1. WORK MEASURMENT
Work Measurement is a term which covers several different ways of
finding out how long a job or part of a job should take to complete. It can
be defined as the systematic determination, through the use of various
techniques, of the amount of effective physical and mental work in terms
of work units in a specified task. The work units usually are given in
standard minutes or standard hours.
Why should we need to know how long a job should take? The answer to
this question lies in the importance of time in our everyday life. We need
to know how long it should take to walk to the train station in the
morning, one needs to schedule the day's work and even when to take
out the dinner from the oven.
In the business world these standard times are needed for:
1.) planning the work of a workforce,
2.) manning jobs, to decide how many workers it would need to
complete certain jobs,
3.) scheduling the tasks allocated to people
4.) costing the work for estimating contract prices and costing the
labour content in general
5.) calculating the efficiency or productivity of workers - and from this:
6.) providing fair returns on possible incentive bonus payment
schemes.
On what are these standard times set? They are set, not on how long a
certain individual would take to complete a task but on how long a
trained, experienced worker would take to do the task at a defined level
of pace or performance.

2. Who sets these standard times? Specially trained and qualified observers
set these times, using the most appropriate methods or techniques for
the purpose i.e. "horses for courses".
How it is done depends on circumstances that obtain. The toolkit
available to the comprehensively trained observer is described below.
Selecting the most appropriate methods of work
measurement
The method chosen for each individual situation to be measured depends
on several factors which include:
a.)the length on the job to be measured in time units
b.)the precision which is appropriate for the type of work in terms of time
units (i.e. should it be in minutes, hundredths or thousandths of a
minute)
c.) the general cycle-time of the work, i.e. does it take seconds, minutes
or days to complete
The length of time necessary for the completion of the range of jobs can
vary from a few seconds in highly repetitive factory work to several weeks
or months for large projects such as major shutdown maintenance work
on an oil refinery. It is quite clear that using a stop-watch, for example,
on the latter work would take several man-years to time to measure!
Thus, more "overall" large-scale methods of timing must be employed.
The precision is an important factor, too. This can vary from setting times
of the order of "to the nearest thousandth of a minute" (e.g. short cycle
factory work) to the other end of the scale of "to the nearest week" (e.g.
for large project work).
These are the dominant factors that affect the choice of method of
measurement.

3. The ways of work measurement
PMTS.
At the "precision" end of the scale is a group of methods known as
predetermined motion time systems that use measurement units in ten
thousandths (0.0001) of a minute or hundred-thousandths of an hour
(0.00001 hour).
The resulting standard times can be used directly, for very short-cycle
work of around one minute total duration such as small assembly work.
However, they often are used to generate regularly used basic tasks such
using assembling or disassembling nuts and bolts, using a screwdriver
and similar. Tasks of this type are filed as standard or synthetic data-
banks.
Estimating.
At the other end of the scale (long-cycle and project work) we need
something which is quick to use. Such a method is estimating. This can
exist in three main forms.
a.)Analytical estimating relies on the experience and judgement of the
estimator. It is just of case of weighing up the work content and, using
this experience, stating a probable time for completion, such as "this job
will take about eight days to complete".
b.)Category estimating. This is a form of range estimating and requires
a knowledge of the work. Estimators may not feel comfortable with
overall, analytical estimates upon which may depend the outlay of a great
deal of money. They often prefer giving a range estimate such as "this job
should take between 12 weeks and 14 weeks to complete", which
provides a safety net should things go wrong. Such ranges are not just

4. picked upon at random but are statistically calculated and based on
probability theory.
c.)Comparative estimating. This is another example of range
estimating. Again, estimators rely on experience of the work in order to
produce estimates. This experience can be augmented by the provision of
each time-range with a few typical, descriptive, jobs that would guide
estimators to the most appropriate range. The estimator would compare
the work to be estimated with those in the various ranges until the most
appropriate fit is found.
Timing.
The intermediate method between the two groups above, is timing the
work in some way, usually with a stop-watch or computerised electronic
study board. This method is retrospective in that the job must be seen
in action in order to be timed whereas the other methods are
prospective and can be used for timing jobs before they start.
The observer times each element of the work and obtains times that the
observed operator takes to do the elements. Each timing is adjusted
(rated) by the pace at which the operator was working as assessed by the
observer. This produces basic times for the elements and hence the whole
job, which are independent of the operator and can be used as the time
for a trained, experienced worker to carry out the same elements.
Another method of assessing the work is using activity sampling and
rated activity sampling. This is a method based on the observer making
snap observations at random or systematic sample times, observing what
the operator is (or operators are) doing at the times of those observations
Models:
A most useful method for standard or synthetic data-banks of job or
element times is using computer models of the jobs. These are generated

