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MODULE 1 baseline to determine if improvement projects have

WORK STUDY AND MEASUREMENT resulted in genuine improvement.

Work Study is an area of knowledge that addresses Work measurement helps to uncover non-value
the problem of work simplification with the basis added areas of waste, inconsistency, and
objectives of productivity enhancement, human non-standardization that exist in the workplace.
comfort and safety. Work measurement studies uncover ways to make
work easier, and to produce products or services
Work study is defined as that body of knowledge more quickly and economically.
concerned with the analysis of the work methods
and the equipment used in performing a job, the Work measurement involves the estimation of the
design of an optimum work method and the amount of human effort needed for producing a unit
standardization of proposed work methods. of specified output from an operation. The amount
of time that is usually taken by a well trained
Work Study is a generic term for management worker, operating under normal working conditions,
services and system engineering techniques, used to to produce one unit of output is referred to as work
investigate: standard.

Methods of performing work (Method Study). HISTORICAL DEVELOPMENT


The time taken to do it (Work Measurement).
Frederick Taylor is named as father of scientific
METHODS STUDY management and industrial engineering.

Method study is a technique to reduce the work But before Frederick Taylor, Adam Smith gave
content mainly by eliminating unnecessary concept of Division of Labour through his book The
movements by workers, materials, or equipment. Wealth of Nations.

However, even after that, there could be substantial Also James Watt, Boultin Mathew and Robinson
unnecessary time taken for the process because of obtained a place in the history of Industrial
lack of management control or inaction of worker. Engineering because of their work related with
improvements in the performance of machines and
Method Study approaches and tools of Method industries.
Analyst:
Flow Diagrams & Process Charts etc. Frederick Winslow Taylor
Critical questioning techniques. ► Known as the father of time study
► Worked at Bethlehem Steel late 1880s
Method study is the systematic recording and ► Started to analyze, measure, and control work
critical examination of existing and proposed ways ► He considered himself a friend of the worker
of doing work, as a means of developing and and enemy of management, but his legacy turned
applying easier and more effective methods and out different
reducing costs. ► Created scientific management & Industrial
Engineering
Used to analyze ► Started thought process of looking for the best
▪Movement of body, people, or material way
▪Activities of people & machines
Henry Laurence Gantt (worked under F.W.
WORK MEASUREMENT Taylor) (1861- 1919)
► A consulting engineer for economical shop
Work Measurement Study is a general term used management and for time, cost, and record-keeping
to describe the systematic application of industrial ► Preoccupied with human aspect of management
engineering techniques to establish the work content in his quest for economy in industrial activities
and time it should take to complete a task or series “The control over labor given to management by the
of tasks. application of the system which I installed was so
far-reaching as compared with other management
Work measurement is a productivity improvement controls that I refused to install it unless convinced
tool. Before improvements can be made, the current that the management was such that no unfair
productivity level of an organization must be advantage would be taken of the system to oppress
measured. This measurement is then used as a labor.”
► Most remembered for his Bar chart techniques
His effort was recognized as the term ‘Efficiency
Engineering.’
Frank & Lillian Gilbreth
► They had 12 children – “Cheaper by the Dozen” HB Maynard 1948
► Frank was a brick layer, who as he performed his ► Coined the term “Methods Engineering”
job studied the motion and method. He reduced ► Established the Methods Engineering Council
brick laying steps from 17 to 7 and increased the (MEC) in Pittsburgh as a “time study training
average numbers of bricks laid from 125 to 350 by company”
elimination of wasted motion. ► Started a research project with Westinghouse in
► Principles of Motion economy 1941 to make time study and standard setting much
► Created 18 “Therbligs” that describe motions more fair to workman and worked with Gus
Stegmerten and Jack Schwab. The three member
team developed the Methods Time Measurement
(MTM) work measurement technique, published in
1948.
► Put the MTM technique into the public domain
by forming the MTM Association in 1952 —
Association which still exists today.

W.E Deming 1986


► Developed principals of statistical quality
controls
► “Out of the Crisis” focus on quality, not on costs
► Continuous improvement rather than “Quotas”
► (Quotas are not engineered standards)

PRINCIPLES OF WORK STUDY

► Must come from the top level management.


