Productivity in the Individual Enterprise productivity, which in simple terms was described as the “arithmetical ratio be- tween the amount produced and the amount of any resources used in the course of production”, To do this we have to start thinking in terms of time, since it is the output of good production from a machine or from a worker in a given time which is used in calculating productivity. Productivity is frequently measured as the out- put of goods or services in a given number of “man-hours” or “machine-hours”. 5, HOW THE TOTAL TIME OF A JOB IS MADE UP A man-hour is the labour of one man for one hour. © A machine-hour is the running of a machine or piece of plant for one hour. ‘The time taken by aman or a machine to carry out an operation or to produce a given quantity of product may be considered as made up in the following manner, which is illustrated in figure 2. There is first-— the basic work content of the product or operation” Work content means, of course, the amount of work “contained in” a given product or process measured in man-hours or machine-hours.® The basic work content is the time the product would take to manufacture or the operation to perform if the design or specification were perfect, the process or method of manu- facture or operation perfectly carried out, and there was no lois of working time from any cause whatsoever during the period of the operation (other than legitimate rest pauses permitted to the operative). The basic work content is the irreducible minimum time theoretically required to produce one unit of output. This is obviously a perfect condition which never occurs in practice, although it may sometimes be approached, especially in processing industries. In general, however, actual operation times are far in excess of it on account of — excess work content ‘The work content is increased by the following: A. Work Content Added by Defects in the Design or Specification of the Product. This occurs primarily in manufacturing industries, but the equivalent in service industries such as transport might be the specification of a bus service which 1 The words “or operation” are added throughout because this picture applies equally to non-manu- {facturing industries such as transport operation or retail selling, ‘This definition differs slightly from that given in the B.S. Glossary. See note at the bottom of figure 2. 16FIGURE 2. Total Work Content of Operation under Existing Conditions Total Ineffeotive Time NOTE: ‘in che arsh Stsndord Glosory of Terms in Work Study the tems “work content” are accorded preice teh for use in apping werk measure HOW MANUFACTURING TIME IS MADE UP D cs > i = teahnigues, and et sey relevant tothe present ds Basic Work Content of product and/or operation Work Content Added by defects in dosign or specification of product Work Content Added by inefficient methods of manufacture or operation Ineffective Timo due to shortcomings of the management Ineffective Timo within the control of the worker 1 “intfactive tne” ‘meanings whioh difr sight ftom those used hare, The Glosaay definition ee intended susson, Inthe chapter ‘and the next. "work content” end ineffective tino” are used with that ardnary common meanings. a2 defined in he fot 17Productivity in the Individosl Baterprise demands operation in a way that causes unnecessary additional transit time. This additional work content is the time taken over and above the time of the basic work content due to features inherent in the product which could be eliminated (see figure 3, page 19). B. Work Content Added by Inefficient Methods of Production or Operation. This is the time taken, over and above the basic work content plus A, due to inefficiencies inherent in the process or method of manufacture or operation (see figure 3). ee The basic work content assumes uninterrupted working. In practice, however, uninterrupted working is exceptional, even in very well-run organisations. All interruptions which cause the worker or machine or both to cease producing or carrying out the operations on which they are supposed to be engaged, whatever may be the cause, must be regarded as ineffective time? because no work effective towards completing the operation in hand is being done during the period of the interruption. Ineffective time reduces productivity by adding to the duration of the operation. Apart from interruptions from sources outside the control of any- one in the organisation, such as a power breakdown or a sudden rainstorm, in- effective time may be due to two sources— C. Ineffective Time Due to Shortcomings on the Part of the Management. ‘Time during which man or machine or both are idle because the management has failed to plan, direct, co-ordinate or control efficiently (see figure 4, page 22). D. Ineffective Time within the Control of the Worker. Time during which man or machine or both are idle for reasons within the control of the worker himself (see figure 4). The relative sizes of the different sections of figure 2 have no special signifi- cance and will vary from operation to operation and from undertaking to under- taking even for the same operation. The application of work study has often made it possible to reduce operation times to one-half or even a third of their original values without by any means exhausting the possibilities of further reduction. ‘Let us now examine each of these sets of causes of excess time (excess work content or ineffective time) in turn and look at some of the reasons for them in detail. 4 See note at bottom of figure 2. 18" FIGURE3. THE WORK CONTENT.DUE TO THE PRODUCT AND PROCESSES BASIC . WORK CONTENT. Total Work Contont of the Product Work Content Total igh-predection process peaed by defects in design Work Tncorrect ‘or specification of uaiy Standards ‘the product Content cenuse unnecessen wor demands removal of Bsa, Procone Not Operated Correctly rin bed conaltone Work Content ‘Added by inefficient methods of manufacture ‘or operation Working Methods Inoffective (800 figure 4) 19‘Productivity in the Individual Buterprise 6. FACTORS TENDING TO REDUCE PRODUCTIVITY A. Work Content Added Due to the Product (Figure 3). How can features of the product affect the work content of a given operation? There are several ways in which this can happen: (1). The product and its components may be so designed that it is impossible to use the most economical processes or methods of manufacture. This applies especially to the metalworking industries and most particularly where large-scale production is nndertaken. Components may not be designed to take advantage of high-production machinery (example: a sheet-metal part may be so designed that it has to be cut out and riveted or welded instead of being pressed in one piece). (2) Excessive variety of products or lack of standardisation *! of components may mean that batches of work have to be small and cannot be put on special-purpose high-production machines but have to be done on slower general-purpose machines (see also C 2). (3) Incorrect quality standards, whether too high or too low, may increase work content. In engineering practice close tolerances, requiring extra machining, are often put on dimensions