Week 7 Lectute 7 Work - Job Design Updated

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 91

Fall 2023

Course name: Operations Management


Course code: MGSC 5128
Chapter- 7
Work/job Design

2
Lecture Outline
▪ Introduction and Work/job Design

▪ Methods Analysis

▪ Working Conditions

▪ Time-Study Method

▪ Compensation Methods
3
Learning Objectives
• Define work/job design, describe efficiency and
behavioural approaches, and discuss roles of
labour unions and information and
communication technologies in work/job
design.
• Describe how methods analysis is performed.
• Discuss the impact of working conditions on
work/job design.
• Describe time-study methods and perform
calculations.
• Describe various compensation methods.

4
Work/Job Design
▪ Work/job design involves specifying the content and methods of
work/job.
▪ Work/job design focuses on:
• What will be done in a job?
• Who will do the job?
• How the job will be done?
• Where the job will be done?

▪ Standard Time and Compensation.


• Objectives:
• Productivity
• Safety
• Quality of work life
• Compensation=Work Performed
5
Work/job Design
According to the Human Performance System, the
following six job design and management factors are
required for effective and efficient performance of a job:
1. Performance specification
2. Task support
3. Consequences
4. Feedback
5. Skills/knowledge
6. Individual capacity

6
Introduction to Work/job Design

Work/job design are based on two approaches:


▪ Efficiency Approach
• A refinement of Taylor’s scientific management
• Systematic, logical approach
• Labour cost reduction
▪ Behavioural Approach
• Emerged during the 1950s
• Emphasizes satisfaction of wants and needs
• Reminded managers of the complexity of human
beings

7
Specialization: Advantages

For Company: For Worker:


1. Simplifies training 1. Low education and
skill requirements
2. High productivity
2. Minimum
3. Low wage costs
responsibilities
3. Little mental effort
needed

8
Specialization: Disadvantages

For Company: For Workers:


1. Difficult to motivate 1. Monotonous work
quality 2. Limited opportunities
2. Worker dissatisfaction, for advancement
possibly resulting in 3. Little control over work
absenteeism, high
4. Little opportunity for
turnover, disruptive
self-fulfillment
tactics

9
Behavioural Approach
▪ Awareness of motivational factors
▪ Importance of trust
▪ Socialization, self-actualization (fulfillment of one’s talents and
potential), status, and a sense of purpose and accomplishment.
▪ Basis of approaches such as Total Quality Management (TQM)
▪ TQM are based on employee involvement in decision making. This is
also called employee empowerment or high performance work
system.

10
Behavioural Approach
▪ Job Enlargement
• Giving a worker a larger portion of the total activity
by horizontal loading
▪ Job Rotation
• Workers periodically exchange jobs
▪ Job Enrichment
• Increasing employee responsibility for planning,
execution and control of tasks, by vertical loading

11
Question
A job is said to be enlarged vertically if the
employee is involved with which of the
following?
a. The job’s planning
b. The job’s organizing
c. The job’s inspecting
d. All of the above
e. None of the above

Answer: d. All of the above


12
Example: Behavioral approach
Assume there are five students - Ajith, Anjali, Alvin,
Asma, and Aswin works in a reputed manufacturing
industry where there are five different types of tasks,
namely assembly, storage, inspection, testing, and
control.
Ajith is good in both assembly and storage. Anjali’s
only choice is work in assembly section. Alvin can
work in both storage and inspection section. Asma is
good in inspection, testing, and control sections.
Aswin wants to work in control section only. Your
task is to assign the jobs.

