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 :systematic recording and critical

examination of existing and proposed ways of doing work as a means of
developing and applying easier and more effective methods and reducing cost . to be analysed
b.record:all relevant facts about present method
c.examine:record facts critically
d.develop:mostefficient,practical and economic method
e.define:new method
f.install:method as a standard practice
g.maintain:standard practice

 it involves cost and time ,bottleneck operations and
backtracking of materials.
  job with consistent quality,operations generating lots of scrap
,frequent complaints fronm workers regarding job.
more frequency of accidents, inconsistent earnings
,workers complaining about unnecessary and tiring work.


operation,flow chart(man,material and machine),travel,simo,two-
handed,multiple activity process charts
flowand string diagram.
Templates and models

Concerning the economy of movements which have been developed as a result of
experience and forms the basis for the development of improved methods at the
work place.
First used by gilberth and further rearranged by barnesmaynard and others
Two hands should begin and complete their movements at the same time,should
not be idle except during rest periods ͞ballastic͟(free swinging) movements are
faster and accurate than controlled movementscontinous curved movements are
preffered for straight line motions include changes in directions

Tools and materials should be prepositioned to reduce searching two or more
should be combined wherever possible,colour of the workplace should be
contrast ͞dropdeliveries͟should be used so that operative does not have to use
his hands to dispose finished parts.

# ð !
For purpose of work measurment it is regarded as :
Repetitive work(main and group operations are repeated continously and
applicable for workcycles of short duratin) and nonrepetitive work(it is type of
maintainance and construction work hardly repeated)
2.synthesis or syntheticdata sampling
4.analytical estimating
5.predetermined motion and time study

Timestudy Short cycle repetiticve Centiminute(0.01min)
jobs ,widely used for
direct work
Work sampling Long cycle Minutes
Synthetic data Short cycle repetitive jobs Centiminutes
MTM Manual operations TMU(1TMU=0.006min)
confined to one work
Analytical estimating Short cycle and non- minutes
repetetive jobs

it is recommended for batch production. All machines performing similar type of
operations are grouped at one location according to their functioning
eg: lathes, milling machines



flexibility of equipment,lowerinvestment,higherutlisation of facilities
backtracking and long movements ,reduces material handling efficiency ,process
time is prolonged ,production planning and control is difficult, more space is

machines are arranged in the sequence as required by the product,facilities are

arranged to acheive efficient flow of materials and lower cost per unit
reduced material handling cost due to mechanised handling system and straight flow
,perfect line balancing ,manufacturing cycles are short,unskilled workers can learn and
manage the production
lack of flexibility,large capital investment dependence of whole activity on each part

process layout is mixed with the product layout
eg:refrigratormanufacturing uses a combination layout
for manufacturing component parts process layout is used for asembly product
layout is used
 '  %
mateials and major components remain in a fixed location and tools machinery
men and other materials are brought to this location it is suitable for when one or
few pieces of identical heavy products aret o be manufactured
transportation cost is high
helps in job enlargement ,greater flexibility ,layout capital investment is lower layout:
to bring an element of flexibility into manufacturing system as regards to
variation in batch sizes and sequence of operations,it reduces the setup time
group tecchnology is used to to develop a hybrid between process layoutand pure
flow line layout .
two steps in Gt:
1.determinte component families or groups
2.applyinggt to arrange the plants equipment used to process a particular family
or components
ð &  

systematic application of recognisedtechniqueswhich identify the function of a
product or service establish a monetary value for the function and provide the
necessary function reliably at that lowest overall cost.
cost reduction process,less expensive techinque
machine tool industries,industries making accessories for machine tools
,autoindustries ,import substitutes

Cost matrix [cij]

From / To 1 2 3 4 5
1 - 1 1 1 1
2 1 - 1 1 1
3 1 1 - 1 1
4 1 1 1 - 1
5 1 1 1 1 -

Flow matrix [fij]

