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Operations Management

Supplement 10 – Work Measurement
PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e
© 2008 Prentice Hall, Inc. S10 – 1

Outline
 Labor Standards and Work Measurement
 Historical Experience

 Time Studies
 Predetermined Time Standards  Work Sampling
© 2008 Prentice Hall, Inc. S10 – 2

Learning Objectives
When you complete this supplement you should be able to:
 Identify four ways of establishing labor standards  Compute the normal and standard times in a time study

 Find the proper sample size for a time study

© 2008 Prentice Hall, Inc.

S10 – 3

Learning Objectives When you complete this supplement you should be able to:  Explain how predetermined time standards and TMUs are used in work measurement  Apply the five steps of work sampling © 2008 Prentice Hall. S10 – 4 . Inc.

Labor Standards and Work Measurement  Started early in the 20th century  Important to both manufacturing and service organizations  Necessary for determining staffing requirements  Important to labor incentive systems © 2008 Prentice Hall. S10 – 5 . Inc.

4. 5. Inc. 6. © 2008 Prentice Hall. 7. Labor content of items produced Staffing needs Cost and time estimates Crew size and work balance Expected production Basis of wage incentive plans Efficiency of employees S10 – 6 .Meaningful Standards Help Determine 1. 3. 2.

Inc. Predetermined time standards 4. S10 – 7 . Time studies 3.Labor Standards May be set in four ways: 1. Historical experience 2. Work sampling © 2008 Prentice Hall.

Inc.Historical Experience  How the task was performed last time  Easy and inexpensive  Data available from production records or time cards  Data is not objective and may be inaccurate  Not recommended © 2008 Prentice Hall. S10 – 8 .

Inc. S10 – 9 .Time Studies  Involves timing a sample of a worker’s performance and using it to set a standard  Requires trained and experienced observers  Cannot be set before the work is performed © 2008 Prentice Hall.

Divide the task into precise elements 3. S10 – 10 .Time Studies 1. Inc. Define the task to be studied 2. Time and record element times and rating of performance © 2008 Prentice Hall. Decide how many times to measure the task 4.

Average observed time Performance x rating factor S10 – 11 . Inc. Determine performance rating and normal time Normal time = © 2008 Prentice Hall.Time Studies 5. Compute average observed time Average observed time Sum of the times recorded to perform each element = Number of observations 6.

Time Studies 7.Allowance factor © 2008 Prentice Hall. Compute the standard time Total normal time Standard time = 1 . Inc. Add the normal times for each element to develop the total normal time for the task 8. S10 – 12 .

water fountain. Inc. etc.  Delay allowance  Based upon actual delays that occur  Fatigue allowance  Based on our knowledge of human energy expenditure © 2008 Prentice Hall.7% of total time for use of restroom.Rest Allowances  Personal time allowance  4% . S10 – 13 .

. Inc.1 © 2008 Prentice Hall. (B) Basic fatigue allowance ………… 2.Rest Allowances 1. S10 – 14 5 4 2 2 7 . Variable allowances: (A) Standing allowance ……………… (B) Abnormal position (i) Awkward (bending) ………… (ii) Very awkward (lying. stretching) …………………… Figure S10.. Constant allowance (A) Personal allowance …………….

9 60……………………………………. 17 (D) Bad light: (i) Well below recommended…. S10 – 15 . pushing Weight lifted (pounds) 20 …………………………………… 3 40……………………………………. 2 (ii) Quite inadequate……………. pulling.1 © 2008 Prentice Hall. 5 Figure S10.Rest Allowances (C) Use of force or muscular energy in lifting. Inc.

2 (ii) Very fine or very exacting…… 5 (G) Noise level: (i) Intermittent—loud……………..1 © 2008 Prentice Hall. S10 – 16 ... Inc.. 5 Figure S10. 2 (ii) Intermittent—very loud or high-pitched……………….Rest Allowances (E) Atmospheric conditions (heat and humidity) …………… 0-10 (F) Close attention: (i) Fine or exacting……………….

