1 © 2010 nkumbwa™. all rights reserved. job design, work measurement and labor standards eng. r....

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1 © 2010 Nkumbwa™. All Rights Reserved. Job Design, Work Measurement Job Design, Work Measurement and Labor Standards and Labor Standards Eng. R. L. Nkumbwa™ Eng. R. L. Nkumbwa™ www.nkumbwa.weebly.com www.nkumbwa.weebly.com

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1© 2010 Nkumbwa™. All Rights Reserved.

Job Design, Work MeasurementJob Design, Work Measurementand Labor Standardsand Labor Standards

Eng. R. L. Nkumbwa™Eng. R. L. Nkumbwa™www.nkumbwa.weebly.comwww.nkumbwa.weebly.com

2© 2010 Nkumbwa™. All Rights Reserved.

OutlineOutline

Job DesignJob Design Job specializationJob specialization Job expansionJob expansion Psychological componentsPsychological components Self-directed teamsSelf-directed teams Motivation and incentive systemsMotivation and incentive systems Ergonomics and work methodsErgonomics and work methods

Work MeasurementWork Measurement Time StudiesTime Studies Work SamplingWork Sampling

Labor StandardsLabor Standards

3© 2010 Nkumbwa™. All Rights Reserved.

Job DesignJob Design

Specifying the tasks that make up Specifying the tasks that make up a job for an individual or groupa job for an individual or group

Involves determiningInvolves determining What is to be done (i.e., responses)What is to be done (i.e., responses) How it is to be done (i.e., tools etc.)How it is to be done (i.e., tools etc.) Why it is to be done (i.e., purpose)Why it is to be done (i.e., purpose)

Results in job descriptionResults in job description Shows nature of job in task-related behaviorsShows nature of job in task-related behaviors

4© 2010 Nkumbwa™. All Rights Reserved.

Job Classifications andJob Classifications and Work Rules Work Rules

SpecifySpecify who can do whatwho can do what when they can do itwhen they can do it under what conditions they can do it under what conditions they can do it

Occasionally the result of union pressureOccasionally the result of union pressure Restricts flexibility in assignments; consequently Restricts flexibility in assignments; consequently

restricts efficiency of productionrestricts efficiency of production

5© 2010 Nkumbwa™. All Rights Reserved.

Work SchedulesWork Schedules

Standard work scheduleStandard work schedule five eight-hour daysfive eight-hour days

Flex-timeFlex-time allows employees, within prescribed limits, to allows employees, within prescribed limits, to

determine their own schedulesdetermine their own schedules Flexible work weekFlexible work week

four 10-hour daysfour 10-hour days Part-timePart-time

less than eight hours per day, or an irregular less than eight hours per day, or an irregular scheduleschedule

6© 2010 Nkumbwa™. All Rights Reserved.

Components of Job DesignComponents of Job Design

Job specializationJob specialization Job expansionJob expansion Psychological componentsPsychological components Self-directed teamsSelf-directed teams Motivation and incentive systemsMotivation and incentive systems Ergonomics and work methodsErgonomics and work methods

7© 2010 Nkumbwa™. All Rights Reserved.

Job SpecializationJob Specialization

InvolvesInvolves Breaking jobs into small component parts Breaking jobs into small component parts Assigning specialists to do each partAssigning specialists to do each part

First noted by Adam Smith (1776)First noted by Adam Smith (1776) Observed how workers in pin factory divided Observed how workers in pin factory divided

tasks into smaller componentstasks into smaller components Found in manufacturing & Found in manufacturing &

service industriesservice industries

8© 2010 Nkumbwa™. All Rights Reserved.

Greater dexterity & faster learningGreater dexterity & faster learning Less lost time changing jobs or toolsLess lost time changing jobs or tools Use of more specialized toolsUse of more specialized tools Pay only for needed skillsPay only for needed skills

Job Specialization Often Reduces CostJob Specialization Often Reduces Cost

9© 2010 Nkumbwa™. All Rights Reserved.

