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2011 Pearson
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Outline
Global Company Profile: Rusty
Wallaces NASCAR Racing Team
Human Resource Strategy for
Competitive Advantage
Constraints on Human Resource Strategy
Labor Planning
Employment-Stability Policies
Work Schedules
Job Classifications and Work Rules
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Outline Continued
Job Design
Labor Specialization
Job Expansion
Psychological Components of Job
Design
Self-Directed Teams
Motivation and Incentive Systems
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Outline Continued
Methods Analysis
The Visual Workplace
Labor Standards
Historical Experience
Time Studies
Predetermined Time Standards
Work Sampling
Ethics
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Learning Objectives
When you complete this chapter you
should be able to:
1. Describe labor planning policies
2. Identify the major issues in job design
3. Identify major ergonomic and work
environment issues
4. Use the tools of methods analysis
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Learning Objectives
When you complete this chapter you
should be able to:
5. Identify four ways of establishing
labor standards
6. Compute the normal and standard
times in a time study
7. Find the proper sample size for a time
study
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Process strategy
Technology
Machinery and
equipment used
Safety
Individual differences
Who Strength and
fatigue
Information
processing and
response
HUMAN
RESOURCE
STRATEGY
ow
H
Location strategy
Climate
Temperature
Noise
Light
Air quality
When
re
Schedules
Time of day
Time of year
(seasonal)
Stability of
schedules
W
ha
t
W
he
Product strategy
Skills needed
Talents needed
Materials used
Safety
Pr
oc
ed
ur
e
Constraints on Human
Resource Strategy
Figure 10.1
Layout strategy
Fixed position
Process
Assembly line
Work cell
Product
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Labor Planning
Employment Stability Policies
1. Follow demand exactly
Matches direct labor costs to
production
Incurs costs in hiring and
termination, unemployment
insurance, and premium wages
Labor is treated as a variable cost
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Labor Planning
Employment Stability Policies
2. Hold employment constant
Maintains trained workforce
Minimizes hiring, termination, and
unemployment costs
Employees may be underutilized
during slack periods
Labor is treated as a fixed cost
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Work Schedules
Standard work schedule
Five eight-hour days
Flex-time
Allows employees, within limits, to
determine their own schedules
Part-time
Fewer, possibly irregular, hours
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Job Design
Specifying the tasks that
constitute a job for an individual
or a group
1. Job specialization
2. Job expansion
3. Psychological components
4. Self-directed teams
5. Motivation and incentive systems
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Labor Specialization
The division of labor into unique tasks
First suggested by Adam Smith in 1776
1. Development of dexterity
2. Less loss of time
3. Development of specialized tools
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Job Expansion
Adding more variety to jobs
Intended to reduce boredom
associated with labor specialization
Job enlargement
Job rotation
Job enrichment
Employee empowerment
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Job Enlargement
Enriched job
Planning
(Participate in a crossfunction quality
improvement team)
Enlarged job
Task #3
(Lock printed circuit
board into fixture for
next operation)
Present job
(Manually insert and
solder six resistors)
Task #2
(Adhere labels
to printed
circuit board)
Control
(Test circuits after
assembly)
Figure 10.2
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Psychological Components
of Job Design
Human resource strategy requires
consideration of the psychological
components
of job design
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Hawthorne Studies
They studied light levels, but discovered
productivity improvement was
independent from lighting levels
Introduced psychology into the workplace
The workplace social system and distinct
roles played by individuals may be more
important than physical factors
Individual differences may be dominant in
job expectation and contribution
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Self-direction
Empowerment
Enrichment
Enlargement
Specialization
Job expansion
Figure 10.3
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Self-Directed Teams
Group of empowered individuals
working together to reach a
common goal
May be organized for long-term or
short-term objectives
Effective because
Provide employee empowerment
Ensure core job characteristics
Meet individual psychological needs
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Self-Directed Teams
To maximize effectiveness, managers should
Ensure those who have legitimate
contributions are on the team
Provide management support
Ensure the necessary training
Endorse clear objectives and goals
Financial and non-financial rewards
Supervisors must release control
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Limitations of Job
Expansion
1. Higher capital cost
2. Individuals may prefer simple jobs
3. Higher wages rates for greater skills
4. Smaller labor pool
5. Higher training costs
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Limitations of Job
Expansion
1. Higher capital cost
2. Individuals may prefer simple
jobs
n
A nual
Average
rs/
ining Hou
3. Higher wages rates for
skills
Tragreater
Employee
4. Smaller labor pool
7
U.S.
