Professional Documents
Culture Documents
Learning Curve Materi PDF
Learning Curve Materi PDF
Work Measurement
Solved Problems
OM Spotlight: Work
Key Terms and Concepts
Measurement Activities in
Roller Coaster Maintenance Questions for Review and
Discussion
Time Study Methods
Problems and Activities
OM Spotlight: Job Description—
City of Phoenix, Arizona Cases
Operations Analyst for City of Rehabilitation Hospital of
Phoenix, Arizona Florida
Predetermined Time Standard The State versus John Bracket
Methods Endnotes
Learning Curves
Practical Issues in Using Learning
Curves
SUPPLEMENTARY
CHAPTER A Work Measurement,
Learning Curves, and
Standards
Learning Objectives
• To understand the purpose of work measurement and methods
that organizations use to perform time studies, calculate standard
times, and estimate the proportion of time spent performing differ-
ent types of tasks.
• To understand the concept of learning curves and how they can
affect business decisions, and to learn computational methods for
estimating aggregate production times in learning environments.
A2
• “John Bracket has filed a lawsuit against us, George,” stated Paul Cumin, the
vice president of operations for the State Rehabilitation Services Commission
(SRSC). “George, you are Bracket’s manager. So what happened? He claims
you raised his daily productivity quota for processing invoices from 200 to 300.”
“Paul, I did raise his quota to more closely match the other employees. Bracket
is always late for work, plays games on the computer, violates our dress code,
and is generally disliked by his peer employees,” responded George Davis,
Bracket’s immediate supervisor. “Is there any logic or numerical basis for your
increasing his quota?” Paul asked him. As he left the room, George responded,
“Paul, I’ll get my work study data out, review it, and get back to you this
afternoon.”
Time standards represent reasonable estimates of the amount of time needed to per-
form a task based on an analysis of the work by a trained industrial engineer or
other operations expert. The first episode highlights the importance of time stan-
dards in setting job performance standards, and how they can affect management-
labor relations. Bracket’s new processing quota of 300 invoices per day may or may
not be a fair job performance goal, but the only way to find out is through care-
ful work measurement analysis. You will have the opportunity to analyze this sit-
uation in more detail in one of the cases at the end of this chapter.
In the second episode, Jacobs cannot understand the discrepancy between his
estimate of 20,000 hours and Conner’s value of 14,232 hours to produce a batch
of turbines. The assembly of electrical power-generating turbines is a complex job
with labor costs for engineers and production employees approaching $100 per
hour. Obviously, a difference of 5,768 hours can be significant in terms of cost,
budgets, and pricing decisions. Where did Conner get his figure? Moreover, why
should the total time to produce ten turbines be less than 10 times the time to pro-
duce the first? Many work tasks show increased performance over time because of
learning and improvement. Failure to recognize this can lead to poor budgeting,
erroneous promises for delivery, and other bad management decisions.
In this supplemental chapter we introduce work measurement, standards, and
learning curves, and how they are used in business. Most large corporations de-
velop standard times for routine work tasks using work measurement. They are
used in setting job performance standards, establishing recognition and reward pro-
grams, and for compensation incentives. Valid standard times are vital to accom-
plishing most of the process design and operations analysis methods described in
this text. Smaller businesses, especially service businesses, usually do not have such
standard times for their work activities and tasks. However, if one seeks to improve
operations, analyzing work and determining standard times for key work activities
and processes is a crucial first step.
Supplementary Chapter A: Work Measurement, Learning Curves, and Standards A3
Without accurate time standards it is impossible to perform these tasks. For ex-
ample, the process of assembly-line balancing, discussed in Chapter 7, requires ac-
curate estimates of the standard time required to perform each task or work activity.
Standard times are management’s anchor in an uncertain operating environ-
ment. To establish usable standards, work tasks and activities must be carefully
defined and studied. Thus, job and process analysis should precede work measure-
ment. How long it takes to perform a task depends on the worker’s pace, operat-
ing conditions, and work method. Normal time is the expected time required to Normal time is the expected
perform some work activity at a normal pace, under normal operating conditions, time required to perform
and using a prescribed method. By a normal pace, we mean a pace that can be con- some work activity at a
sistently performed by the average employee without undue fatigue under normal normal pace, under normal
operating conditions. The prescribed method to perform a task is usually developed operating conditions, and
using a prescribed method.
by industrial engineers who identify the most efficient and safest procedure.
However, not everyone works at the same pace, and people may either slow
down or speed up their effort when they are being observed. Thus, observed times
must be adjusted by a factor that accounts for the worker’s effort. Normal times
are calculated using the following equation:
The performance rating factor (PRF) is a judgment made by the person doing the
time study as to whether the employee is working at the normal pace (that is, 1.0
or 100 percent), below the normal pace (that is, less than 1.0 or 100 percent), or
above the normal pace (that is, greater than 1.0 or 100 percent). For example, a
PRF of 115 percent indicates that work is being performed at a pace that is 15 per-
cent above normal. Typically, three or more highly trained work study analysts
make these judgments independently and then the average PRF is used in Equation
(A.1). For example, if work study analyst A rates an employee at PRF 1.2 and
an observed time of 2.5 minutes per unit, B rates the same employee at PRF 1.0
and an observed time of 2.2 minutes per unit, and C rates the same employee at
PRF 0.9 and an observed time of 2.1 minutes per unit, then, using Equation A.1,
the normal time is 2.363 minutes per unit (1.2 2.5 1.0 2.2 0.9 2.1)/3. Allowances include time for
Normal times must also be adjusted for personal time and unavoidable delays. labor fatigue and personal
Allowances include time for labor fatigue and personal needs, equipment break- needs, equipment breakdowns,
downs, rest periods, information delays, and so on. Most allowance factors are in rest periods, information
the range of 10 to 20 percent. Standard time is normal time adjusted for allowances. delays, and so on.
