What tools discussed in the chapter might be employed to enhance the company’s training and performance efforts? Why?Explain

CHAPTER 10 I HUMAN RESOURCES, JOB DESIGN, AND WORK MEASUREMENT

A time study has revealed an average observed time of 5 minutes, with a standard deviation of 1.25 minutes. These figures are based on a sample of 75 cycles. Is this sample large enough for analyst Anand Paul to be 99.73% confident that the standard time is within 5% of the true value?

Additional problems 10.45-10.46, available in My Lab Operations Management, compute sample sizes needed for desired accuracy levels.

CASE STUDIES

Jackson Manufacturing Company

Kathleen McFadden, vice president of operations at Jackson Manufacturing Company, has just received a request for quote (RFQ) from DeKalb Electric Supply for 400 units per week of a motor armature. The components are standard and either easy to work into the existing production schedule or readily available from established suppliers on a just-in-time (JIT) basis. But there is some difference in assembly. Ms. McFadden has identified eight tasks that Jackson must perform to assemble the armature. Seven of these tasks are very similar to ones performed by Jackson in the past; therefore, the average time and resulting labor standard of those tasks is known.

The eighth task, an overload test, requires performing a task that is very different from any performed previously, however. Kathleen has asked you to conduct a time study on the task to determine the standard time. Then an estimate can be made of the cost to assemble the armature. This information, combined with other cost data, will allow the firm to put together the information needed for the RFQ. To determine a standard time for the task, an employee from an existing assembly station was trained in the new assembly pro-cess. Once proficient, the employee was then asked to perform the task 17 times so a standard could be determined.

The actual times observed (in minutes) were as follows:

2.05 1.92 2.01 1.89 1.77 1.80 1.86

The worker had a 115% performance rating. The task can be performed in a sitting position at a well-designed ergonomic work-station in an air-conditioned facility. Although the arma-ture itself weighs 10.5 pounds, there is a carrier that holds it so that the operator need only rotate the armature. But the detail work remains high; therefore, the fatigue allowance should be 8%. The company has an established personal allowance of 6%. Delay should be very low. Previous studies of delay in this department average 2%. This standard is to use the same figure.

The workday is 7.5 hours, but operators are paid for 8 hours at an average of $12.50 per hour.
10 11 12 13 14 15 16 1.79 1.82 1.85 1.99 .83 1.93 .96
1.95 2.05

Discussion Questions

In your report to Ms. McFadden, you realize you will want to address several factors:

1. How big should the sample be for a statistically accurate stan-dard (at, say, the 99.73% confidence level and accuracy of ±5%)?

2. Is the sample size adequate?

3. How many units should be produced at this workstation per day?

4. What is the cost per unit for this task in direct labor cost?

Source: Professor Hank Maddux, Sam Houston State University

The “People” Focus: Human Resources at Alaska Airlines
Video Case boo

With thousands of employees spread across nearly 100 locations in the United States, Mexico, and Canada, building a commit-ted and cohesive workforce is a challenge. Yet Alaska Airlines is making it work. The company’s “people” focus states: While airplanes and technology enable us to do what we do, we recognize this is fundamentally a people business, and our future depends on how we work together to win in this extremely com-petitive environment. As we grow, we want to strengthen our small company feel… We will succeed where others fail because of our pride and passion, and because of the way we treat our customers, our suppliers and partners, and each other. Managerial excellence requires a committed workforce.

Alaska Airlines’ pledge of respect for people is one of the key ele-ments of a world-class operation. Effective organizations require talented, committed, and trained personnel. Alaska Airlines conducts comprehensive train-ing at all levels. Its “Flight Path” leadership training for all 10,000 employees is now being followed by “Gear Up” training for 800 front-line managers. In addition, training programs have been developed for Lean and Six Sigma as well as for the unique require-ments for pilots, flight attendants, baggage, and ramp personnel.

Because the company only hires pilots into first officer positions the right seat in the cockpit, it offers a program called the “Fourth Stripe” to train for promotion into the captain’s seat on the left side, along with all the additional responsibility that entails. Customer service agents receive specific training on the com-pany’s “Empowerment Toolkit.” Like the Ritz-Carlton’s famous customer service philosophy, agents have the option of awarding customers hotel and meal vouchers or frequent flier miles when the customer has experienced a service problem. Because many managers are cross-trained in operational duties outside the scope of their daily positions, they have the ability to pitch in to ensure that customer-oriented processes go smoothly.

