Module 6 Flashcards
Labor planning
determining staffing policies that deal with (1) employment stability, (2) work schedules, and (3) work rules.
What is the first basic policy for dealing with stability?
Follow demand exactly: This policy keeps direct labor costs tied to production but incurs other costs such as hiring and layoff costs, unemployment insurance, and premium wages to entice personnel to accept unstable employment.
This policy tends to treat labor as a variable cost.
What are the costs associated with following demand exactly?
The costs include (a) hiring and layoff costs, (b) unemployment insurance, and (c) premium wages to entice personnel to accept unstable employment.
What is the second basic policy for dealing with stability?
Hold employment constant: This policy maintains a trained workforce and keeps hiring, layoff, and unemployment costs to a minimum.
This policy tends to treat labor as a fixed cost.
What are the drawbacks of holding employment constant?
Employees may not be utilized fully when demand is low, and the firm may not have the human resources it needs when demand is high.
Job Design
specifies the tasks that constitute a job for an individual or a group.
Labor Specialization
the division of labor into unique special tasks
How does labor specialization assist in reducing costs
Development of dexterity and faster learning by the employee because of repetition
Less loss of time because the employee would not be changing jobs or tools
Development of specialized tools and the reduction of investment because each employee has only a few tools needed for a particular task
Job Enlargement
the grouping of a variety of tasks about the same skill level; horizontal enlargement
Job Rotation
a version of job enlargement that occurs when the employee is allowed to move from one specialized job to another
Job Enrichment
a method of giving and employee more responsibility that includes some of the planning and control necessary for job accomplishment; vertical expansion
J. R. Hackman and G. R. Oldham’s five desirable characteristics of job design
Skill variety, requiring the worker to use a variety of skills and talents
Job identity, allowing the worker to perceive the job as a whole and recognize a start and a finish
Job significance, providing a sense that the job has an impact on the organization and society
Autonomy, offering freedom, independence, and discretion
Feedback, providing clear, timely information about performance
Self Directed Team
a group of empowered individuals working together to reach a common goal
Costs of expanded job designs
Higher capital cost: Job expansion may require additional equipment and facilities.
♦ Individual differences: Some employees opt for the less-complex jobs.
♦ Higher wage rates: Expanded jobs may well require a higher average wage.
♦ Smaller labor pool: Because expanded jobs require more skill and acceptance of more responsibility, job requirements have increased.
♦ Higher training costs: Job expansion requires training and cross-training. Therefore, training budgets need to increase.
Method Analysis
a system that involves developing work procedures that are safe and produce quality proudcts efficiently
Activity Charts
used to study and improve the utilization of an operator and a machine or some combination of operators (a “crew”) and machines
Operations Chart
a chart depicting right and left hand motions
Visual Workplace
low-cost visual devices to share information quickly and accurately.
Labor Standards
the amount of time required to perform a job or part of a job, and they exist, formally or informally, for all jobs
Effective Operations management requires meaningful standards such as:
Labor content of items produced (the labor cost)
Staffing needs (how many people it will take to meet required production)
Cost and time estimates prior to production (to assist in a variety of decisions, from cost estimates to make-or-buy decisions)
Crew size and work balance (who does what in a group activity or on an assembly line)
Expected production (so that both manager and worker know what constitutes a fair day’s work)
Basis of wage-incentive plans (what provides a reasonable incentive)
Efficiency of employees and supervision (a standard is necessary against which to determine efficiency)
How are labor standards set?
Historical experience
Time studies
Predetermined time standards
Work sampling
Time Study
timing a sample of a worker’s performance and using it as a basis for setting a standard time
Average observed time
arithmetic mean of the times for each element measured, adjusted for unusual influence for each
element
Normal Time equation
= averaged observed time * performance rating factor
Standard Time
an adjustment to the normal time; the adjustment provides allowances for personal needs, unavoidable delays, and fatigue
Standard time formula
= normal time / (1-allowance factor)
Predetermined Standard Times
divide manual work into small basic elements that already have established times
Therbligs
basic physical elements of motion
Time measurement units
TMUs - units for very basic micromotions in which 1 TMU=.0006min or 100,000 TMUs=1hr
Work Sampling
an estimate, via sampling, of the percentage of time that a worker spends on various tasks
Work Sampling Advantages
- Single observer can observe mutliple workers at once
- Obervers don’t require much training
- Study can be temp delayed at any time
- instant observations - less chance for worker to influence outcome
Work Sampling Disavantages
- does not divide work elements as completely as time studies
- it can yield biased or incorrect results if observer is not following random routes of travel and observation
- less obtrusive so often less accurate
Learning Curves
the premise that people and organizations get better at their tasks as teh tasks are repeated; sometimes called experience curves
Learning curve formula
Based on doubling (Ie 4th unit needs to double 2 times(1-2,2-4)
T*L^n
T= unit cost or unit time first unit
L=learning curve rate
n =number times T is doubled