Job ExpansionJob Expansion

Process of adding more variety to jobsProcess of adding more variety to jobs Intended to reduce boredom associated with labor Intended to reduce boredom associated with labor

specializationspecialization MethodsMethods

Job enlargementJob enlargement Job enrichmentJob enrichment Job rotationJob rotation Employee empowermentEmployee empowerment

10© 2010 Nkumbwa™. All Rights Reserved.

Job RotationJob Rotation

Geriatrics© 1995 Corel Corp.

Pediatrics

© 1995 Corel Corp.

Maternity

© 1995 Corel Corp.

11© 2010 Nkumbwa™. All Rights Reserved.

Employee EmpowermentEmployee Empowerment

Employee EmpowermentEmployee Empowerment

ControlControl

Decision-MakingDecision-Making

PlanningPlanning

12© 2010 Nkumbwa™. All Rights Reserved.

Psychological Components of Job DesignPsychological Components of Job Design

Individuals have values, attitudes, Individuals have values, attitudes, and emotions that affect job resultsand emotions that affect job results Example: Work is a social experience Example: Work is a social experience

that affects belonging needsthat affects belonging needs Effective worker behavior comes mostly from within the Effective worker behavior comes mostly from within the

individualindividual Scientific management argued for external financial Scientific management argued for external financial

rewardsrewards First examined in ‘Hawthorne studies’First examined in ‘Hawthorne studies’

13© 2010 Nkumbwa™. All Rights Reserved.

Hawthorne StudiesHawthorne Studies

Conducted in late 1920’sConducted in late 1920’s Western Electric Hawthorne plantWestern Electric Hawthorne plant Showed importance of the individual in the workplaceShowed importance of the individual in the workplace Showed the presence of a social system in the Showed the presence of a social system in the

workplaceworkplace

14© 2010 Nkumbwa™. All Rights Reserved.

Originally intended to examine effects of lighting on Originally intended to examine effects of lighting on productivityproductivity Scientific management proposed that physical Scientific management proposed that physical

conditions affect productivityconditions affect productivity Result: Productivity increased regardless of lighting Result: Productivity increased regardless of lighting

levellevel Conclusion: Increased productivity was due to workers’ Conclusion: Increased productivity was due to workers’

receiving attentionreceiving attention

Hawthorne Studies: Workplace Hawthorne Studies: Workplace LightingLighting

15© 2010 Nkumbwa™. All Rights Reserved.

Examined effects of group piecework pay system on Examined effects of group piecework pay system on productivityproductivity

Workers under piecework system should produce as much Workers under piecework system should produce as much as possibleas possible Scientific management assumes that people are Scientific management assumes that people are

motivated only by moneymotivated only by money Result: Production less than maximumResult: Production less than maximum Conclusion: Social pressure caused workers to produce at Conclusion: Social pressure caused workers to produce at

group-norm levelgroup-norm level

Hawthorne Studies: Piecework PayHawthorne Studies: Piecework Pay

16© 2010 Nkumbwa™. All Rights Reserved.

Self-Directed TeamsSelf-Directed Teams

Group of empowered individuals working together for a Group of empowered individuals working together for a common goalcommon goal

May be organized for short-term or May be organized for short-term or long-term objectiveslong-term objectives

Reasons for effectivenessReasons for effectiveness Provide employee empowermentProvide employee empowerment Provide core job characteristicsProvide core job characteristics Meet psychological needs (e.g., belonging)Meet psychological needs (e.g., belonging)

17© 2010 Nkumbwa™. All Rights Reserved.

Job Design ContinuumJob Design Continuum

Increasing reliance on employees’ contribution and increasing acceptance of responsibility by employee

Specialization

Enlargement

Enrichment

Empowerment

Self-directed Teams

Job Expansion

18© 2010 Nkumbwa™. All Rights Reserved.

Core Job CharacteristicsCore Job Characteristics

Skill varietySkill variety Job identifyJob identify Job significanceJob significance AutonomyAutonomy FeedbackFeedback

19© 2010 Nkumbwa™. All Rights Reserved.

