MGMT290 Regent University Location Planning Work Design & Measurement Paper Discussion board from this week: Explain how manufacturing companies can desig

MGMT290 Regent University Location Planning Work Design & Measurement Paper Discussion board from this week:

Explain how manufacturing companies can design jobs that provide the optimum balance between efficiency/low-cost and human development. Demonstrate your understanding of job design from this week’s readings. What does scripture specifically have to say about this? Take your stance using a Biblical worldview.

This weeks study ———————–

Work Design and Measurement

This week we will look at the design of work systems as it involves job design, work measurement, and compensation.

Job design is concerned with the content of jobs and work methods. In the past, job design tended to focus on efficiency, but now there seems to be an increasing awareness and consideration of the behavioral aspects of work and worker satisfaction. Current concern about productivity has thrust job design into the limelight. However, the jobs usually associated with high productivity are often the same jobs that are the greatest source of worker dissatisfaction, creating somewhat of a paradox for job designers.

Analysts often use methods analysis and motion study techniques to develop the “ efficiency” aspects of jobs, but these do not directly address behavioral aspects. Nonetheless, they are an important part of job design. Working conditions are also a notable aspect of job design, not only because of the behavioral and efficiency factors but also because of concern for the health and safety of workers.

Location Planning and Analysis

Location decisions confront both new and existing organizations. Growth, market shifts, depletion of raw materials, and the introduction of new products and services are among the reasons organizations are concerned with location decisions. The importance of these decisions is underscored by the long-term commitment they typically involve and by their potential impact on the operating system. The primary location options available to existing organizations are to expand an existing location, move to a new location, maintain existing facilities while adding another facility in a new location, or do nothing.

This week we will look at the major influences on location decisions: location of raw materials, labor supply, market considerations, community-related factors, site-related factors, and climate. Foreign locations may be attractive in terms of labor costs, abundance of raw materials, or as potential markets for a firm’s products or services. Problems organizations sometimes encounter in foreign countries include language differences, cultural differences, bias, and political instability.

We will also look at common approaches to selecting a location.

Objectives

By the end of this week, students will be able to:

Explain and discuss how manufacturing companies can design jobs that optimize efficiency/low cost and human development.
Develop and discuss job design concepts from a Biblical perspective.
Define, recall, and identify terms and concepts associated with controlling processes, decision-making in operations management, Pareto, outsourcing, revenue management, competitive strategy, reliability, product design, product families, Kano model, efficiency, utilization, capacity planning, systems, job design and enlargement, methods analysis, operation cycles, and location analysis.
Explain ethical issues that pertain to operations management.

Operations ManagementMcGraw-Hill Education; 13thedition (February 15, 2017) by William J Stevensone-copyTextbook with Connect access code: ISBN13: 978-1259948206

Read: Stevenson, Chapters 7-8

**** I will only need the 2 responses !

125-200 words each

Using your research to either add to or challenge their position.

At least one reference each. Work Design and
Measurement
Copyright ©2018 McGraw-Hill Higher Education
7-1
You should be able to:
LO 7.1
LO 7.2
LO 7.3
LO 7.4
LO 7.5
LO 7.6
Explain the importance of work design
Compare and contrast the two basic approaches to job design
Discuss the advantages and disadvantages of standardization
Describe behavioral approaches to job design
Discuss the impact of working conditions on job design
Compare the advantages and disadvantages of time-based and outputbased pay systems
LO 7.7 Explain the purpose of methods analysis and describe how methods
studies are performed
LO 7.8 Describe four commonly used techniques for motion study
LO 7.9 Define a standard time
LO 7.10 Describe and compare time study methods and perform calculations
LO 7.11 Describe work sampling and perform calculations
LO 7.12 Compare stopwatch time study and work sampling
Copyright ©2018 McGraw-Hill Higher Education
7-2
 Job design
 The act of specifying the contents and methods of jobs




What will be done in a job
Who will do the job
How the job will be done
Where the job will be done
 Importance
 Organization’s are dependent on human efforts to accomplish their
goals
 Many job design topics are relevant to continuous and productivity
improvement
 Objectives
 Productivity
 Safety
 Quality of work life
LO 7.1
Copyright ©2018 McGraw-Hill Higher Education
7-3
 Efficiency School
 Emphasizes a systematic, logical approach to job design
 A refinement of Frederick Winslow Taylor’s scientific
management concepts
 Behavioral School
 Emphasizes satisfaction of needs and wants of
employees
LO 7.2
Copyright ©2018 McGraw-Hill Higher Education
7-4
 Specialization
 Work that concentrates on some aspect of a product or
service
Advantages
For management:
1. Simplifies training
2. High productivity
3. Low wage costs
For employees:
1. Low education and skill requirements
2. Minimum responsibility
3. Little mental effort needed
Disadvantages
For management:
1. Difficult to motivate quality
2. Worker dissatisfaction, possibly
resulting in absenteeism, high
turnover, disruptive tactics, poor
attention to quality
LO 7.3
For employees:
1. Monotonous work
2. Limited opportunities for
advancement
3. Little control over work
4. Little opportunity for self-fulfillment
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7-5
 Job Enlargement

