Operations

Management

Work Measurement
Supplement 10
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Operations Management, 5e, and Operations Management, 7e S10-1
 Outline

 LABOR STANDARDS AND WORK

MEASUREMENT
 HISTORICAL EXPERIENCE
 TIME-STUDIES
 PREDETERMINED TIME STANDARDS
 WORK SAMPLING

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 Learning Objectives
When you complete this supplement, you should be
able to :
Identify or Define:
 Four ways of establishing labor standards
Describe or Explain:
 Requirements for good labor standards
 Time study
 Predetermined time standards
 Work sampling

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 Uses of Labor Standards
 Costing labor content of products
 Planning staffing needs
 Estimating time and cost for bids
 Planning production (crew size and work balance)
 Estimating expected production
 Basing wage-incentive plans
 Determining employee efficiency

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 Sources of Labor Standards

 Historical experience
 Time studies
 Predetermined time
standards (MTM)
 Work sampling

© 1995
Corel
Corp.

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 Historical Experience

 Relatively easy, convenient, and inexpensive

 Not objective, unknown accuracy

Not recommended

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 Time Studies

 Labor standards are based on observing worker

doing task
 Observe only a sample of work
 Use average time & pace to set standard
 Disadvantages
 Requires a trained & experienced analyst
 Standard cannot be set before task is performed

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The Eight Steps to Conducting a Time
Study
1. Define the task to be studied (after a methods analysis)
2. Break down the task into precise elements
3. Decide how many times each element of the task must
be measured
4. Record the times and ratings of
performance for the task elements
5. Compute the average observed cycle time (element
times adjusted for unusual influences)

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 The Eight Steps to Conducting a
Time Study - continued
6. Compute the normal time for each task element:
Normal time = (Average actual cycle time)
x (Rating factor)
7. Sum the normal times for each element to
develop a total normal time for the task
8. Compute the standard time:

Standard time = Total normal time

1- Allowance factor

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 Allowances
 Personal time allowance - 4% - 7% of total time -
use of restroom, water fountain, etc.
 Delay allowance - based upon actual delays that
occur
 Fatigue allowance - to compensate for physical or
mental strain, noise level, tediousness, heat and
humidity, assumption of an abnormal position, etc.

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 Rest Allowances (%) for Various
Classes of Work
1. Constant allowance
(a) Personal allowance ……………... 5
(b) Basic fatigue allowance ………… 4
2.Variable allowances:
(A) Standing allowance …………….. 2
(B) Abnormal position
(I) Awkward (bending) …………. 2
(ii) Very awkward (lying,
stretching) …………………….. 7
(C) Use of force or muscular energy
in lifting, pulling, pushing
Weight lifted (pounds)
20 ………………………………… 3
40…………………………………. 9
60…………………………………. 17
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 Rest Allowances (%) for Various
Classes of Work - Continue
(D) Bad light
(i) Well below recommended ….. 2
(ii) Quite inadequate ……………. 5
(E) Atmospheric conditions (heat
and humidity)
Variable ………………………….. 1-10
(F) Close attention
(i) Fine or exacting ……………… 2
(ii)Very fine or very exacting …... 5
(G) Noise level
(i) Intermittent – loud …………… 2
(ii) Intermittent – very loud or
high-pitched 5
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 Rest Allowances (%) for Various
Classes of Work - Continue
(H) Mental strain
(i) Complex or wide span of
attention ……………………… 4
(ii) Very complex ……………. 4
(I) Tediousness
(i) Tedious ……………………. 2
(ii) Very tedious ……………… 5

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 Time Studies - Sample Size

 zs 
Sample size, n   
 hx 
h = accuracy level desired as percent of job element,
expressed as a decimal (5% = 0.05)
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

 ix  x  2

Note : s 
n 1

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 Considerations in Determining
Sample Size

1. How accurate do you want to be?

2. What level of confidence do you want your
measurements to have?
3. How much variation exists within the job
elements?

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 Common z values

Desired Confidence Z Value

Level (%)
90.11 1.65
95.00 1.96
95.45 2.00
99.11 2.58

99.0
99.73 3.00

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 Time Study Equations
Nonwork time
Allowance factor =
Total time
 Element times
Average element time =
Number of cycles
Normal time = Average element time * Perf. Rating
Total normal time
Standard time =
1 - Allowance factor
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