13
Which Job for Whom?
Step:1 Use Bipartite graph to draw the problem.

Ajith Assembly

Anjali Storage

Alvin Inspection

Asma Testing

Aswin Control

14
Which Job for Whom?
Problem: If you assign the jobs according to their
first choice, Anjali will be idle.
Ajith Assembly

Anjali Storage

Alvin Inspection

Asma Testing

Aswin Control

15
Which Job for Whom?
Step:2 Create a network graph by using Source and
Sink and assign capacity = 1.
1
Ajith Assembly
1
1
1 1
Anjali Storage 1
1
1
1 1 Sink
Source 1
Alvin Inspection
1 1 1
1
1 Asma Testing
1
1
1
Aswin Control

16
Which Job for Whom?
Step:3 Count the total degree of each node.

1
3 Ajith 3 Assembly 1
1
1 1
2 Anjali 3 Storage 1
5 1
5
1
1 1 Sink
Source 1 3 Inspection
3 Alvin
1 1 1
1
1 4 Asma 2 Testing
1
1
1
2 Aswin 3 Control

17
Which Job for Whom?
Step:4 find all augmented path, sort them based on
degree. 3 Ajith 1
3 Assembly 1
1 1 1
5 1 2 Anjali 3 Storage 1
1 5
Source 1 1 1
3 Alvin 3 Inspection Sink
1 1 1
1 4 Asma 1 2 Testing
1
1
2 Aswin 1 3 Control

Source -> Ajith -> Assembly -> Sink = 5+3+3+5 = 16


Source -> Ajith -> Storage -> Sink = 5+3+3+5 = 16
Source -> Anjali -> Assembly -> Sink = 5+2+3+5 = 15
Source -> Alvin -> Storage -> Sink = 5+3+3+5 = 16
Source -> Alvin -> Inspection -> Sink = 5+3+3+5 = 16
Source -> Asma -> Inspection -> Sink = 5+4+3+5 = 17
Source -> Asma -> Testing -> Sink = 5+4+2+5 = 16
Source -> Asma -> Control -> Sink = 5+4+3+5 = 17
Source -> Aswin -> Control -> Sink = 5+2+3+5 = 15 18
Which Job for Whom?
Step:4 find all augmented path, sort them based on
degree. 3 Ajith 1
3 Assembly 1
1 1 1
5 1 2 Anjali 3 Storage 1
1 5
Source 1 1 1
3 Alvin 3 Inspection Sink
1 1 1
1 4 Asma 1 2 Testing
1
1
2 Aswin 1 3 Control

Source -> Anjali -> Assembly -> Sink = 5+2+3+5 = 15


Source -> Aswin -> Control -> Sink = 5+2+3+5 = 15
Source -> Ajith -> Assembly -> Sink = 5+3+3+5 = 16
Source -> Ajith -> Storage -> Sink = 5+3+3+5 = 16
Source -> Alvin -> Storage -> Sink = 5+3+3+5 = 16
Source -> Alvin -> Inspection -> Sink = 5+3+3+5 = 16
Source -> Asma -> Testing -> Sink = 5+4+2+5 = 16
Source -> Asma -> Inspection -> Sink = 5+4+3+5 = 17
Source -> Asma -> Control -> Sink = 5+4+3+5 = 17 19
Which Job for Whom?
Step:5 find maximum flow from the network.
3 Ajith 1
3 Assembly 1
1 1 1
5 1 2 Anjali 4 Storage 1
1 5
Source 1 1 1
3 Alvin 2 Inspection Sink
1 1 1
1 4 Asma 1 2 Testing
1
1
2 Aswin 1 3 Control

Source -> Anjali -> Assembly -> Sink = 5+2+3+5 = 15


Source -> Aswin -> Control -> Sink = 5+2+3+5 = 15
Source -> Ajith -> Assembly -> Sink = 5+3+3+5 = 16
Source -> Ajith -> Storage -> Sink = 5+3+3+5 = 16
Source -> Alvin -> Storage -> Sink = 5+3+3+5 = 16
Source -> Alvin -> Inspection -> Sink = 5+3+3+5 = 16
Source -> Asma -> Testing -> Sink = 5+4+2+5 = 16
Source -> Asma -> Inspection -> Sink = 5+4+3+5 = 17
Source -> Asma -> Control -> Sink = 5+4+3+5 = 17 20
Example: Efficiency approach
The Hungarian method is an efficient way of
finding the optimal solution to an assignment
problem.
It operates on the principle of matrix reduction.
By subtracting and adding appropriate
numbers in the cost table or matrix, we can
reduce the problem to a matrix of opportunity
costs.
Opportunity costs show the relative penalty
associated with assigning any person to a
project as opposed to making the best
assignment.
21
Steps: Hungarian Method

