PRODUCTION

AND
OPERATIONS MANAGEMENT
Mar B. Cruz, MS
Department of Agribusiness Management and Entrepreneurship
College of Economics and Management
University of the Philippines Los Baños
College, Laguna
Course Outline
1. Introduction to Operations 9. Quality Management
Management 10. Inventory Management
2. Competitiveness, Strategies and 11. Material Requirements Planning
Productivity
12. Aggregate Planning
3. Forecasting
13. Lean Systems
4. Product and Service Design
14. Supply Chain Management
5. Strategic Capacity Planning
15. Scheduling
6. Process Selection and Facility
Layout 16. Project Management
7. Work Design and Measurement
8. Location Planning and Analysis

16 July 2016 [email protected] 2

Course Outline
1. Introduction to Operations 9. Quality Management
Management 10. Inventory Management
2. Competitiveness, Strategies and 11. Material Requirements Planning
Productivity
12. Aggregate Planning
3. Forecasting
13. Lean Systems
4. Product and Service Design
14. Supply Chain Management
5. Strategic Capacity Planning
15. Scheduling
6. Process Selection and Facility
Layout 16. Project Management
7. Work Design and Measurement
8. Location Planning and Analysis

16 July 2016 [email protected] 3

 WORK DESIGN
Mar B. Cruz, MS
Department of Agribusiness Management and Entrepreneurship
College of Economics and Management
University of the Philippines Los Baños
College, Laguna
Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 5

Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 6

 Introduction
236 (Stevenson) Chapter Six Process Selection and Facility Layout

FIGURE 6.1 Inputs Outputs

Process selection and capacity
planning influence system Facilities and
Forecasting
equipment
design
Capacity
Planning

Product and
Layout
service design

Process
Selection

Technological Work
change design

16 July 2016 [email protected] 7

Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 8

Quality of Work Life
• Why are you working?
• What often comes to your mind when you hear “quality of work life”?
• Primary aspects of quality of work life:
• Working conditions
• Compensation

16 July 2016 [email protected] 9

Quality of Work Life
• Why are you working?
• What often comes to your mind when you here “quality of work life”?
• Primary aspects of quality of work life:
• Working conditions
• Compensation

16 July 2016 [email protected] 10

Working Conditions
(Stevenson)

• How well does your organization performs under each aspect:

• Temperature
• Humidity
• Ventilation
• Illumination (Slack)
• Noise and vibrations (Slack)
• Work time and work breaks
• Occupational health care
• Safety

16 July 2016 [email protected] 11

Quality of Work Life
• Why are you working?
• What often comes to your mind when you here “quality of work life”?
• Primary aspects of quality of work life:
• Working conditions
• Compensation

16 July 2016 [email protected] 12

Compensation
(Stevenson)

• What happens If wages are too low?

• What happens if wages are too high?
• Examples of compensation systems:
• Time-based systems
• Output-based systems
• Knowledge-based systems
• Incentive plans:
• Individual
• Group
• An ideal compensation package is one that balances motivation,
profitability, and retention of good employees.

16 July 2016 [email protected] 13

 Chapter Seven Work Design and Measurement

Compensation Management Worker

(Stevenson)
TIME-BASED
Advantages 1. Stable labor costs 1. Stable pay
2. Easy to administer 2. Less pressure to produce
3. Simple to compute pay than under output system
4. Stable output
Disadvantages 1. No incentive for workers 1. Extra efforts not rewarded
to increase output
OUTPUT-BASED
Advantages 1. Lower cost per unit 1. Pay related to efforts
2. Greater output 2. Opportunity to earn more
Disadvantages 1. Wage computation 1. Pay fluctuates
more difficult 2. Workers may be penalized
2. Need to measure output because of factors beyond
3. Quality may suffer their control (e.g., machine
4. Difficult to incorporate breakdown)
wage increases
5. Increased problems with
scheduling

16 July 2016 [email protected] 14

Individual Incentive Plans. Individual incentive plans take a variety of forms. The sim-
Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 15

Job Design
(Stevenson)

• The act of specifying the contents and methods of jobs.

• Relevant questions:
• What will be done in a job?
• Who will do the job?
• How the job will be done?
• Where the job will be done?
• Behavioral approaches to job design:
• Job enlargement
• Job rotation
• Job enrichment

16 July 2016 [email protected] 16

Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 17

Methods Analysis
(Stevenson)

• Analyzing how a job is done.

• Is this for new jobs only?
• The need for methods analysis can come from a number of different
sources:
• Changes in tools and equipment.
• Changes in product design or introduction of new products.
• Changes in materials or procedures.
• Government regulations or contractual agreements.
• Other factors (e.g., accidents, quality problems).

