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Design of Work Systems   CHAPTER SEVEN




               Kit Laserna
OPERATIONS STRATEGY
JOB DESIGN
JOB DESIGN

 The act of specifying the contents of and methods of jobs.

 What? Who? How? Where?

 Ergonomics – Incorporation of human factors in the design of
  the workplace

  (design of equipment, work methods and overall design of
  the work environment)
Factors that Affect Job Design

 Workers and managers consultation

 Managerial support

 Written record establishment


                         Elements

 Efficiency school – systematic and logical

 Behavioral school- satisfaction of wants and needs
SPECIALIZATION

   Work that concentrates on some aspect of product or service
                                     Advantages
For management:                            For labor
1. Simplifies training                     1. Low education and skill requirements

2. High productivity                       2. Minimum responsibilities
3. Low wage cost                           3. Little mental effort
                                   Disadvatanges
1. Difficult                               1. Monotonous work
2. Worker dissatisfaction, possibly        2. Limited opportunities for advancement
resulting in absenteeism, high turnover,   3. Little control over work
disruptive tactics, poor attention to      4. Little opportunity for sel-fulfillment
quality
BEHAVIORAL APPROACHES
           TO JOB DESIGN

 Job Enlargement – Giving a worker a larger position of the
  total task

 Job Rotation – Workers periodically exchange jobs

 Job Enrichment – Increasing responsibility for planning and
  coordination tasks, by vertical loading.



 Increase the motivational power of jobs by increasing worker
  satisfaction through improvement in the quality of work life
MOTIVATION

 Key factor in many aspects of work life

 Influence quality and productivity

 Contributes to the work environment

 Trust – influences motivation, productivity and employee-
  management relations
Why do people work?

 Compensation

 Socialization

 Self-actualization

 Status

 Physiological aspects of work

 Sense of purpose and accomplishment
TEAMS

 Short-term team

 Long-term team
   Self-directed teams (self-managed teams)- designed to achieve
     higher level of teamwork and employee involvement. Althoug
Successful Team Building Requirements
1.   Clearly stated and commonly held vision and goals

2.   Talent and skills required to meet goals

3.   Clear understanding of team members’ roles and functions

4.   Efficient and shared understanding of procedures and norms

5.   Effective and skilled interpersonal relations

6.   A system of reinforcement and celebration

7.   Clear understanding of the team’s relationship to the greater
     organization
METHODS ANALYSIS
METHOD ANALYSIS

 Analyzing how a job is done

 Can be a good source of productivity improvements

 DIFFERENT SOURCES
  1.   Changes in tools and equipment.
  2.   Changes in product design or introduction of new products
  3.   Changes in materials or procedures
  4.   Government regulations or contractual agreements
  5.   Other factors (e.g., accidents, quality problems)
 New job – establish a method

 Existing job – analysts observe and improve
Procedure in Method Analysis

1.   Identify the operation to be studied and gather facts about
     tools, equipment, materials etc.

2.   (existing jobs) job discussion with operator and supervisor
     for input

3.   (existing jobs) Study and document the present method
     using process charts. (new jobs) develop charts based on
     info about activities involved.
Procedure in Method Analysis

1.   Analyze the job

2.   Propose new methods

3.   Install new methods

4.   Follow up implementation to assure that improvements
     have been achieved
Selecting an Operation to Study



 GUIDELINES FOR SELECTING A JOB; Jobs that…
  1.   Have a high labor content
  2.   Are done frequently
  3.   Are unsafe, tiring, unpleasant and/ore noisy
  4.   Are designated as problems
Documenting the Current Method

 Charts, graphs and verbal descriptions of the way job is being
  performed
    Will provide good understanding of the job and serve as a basis
      of comparison against which revisions can be judged.
Analyzing th Job and
Proposing New Methods

 Facilitated by the use of various charts such as;
   flow process charts
   worker-machine charts
Flow Process Charts

 Used to examine the overall sequence of an operation by
  focusing on movements of the operator or flow of materials.

 Helpful in identifying non-productive part of the process

 Used to study the flow od material through a department

 Used to study the sequence that documents or forms take.

 Used in analyzing movement and care of surgical patients

 Layout of department and grocery stores

 Mail handling
1.   Why is there delay or storage at this point?

