Productivity: The ratio of output produced to the input resources utilized in the production.

The
productivity is the ratio of the aggregate output to aggregate input. Partial productivity is the ratio of
the aggregate output to any single input.

Higher productivity:

1. More output is produced with the same or lesser input.

2. The same output is produced in lesser input.
3. More output is produced with more input, the proportional increase in output is
more than the increase in input.

Need for productivity measurement:

1. To study performance of the system over time,

2. To attain a relative comparison of different systems for a given level,
3. To compare the actual productivity of a system with its planned productivity.

Aggregate output gross sales=G;

Aggregate input cost=C;

𝐺
Total productivity = 𝐶 = 𝑃
𝐺 𝜋 𝜋
Profit = G-S=π therefore, 𝑆 − 1 = 𝐶 ∴ 𝑃 = 1 + 𝐶

Zero profit (π=0) will give a productivity value of 1, while a loss will give a value <1.

Productivity Improvement:

1. The time required to produce one unit of an output.

2. The difference between the actual input that has gone into the production process and the
required output is calculated.

Factors related to product design:

i. Standardization of components,
ii. Quality standards
iii. Provision for the use of higher production machineries.

Factors related to product design

i. Specification of the operating conditions;

ii. Interaction amongst men and machines
iii. Working methods of operators

Work study is an area of tremendous importance for productivity management and improvement on the
shop floor. It provides us with the scientific approach to investigate into all forms of work (work
elements). Work study provides us many moves and techniques to measure and improve the
ways which the workers adopt to accomplish a work. It assumes that there is one best way to
accomplish the task. Scientific methods may be used to identify he best way for doing this task.
 Once the best way is identified, the time and methods in doing this task maybe set as standard.
This standard, thus set, may be used to monitor the performance on the shop floor.

Method
study
Work study
Work
measuremnt
Work study is a generic term for those techniques, particularly method study and work measurement,
which are used in the examination of human work in all its contexts and which systematically
leads to the investigation of all the factors which affect the efficiency and economy of the
situation being reviewed, in order to effect improvement.

Method study is the systematic recording and critical examination of existing and proposed ways of
doing work as a means of developing and applying easier and more effective method and
reducing costs.

Work measurements is the applications of techniques designed to establish the time for a qualified
worker to carry out a specified job at a different level of performance.

Objectives of work study:

1. It helps in the optimal use of plant, equipment, manpower and material.

2. It helps in establishing the standard of performances.
3. It helps in developing efficient work methods.
4. It helps in establishing the most effective and efficient utilization of human effort.
5. It helps in synchronizing various resources like men and machine.
6. It helps in evaluation of human work.
7. It helps in effort towards the productivity improvement.
8. It helps in estimation the wasteful effort, useless material handling etc.,
9. It helps in simplification and mass standardization.
10. It is helpful in developing plant safety schemes, equipment utilization, plant layout and
conductive work environment.

Method Study Work Measurements

•To simplify the job •to determine how long ot should take.
•To improve the methods of production •to provide a yard check for human effort
 SELECT
Work to be studied
SELECT
work to be measured
RECORD
existing method using appropriate recording techniques. DEFINE
method to be used
EXAMINE
the facts critically considering in turn PURPOSE, PLACE,
SEQUENCE, PERSON, MEANS BREAK JOB DOWN TO ELEMENTS

DEVELOP
Best method inder existing circumstances

DEFINE
the new method, installation and training program
MEASURE
quantity of work involved in the method defined using
appropriate methods. ADD rest allowance and determines
the total work context of the job.

INSTALL
The new method and train personnel

ESTABLISH THE WORK UNIT VALUE

include one justifiable allowances and determine allowed
time for the defined method to achieve improved planning
andcontrol, more efficient planning of plant reliable indices
MAINTAIN for labor performance, reliable basis for labour cost
that method achieve the improve factoy and workplace control, sound incentive schemes
layouts, improved designed equipments, better work
environments, reduction of fatigue, resulting in better use
of plant, manpower and equipment.

Resulting into more effective use of Making possible improved planning and
material, plant, equipment and control, provides sound basis for
manpower incentive schemes.