22
Example: Hungarian Method
Step 1: Find the opportunity cost table
We can compute row opportunity costs and column
opportunity costs. What we need is the total opportunity
cost. We derive this by taking the row opportunity costs
and then subtract the smallest number in that column
from each number in that column

Initial table Row opportunity cost table


PROJECT PROJECT
PERSON 1 2 3 PERSON 1 2 3

Adams $11 $14 $6 Adams $5 $8 $0

Brown $8 $10 $11 Brown $0 $2 $3

Cooper $9 $12 $7 Cooper $2 $5 $0

23
Example: Hungarian Method
We derive the total opportunity costs by taking the
costs Row opportunity cost table and subtract the
smallest number in each column from each number in
that column

Row opportunity cost table Total opportunity cost table


PROJECT PROJECT
PERSON 1 2 3 PERSON 1 2 3

Adams $5 $8 $0 Adams $5 $6 $0

Brown $0 $2 $3 Brown $0 $0 $3

Cooper $2 $5 $0 Cooper $2 $3 $0

24
Example: Hungarian Method
Step 2: Test for the optimal assignment
• We want to assign workers to projects in such a way
that the total labor costs are at a minimum. We would
like to have a total assigned opportunity cost of zero
• We find the minimum number of straight lines
necessary to cover all the zeros in the table. If the
number of lines equals the number of rows or columns,
an optimal solution has been reached.

25
Example: Hungarian Method
We have 3 persons or 3 rows, however, only 2 lines to
cover the zeros. So, this is not optimal solution. We have
to continue to the next step.

26
Example: Hungarian Method
Step 3: Revise the opportunity-cost table
We subtract the smallest number not covered by a line
from all numbers not covered by a straight line.
The same number is added to every number lying at
the intersection of any two lines.
We then return to step 2 to test this new table.

27
Example: Hungarian Method
Revised opportunity cost table (derived by
subtracting 2 from each cell not covered by a line
and adding 2 to the cell at the intersection of the
lines)

PROJECT PROJECT
PERSON 1 2 3 PERSON 1 2 3

Adams $5 $6 $0 Adams $3 $4 $0

Brown 0 0 3 Brown 0 0 5

Cooper 2 3 0 Cooper 0 1 0

28
Example: Hungarian Method
Optimality test on the revised opportunity cost
table.

This requires three lines to cover the zeros so the


solution is optimal.

29
Example: Hungarian Method
The optimal assignment is Adams to project 3,
Brown to project 2, and Cooper to project 1.

PROJECT
PERSON 1 2 3

Adams $3 $4 $0

Brown 0 0 5

Cooper 0 1 0

30
Exercise: Hungarian Method
Consider the following table for five students. You
can interpret the table as “Ajith needs 13 minutes
to complete one task in assembly section, Needs 8
minutes to complete one task in storage section,
……..”. and solve it using the Hungarian method.

Assembly Storage Inspection Testing Control


Ajith 13 8 16 18 19
Anjali 9 15 24 9 12
Alvin 12 9 4 4 4
Asma 6 12 10 8 13
Aswin 15 17 18 12 20
31
Teams
▪ Self-directed teams
• Groups who perform the same function and
are empowered to make certain decisions
and changes in their work.
▪ Benefits of teams
• Fewer managers are necessary
• Higher quality
• Higher productivity
• Greater worker satisfaction