5. as mathematical formulae in which the observed data are inserted to
compile a time for completion of the task or project. It is a useful method
for recycling time standards for elements of basic work over and over
again, only changing the values of the variables to suit each project
ACTIVITY SAMPLING
What is it ?
Activity Sampling is a statistical technique that can be used as
a means for collecting data. It is defined by BS 3138:41008 as:
A technique in which a large number of observations are made
over a period of time of one group of machines, processes or
workers. Each observation records what is happening at that
instant and the percentage of observations recorded for a
particular activity or delay is a measure of the percentage of
time during which that activity or delay occurs.
It is normally used for collecting information on the
percentages of time spent on activities, without the need to
devote the time that would otherwise be required for any
continuous observation.
One of the great advantages of this technique is that it enables
lengthy activities or groups of activities to be studied
economically and in a way that produces statistically accurate
data.
Fixed and Random Interval Sampling
Activity Sampling can be carried out at random intervals or
fixed intervals. Random activity sampling is where the intervals
between observations are selected at random e.g. from a table
of random numbers. Fixed interval activity sampling is where

6. the same interval exists between observations. A decision will
need to be made on which of these two approaches is to be
chosen. A fixed interval is usually chosen where activities are
performed by a person or group of people who have a degree
of control over what they do and when they do it. Random
intervals will normally be used where there are a series of
automated tasks or activities as part of a process, that are
have to be performed in a pre established regular pattern. If
fixed interval sampling were to be used in this situation there is
a danger that the sampling point would continue to occur at
the same point in the activity cycle.
Confidence Levels
Remember, that activity sampling is used for assessing the
percentage of time spent on activities.
Because activity sampling conforms to the binomial distribution
it is possible to use a calculation to determine how many
observations will be needed to operate within specified limits of
accuracy.
The formula for the number of observations is as follows:
= 4 x p x (100 - p)
L2
Where p is the estimated % time spent on the activity
Where L is the limit of error, expressed as a %
Once the above calculation has been completed the
observations can begin and activities are recorded at the
agreed time intervals. When they have been completed a
further calculation can be used to determine the error rate, as
follows:

7. Error Rate = ± 2 x √( p x (100 - p) )
Number of observations
This is very much an overview to the topic of activity sampling,
with a definition of what it is, its advantage over continuous
observation and the formulae that can be used to establish the
confidence levels that can be obtained.
DATA COLLECTION
What is/are data?
One definition of data is: "known facts or things used as a basis
for inference or reckoning":- The OED.
Another is: "facts given from which others may be inferred": -
Chambers Dictionary.
The term "data" more commonly is another word for "statistics"
or numerical facts. The UK Prime minister, Disraeli, is quoted
as saying, "There are lies, damned lies and statistics". Indeed,
statistical data can be presented to mean what you wish them
to mean. ("Data" is a plural word, the singular being datum.
However, through American influence it is acceptable to use
"data" in the singular form rather than "data are".

8. Forms of data
Data can be separated into three categories of data
(variables):
a.)discrete variables, which are numerical and can only be
particular numbers, such as the number of workers in an
organization (i.e. they are counted in single units)
b.)continuous variables, which are dimensions of items in
units of measurement such as metres, litres, volts and other
units of length, volume, time.
c.)attribute variables, which are descriptive e.g. a machine
"on" or "off", or an employee absent or present.
The main phases in the collection of data using sampling
methods are:
1. The purpose or objective for collecting the data,
2. identification of the entire "population" from which the data
are to be collected (e.g. a sampling frame).
3. decisions on:
o method of collection, or how the data are to be collected
o sample size (i.e. how many readings to collect), and
4. validation of the results, this being a vital part of the
collection/analysis process.
Sampling
One important thing to bear in mind is that something in the
system must be random. This could be the situation which is
random or a sampling method which contains a random