Increased Productivity
Purpose of Method Study: It covers three broad areas:

1. It is a diagnostic tool. (Location of faults)

2. It is a remedial tool. (Improvement of situations)
3. It is a constructive tool. (Set standard for control)

Objectives of Method study:

1. Be the utilization of manpower and other tangible resources.

2. Elimination of the unnecessary work.
3. Reduction in unnecessary fatigue.
4. Identification of bottleneck activities and initiative steps t minimize them.
5. Improvement of processes and procedures.
6. Improvement in layout and methods of material handling.
7. Improvement in working conditions.
8. Improvement and simplification in design.
9. Improvement and maintenance in quality.
10. Improvement in the flow of production and processes.
11. Economy in human effort and reduction of fatigue in work.
12. Establishing the standardization in methods.
13. Improvements in safety standards.
14. Establishing a better physical working environment.

Objectives can be achieved through:

1. Collection of facts related to work, method, machine, operators and process.

2. Critical examination of facts.
3. Exploitation and search for alternatives.
4. Re-evaluation of alternatives.
5. Development and installation of the best alternative.
6. Maintenance and control of new method.

Procedure of Method Study:

DEFINE (the problem) (select)

RECORD (all facts relevant to the problem) (Record)
EXAMINE (the facts critically but impartially) (Examine)
CONSIDER (the alternatives course of actions and solutions and deliberate on to which way to
follow) (Develop and Define)
IMPLEMENT (the solution) (Install)
FOLLOW UP (the implementation) (Maintain)
SREDIM:

Select the work to be studied

i) Economic Considerations
a) Cost of Study
b) Time loss due to investigation
c) Cost associated with the implementation of changes in the present methods.

JOB:

a. Production Bottleneck
b. Poor Design for assembly
c. High reject rate
d. High fatigue

Labor:

a. High labor turnover

b. Excessive over time needed.
c. High relaxation allowance needed.
d. Labor complaining about difficulty in handling job material.

Order: Respective, Long Running.

Quality:

a. High variation in quality.

b. Unsafe working condition

Productivity:

a. Insufficient use of resources.

b. Long distance for material movement between processes.
c. High work in inventory
d. Lack of balance in labor intensive team work jobs.

System:

a. Poor Production planning and control.

b. No previous method study conducted.
c. Recurrent dispute in incentive schemes.
 Initial investigation of operation mass consideration

Finalize the appropriate level of analysis

Devise ways to overcome organizational resistance

 Talk to workers and supervisors

 Explain objective
 Communicate methodology and procedure

Study the present method (AS-IS): Process chart, flow process chart (man/material/equipment),
Two Hand chart, SIMO chart, PMTS chart, Multiplicity Chart, Flow Diagram, String Diagram,
Models, Cycle Graph, Chrono-Cyclograph, Memo-Motion Photography

Describe, analyze and examine the AS-IS Method

 Applying questioning attitude.

 Use motion economy principles.
 Seek suggestions
 Devise alternatives
 Decide best course of action. (TO-BE)
 Develop process charts and methods for TO-BE.

 Use time study.

 Compare AS-IS v/s TO-BE.
 Take supervision approval for change.

NO
If TO-BE
OK?

YES
  Implement new system (TO-BE).
 Train workers and supervisor.
 Document Modification.

Check regularly for expected caring

ii) Technological Considerations:

Area Purpose Example

•Skill, competence and
training of work study
practitioners
•To handle the present •The assembly line is
assignment running poorly due to
bad line balancing. the
expert must have the
expertise in individual
work element and line
balancing at the
bottleneck situations.

•Avoid . •The machine tool is not

•Technical Limitation of •Establishing the non-
process availability of appropriate
technical expertise.
cutting at the optimal
condition of speed. There
is a need to divise new
tools, but tool material is
not available in the
market. Hence, expert
advice is needed,
otherwise, *something*
on this item from study.

iii) Human Considerations:

a) Consultation, meeting with workers and union.
b) Defining scope, objectives and needs.
c) Proper written and oral communication with workers.
 d) Dispelling certain fears related to cut in wages, firing of workers, more efforts in work, higher
target etc.,

Recording Methods and facts:

a. Flow Type diagram:

i) Flow Diagram
ii) String Diagram
iii) Travel Chart
b. Multiple Activity chart
c. Process Chart:
i) Outline process charts
ii) Flow process charts for workers
iii) Flow process charts for materials
iv) Flow process charts for workers and materials
v) Flow process charts for equipment
vi) Two handed process charts
d. SIMO (Simultaneous motion) chart
e. Memomotion
f. Cyclegraphic
i) Cyclegraph
ii) Chrono-Cyclegraph

FLOW DIAGRAM: It is a diagram of model substantially to scale which shows the location of specific
activities carried out and the rates followed by workers, materials on equipment in their execution. It
shows location of each department and sequencing of principal activities. Mainly used in studying plant
layout.

