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    Design of People System

    Henry C. Co

    Technology and Operations Management,

    California Polytechnic and State University

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    Design of People System (Henry C. Co) 3

    Job Design

    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: Incorporation of humanfactors in the design of the workplace

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    Design of People System (Henry C. Co) 4

    Design of Work Systems

    Specialization

    Behavioral Approaches to Job Design

    Teams

    Methods Analysis Motions Study

    Working conditions

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    Design of People System (Henry C. Co) 5

    Decisions in Job Design

    HowWhyWhenWhereWhatWho

    Mental and

    physical

    characteristics

    of the

    work force

    Tasks to be

    performed

    Geographic

    locale of the

    organization;

    location of

    work areas

    Time of day;

    time of

    occurrence in

    the work flow

    Organizational

    rationale for

    the job; object-

    ives and mot-

    ivation of the

    worker

    Method of

    performance

    and

    motivation

    Ultimate

    Job

    Structure

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    Design of People System (Henry C. Co) 6

    Approaches in Job Design

    Behavioral approaches

    The Hawthorn studies.

    The work of Herzberg, Hackman, Oldham,and others.

    Japanese management systems. Efficiency approaches

    From Taylors scientific managementconcepts (Time study, work sampling,

    methods. improvement study).

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    Design of People System (Henry C. Co) 7

    Behavioral Approaches (Psycho-SocialFactors)

    Job enlargement (high task variety).

    Vertical (job enrichment).

    To include planning, organizing, inspectingones own work.

    Meaningful work, responsibility for outcomes.

    Knowledge of actual results.

    Horizontal (greater variety).

    Job Rotation: Workers periodicallyexchange.

    Taylorism (high task specialization).

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    Design of People System (Henry C. Co) 8

    Socio-technical system

    Blends the sociological concerns of theworker with modern technology of robotsand computer-controlled machines.

    Design job to adjust the needs of theworkers and work group.

    Skill variety.

    Task variety.

    Task identity.

    Task autonomy.

    Feedback.

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    Design of People System (Henry C. Co) 9

    Specialization in Business (Table 7.1)

    For Management:

    1. Difficult to motivate

    quality

    2. Worker dissatisfaction,

    possibly resulting in

    absenteeism, high

    turnover, disruptive

    tactics, poor attention

    to quality

    For Labor:

    1. Monotonous work

    2. Limited opportunities

    for advancement

    3. Little control over work

    4. Little opportunity for

    self-fulfillment

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    Design of People System (Henry C. Co) 10

    Disadvantages

    For Management:

    1. Difficult to motivate

    quality

    2. Worker dissatisfaction,

    possibly resulting in

    absenteeism, high

    turnover, disruptive

    tactics, poor attention

    to quality

    For Labor:

    1. Monotonous work

    2. Limited opportunities

    for advancement

    3. Little control over work

    4. Little opportunity for

    self-fulfillment

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    Design of People System (Henry C. Co) 11

    Efficiency Approach (Technical-PhysicalFactors)

    Work Physiology (Study of Manual Tasks)

    Manual tasks entail stress on large muscle groups. Physiological Indices of Fatigue

    heart rate, oxygen intake. sweat rate, lactic acid in blood, body

    temperature.

    Human-Factors Engineering Motor Tasks Controlled by the central nervous system. Fatigue is localized in small muscle groups (e.g.,

    fingers, arms, hands).

    Mental Tasks Rapid decision making based upon stimuli. Effectiveness measured by response time and

    kind/number of errors.

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    Design of People System (Henry C. Co) 12

    The Work Environment

    Working ConditionsTemperature &Humidity

    Ventilation

    Illumination Color

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    Design of People System (Henry C. Co) 13

    Noise & Vibration

    Causes of AccidentsSafety

    Work Breaks

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    Design of People System (Henry C. Co) 14

    Work Methods The need for methods analysis can come from a

    number of different sources: Changes in tools and equipment. Changes in product design or new products. Changes in materials or procedures. Other factors (e.g. accidents, quality problems).

    Focus on doing the job right; poka yoke.

    Select the job to be studied. Jobs that are prone to human error. High labor content; done frequently. Unsafe or tiring that offer the most potential for

    improvement.

    Document and analyze the present method.

    Develop an improved method. Implement the improved method. Maintain and follow up on the new method.

    d l

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    Design of People System (Henry C. Co) 15

    Document and AnalyzePresent Method

    Obtain production requirements.

    Procure engineering data.

    Procure manufacturing and cost data.

    Description and sketches of work

    station and tools.

    Use assembly chart, flow processchart, flow diagram, worker-machine

    activity chart, etc.