MotivationMotivation

Worker performance depends onWorker performance depends on MotivationMotivation AbilityAbility Work environmentWork environment

Motivation is the set of forces that compel behaviorMotivation is the set of forces that compel behavior Money may serve as a psychological & financial Money may serve as a psychological & financial

motivatormotivator

20© 2010 Nkumbwa™. All Rights Reserved.

Motivation and MoneyMotivation and Money

Taylor’s scientific management (1911)Taylor’s scientific management (1911) Workers are motivated mainly by moneyWorkers are motivated mainly by money Suggested piece-rate systemSuggested piece-rate system

Maslow’s theory (1943)Maslow’s theory (1943) People are motivated by hierarchy of needs, People are motivated by hierarchy of needs,

which includes moneywhich includes money Herzberg (1959)Herzberg (1959)

Money either dissatisfies or is neutral in its Money either dissatisfies or is neutral in its effecteffect

21© 2010 Nkumbwa™. All Rights Reserved.

Monetary IncentivesMonetary Incentives

Bonuses: Cash & stock optionsBonuses: Cash & stock options Profit sharing: Distribution of profitsProfit sharing: Distribution of profits Gain sharing: Reward for company performance (e.g., Gain sharing: Reward for company performance (e.g.,

cost reduction)cost reduction) Scanlon plan is most popular (cost reduction.)Scanlon plan is most popular (cost reduction.)

Incentive systemsIncentive systems Measured daywork: Pay based on standard timeMeasured daywork: Pay based on standard time Piece rate: Pay based on pieces donePiece rate: Pay based on pieces done

22© 2010 Nkumbwa™. All Rights Reserved.

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Self-ActualizationUse of abilities Self-fulfillment

SocialGroup Interaction

Job Status

Safety Physical Safety

Job SecurityPhysiology

Food Shelter

Ego Self Respect

23© 2010 Nkumbwa™. All Rights Reserved.

Herzberg’s Motivation/Hygiene FactorsHerzberg’s Motivation/Hygiene Factors

Achievement

Recognition

Advancement

Work itself

Responsibility

Personal growth

Company policies and administration

Supervision - technical

Working conditions

Interpersonal relations - supervision

Status

Job security

Salary

Job Dissatisfiers (Hygiene)

Job Satisfiers (Motivators)

24© 2010 Nkumbwa™. All Rights Reserved.

Job CharacteristicsJob Characteristics

MotivationMotivation

SatisfactionSatisfaction

Job performanceJob performance

Absenteeism & turnoverAbsenteeism & turnover

Core Job CharacteristicsCore Job Characteristics

Psychological StatesPsychological States

Personal & Work Outcomes

Personal & Work Outcomes Hackman & Oldham

25© 2010 Nkumbwa™. All Rights Reserved.

Ergonomics and Work MethodsErgonomics and Work Methods

Worker performance depends onWorker performance depends on MotivationMotivation AbilityAbility Work environmentWork environment

Foundation laid by Frederick Taylor Foundation laid by Frederick Taylor Match employees to taskMatch employees to task DevelopDevelop work methodswork methods Establish work standardsEstablish work standards

26© 2010 Nkumbwa™. All Rights Reserved.

ErgonomicsErgonomics

Study of work Study of work Also called ‘human factors’Also called ‘human factors’ Involves human-machine interfaceInvolves human-machine interface ExamplesExamples

MouseMouse KeyboardKeyboard

27© 2010 Nkumbwa™. All Rights Reserved.

Methods AnalysisMethods Analysis

Focuses on how task is performedFocuses on how task is performed Used to analyzeUsed to analyze

Movement of body, people, or materialMovement of body, people, or material Activities of people & machinesActivities of people & machines

ToolsTools Process chartProcess chart Flow diagramFlow diagram Activity chartActivity chart Operations chart (right-hand, left-hand)Operations chart (right-hand, left-hand)

28© 2010 Nkumbwa™. All Rights Reserved.

Methods AnalysisMethods Analysis

Movement of individuals or materials (Flow diagrams or Movement of individuals or materials (Flow diagrams or process charts)process charts)

Activity of human and machine and crew activity (Activity Activity of human and machine and crew activity (Activity charts)charts)

Body movement (primarily hands) (Micro-motion charts)Body movement (primarily hands) (Micro-motion charts)

29© 2010 Nkumbwa™. All Rights Reserved.