.Rest Allowances (H) Mental strain: (i) Complex or wide span of attention.. Inc. (ii) Very complex…………………. S10 – 17 4 8 2 5 .…………………….…………………… Figure S10.……………… (ii) Very tedious. (I) Tediousness: (i) Tedious………….1 © 2008 Prentice Hall..

4 Normal time 3.0 minutes Worker rating = 85% Allowance factor = 13% Normal time = (Average observed time) x (Rating factor) = (4.4 minutes 3.Time Study Example S1 Average observed time = 4. S10 – 18 .Allowance factor .9 minutes © 2008 Prentice Hall. Inc.4 Standard time = = = 1 .0)(.87 = 3.13 1 .85) = 3.

stamp.Time Study Example S2 Allowance factor = 15% Cycle Observed (in minutes) Job Element (A) Compose and type letter (B) Type envelope address 1 8 2 2 10 3 3 9 2 4 21* 1 5 11 3 Performance Rating 120% 105% (C) Stuff. seal. Inc. Compute average times for each element Average time for A = (8 + 10 + 9 + 11)/4 = 9.2 minutes Average time for C = (2 + 1 + 2 + 1)/4 = 1. S10 – 19 .5 minutes © 2008 Prentice Hall. Delete unusual or nonrecurring observations (marked with *) 2. and sort envelopes 2 1 5* 2 1 110% 1.5 minutes Average time for B = (2 + 3 + 2 + 1 + 3)/5 = 2.

Add the normal times to find the total normal time Total normal time = 11.40 + 2.65 = 15.2)(1.4 minutes Normal time for B = (2.31 + 1.05) = 2.2) = 11. Compute the normal time for each element Normal time = (Average observed time) x (Rating) Normal time for A = (9. S10 – 20 . Inc.5)(1.5)(1.31 minutes Normal time for C = (1.Time Study Example S2 3.65 minutes 4.36 minutes © 2008 Prentice Hall.10) = 1.

. Inc.07 minutes 1 .Allowance factor 15. S10 – 21 .36 = = 18.15 © 2008 Prentice Hall.Time Study Example S2 5. Compute the standard time for the job Total normal time Standard time = 1 .

Inc.Determine Sample Size  How accurate we want to be  The desired level of confidence  How much variation exists within the job elements © 2008 Prentice Hall. S10 – 22 .

Inc.Determine Sample Size zs Required sample size = n = hx where 2 h = accuracy level desired in percent of the job element expressed as a decimal z = number of standard deviations required for the desired level of confidence s = standard deviation of the initial sample x = mean of the initial sample n = required sample size S10 – 23 © 2008 Prentice Hall. .

73 3. job element expressed as a decimal 95.00 = mean of the initial sample Table S10.Determine Sample Size zs Common z Values Required sample size = n = hx where 2 Desired z Value Confidence (standard deviation required for (%) desired level of confidence) h =90.45 for the desired level2.96 = number of standard deviations required 95. Inc.1 = required sample size S10 – 24 .0 1.65 z s x n © 2008 Prentice Hall.0 accuracy level desired in percent of the 1.00 of confidence 99.0 2.58 = standard deviation of the initial sample 99.

96 (from Table S10.05 x 3 © 2008 Prentice Hall.00 h = .00 s = 1.74 ≈ 171 S10 – 25 .0 Sample mean = 3. Inc.96 x 1.Time Study Example S3 Desired accuracy with 5% Confidence level = 95% Sample standard deviation = 1.0 z = 1. 2 = 170.0 n= .1 or Appendix I) zs n= hx 2 1.05 x = 3.

substitute e for hx.x)2 n-1 = ∑(Each sample observation . it must be computed s= © 2008 Prentice Hall. Inc.1 S10 – 26 .Time Study Example S3 Variations If desired accuracy h is expressed as an absolute amount. where e is the absolute amount of acceptable error 2 zs n= e When the standard deviation s is not provided. ∑(xi .x)2 Number in sample .

and logged  Reduces or eliminates the need for data entry © 2008 Prentice Hall. and statistical confidence intervals can be created. time. edited. S10 – 27 .New Tools  With PDA software. performance rate. you can study elements. Inc. managed.