32
Role of Unions
▪ Labour unions can affect all aspects of
work/job design and how work is
accomplished. Collective
Agreement
▪ Unions impact:
• wages and benefits
• security of jobs/outsourcing
• temporary workers
• hiring/layoff/promotion/seniority
• safety standards/working conditions
• work rules, job classification
• scheduling
33
Information and Communication
Technologies
▪ The Internet, wireless networks, smartphones, and
the software and applications that use those
technologies.
▪ Have a significant effect on all aspects of work/job
design and how work is accomplished.
• 24-hour Internet and TV news channels
• Office work has become paperless
• business software keeps track of financial records
• Payroll departments deposit employees’
compensation electronically into their bank
accounts

34
Methods Analysis
▪ Methods analysis
• breaks down the job into sequence of tasks/
elements/motions and improves it.
▪ Basic procedure:
• Identify the job to be studied and gather information
• Gather all pertinent facts about
• the worker
• parts, tasks and motions
• fixtures, machines/equipment, tools, layout,
• sensory input, light, glare, noise, heat, vibration
• Document and analyze the present method and
discuss the job/facts with the worker and supervisor
• Question the present method and propose a new
one
35
Flow Process Charts
▪ Chart used to collect and review the sequence of
steps performed in a process
▪ Ask:
• Why is there a delay or shortage at this point?
• How can travel distances be shortened/avoided?
• Can an operation be eliminated?
• Can the sequence be changed?
• Can similar activities be grouped?
• Would additional or better equipment help?

36
FlowProcess Chart: Example

FLOW PROCESS CHART ANALYST PAGE


Job Requisition of petty cash D. Kolb 1 of 2

Details of Method
Requisition made by department head
Put in “pick-up” basket
To accounting department
Account and signature verified
Amount approved by treasurer
Amount counted by cashier
Amount recorded by bookkeeper
Petty cash sealed in envelope
Petty cash carried to department
Petty cash checked against requisition
Receipt signed
Petty cash stored in safety box

Figure 7-1

37
Worker-Machine Chart

▪ Used to describe or plan the interactions


between a worker and their machine(s)
over time
▪ Can see when the worker and machine are
working independently or when their work
overlaps
▪ Can determine how many machines the
operator can manage

38
Worker-Machine Chart

Figure 7-2

39
Motion Study

Motion study is the systematic study of the


motions used to perform a task/element.
Purpose:
• Eliminate unnecessary motions
• Identify best sequence of motions

40
Motion Study
▪ Motion economy principles:
• Guidelines for designing motion - efficient work
procedures
• Three categories: use of arms/body, arrangement
of workplace, design of tools/equipment
▪ Analysis of elemental motions (therbligs):
• Basic elemental motions into which a job can be
broken down
▪ Slow motion study:
• Use of motion pictures and slow motion to study
motions that otherwise would be too rapid to
analyze
▪ Simo or two hand process chart:
• A chart that shows the elements performed by
each hand, side by side, over time
41
Motion Study

Figure 7-3
42
Working Conditions:
Government Regulation
▪ Canadian Labour Code
• Safety and other work standards
• Workers have rights to:
• Refuse dangerous work
• Participate in improving health & safety
• Know about hazards in the workplace
▪ Workplace Hazardous Materials Information
System (WHMIS)
• Mandates proper labeling of hazardous
material
• Making available material safety data sheets
43
Working Conditions
Temperature & Humidity Ventilation

Illumination Ergonomics

44
Working Conditions (cont’d)
Noise & Vibration Work Breaks & Hours

Safety Causes of Accidents

45
Noise and Vibrations

Figure 7-4

Source: Benjamin W. Niebel, Motion and Time Study, 8th ed. Copyright © 1988 Richard D. Irwin, Inc. Used by permission of McGraw-Hill Companies, Inc., p. 248.

