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# 7-1 Design of Work Systems

WORK MEASUREMENT
TIME STUDY
(Direct Time Study & Activity Sampling) (Direct Time Study & Activity Sampling)
7-2 Design of Work Systems
Work Measurement Work Measurement
TIME STUDY
Standard time
Stopwatch time study
Historical times
Predetermined data
Work Sampling
7-3 Design of Work Systems
Historical Experience Historical Experience
Relatively easy, convenient, and inexpensive
Not objective, unknown accuracy
Not recommended
7-4 Design of Work Systems
Labor processing standards are based on
Observe only a sample of work
Time Studies Time Studies
Use average time & pace to set standard
Requires a trained & experienced analyst
Standard cannot be set before task is
performed
7-5 Design of Work Systems
The Eight Steps to Conducting a The Eight Steps to Conducting a
Time Study Time Study
1. Define the task to be studied (after a methods
analysis)
2. Break down the task into precise elements
3. Decide how many times each element of the task 3. Decide how many times each element of the task
must be measured
4. Record the times and ratings of performance for
[Rating = (Observed rating / standard rating)]
(*Rating = assessment of a worker relative work rate based on observers
observation compared with standard pace.)
7-6 Design of Work Systems
The Eight Steps to Conducting a The Eight Steps to Conducting a
Time Study Time Study - - continued continued
5. Compute the average observed cycle time (element
6. Compute the normal time for each task element
Normal time = (Average actual cycle time) x (Rating factor)
7-7 Design of Work Systems
7. Sum the normal times for each element to
develop a total normal time for the task
8. Compute the standard time:
The Eight Steps to Conducting a Time The Eight Steps to Conducting a Time
Study Study - - continued continued
8. Compute the standard time:
Standard time =
Total normal time
(1- Allowance factor)
7-8 Design of Work Systems
Allowances Allowances
Personal time allowance - 4% - 7% of total
time - use of restroom, water fountain, etc.
Delay allowance - based upon actual delays
that occur that occur
Fatigue allowance - to compensate for
physical or mental strain, noise level,
tediousness, heat and humidity, assumption
of an abnormal position, etc.
7-9 Design of Work Systems
(Example 1) (Example 1) - - Direct Time Study Direct Time Study
Work Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5
1 Take glass 8 9 8 10 8
2 Place on jig and turn on the
machine
10 12 10 11 12
3 Milling Operations
(fully automatic)
25 25 25 25 25
(fully automatic)
4 Lift glass and put it on conveyor 8 8 6 8 6
Time study data using snap back stop watch. Time in seconds. Total allowance is
15% of the normal time. Workers rating is 110%.
Compute the total standard time.
Calculate the labor cost per product if the workers wage is RM 3 per-hour.
7-10 Design of Work Systems
Direct Time Study (Example) Direct Time Study (Example)
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Average Normal
time
Std
time
1 8 9 8 10 8 8.6 9.46 11.129
2 10 12 10 11 12 11 12.1 14.235
3 25 25 25 25 25 25 25 25
4 8 8 6 8 6 7.2 7.92 9.318
Element 1:
Average time = (8+9+8+10+8)/5 = 8.6 sec
Normal time = Average time x Rating = 8.6 x 1.1 = 9.46 sec
Standard time = Normal time /(1-allowance) = 9.46 / (1-0.15) = 11.129 sec
Total Standard Time = 11.129+14.235+25+9.318 = 59.682 sec/product
7-11 Design of Work Systems
Direct Time Study (Example) Direct Time Study (Example)
Calculate the labor cost for each product if the workers wage is RM
3 per-hour.
RM
hr RM
sec / ) 10 ( 33 . 8
/ 3
wage s Worker'
4
=

=

product RM
RM
RM
hr
/ 0497 . 0
sec / ) 10 ( 33 . 8 x sec 59.682 product per Cost Labor
sec / ) 10 ( 33 . 8
sec/ 3600
wage s Worker'
4
=
=
=