► People made aware of the objectives and the
need of the exercising such study.
► Method study must precede work measurement.

OBJECTIVES OF WORK STUDY AND


MEASUREMENT

Boeing 1930s -1940s ► To analyze the present method of doing a job,


► Used time studies to measure and balance systematically in order to develop a new and better
aircraft assembly lines, controlled cycle times. method.
► Time standards for fighters, bombers, gliders ► To measure the work content of a job by
Produced > 13,000 B-17s measuring the time required to do the job for a
qualified worker and hence to establish standard
Carl G. Barth time.
► Developed a production slide rule for ► To increase the productivity by ensuring the best
determining the most efficient combinations of possible use of human, machine and material
speeds and feeds for cutting metals of various resources and to achieve best quality
hardness, considering the depth of cut, size of tool, product/service at minimum possible cost.
and life of the tool. Investigated also the number of ► To improve operational efficiency.
foot-pounds of work a worker could do in a day. ► To reduce waste through standardization of work
elements of a job.
Harrington Emerson ► To improve labor efficiency.
► Applied scientific methods to work on the Santa ►Quantify expectations from people and processes,
Fe Railroad and wrote a book, ‘Twelve Principles of and communicate them.
Efficiency,’ in which he made an effort to inform ► Determine staffing levels as output levels rise or
management of procedures for efficient operation. fall.
► Reorganized the company, integrated its shop ►Assign and schedule work to people and
procedures, installed standard costs and a bonus equipment based on expectations.
plan. His effort resulted in excess of $1.5 million. ► Identify and manage constraints; in equipment,
process, facility.
► Balance individual workloads in lines or work Productivity is measure of how well resources are
groups for optimum performance. brought together in organizations & utilized for
► Offer pay related to output; labor incentives. accomplishing set of results. Productivity is
►Calculate actual capacity the operation can reaching higher level of performance with least
produce. expenditure of resources.
►Develop standard cost models for products and
services. Productivity is combination of effectiveness &
►Justify equipment and automation acquisition. efficiency & effectiveness related to performance,
►Meet financial understanding of costs. efficiency to resource utilization.
►Judge disagreements about workload,
assignments. Productivity generally expresses the relationship
►Analyze variance to find problems. between the quantity of goods and services
►Estimate potential benefit from changes produced (output) and the quantity of labor, capital,
beforehand. land, energy, and other resources to produce it
(input).
BENEFITS OF WORK STUDY AND
MEASUREMENT

► Increased productivity and operational efficiency


► Reduced manufacturing costs
► Improved work place layout
► Better manpower planning and capacity planning
► Fair wages to employees
► Better working conditions to employees PRODUCTIVITY VS PRODUCTION
► Improved work flow
► Reduced material handling costs
► Provides a standard of performance to measure
labour efficiency
► Better industrial relations and employee morale
► Basis for sound incentive scheme
► Provides better job satisfaction to employees

MODULE 2
PRODUCTIVITY

The productivity of a certain set of


resources (input) is therefore the amount of goods IMPORTANCE OF HIGHER PRODUCTIVITY
or services (output) which is produced by them.
Land and building materials, machines, manpower If the level of output is increased faster
(labor), technology etc. are the resources at the than that of input, productivity will increase.
disposal of a manufacturing company. Therefore Conversely, productivity will be increased if the
higher (improved) productivity means that more is level of input is decreased faster than that of
produced with the same expenditure of resource i.e. output. Also, an organization may realize a
at the same cost in terms of land, materials, productivity increase from producing more output
machine, time or labor, alternatively, it means same with the same level of input. Finally, producing
amount is produced at less cost in terms of land, more output with a reduced level of input will
materials, machine time or labor that is utilized. result in increased productivity.