2.   How can travel distances be shortened or avoided?

3.   Can materials handling be reduced?

4.   Would a rearrangement of the workplace result in greater
     efficiency?

5.   Can similar activities be grouped?

6.   Would the use of additional or improved equipments?
Process Chart Symbols
Flow Process Chart
Worker-machine chart

 Used to determine portions of a work cycle during which an
  operator and equipment are busy or idle.
Installing the Improved Method

 Convinced manager + cooperating workers

NOTE: If the proposed method constitutes a major change
      from the way the job has been performed in the past,
      workers may have to undergo a certain amount of
      retraining and full implementation may take time to
      achieve.
The follow-up



 To ensure that changes has been made

 To ensure that the proposed method is functioning as
  expected
MOTION STUDY

 Systematic study of the human motions used to perform an
  operation.

 Purpose:
   To eliminate unnecessary motions
   To identify the best sequence of motions for maximum
     efficiency.
Motion study techniques


1.   Motion study principles

2.   Analysis of therbligs

3.   Micromotion study

4.   charts
Motion study principles

 Guidelines for designing motion-efficient work procedure



1. Eliminate unnecessary motions

2. Combine Activities

3. Reduce Fatigue

4. Improve the arrangement of the workplace

5. Improve the design of tools and equipment
Therbligs

 Basic elemental motions that make up a job

 NATURE:
   Search- hunting for an item with hands and/or eyes
   Select – means to choose from a group of objects
   Grasp – to take hold of an object
   Hold – retention of an object after being grasp
   Transport load – movement of an object after hold
   Release – deposit the object
Micromotion study




 Use of motion pictures and slow motion to study motions
  that otherwise would be too rapid to analyze.
WORKING CONDITIONS

 Temperature and Humidity

 Ventilation

 Illumination

 Noise and vibrations

 Work Breaks

 Safety
   **Causes of Accidents – carelessness and Accident Hazards
WORK MEASUREMENT
Determining how long it should take to do the job
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 arrangement

 Periodic time studies may be used to update the standards

 The most commonly used method of time elements are;
   Stopwatch time study
   Standard elemental times
   Predetermined time standards
   Work sampling
STOPWATCH TIME STUDY


 Introduced by Frederick Winslow Taylor – late 19th century

 Most widely used method of work instrument

 Especially appropriate for short, repetitive tasks

 Used to develop a time standard based on observations of
   one worker taken over a number of cycles.
Steps in time study


1.   Define the task to be studied, and inform the worker who
     will be studied

2.   Determine the number of cycles to be observe

3.   Time the job, and rate the worker’s performance

4.   Compute the standard time
Number of Cycles Function

1.   Variability of Observed times

2.   Desired Accuracy

3.   Desire Level of Confidence
Formula (sample size needed)

                   Where
                   Z = # of normal standard deviations

               2   (SD) needed for desired confidence


        zs
                   S = sample SD
                   a= Desired accuracy (%)


n
                       = Sample mean
                   x


        ax
Alternative:


                2
                    **when the desired accuracy



           zs
                    is stated as an amount
                    instead of percentage



n                   Where:



           e
                    e = Maximum acceptable error
Example 1

  A time study analyst wants to estimate the time required to
  perform a certain job. A preliminary study yieldes a mean of
  6.4 minutes and a standard deviation of 2.1minutes. The
  desired confidence is 95%. How many observations will he
  need if the desired maximum error is

a. + or – 10% of the sample mean?

b. One-half minute?
Solution

a.   s= 2.1minutes          z= 1.96

     x = 6.4mins            a= 10%
                        2                         2
                   zs             1.96(2.1)
            n                n                        41.36 42
                   ax             0.10(6.4)

                        2                     2
b. e= 0.5          zs            1.96(2.1)
            n                                         67.77 68
                   e                0.5
Development of Time Standard

 Observed Time

 Normal Time

 Standard Time
Observed Time

 Average of recorded times

                              Where:

              xi              OT = Observed time
                               x
                               i  = Sum of recorded times
OT                            n = number or observations

            n
Normal Time

 Observed time adjusted for worker performance

 Computed by multiplying Observed time by performance
  rating

 NT = OT X PR       Where: NT= Normal time

                             PR = Performance rating
Normal Time

 If ratings are made on an element-by-element basis, the
  normal time is obtained by multiplying each element’s
  average time by its performance rating and summing those
  values:

 NT =       xj   PRj
                               Where
                                xj     = Ave time for element j

                                PRj    = Perfomance rating for element j
Standard Time

 Normal time multiplied by an allowance factor (personal,
  unavoidable delays or rest breaks)

ST = NT × AF

Where

  ST = Standard time

  AF = Allowance factor
Allowance factor


AFjob 1 A          = Allowance percentage based on job time




          1
AFday              = Allowance percentage based on
        1 A        workday
Sample Problem


  Compute the allowance factor for these two cases:



a. The allowance is 20 percent of job time

b. The allowance is 20 percent of work time
Solution

A = .20



a. AF = 1 + A = 1.20, or 120%



           1      1
b. AF =         = 1.25, or 125%
          1 A   1 0.20
Typical Allowance Percentage for
         Working Conditions


A. Constant Allowances:


1. Personal allowance            5


2. Basic fatigue allowances      4
B. Variable Allowance

1. Standing Allowance                                      2
2. Abnormal Position Allowance
   a. Slightly awkward…………………………………………………………………            0
   b. Awkward (bending) …………………………………………………………….           2
   c. Very awkward (lying, stretching) ……………………………………………   7



3. Use of force or muscular energy: Weight lifted (lbs)
   5………………………………………………………………………………………….                    0
   10………………………………………………………………………………………..                    1
   15………………………………………………………………………………………..                   2
   20………………………………………………………………………………………..                   3
   25………………………………………………………………………………………..                   4
   30………………………………………………………………………………………..                   5
   35………………………………………………………………………………………..                    7
   40………………………………………………………………………………………..                   9
   45………………………………………………………………………………………..                   11
   50……………………………………………………………………………………….                    13
4. Bad light
   a. Slightly below recommended           0
   b. Well below                           2
   c. Very inadequate                      5
5. Atmospheric conditions
   (heat and humidity)- variable          0-10
6. Close attention:
   a. Fairly fine work                     0
   b. Fine or extracting                   2
   c. Very fine or very extracting         5
7. Noise level
   a. continuous
                                           0
   b. intermittent – loud
                                           2
   c. intermittent – very loud
                                           5
   d. High-pitched- loud
                                           5

8. Mental strain:
   a. Fairly complex process               1
   b. Complex or wide span of attention    4
   c. Very complex                         8
9. Monotony:
   a. low
                       0
   b. Medium
                       1
   c. High
                       4


10. Trediousness:
  a. Rather tredious   0
  b. Tredious          2
  c. Very tredious     5
Sample Problem
A time study of an assembly operation yielded the following observed times for
one element of the job, for which the analyst gave a performance rating of 1.13
    Using an allowance of 20 percent of job time, determine the appropriate
                        standard time for this operation.

         i               Time, x                i                   Time, x
    Observation         (minutes)          observation             (minutes
1                          1.12                  6                   1.18
2                          1.15                  7                   1.14
3                          1.16                  8                   1.14
4                          1.12                  9                   1.19
5                          1.15                Total                10.35


                                            N=9        PR = 1.13   A = 0.20
Solution

OT =    xi   10.35
                   = 1.15 minutes
       n       9

NT =   OT × PR = 1.15 (1.13) = 1.30minutes



ST =   NT × (1 + A) = 1.30(1.20) = 1.56 minutes
STANDARD ELEMENTAL TIME

 Derived from a firm’s own historical time study data

 Procedure for using Standard Elemental times
   1.   Analyze the job to identify the standard elements
   2.   Check the file for elements that have historical times, and
        record them. Use time study to obtain others, if necessary
   3.   Modify the file times of necessary
   4.   Sum the elemental times to obtain the normal time, and factor
        in allowances to obtain the standard time.
Advantages and Disadvantages

         Advantages                         Disadvantages
1.   Potential savings in cost and   1.   Times may not exist for
     effort                               enough standard elements
                                          to make it worthwhile
2.   Less disruption of work
                                     2.   File times ma be biased or
3.   Performance ratings do not           inaccurate
     have to be done
PREDETERMINED TIME
              STANDARDS

 Published data based on extensive research to determine
  standard elemental times.

