Professional Documents
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WORK STUDY
Productivity, Method Study – Steps, Charts and Diagrams, Principles of
Motion Economy; Work measurement – Time Study – Rating, Allowances
and Standard time calculations; Work sampling, Human Factors and
Ergonomics.
Introduction to Work Study
Frederick Winslow Taylor (1856-1915) and Frank B. Gilberth (1869-1924)
are originators of work study (Time & Motion study).
Time and motion study were developed separately.
Taylor invented time study whereas Gilberth invented motion study.
Work study is a technique which deals with the problems:
As to how should a job be done/completed, and how much time a job
should take for completion.
Objective of work study is to determine the best method of performing
each operation and to eliminate wastage so that production increases
with less human fatigue.
The work study is also used in determining the standard time that a
qualified worker should take to perform the operation when working at
a normal pace.
PRODUCTIVITY
What Is Productivity?
• Productivity is a measure of economic or business performance
that indicates how efficiently people, companies, industries and whole
economies convert inputs, such as labor and capital, into outputs, such
as goods or services. Productivity can be measured at any of these five
levels:
Personal productivity
Workforce productivity
Sector productivity
Team or department productivity
National or global productivity
• Personal productivity: The term “personal productivity” is often used to
describe how much individuals can accomplish every day in their
personal lives, not just in the workplace.
• Workforce productivity: Workforce productivity is the aggregate
productivity of all individuals in a company’s workforce.
• Sector productivity: The aggregate productivity of all companies in an
industry or sector is an expression of the sector’s productivity.
• Team or department productivity: The collective output of one or more
individuals united under a common goal.
• National or global productivity: The aggregate productivity of all
industries in an economy is an expression of the economy’s productivity.
• Productivity is calculated by dividing output by inputs. The basic formula
is:
Productivity = Output / Input
• Output is typically measured as the rupee value or the units of products
and services that a company produces.
• Inputs are any resource used to create products and services. The two
most common types of input are capital — which includes investments
in assets used for production, such as manufacturing equipment and
computers — and labor.
• Other inputs may include energy, technology, materials and purchased
services.
How Does Productivity Work?
• Productivity goes up when output increases at a faster rate than inputs
or when a company can generate the same output with lower inputs.
Here’s an example that shows how this works, exploring the effect of
different inputs.
• Suppose you own an apple orchard, and you’re looking at ways to
increase the productivity of your annual apple-picking operation.
Currently, your company’s 50 workers can pick a total of 10,000 large
apples per hour by hand, on average. Your hourly labor productivity is
therefore 10,000 apples/50 people = 200 apples per hour per picker. Not
bad, but you see four options to do better, beyond just pushing people to
work harder:
• 1. Technological improvements: You can add inputs in the form of
technological improvements that expand output by more than their cost.
If you provide each apple-picker with Acme’s Super Duper Apple-Picking
Machine, labor productivity jumps twofold: They can each pick 400
apples per hour.
• 2. Technical efficiency: Companies can improve technical efficiency by
using their existing technology or skills more efficiently. Perhaps your
workers can do better than 200 apples per hour if they become more
skilled at picking apples by hand.
• 3. Organizational improvements: You may be able to improve hourly
output by reorganizing apple-picking teams so they more efficiently cover
the entire orchard.
• 4. Increasing scale: You may be able to increase productivity by
expanding your operation. Doubling your apple output may require you
to double the size of your orchard, the number of pickers you employ and
the number of machines they use. But it won’t require you to build a
second headquarters building, hire twice as many administrative workers
or double your marketing and advertising budget. Your output will
double, but your inputs will not.
How to Measure Productivity in the Workplace
• Speaking of KPIs, a company must be able to measure productivity if it
hopes to gauge the effectiveness of its efforts to improve
productivity. There is an enormous range of productivity metrics in
common use, depending on the industry and the type of business
function you’re measuring. Here are some of the most common:
• Revenue per employee. This is a core productivity measure for many
companies. It is typically calculated as the most recent 12 months of
revenue divided by the current count of full-time equivalent employees.
Revenue per employee may be a particularly relevant KPI for consulting
services firms.
• Number of parts produced. This fundamental measure of manufacturing
productivity is usually measured in parts per worker per hour.
• Customer satisfaction score (CSAT). This is the average customer rating,
generally gathered from surveys and measured on a scale that may range
from 1-5 or 1-10. Low scores may be a warning that customers will defect.
CSAT is a core element of a customer experience (CX) focused strategy.
• Downtime. This is the percentage of time that an important business
system is unavailable. Unplanned downtime will compromise
productivity.
• Employee turnover rate. This is the percentage of employees who leave
an organization during a certain period of time. High turnover is often
associated with low productivity due to the time required to find and
train replacements. Fortunately, companies can take steps to minimize
employee turnover.
• Labor utilization rate. This ratio assesses the proportion of workers’ time
that is spent on productive tasks. It’s calculated as the time spent on
productive or billable hours divided by the total number of employees’
available hours and, like revenue, is important for services firms to track.
• Gross profit margin. This profitability metric reflects the efficiency of a
company’s core business operations. It’s calculated as net sales revenue
minus cost of goods sold or services delivered. A business whose gross
profit margin is consistently below others in its industry risks being
overtaken by more productive competitors. Thus, it’s important for all
companies to track their gross profit margins.
WORK MEASUREMENT
Time Study
• Time study is a work measurement technique and is used to determine
the time required by a qualified and well trained person working at
normal pace to do a specific task at a defined level of performance.