## 7-12 Design of Work Systems

- - Example 2 Example 2 - -
Work Elements Cycle 1 Cycle 2 Cycle 3 Cycle 4
1 0.22 0.26 0.25 0.23
2 0.15 0.18 0.15 0.16
3 0.90 1.10 1.04 1.00
4 0.72 0.80 0.76 0.68
Data from snap back stop watch in minutes of a manual assembly process time Data from snap back stop watch in minutes of a manual assembly process time
study. The worker is rated at 108%. The allowances are 5% for fatigue, 6% for delay,
and 6% for personal relief. The workers salary is RM1000 per month.
a) Compute the total assembly standard time for the assembly process.
b) If the demand is 100,000 unit per month, estimate the number of operators
required for the assembly process. The company is operating 24 days per month
and a single 8 hour shift per day.
c) If the company can only manage to employ 18 workers, compute the over time
cost per day for each worker for the production of 100,000 units per month.
Assume only 15 workers are available for over time and the over time pay rate is 1.5
times of the normal wage.
7-13 Design of Work Systems
Solved Problem Solved Problem
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Average Normal
Time
Std
Time
1 0.22 0.26 0.25 0.23 0.24 0.259 0.312
2 0.15 0.18 0.15 0.16 0.16 0.173 0.208
3 0.90 1.10 1.04 1.00 1.01 1.091 1.314
4 0.72 0.80 0.76 0.68 0.74 0.799 0.963
1 Element (a)
min/unit 2.797 0.963 1.314 0.208 0.312 Time Standard Assembly Total
min 312 . 0
17 . 0 1
1
259 . 0
Allowance - 1
1
x Time Normal Time Standard
min 0.259 1.08 x 0.24 Rating x Time Average Time Normal
min 24 . 0
4
0.23 0.25 0.26 0.22
Time Average
1 Element (a)
= + + + =
=

= =
= = =
=
+ + +
=
7-14 Design of Work Systems
Solved Problem Solved Problem
min
520 , 11
min
60 24 8 1 operator 1 of time Working
(b)
= =
mth hr mth
day
day
hr
b) If the demand is 100,000 unit per month, estimate the number of
operators required for the assembly process. The company is operating 24
days per month and a single 8 hour shift per day.

25 24.28
mth
unit
4118.70
mth
unit
100,000
operator per Capacity
Demand Monthly
required operators of Number
mth
unit
4,118.70
unit
min
2.797
min
520 , 11
operator 1 by produced quantity Monthly
= = =
= =
mth
7-15 Design of Work Systems
Solved Problem Solved Problem
unit
25,863 74,137 - 100,000 shortage quantity Monthly
137 , 74 18
mth
unit
4,118.70 operators 18 by produced quantity Monthly
(c)
units
= =
= =
c) If the company can only manage to employ 18 workers, compute the over time
cost per day for each worker for the production of 100,000 units per month.
Assume only 15 workers are available for over time and the over time pay rate is 1.5
times of the normal wage.
(monthly shortage, need OT)

234 . 50
min
014 , 3
min
797 . 2 6 . 1077
day
unit
1077.6 produced to required Time
6 . 1077
24
mth
unit
25,863
shortage quantity Daily
mth
unit
25,863 74,137 - 100,000 shortage quantity Monthly
day
hr
day
unit day
unit
day
unit
mth
day
= =
=
= =
= = (monthly shortage, need OT)
7-16 Design of Work Systems
Solved Problem Solved Problem
RM
1,000
349 . 3
operator 15
234 . 50
day per operator each for hours over time therefore
work, over time for available are operators 15 only to Due
day operator
hr day
hr

= =

RM
26.162
RM
812 . 7 3.349
day per operator per cost Over time
RM
812 . 7
RM
5.208 x 1.5 wage Over time
RM
5.208
8
mth
24
mth
RM
1,000
wage Normal
day operator hr day operator
hr
hr hr
hr
day
hr day