Predetermined Time Standards  Divide manual work into small basic elements that have established times  Can be done in a laboratory away from the actual production operation  Can be set before the work is actually performed  No performance ratings are necessary © 2008 Prentice Hall. S10 – 28 . Inc.

MTM Table Figure S10.2 © 2008 Prentice Hall. S10 – 29 . Inc.

place on counter Get centrifuge tube. place at sample table Pour (3 seconds) Place tubes in rack (simo) Element AA2 AA2 AD2 PT PC2 Time 35 35 45 83 40 Total TMU .easy Place accuracy .approximate Distance range .0006 x 238 = Total standard minutes = .2 © 2008 Prentice Hall. Inc.less than 2 pounds Conditions of GET .8 to 20 inches Element Description Get tube from rack Get stopper. S10 – 30 .14 238 Table S10.MTM Example Weight .

reassign duties. and set delay allowances © 2008 Prentice Hall. S10 – 31 . Inc. estimate costs.Work Sampling  Estimates percent of time a worker spends on various tasks  Requires random observations to record worker activity  Determines how employees allocate their time  Can be used to set staffing levels.

S10 – 32 . Inc.Work Sampling  Advantages of work sampling  Less expensive than time study  Observers need little training  Studies can be delayed or interrupted with little impact on results  Worker has little chance to affect results  Less intrusive © 2008 Prentice Hall.

S10 – 33 . Inc.Work Sampling  Disadvantages of work sampling  Does not divide work elements as completely as time study  Can yield biased results if observer does not follow random pattern  Less accurate. especially when job element times are short © 2008 Prentice Hall.

Work Sampling 1. Inc. Compute the sample size required 3. Determine how workers spend their time © 2008 Prentice Hall. Take a preliminary sample to obtain estimates of parameter values 2. Observe and record worker activities 5. Prepare a schedule for random observations at appropriate times 4. S10 – 34 .

. Inc.Work Sampling Determining the sample size z2 p(1 .p) n= h2 where n = required sample size z = standard normal deviate for desired confidence level p = estimated value of sample proportion h = acceptable error level in percent S10 – 35 © 2008 Prentice Hall.

Inc. S10 – 36 .Work Sampling Example Wants employees idle 25% of the time Sample should be accurate within 3% Wants to have 95.45% confidence level estimate of idle proportion = 25% = .25 acceptable error of 3% = .75) n= = 833 observations 2 (.03 (2)2 (.45% confidence in the results z2 p(1 .03) © 2008 Prentice Hall.25)(.p) n= h2 where n z p h = = = = required sample size 2 for a 95.

Work Sampling Example No. meeting. Percentage idle time = (126 + 62)/833 = 22.6%. and computer data entry Activity On the phone or meeting with a welfare client All but idle and personal time are work related. © 2008 Prentice Hall. of Observations 485 126 62 23 137 833 Idle Personal time Discussions with supervisor Filing. Inc. S10 – 37 . the workload needs to be adjusted. Since this is less than the target value of 25%.

Work Sampling Time Studies Salespeople Sales in Travel person 20% 20% Paperwork 17% Lunch and personal 10% Meetings and other 8% S10 – 38 Telephone sales 12% Telephone within firm 13% Figure S10. Inc. .3 © 2008 Prentice Hall.

Inc.3 © 2008 Prentice Hall. S10 – 39 .Work Sampling Time Studies Assembly-Line Employees Startup/pep talk 3% Breaks and lunch 10% Dead time between tasks 13% Productive work 67% Unscheduled tasks and downtime 4% Cleanup 3% Figure S10.