• The time thus, calculated is known as “Standard Time”. Motion study
procedures are carried out before carrying out work measurements or
Time study.
• Time study was developed and carried by F.W. Taylor. He split up the job
into the minutest details and further into various sub-activities also called
“Elements”.
• After various studies, he calculated a standard time to do a particular job.
Thus, a wage system can be worked out by keeping the standard time as
a benchmark.
• Wages are determined by the production rate per hour per worker and
are used to distinguish between a bad worker and a good worker by
giving the good worker a bonus for his enhanced activity.
Procedure of Conducting Time Study
• The basic procedure for carrying out time study stepwise is:
i. Study the job in terms of the workplace, tools, operator, etc.
ii. Collect or study all the information about the method (i.e. description
of operations). Break each operation into small elements. An element is
a distinct part of an operation selected for the convenience of the
observation, measurement and analysis.
iii. Examine each element for most effective method and motions are
being used.
iv. Observe and record time for the operator to perform each element of
operation.
v. Determine number of cycles of observations to be timed and calculate
the time by taking the average of all readings.
vi. Rate operator performance.
vii. Extend the observed time to basic times (or normal time).
viii. Determine the allowances (to be provided over and above the basic
time).
ix. Determine the standard time for the operation.
RATING
• Performance Rating
• When number of qualified operators is performing the same activity,
their output will not be same. Some operators will definitely be
producing more than what others are producing, while it is assumed that
all the operators are following the same method and working under the
same working conditions. As such it is really a problem whose work
should be considered as fair day’s work.
• If the slowest worker is considered as standard then the efficient worker
will be considered very fast and ultimately there will be lot of difference
between their earnings and thereby it will cause dissatisfaction amongst
the workers.
• As such there should be standard of performance for all the processes
and should satisfy the group of workers.
Basic/Normal Time
• When the required number of observations is obtained, the next step is
to convert the observed time into basic time. Basic time is defined as “the
time for carrying out an element of work at standard rating”.
• Considering the rating factor and the observer’s time for that element,
basic time for that element is found by the following formula:
Normal Time= Observed Time X Observed Rating/ Standard Rating
ie;
Normal Time = Observed Time X Observed Rating / 100
• The next step is the addition of various job allowances in order to
determine the work content and the standard time.
ALLOWANCES
• Allowances are the additional time allowed to perform the work and are
above the normal time/basic time.
• It is an amount of time added to the normal time to provide for personal
delays, unavoidable delays, fatigue delays etc. Allowances when added
to the normal time/basic time it results in standard time.
• Need of Allowances
• It is not expected that an operator will work all day without some
interruption. The workers may take time out for personal needs, for rest
and for reasons beyond his control.
• To add enough time to the normal production time to enable the average
worker to meet the standard when performing at a normal pace.
Various Allowances
• 1. Fatigue Allowance: due to working condition, nature of work
(monotony, body movement, stress), general health of worker, physical
and mental fatigue. It may vary 12-20% or more.
• 2. Personal Allowance: for trips to the dressing room, drinking water etc.
and is taken as 2-5% in 8hours shift per day.
• 3. Delay Allowance: for tool breakage, interruption by foremen etc. Delay
allowances may be avoidable or unavoidable. For example: idleness due
to character or nature of a process or operation.
• 4. Policy Allowance: They are not the genuine part of the time study and
should be used with utmost care and only in special circumstances like
wage agreement between employers and trade unions etc.
• 5. Special Allowance:
• a. Contingency Allowance: unavoidable delays like: filling coolant in
reservoir, tool sharpening, tool breakage, power failure, waiting for in
process inventory from previous machines etc.
• b. Periodic Activity Allowance: Examples setting up of a planer,
regrinding a lathe tool etc.
• c. Interference Allowance: when worker is looking after two or more
machines simultaneously.
STANDARD TIME
• It is the time which is taken by a normal worker for doing a specific task
or job working under moderate conditions and under normal pace and
including other allowances such as fatigue, setting of tool and job,
repairing of tool and checking of job etc. Thus,
• Standard Time (ST)= Observed time ×Rating factor +Allowances
• ST= Basic Time or Normal Time +Allowances
WORK SAMPLING
• Work sampling is a statistically based technique utilized for analysing
work performance and machine utilization by direct observation, but
without a stop watch. So work sampling is another useful technique of
work study.
• This technique is particularly useful to estimate the proportion of delays
or idleness’s occurring in a enterprise/plant and attributing the cause for
it, such as power failures/input delays, machine cleaning, machine
breakdowns and manpower idling.
• Work sampling is a technique for establishing standard times of activities.
This method also known as activity sampling was devised by L.H.C. Tippet
in 1934. This technique is more suitable for analysing group activities and
repetitive activities which take longer duration.
• The method of work sampling consists of taking a large number of
instantaneous observations randomly, rather than taking observations
continuously as is done in various production investigations/ studies. This
method is a sampling technique and depends upon laws of probability
• Definition of Work Sampling:
• “Work sampling is a method in which a large number of instantaneous
observations are made at random time intervals over a period of time on
a group of machines, workers or processes/operations.
• Each observation records what is happening at that instant and the
percentage of observations recorded for a particular activity or
delay/idleness is a measure of the percentage of time during which that
activity or delay/idleness occurs”.
• Work Sampling Procedure:
• The procedure to be adopted for conducting a work sampling
investigation will depend upon the type of application. As much as
possible different methods will be applied for taking observations. An
analysis of the data shall be conducted to suit the case.
END