9. element for picking the components of the sample. Some of
these follow.
The choice of sampling method depends on the type of data
being sampled.
Random sampling:
A common method is simple random sampling or the lottery
method. One of the most convenient ways is to allocate
numbers to all components of the population to be sampled
and obtain the required amount of numbers to constitute the
sample size. The ways of obtaining a random sample of
numbers range from drawing numbers blindly "from a hat", (or
the mechanized version of agitated balls being ejected from a
drum), to the use of computer generated numbers.
Systematic sampling.
Often known as the constant skip method, this form of
sampling is based on taking every nth reading from the random
population. For example, in a survey, taking every 9th house in
a street, for example, numbers 3, 12, 21, 30, 39 and so on).
Care must be taken to avoid bias, so in the UK, taking every
10th house means they would all be on the same side of the
road, and this might be significant.
Stratified sampling.
In order to ensure that all groups in a population are properly
represented, this method separates the population into strata
and allocates proportional representation to each stratum. With
people, the strata may be occupations, or social classes, ages,

10. or income groups for example. Once selected, one of the other
two methods may be used within the strata.
Other methods.
These include quota sampling, cluster sampling and multi-stage
sampling.
Validation
It is of little use if the sample collected does not represent the
whole population. Clearly no sample can exactly reflect the true
result had the whole population been surveyed. Therefore,
probably there the sample result will differ from the true
situation. What is important is that we are aware of the
probable statistical errors which inevitably arise because the
whole population was not investigated. Provided that the
population is relatively large, the magnitude of the statistical
error depends not on the size of the population but on the size
of the sample. The error can be calculated (dealt with
elsewhere in this Managers-net Web-site) or alternatively, the
sample size can be calculated prior to data collection if we
decide on the size of the error which we can tolerate. If the
subsequent error is too large, then a bigger sample size must
be taken, i.e. a further set of observations to add to the
existing ones. At least, we can be aware of the statistical error
to which our results are subject due to sampling and use the
data appropriately.

11. STATISTICAL PROCESSING CONTROL
The fundamentals of Statistical Process Control (though that
was not what it was called at the time) and the associated tool
of the Control Chart were developed by Dr Walter A Shewhart
in the mid-1920’s. His reasoning and approach were practical,
sensible and positive. In order to be so, he deliberately avoided
overdoing mathematical detail. In later years, significant
mathematical attributes were assigned to Shewharts thinking
with the result that this work became better known than the
pioneering application that Shewhart had worked up.
The crucial difference between Shewhart’s work and the
inappropriately-perceived purpose of SPC that emerged, that
typically involved mathematical distortion and tampering, is
that his developments were in context, and with the purpose,
of process improvement, as opposed to mere process
monitoring. I.e. they could be described as helping to get the
process into that “satisfactory state” which one might then be
content to monitor. Note, however, that a true adherent to
Deming’s principles would probably never reach that situation,
following instead the philosophy and aim of continuous
improvement.
Explanation and Illustration:
What do “in control” and “out of control” mean?
Suppose that we are recording, regularly over time, some
measurements from a process. The measurements might be
lengths of steel rods after a cutting operation, or the lengths of
time to service some machine, or your weight as measured on
the bathroom scales each morning, or the percentage of
defective (or non-conforming) items in batches from a supplier,
or measurements of Intelligence Quotient, or times between
sending out invoices and receiving the payment etc., etc..

12. A series of line graphs or histograms can be drawn to represent
the data as a statistical distribution. It is a picture of the
behaviour of the variation in the measurement that is being
recorded. If a process is deemed as “stable” then the concept
is that it is in statistical control. The point is that, if an outside
influence impacts upon the process, (e.g., a machine setting is
altered or you go on a diet etc.) then, in effect, the data are of
course no longer all coming from the same source. It therefore
follows that no single distribution could possibly serve to
represent them. If the distribution changes unpredictably over
time, then the process is said to be out of control. As a
scientist, Shewhart knew that there is always variation in
anything that can be measured. The variation may be large, or
it may be imperceptibly small, or it may be between these two
extremes; but it is always there.
Wheeler and Chambers combine and summarise these two
important aspects as follows:
 "While every process displays variation, some processes
display controlled variation, while others display
uncontrolled variation."
Why is "in control" and "out of control" important?
Shewhart gave us a technical tool to help identify the two types
of variation: the control chart .
What is important is the understanding of why correct
identification of the two types of variation is so vital. There are
at least three prime reasons.
First, when there are irregular large deviations in output
because of unexplained special causes, it is impossible to
evaluate the effects of changes in design, training, purchasing
policy etc. which might be made to the system by