5. Higher training costs eden
170
Sw
200
Japan
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Operator input
to machines
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Recommended Levels of
Illumination
Figure 10.4A
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Levels of Illumination
Task Condition
Type of Task
or Area
Illumination
Level
Type of
Illumination
Small detail,
extreme
accuracy
Sewing, inspecting
dark materials
100
Overhead
ceiling lights
and desk lamp
Normal detail,
prolonged
periods
Reading, parts
assembly,
general office
work
20-50
Overhead
ceiling lights
Good contrast,
fairly large
objects
Recreational
facilities
5-10
Overhead
ceiling lights
Large objects
Restaurants,
stairways,
warehouses
2-5
Overhead
ceiling lights
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Decibel Levels
Table 10.4B
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Methods Analysis
Focuses on how task is performed
Used to analyze
1. Movement of individuals or material
Flow diagrams and process charts
3. Body movement
Operations charts
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Flow Diagram
Welding
From
press
mach.
Storage bins
Mach. 3
Mach. 4
Paint
shop
Machine 1
Mach. 2
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Flow Diagram
Welding
Machine 4
Machine 3
Paint
shop
Machine 2
Machine 1
From
press
mach.
Storage
bins
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Process
Chart
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Activity Chart
Figure 10.6
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Operation Chart
Figure 10.7
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A 3-minute service
clock reminds employees
of the goal
Figure 10.8
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Line/machine
stoppage
Parts/
maintenance
needed
All systems go
Part A
Part B
Part C
Andon
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Figure 10.8
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Labor Standards
Effective manpower planning is
dependent on a knowledge of the
labor required
Labor standards are the amount
of time required to perform a job
or part of a job
Accurate labor standards help
determine labor requirements,
costs, and fair work
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Labor Standards
Started early in the 20th century
Important to both manufacturing
and service organizations
Necessary for determining
staffing requirements
Important to labor incentive
systems
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Labor Standards
May be set in four ways:
1. Historical experience
2. Time studies
3. Predetermined time standards
4. Work sampling
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Historical Experience
How the task was performed last
time
Easy and inexpensive
Data available from production
records or time cards
Data is not objective and may be
inaccurate
Not recommended
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Time Studies
Involves timing a sample of a
workers performance and using
it to set a standard
Requires trained and experienced
observers
Cannot be set before the work is
performed
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Time Studies
1. Define the task to be studied
2. Divide the task into precise
elements
3. Decide how many times to
measure the task
4. Time and record element times and
rating of performance
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Time Studies
5. Compute average observed time
Average
observed
time
x Performance
rating factor
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Time Studies
7. Add the normal times for each
element to develop the total normal
time for the task
8. Compute the standard time
Total normal time
Standard time =
1 - Allowance factor
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Rest Allowances
Personal time allowance
4% - 7% of total time for use of
restroom, water fountain, etc.
Delay allowance
Based upon actual delays that occur
Fatigue allowance
Based on our knowledge of human
energy expenditure
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Rest Allowances
1. Constant allowance
(A) Personal allowance ...
