Global competition has prompted organizations to utilize human resources as a way of gaining a competitive advantage. To improve the working experience, operation managers should plan labor, design jobs and introduce standards that improve individual and team performance.
Planning involves matching the available labor force with demand or holding employment constant. Work schedules are determined by the nature of the industry. Some industries like food and beverage require fixed schedules, while others allow the employees to schedule their programs, and give them independence (Heizer and Barry 384-385).
In the past, job specialization was used by managers to improve production. Today, management is not only concerned about production, but also on the work life that employees lead. A varied job design makes work interesting and gives employees an opportunity to utilize their potential.
Work variety benefits both the employees and the organization. Employees acquire diverse skills and can identify with their jobs from the start to the end. Through feedback, they realize the significance of their jobs. This recognition gives them a sense of self worth, independence and freedom to make decisions (Heizer and Barry 386-388).
Team work promotes productivity because working together empowers employees, and satisfies them psychologically. When employees are empowered, their potential is maximized and productivity is increased. Satisfied employees put an organization ahead of its competitors. However teams may be costly and result in individual differences if not managed well. To overcome this limitation, operation managers can boost enthusiasm through incentives and recognition (Heizer and Barry 387-389).
Ergonomics help in maximizing employees’ capabilities and learning their limitation as well. When employees’ safety and the general welfare are minded, it encourages them to give their best, and this improves performance. Promoting information sharing improves communication to make task completion fast and effective.
Defining labor standards ensures that time is managed well. It also disciplines employees to be time conscious and effective in their work. They learn how to manage their time for maximum productivity. Organizations may produce the same products using the same procedures. However, establishing a work culture puts an organization ahead of its competitors (Heizer and Barry 389-396).
Case Study
Question 1
The standard deviation is 3.
Idle proportion is 6% = 0.06.
Acceptable error level is 2%. Therefore, the sample should be;
3*3*0.06 (1-0.06) divided by 0.02* 0.02.
The answer is 1269 observations (Heizer and Barry 404).
Question 2
Based on the above result, the sample size used was not adequate (Heizer and Barry 404).
Question 3
The company should produce an average of 92 units per day for it to meet the expected 460 per week. This is based on 115% performance rating.
Question 4
Cost per unit in direct labor cost will be based on the average observed time. In this case, the average time is 1.90 minutes (total time taken divided by seventeen). It is then multiplied by the performance rating (1.90 * 1.15) to make it 2.185 minutes (Heizer and Barry 397). It takes one person 2.185 minutes to make one unit.
Making one unit requires 1269 people. The cost per min per person will be 12.5 dollars divide by 60 minutes. One person costs 0.21 dollars per minute. It costs (0.21* 2.185) dollars for one person to work on one unit. 0.21 multiplied by 2.185 is equal to 0.46. For 1269 operators, the cost will be (0.46* 1269). The labor cost for one unit is 583.74 dollars (Heizer and Barry 413).
Works Cited
Heizer, Jay H, and Barry Render. Principles of Operations Management. Upper Saddle River, New Jersey: Pearson Prentice Hall, 2006. Print.