Methods and Value engineering (IEng 3121)

By: Eden A

Bahir Dar Institute of Technology (BiT)

Faculty of Mechanical & Industrial engineering
Industrial Engineering Program

June 2022

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 Chapter 2

Productivity and Work study

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 Chapter outline

• Introduction
• Productivity and the standard of living
• Productivity and the organization
• Productivity, work study, work content
and time
• Human factor, Working conditions and
Work Study

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 INTRODUCTION
• With increasing complexities of the technological
world, need to simplify the work system has been
increasing day by day.
• Work study is an area of knowledge that
addresses the problem of work simplification
with the basic objectives of:

1. PRODUCTIVITY ENHANCEMENT, and

2. HUMAN COMFORT & SAFET

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 Introduction…
What is productivity?
• Productivity has a number of different meanings
• General equation of productivity
Productivity=Output/Input
The others;
*Labor productivity=units produced/hours worked
*Capital productivity=output/capital input
*Material productivity=output/materials input

*Productivity is a Measure of Performance

Individual -- Group – Organization
Nation
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--
 Introduction…
Work study
Work study is the systematic examination of the methods of
carrying on activities so as to improve the effective use of
resources and to set up standards of performance for the
activities being carried out.
• Work study then aims at examining the way an activity is being
carried out, simplifying or modifying the method of operation to
reduce unnecessary or excess work, or the wasteful use of
resources, and setting up a time standard for performing that
activity.
• The relation between productivity and work study is thus
obvious.

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 Introduction…
• WORK STUDY IS A TOOL OF PRODUCTIVITY
ENHANCEMENT.

• It simplifies a job TO
REDUCE
UNNECESSARY OR EXCESS WORK,
WASTEFUL USE OF RESOURCES
and sets up STANDARD TIME for
performing that job.
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 Introduction…
THIS IMPLIES THAT :
• THERE IS A DIRECT RELATIONSHIP
BETWEEN WORK STUDY AND
PRODUCTIVITY.
• THUS, BY APPLYING WS PRINCIPLES IF THE
COST IS REDUCED BY 20%, THEN, WE CAN
SAY THAT PRODUCTIVITY HAS GONE UP BY
20%.

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 Productivity, Work study and work
content
• Productivity

*Reduction in wastage of resources Resources:

men, machines, material, power, space, time,
etc.
*Objective: to find better, cheaper, easier,
quicker and safer means

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 P&WS…
• Work study

*To determine the best method of performing each

operation and to eliminate wastage so that production
increases with less fatigue
*Reduces wastage of time, effort, increases the
efficiency
“Work Study is an organized continuous effort to
improve productivity, quality and to reduce costs
within an organization” concerning on Resource
utilization

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 P&WS…
• To appreciate how work study acts to cut down costs
and reduce the time of a certain activity, it is
necessary to examine more closely what that time
consists of.
How the Total time of a Job is Made Up?
• The time taken by a worker or a machine to carry out an
operation or to produce a given quantity of a certain product
may be considered as made up in the following manner:
• Basic work content + work content added by poor product
design or materials utilization + work content added by in-
efficient methods or operation + in-effective time resulting
from human resources contribution. (explained in ch-1)

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 Motion and Time study and
Productivity
• What is the relation between Motion and
Time study and Productivity?

✓ Productivity of Organization and Individuals

✓ Elimination of unnecessary work
✓ The design of methods and procedures
✓ Most effective and least effort
✓ System must be suited to the person.
 Cont’d…
• Our objective is to find the ideal method or the method
nearest to the ideal that can be practically used.
• Motion and time study is the systematic study of work
systems with the purposes of

1. Developing the preferred system and method

2.Standardizing this system and method
3. Determining the time required by a qualified and properly trained
person working at a normal pace to do a specific task and
operation
4. Assisting in training the worker in the preferred method.
Classification of work study and their
relationship with productivity
Method Study
To simplify the job and develop more
economical methods of doing it

Work Study

Work measurement
To determine how longit should
take to carry out

Higher
Productivity
 Productivity and standard of living
Standard of living
• The extent to which a person is able to provide the thingsthat
are necessary for sustaining and enjoying life.
• Standard of living of a representative family differs greatly in
different parts of the world.
• What is considered a necessity in one part of the world could
be considered a luxury in the other.
• Basic necessities of a minimum decent standard of living:
Food, clothing, housing and hygiene. Also, security and
education also considered constituents.

