7-1

McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

Chapter 7

Design of Work Systems

7-2

McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

Design of Work Systems

• Specialization

• Behavioral Approaches to Job Design

• Teams

• Methods Analysis

• Motions Study

• Working conditions

7-4

McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

Specialization in Business: Advantages

For Management:

1. Simplifies training

2. High productivity

3. Low wage costs

For Labor:

1. Low education andskill requirements

2. Minimumresponsibilities

3. Little mental effortneeded

7-6

McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

Disadvantages

For Management:

1. Difficult to motivatequality

2. Worker dissatisfaction,possibly resulting inabsenteeism, highturnover, disruptivetactics, poor attentionto quality

For Labor:1. Monotonous work

2. Limited opportunitiesfor advancement

3. Little control over work

4. Little opportunity forself-fulfillment

7-7

McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

Methods Analysis

• Changes in tools and equipment

• Changes in product designor 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

FLOW PROCESS CHARTJob Requisition of petty cash

Details of Method

ANALYST D. Kolb

PAGE1 of 2

Op

erat

ion

M

ove

men

t

Insp

ecti

on

Del

ay

Sto

rag

e

Requisition made by department headPut in “pick-up” basketTo accounting departmentAccount and signature verifiedAmount approved by treasurerAmount counted by cashierAmount recorded by bookkeeperPetty cash sealed in envelopePetty cash carried to departmentPetty cash checked against requisitionReceipt signedPetty cash stored in safety box

Figure 7-2

7-10

McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

Working Conditions

T e m p e r a t u r e &H u m i d i t y

V e n t i l a t i o n

I l l u m i n a t i o n C o l o r

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McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Design of Work Systems

Working Conditions (cont’d)

Noise & Vibration

Causes of AccidentsSafety

Work Breaks

7-15

McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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

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McGraw-Hill/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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/IrwinOperations Management, Seventh Edition, by William J. StevensonCopyright © 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