Noise:
• Selection and placement of equipment
• Acoustical walls and ceilings or baffles
• Provide earplugs or protective devices
Vibration:
• Padding, stabilizers, shock absorbers, cushioning or rubber
mountings
46
Work Breaks
▪ Efficiency declines as day wears on
▪ Work breaks can cause an upward shift
▪ Depends on amount of physical/mental
efforts

47
Safety
▪ Requires constant attention
▪ Occupational Safety and Health Standards
▪ WHMIS training required
▪ Two main causes of accidents:
• Carelessness
• Hazards

48
Safety: Protection Against Hazards

Clearly marked Protective


Proper lighting
danger zones equipment

Emergency
Safety devices Housekeeping
equipment

Thorough Enforcement
training of procedures
49
Ergonomics
Involves fitting the job to the worker’s
capability and size.
• Design of equipment, work methods, work
space
• Remove awkward movement
• Try to prevent common workplace injuries
(e.g. back injuries, repetitive motion injuries)

50
Ergonomics

51
Workers’ Well-Being and a Healthy
Workplace
▪ Many organizations have begun to realize that
the productivity of their employees depends on
their general health and well-being.
▪ The National Quality Institute (now Excellence
Canada) in cooperation with Health Canada
developed the Healthy Workplace Award in 1998
to recognize organizations that have a holistic
system for a healthy workplace; this includes
physical, mental, safety, personal, and social
aspects

52
Mental Health at Work
▪ Excellence Canada has recently introduced a
new award category called Mental Health at
Work, to acknowledge the importance of mental
health in recent years.
▪ Research has shown that unmet human needs
can result in psychological distress, and
that these human needs can be addressed by 13
workplace factors.

53
Time Studies & Standard Time
▪ A time study or work measurement
involves various methods to determine the
length of time needed to complete a task.
▪ Standard Time is the amount of time it
should take a qualified worker to complete
a specific task.
• Working at a sustainable rate
• Using given methods, tools,
equipment, raw materials,
and workplace arrangement
54
Work Measurement:
Development of Standard Times
▪ Determine how long it should take
to do a job.
• Stopwatch time study
• Predetermined element times
• Work Sampling

55
Stopwatch Time Study
▪ Development of a time standard based on
observations of one worker taken over a
number of cycles
▪ The basic steps in a time study:
1. Define the task to be studied
2. Determine the number of cycles to observe
3. Time the job/rate worker performance
4. Compute the standard time

56
Number of Cycles
Number of cycles depends on:
1. Variability of observed times
2. Desired accuracy
3. Desired level of confidence for the estimated job time

2 2
 zs  or  zs 
n=  n= 
 ax   e
z =Number of Normal standard deviations needed for desired confidence
s =Sample standard deviation
a =Desired accuracy proportion (= percentage/100)
x =Sample mean
e =Accuracy amount or maximum acceptable error amount
n = number of observations (= sample size)
57
Number of Cycles

x =Sample mean
n = number of observations (= sample size)

58
Number of Cycles
▪ Typical values of z are used

59
Example: Number of Cycles

2
 zs 
n= 
 ax 
2
 zs 
n= 
 e

60
Normal Time
Normal time The observed time adjusted for
the worker’s performance.

Normal time (NT) = Observed time x Performance rating

NT = OT x PR
▪ Observed Time is an average of recorded times
▪ The Performance Rating expressed as a decimal
• Performance Rating of a person working 10% faster than
normal = 1.10 or 110% of normal time. Working 10% slower
= 0.90 or 90% of normal.
▪ Performance rating is subjectively assigned
▪ Can sum normal times for several elements

61
Standard Time
The standard time for a task is the normal time multiplied by an allowance
for these factors.

Standard time (ST) = Normal time x Allowance Factor

▪ Standard time = NT x (1 + Allowance % )


• Based on job time/ Task
• Used when different tasks have different allowances

▪ Standard time = NT________________


1 – Allowance %
• Based on time in workday
• Used when different tasks have similar allowances
62
Standard Time

63
Example: Time Study
You want to determine the standard time for a job.
A worker produced 20 items in an 8 hour day. As
the worker was nervous under observation, it was
estimated that the employee worked about 10%
faster than normal. Allowances are 25% of the
workday.

What are the normal and standard times to


produce one item?

