times 2. desired accuracy 3. desired level of confidence for the estimated job time

The sample size needed to achieve that goal can be determine using this formula: n = (zs/ax)2 where z number of normal deviations needed for desired confidence s sample standard deviation a desired accuracy percentage x sample mean An alternate formula used when the desired accuracy is stated as an amount instead of a percentage: n = (zs/e) 2 where e accuracy or maximum acceptable error s = (xi x)2 / n 1 or s = [ x2i - ( xi)2 / n] / n 1 Development of time standard involves computation of three times: a. Observed time is simply the average of the recorded times. OT = xi / n Where OT observe time xi sum of recorded times n number of observations b. Normal time is the observed time adjusted for worker performance. NT = OT x PR Where NT normal time PR performance rating This assumes that a single performance rating has been made for the entire job. NT = (xj x PRj) Where xj average time for element j PRj performance rating for element j c. Standard time. Normal time is the length of time worker should take to perform a job if there are no delays or interruptions. ST = NT(1 + A) Where ST standard time A allowance percentage based on job time 2. Historical times Standard elemental times. Time standards derived from a firms historical time data. The procedure for using standard elemental times consists of the following steps: a. Analyze the job to identify the standard elements. b. Check the file for elements that have historical times, and record them. Use time study to obtain others, if necessary. c. Modify the file time if necessary. d. Sum the elemental times to obtain the normal times, and factor in allowances to obtain the standard time. Advantages: a. Potential approach savings in cost and effort created by not having to conduct a complete time study for each job.

b. There is less disruption of work c. Performance ratings do not have to be done; they are generally averaged in the file times. Disadvantage: a. Times may not exist for enough standard elements to make it worthwhile, and the file times may be biased or inaccurate. 3. Predetermined data Predetermined time standards. Published data based on extensive research to determine standard elemental times. A commonly used system is methods-time measurement (MTM). Advantages: 1. They are based on large numbers of workers under controlled conditions. 2. The analyst is not required to rate performance in developing the standard. 3. There is no disruption of the operation. 4. Standard can be established even before a job is done. 4. Work sampling Work sampling. Technique for estimating the proportion of time that a worker or machine spends on various activities. e = p(1-p) / n where z number of standard deviations needed to achieve desired confidence p sample proportion n sample size Steps: 5. Clearly identify the worker and machines to be studied. 6. Notify the workers and supervisors of the purpose of the study to avoid arousing suspicions. 7. Compute an initial estimate of sample size using a preliminary estimate of p, if available. 8. Develop a random observation schedule 9. Begin taking observations. Recomputed the required sample size several times during the study. 10. Determine the estimated proportion of time spent on the specified activity Random number table. Table consisting of unordered sequences of numbers, used to determine random observation schedules. Compensation Organizations use two basic systems for compensating employees: 1. Time-based system. Compensation based on time an employee has worked during a pay period. 2. Output-based system. Compensation based on amount of output an employee produced during a pay period. The incentive plan should be; 1. Accurate 2. Easy to apply 3. Consistent 4. Easy to understand 5. Fair Incentive system may focus on the output of each individual or on that of a group.

Knowledge-based pay. A pay system used by organizations to reward workers who undergo training that increases their skills.