STRING DIAGRAM: A scale plan or model on which a thread is used to trace and measure. The paths of
workers, materials on equipment during a specified sequence of events. It shows only the nature of
movements within the work area.

a) For studying layout of the plant

b) Indicates back tracking in material movements, congestion, bottleneck and over/under
utilization of shop floor.
c) Pattern of material movement, as indicated by strings, is helpful in the modification of the
plant/machinery.

TRAVEL CHART: It is a tabular record form representing quantitative data about the movement of
workers, materials on equipment between any number of places over any given period of time. It
provides volumetric data during travel between work-area. For studying layout problem in deciding how
to minimize total flow of material in the plant/work area.

MULTIPLE ACTIVITY CHART: It is a chart on which the activities of more than one subject (worker,
machine on equipment) are each recorded on a common time scale to show their relationship. It
emphasizes on machine idle time, delay etc.
HOW TO CONSTRUCT:

a) Start with the preparation of flow process chart for elements will machine on operations
involved in the process,
b) Group activities to be recorded into convenient elements for time study.
c) Take sufficient observations of time study for determining accurate element time time.
d) Draw in the form of bar chart for each activity of the leading operation on machine. Take a
common scale of time for each activity.
e) Use different colour codes for different section within each bar.
f) Calculate the amount of effective work per cycle in percentage of total time.

APPLICATION:

a) For preliminary investigation to study the extent of accuracy of particular activities.

b) Helps in balancing activities.
c) In a situation of one operator on a bank of machines.
d) In a situation of one operator running one on several machines.
e) Helps in explaining the possibilities of elimination, change in work sequence, combination and
simplification of work elements.

OUTLINE PROCSS CHART: A process chart giving an overall picture by recording in sequence only the
main operations and inspections.

Activity -> repair of punctured scooter tyre.

1 Jack up Scooter
Chart begin: Scooter ready for jacking up

Chart Ends: Tube ready after repair to mount on tyre. 2 Remove hub – cap of wheel

Two principal elements: i) Operations and ii) Inspection

3 Loosen nut and place properly

4 Remove wheel

5 Remove outercase
Operations :
6 Remove the tube
 8

1 Locate the puncture in tube

 2

7 Mark the puncture

8 Repair the puncture

2
Recheck
FLOW PROCESS CHART: A process chart is setting out the sequence of flow of a product on a procedure
by recording all events under review of all events under review using appropriate process chart symbols.
This chart gives a record of all events associated with the worker.

APPLICATIONS:

a) Used as a principle means of recording work methods.

b) Helps to understand the overall nature of the system being studied.
c) Helps to estimate flow patterns that are not suitable.
d) Helps to allow storage space adequate to support the production rate.
e) Helps to eliminate costly errors by analyzing the material flow.
f) Helps to allow adequate space to avoid safety problems.
g) Helps to locate and size aisles appropriate for product handling.
h) Helps to avoid backtracking of material.
i) Helps to identify possibility of combining operations by grouping different machines on
operations to avoid handling, storage and delays.
j) Helps to decide whether product flow or process flow layout of factory is suitable.

PROCESS CHART CONTROL:

1. Operation : It indicates steps in a process methods on procedure. It represents the

modification on change during an operation. Though each operation, the material, component
on service on assembly move towards completion. Operation is thus, a value added activity.
(Drivenail, mix, type letter, drill hole)
2. Inspection : It indicates inspection, quantity and it checks for quality on examining an event.
It is a non-value added activity, as it is only a verification process. (Examine material for
quality/quantity, read steam gauge of boiler, examine printed form for information, examine
weather before going out)
3. Transportation : It indicates movement of material, workers, equipment on place of work. It
is also a non-value added activity. (Move material by truck, move material by conveyor, move
material by carrying, move material by hoist).
4. Delay : It indicates delay on temporary storage in between a sequence of observations. It is a
non-value added activity, line waiting. (Wait for elevator, material in truck or on floor waiting to
be transported, papers waiting to be filed, finished products waiting for packaging)
5. Storage : It indicates planned and controlled storage of materials. Storage is different from
temporary storage (delay) in the sense that a proper record of receipt and issue is maintained
on at least some authorization is maintained for storage. (Material in factory store, finished
stock stacked on pallets, protective filing of documents, bulk storage of raw materials)
6. Combined symbols : It indicates that two operations (operations and inspection) are
simultaneously performed.
EXAMINE

Ask 5Ws and 1H => WHY? WHAT? WHERE? WHEN? WHO? HOW?