64
Example: Time Study
Given:
8 hours= (8*60) minutes=480 minutes
Items =20
10% faster than normal= 110 % of normal time
= 1.10
Allowance 25%= 0.25
Workday

What are the normal and standard times to


produce one item?
65
Example: Time Study
Normal time (NT) = Observed Time (OT) x Perf.
Rating (PR)
= (480 minutes/20) x (1.10)

= 26.4 minutes

Standard time (ST) = NT .


1 – Allowance

= (26.4)/(1-0.25)

= 35.2 minutes
66
Example: Time Study

67
Example: Time Study OT =
σ 𝒙𝒊
𝒏
NT = OT x PR
AFworkday = 1 / (1 - .15) = 1.1765
ST =NT X AF

Afday= 1.1765

OBSERVATIONS (MINUTES PER CYCLE)


Performance
Element Rating 1 2 3 4 5 6 OT NT ST
1 90% 0.44 0.50 0.43 0.45 0.48 0.46 0.46 0.41 0.49
2 85% 1.50 1.54 1.47 1.51 1.49 1.52 1.51 1.28 1.51
3 110% 0.84 0.89 0.77 0.83 0.85 0.80 0.83 0.91 1.07
4 100% 1.10 1.14 1.08 1.20 1.16 1.26 1.16 1.16 1.36
Task standard time: 4.43

68
Example: Time Study

69
Example: Time Study

Observation(Minutes per cycle)

Element Performance Rating 1 2 3 4 5OT NT ST


A 90% 1.4 1.42 1.39 1.38 1.41 1.4 1.26 1.39
B 120% 2.1 2.05 2 1.85 1.8 1.96 2.35 2.59
C 110% 1.6 1.4 1.5 1.45 1.55 1.5 1.65 1.82
5.79

Task time 10% 0.1

AF= 1+0.1
1.1

70
Example: Time Study

σ(𝑥𝑖 −𝑥)2
▪ STDEV= =
𝑛−1
(1.4−1.4)2 +(1.42−1.4)2 +(1.39−1.4)2 +(1.38−1.4)2 +(1.41−1.4)2
=0.0158
5−1

2
𝑧𝑠 2 2.33 (0.0158)
𝑛= = = 0.43 (round up to 1)
𝑎𝑥ҧ .04(1.40)

Note: z = 2.33

𝑧𝑠 2 1.65(0.079) 2
▪ 𝑛= = =1.70 (round up to 2)
𝑒 .10

Note: z = 1.65
71
Question
Which of the following is the Normal Time for
a job whose observed performance time is 10
minutes with a performance rating of 90%?
a. 90 minutes
b. 9 minutes
c. 1.10 minutes
d. 11.111 minutes
e. None of the above

Answer: b. 9 minutes (10 x 0.90=9 minutes)


72
Question
Which of the following is the Standard Time
for a job whose Normal Time is 20 minutes
and whose Allowances are 5% of job time?
a. 19.05 minutes
Answer: b. 21 minutes
b. 21.00 minutes
(ST=NT(1+Allowance
c. 21.05 minutes
s) or 20(1.05)=21
d. 22.11 minutes
minutes)
e. None of the above

73
Cautions on Time Studies
▪ Analyst must be familiar with task
• Workers may attempt to shorten times
• Abnormally short times should be discarded
• Abnormally long times should be investigated
▪ Jobs need to be broken down into basic
motions
• Many jobs can’t be observed like this
▪ Costly and disruptive: benefits must
outweigh cost
• Can also use historical or published elemental
times to determine times for a task
• Need high skill to describe task in basic elements
74
Predetermined Time Standards

▪ Published data based on extensive


research on element times
• Methods Time Measurement (MTM) tables
• Time Measurement Unit (TMU)
• MOST is a newer/simpler version of MTM
• Many tables for a variety of moves and
conditions
• distance, difficulty, weight, degree of turn, etc.
• Requires much time and skill