(B) Basic fatigue allowance
2. Variable allowances:
(A) Standing allowance
(B) Abnormal position
(i) Awkward (bending)
(ii) Very awkward (lying,
stretching)
5
4
2
2
7
Table 10.1
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Rest Allowances
(C) Use of force or muscular energy in
lifting, pulling, pushing
Weight lifted (pounds)
20 3
40. 9
60. 17
(D) Bad light:
(i) Well below recommended. 2
(ii) Quite inadequate. 5
Figure 10.1
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Rest Allowances
(E) Atmospheric conditions
(heat and humidity) 0-10
(F) Close attention:
(i) Fine or exacting.. 2
(ii) Very fine or very exacting 5
(G) Noise level:
(i) Intermittentloud.. 2
(ii) Intermittentvery loud
or high-pitched... 5
Figure 10.1
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Rest Allowances
(H) Mental strain:
(i) Complex or wide span
of attention...
(ii) Very complex..
(I) Tediousness:
(i) Tedious..
(ii) Very tedious.
4
8
2
5
Figure 10.1
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Performance
Rating
Job Element
10
21*
11
120%
105%
5*
110%
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15.36
=
= 18.07 minutes
1 - .15
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h
=
accuracy level (acceptable
error) desired in percent of the job
element expressed as a decimal
z
=
number of standard
deviations required for the desired level
of confidence
s
=
standard deviation of the
initial sample
x
=
mean of the initial sample
n
=
required sample size
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Desired
z Value
Confidence
(standard deviation required for
(%)
h
=
accuracy
level
(acceptable
desired
level of
confidence)
1.96 x 1.0
n=
.05 x 3
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= 170.74 171
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(xi - x)2
n-1
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New Tools
With PDA software, you can study
elements, time, performance rate, and
statistical confidence intervals can be
created,
edited,
managed,
and logged
Reduces or
eliminates
the need
for data entry
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Predetermined Time
Standards
Divide manual work into small basic
elements that have established times
Can be done in a laboratory away from
the actual production operation
Can be set before
the work is actually
performed
No performance
ratings are necessary
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MTM Table
Figure 10.9
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MTM Example
Weight - less than 2 pounds
Conditions of GET - easy
Place accuracy - approximate
Distance range - 8 to 20 inches
Element Description
Element
Time
AA2
35
AA2
35
AD2
45
PT
83
PC2
40
Pour (3 seconds)
Place tubes in rack (simo)
Total TMU
238
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Work Sampling
Estimates percent of time a worker
spends on various tasks
Requires random observations to
record worker activity
Determines how employees allocate
their time
Can be used to set staffing levels,
reassign duties, estimate costs, and
set delay allowances
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Work Sampling
1. Take a preliminary sample to obtain
estimates of parameter values
2. Compute the sample size required
3. Prepare a schedule for random
observations at appropriate times
4. Observe and record worker
activities
5. Determine how workers spend their
time
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Work Sampling
Determining the sample size
z2 p(1 - p)
n=
h2
where
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n =
required sample size
z =
standard normal deviate
for desired confidence level
p =
estimated value of
sample proportion
h =
acceptable error level in
percent
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n=
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n
=
z
=
level
p
=
= 25% = .25
2
(2) (.25)(.75)
h
=
=
03 2
(.03)
833 observations
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Activity
485
126
Idle
62
Personal time
23
137
833
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Telephone
sales
12%
Telephone
within firm
13%
Sales in Travel
person
20%
20%
Paperwork
17%
Lunch and
personal
10%
Meetings
and other
8%
Figure 10.10
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Assembly-Line
Employees
Unscheduled tasks
and downtime
4%
Cleanup
3%
Figure 10.10
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Work Sampling
Advantages of work sampling
Less expensive than time study
Observers need little training
Studies can be delayed or interrupted
with little impact on results
Worker has little
chance to affect
results
Less intrusive
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Work Sampling
Disadvantages of work sampling
Does not divide work elements as
completely as time study
Can yield biased results if observer
does not follow random pattern
Less accurate, especially when
job element times are short
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Printed in the United States of America.
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