The Visual WorkplaceThe Visual Workplace

Uses low-cost visual devices to share information Uses low-cost visual devices to share information quickly and accurately.quickly and accurately.

Displays and graphs replace paperDisplays and graphs replace paper Provides real-time informationProvides real-time information System should focus on improvement, not merely System should focus on improvement, not merely

monitoringmonitoring Can provide both production and financial dataCan provide both production and financial data

30© 2010 Nkumbwa™. All Rights Reserved.

The Visual WorkplaceThe Visual Workplace

31© 2010 Nkumbwa™. All Rights Reserved.

What is Work Measurement?What is Work Measurement?

Determining the amount of worker time required to Determining the amount of worker time required to generate one unit of outputgenerate one unit of output

Provides labor standards Provides labor standards Target amount of time required to perform a job Target amount of time required to perform a job

under normal working conditionsunder normal working conditions

32© 2010 Nkumbwa™. All Rights Reserved.

Labor standards are based on observing worker doing taskLabor standards are based on observing worker doing task Observe only a sample of workObserve only a sample of work Use average time & pace to set standardUse average time & pace to set standard

DisadvantagesDisadvantages Requires a trained & experienced analystRequires a trained & experienced analyst Standard cannot be set Standard cannot be set beforebefore task is performed task is performed

Time StudiesTime Studies

33© 2010 Nkumbwa™. All Rights Reserved.

Eight Steps to Conducting a Time StudyEight Steps to Conducting a Time Study

1.1. Define the task to be studied (after a methods analysis)Define the task to be studied (after a methods analysis)

2.2. Break down the task into precise elementsBreak down the task into precise elements

3.3. Decide how many times each element of the task must be Decide how many times each element of the task must be measuredmeasured

4.4. Record the times and ratings of performance for the task Record the times and ratings of performance for the task elementselements

5.5. Compute the average observed cycle time (element timesCompute the average observed cycle time (element times adjusted for unusual influences)adjusted for unusual influences)

34© 2010 Nkumbwa™. All Rights Reserved.

6. Compute the normal time for each task element: Normal time = (Average actual cycle time)

x (Rating factor)

7. Sum the normal times for each element to develop a total normal time for the task

8. Compute the standard time:

Eight Steps to Conducting a Time StudyEight Steps to Conducting a Time Study

Standard time = Total normal time1- Allowance factor

35© 2010 Nkumbwa™. All Rights Reserved.

AllowancesAllowances

Personal time allowancePersonal time allowance - 4% - 7% of total time - use of - 4% - 7% of total time - use of restroom, water fountain, etc.restroom, water fountain, etc.

Delay allowanceDelay allowance - based upon actual delays that occur - based upon actual delays that occur Fatigue allowanceFatigue allowance - to compensate for physical or - to compensate for physical or

mental strain, noise level, tediousness, heat and mental strain, noise level, tediousness, heat and humidity, assumption of an abnormal position, etc.humidity, assumption of an abnormal position, etc.

36© 2010 Nkumbwa™. All Rights Reserved.

Rest Allowances (%) for Various Classes of WorkRest Allowances (%) for Various Classes of Work

1. Constant allowance1. Constant allowance(a) Personal allowance (a) Personal allowance

……………...……………...(b) Basic fatigue allowance (b) Basic fatigue allowance

……………………2.Variable allowances:2.Variable allowances:

(A) Standing allowance (A) Standing allowance ……………..……………..

(B) Abnormal position(B) Abnormal position(I) Awkward (bending) ………….(I) Awkward (bending) ………….(ii) Very awkward (lying, stretching) (ii) Very awkward (lying, stretching)

……………………..……………………..

(C) Use of force or muscular (C) Use of force or muscular energy in lifting, pulling, energy in lifting, pulling, pushingpushing

Weight lifted (pounds)Weight lifted (pounds)20 …………………………………20 …………………………………40………………………………….40………………………………….60………………………………….60………………………………….