• Greater the amount of goods and services produced in any

community, the higher its the average standard of living.
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Standard of living…

• There are two ways of increasing the amount of goods and

services produced:
- Increase the employment and investment in creating jobs…So
that more people are producing goods required for the society.
- Increase productivity…Same amount of labor produces more
goods.
We want:
• More and cheaper food by increase in agricultural productivity
• More and cheaper clothing and housing by increasedindustrial
productivity
• More hygiene, security and education by increasingoverall
productivity.
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Productivity
• Over a period of time, one can say that productivityhas
increased. How? discuss
= Combination of improved technology, better planning,
greater skills etc.
• Note that, increased production does not meanincreased
productivity.
• How do you state higher productivity? discuss
*Higher productivity means that more is produced with the same
expenditure of resources; that is, at the same cost in terms of
land, material, machine, time or labor.
*Alternatively, same amount is produced at less cost in terms of
land, labor, material etc; thereby releasing some of these resources
for the production of other things.
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 Productivity and standard of living…
• If more is available at the same cost, or the same amountis
available at lesser cost the whole community benefits.

• As per the ILO, higher productivity provides ways for raising the
standard of living by:
1. Larger supplies of both consumer goods and capital goods at lower
cost and prices
2. Higher real earnings
3. Improvement in working conditions, e.g. by reduced working hours,
fatigue…
4. In general, strengthening of the economic foundations of human
well-being.
➢ For Improving the STANDARD OF LIVING, of its citizens, the concerned
nation must raise its PRODUCTIVITY for economic growth.
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 Productivity and the organization
• Many factors affecting productivity of each
organization; also, they are dependent.
• Depending on the individual environments, decisions
are to be made.
• Industries where labor and capital costs are low
compared to the material costs, better use of material
and plant gives the greatest scope of cost reduction.
• In countries where capital and skilled labor are in
shortage compared to unskilled labor, one should look to
increase the output per machine or per skilled worker.
• Increasing the number of unskilled workers may be
beneficial if by doing so an expensive machine or
skilled craftsmen are enabled to increase production.
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 Productivity and the organization…

Government’s responsibility

• Government can create conditions favorable to raise

productivity. It can:
1. Have a balanced programs of economic development
2. Take steps necessary to maintain employment
3. Make opportunities for employment.

• Last step is specifically important for a developingcountry

like Ethiopia.

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 Productivity and the organization…
Management’s responsibility
• The main responsibility for raising productivity in an
individual organization lies with the management.
• It can implement productivity programs.
• It can create a positive environment and obtain co-operation of
the employees.
• Trade unions should encourage its members to provide such
co-operation when the productivity program is beneficial to
workers, as well as the organization on the whole.

• Lets look at management’s role in increasing productivity of

individual resource:
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Productivity of material
At the design stage:
• Ensure least consumption of material,
• Purchase equipments and plants such that consumption of
material is economical.

At the operation stage:

• Use of correct process
• Right use of the process
• Operator training
• Proper handling and storage of products at all stages
• Proper packaging to reduce damage in transit

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Productivity of land, machines and
manpower
• Effective utilization and maximum productivity is an
important source of cost reduction.
• Reduction in the original specification, before the land is
purchased saves capital outlay (as well as interestexpenses)
• A savings in material which has to be imported saves import
duty and excise.

• Productivity of manpower and machines is typically measured

in terms of time (man-hours; machine-hours).