 Methods-time measurement
   Commonly used system
   MTM tables are based on extensive research of basic elemental
     motions and times
Advantages


1.   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.   Standards can be established even before a job is done.
WORK SAMPLING

 Technique for estimating the proportion of time that a
  worker or machine spends on various activities and the idle
  time.

 Does not require timing an activity NOR involve continuous
  observation of the activity

 Observer makes brief observations of a worker or machine at
  a random intervals

 Primary uses
  1.   ratio-delay studies
  2.   Analysis of non-repetitive jobs
COMPENSATION
Two Basic Systems for
Compensating Employees
Time-based system

    Compensate employees for the time the employee has worked
     during a pay period


                        Management                  Worker
ADVANTAGES       1. Stable labor cost       1. Stable pay
                 2. Easy to administer      2. Less pressure to
                                            produce than under
                                            output system
                 3. Simple to compute pay
                 4. Stable Output
DISADVANTAGES 1.. No incentive to workers   1. Extra efforts not
              to increase output            rewarded
Output-based

      According to the amount of output they produce during a pay
        period

      Tying pay directly to performance
                           Management                                   Worker
ADVANTAGE        1. Lower cost per unit             1. Pay related to efforts
                 2. Greater output                  2. Opportunity to earn more
DISADVANTAGES    1. Wage computation more           1. Pay related to efforts
                 difficult
                 2.Need to measure output           2. Workers may be penalized because of
                                                    factors beyond their control
                 3. Quality may suffer
                 4. Difficult to incorporate wage
                 increase
                 5. Increase problems with
                 scheduling
 Accurate

 Easy to Apply

 Consistent

 Easy to understand

 Fair
INDIVIDUAL INCENTIVE PLANS

 Straight piecework-worker’s pay is direct linear function of his
   or her output

 Protects the worker from pay loss due to delays, breakdowns
   and similar probems
GROUP INCENTIVE PLANS

 Team approach

 Some exclusively focus on output, while others reward
  employees for output and for reductions in material and
  other costs
KNOWLEDGE-BASED PAY
             SYSTEMS

 A pay system used by organizations to reward workers who
  undergo training that increase their skills

 Three dimensions:
   Horizontal skills – reflect the variety of tasks the worker is
    capable of performing
   Vertical skills – reflect managerial tasks the worker is capable of
   Depth skills – reflect quality and productivity results
MANAGEMENT COMPENSATION

 Tied to the success of the company or division that executive
  is responsible for