It is computed using the following equation:
Standard time is normal time
Standard time Normal time (1 Allowance factor) (A.2) adjusted for allowances.
A4 Supplementary Chapter A: Work Measurement, Learning Curves, and Standards
OM SPOTLIGHT
Work Measurement Activities in Roller Coaster
Maintenance1
A popular roller coaster called the jobs related to inspection, maintenance, and repair were to
Runaway Mine Train (RMT) requires be time studied.
extensive inspections, maintenance, A sampling plan was established and the data collected.
and repair to keep it running and earning revenue. During Once time standards were determined for all maintenance-
peak season, the RMT is expected to operate 16 hours per related tasks, the number of employees required was com-
day. Each part of the RMT, from structural steel uprights to puted. Preventive maintenance was done each Wednesday
the bearings in the wheels, must be inspected and well main- and required additional changeover or setup time. Two teams
tained. All RMT daily work tasks are grouped into work ac- were established, each with four people. One team worked
tivities such as complete train inspection, track inspection, Sunday to Wednesday and the second team from Wednes-
electrical inspection, cleaning the trains, and vehicle inspec- day to Saturday. The two teams overlapped on Wednesday
tion. Each work activity is assigned a craft employee such for one-half day to get all preventive maintenance done. Work
as a track and vehicle machinist, electrician, sound engineer, measurement information and analysis plays a major role in
custodian, oiler, software and computer operator, and so on. achieving the objectives of operating safety, efficiency, and
Sixty-one distinct jobs existed for this attraction but only the profitability.
For example, if the normal time is 2.363 and an allowance factor of 1.2 is used,
the standard time is 2.836 minutes per unit.
The performance rating factor and allowance factor are based on human judg-
ments, and therefore, the procedure for establishing standard times must include
audits, third-party reviews, and extensive training and retraining of work-study an-
alysts to keep them properly calibrated. Videotapes of employee work activities are
often used to train work-study analysts (also see OM Spotlight: Work Measure-
ment Activities in Roller Coaster Maintenance).
general rule is to take the largest sample size estimate from Equation (A.3) for
all tasks.
3. Rate the employee’s performance of each task or activity. As noted, rating hu-
man performance accurately requires considerable training.
4. Use the performance rating and Equation (A.1) to determine the normal task time.
The sum of those task times is the normal time for the entire work activity.
5. Determine the allowance factor for the work activity.
6. Determine the standard time using Equation (A.2).
To illustrate time studies, we will consider a simple manual assembly process. An operations activity chart
Exhibits A.1 and A.2 show a faucet assembly and an operations activity chart, is a detailed analysis of work
which provide the basis for developing the time study. An operations activity chart is motions performed for a
a detailed analysis of work motions performed for a manual task. manual task.
OM SPOTLIGHT
Job Description—City of Phoenix, Arizona2
The city of Phoenix, Arizona posted • Evaluates office machines and office or heavy operations
this job description for an “opera- equipment relative to quality, price, and determination of
tions analyst.” The job is to design, best equipment;
conduct, and participate in major • Organizes, authors, and presents oral and written research
work standards and systems analyses covering a wide vari- reports;
ety of government functions. Considerable flexibility is al- • Identifies work elements in detail and develops complex
lowed in this job for designing and conducting each study. flow charts, work standards, and work method improve-
Assignments are comprehensive and entail interactions ments;
between major government and civic organizational units. • Demonstrates continuous effort to improve operations,
The duties also involve substantial contact with high-level decrease turnaround times, streamline work processes,
government officials, so writing and presentation skills are and work cooperatively and jointly to provide quality
essential. seamless customer service.
Required Knowledge, Skills and Abilities:
Operations Analyst for City of Phoenix, Arizona
• Principles of work measurement and activity analysis.
Essential Job Requirements:
• Principles of statistical methods and techniques.
Designs systems, procedures, forms, and work measure-
• Employ work measurement techniques, i.e., stopwatch,
ments to effect methods improvement, work simplification,
pre-determined data, and time ladders.
improvement of manual processing, or for adaption to com-
• Understand and carry out oral and written instruction pro-
puter processing;
vided in the English language.
• Designs control reporting systems for use in unit mea- • Conduct studies and research with minimal supervision.
surement for evaluation of performance and for deter- • Complete assignments with independent thought and ac-
mination of staffing levels and recommends staffing tion within the scope of specific assignments.
levels to section chief; • Work cooperatively with other City employees, outside
• Studies operational problems such as office space utiliza- regulatory agencies, and the public.
tion, equipment utilization, management reporting sys- • Enter data or information into a terminal, PC, or other
tems, staffing patterns, process efficiency, and prepares keyboard device using various software packages.
written recommendations for changes and/or improve- • Communicate orally with customers, co-workers, and the
ments; public in face-to-face one-on-one settings, in group set-
• Develops project plans to achieve established objectives tings, or using a telephone.
and time schedules; • Produce written documents with clearly organized
• Writes and/or edits manuals for uniform use of new or thoughts using proper English sentence construction,
revised procedures and policies; punctuation, and grammar.
