System
Design
Operations Management
by
R. Dan Reid & Nada R. Sanders
4th Edition Wiley 2010
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Learning Objectives
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Job design
Work measurements
Worker compensation
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Design a Job
Technical feasibility:
Economic feasibility:
Behavioral feasibility:
Levels of Labor
Specialization
Specialization: Managements
View
Advantages:
Readily available
labor
Minimal training
required
Reasonable wages
costs
High productivity
Disadvantages:
High absenteeism
Grievances filed
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Specialization: Employees
View
Advantages:
Minimal
credentials
required
Minimal
responsibilities
Minimal mental
effort needed
Reasonable wages
Disadvantages:
Boredom
Little growth
opportunity
Little control over work
Little room for
initiative
Little intrinsic
satisfaction
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Eliminating Employee
Boredom
Job enlargement
Job enrichment
Job rotation
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Problem-solving teams:
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Methods Analysis
A detailed step-by-step analysis of how a
given job is performed
Can distinguish between value-added &
non-value-added steps
Analysis can revise the procedure to
improve productivity
After improvement, must revise the new
standard operating procedure
Follow-up to insure that changes actually
improve the operation
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Methods Analysis
Method analysis consists of:
1. Identify the operation to be analyzed
2. Gather all relevant information
3. Talk with employees who use the operation
4. Chart the operation
5. Evaluate each step
6. Revise the existing or new operation as needed
7. Put the revised or new operation into effect,
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2.
3.
4.
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Work Measurement
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Work Measurement
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# of observations to make
Desired level of accuracy
Desired level of confidence for the
estimated standard time
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z s
n
a x
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24
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1.176 117.6%
1 PFD 1 0.15
ST (NT)(AF)
AFTme Worked
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5.
6.
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0.5
estimate will be within 5% of its true value. We use
2
) 2.17 2
z )
n p 1 p
0.51 0.5 470.89 observations
e
0.05
2.17
n
0.21 0.2 302 observations
0.05
Final Step After making the 302 observations, the secretary was
making reservations 60 times or 19.9%. This estimate can now be
used to make the decision on savings that might result by
consolidating this task with an inhouse
travel agency
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Compensation
Compensation is the third part of work system design
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Worker Compensation
Systems cont
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Learning Curves
T x Ln = time required to
2nd
perform a task the nth
time
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Chapter 11 Highlights
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Chapter 11 Highlights
cont
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Chapter 11 Highlights
cont
To do a time study, first identify the job then break the job into
work elements. Finally, determine the number of observations
needed and perform the observation.
Work sampling involves random observations of a worker. Each
time you observe the worker, you note what activity the worker is
doing. After numerous observations, you can project the
expected proportion of time the worker should spend on different
activities.
Standard times are developed with either time studies, elemental
time data, or predetermined time data. You learned how to
develop standard times using time studies. After conducting the
time study, you compute the mean observed time for each work
element. You compute the normal time for the work element by
multiplying the mean observed time by the performance rating
factor. You find the standard time for each work element by
multiplying the normal time by the allowance factor.
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Chapter 11 Highlights
cont
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Chapter 11 Homework
Hints