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Design of Work Systems

  • 1. Design of Work Systems CHAPTER SEVEN Kit Laserna
  • 4. JOB DESIGN  The act of specifying the contents of and methods of jobs.  What? Who? How? Where?  Ergonomics – Incorporation of human factors in the design of the workplace (design of equipment, work methods and overall design of the work environment)
  • 5. Factors that Affect Job Design  Workers and managers consultation  Managerial support  Written record establishment Elements  Efficiency school – systematic and logical  Behavioral school- satisfaction of wants and needs
  • 6. SPECIALIZATION  Work that concentrates on some aspect of product or service Advantages For management: For labor 1. Simplifies training 1. Low education and skill requirements 2. High productivity 2. Minimum responsibilities 3. Low wage cost 3. Little mental effort Disadvatanges 1. Difficult 1. Monotonous work 2. Worker dissatisfaction, possibly 2. Limited opportunities for advancement resulting in absenteeism, high turnover, 3. Little control over work disruptive tactics, poor attention to 4. Little opportunity for sel-fulfillment quality
  • 7. BEHAVIORAL APPROACHES TO JOB DESIGN  Job Enlargement – Giving a worker a larger position of the total task  Job Rotation – Workers periodically exchange jobs  Job Enrichment – Increasing responsibility for planning and coordination tasks, by vertical loading.  Increase the motivational power of jobs by increasing worker satisfaction through improvement in the quality of work life
  • 8. MOTIVATION  Key factor in many aspects of work life  Influence quality and productivity  Contributes to the work environment  Trust – influences motivation, productivity and employee- management relations
  • 9. Why do people work?  Compensation  Socialization  Self-actualization  Status  Physiological aspects of work  Sense of purpose and accomplishment
  • 10. TEAMS  Short-term team  Long-term team  Self-directed teams (self-managed teams)- designed to achieve higher level of teamwork and employee involvement. Althoug
  • 11. Successful Team Building Requirements 1. Clearly stated and commonly held vision and goals 2. Talent and skills required to meet goals 3. Clear understanding of team members’ roles and functions 4. Efficient and shared understanding of procedures and norms 5. Effective and skilled interpersonal relations 6. A system of reinforcement and celebration 7. Clear understanding of the team’s relationship to the greater organization
  • 13. METHOD ANALYSIS  Analyzing how a job is done  Can be a good source of productivity improvements  DIFFERENT SOURCES 1. Changes in tools and equipment. 2. Changes in product design or introduction of new products 3. Changes in materials or procedures 4. Government regulations or contractual agreements 5. Other factors (e.g., accidents, quality problems)
  • 14.  New job – establish a method  Existing job – analysts observe and improve
  • 15. Procedure in Method Analysis 1. Identify the operation to be studied and gather facts about tools, equipment, materials etc. 2. (existing jobs) job discussion with operator and supervisor for input 3. (existing jobs) Study and document the present method using process charts. (new jobs) develop charts based on info about activities involved.
  • 16. Procedure in Method Analysis 1. Analyze the job 2. Propose new methods 3. Install new methods 4. Follow up implementation to assure that improvements have been achieved
  • 17. Selecting an Operation to Study  GUIDELINES FOR SELECTING A JOB; Jobs that… 1. Have a high labor content 2. Are done frequently 3. Are unsafe, tiring, unpleasant and/ore noisy 4. Are designated as problems
  • 18. Documenting the Current Method  Charts, graphs and verbal descriptions of the way job is being performed  Will provide good understanding of the job and serve as a basis of comparison against which revisions can be judged.
  • 19. Analyzing th Job and Proposing New Methods  Facilitated by the use of various charts such as;  flow process charts  worker-machine charts
  • 20. Flow Process Charts  Used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials.  Helpful in identifying non-productive part of the process  Used to study the flow od material through a department  Used to study the sequence that documents or forms take.  Used in analyzing movement and care of surgical patients  Layout of department and grocery stores  Mail handling
  • 21. 1. Why is there delay or storage at this point? 2. How can travel distances be shortened or avoided? 3. Can materials handling be reduced? 4. Would a rearrangement of the workplace result in greater efficiency? 5. Can similar activities be grouped? 6. Would the use of additional or improved equipments?
  • 24. Worker-machine chart  Used to determine portions of a work cycle during which an operator and equipment are busy or idle.
  • 25.