16 July 2016 [email protected] 18

Methods Analysis
(Stevenson)

• The basic procedure in methods analysis is as follows:

1. Identify the operation to be studied, and gather all pertinent facts about tools,
equipment, materials, and so on.
2. For existing jobs, discuss the job with the operator and supervisor to get their
input.
3. Study and document the present method of an existing job using process charts.
For new jobs, develop charts based on information about the activities involved.
4. Analyze the job.
5. Propose new methods.
6. Install the new methods.
7. Follow up implementation to assure that improvements have been achieved.

16 July 2016 [email protected] 19

Methods Analysis
(Stevenson)

• The basic procedure in methods analysis is as follows:

1. Identify the operation to be studied, and gather all pertinent facts about tools,
equipment, materials, and so on.
2. For existing jobs, discuss the job with the operator and supervisor to get their
input.
3. Study and document the present method of an existing job using process charts.
For new jobs, develop charts based on information about the activities involved.
4. Analyze the job.
5. Propose new methods.
6. Install the new methods.
7. Follow up implementation to assure that improvements have been achieved.

16 July 2016 [email protected] 20

Selecting an Operation to Study
(Stevenson)

• Criteria in selecting an operation to study:

• Have a high labor content
• Done frequently
• Unsafe, tiring, unpleasant, and/or noisy
• Designated as problems (e.g., quality problems, processing bottlenecks)

16 July 2016 [email protected] 21

Methods Analysis
(Stevenson)

• The basic procedure in methods analysis is as follows:

1. Identify the operation to be studied, and gather all pertinent facts about tools,
equipment, materials, and so on.
2. For existing jobs, discuss the job with the operator and supervisor to get their
input.
3. Study and document the present method of an existing job using process charts.
For new jobs, develop charts based on information about the activities involved.
4. Analyze the job.
5. Propose new methods.
6. Install the new methods.
7. Follow up implementation to assure that improvements have been achieved.

16 July 2016 [email protected] 22

Methods Analysis
(Stevenson)

• The basic procedure in methods analysis is as follows:

1. Identify the operation to be studied, and gather all pertinent facts about tools,
equipment, materials, and so on.
2. For existing jobs, discuss the job with the operator and supervisor to get their
input.
3. Study and document the present method of an existing job using process charts.
For new jobs, develop charts based on information about the activities involved.
4. Analyze the job.
5. Propose new methods.
6. Install the new methods.
7. Follow up implementation to assure that improvements have been achieved.

16 July 2016 [email protected] 23

Analyzing the Job and Proposing New Methods
(Stevenson)

• Job analysis requires careful thought about the:

• What
• Why
• When
• Where
• Who
• Tools/approaches:
• Flow process charts
• Worker-machine charts
• Motion studies

16 July 2016 [email protected] 24

 Operation
F

Flow Process Charts

P

S
Chapter Seven Work Design and Measurement A large circle indi-
cates an operation Computer/word
M
1
(Stevenson) such as

Transportation
Drive nail Mix processing s

7.4

ment

ction
ation
FLOW PROCESS CHART ANALYST PAGE

ge
a flow process chart Job Requisition of petty cash
_______________________ D. Kolb 1 of 2

Move

Delay
Inspe

Stora
Oper
Details of method An arrow indicates
Requisition made out by department head a transportation, Move material by Move material by
s M. Awad, Systems Analysis such as Move material by cart conveyor carrying (messenger)
4th ed. Copyright © 1985 by Put in “pick-up” basket
Storage
win, Inc. Used by permission To accounting department
Hill Companies, Inc., p. 113.
Account and signature verified

Amount approved by treasurer A triangle indicates

a storage, Raw material in Finished stock Protective filing
Amount counted by cashier such as bulk storage stacked on pallets of documents
Amount recorded by bookkeeper Delay 4
23 5 6
1 7

Petty cash sealed in envelope

Petty cash carried to department
Petty cash checked against requisition A large Capital D Material in truck
indicates a delay, or on floor at bench Papers waiting
Receipt signed such as Wait for elevator waiting to be processed to be filed

Petty cash stored in safety box Inspection

DANGER Rules and
Regulation
s
1. Obey
all rules
respect supe and
rvisor.
2. Work hard
at all times
3. No loafin
g on the
unless appro job
HOT your supe ved by
COLD rvisor.
4. Follow
all previ
rules if poss ous
ible.

WARM

A square indicates
an inspection, Examine material for Read steam gauge Examine printed form
such as quality or quantity on boiler for information

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Flow Process Charts
(Stevenson)

• Questions to ask:
• Why is there a delay or storage at this point?
• How can travel distances be shortened or avoided?
• Can materials handling be reduced?
• Would a rearrangement of the workplace result in greater efficiency?
• Can similar activities be grouped?
• Would the use of additional or improved equipment be helpful?
• Does the worker have any ideas for improvements?