A6 Supplementary Chapter A: Work Measurement, Learning Curves, and Standards
Exhibit A.1
Faucet Stem Assembly
Exhibit A.2
Operations Activity Chart of
Faucet Stem Assembly
To determine the sample size needed for a time study, suppose we desire a 90
percent probability that the value of the sample mean provides a sampling error of
.01 minute or less. Further assume that is estimated from historical experience
to be .019. Therefore, .10, z.05 1.645, and E .01. Using Equation (A.3),
we compute
n (1.645)2(.019)2/(.01)2 9.8 10 observations
A sample size of 10 or more will provide the required precision. (Fractional values
of n should always be rounded upward to ensure that the precision is at least as
good as desired.)
A spreadsheet that can be used for a typical time study when continuous tim-
ing is used is shown in Exhibit A.3. Continuous timing involves starting the clock
at the beginning of each task and recording the cumulative time at the completion
of each work task. The task times are found by subtracting successive cumula-
tive times. These are added and averaged to obtain the mean time for each work
task. Performance ratings are given in the next-to-last column. By multiplying the
performance-rating factor by the average observed time, we obtain the normal time
for each work task and add them. Next the allowances are determined to compute
the standard time. For the faucet-stem assembly, we assume a 5 percent personal
allowance, 5 percent fatigue allowance, and 10 percent delay of materials allowance.
Therefore, the total allowance factor is 20 percent.
The standard time for the faucet assembly job is then computed, using Equation
(A.2), as: Standard time (0.550)(1 .2) 0.660 minutes per faucet assembly.
Thus, an assembler of faucet-stem assemblies can be expected to produce at a
standard rate of 1/0.660 parts per minute, or about 91 parts per hour. In a 7-hour
workday with 1 hour off for lunch and breaks, an assembler can produce
(7)(91) 637 faucet-stem assemblies per workday.
Exhibit A.4 shows the results using Excel’s Regression tool. The model obtained
from this analysis is
Time 0.237 2.804 Poles 0.514 Wire 1.09 Cross arms
0.170 Insulators 1.50 Guy wires
The regression analysis shows a high R2 value, showing a strong fit to the data.
Moreover, the p values for the regression coefficients are significant, meaning that
each of the variables contributes to predicting time. If the utility faces a situation
in which it estimates installation of 4 poles, 1,500 feet of wire, 7 cross arms, 12
insulators, and no guy wires, the predicted time for the job would be
Time 0.237 2.804 4 0.514 1500 1.09 7 0.170 12
1.50 0 792 hours
Exhibit A.4 Results of Regression Analysis for Electric Power Line Installation
electronics manufacturer, for example, may have much experience with assembling
small electronic components using human labor and keep a record of past micro-
motion and normal time analyses. For similar new tasks and electronic component
parts, predetermined time standards can be used to estimate new normal times. Pre-
determined time standards were originally developed for labor-intensive human
tasks but data sets exist for machine micromovements, such as those involving an
automated drill press.
Predetermined time standards are advantageous since they cost less than a stop-
watch time study, avoid needing multiple performance ratings, and are best for new
goods and services. However, this type of micromotion-based time standard is not
justified for small order sizes or infrequent production runs. In addition, once the
new good or service and its associated process are stable and running well, stop-
watch or work-sampling time studies still need to be done. Finally, the assumption
of additivity is sometimes questionable, since a process or assembly sequence of dif-
ficult versus simple micromotions may or may not be additive.
managing reflects Taylor’s philosophy: Managers and engineers think, and work-
ers do what they are told. A total quality approach suggests that empowered work-
ers can manage their own processes with help from managers and professional staff.
Experience at GM’s NUMMI plant has shown that work standards can have
very positive results when they are not imposed by dictum, but designed by the
workers themselves in a continuous effort to improve productivity, quality, and
skills.3 At the GM-Fremont plant, industrial engineers performed all of the meth-
ods analysis and work-measurement activities, designing jobs as they saw fit. When
the industrial engineers were performing motion studies, workers would naturally
slow down and make the work look harder. At NUMMI, team members learned
techniques of work analysis and improvement, then timed one another with stop-
watches, looking for the safest, most efficient way to do each task at a sustainable
pace. They picked the best performance, broke it down to its fundamental elements,
and then explored ways to improve the task. The team compared the analyses with
those from other shifts at the same workstation, and wrote detailed specifications
that became the work standards. Results were excellent. From a total quality per-
spective, this was simply an approach to reduce variability. In addition, safety and
quality improved, job rotation became more effective, and flexibility increased.
Work Sampling
Work sampling is a method Work sampling is a method of randomly observing work over a period of time to
of randomly observing work obtain a distribution of the activities that an individual or a group of employees
over a period of time to perform. Work sampling determines the proportion of time spent doing certain
obtain a distribution of the activities on a job. It can be used to determine the percentage of idle time and also
activities that an individual or as a means of assessing nonproductive time to determine performance ratings or
a group of employees
to establish allowances. Work sampling is based on the binomial probability dis-
perform.
tribution, because it is concerned with the proportion of time that a certain activ-
ity occurs. Thus, the sample size (n) for a work-sampling study is found by using
Equation (A.4):
n (z /2)2p(1 p)/E2 (A.4)
where p is an estimate of the population proportion of the binomial distribution.