Giving a worker a larger portion of the total task by
horizontal loading
 Job Rotation

Workers periodically exchange jobs
 Job Enrichment

LO 7.4
Increasing responsibility for planning and coordination
tasks, by vertical loading
Copyright ©2018 McGraw-Hill Higher Education
7-6
 Motivation is a key factor in many aspects of work life
 Influences quality and productivity
 Contributes to the work environment
 Trust is an important factor that affects motivation
Copyright ©2018 McGraw-Hill Higher Education
7-7
 Teams take a variety of forms:
 Short-term team
 Formed to collaborate on a topic or solve a problem
 Long-term teams
 Self-directed teams
 Groups empowered to make certain changes in their work
processes
Copyright ©2018 McGraw-Hill Higher Education
7-8
 Benefits of teams
 Higher quality
 Higher productivity
 Greater worker satisfaction
 Team problems
 Some managers feel threatened
 Conflicts between team members
Copyright ©2018 McGraw-Hill Higher Education
7-9
 Quality of work life affects not only workers’ overall
sense of well-being and contentment, but also their
productivity
 Important aspects of quality of work life:
 How a worker gets along with co-workers
 Quality of management
 Working conditions
 Compensation
LO 7.5
Copyright ©2018 McGraw-Hill Higher Education
7-10
 It is important for organizations to develop suitable
compensation plans for their employees
 Compensation approaches
 Time-based systems
 Output-based systems
 Incentive systems
 Knowledge-based systems
Copyright ©2018 McGraw-Hill Higher Education
7-11
 Time-based system
 Compensation based on time an employee has worked
during the pay period
 Output-based (incentive) system
 Compensation based on amount of output an employee
produced during the pay period
Copyright ©2018 McGraw-Hill Higher Education
7-12
TIME-BASED
Advantages
Disadvantages
OUTPUT-BASED
Advantages
Disadvantages
Management
Worker
1.
2.
3.
4.
Stable labor costs
Easy to administer
Simple to compute pay
Stable Output
1.
2.
Stable pay
Less pressure to produce
than under output system
1.
No incentive for workers to
increase output
1.
Extra efforts not rewarded
1.
2.
Lower cost per unit
Greater output
1.
2.
Pay related to efforts
Opportunity to earn more
1.
Wage computation more
difficult
Need to measure output
Quality may suffer
Difficult to incorporate wage
increases
Increased problems with
scheduling
1.
2.
Pay fluctuates
Workers may be penalized
because of factors beyond
their control (e.g., machine
breakdown)
2.
3.
4.
5.
LO 7.6
Copyright ©2018 McGraw-Hill Higher Education
7-13
 Individual incentive plans
 Straight piecework
 Worker’s pay is a direct linear function of his or her output
 Minimum wage legislation has reduced their popularity
 Base rate + bonus
 Worker is guaranteed a base rate, tied to an output standard,
that serves as a minimum
 A bonus is paid for output above the standard
 Group incentive plans
 Tend to stress sharing of productivity gains with employees
Copyright ©2018 McGraw-Hill Higher Education
7-14
 Knowledge-based pay
 A pay system used by organizations to reward workers who undergo
training that increases their skills
 Three dimensions:
 Horizontal skills
 Reflect the variety of tasks the worker is capable of performing
 Vertical skills
 Reflect the managerial skills the worker is capable of
 Depth skills
 Reflect quality and productivity results
Copyright ©2018 McGraw-Hill Higher Education
7-15
 Many organizations used to reward managers based on
output
 New emphasis is being placed on other factors of
performance
 Customer service
 Quality
 Executive pay is increasingly being tied to the success of
the company or division for which the executive is
responsible
Copyright ©2018 McGraw-Hill Higher Education
7-16
 Methods Analysis
 Analyzing how a job gets done
 It begins with an analysis of the overall operation
 It then moves from general to specific details of the job
concentrating on
 Workplace arrangement
 Movement of workers and/or materials