Why is the process needed?
What purpose does the process serve?
Where is the process undertaken and why?
When is the process undertaken and why?
Who are involved in the process and why?
How is the process undertaken and why?
Examine question as these exist now. Do not get
guided by how they appear, how they should be
etc.,
Biasness and preconceived notions should be
dispelled.
Involve all in the examination.
Don’t go for hasty conclusions.
Challenge all “AS-IS” approaches. Examine
seconds in details. Do not accept answer, unless
convinced.
Intuition and hunches must be discarded.
Examine all alternative new methods. Focus on
non-value added activities. Reduce on remove
delay, storage and transport.

DEVELOP & DEFINE:

a. Eliminate unnecessary activities.

b. Combine two or more activities. For example, if one uses a combination tool for operation, i.e.,
facing and drilling, the total set up will reduce.
c. Re-sequence activities so as to reduce time and effort.
d. Simplifying process to reduce number of operations on reduce effort on reduce through output
etc.,
e. Attack on constraints, which are prevailing to perform better.

INSTALL & MAINTAIN:

a. Setting the proposal: Communication, approval and confidence of those, involved in installation
and use.
b. Preparation for installation: purchase of required machine and equipment, layout of plant, time
table for installation, planning, arranging and rehearsing.
c. Communication of new method:
d. Initial monitoring of installation activities: After installation of new system, new method is to be
maintained. Periodic review is necessary for maintaining the new system.

MOTION ECONOMY:

i) Principles related to the use of human body.

ii) Principles related to the arrangement of workplace.
iii) Principles related to the design of tools and equipment.

USE OF THE WORKER’S BODY:

1. Ensure to work with two hands rather than one, as it is easier and natural.
2. Ensure that two hands should begin and complete their movements at the same time.
3. Ensure that the motion of the arms should be in opposite directions and should be made
simultaneously and symmetrically.
4. Ensure that hands and arms naturally move in arcs and this is preferred to a straight line
movement.
5. Ensure that head, arm and body movements should be confirmed to the lowest classification
with which it is possible to perform the work satisfactorily. E.g., Gilberth’s classification of hand
movements:
a) Fingers
b) Fingers and wrist
c) Fingers, wrist and forearms
d) Fingers, wrist, forearm and upper arms
e) Fingers, wrist, forearm, upper arms and shoulders
6. Ensure that work should be arranged to permit natural and habitual movements.
7. Ensure that movements should be continuous and smooth with no sharp changes in direction or
speed.
8. Ensure that whenever possible, momentum should be employed to assist work and minimized if
it must be overcome by the maker.
9. Ensure that two hands should not, except during resting periods be idle at the same time.
10. Ensure that ballistic movements are faster, easier and more accurate that controlled (fixation)
movements.
11. Ensure that the need to fix and focus the eyes on an object should be minimized and when that
is necessary the occasions should occur as together as possible.

ARRANGEMENT OF WORKPIECE:

12. Ensure that there should be a definite and fixed position for all tools, equipment and materials.
13. Ensure that all tools, materials and equipment should be located as near as possible to the
workplace.
14. Ensure that drop deliveries of materials should be whenever possible.
15. Ensure that tools, equipment and materials should be conveniently located in under to provide
the best sequence of operations.
16. Ensure that illumination levels and brightness ratios between jobs and surroundings should be
arranged to avoid the usual fatigue.
17. Ensure that the height of the workplace and seating should enable comfortable sitting or
standing during work.
18. Ensure that seating should permit a good posture and adequate change of the work area.
19. Ensure that the workplace should be clean, adequately ventilated and heated.
20. Ensure that noise and vibration, both local and general, should be minimized.

Design of tools and equipment:

21. The hands should be relieved of all work that can be done more advantageously by a jig, a
fixture on a foot operated device.
22. Two or more tools should be combined wherever possible.
23. Tools and materials should be pre-positioned wherever possible.
 24. When each fingers performs some specific movement, such as computer keyboard, the tool
should be distributed in accordance with the inherent capacities of fingers.
25. Handles should be designed to permit the surface of the hand to come in contact with the
handle as possible. This is particularly true, when considerable force is exerted in using the
handle, for light assembly work (the screw driver handle) should be so shaped that it is smaller
at the bottom than at the tip.
26. Levers, crossbars and hand wheels should be located in such a position that the operator can
manipulate them with minimum change in body position.