From /To 1 2 3 4 5
1 - 5 2 4 0
2 0 - 2 5 0
3 2 0 - 0 5
4 3 0 1 - 0
5 0 0 2 0 -

Distance: dij=[xi-xj]+[yi-yj]
Totalcost : 205

interchnge between 1 and 2: totalcost=205

interchange between 1 nd 4: total cost=193
interchange between 1 and 5:totalcost=208
interchange between 2 and 3:totalcost=197
interchange between 2 and 4:totalcost=201
interchange between 3 and 4:totalcost=178
interchange between 3 and 5:total cost=183
interchange between 4 and 5=total cost=163
Total with the final result number of steps obtained are 10


4 4 2
1 4 5

2 3

4 6

Total cost : 181

1.labour market i.e;demand and supply of labour and statutory restrictions (minimum wage act)
3.organization's ability and willingness to pay
4.bargaining capacity of the employer and the employees
5.prevailing wage structure in the specific sector or industry
6.workersskill,knowledge and experience
7.wagelevels in the specific sector or industry
8.cost of living
assuming 8 hours of working per day and standard time 12minutes

standard output per day = (8*60)/12 = 40 numbers

Day Actual output Actual output Basis of Days earnings
as %of payment (Rs)
Mon 50 125 High piece 50*2.5=125
Tue 55 137 High piece 55*2.5=137.5
Wed 48 120 Higher piece 120
Thu 40 100 80+20%of
fri 35 87.5 8*10=80
sat 45 112.5 Higher piece 45*2.5=112.5

( !  ! 

System is applicable where outpuut is not quantifable and it is not the criteria of
payment and where work is not repetitive.

ͻ? System is easy to operate and understand
ͻ? Reduces the problems of industrial relations
ͻ? Quality of work is maintained as employees are not in a hurry to increase
ͻ? Workman show his efficiency and workmanship without loss to himself
ͻ? Scope for improvement in work methods

ͻ? Doesnot provide any incentive to ambitious and more efficient employees
ͻ? The output will be lowered in the absence of strict supervision
ͻ? The basis of the wage is time and not output or efficiency
ͻ? Employer will gain or loose by increase or decrease in output

# !     %

Wages are paid to the employees in relation to the output produced

ͻ? Provides incentives to efficient workers
ͻ? Cost supervision in low compared to time base
ͻ? Higher speed increases the production rate and hence reduces cost per unit
ͻ? Workers innovates new ways
ͻ? Motivates workers to produce more

ͻ? Inorder to increase their wages through faster working workers may
neglect quality
ͻ? Because of speed worker may be prone to accident as it is possible that he
may neglect precautions
ͻ? Security for workers is low
ð &
Gain sharing plan ,standard times are established based upon the past experience
Bonus earned =1/2(Ts-Tt)*R
R=hourly labour rate (Rs./hr)
Ts=std .time
Tt=time actually taken
Earnings =1/2(Ts+Tt)*R
Production cost saving ,simple in operation and worker can compute his days
earning without any difficulty.
Plan doesnot give bonus on the time saved but only on the %time saved ,incentive
is not much attractive to workers
Each workman guranteed minimum wage plus bonus for certain portion of the
time saved
Earnings under this scheme are
Bonus =(Tt/Ts)(Ts-Tt)R
Earnings =Tt+R{1+(Ts-Tt/Ts)}
Encouragement to slow workers and trainees ,employer will get the partial
benefit of increased output
More complex compared to incentive schemes ,sharing concept is not favoured
by workers

K  ' 

When manufacturing involves variety of short cycle jobs of varying work contents

ͻ? Based on the study the std .time is established for each job in terms of
points one point equals one minute i.e; a standard hout consists of 60
ͻ? Guaranteed wage rate is paid upto standard performance
ͻ? Guaranteed wage rate plus incentive bonus is paid for above std
ͻ? The incentive bonus is paid at the fixed proportion for the time saved as per
this plan 75% of the points saved multiplied by one sixtieth of the workers
hourly rate is paid as incentive
Plan is simple in design easy to operate ,really gives incentive to higher