=
= =
=

=
7-17 Design of Work Systems
Labor standard is set using output and % of
Involves observing worker at random times
over a long period
Work Sampling Work Sampling
Less expensive than time studies
Observer requires little training
Ineffective with short cycles
7-18 Design of Work Systems
Used for
Ratio delay studies
Setting labor standards
Measuring worker performance
Work Sampling Work Sampling
Measuring worker performance
7-19 Design of Work Systems
The Five Step The Five Step
Work Sampling Procedure Work Sampling Procedure
1. Take a preliminary sample to obtain an
estimate of the parameter value
2. Compute the sample size required
3. Prepare a schedule for observing the 3. Prepare a schedule for observing the
worker at appropriate times
4. Observe and record worker activities; rate worker
performance
5. Determine how workers spend their time (usually
as a percent)
7-20 Design of Work Systems
Normal Time =
(Total Observation Time) x (Productive %) x (Rating)
Total Output
Work Sampling Equations Work Sampling Equations
Standard Time =
Normal Time
(1 Allowance)
7-21 Design of Work Systems
Work Sampling (Example) Work Sampling (Example)
Status Tally Sum Percentage
Productive IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII I 41 41/45 = 91%
Idle IIII 4 4/45 = 9%
Work sampling studies were conducted for 6 consecutive days at a factory. Work sampling studies were conducted for 6 consecutive days at a factory.
A total of 45 observations were made during the 8 hours working period for
each day. The number of units managed to be produced are 3000 units for 1
week. The factory is operating 6 days a week. The data above are included
with rating and allowance of 97% and 15%.
Compute the process standard time.
7-22 Design of Work Systems
Work Sampling (Example) Work Sampling (Example)
Status Tally Sum Percentage
Productive IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII I 41 41/45 = 91%
Idle IIII 4 4/45 = 9%
min 2880 day 6
hr
min
60
day
hr
8 n time observatio Total = =
unit
min
0.997
15 . 0 1
1
97 . 0 91 . 0
unit 3000
min 2880
ST Time, Standard
allowance 1
1
Rating] % Productive
output Total
n time observatio Total
[
ST Time, Standard
hr day
=

=

=
7-23 Design of Work Systems
Tutorial 1 Tutorial 1
Proses Description Average Time (min)
1 Manual 23
2 Manual 32
3 Automatic machine 9
4 Manual 8
Rating : 110%
Allowance: 20%
(a) Compute the standard time for each process.
(b) If the company has no problem with the availability of manpower,
recommend the maximum capacity for the factory for a 8 hour shift work.
7-24 Design of Work Systems
Tutorial 1 Tutorial 1
Proses Description Average Time
(min)
Normal
time
Std Time
1 Manual
2 Manual
3 Automatic
(a)
3 Automatic
machine
4 Manual
(b)
7-25 Design of Work Systems
Tutorial 2 Tutorial 2
Emirates Consultant conducted a work sampling studies for 5 consecutive days at an
assembly factory. A total of 48 observations were made during the 8 hour working
period for each day. The data collected during the 5 day studies is illustrated in Table
1. The whole assembly process is operating on 5 working days per week, 95% rating
and the companys allowable allowances is 20%.
(i) Compute the standard time (min/unit) for the assembly process.
(ii) At peak demand period, the factory is normally required to produce 3,100 units per
week. If only 60% of the employee is willing to work over time, compute the average week. If only 60% of the employee is willing to work over time, compute the average
overtime per day must be arranged in order to meet the peak demand.
Item Data
Total output over 5 days studies 2,500 unit
Assembly process at fast speed 35%of observations
Assembly process at moderate speed 45%of observations
Assembly process at slow speed 5%of observations
Production is stopped due to no operator 5%of observations
Production is stopped due to no material 10%of observations
7-26 Design of Work Systems
Tutorial 2 Tutorial 2
Time Std
n time observatio Total
(i)
=
=
day
unit
wk
unit
hours 8 normal during Capacity
Demand Peak
(ii)
=
=
7-27 Design of Work Systems
Tutorial 2 Tutorial 2
day
min

hours over time the over time, do to forced are employees all If
unit/day shortage Capacity
=
=
day
hour
overtime then total
over time, for available are employees of 60% only g Considerin
=
7-28 Design of Work Systems
END OF CLASS END OF CLASS