WORK MEASUREMENT

Work measurement is the application of techniques designed to establish the time for a qualified
worker to carry out a specific job at a defined level of performance.

OBJECTIVES:

a. It helps in manpower planning.

b. It helps in estimating labor cost.
c. It helps in scheduling activities.
d. It helps in budgeting.
e. It helps in designing incentive schemes.

PURPOSE:

a. To evaluate labour performance.

b. For planning the need of workforce.
c. For determining the available capacity.
d. For comparing work methods.
e. For facilitating operation scheduling.
f. For determining price on cost of a product/output, involving human labour.
g. For establishing wage incentive schemes.
h. For determining standard time for various operations.
i. For determining idle or rest time of an operation.
j. For generating necessary input information for decisions related to estimating, tendering,
pricing etc.,
k. For generating information related to line balancing in assembly line.

TECHNIQUES OF WORK MEASUREMENT:

a. Work sampling
b. Stop watch study
c. Predetermined time standards (PTS)

STOP WATCH TIME STUDY: Time study is defined as a work measurement technique for recording the
times and rate of working for the elements of a specified job, carried out under specified condition and
for analyzing the data so as to obtain the time necessary for carrying out the job at a defined level of
performance.
 Work Measurement

Select Record Examine Develop

Stop Watch
Work
PTS
Sampling
To establish
Standard data bank

Compile
To get standard time
of operation

Standard Data

List of time study equipment and form:

a. Fly back type

b. Non-Fly Back type
c. Split hand Stopwatch
Time Study board
Time Study form

Step in time study (Stop Watch Method)

Select Select work for work measurement.

Record Obtain and record all the relevant information about job, operation and surrounding
condition.
Record complete work description.
Divide Breakdown operation into elements.
Examine Examine the detail breakdown
Ensure the most effective method and motions being used.
Determine sample size.
Measure Use time measuring device to measure and record the time taken by the operation in
performing elements of the job.
Observe Assess the effective speed of working of the operation as compound to standard rate in the
perception of observer.
Compile Compile the basic cycle time for operation on work cycle.
Determine Determine standard time by adding relaxation and personal allowances in base time.
Define Define the total procedure of performing an activity along with time standards

Sample Size Determination:

The sample size showed should be such that it should satisfy a predetermined confidence level and
accuracy margin.
 √𝑛1 (Σ𝑥 2 −(Σ𝑥)2 ) 2
𝑛 = 400[ ] => For a confidence level of 95% and accuracy level of ±10%.
Σ𝑥

𝑛1 = number of cycles to be timed, i.e., preliminary readings first taken

n = number of observations required at a given confidence level

Σ𝑥 = Sum of preliminary out of individual observations

Work Content (ILO): Basic time + relaxation allowance+ any other allowance for additional work

Relaxation Allowance is an addition to the basic time intended to provide the worker with the
opportunity to recover from the physiological and psychological effects of carrying out specified work
under specified conditions and to allow attention to personal needs. The amount of allowance will
depend on the nature of the job.

Contingency allowance is a small allowance of time which may be included in a standard time to meet
legitimate and expected items of works in delays, the precise measurement of which is uneconomical
because of their infrequent or irregular occurrence.

Policy allowance is an allowance (increment) other than bonus increment, applied to standard time to
provide a satisfactory level of earnings for a specified level of performance under exceptional
circumstances.

Special Allowances may be given for any activity, which are not normally part of the operation cycle, but
which are essential to the satisfactory performance of the work.
Contributed to
Personal Needs Basic Human Environmental stress and
Fatigue strain

Fixed allowance Variable allowance

Relaxation Contingency Policy allowance Special

allowance allowance allowance

Added to
Total allowance
Basic time

Work Content

Performance Rating:

Rating is the assessment of the worker’s rate of working relative to the observer’s concept of the rate
corresponding to the standard pace.
Standard performance is the rate of output which qualified workers will naturally achieve without over-
exertion as an average over the working day on shift, provided that they are motivated to apply
themselves to their work. The standard performance is denoted as 100 on the standard rating and
performance scales.

Rating is always compared with the standard rating, which may be taken as 100.
𝑅𝑎𝑡𝑖𝑛𝑔
Basic time = observed time x 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑟𝑎𝑡𝑖𝑛𝑔

For example, if an operator is judged to be working faster (rating 125) and the allowed time is 0.23 min,
then
125
Basic time = 0.23x = 0.287 min
100

Standard time is the total time in which a job should be completed at standard performance. It is the
sum of the standard times for all the elements of which it is made up, and contingency allowance plus
consideration for the frequencies with which the elements recur.