Productivity is the ratio between output and input. • Productivity is a key to prosperity.
It is quantitative relationship between what we • Higher productivity leads to economic growth and
produce and what we have spent to produce. social progress.
• Higher productivity requires elimination of waste
Productivity is nothing but reduction in wastage of in all forms.
resources like men, material, machine, time, space, • Improvement in productivity is important for
capital etc. It can be expressed as human efforts to country
produce more and more with less and less inputs of • By increasing outputs to with same inputs.
resources so that there will be maximum • By decreasing inputs but maintaining same output
distribution of benefits among maximum number of
people.
• By increasing outputs & decreasing inputs to Labor productivity: The important function in any
change ratio favorably. production set-up is that the budgeted quantity of
work must be achieved over a period of time. Labor
FACTORS OF PRODUCTIVITY productivity depends upon how labors are utilized.
IMPROVEMENT Labor productivity can be higher or lower
depending on factors like availability of work load,
material, working tools, availability of power, work
efficiency, level of motivation, level of training,
level of working condition (comfortable or poor)
etc. Labor productivity can be measured in terms of
hours or money.

LABOR PRODUCTIVITY EXAMPLE


TECHNIQUES FOR MEASURING
PRODUCTIVITY Consider the following situations;
10,000 Units Produced
Sold for $10/unit
500 labor hours
► Single-factor measures Labor rate: $9/hr
▪ Output / (Single Input)
Compute the labor productivity in terms of units/hr,
► All-factors measure $/hr, unit/$ and unitless.
▪ Output / (Total Inputs)
Solution:
SINGLE-FACTOR PRODUCTIVITY 10,000 units / 500hrs = 20 units/hr
(10,000 units * $10/unit) / 500hrs = $200/hr
10,000 units / (500hrs * $9/hr) = 2.2 unit/$
(10,000 units * $10/unit) / (500hrs * $9/hr) = 22.22
The last one is unit-less
If we produce only one product, the numerator can
A company that processes fruits and vegetables is
be either the total units of the product or the total $
able to produce 400 cases of canned peaches in one
value of the product. If we produce several
half hour with four workers. What is the labor
products, the numerator is the total $ value of all
productivity?
products. The denominator can be the units of input
or the total $ value of input.
Labor productivity = Quality Produced / Labors
Hours
Labor Productivity
= 400 cases/ (4 workers x 1/2 hours / workers)
Quantity (or value) of output / labor hrs
= 200 cases per labor hour
Quantity (or value) of output / shift

Find the productivity if four workers installed 720


Machine Productivity
square yards of carpeting in eight hours.
Quantity (or value) of output / machine hrs

Productivity = yards of carpeting install / Labors


Energy Productivity
Hours
Quantity (or value of output) / kwh
worked
= 720 square yard / (4 workers x8 hours / worker)
Capital Productivity
= 720 yards / 32 Hours;
Quantity (or value) of output / value of input
= 22.5 yards/ hours
MACHINE PRODUCTIVITY EXAMPLE CHANGE IN PRODUCTIVITY EXAMPLE

Compute for the productivity of a machine which At Modern Lumber.Inc., Art Binley, president and
produced 68 usable pieces in two hours. producer of apple crates sold to growers, has been
able, with his current equipment to produce 240
Productivity = Usable Pieces / Production Time crates per 100 logs. He currently purchases 100 logs
= 68 usable pieces / 2 hrs; per day and each log requires 3 labor hours to
= 34 pieces/ hours process .He believes that he can hire a professional
buyer who can buy a better quality log at the same
TOTAL/MULTI-FACTOR PRODUCTIVITY cost. If this is the case, he can increase his
production to 260 crates per 100 logs. His labor
Productivity may be measured either on an hours will increase by 8 hours per day. What will be
aggregate basis or individual basis. On aggregate the impact on productivity ( measurement in crates
basis, output is compared with all inputs taken per labor hour) if the buyer is hired?
(added) together. This is called as total productivity.
On individual basis, output is compared with any Current Labor Productivity (when no buyer) =
one of the input factor and this is called as partial Output / Input
productivity or factor productivity.
Output = 240 crates
This index measures the productivity of the entire Input = Material required * labor hours
organization with use of all resources. It is a way of One log requires 3 labor hour. Therefore 100 logs
evaluating efficiency of entire plant or firm. It has require 300 labor
been said that the challenge of productivity has hour.
become a challenge of measurement. Productivity is
difficult to measure and can only be measured Current Labor Productivity = 240 crates / ( 100 logs
indirectly, that is, by measuring other variables and * 3 hours/ log )
then calculating productivity from them. This = 240 / 300
difficulty in measurement stems from the fact that = .8 crates per labor hour
inputs and outputs are not only difficult to define
but are also difficult to quantify. New Labor Productivity with buyer= Output /
Input
New Output = 260 crates
Increase in labor hours = 8