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Factors tending to reduce productivity

Work content added due to the product

• The product or its components are designed such that it is
impossible to use most economical manufacturing processes.
• Excessive variety or lack of standardization.
• Incorrect quality standards.
• Excessive amount of material removal required.

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 Factors tending to reduce productivity…

Work content added due to process

• Incorrect machine (and/or hand tool) used
• Process not operated properly
• Non-optimal layout with wasted movements.
• Working methods of operation causing wasted movements,
time and efforts.

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 Factors tending to reduce productivity…

Ineffective time due to management

• Marketing policy which demands unnecessarily largenumber
of products.
• No standardization of components between as well as within
products.
• Failing to meet customer’s requirement from the beginning.
• No plan for flow of work.
• Improper supply of material, equipment.
• Improper maintenance of plant and machines.
• Insufficient safety measures.
• Improper working conditions resulting in interruptedwork.

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 Factors tending to reduce productivity…

Ineffective time within the control of worker

• Taking time off without good cause: by lateness, by idling at
work etc.
• Careless workmanship causing scrap or rework.
• Failing to observe safety standards.

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Management techniques to
reduce work content
 Nature of management

• Management is the organization and control of human activity

directed towards specific ends.
• Management techniques are systematic procedures of
investigation, planning and control which can be appliedto
management problems.
• Systematic approach to the solution of the problems proceeds
step by step from known to the unknown, always on the basis
of ascertained facts.
• Since management deals with human beings, it can never be
completely scientific, and must partly be regarded as an art.

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 Reduce work content due to the product

• Coupling of product design and process design phases (design

products such that most economical processes can be used).
• Pilot project/ prototyping to avoid mistakes at aadvanced
stage (very common in chemical companies).
• Standardization of components.
• Setting correct quality standards
Stricter standards lead to increased manufacturing time,lenient
standards lead to greater variability.
• Knowing the customer – Management should conduct market
research and consumer surveys to know the customer better.

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 Reduce work content due to the method
• Process planning – Identification of correct machines for the
process. In chemical industry, this is specified by the R&D
division or the license seller.
• Process research – Identification of best manufacturing
technique.
• Proper maintenance.
• Method study – Combine with process planning to give most
suitable tools for the operative. Includes factory layout,
working methods of the operative.
• Operator training – Improve working methods of the
operative.

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 Reduce ineffective time due to the
management
• Strategic decisions – Which markets to enter canaffect
ineffective time to a great extent.
• Production planning – It is planning of proper programsof
work so that plant and workers are kept supplied without
having to wait.
• Proper programs should be applied only on the basis of sound
standards of performance.
• Work measurement – Setting up those standards.
• Material control – Workers and machines should not be idle
because of non-availability of material and tools.

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 Reduce ineffective time within control of
the worker
• Training.
• Make worker want to reduce ineffective time.(Create
conditions to make the worker get on with his work.)
• Effective personnel policy and management’s attitude towards
the worker.
• Good relationship between management and worker.
• A sound wage structure, including incentive schemes
(typically based on time standards derived from work
measurement).

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 Work study & Prod. [summary]

• Technique used in the examination of human work in all

contexts, and which lead systematically to the investigationof
all the factors which affect the efficiency and economy of the
situation being reviewed, in order to effect improvement.
• Two branches/techniques – method study and work
measurement.
• Widely known as “time and motion study.”
• Rapid developments after World WarII.
• Huge capital investment in process R&D may increase
productivity. However, it is expensive and time consuming.
• Work study focuses on human workers and can increase
productivity at a lower cost.
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 Basic procedure of work study

1. Select the job or process to be studied.

2. Record from the direct observations everything thathappens.
3. Examine the recorded facts critically andchallenge
everything that is done.
4. Develop most economic method taking in to considerations
all circumstances.
5. Measure/Evaluate the quantity of work involved in the
method selected and calculate a standard time for doingit.
6. Define the new method and time to standardize.
7. Institutionalize/Install the new method and time as practice.
8. Maintain the new standards by establishing control
procedures.
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