Observed time (OT)

Rating Factor (RF)

Relaxation Allowance (RA)

Contingency Allowance for work Contingency Allowance (CA)

Contingency Allowance for unavoidable delays

OT + RF + RA = Basic Time

Basic Time + CA for work = Work Element

Basic Time + CA = Standard Time

Ex. In a time study for a job done by a worker whose rating is 90, the data are as follows:

Observed Time: 15 mins

Personal needs allowance = 4% of the basic time

Fatigue Allowance = 2.5% of basic time

Contingency work allowance = 2% of the basic time

Contingency delay allowance = 1% of the basic time

Find Basic time, work content, standard time

𝑅𝑎𝑡𝑖𝑛𝑔
i) Basic time = observed time x 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑟𝑎𝑡𝑖𝑛𝑔 = 15x 90/100= 13.5 min
ii) Allowances are:
a) Personal needs allowance= 13.5 x 0.04 = 0.54 min
b) Fatigue Allowance = 0.025 x 13.5 = 0.3375 min
c) Contingency work allowance= 0.02 x 13.5 = 0.27 min
d) Contingency delay allowance = 0.01 x 13.5 = 0.135 min

Work content = basic time + relaxation allowance + Contingency work allowance

= 13.5 + (0.54 + 0.337) + 0.27 = 14.65 min

Standard Time = Work Content + Contingency delay allowance

= 14.65 + 0.135 = 14.78 min

Work Sampling: it is a method of finding the percentage occurrence of a certain activity by statistical
sampling and random observation.

Procedure of Work Sampling:

Stage 1:

a) Specify the main objective and make statement.

b) Obtain approval of the concerned department’s supervisor.
c) Identify quantitative measure of activity.
d) Select and train personnel.
e) Plan for the procedure of observations.

Stage 2:

f) Get all details of the jobs to be measured.

g) Divide jobs into activities.
h) Conduct pilot study to:
I) Determine number of observations
II) Check methods
III) Gain confidence
i) Describe and classify elements to be studied
j) Design observation sheets.
k) Identify the number of days/ shifts for the study.
l) Identify scheme for properly randomized times of observations.
m) Observe activity, record time and compile for each shift/ day/ week.
n) Summarize data.

Stage 3:

o) Evaluate and validate data.

 p) Analyze data.
q) Calculate proportion of time for each activity.
r) Planning for future studies.

Applications:

a) Intermittent work
b) Work with long cycle times
c) A starting point like preliminary investigation.

Sample size for work sampling:

n = sample size = no. of observations required for the desired confidence level and margin of error

p = percentage occurrence of the activity

s = error (desired accuracy) in fraction

k = a factor depending upon the confidence level

k = 1 for confidence level of 68%

= 2 for confidence level of 95%

= 3 for confidence level of 99.7%

𝑝(1−𝑝)
𝑝𝑠 = 𝑘 √[ ] or
𝑛

𝑘 2 𝑝(1−𝑝)
𝑛= (𝑠𝑝)2

∴ 𝑝𝑠 = 𝑘 × 𝜎𝑝

A trial observation is needed for the initial estimate of p. The value of p is subsequently revised as more
and more observations are taken.
𝑛𝑜. 𝑜𝑓 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦 (𝑥)
𝑝=
𝑡𝑜𝑡𝑎𝑙 𝑛𝑜. 𝑜𝑓 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛𝑠 (𝑁)
 6

5
No. of observations required

0
Percentage occurrence of activity

±3.0% ±1.0% ±1.5% ±2.0% ±2.5% ±3.5%

Ex it is estimated that an operator in an assembly has 20% idle time. The expected accuracy in work
sampling is 14%. For a 95% confidence level, how many observations are needed?

GIVEN: k=2 for a confidence level , p=0.2

q = (1-p) = 0.8 , h = sp = 0.04

𝑘 2 𝑝(1−𝑝)
𝑛= = 387 observations
(𝑠𝑝)2

Ex. Consider the determination of the percentage idle time of a turner by work sampling assuming the
desired confidence level to be 95% and the error (accuracy required ±5%)

Before using the application of formula, we have to get a first estimate of p (the percentage idle time
measured in fraction). Let a total of 100 observations be made out of which 25 observations show that
the turner is idle.