Labor Productivity = 260 crates / { ( 100 logs * 3


TOTAL/MULTI-FACTOR PRODUCTIVITY hours/ log ) + 8 hours }
EXAMPLE = 260 / 308
= .844 crates per labor hour
Example 1
10,000 Units Produced Change in Productivity Formula
Sold for $10/unit
500 labor hours
Labor rate: $9/hr
Cost of raw material: $30,000
Overhead: $15,500

Example 2
A wrapping paper company produced 2,000 rolls of As a result, there is an increase in productivity from
paper one day. Standard price is $1/roll. Labor cost .8 to .844 crates per labor hour with 5.5%.
was $ 160, material cost was $ 50, and overhead The higher change in productivity the better.
was $ 320. Determine the multi-factor productivity.

Multifactor productivity =Quality produced at MODULE 3


standard price/(Labor METHOD STUDY
cost +Material cost + Overhead)
Work content means the amount of work contained
= 2,000 rolls x $ 1/ ($160+ $ 50 + $320) in a given product made by a process measured in
= 3.77 rolls output per dollars work-hours or machine hours. A work- hour is the
labor of one person for one hour. A machine-hour is
the running of a machine or piece of plant for one B6. Frequent breakdowns of machines and
hour. It represents total operator cycle time or, if equipment
multiple operators are involved, the sum of operator
cycle times to perform a specific process(es) or sub C. Human Resource Issues
process(es). The scope of human work, including C1. Absenteeism and lateness
both value-added and non value- added activities, C2. Poor workmanship
may encompass a complete value stream or only a C3. Accidents and occupational hazards
portion of it.

Basic work content is the time (work-hours and


machine hours) taken to manufacture the product if
the design and specification were perfect, if the
process and equipment used were perfect and if
there were no loss of working time from any cause
whatsoever during the process period (excluding
planned rest pauses). It is the irreducible minimum
time theoretically required to produce one unit of
output.
AREAS OF APPLICATIONS
❑ Method Study is the first of the two main
divisions of work study and is concerned with the ❑ Improved layout of office, working areas of
way in which work is done. factories
❑ Improved design of plant and equipment
❑ Method study is essentially used for finding ❑ Improved use of materials, plant, equipment and
better ways of doing work. It is a technique for cost manpower
reduction. ❑ Most effective handling of materials
❑ Improved flow of work
❑ The philosophy of method study is that 'there is ❑ Standardization of methods and procedures
always a better way of doing a job' and the tools of ❑ Improved safety standards
method study are designed to systematically arrive ❑ Better working conditions
at this better way of doing a job. Method Study is a
technique for improving the efficiency of every type STEPS IN METHOD STUDY
of work.
1. Select – Select the work to be studied. It involves
taking account of economic, technical and human
considerations.
2. Record – Record all the relevant facts of the
present (or proposed) method by direct observation.
3. Examine – Examine the facts critically in
sequence, using special critical examination sheets.
4. Develop – Develop the best method, i.e., the
most practical, economic and effective method,
EXCESS WORK CONTENT under prevailing circumstances. (an improved way
of doing things)
A. Poor Design and Specification 5. Install – Install that method as standard practice.
A1. Poor design and frequent design changes 6. Maintain – Maintain that standard practice by
A2. Waste of materials regular routine checks.
A3. Incorrect quality standards (unnecessary tight
tolerances)