LO 7.7
Copyright ©2018 McGraw-Hill Higher Education
7-17
 The need for methods analysis can arise from a variety
of sources
1.
2.
3.
4.
5.
LO 7.7
Changes in tools and equipment
Changes in product design or introduction of new
products
Changes in materials and procedures
Government regulations or contractual agreements
Accidents or quality problems
Copyright ©2018 McGraw-Hill Higher Education
7-18
Identify the operation to be studied, and gather relevant data
2. Discuss the job with the operator and supervisor to get their
input
3. Study and document the present methods
4. Analyze the job
5. Propose new methods
6. Install the new methods
7. Follow up implementation to assure improvements have been
achieved
1.
LO 7.7
Copyright ©2018 McGraw-Hill Higher Education
7-19
 Consider jobs that:
Have a high labor content
2. Are done frequently
3. Are unsafe, tiring, unpleasant, and/or noisy
4. Are designated as problems
1.
 Quality problems
 Processing bottlenecks
 etc.
LO 7.7
Copyright ©2018 McGraw-Hill Higher Education
7-20
 Flow process chart
 Chart used to examine the overall sequence of an operation by
focusing on movements of the operator or flow of materials
LO 7.7
Copyright ©2018 McGraw-Hill Higher Education
7-21
 Worker machine chart
 Chart used to determine portions of a work cycle during which an
operator and equipment are busy or idle
LO 7.7
Copyright ©2018 McGraw-Hill Higher Education
7-22
 Motion study
 Systematic study of the human motions used to perform an
operation
 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– activity or process charts, simo charts (simultaneous
motions)
LO 7.8
Copyright ©2018 McGraw-Hill Higher Education
7-23
 In developing work methods that are motion efficient,
the analyst attempts to
 Eliminate unnecessary motions
 Combine activities
 Reduce fatigue
 Improve the arrangement of the workplace
 Improve the design of tools and equipment
LO 7.8
Copyright ©2018 McGraw-Hill Higher Education
7-24
 Work measurement is concerned with how long it
should take to complete a job.
 It is not concerned with either job content or how the
job is to be completed since these are considered a
given when considering work measurement.
LO 7.9
Copyright ©2018 McGraw-Hill Higher Education
7-25
 Standard time
 The amount of time it should take a qualified worker to complete a
specified task, working at a sustainable rate, using given methods,
tools and equipment, raw material inputs, and workplace
arrangement.
 Commonly used work measurement techniques
 Stopwatch time study
 Historical times
 Predetermined data
 Work sampling
LO 7.9
Copyright ©2018 McGraw-Hill Higher Education
7-26
 Stopwatch Time Study
 Used to develop a time standard based on observations of one
worker taken over a number of cycles.
 Standard Elemental Times
 are derived from a firm’s own historical time study data.
 Predetermined time standards
 involve the use of published data on standard elemental times.
 Work sampling
 a technique for estimating the proportion of time that a worker or
machine spends on various activities and idle time.
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
7-27
 Used to develop a time standard based on observations of
one worker taken over a number of cycles.
 Basic steps in a time study:
1.
2.
3.
4.
LO 7.10
Define the task to be studied and inform the worker who will be
studied
Determine the number of cycles to observe
Time the job, and rate the worker’s performance
Compute the standard time
Copyright ©2018 McGraw-Hill Higher Education
7-28
 The number of observations to collect is a function of
 Variability of the observed times
 The desired level of accuracy
 Desired level of confidence for the estimated job time
2
2
 zs 
 zs 
n= 
or n =  
 ax 
e
where
z =# of normal stddev. needed for desired confidence
s = Sample standard deviation
a = Desired accuracy percentage
e = Maximum acceptable error
LO 7.10
x = Sample mean
Copyright ©2018 McGraw-Hill Higher Education
7-29
x