Even John Ladner, Director of Seattle Airport Operations, who is a fully licensed pilot, has left his desk to cover a flight at the last minute for a sick colleague. Along with providing development and training at all levels, managers recognize that inherent personal traits can make a huge difference.

For example, when flight attendants are hired, the ones who are still engaged, smiling, and fresh at the end of a very long interview day are the ones Alaska wants on the team. Why?

The job requires these behaviors and attitudes to fit with the Alaska Airlines team and smiling and friendly flight attendants are particularly important at the end of a long flight.

PART 2 DESIGNING OPERATIONS

Visual workplace tools also complement and close the loop that matches training to performance. Alaska Airlines makes full use of color-coded graphs and charts to report performance against key metrics to employees. Twenty top managers gather weekly in an operations leadership meeting, run by Executive VP of Operations, Ben Minicucci, to review activity consolidated into visual summaries. Key metrics are color-coded and posted prominently in every work area. Alaska’s training approach results in empowered employees who are willing to assume added responsibility and accept the unknowns that come with that added responsibility.

Discussion Questions

1. Summarize Alaska Airlines’ human resources focus in your own words.

2. Why is employee empowerment useful to companies such as Alaska Airlines?

3. What tools discussed in the chapter might be employed to enhance the company’s training and performance efforts? Why?

*Before answering these questions, you may wish to view the video that accompanies this case Hard Rock’s Human Resource Strategy Video Case gip

Everyone managers and hourly employees alike who goes to work for Hard Rock Cafe takes Rock 101, an initial 2-day train-ing class. The Hard Rock value system is to bring a fun, healthy, nurturing environment into the Hard Rock Cafe culture. This initial course and many other courses help employees develop both personally and professionally.

The human resource depart-ment plays a critical role in any service organization, but at Hard Rock, with its “experience strategy,” the human resource depart-ment takes on added importance. Long before Jim Knight, manager of corporate training, begins the class, the human resource strategy of Hard Rock has had an impact. Hard Rock’s strategic plan includes building a culture that allows for acceptance of substantial diversity and individuality. From a human resource perspective, this has the benefit of enlarging the pool of applicants as well as contributing to the Hard Rock culture.

Creating a work environment above and beyond a paycheck is a unique challenge. Outstanding pay and benefits are a start, but the key is to provide an environment that works for the employees. This includes benefits that start for part-timers who work at least 19 hours per week (while others in the industry start at 35 hours per week); a unique respect for individuality; continuing training; and a high level of internal promotions some 60% of the man-agers are promoted from hourly employee ranks. The company’s training is very specific, with job-oriented interactive DVDs cover-ing kitchen, retail, and front-of-the-house service. Outside volun-teer work is especially encouraged to foster a bond between the workers, their community, and issues of importance to them.

Applicants also are screened on their interest in music and their ability to tell a story. Hard Rock builds on a hiring criterion of bright, positive-attitude, self-motivated individuals with an employee bill of rights and substantial employee empowerment. The result is a unique culture and work environment, which no doubt contributes to the low turnover of hourly people one-half the industry average.

The layout, memorabilia, music, and videos are important ele-ments in the Hard Rock “experience,” but it falls on the waiters and waitresses to make the experience come alive. They are particularly focused on providing an authentic and memorable dining experi-ence. Like Alaska Airlines, Hard Rock is looking for people with a cause people who like to serve. By succeeding with its human resource strategy, Hard Rock obtains a competitive advantage.

Discussion Questions

1. What has Hard Rock done to lower employee turnover to half the industry average?

2. How does Hard Rock’s human resource department support the company’s overall strategy?

3. How would Hard Rock’s value system work for automo-bile assembly line workers? (Hint: Consider Hackman and Oldham’s core job characteristics.)

4. How might you adjust a traditional assembly line to address more “core job characteristics”?

*Before answering these questions, you may wish to view the video that accompanies this ease

• Additional Case Studies:

Visit MyLab Operations Management for these free case studies: Chicago Southern Hospital: Examines the requirements for a work-sampling plan for nurses.

The Fleet That Wanders: Requires a look at ergonomic issues for truck drivers.

 

 

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