75
OM in Action
▪ UMT Plus®
UMT Plus® is a software
program that helps collect
element times.
• Elements can be programmed in a
smartphone app
• All that the time analyst has to do is
to press the element’s icon as the
worker starts that element
• UMT Plus is made by Laubrass
INC., located in Montreal, Quebec
76
Work Sampling
Technique for estimating the proportion of
time that a worker or machine spends on
each activity or is idle
▪ Make brief observations of a worker or
machine at random intervals
▪ Does not require:
• Timing an activity
• Continuous observation

77
Work Sampling
3. Compute
2. Notify initial estimate of
1. Identify worker and sample size.
worker to be supervisors to Using p specified
studied avoid arousing otherwise use
suspicions ෡ = 𝟎. 𝟓
𝑷

6. Determine
5. Begin taking
estimated 4. Develop a
observations.
proportion of random
Re-compute
time spent on observation
required sample
specified schedule
size periodically
activity

78
Work Sampling

79
Example: Work Sampling

80
Example: Work Sampling

𝑃෠ = .5
a = .04
Confidence = .95 [z = 1.96]
𝑧 2
2
1.96 = 600.25 round up to 601
n= 𝑝(1
Ƹ − 𝑝)Ƹ = (.5)(1 − .5)
𝑎 .04

81
Example: Time Study

a. Estimated % Idle Time = 5/20 = 0.25 or 25%

𝑧 2 ෢= 1.65 2
𝑏. 𝑛 = 𝑝(1
Ƹ − 𝑝) (.25)(1 − .25) = 141.8 (round up to 142)
𝑒 .06

82
Compensation

▪ Time-based pay
• Compensation based on time an employee
has worked during a pay period
▪ Output-based (piece rate) pay
• Compensation based on the amount of output
an employee produces during a pay period
• Commissions

83
Compensation
▪ Skill/Knowledge-Based Bonus Pay
• Reward workers who undergo training
to increase their skills/knowledge
▪ Group Bonus Plans
• Sharing of profit/productivity gains with
employees
• Output and cost reduction (gain-sharing)
• Increases in profit (profit-sharing)

84
Output-Based (piece rate) Pay

▪ Compensation system should be:


• Accurate
• Easy to apply
• Consistent
• Easy to understand
• Fair

85
Chapter Summary (1)
▪ Work/job design involves determining content,
conditions and compensation of work using methods
analysis and measurement.
▪ A focus on efficiency alone has expanded to include
an increasing use of the behavioural approach (job
enlargement, rotation, enrichment, and teamwork).
▪ Labour unions and information/communication
technologies have affected all aspects of work/job
design and how work is accomplished.
▪ Methods analysis and motion study techniques are
used to make the job more efficient. Flow process
charts, worker–machine charts, and simo charts are
used to document how work is done.
86
Chapter Summary (2)
▪ Working conditions such as temperature,
illumination, ergonomics and work breaks affect
productivity and health & safety of workers.
▪ Work measurement determines time needed to
complete a job or task (i.e., standard time) using
approaches such as stopwatch time studies and
predetermined time standards.
▪ Work sampling is used to estimate the proportion of
time a worker spends on a certain aspect of the job.
▪ Compensation can be Time-based, Output-based,
Bonus, Group bonus and skills/knowledge-based.

87
Learning Checklist
 Briefly describe the two basic approaches to job
design.
 Discuss the advantages and disadvantages of
specialization.
 Discuss the roles of labour unions and
technologies in work/job design.
 Explain the purpose of methods analysis and
describe how methods analysis is performed.
 Describe commonly used techniques for motion
study.
 Discuss the impact of working conditions on job
design. 88
Learning Checklist
 Define a standard time.
 Describe time study methods and perform
calculations.
 Describe work sampling and perform
calculations.
 Compare stopwatch time study and work
sampling.
 Contrast time and output pay systems.
 Explain the term knowledge-based pay.

89
Next class, we will learn ----
Ch10- Statistical Quality Control

90
The end

91

You might also like