Obviously, p will never be known exactly, since it is the population parameter we
are trying to estimate. We can choose a value for p from past data, a preliminary
sample, or a subjective estimate. If p is difficult to determine in those ways, we can
select p 0.5, since it gives us the largest value for p(1 p) and therefore pro-
vides the largest and most conservative sample size.
To illustrate work sampling, consider the secretarial staff in a college depart-
ment office. The secretaries spend their time in various ways, such as
1. answering the telephone,
2. typing drafts of technical papers,
3. revising technical papers,
4. talking to students,
5. duplicating class handouts,
6. other productive activities,
7. personal time,
8. idle periods.
Suppose that a new voice-activated word processing software could greatly increase
productivity in typing, spell checking, and revising technical papers. However, the
purchase of this product is not justified unless it is used a significant percentage of
the time. To determine the percentage of time secretaries spend performing the rel-
evant work activities, we could observe them at random times and record their ac-
tivities. If 100 observations are taken, we might get the results in Exhibit A.5.
Supplementary Chapter A: Work Measurement, Learning Curves, and Standards A11
Exhibit A.5
Activity Frequency Work Sampling Activity
Frequency Data
Answering the telephone 14
Typing drafts 21
Revising papers 7
Talking to students 10
Duplicating 15
Other productive activity 25
Personal 6
Idle 2
Total 100
The learning curve concept is only 80 percent as much time as the fourth; the sixteenth plane 80 percent of the
that direct labor unit cost time of the eighth, and so on. The decrease in production time as the number pro-
decreases in a predictable duced increases is illustrated in Exhibit A.6. As production doubles from x units to
manner as the experience in 2x units, the time per unit of the 2xth unit is 80 percent of the time of the xth unit.
producing the unit increases. This is called an 80 percent learning curve. Such a curve exhibits a steep initial de-
cline and then levels off as employees become more proficient in their tasks. In gen-
A p-percent learning curve eral, a p-percent learning curve characterizes a process in which the time of the 2xth
characterizes a process in unit is p percent of the time of the xth unit.
which the time of the 2xth Defense industries (for example, the aircraft and electronics industries), which
unit is p percent of the time introduce many new and complex products, use learning curves to estimate labor
of the xth unit. requirements and capacity, determine costs and budget requirements, and plan and
schedule production. Eighty-percent learning curves are generally accepted as a stan-
dard, although the ratio of machine work to manual assembly affects the curve per-
centage. Obviously, no learning takes place if all assembly is done by machine. As
a rule of thumb, if the ratio of manual to machine work is 3 to 1 (three-fourths
manual), then 80 percent is a good value; if the ratio is 1 to 3, then 90 percent is
often used. An even split of manual and machine work would suggest the use of
an 85 percent learning curve. The learning factor may also be estimated from past
histories of similar parts or products.
Mathematically, the learning curve is represented by the function
y axb (A.5)
where
x number of units produced,
a hours required to produce the first unit,
y time to produce the xth unit, and
b constant equal to ln p/ln 2 for a 100p percent learning curve.
Thus, for an 80 percent learning curve, p 0.8 and
b ln 0.8/ln 2 (0.223)/0.693 0.322
For a 90 percent curve, p 0.9 and
b ln 0.9/ln 2 (0.105)/0.693 0.152
Although the learning curve theory implies that improvement will continue for-
ever, in actual practice the learning curve flattens out. As management interest in
the initial creation of a new good or service decreases, employees may reach a level
Exhibit A.6
An 80 Percent Learning Curve
Supplementary Chapter A: Work Measurement, Learning Curves, and Standards A13
of production that is expected of them and hold that rate. Another way to view
the theory of learning is that early on extraordinary new practices and methods
are found to dramatically improve performance, such as substituting plastic for
steel parts. Later in the life of the learning curve, the focus shifts to incremental
improvements.
Learning curves can apply to individual employees or, in an aggregate sense, to
the big-picture initiatives such as pricing strategy. For example, learning curves are
used to monitor employees typing and encoding checks in a bank’s operations. Each
employee must reach a certain threshold-learning rate within 6 months or more
training is required. In some cases, the bank-encoding employee is transferred to
another bank job because the employee is just not suited to the encoding job. Learn-
ing curves help managers make such decisions. From an aggregate and strategic per-
spective, a firm may use the learning-curve concept to establish a pricing schedule
that does not initially cover cost in order to gain increased market share.
Managers should realize that improvement along a learning curve does not take
place automatically. Learning-curve theory is most applicable to new products or
processes that have a high potential for improvement and when the benefits will be
realized only when appropriate incentives and effective motivational tools are used.
Organizational changes may also have significant effects on learning. Changes in
technology or work methods will affect the learning curve, as will the institution
of productivity and quality-improvement programs.