B. Inefficient Process, Method of Manufacture or


Operation
B1. Poor layout and utilization of space
B2. Inappropriate material handling
B3. Frequent stoppages as production changes from
one product to another
B4. Inefficient operation
B5. Poor planning of inventory
METHODS ENGINEERING Exploratory Tools:
1. Pareto Analysis
A technique used by industrial engineers to 2. Fishbone Diagram
improve productivity and quality and to reduce 3. Gantt Chart
costs in both direct and indirect operations of 4. PERT-CPM
manufacturing and service organizations. Methods 5. Job/Worksite Analysis Guide
engineering is applicable in any enterprise requiring
human effort. It can be defined as the systematic PARETO ANALYSIS
procedure for subjecting all direct and indirect
operations to close scrutiny in order to introduce The Pareto Principle, named after esteemed
improvements that will make work easier to economist Vilfredo Pareto, specifies that 80% of
perform while maintaining or improving quality, consequences come from 20% of the causes,
and will allow work to be done more smoothly, in asserting an unequal relationship between inputs
less time, with less energy, effort, and fatigue, and outputs. The Pareto Principle is also known as
and with less investment per unit. The ultimate the Pareto Rule or the 80/20 Rule.
objective of methods engineering is increasing
profits, but it is also important in improving worker
health and safety.

METHODS ANALYSIS
❑ Methods analysis is the study of how a job is
done. (Considering the previous steps presented.)
METHODS DESIGN
❑ Design of a new method or process
❑ Required for new product or service and there is
no existing standard
❑ Method must be designed from scratch, using
best existing practice for similar operations
❑ Redesign of an existing method or process based WHEN TO USE A PARETO CHART
on a previous methods analysis.
▪ When analyzing data about the frequency of
OBJECTIVES OF METHODS ENGINEERING problems or causes in a process.
▪ When there are many problems or causes and you
► Eliminate unnecessary and non-value-adding want to focus on the most significant.
work elements ▪ When analyzing broad causes by looking at their
► Combine elements and operations specific components.
► Rearrange elements into more logical sequence ▪ When communicating with others about your data.
► Simplify remaining elements and operations
80/20 RULE HELPS US REALIZE
STEP BY STEP IN METHODS ENGINEERING
❑ Majority of results come from a Minority of
1. Select project inputs
2. Get and present data ❑ 20% of input creates 80% of the result
3. Analyze the data
4. Develop ideal method(s) HOW PARETO CHART CONSTRUCTED
5. Present and install method
6. Develop a job analysis Step 1 - Record the raw data.
7. Establish time standards Step 2 - Order the data.
8. Follow up the method. Step 3 - Label the left-hand vertical axis.
Step 4 - Label the horizontal axis.
PROBLEM SOLVING TECHNIQUES Step 5 - Plot a bar for each category.
Step 6 - Find the cumulative counts.
Observational Tools: Step 7 - Add a cumulative line.
1. Site walk-thru Step 8 - Add title, legend, and date.
2. Observation and interviews of workers and Step 9 - Analyze the diagram.
managers
3. Ethnographic studies PARETO ANALYSIS EXAMPLE
You are part of a team responsible for the quality effect. The Fishbone Diagram is used to help
of the BEQ/BOQ. workers focus on the causes of a problem rather
You want to improve the service you provide but than the symptoms. The results of a Fishbone
are not sure where to begin or where to concentrate Diagram may lead to other activities such as
your efforts. Brainstorming, FMEA's, Multi-vari charts,
You decide to keep track of the complaints received ANOVA, regression analysis or DOE activities.
over a three-month period.
Rank order your data in an analysis sheet and
draw a Pareto Chart.

GANTT CHART

A Gantt chart, commonly used in project


management, is one of the most popular and useful
ways of showing activities (tasks or events)
displayed against time. On the left of the chart is a
list of the activities and along the top is a suitable
time scale. Each activity is represented by a bar; the
position and length of the bar reflects the start date,
FISHBONE DIAGRAM
duration and end date of the activity.
► Cause-effect diagrams are also known as
It is used for planning of complex projects. It shows
“fishbone” diagrams. They are used to identify
expected start and completion times, also duration
possible causes of a problem. They also sort and
of events. This allows you to see at a glance:
relate the causes. Fishbone diagrams identify what
you do know and what you don’t know about the
➢ What the various activities are
process. One begins by stating the problem and
➢ When each activity begins and ends
recording it on a piece of paper or board so all can
➢ How long each activity is scheduled to last
see it.
➢ Where activities overlap with other activities,
► A Fishbone Diagram or otherwise known as
and by how much
"Ishikawa" Diagram will help to visually display
➢ The start and end date of the whole project
the many potential causes for a specific problem or
GANTT CHART EXAMPLE

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