𝑝(1−𝑝)
∴ 𝑝𝑠 = 𝑘√[ ] for p = 0.25, s = 0.05, k = 1.96
𝑛

0.25(1−0.25)
∴ 0.25 × 0.05 = 1.96√ 𝑛

∴ 𝑛 = 4610
After 500 observations are taken, the revision value of n is done as follows:

No. of times the turner is observed to be idle = 150

Total no. of observations = 500

p = 150/500 = 0.30

0.30(1−0.30)
∴ 0.30 × 0.05 = 1.96√ 𝑛

∴ 𝑛 = 4744
It is advisable to recalculate n at regular intervals. Let us assume that at certain stage, when 4000
observations are taken, the result of the study is as follows:

No. of times the turner is observed to be idle = 1400

1400
Total no. of observations = 400 ∴ 𝑝 = 4000 = 0.35

0.35(1−0.35)
∴ 0.35 × 0.5 = 1.96√ 𝑛
∴ 𝑛 = 2854

As n=2854 which is less than 4000, the total no. of observations already taken, we stop and recalculate
s,

0.35(1−0.35)
∴ 0.35 × 𝑠 = 1.96√ 4000
∴ 𝑠 = 0.0422 = 4.2%

The inference could be that we are 95% confident that the turner is idle between (35±0.0422 X 35) % is
35.523% to 36.477%.

Predetermined Motion Time Standard (PMTS):

In this, time establishment for human motion is to build up the time for a job at a defined level of
performance. In this system, the operations under the study, are divided into basic motions. Then the
timings for the basic motions are individually computed and added for getting the basic operation time.

Method Time Management (MTM):

In this approach, every manual operation is defined into basic motions. These motions are assigned a
predetermined time standard, which is based on the type of motion and condition under which the
motion is performed. The data for motion time are provided in MTM tables, in which the unit of time is
TMU (Time Measurement Unit). One TMU is one hundred thousandth of an hour (1 TMU= 0.0006
minutes). The time (in TMU) is noted for all the basic motions and added to get the cycle time for
manual operation of an assigned work cycle. MTM has following advantages:

a) Data are based on extensive observations.

b) Performance rating is not needed.
c) No stoppage or disruption in the plant.
d) Standards can be established even before a job is completed.

Incentive Individual Incentive Plan

Plans
Group Incentive Plans
Individual Incentive Plans: It may be either time based or production based. Under time based plans, a
standard time is fixed for doing the job. A worker is said to be efficient if he completes the job in time
and he is given reward for his efficiency.

a) Halsey Plan
b) Rowan Plan
c) Emersson’s plan
d) Bedeaux plan

Halsey Plan: In this plan, minimum wages are guaranteed for every worker. A standard time is fixed for
the workers. If the workers finish the work before standard time, they are given bonus. But no penalty if
they fail to do so.

Total Wage (w) = T×R + 50% of (S-T) × R

Standard Time (s) = 15 hr. Time Taken (t) =10 hr. Rate of Wages (R) = Rs. 10/hr.

Bonus (p) = Wages of 50% of time saved

Then, Wage = 10 × 10 + 50% (15-10) × 10 = Rs. 125

Rowan Plan: It is the modification of the halsey plan. It also guarantees the minimum wages and doesn’t
penalize the slow workers. Standard time is fixed and bonus is given on the basis of time saved.

Total Wage (W) = T×R + [T × R × Time Saved/ Standard time]

Standard time (s) = 15 hrs. Time taken = 10hrs. Rate of wages = Rs. 10/hr.

Bonus (P) = Time saved/Standard time

Then, wage = 10×10+[10×10×5/15]= Rs. 133.33

Emersson Plan: In this plan, minimum wages are guaranteed to the workers. Efficiency is measured on
the basis of the comparison of actual performance to the standards fixed. Under this method if the
efficiency is 100%, the bonus would be paid at 20% and above 100%, bonus is 30%. Thus, efficient
workers will be rewarded at an increasing rate with the increase in saving time.

Bedeoux Plan: In this plan, minute is the time unit described as the standard minute. The standard
minute. The standard time job is fixed after manufacturing time and motion study expressed in terms of
B. The standard time for a job is the no. of B’s allowed to complete it. Generally, bonus paid to the
worker is 75% of the wages for time saved. The rest 25% goes to the foreman.

Actual Time(T) =300 B’s (5 hrs. X 60 mins.), Standard Time (s) = 360 B’s ( 6 Hrs X 60 mins)

Wage Rate (R) = Rs. 10/hr.