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 Worker-Machine Charts
Chapter Seven Work Design and Measurement 299

Product: Bulk Food Operator: Customer FIGURE 7.5

Process: Weigh/price Charted by: R.G. Worker-machine chart
Time
Step Customer Machine
(seconds)

1 Customer places 0
on scale
1

2 Enters product code 2

3 3 Calculates and displays
Obtains price sticker total price. Dispenses
4 price sticker.
4 and removes bag
5
Places price sticker
5 on bag 6
7

Summary
Customer Machine

Time Time
(seconds) % (seconds) %
Work 7 87.5 1 12.5
Idle 1 12.5 7 87.5

(Stevenson)
(Russell & Taylor)
UDY 16 July 2016 [email protected] 27
Motion Studies
(Stevenson)

• Pioneered by Frank and Lilian Gilbreth

• The most-used techniques are the following:
• Motion study principles
• Analysis of therbligs
• Micromotion study
• Charts

16 July 2016 [email protected] 28

 Hold refers to retention of an object after it has been grasped.
Transport load means movement of an object after hold.
Motion Studies Motion study principles:
Release load means to deposit the object.
(Stevenson)
7.5 A. The use of the human body. Examples:
study principles 1. Both hands should begin and end their basic divisions of accomplishment simultaneously and
should not be idle at the same instant, except during rest periods.
dapted from Benjamin W. Niebel, 2. The motions made by the hands should be made symmetrically.
Time Study, 8th ed. Copyright ©
rd D. Irwin, Inc. Used by permis-
3. Continuous curved motions are preferable to straight-line motions involving sudden and sharp
Graw-Hill Companies, Inc., changes in direction.
7. B. The arrangement and conditions of the workplace. Examples:
1. Fixed locations for all tools and material should be located to permit the best sequence and to
eliminate or reduce the therbligs’ search and select.
2. Gravity bins and drop delivery should reduce reach and move times; wherever possible, ejec-
tors should remove finished parts automatically.
C. The design of tools and equipment. Examples:
1. All levers, handles, wheels, and other control devices should be readily accessible to the
operator and designed to give the best possible mechanical advantage and to utilize the
strongest available muscle group.
2. Parts should be held in position by fixtures.

16 July 2016 [email protected] 29

Methods Analysis
(Stevenson)

• The basic procedure in methods analysis is as follows:

1. Identify the operation to be studied, and gather all pertinent facts about tools,
equipment, materials, and so on.
2. For existing jobs, discuss the job with the operator and supervisor to get their
input.
3. Study and document the present method of an existing job using process charts.
For new jobs, develop charts based on information about the activities involved.
4. Analyze the job.
5. Propose new methods.
6. Install the new methods.
7. Follow up implementation to assure that improvements have been achieved.

16 July 2016 [email protected] 30

Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 31

Work Measurement
(Stevenson)

• Work measurement is concerned with determining the length of time

it should take to complete the job.
• In what situations knowing job times are important?
• Standard time is 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.

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Work Measurement
(Stevenson)

• The most commonly used methods of work measurement are

• Stopwatch time study
• Historical times
• Predetermined data
• Work sampling

16 July 2016 [email protected] 33

Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
Ergonomics
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 34

Ergonomics
(Stevenson)

• Ergonomics (or human factors) is the scientific discipline concerned

with the understanding of interactions among humans and other
elements of a system, and the profession that applies theory,
principles, data and methods to design in order to optimize human
well-being and overall system performance.

16 July 2016 [email protected] 35

 1. Have a high labor content.
2. Are done frequently.

Ergonomics
3. Are unsafe, tiring, unpleasant, and/or noisy.
4. Are designated as problems (e.g., quality problems, processing bottlenecks).

(Stevenson)

The most common ergonomic risk factors are awkward postures, excessive force for lifting, pushing, pulling, and gripping, and
repetition involving the same group of muscles. On the left, the worker was using a pistol grip driver in a vertical application which was
placing her into a poor shoulder posture. She was experiencing increasing pain in her right shoulder. On the right, by modifying the
tools being used, the worker is now into a good shoulder posture.

16 July 2016 [email protected] 36

Ergonomics

safetyservices.ucdavis.edu

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Ergonomics

www.microsoft.com
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Ergonomics

www.trulyergonomic.com

www.trulyergonomic.com

www.versatables.com

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Ergonomics

www.learneasy.info

www.copybook.com

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Ergonomics
(Slack)

16 July 2016 Figure 9.6 The use of anthropometric data in [email protected]

design 41
Flow of Discussion
1. Review
2. Introduction
3. Quality of Work Life
4. Job Design
5. Methods Analysis
6. Work Measurement
7. Summary/Conclusion

16 July 2016 [email protected] 42

 Thank you very much for listening.

16 July 2016 [email protected] 43