where they are quite unnecessary. ‘There will thus be more rejects and a corresponding waste of material. On the other hand, material of too low a quality may make it difficult to work to the finish required or may make additional preparation of the product, such as cleaning, necessary to make it usable. The quality of material becomes especially important in connection with automation. (4) The components of a product may be so designed that an excessive amount of material hasto beremoved to bring them to their final shape. This increases the work content of the job and wastes material as well (example: shafts with very large and very small diameters designed in one piece). The first step towards raising productivity and lowering the cost of the product is therefore to eliminate as far as possible all features in its design and specification that are likely to cause excess work content, including non-standard products demanded by customers where a standard product would serve as well. B. Work Content Added Due to the Process or Method? (Figure 3). How can inefficient operation of the process or inefficient methods of produc- tion or operation affect the work content of the job? See Appendix 5, page 413, for definitions of management terms marked with an asterisk in this and subsequent chapters. * Tn management termsa process isa procedure inthe transformation ofthe raw material into the finished product usually involving physical or chemical change; a method is the manner of carrying out the process or any other operation within the working area. 20Productivity iu the Individual Enterprise (1) Ifthe wrong type or size of machine is used, one which has a lower output than the correct one (examples: small capstan work put on a turret or centre lathe; narrow cloth put on too wide a loom). (2) If the process is not operating properly, that is at the correct feed, speed, rate of flow, temperature, density of solution or whatever conditions govern its operation, or if the plant or machine is in bad condition. (3) Ifthe wrong hand tools are used. (4) If the layout of the factory, shop or workplace causes wasted movement, time or effort. (5) If the working methods of the operative cause wasted movement, time or effort. It should be noted that the idea of work content in terms of time is based on the assumption of operation at a steady average working pace. The additional time taken owing to a slowing up of the working pace might be considered as in- effective time, but this is unimportant for the present discussion. Optimum productivity from the process will only be reached if it is operated with the least waste of movement, time and effort and under the most efficient conditions. All features which would cause the worker to make unnecessary move- ments, whether around the shop or at the workplace, should be eliminated. It will be seen that all the items in the excess work content may be attributed to deficiencies on the part of the management. This is true even of bad working methods on the part of the operatives if these are due to failure of the management to see that operatives are properly trained and supervised. C. Ineffective Time Due to the Management (Figure 4). Let us now consider the ineffective time in the manufacturing or operating cycle. How can shortcomings on the part of the management affect it? (1) By amarketing policy* which demands an unnecessarily large number of types of product. This causes short runs of each type, and machines are idle while they are being changed over to manufacture different products, The workers do not have the opportunity to acquire skill and speed in any one operation. (2) By failing to standardise component parts as far as possible between products or within product. This has the same effect—that is, short runs and idle time.t 1 Like “work content and ineffective tim Glossary. The Glossary meaning is not relevant here. the term “idle time” is given a special meaning in the B.S. 2FIGURE 4. INEFFECTIVE TIME DUE TO SHORTCOMINGS ON THE PART Ll ‘OF MANAGEMENT AND WORKERS Excessive Product Variety a3 ila tne dua to short rene C2" Lackof Stondordisation adds ila time dus to short runt €.3, Design changes se inatfetve time «duet stoppages and rowork ea, Planning cof work and eda dds Idle of men en machines 6.5. Lack of Raw Materials ‘us to bed ploning adds lal ne of man end machines © nt B lite of men and machines (6-7. Plant in Bad Con as inatactive ti (©. 8. Bad Working Conditions dd netfctva tie noun orcing workers to rest, Ineffective Time due to shortcomings of the management Time of Operation Total within Time net of Control Operation of the Under Management Existing Conditions wore: 22 ‘sl intfctive tine «4 wo sore end row Br8.Aecidones 9 inefocive tie through stoppages and absance the worker Ww “ta Tne” ie uted hore Inthe ordinary sone of the term, not that defined inthe B.S. Gti.Productivity in the Individual Enterprise (3) By failing to ensure that designs are properly developed or that customers’ requirements are met from the beginning. This results in changes of design causing stoppages of work and loss of machine- and man-hours as well as waste of material. (4) By failing to plan the flow of work and of orders, with the result that one order does not follow immediately on another and plant and labour are not continuously employed. (5) By failing to ensure a supply of raw materials, tools and other equipment necessary to do the work, so that plant and labour are kept waiting. (6) By failing to maintain plant and machines properly. This leads to stop- pages due to machine breakdowns. () By allowing plant and machinery to be operated in bad condition so that work is scrapped or returned for rectification and has to be done again. Time spent in rework is ineffective. (8) By failing to provide working conditions in which the operative can work steadily. (9) By failing to take proper precautions for the safety of workers. This causes lost time due to accidents. D. Ineffective Time within the Control of the Worker (Figure 4). Finally, how can action (or inaction) on the part of the workers themselves cause ineffective time? ()) By workers taking time off work without good cause: by lateness, by failing to start work immediately after clocking in, by idling at work or by deliberately working slowly. (2) By careless workmanship causing scrap or making it necessary for work to be done again. Work which has to be done again means wasted time, and scrap means wasted materials. (3) By failing to observe saféty regulations and by having or causing accidents through carelessness. In general far more ineffective time is due to management shortcomings than to causes within the control of workers. In many industries the individual worker has very little control over the conditions under which he is required to operate. This is especially true of industries using a lot of plant and machinery and making a complex product (see next chapter). If all the factors enumerated under the four heads above can be eliminated (the ideal case which, of coutse, never occurs in real life), the minimum time for the production of a given output and hence the maximum productivity is achieved. 23