PRODUCTION AND OPERATIONS MANAGEMENT

CASE No 4: MAKING HOTPLATES

April 2, 2016

BRIEF SUMMARY
The main concepts covered in this case are job design and work
measurement. Qualitative measurements were considered on job design
while basically quantitative on work measurements.
The case states that there were group of 10 workers held responsible
for assembling hotplates for hospital and medical laboratory use. With the
appropriate small tools, each worker assembles part of a hotplate and
through a moving belt, every partially completed hotplate is transferred to
different working stations until checked by an inspector then packed for
shipping.
The assembly line had been carefully balanced by industrial engineers.
However, work morale seemed to be low and controllable rejects-those
caused by the operator rather than by faulty materials-were running about
23 percent.
After discussing the situation, management decided to have their
workers build the hotplates individually. This made its productivity increased
to 84% higher and decreased controllable reject rates from 23% to 1%.

STATEMENT OF THE PROBLEM

Despite the carefully balanced assembly line made by industrial
engineers, how did the management respond to improve the companys
productivity and lessen its controllable rejects rate?

ALTERNATIVE COURSES OF ACTIONS

1. Redesign the workflow.
Advantages:
- Variety of skills.
- Improves production capacity
Disadvantages
-

Increases work burden

Increasing frustration of the employee

Problem with union members

Resistant to Change

2. Increase the responsibilities of assigned to each worker.

Advantages
-

The worker gets achievement, recognition and self-actualization.

The worker gets a sense of belonging to the organization.

The worker finds the job meaningful.

Job enrichment reduces absenteeism, labor-turnover and grievances.

It motivates the workers to give best performance.

Disadvantages
- Increase workload
- Lack of training
- poor performance
3. Employ Job Rotation

Advantages of Job Rotation:

-

Reduces the boredom and monotony through diversifying the

employees activities.

Employees with a wider range of skills give management more

flexibility in scheduling work, adapting to changes and filling
vacancies.

It broadens the range of experience of employees and is an

effective training technique.

Disadvantages:
-

Work is disrupted as rotated employees take time to adjust to a

new set up.

Training costs are increased.

It can demotivate intelligent and ambitious trainees who seek

specific responsibilities in their chosen specialty.

Limited people have the technical knowledge and skills to move

from one job to another job

There is no appreciable change in employee satisfaction, unless

the jobs are such that the person is really interested in them.

4. Alternative 1 and 2.

RECOMMENDATIONS
Alternative Course of Action no 1 and 2 will be the recommended
action

plan

to

improve

the

controllable rejects rate.

IMPLEMENTATION PLAN

companys

productivity

and

lessen

its

Redesigning the workflow by allowing workers to assemble a unit of hotplates instead

of only contributing on a single part over and over again. With this it will result to
empowered workers as they now feel that they have a sense of ownership over the
hotplates. By Increase responsibilities assigned to a worker, the workers will become
accountable with their respective tasks and jobs. Workers are now treated as individuals
creating a hotplate instead of just being part of the process. With the sense of ownership
and pride in their works, the assembly line mentality disappeared. Instead of doing the job, it
will now become personal. Having this mentality, it will largely affect the number of rejects
since the workers are now focused on completing the task that they are responsible of.
Rejects will be minimized, if not eliminated, since the workers are now more precise and
accurate in making the piece they could be proud of.

CONTINGENCY PLAN
If the two recommended alternative of course of action will not yield
into favorable result. The Company can employ a job rotation. With this it will
increase the workers individuality in terms of technical skills, and eliminates
boredom and dissatisfaction since one is required to learn the process in
their new area of assignment.