5 4

2

2

7

3 917

37© 2010 Nkumbwa™. All Rights Reserved.

Rest Allowances (%) for Various Classes of WorkRest Allowances (%) for Various Classes of Work

(D) Bad light(D) Bad light(i) Well below recommended (i) Well below recommended

…..…..(ii) Quite inadequate …………….(ii) Quite inadequate …………….

(E) Atmospheric conditions (heat and (E) Atmospheric conditions (heat and humidity)humidity)

Variable …………………………..Variable …………………………..(F) Close attention(F) Close attention

(i) Fine or exacting ………………(i) Fine or exacting ………………(ii)Very fine or very exacting (ii)Very fine or very exacting

…...…...(G) Noise level(G) Noise level

(i) Intermittent – loud ……………(i) Intermittent – loud ……………(ii) Intermittent – very loud or (ii) Intermittent – very loud or

high-pitchedhigh-pitched

2

5

1-10

252 5

38© 2010 Nkumbwa™. All Rights Reserved.

Rest Allowances (%) for Various Classes Rest Allowances (%) for Various Classes of Workof Work

(H) Mental strain(H) Mental strain(i) Complex or wide span of (i) Complex or wide span of attention ………………………attention ………………………(ii) Very complex …………….(ii) Very complex …………….

(I) Tediousness(I) Tediousness(i) Tedious …………………….(i) Tedious …………………….(ii) Very tedious ………………(ii) Very tedious ………………

4 4

2 5

39© 2010 Nkumbwa™. All Rights Reserved.

Time Studies - Sample SizeTime Studies - Sample Size

xhzs

n ,size Sample

h = accuracy level desired as percent of job element, expressed as a decimal (5% = 0.05)

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

1

2

n

xixs :Note

40© 2010 Nkumbwa™. All Rights Reserved.

Considerations in Determining Sample SizeConsiderations in Determining Sample Size

How accurate do you want to be?How accurate do you want to be? What level of confidence do you want your measurements What level of confidence do you want your measurements

to have?to have? How much variation exists within the job elements?How much variation exists within the job elements?

41© 2010 Nkumbwa™. All Rights Reserved.

Common z valuesCommon z values

Desired ConfidenceLevel (%)

Z Value

90.11 1.65

95.00 1.96

95.45 2.00

99.11 2.58

99.73 3.0099.0

42© 2010 Nkumbwa™. All Rights Reserved.

Allowance factor Nonwork time

Total time

Average element time Element times

Number of cycles

Normal time Average element time * Perf. Rating

Standard timeTotal normal time

1 - Allowance factor

=

=

=

=

Time Study EquationsTime Study Equations

43© 2010 Nkumbwa™. All Rights Reserved.

Labor standards are set from times in published tables (e.g., Labor standards are set from times in published tables (e.g., MTM Table)MTM Table)

ProcedureProcedure Divide manual work into basic elementsDivide manual work into basic elements Look up basic element times in table; sumLook up basic element times in table; sum

AdvantagesAdvantages Times established in laboratory settingTimes established in laboratory setting Useful for planning tasksUseful for planning tasks Widely accepted by unionsWidely accepted by unions

Predetermined Time StandardsPredetermined Time Standards

44© 2010 Nkumbwa™. All Rights Reserved.

Time TMU Hand inMotion

DistanceMoved (in)

A B C A B

3/4 or less 2.0 2.0 2.0 1.6 1.6

1 2.5 2.5 3.6 2.3 2.3

2 4.0 4.0 5.9 3.5 2.7

A Reach to object in fixed location. B Reach to object in variable locations.C Reach to object jumbled with others.

1 TMU = .0006 minutes

MTM Table for Reach MotionMTM Table for Reach Motion

45© 2010 Nkumbwa™. All Rights Reserved.

Sample MTM Table for GET and PLACE Sample MTM Table for GET and PLACE MotionsMotions

46© 2010 Nkumbwa™. All Rights Reserved.

