DEPARTEMENT OF ACCOUNTING AND FINANCE

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work measurement:

is concerned with the determination of the amount of time required to perform a unit of work.
Work measurement is very important for promoting productivity of an organization. It enables
management to compare alternate methods and also to do initial staffing.

Work measurement provides basis for proper planning.

Since it is concerned with the measurement of time it is also called ‘Time Study’. The exact
examination of time is very essential for correct pricing. To find the correct manufacturing time
for a product, time study is performed. To give competitive quotations, estimation of accurate
labour cost is very essential. It becomes a basis for wage and salary administration and devising
incentive schemes.

The application of techniques designed to establish the time for a qualified worker to carry
out a specified job at a defined level of performance”. This time is called standard or allowed
time. Time study may also be defined as “the art of observing and recording the time
required to do each detailed element of an industrial operation

Objectives of Work Measurement:

1. To compare the times of performance by alternative methods.

2. To enable realistic schedule of work to be prepared.

3. To arrive at a realistic and fair incentive scheme.

4. To analyze the activities for doing a job with the view to reduce or eliminate unnecessary jobs.

5. To minimize the human effort.

6. To assist in the organization of labor by daily comparing the actual time with that of target ti
Uses of Work Measurement:
1. Wok measurement is used in planning work and in drawing out schedules.

2. Wok measurement is used to determine standard costs.

3. Wok measurement is used as an aid in preparing budgets.

4. It is used in balancing production lines for new products.

5. Wok measurement is used in determining machine effectiveness.

6. To determine time standards to be used as a basis for labour cost control.

7. To establish supervisory objectives and to provide a basis for measuring supervisory

efficiency.

8. To determine time standards to be used for providing a basis for wage incentive plans.

Techniques of Work Measurement:

Work measurement is investigating and eliminating ineffective time. It not only reveals the
existence of ineffective time. But it can be used to set standard times for carrying out the work so
that ineffective time does not evolve later. It will be immediately found out by the increased
standard time. For the purpose of work measurement, work may be regarded as repetitive work
and non-repetitive work.

The principal techniques of work measurement are classified under the following heads:
1. Time Study

2. Work Sampling

3. Pre-determined Motion Time System

4. Analytical Estimating
Job design

Job design encompasses the components of the task and the interaction pattern among the
employees, with the intent to satisfy both the organizational needs and the social needs of the
jobholder

describes the devolution of authority to different layers of the

organization as well as the extent to which trust, knowledge sharing and participation are
embedded in its practices and behavior .

Principles of job design and work measurement

1. Variety

Variety means more than simply adding an extra but similar duty.

2. Responsibility
Their work should be clearly identified so they can see that they are personally
responsible for the outcomes (successes and failures) that occur as a result of their own
actions.
3. Autonomy
Autonomy means giving more scope to individuals to regulate and control their own
work within the parameters set for the job.
4. Task identity
occur when a task or job has a distinct beginning and end which is clearly apparent to the
role holder and others who work around them.
5. Feedback
Is primarily the responsibility of the line manager, and can built in to the formal working
relationship

Standard time Calculation time study

 Standard time may be defined as the, amount of time required to complete a unit of work: (a)
under existing working conditions, (b) using the specified method and machinery, (c) by an
operator, able to the work in a proper manner, and (d) at a standard pace.
Thus basic constituents of standard time are:

1. Elemental (observed time).

2. Performance rating to compensate for difference in pace of working.
3. Relaxation allowance.
4. Interference and contingency allowance.
5. Policy allowance.

 The different facility layout with their advantage and disadvantage

Process Layout:
● It is also referred as functional layout
● Process Layout focuses on keeping similar machines or similar operations at one place
in layout
● Here, all similar functional Equipments are placed at one location and are grouped into
one
department
● Process Layouts are more suitable for industries, as its production of goods is done
based on series
of activities or process site
advantages of Process Layout -
● Flexibility in production
● As equipments are grouped together supervisory is easy
● Reduction of Costs, as they are grouped together
● Production capabilities are increased
● Minimise movements of employees from one equipment to another equipment
● Helps an organisation to evaluate easily an employee at production levels, as employee
works a more or less at constant location site and helps to determine his incentives for
his/her production capabilities
disadvantages of Process Layout -
● More floor space is required to keep all equipment together
● Sometimes, it becomes difficult to control activities of production
● Generally, these are said to be utilised as WIP units, meaning Work in progress, where
an
production material comes as input here, it processes those and then sends that material to
another equipment as input. In such cases, there are chances of Congestion at production
site.
● Automatic material Handling becomes difficult
● Process Layout take
product Layout -
● Product Layout refers to sequential arrangement of machines and components parts in
one line
based on sequence rules of production
● In simple terms, we can say that it is layout where a raw material moves in straight line
from one
equipment to another equipment in order to complete it as finished good
Advantages of Product Layout -
● As this type of layout prefers mechanical feeding into devices, it brings down cost of
production
● Takes less time for production
● Considered as highly economical among layouts
● Better Production controls
● Small floor space for single machine
Disadvantages of Product layout -
● Lack of Flexibility in production operations
● Supervisory on operations are bit low
● Less Scope for expansion of this layout
combined Layout
● This type of layout is a combination of Product layout and Process layout
This type of layout inherits the advantages and disadvantages from Product and process
Layouts
● However, its usage in organizations purely based on its products produced for market
and itsbusiness
Fixed Position Layout
● This type of layout is about transfer of productional resources like- human resources, or
machines towards the production site which is already fixed and stable
● This layout is also called as Static Layout or fixed Location Layout
dvantages of Fixed position Layout -
● Low investment for layout
● Helps to produce differentiated products ( ex- Aircrafts produced in various models)
● Very Flexible in nature, the workers get easily associated with it
● Production centers work can be designed in independent manner
Disadvantages of Fixed Position layout -
● Transfer of machines from one place of another place, if required is a loss of time and
costly
● These type of Layout need very expensive equipments for its operations
● High Skilled Professional are needed