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    Design of People System (Henry C. Co) 16

    Assembly Chart (Operation Process Chart)

    Information conveyed

    Purpose of operation Process of manufactureDesign of the part Setup and toolsTolerances and specifications Working conditionsMaterials Plant layout

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    Design of People System (Henry C. Co) 17

    Assembly Chart (Continued)

    Standard symbols:

    Circle (operation)andSquare(inspection)

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    Design of People System (Henry C. Co) 18

    Process Flowchart Symbols

    Operation:

    An activity directly contributing to product or service

    Storage:Store of the product or service

    Inspection:Examining the product or service for completeness,irregularities, or quality

    Transportation:Moving the product or service from one location to another

    Delay:

    Process having to wait

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    Design of People System (Henry C. Co) 19

    FLOW PROCESS CHARTJob Requisition of petty cash

    Details of Method

    ANALYSTD. Kolb PAGE1 of 2

    Requisition made by department headPut in pick-up basket

    To accounting departmentAccount and signature verifiedAmount approved by treasurerAmount counted by cashierAmount recorded by bookkeeper

    Petty cash sealed in envelopePetty cash carried to departmentPetty cash checked against requisitionReceipt signedPetty cash stored in safety box

    Figure 7-2

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    Design of People System (Henry C. Co) 20

    Worker-Machine Chart

    Graphical model of the simultaneous

    activities of a worker and theequipment he/she operates.

    Helps identify idle time and costs of

    both workers and machines. For analyzing alternative worker-

    machine combinations to determinethe most efficient arrangement.

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    Design of People System (Henry C. Co) 21

    1

    2

    3

    4

    5

    6

    7

    8

    9

    Key in customer dataon card

    Feed data card in

    Position customer for photo

    Take picture

    Inspect card & trim edges

    Idle

    Idle

    Idle

    Idle

    Photo/card processed

    Accept card

    Begin photo process

    2.6

    0.4

    1.0

    0.6

    3.4

    1.2

    Job Photo-Id Cards Date 10/14

    Time Time(min) Operator (min) Photo Machine

    Worker-Machine

    Chart

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    Design of People System (Henry C. Co) 22

    Operation Analysis

    Question every detail.

    Why?

    Where?

    What?

    Who? When?

    How?

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    Design of People System (Henry C. Co) 23

    Operation Analysis

    10 Primary Approaches Purpose of the operation. Design of the part.

    Tolerance and specifications.

    Material.

    Process of manufacture.

    Setup and tools.

    Working conditions.

    Material handling.

    Plant layout.

    Principles of motion economy.

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    Design of People System (Henry C. Co) 24

    Principles of Motion Economy

    Both hands should work at the same

    time.

    The hands should work in oppositesymmetrical directions.

    Each hand should go through as fewmotions as possible.

    The work place should be designed toavoid long reaches.

    Avoid using the hand as a holdingdevice.

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    Design of People System (Henry C. Co) 25

    Work Measurement

    Motion study is the systematic study of the human motionsused to perform an operation.

    Work measurement: Measures time requirement to make aproduct

    Time standards: The time required for a trained worker toperform a given task using a prescribed work method withnormal effort and skill.

    Uses of standards

    Uses of standards %

    Estimating and cost 89%

    Incentive compensation plans 59

    Production scheduling 55

    Performance appraisal 41

    Staffing & capacity plans 2

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    Design of People System (Henry C. Co) 26

    Major Methods of Work Measurement

    Type of Task Major MethodsVery short interval, highlyrepetitive

    Film analysis

    Short interval, repetitive Stop watch time study or

    predetermined dataTask in conjunction withmachinery or other fixedprocessing time equipment

    Elemental data or subjectiveestimate

    Infrequent work or work of a loncycle time Work sampling or subjectiveestimate

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    Design of People System (Henry C. Co) 27

    The Critics of Work Measurement

    UPS has 1000 industrial engineers (out of a work

    force of 152,000) set standards for a myriad ofclosely supervised tasks. Productivity and profits arehigh.

    Time study is a dark-ages technique, and itsdehumanizing to track someone around with a

    stopwatch.Vice President, H.B. Maynard & Co.

    UPS runs counter to the drift of many companieswho see (1) Automation (such as Roadway) or (2)Employee Involvement as better ways to higher

    productivity, rather than rigid monitoring at UPS.

    Wall Street Journal

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    Time Study Sheet

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    Design of People System (Henry C. Co) 29

    Elemental Standard Time Data

    Develop tables of performance times

    for operations that are common tomany applications.

    Avoids the need for separate time

    studies.

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    Design of People System (Henry C. Co) 30

    Predetermined Motion-Time Data Systems

    Uses historically developed data for timerequired for basic body movement, elementsof operation, or even an entire operation.

    Very useful in estimating new product cost. Procedure

    Divide total task into elements.

    Rate the difficulty of each element. Look up tables for the time allowed for each

    element. Add all element times together.

    Systems available

    Methods time measurements (MTM). Basic motion time study (BMT). Motion time survey (GE). Work factor.