As an illustration of learning curves, suppose a manufacturing firm is intro-
ducing a new and complex machine and has determined that a 90 percent learning
curve is applicable. Estimates of demand for the next 3 years are 50, 75, and 100
units. The time to produce the first unit is estimated to be 3,500 hours. Therefore,
the learning-curve function is
y 3,500x0.152
Consequently, the time to manufacture the second unit will be
3,500 (2)0.152 3,150 hours
Exhibit A.7 gives the cumulative number of hours required to produce the 3-year
demand in increments of 25 units. Thus, to produce the 50 units in the first year,
the firm will require 112,497 hours. If we assume that each employee works 160
hours per month, or 1,920 hours per year, we find that for the first year the firm
will need
112,497/1,920 59 employees
to produce this machine. In the second year, the total number of hours required
will be the difference between the cumulative requirements for the first two years’
production (246,160 hours) and the first year’s production (112,497 hours), or
246,160 112,497 133,663 hours
So the labor requirements for the second year are
133,663 / 1,920 70 employees
Similarly, for the third year, the labor requirements are
406,112 246,160
83 employees
1,920
These are aggregate numbers; at a more detailed planning level, they will vary ac-
cording to how production is actually scheduled over the year. Also, note that the
number of employees required to produce these units increases in a nonlinear way,
A14 Supplementary Chapter A: Work Measurement, Learning Curves, and Standards
Exhibit A.7
Cumulative Time Required Using Cumulative Units Cumulative Hours Required
Learning Curves
25 61,996
50 112,497
75 159,164
100 203,494
125 246,160
150 287,545
175 327,894
200 367,374
225 406,112
reflecting the learning that is taking place among employees. For example, we might
need 59 employees to produce 50 units, 70 employees for 125, and 83 for 225.
Clearly, understanding learning is important for aggregate planning.
Values for learning-curve functions can be easily computed and summarized
through the use of tables. Exhibits A.8 and A.9 present unit values and cumulative
values, respectively, for learning curves from 60 percent through 95 percent. To
find the time to produce a specific unit, multiply the time for the first unit by the
appropriate factor in Exhibit A.8. For the 90 percent learning-curve example pre-
sented earlier, the time for the second unit is 3,500(0.9000) 3,150. The time for
the third unit is 3,500(0.8462) 2,961.7, and so on.
To find the time for a cumulative number of units, we can use Exhibit A.9.
Thus, for a 90 percent learning curve, if the time for the first unit is 3,500, the time
for the first 25 units is 3,500(17.7132) 61,996. Similarly, the time for the first
100 units is 3,500(58.1410) 203,494. The values in Exhibit A.7 were found us-
ing this table.
The experience curve states A broader extension of the learning curve is the experience curve. The experi-
that the cost of doing any ence curve states that the cost of doing any repetitive task, work activity, or project
repetitive task, work activity, decreases as the accumulated experience of doing the job increases. The terms im-
or project decreases as the provement curve, experience curve, and manufacturing progress function are often
accumulated experience of used to describe the learning phenomenon in the aggregate context. Marketing re-
doing the job increases.
search, software design, developing engineering specifications for a water plant, ac-
counting and financial auditing of the same client, implementing a software
integration project, and so on are examples of this broader view. The idea is that
each time experience doubles, costs decline by 10 percent to 30 percent. Costs must
always be translated into constant dollars to eliminate the inflation effect. Of course,
the learning or experience curve does not continue this dramatic decrease in time
and costs indefinitely, and at some point begins to flatten out.
Exhibit A.8
p .60 .65 .70 .75 .80 .85 .90 .95 Unit Values for Learning Curves
x b .737 .621 .515 .415 .322 .234 .152 .074
1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
2 0.6000 0.6500 0.7000 0.7500 0.8000 0.8500 0.9000 0.9500
3 0.4450 0.5052 0.5682 0.6338 0.7021 0.7729 0.8462 0.9219