  • 26. Installing the Improved Method  Convinced manager + cooperating workers NOTE: If the proposed method constitutes a major change from the way the job has been performed in the past, workers may have to undergo a certain amount of retraining and full implementation may take time to achieve.
  • 27. The follow-up  To ensure that changes has been made  To ensure that the proposed method is functioning as expected
  • 28. MOTION STUDY  Systematic study of the human motions used to perform an operation.  Purpose:  To eliminate unnecessary motions  To identify the best sequence of motions for maximum efficiency.
  • 29. Motion study techniques 1. Motion study principles 2. Analysis of therbligs 3. Micromotion study 4. charts
  • 30. Motion study principles  Guidelines for designing motion-efficient work procedure 1. Eliminate unnecessary motions 2. Combine Activities 3. Reduce Fatigue 4. Improve the arrangement of the workplace 5. Improve the design of tools and equipment
  • 31. Therbligs  Basic elemental motions that make up a job  NATURE:  Search- hunting for an item with hands and/or eyes  Select – means to choose from a group of objects  Grasp – to take hold of an object  Hold – retention of an object after being grasp  Transport load – movement of an object after hold  Release – deposit the object
  • 32. Micromotion study  Use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze.
  • 33. WORKING CONDITIONS  Temperature and Humidity  Ventilation  Illumination  Noise and vibrations  Work Breaks  Safety  **Causes of Accidents – carelessness and Accident Hazards
  • 34. WORK MEASUREMENT Determining how long it should take to do the job
  • 35. 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 arrangement  Periodic time studies may be used to update the standards  The most commonly used method of time elements are;  Stopwatch time study  Standard elemental times  Predetermined time standards  Work sampling
  • 36. STOPWATCH TIME STUDY  Introduced by Frederick Winslow Taylor – late 19th century  Most widely used method of work instrument  Especially appropriate for short, repetitive tasks  Used to develop a time standard based on observations of one worker taken over a number of cycles.
  • 37. Steps in time study 1. Define the task to be studied, and inform the worker who will be studied 2. Determine the number of cycles to be observe 3. Time the job, and rate the worker’s performance 4. Compute the standard time
  • 38. Number of Cycles Function 1. Variability of Observed times 2. Desired Accuracy 3. Desire Level of Confidence
  • 39. Formula (sample size needed) Where Z = # of normal standard deviations 2 (SD) needed for desired confidence zs S = sample SD a= Desired accuracy (%) n = Sample mean x ax
  • 40. Alternative: 2 **when the desired accuracy zs is stated as an amount instead of percentage n Where: e e = Maximum acceptable error
  • 41. Example 1 A time study analyst wants to estimate the time required to perform a certain job. A preliminary study yieldes a mean of 6.4 minutes and a standard deviation of 2.1minutes. The desired confidence is 95%. How many observations will he need if the desired maximum error is a. + or – 10% of the sample mean? b. One-half minute?
  • 42. Solution a. s= 2.1minutes z= 1.96 x = 6.4mins a= 10% 2 2 zs 1.96(2.1) n n 41.36 42 ax 0.10(6.4) 2 2 b. e= 0.5 zs 1.96(2.1) n 67.77 68 e 0.5
  • 43. Development of Time Standard  Observed Time  Normal Time  Standard Time
  • 44. Observed Time  Average of recorded times Where: xi OT = Observed time x i = Sum of recorded times OT n = number or observations n
  • 45. Normal Time  Observed time adjusted for worker performance  Computed by multiplying Observed time by performance rating  NT = OT X PR Where: NT= Normal time PR = Performance rating
  • 46. Normal Time  If ratings are made on an element-by-element basis, the normal time is obtained by multiplying each element’s average time by its performance rating and summing those values:  NT = xj PRj Where xj = Ave time for element j PRj = Perfomance rating for element j
  • 47. Standard Time  Normal time multiplied by an allowance factor (personal, unavoidable delays or rest breaks) ST = NT × AF Where ST = Standard time AF = Allowance factor
  • 48. Allowance factor AFjob 1 A = Allowance percentage based on job time 1 AFday = Allowance percentage based on 1 A workday
  • 49. Sample Problem Compute the allowance factor for these two cases: a. The allowance is 20 percent of job time b. The allowance is 20 percent of work time
  • 50. Solution A = .20 a. AF = 1 + A = 1.20, or 120% 1 1 b. AF = = 1.25, or 125% 1 A 1 0.20
  • 51. Typical Allowance Percentage for Working Conditions A. Constant Allowances: 1. Personal allowance 5 2. Basic fatigue allowances 4