Value of time saved = (360-300)/60 X 10 =Rs. 10

Total wages (W)= S×R+75% of value saved=Rs. 67.5

Production-Based individual incentive plans:

A standard output is fixed and the workers are paid on the basis of production. They are given incentive
if they produced more no. of units than the standard fixed.

Taylor Plan: In this plan, Taylor did not give minimum guarantee to each worker. As per his statement, it
is possible to calculate standard workload for every worker on the basis of time and motion studies, he
gave two price rates for the workers. The lower rate for average and less efficient workers who produce
less than the standard production and the higher price rate for above average or efficient workers. So,
the efficient workers are paid more than the inefficient workers.

Standard production = 40 units/day

Wage rate= between Rs.60 to Rs.70

If the workers produces 40 units in a day, he will be paid = 40 × 70 = Rs.280

If the workers produces 30 units in a day, he will be paid = 30 × 60 = Rs.180

Inefficient workers are penalized. Workers are treated five machines and there is no guarantee of
minimum wages.

Merrick’s multiple piece rate plan: There are three grade price rates rather than two given by Taylor.

Workers who produce less than 83% are paid basic price rates.

Workers who produce between 83% to 110% are paid 110% of basic price rate.

Workers who produce more than 110% are paid 120% of basic.

Thus, this system is an improvement over the Taylor’s plan. But this system doesn’t give guarantee
minimum wages to the workers. All the workers producing 1 to 82% of standard output are considered
same and paid the same price rates.

Gantt’s bonus plan: In this plan, minimum wages are guaranteed. If the worker fails to complete the task
within the standard time, he receives only the wages for actual time spent at the specific rate. But if he
completes the task within time, he gets extra wages.

Standard Rates = 10 hrs, Rate = Rs.8/hr, bonus 25% of standard time.

If the workers finishes his job within 8 hrs, he will get Rs.80 plus 25% of the days wages is 80 × 25%=
Rs.20 that means Rs.(80+20) = Rs.100. So, he will get bonus for 8 hours work.

Group Incentive Plan: In this method, group bonus is given instead of individual bonus. The bonus is
distributed among all the employees of the organization on different basis.

Priestmann’s Plan: In this method, bonus is increased in proportion to increase in output. (Increased
productions/Standard production) × 100

Profit sharing Method: In this method, increased profit is shared among the workers and management
as agreed up on both the parties.
Scanlon Plan: In this plan, bonus is paid in proportions to the production 1% bonus if 1% increase in
production.

Observations

Machine-Working Machine Idle

Cutting Filing Boring Waiting Idle

Personal
Waiting for
needs of
for the repair
the
supplier
workers

Charts Examples:
(Basic work content + work content added by defects in design on specification of products + work
content added by inefficient methods of manufacture of operation) = Total work content (A)

(Ineffective time due to shortcomings of the management + ineffective time within the control of the
worker) = total ineffective time (B)

(A) + (B)= Total time of operation under existing conditions

Work content added by defects in design on specifications of the products = Bad design of the product
prevents use of most economic processes + lack of standardization prevents use of high production
processes + incorrect quality standards cause unnecessary work design demands removal of excess
material

Work content added by inefficient methods of manufacture or operation = wrong machine used +
process not operated correctly or in bad conditions + wrong tools used + bad layout causing wasted
movement + operator’s bad working methods

Ineffective time due to shortcomings of the management = excessive product variety adds idle time due
to shorter runs + lack of standardization adds to idle time due to short runs + design changes add
ineffective time die to stoppages and rework + bad planning of work and orders adds idle time of men
and machine + lack of raw materials due to bad planning adds idle time of men and machines + plant in
bad conditions adds ineffective time due to scrap and rework + bad working conditions add ineffective
time through forcing workers to rest

Ineffective time within the control of the worker = absence, lateness and idleness add ineffective time +
careless workmanship adds ineffective time due to scrap and rework + accidents add ineffective time
through stoppages and absence.
ELIMINATION:

1) Product development and value analysis reduce excess work content due to design defects.
2) Specialization and standardization enable high production processes to be used.
3) Market, consumer and product research ensure correct quality standards.
4) Product development and value analysis reduce work content due to excess material.
5) Process planning ensures selection of correct machines.
6) Process planning and research ensure correct operation of processes.
7) Process planning and method study ensure connects to selection of tools.
8) Method study reduces work content due to bad layout.
9) Method study and operation training reduce work due to bad working methods.