4 0.3600 0.4225 0.4900 0.5625 0.6400 0.7225 0.8100 0.9025
5 0.3054 0.3678 0.4368 0.5127 0.5956 0.6857 0.7830 0.8877
6 0.2670 0.3284 0.3977 0.4754 0.5617 0.6570 0.7616 0.8758
7 0.2383 0.2984 0.3674 0.4459 0.5345 0.6337 0.7439 0.8659
8 0.2160 0.2746 0.3430 0.4219 0.5120 0.6141 0.7290 0.8574
9 0.1980 0.2552 0.3228 0.4017 0.4929 0.5974 0.7161 0.8499
10 0.1832 0.2391 0.3058 0.3846 0.4765 0.5828 0.7047 0.8433
11 0.1708 0.2253 0.2912 0.3696 0.4621 0.5699 0.6946 0.8374
12 0.1602 0.2135 0.2784 0.3565 0.4493 0.5584 0.6854 0.8320
13 0.1510 0.2031 0.2672 0.3449 0.4379 0.5480 0.6771 0.8271
14 0.1430 0.1940 0.2572 0.3344 0.4276 0.5386 0.6696 0.8226
15 0.1359 0.1858 0.2482 0.3250 0.4182 0.5300 0.6626 0.8184
16 0.1296 0.1785 0.2401 0.3164 0.4096 0.5220 0.6561 0.8145
17 0.1239 0.1719 0.2327 0.3085 0.4017 0.5146 0.6501 0.8109
18 0.1188 0.1659 0.2260 0.3013 0.3944 0.5078 0.6445 0.8074
19 0.1142 0.1604 0.2198 0.2946 0.3876 0.5014 0.6392 0.8042
20 0.1099 0.1554 0.2141 0.2884 0.3812 0.4954 0.6342 0.8012
21 0.1061 0.1507 0.2087 0.2826 0.3753 0.4898 0.6295 0.7983
22 0.1025 0.1465 0.2038 0.2772 0.3697 0.4844 0.6251 0.7955
23 0.0992 0.1425 0.1992 0.2722 0.3644 0.4794 0.6209 0.7929
24 0.0961 0.1387 0.1949 0.2674 0.3995 0.4747 0.6169 0.7904
25 0.0933 0.1353 0.1908 0.2629 0.3548 0.4701 0.6131 0.7880
30 0.0815 0.1208 0.1737 0.2437 0.3346 0.4505 0.5963 0.7775
35 0.0728 0.1097 0.1605 0.2286 0.3184 0.4345 0.5825 0.7687
40 0.0660 0.1010 0.1498 0.2163 0.3050 0.4211 0.5708 0.7611
45 0.0605 0.0939 0.1410 0.2060 0.2936 0.4096 0.5607 0.7545
50 0.0560 0.0879 0.1336 0.1972 0.2838 0.3996 0.5518 0.7486
55 0.0522 0.0829 0.1272 0.1895 0.2753 0.3908 0.5438 0.7434
60 0.0489 0.0785 0.1216 0.1828 0.2676 0.3829 0.5367 0.7386
65 0.0461 0.0747 0.1167 0.1768 0.2608 0.3758 0.5302 0.7342
70 0.0437 0.0713 0.1123 0.1715 0.2547 0.3693 0.5243 0.7302
75 0.0415 0.0683 0.1084 0.1666 0.2491 0.3634 0.5188 0.7265
80 0.0396 0.0657 0.1049 0.1622 0.2440 0.3579 0.5137 0.7231
85 0.0379 0.0632 0.1017 0.1582 0.2393 0.3529 0.5090 0.7198
90 0.0363 0.0610 0.0987 0.1545 0.2349 0.3482 0.5046 0.7168
95 0.0349 0.0590 0.0960 0.1511 0.2308 0.3438 0.5005 0.7139
100 0.0336 0.0572 0.0935 0.1479 0.2271 0.3397 0.4966 0.7112
125 0.0285 0.0498 0.0834 0.1348 0.2113 0.3224 0.4800 0.6996
150 0.0249 0.0444 0.0759 0.1250 0.1993 0.3089 0.4669 0.6902
175 0.0222 0.0404 0.0701 0.1172 0.1896 0.2979 0.4561 0.6824
200 0.0201 0.0371 0.0655 0.1109 0.1816 0.2887 0.4469 0.6757
225 0.0185 0.0345 0.0616 0.1056 0.1749 0.2809 0.4390 0.6698
250 0.0171 0.0323 0.0584 0.1011 0.1691 0.2740 0.4320 0.6646
275 0.0159 0.0305 0.0556 0.0972 0.1639 0.2680 0.4258 0.6599
300 0.0149 0.0289 0.0531 0.0937 0.1594 0.2625 0.4202 0.6557
350 0.0133 0.0262 0.0491 0.0879 0.1517 0.2532 0.4105 0.6482
400 0.0121 0.0241 0.0458 0.0832 0.1453 0.2454 0.4022 0.6419
450 0.0111 0.0224 0.0431 0.0792 0.1399 0.2387 0.3951 0.6363
500 0.0103 0.0210 0.0408 0.0758 0.1352 0.2329 0.3888 0.6314
550 0.0096 0.0198 0.0389 0.0729 0.1312 0.2278 0.3832 0.6269
600 0.0090 0.0188 0.0372 0.0703 0.1275 0.2232 0.3782 0.6229
650 0.0085 0.0179 0.0357 0.0680 0.1243 0.2190 0.3736 0.6192
700 0.0080 0.0171 0.0344 0.0659 0.1214 0.2152 0.3694 0.6158
750 0.0076 0.0163 0.0332 0.0641 0.1187 0.2118 0.3656 0.6127
800 0.0073 0.0157 0.0321 0.0624 0.1163 0.2086 0.3620 0.6098
850 0.0069 0.0151 0.0311 0.0508 0.1140 0.2057 0.3587 0.6070
900 0.0067 0.0146 0.0302 0.0594 0.1119 0.2029 0.3556 0.6045
A16 Supplementary Chapter A: Work Measurement, Learning Curves, and Standards
4. Changes in product design, raw material usage, technology, and/or the process
may significantly alter the learning curve.
5. Humans learn simple task(s) quickly and reach a limit on learning for the task(s),
but for complex intellectual task(s) such as software programming, learning is
less limited and may continue. The first type of learning is described with an
exponential curve; the more complex learning is sometimes described by an S-
shaped curve.
6. A contract phaseout may result in a lengthening of processing times for the last
units produced, since employees want to prolong their income period.
7. The lack of proper maintenance of tools and equipment, the nonreplacement of
tools, or the aging of equipment can have a negative impact on learning.
8. Keeping groups of employees together, such as highly specialized consulting
groups, reaps a productivity benefit but may stifle innovation and new experi-
ences.