MTM-HC Analysis: Pouring Tube SpecimenMTM-HC Analysis: Pouring Tube Specimen

Element DescriptionElement Description ElementElement TimeTime

Get tube from rackGet tube from rack AA2AA2 3535

Get stopper, place on counterGet stopper, place on counter AA2AA2 3535

Get centrifuge tube, place at Get centrifuge tube, place at sample tubesample tube

AD2AD2 4545

Pour (3 sec.)Pour (3 sec.) PTPT 8383

Place tubes in rack (simo)Place tubes in rack (simo) PC2PC2 4040

0.0006*238=Total standard 0.0006*238=Total standard minutes = 0.14minutes = 0.14

Total Total TMUTMU

238238

47© 2010 Nkumbwa™. All Rights Reserved.

Labor standard is set using output and % of time worker Labor standard is set using output and % of time worker spends on tasksspends on tasks

Involves observing worker at random times over a long Involves observing worker at random times over a long periodperiod

AdvantagesAdvantages Less expensive than time studiesLess expensive than time studies Observer requires little trainingObserver requires little training

DisadvantagesDisadvantages Ineffective with short cyclesIneffective with short cycles

Work SamplingWork Sampling

48© 2010 Nkumbwa™. All Rights Reserved.

Used forUsed for Ratio delay studiesRatio delay studies Setting labor standardsSetting labor standards Measuring worker performanceMeasuring worker performance

Work SamplingWork Sampling

49© 2010 Nkumbwa™. All Rights Reserved.

The Five StepThe Five Step Work Sampling Procedure Work Sampling Procedure

1.1. Take a preliminary sample to obtain an estimate of the Take a preliminary sample to obtain an estimate of the parameter valueparameter value

2.2. Compute the sample size requiredCompute the sample size required

3.3. Prepare a schedule for observing the worker at appropriate Prepare a schedule for observing the worker at appropriate timestimes

4.4. Observe and record worker activities; rate worker Observe and record worker activities; rate worker performanceperformance

5.5. Determine how workers spend their time (usually as a Determine how workers spend their time (usually as a percent)percent)

50© 2010 Nkumbwa™. All Rights Reserved.

Work Sampling - Sample SizeWork Sampling - Sample Size

h

ppzn

p = estimated value of sample proportion (of time worker is observed busy or idle)

h = accuracy level desired in percent, expressed as a decimal

51© 2010 Nkumbwa™. All Rights Reserved.

Normal Time =(Total Time) (% of time working) (Rating)

Number of units Produced

Standard Time = Normal Time

1 - Allowance

Work Sampling EquationsWork Sampling Equations

52© 2010 Nkumbwa™. All Rights Reserved.

Uses of Labor StandardsUses of Labor Standards

Costing labor content of productsCosting labor content of products Planning staffing needsPlanning staffing needs Cost & time estimates for bidsCost & time estimates for bids Planning productionPlanning production Wage-incentive plansWage-incentive plans Employee efficiencyEmployee efficiency

53© 2010 Nkumbwa™. All Rights Reserved.

Sources of Labor StandardsSources of Labor Standards

Historical experienceHistorical experience Time studiesTime studies Predetermined time standards (MTM)Predetermined time standards (MTM) Work samplingWork sampling

54© 2010 Nkumbwa™. All Rights Reserved.

Labor Standards - Historical ExperienceLabor Standards - Historical Experience

Labor standards are based on how many labor-hours Labor standards are based on how many labor-hours were needed in pastwere needed in past

Least preferred methodLeast preferred method AdvantagesAdvantages

Easy and inexpensive to obtain standardEasy and inexpensive to obtain standard DisadvantagesDisadvantages

Unknown accuracy due to unusual occurrences, Unknown accuracy due to unusual occurrences, unknown pace etc.unknown pace etc.

55© 2010 Nkumbwa™. All Rights Reserved.

Costing labor content of productsCosting labor content of products Planning staffing needsPlanning staffing needs Estimating time and cost for bidsEstimating time and cost for bids Planning production (crew size and work balance)Planning production (crew size and work balance) Estimating expected productionEstimating expected production Basing wage-incentive plansBasing wage-incentive plans Determining employee efficiencyDetermining employee efficiency

Uses of Labor StandardsUses of Labor Standards