OT =
i
n
where
OT = Observed time
x
i
= Sum of recorded times
n = Number of observatio ns
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
7-30
NT = OT  PR
where
NT = Normal time
PR = Performanc e rating
Assumes that a single performance rating has been made
for the entire job
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
7-31
(
NT =  x j  PR j
)
where
NT = Normal time
x j = Average time for element j
PR j = Performanc e rating for element j
Assumes that performance ratings are made on an elementby-element basis
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
7-32
ST = NT  AF
where
ST = Standard time
AF = Allowance factor
and
AFjob = 1 + A
A = Allowance percentage based on job time
AFday
LO 7.10
1
=
1− A
A = Allowance percentage based on workday
Copyright ©2018 McGraw-Hill Higher Education
7-33
 Standard Elemental Times are derived from a
firm’s own historical time study data.
 Over time, a file of accumulated elemental times that
are common to many jobs will be collected.
 In time, these standard elemental times can be retrieved
from the file, eliminating the need to go through a new
time study to acquire them.
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
7-34
 Predetermined time standards involve the use of
published data on standard elemental times.
 Developed in the 1940s by the Methods Engineering Council.
 The MTM (methods-time-measurement) tables are based on
extensive research of basic elemental motions and times.
 To use this approach, the analyst must divide the job into its basic
elements (reach, move, turn, etc.) measure the distances involved,
and rate the difficulty of the element, and then refer to the
appropriate table of data to obtain the time for that element
LO 7.10
Copyright ©2018 McGraw-Hill Higher Education
7-35
 Work sampling is a technique for estimating the
proportion of time that a worker or machine spends
on various activities and the idle time.
 Work sampling does not require timing an activity or involve
continuous observation of the activity
 Uses:
1. ratio-delay studies which concern the percentage of a worker’s
time that involves unavoidable delays or the proportion of time
a machine is idle.
2. analysis of non-repetitive jobs.
LO 7.11
Copyright ©2018 McGraw-Hill Higher Education
7-36
pˆ (1 − pˆ )
n
z = Number of standard deviations needed to achieve desired confidence
pˆ = Sample proportion (the number of occurrence s divided by the sample size
n = Sample size
e=z
2
z
n =   pˆ (1 − pˆ )
e
e = maximum error percent
LO 7.11
Copyright ©2018 McGraw-Hill Higher Education
7-37
Advantages
1.
2.
3.
4.
5.
6.
7.
Observations are spread out over a period of time, making results less susceptible to short-term
fluctuations
There is little or no disruption of work
Workers are less resentful
Studies are less costly and less time-consuming, and the skill requirements of the analyst are
much less
Studies can be interrupted without affecting the results
No timing device is required
It is well suited for nonrepetitive tasks
Disadvantages
1.
2.
3.
4.
5.
6.
There is much less detail on the elements of a job
Workers may alter their work patterns when they spot the observer, thereby invalidating the
results
In many cases, there is no record of the method used by the worker
Observers may fail to adhere to a random schedule of observations
It is not well suited for short, repetitive tasks
Much time may be required to move from one workplace to another and back to satisfy the
randomness requirement
LO 7.12
Copyright ©2018 McGraw-Hill Higher Education
7-38
 Success factors:
 Carried out by personnel with appropriate training and
background
 Consistent with the goals of the organization
 In written form
 Understood and agreed to by both management and
employees
Copyright ©2018 McGraw-Hill Higher Education
7-39
 It is important to make design of work systems a key
element of strategy:
 People are still at the heart of the business
 Workers can be valuable sources of insight and creativity
 It can be beneficial to focus on quality of work life and
instilling pride and respect among workers
 Companies are reaping gains through worker
empowerment
Copyright ©2018 McGraw-Hill Higher Education
7-40
Location Planning
and Analysis
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or
distribution without the prior written consent of McGraw-Hill Education
8-1
You should be able to:
LO 8.1 Identify some of the main reasons organizations need to
make location decisions
LO 8.2 Explain why location decisions are important
LO 8.3 Discuss the options that are available for location
decisions
LO 8.4 Give examples of the major factors that affect location
decisions
LO 8.5 Outline the decision process for making these kinds of
decisions
LO 8.6 Use the techniques presented to solve typical problems
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
8-2
 Location decisions arise for a variety of reasons:
 Addition of new facilities
 As part of a marketing strategy to expand markets
 Growth in demand that cannot be satisfied by expanding
existing facilities
 Depletion of basic inputs requires relocation
 Shift in markets
 Cost of doing business at a particular location makes
relocation attractive
LO 8.1
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education
8-3
 Location decisions:
 Are closely tied to an organization’s strategies
 Low-cost
 Convenience to attract market share
 Effect capacity and flexibility
 Represent a long-term commitment of resources
 Effect investment requirements, operating costs, revenues, and operations
 Impact competitive advantage
 Importance to supply chains
LO 8.2
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education
8-4
 Location decisions are based on:
 Profit potential or cost and customer service
 Finding a number of acceptable locations from which to choose
 Position in the supply chain
 End: accessibility, consumer demographics, traffic patterns, and local customs
are important
 Middle: locate near suppliers or markets
 Beginning: locate near the source of raw materials
 Web-based retail organizations are effectively location independent
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
8-5
 Supply chain management must address supply chain
configuration:
 Number and location of suppliers, production facilities,
warehouses and distribution centers
 Centralized vs. decentralized distribution
 The importance of such decisions is underscored by their
reflection of the basic strategy for accessing customer
markets
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
8-6
 Existing companies generally have four options
available in location planning:
1.
2.
3.
4.
LO 8.3
Expand an existing facility
Add new locations while retaining existing facilities
Shut down one location and move to another
Do nothing
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without
the prior written consent of McGraw-Hill Education
8-7
 Two key factors have contributed to the attractiveness
of globalization:
 Trade agreements such as
 North American Free Trade Agreement (NAFTA)
 General Agreement on Tariffs and Trade (GATT)
 U.S.-China Trade Relations Act
 EU and WTO efforts to facilitate trade
 Technology
 Advances in communication and information technology
LO 8.3
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education
8-8
 A wide range of benefits have accrued to organizations
that have globalized operations:
 Markets
 Cost savings
 Legal and regulatory
 Financial
 Other
LO 8.4
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education
8-9
 There are a number of disadvantages that may
arise when locating globally:
…
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