9. The transfer of employees may result in an interruption or a regression to an
earlier stage of the learning curve or may necessitate a new learning curve.
10. Learning curves focus on direct labor and ignore indirect labor that also con-
tributes to efficiency and effectiveness.
SOLVED PROBLEMS
SOLVED PROBLEM #1
Assume your first job out of school is as a branch you must decide how many branch bank staff to assign
manager for a major bank. Your branch also has a back- to this work activity and when they will do the work.
office operation where bank packs of $300 are assem-
bled for retail businesses. Each bank pack contains two Solution:
$20 bills, ten $10 bills, twelve $5 bills, and one hun- a. To determine the normal and standard times, note
dred $1 bills. Retail customers become upset when these that the continuous stopwatch study timed each
bank packs are not available since they usually pick denomination separately and the cumulative times
them up before their retail store opens. A continuous are shown across each row. The “Difference” rows
stopwatch study collected the information shown in the show the individual times.
table below. The policy of the bank is to use a 20 per-
cent allowance factor for branch bank operations. (a) b. (200 bank packs)(31.426 minutes)/10 bank packs
What is the normal and standard time for a bank pack? (20)(31.426 minutes) 628.5 minutes or
(b) How long would it take to pack 200 packs? Now 10.5 hours
SOLVED PROBLEM #2
In a work-sampling study an administrative assistant Output during this period 1,800 forms.
was found to be working 2,700 times in a total of 3,000 Actual time per form 216(60)/1,800 7.2 minutes,
observations made over a time span of 240 working or 8.33 forms per hour.
hours. The employee’s output was 1,800 forms. If a per- Normal time Actual observed time Performance
formance rating of 1.05 and an allowance of 15 per- rating 7.2(1.05) 7.56 minutes.
cent are given, what is the standard output for this task? Standard time 7.56(1.15) 8.694 minutes per
form.
Solution: Standard output 60/8.694 6.9 forms per hour,
Effective number of hours worked 2,700(240)/3,000 or 55 forms per 8-hour day.
216.
SOLVED PROBLEM #3
A yacht manufacturer has been commissioned to build Unit Time Required
five sailboats for a Florida resort. The first boat took 1 6,000
6,000 labor-hours to build. How many labor-hours will 2 5,400
it take to complete the order, assuming that a 90 per- 3 5,077
cent learning curve is applicable? 4 4,860
5 4,698
1. What is work measurement? How can it be used to 4. Do you think the following jobs require standard
improve organizational performance? times? Explain your reasoning.
2. Explain the concept of normal time. How can an a. Carpet installers
operations manager verify whether the time to per- b. Software programmers
form a task is indeed “normal”? c. Cable T.V. installers
3. How does standard time differ from normal time? d. Hotel maids
How are standard times used in operations man- e. Bank tellers
agement? f. Airline flight attendants
Supplementary Chapter A: Work Measurement, Learning Curves, and Standards A19
6. Select one of the jobs in Question 4 and describe 11. Explain work sampling. Discuss some applications
what data are needed to use regression analysis to of work sampling in both manufacturing and ser-
develop normal times. vice organizations.
7. What is time study? Describe the basic procedure 12. Explain the concept of learning curves. Why are they
for conducting a time study. important in managing operations?
8. How do predetermined time standards differ from 13. What types of jobs are best suited to the application
those found through a stopwatch time study? of learning curves? How would you determine this?
9. Why are work standards the subject of much de- 14. What is the experience curve and how does it differ
bate? Do some research into arguments and issues from the traditional learning curve?
raised by unions to provide an additional basis for 15. Discuss some practical issues that managers must
your response. consider in using learning curves.
1. What sample sizes should be used for these time processing time of a single order form has an error
studies? of 0.05 minute? There is no estimate of the clerical
a. There should be a .95 probability that the value staff’s proportion of productive time.
of the sample mean is within 2 minutes, given 4. Exhibit A.10 shows a partially completed time-study
that the standard deviation is 4 minutes. worksheet. Determine the standard time for this op-
b. There should be a 90 percent chance that the eration.
sample mean has an error of 0.10 minutes or
less when the variance is estimated as 0.50 min- 5. Using a rating factor of 1.00, compute the normal
utes. time for drilling a hole in a steel plate if these are
the observed times (in minutes):
2. Compute the number of observations required in a
work-sampling study if the standard deviation is 0.2 0.24 0.25 0.29 0.24 0.27
minute and there should be a 90 percent chance that 0.25 0.245 0.19 0.20 0.23
the sample mean has an error of (a) 0.15 minute,
(b) 0.10 minute, and (c) 0.005 minute. 6. Using a fatigue allowance of 20 percent, and given
3. In a work-sampling study, what sample size should the following time-study data obtained by continu-
be used to provide 95 percent probability that the ous time measurement, compute the standard time.