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    The MTMPredeterminedMotion-TimeData System

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    Design of People System (Henry C. Co) 32

    Work Sampling

    Observing an activity during a fixed duration

    (e.g., a day) at random intervals to estimatethe fraction of time spent directly on somesub-activities of interest

    Applications

    Ratio delay = % idle time Performance measurement

    Time standard

    Experimental approach

    Level of confidence Sample size

    Accuracy of observationsMaximumprobable

    error

    Maximumprobableerror

    Confidence

    level

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    Design of People System (Henry C. Co) 33

    Work Sampling Study

    A work sample is being conducted. the

    observer randomly samples 60 times in aday and notes that a particular element isperformed 12 times.

    Estimate the % of the time that worker

    spend on this element. Calculate the precision of the estimate (at

    95% confidence interval)

    Determine the appropriate sample size

    required for a second set of observations ifthe acceptable numerical error is 0.02.

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    Design of People System (Henry C. Co) 34

    MaslowsHierarchy ofNeeds

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    Design of People System (Henry C. Co) 35

    Compensation Methods

    Some reasons a company might use a

    wage incentive plan Increased pay for employees

    Lower total cost to the company for eachunit produced.

    Many jobs do not lend themselves toan individual incentive plan.

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    Design of People System (Henry C. Co) 36

    Wage Incentive Plans

    Piecework plans.

    Standard hour wage plans. Gain-sharing plans.

    Recommendations for developing and implementingsuccessful wage incentive plans:

    The plan should permit earnings about the base rate;good performance should pay at least a 30% bonus.

    The plan should benefit both the company and theemployees.

    The plan should be simple and understandable.

    The standards should be protected from capricious andindiscriminate rate cutting.

    Earnings should not be affected by factors beyond thecontrol of the worker.

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    Design of People System (Henry C. Co) 37

    Group Incentive Plans

    Direct-wage group.

    Profit-sharing and cost-reduction plans. The Scanlon plan.

    Whenever a plant-s productivity exceeds apreestablished normal level, every employeegets a bonus - the higher the level of productivity,

    the bigger the bonus. The plan also involves a style of management

    designed to give each worker some control overhis or her job by encouraging participation indecision making affecting it.

    Productivity is increased by a well-designedemployee suggestion plan and through the use ofspecial committee that constantly prod employeesfor ideas on how to improve productivity.

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    Design of People System (Henry C. Co) 38

    Lincoln Electric

    The Lincoln Electric Plan

    Average incentive bonus for the last 10years = 11 months- salary.

    Job security: guaranteed minimum of 30hours- pay per week for employees who

    have served the company for 2 years ormore.

    Promotion from within.

    Lincoln Electric

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    Design of People System (Henry C. Co) 39

    Lincoln ElectricDisbursed Ten Year Average

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    Design of People System (Henry C. Co) 40

    Employee Health & Safety

    Several regulations and government

    agencies monitor and control; OSHA - safety and health in the

    workplace. Federal... proactive.

    Workers Compensation - safety andhealth in the workplace. State ....reactive.

    EPA - Environmental protection outside ofthe workplace. Federal... proactive.

    Safety and Health departments inplant.

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    Design of People System (Henry C. Co) 41

    Learning Curves

    Illustrates

    improvement rateof workers as a jobis repeated

    Processing time perunit decreases by a

    constantpercentage eachtime outputdoubles

    Units produced

    Processingtimep

    erunit

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    Design of People System (Henry C. Co) 42

    tn = time required for nth unit produced

    t1 = time required for first unit producedn = cumulative number of units produced

    b = , where ris the learning curve %(decimal coefficient)

    2ln

    ln r

    Time required for the nth unit = tn = t1nb

    where:

    L i C Eff

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    Design of People System (Henry C. Co) 43

    Learning Curve Effect

    Contract to produce 36 computers.

    t1 = 18 hours, learning rate = 80%

    What is time for 9th, 18th, 36th units?

    t9 = (18)(9)ln(0.8)/ln 2 = (18)(9)-0.322

    = (18)/(9)0.322 = (18)(0.493) = 8.874hrs

    t18 = (18)(18)ln(0.8)/ln 2 = (18)(0.394) = 7.092hrs

    t36 = (18)(36)ln(0.8)/ln 2 = (18)(0.315) = 5.674hrs

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    Design of People System (Henry C. Co) 44

    Learning Curve for Mass Production Job

    Standardtime

    End of improvement

    Units produced

    Proces

    singtimeperunit

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    Learning Curves (cont.)

    Advantages

    planning labor planning budget

    determiningschedulingrequirements

    Limitations

    product modificationsnegate learning curveeffect

    improvement can derivefrom sources besideslearning

    industry-derivedlearning curve ratesmay be inappropriate