  • 52. B. Variable Allowance 1. Standing Allowance 2 2. Abnormal Position Allowance a. Slightly awkward………………………………………………………………… 0 b. Awkward (bending) ……………………………………………………………. 2 c. Very awkward (lying, stretching) …………………………………………… 7 3. Use of force or muscular energy: Weight lifted (lbs) 5…………………………………………………………………………………………. 0 10……………………………………………………………………………………….. 1 15……………………………………………………………………………………….. 2 20……………………………………………………………………………………….. 3 25……………………………………………………………………………………….. 4 30……………………………………………………………………………………….. 5 35……………………………………………………………………………………….. 7 40……………………………………………………………………………………….. 9 45……………………………………………………………………………………….. 11 50………………………………………………………………………………………. 13
  • 53. 4. Bad light a. Slightly below recommended 0 b. Well below 2 c. Very inadequate 5 5. Atmospheric conditions (heat and humidity)- variable 0-10 6. Close attention: a. Fairly fine work 0 b. Fine or extracting 2 c. Very fine or very extracting 5 7. Noise level a. continuous 0 b. intermittent – loud 2 c. intermittent – very loud 5 d. High-pitched- loud 5 8. Mental strain: a. Fairly complex process 1 b. Complex or wide span of attention 4 c. Very complex 8
  • 54. 9. Monotony: a. low 0 b. Medium 1 c. High 4 10. Trediousness: a. Rather tredious 0 b. Tredious 2 c. Very tredious 5
  • 55. Sample Problem A time study of an assembly operation yielded the following observed times for one element of the job, for which the analyst gave a performance rating of 1.13 Using an allowance of 20 percent of job time, determine the appropriate standard time for this operation. i Time, x i Time, x Observation (minutes) observation (minutes 1 1.12 6 1.18 2 1.15 7 1.14 3 1.16 8 1.14 4 1.12 9 1.19 5 1.15 Total 10.35 N=9 PR = 1.13 A = 0.20
  • 56. Solution OT = xi 10.35 = 1.15 minutes n 9 NT = OT × PR = 1.15 (1.13) = 1.30minutes ST = NT × (1 + A) = 1.30(1.20) = 1.56 minutes
  • 57. STANDARD ELEMENTAL TIME  Derived from a firm’s own historical time study data  Procedure for using Standard Elemental times 1. Analyze the job to identify the standard elements 2. Check the file for elements that have historical times, and record them. Use time study to obtain others, if necessary 3. Modify the file times of necessary 4. Sum the elemental times to obtain the normal time, and factor in allowances to obtain the standard time.
  • 58. Advantages and Disadvantages Advantages Disadvantages 1. Potential savings in cost and 1. Times may not exist for effort enough standard elements to make it worthwhile 2. Less disruption of work 2. File times ma be biased or 3. Performance ratings do not inaccurate have to be done
  • 59. PREDETERMINED TIME STANDARDS  Published data based on extensive research to determine standard elemental times.  Methods-time measurement  Commonly used system  MTM tables are based on extensive research of basic elemental motions and times
  • 60. Advantages 1. 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. Standards can be established even before a job is done.
  • 61. WORK SAMPLING  Technique for estimating the proportion of time that a worker or machine spends on various activities and the idle time.  Does not require timing an activity NOR involve continuous observation of the activity  Observer makes brief observations of a worker or machine at a random intervals  Primary uses 1. ratio-delay studies 2. Analysis of non-repetitive jobs
  • 63. Two Basic Systems for Compensating Employees
  • 64. Time-based system  Compensate employees for the time the employee has worked during a pay period Management Worker ADVANTAGES 1. Stable labor cost 1. Stable pay 2. Easy to administer 2. Less pressure to produce than under output system 3. Simple to compute pay 4. Stable Output DISADVANTAGES 1.. No incentive to workers 1. Extra efforts not to increase output rewarded
  • 65. Output-based  According to the amount of output they produce during a pay period  Tying pay directly to performance Management Worker ADVANTAGE 1. Lower cost per unit 1. Pay related to efforts 2. Greater output 2. Opportunity to earn more DISADVANTAGES 1. Wage computation more 1. Pay related to efforts difficult 2.Need to measure output 2. Workers may be penalized because of factors beyond their control 3. Quality may suffer 4. Difficult to incorporate wage increase 5. Increase problems with scheduling
  • 66.  Accurate  Easy to Apply  Consistent  Easy to understand  Fair
  • 67. INDIVIDUAL INCENTIVE PLANS  Straight piecework-worker’s pay is direct linear function of his or her output  Protects the worker from pay loss due to delays, breakdowns and similar probems
  • 68. GROUP INCENTIVE PLANS  Team approach  Some exclusively focus on output, while others reward employees for output and for reductions in material and other costs
  • 69. KNOWLEDGE-BASED PAY SYSTEMS  A pay system used by organizations to reward workers who undergo training that increase their skills  Three dimensions:  Horizontal skills – reflect the variety of tasks the worker is capable of performing  Vertical skills – reflect managerial tasks the worker is capable of  Depth skills – reflect quality and productivity results
  • 70. MANAGEMENT COMPENSATION  Tied to the success of the company or division that executive is responsible for

Editor's Notes

  1. Allowances can be based on either job time or time worked.