Cycle of Observation
Activity 1 2 3 4 5 Performance Rating
Get casting 0.21 2.31 4.41 6.45 8.59 0.95
Fix into fixture 0.48 2.59 4.66 6.70 8.86 0.90
Drilling operation 1.52 3.65 5.66 7.74 9.90 1.00
Unload 1.73 3.83 5.91 7.96 10.10 0.95
Inspect 1.98 4.09 6.15 8.21 10.30 0.80
Replace 2.10 4.20 6.25 8.34 10.42 1.10
A20 Supplementary Chapter A: Work Measurement, Learning Curves, and Standards
Cumulative time .09 .12 .06 .11 .10 .09 .13 .12 .13
A 1.05
Element time
Cumulative time .23 .28 .21 .20 .24 .22 .26 .25 .25
B 1.00
Element time
Cumulative time .46 .49 .46 .44 .47 .47 .49 .46 .48
C .90
Element time
Cumulative time .61 .66 .62 .59 .69 .67 .67 .66 .70
D .85
Element time
Cumulative time .70 .74 .72 .68 .79 .80 .76 .78 .81
E 1.00
Element time
Cumulative time 1.00 1.02 .98 .99 1.07 1.09 1.02 1.06 1.09
F 1.10
Element time
Sum
Allowances: Personal 5% Standard Time __________
Fatigue 5%
Delay 5%
7. Provide the data missing from the following infor- 11. Linda Bryant recently started a small home-
mation. Time is in minutes. construction company. In an effort to foster high
quality, rather than subcontracting individual work,
Actual Normal Standard Performance Fatigue she has formed teams of employees who are re-
Time Time Time Rating Allowance sponsible for the entire job. She has contracted with
10.6 _____ _____ 1.06 20% a developer to build 20 homes of similar type and
7.8 7.2 _____ _____ 15% size. She has four teams of workers. The first homes
6.5 _____ 7.98 1.05 _____ were built in an average of 145 days. How long will
2 _____ _____ 1.10 15% it take to complete the contract if an 85 percent
learning curve applies?
8. A part-time employee who rolls out dough balls at
12. Suppose a manufacturer of copiers has concluded
a pizza restaurant was observed over a 40-hour
that a 75 percent learning curve applies to the time
period for a work-sampling study. During that time,
a beginning service technician takes to install copy
she prepared 550 pieces of pizza dough. The ana-
machines. If the time required to install the first copy
lyst made 50 observations and found the employee
machine is estimated to be 4 hours, what is an esti-
not working four times. The overall performance
mate of the time required by a new technician to in-
rating was 1.10. The allowance for the job is 15 per-
stall the second and third copiers?
cent. Based on these data, what is the standard time
in minutes for preparing pizza dough? 13. A manufacturer has committed to supply 16 units
of a particular product in 4 months (that is, 16
9. How many observations should be made in a work-
weeks) at a price of $30,000 each. The first unit
sampling study to obtain an estimate within 10 per-
took 1,000 hours to produce. Even though the sec-
cent of the proportion of time spent changing tools by
ond unit took only 750 hours to produce, the man-
a production worker with a 99 percent probability?
ufacturer is anxious to know:
10. Operating at an 80 percent learning rate, the first
a. if the delivery commitment of 16 weeks will be
unit took 72 hours to produce. How long will the
met,
32nd unit take?
Supplementary Chapter A: Work Measurement, Learning Curves, and Standards A21
b. whether enough labor is available (currently 500 Apply learning-curve theory to each of those issues.
hours are available per week), Assume the material cost per unit equals $22,000;
c. whether or not the venture is profitable. labor equals $10 per labor-hour, and overhead is
$2,000 per week.
CASES
Exhibit A.11 Work Measurement Time Study Original Data for Rehabilitation Services Commission
Process: Invoices
Cumulative Time (ct)
Select Time (t) All times in (minutes. hundredths of seconds)
Process: Invoices
All times in (minutes. hundredths of seconds)
to #4 represent four different commission employees 1.595)/4]. With an allowance factor of 20 percent,
doing the same job as Bracket—processing commission the standard time is 2.066 (1.722 1.2) minutes per
invoices. These data result in an average normal time invoice, or 29.04 per hour. During a typical 7-hour
per invoice of 1.0915 minutes [(1.265 1.221 1.003 workday, Bracket could process 203.29 invoices per
0.877)/4]. With an allowance factor of 20 percent, day, assuming a 1-hour lunch break.
the standard time is 1.3098 (1.0915 1.2) minutes per
a. Whose case is justified—Davis or Bracket? Explain.
invoice, or 45.81 per hour. During a typical 7-hour
workday, an average employee could process 320.66 b. What other issues should be considered?
invoices per day, assuming a 1-hour lunch break. c. Would you present these data in court? Why or why
A similar study was performed for Bracket’s invoice- not?
processing productivity; these results are shown in Ex-
d. What are your final recommendations?
hibit A.12. These data result in an average normal time
per invoice of 1.722 minutes [(1.808 1.452 2.032
Exhibit A.12 Work Measurement Time Study Original Data for John Bracket
Process: Invoice
Cumulative Time (ct)
Select Time (t) All times in (minutes. hundredths of seconds)
Process: Invoice
All times in (minutes. hundredths of seconds)
ENDNOTES
1 Genovese, S. M., “Work Measurement and Process Improvement Study of Roller Coaster Preventive Maintenance,” March 23, 2003,
http://www.theroadscholars.com.
2 City of Phoenix, Arizona, Job Description, Operations Analyst, http://www.ci.phoenix.az.us/JOBSPECS/05260.html.
3 Adler, Paul S., “Time-and-Motion Regained,” Harvard Business Review Jan.–Feb. 1993, pp. 97–108.
4 Copyright © 2004, David A. Collier. All rights reserved.