13. management. The capability of a process is unknown, whilst
the process is out of statistical control.
Second, when special causes have been eliminated, so that
only common causes remain, improvement then has to depend
upon management action. For such variation is due to the way
that the processes and systems have been designed and built –
and only management has authority and responsibility to work
on systems and processes. As Myron Tribus, Director of the
American Quality and Productivity Institute, has often said:
 “The people work in a system.
 The job of the manager is
o To work on the system
o To improve it, continuously,
 With their help.”
Finally, something of great importance, but which has to be
unknown to managers who do not have this understanding of
variation, is that by (in effect) misinterpreting either type of
cause as the other, and acting accordingly, they not only fail to
improve matters – they literally make things worse. These
implications, and consequently the whole concept of the
statistical control of processes, had a profound and lasting
impact on Dr Deming. Many aspects of his management
philosophy emanate from considerations based on just these
notions.

14. So why SPC?
The plain fact is that when a process is within statistical
control, its output is indiscernible from random variation: the
kind of variation which one gets from tossing coins, throwing
dice, or shuffling cards. Whether or not the process is in
control, the numbers will go up, the numbers will go down;
indeed, occasionally we shall get a number that is the highest
or the lowest for some time. Of course we shall: how could it
be otherwise? The question is - do these individual occurrences
mean anything important? When the process is out of control,
the answer will sometimes be yes. When the process is in
control, the answer is no.
So the main response to the question Why SPC? is therefore
this: It guides us to the type of action that is appropriate for
trying to improve the functioning of a process. Should we react
to individual results from the process (which is only sensible, if
such a result is signalled by a control chart as being due to a
special cause) or should we instead be going for change to the
process itself, guided by cumulated evidence from its output
(which is only sensible if the process is in control)?
Process improvement needs to be carried out in three
chronological phases:
 Phase 1: Stabilisation of the process by the identification
and elimination of special causes:
 Phase 2: Active improvement efforts on the process itself,
i.e. tackling common causes;
 Phase 3: Monitoring the process to ensure the
improvements are maintained, and incorporating
additional improvements as the opportunity arises.
Control charts have an important part to play in each of these
three Phases. Points beyond control limits (plus other agreed
signals) indicate when special causes should be searched for.

15. The control chart is therefore the prime diagnostic tool in Phase
1. All sorts of statistical tools can aid Phase 2, including Pareto
Analysis, Ishikawa Diagrams, flow-charts of various kinds,
etc., and recalculated control limits will indicate what kind of
success (particularly in terms of reduced variation) has been
achieved. The control chart will also, as always, show when any
further special causes should be attended to. Advocates of the
British/European approach will consider themselves familiar
with the use of the control chart in Phase 3. However, it is
strongly recommended that they consider the use of a
Japanese Control Chart (q.v.) in order to see how much more
can be done even in this Phase than is normal practice in this
part of the world.
STATICAL SAMPLING FOR DATA COLLECTION
When it is possible to collect all the data for a population, the
results (for example the parameters like average (mean) or
dispersion of the data values) will accurately represent the
situation. However, because the sampling frame from which
the sample is taken usually will be large, it is impossible to
measure all the data, so a sample must be obtained.
Unfortunately, because we cannot measure all of the data the
sample parameters when calculated probably will not
accurately represent the whole data field. This gives rise to
what are known as statistical, or sampling, errors.
Two important points about sampling are that the sample must
be (a) representative of the situation and
(b) usually random,
in order to avoiding the effects of bias. Random sampling is
the most usual methods of obtaining representative sampling.

16. Methods of sampling
1. Random sampling
As already mentioned above, when taking a sample something
within the sampling frame must be random in order to avoid
the effects of bias. Either the situation must be random or the
sampling must be on a random basis.
One of the most common, but not the simplest, is random
sampling as used in lotteries. Random samples may be taken
by several methods including thoroughly mixing up the items in
the sampling field and then picking the number of items in the
sample size at random e.g. without selecting). Another method
is to number each item in the population of values and then
use randomly generated numbers to obtain the random
sample. Many are already numbered such as serial numbers on
equipment, passports or National Insurance numbers. Random
numbers may be found in textbooks, statistical tables or as
computer programs.
The following example is not necessarily how it is done in
practice but is one method of sampling to illustrate the method
in general terms.
Suppose an electricity supply organisation needs to assess the
degree of corrosion of its main power lines in various areas of
the country in order to find those areas which are prone to the
worst corrosion and hence might need more attention than
other areas. It is an impossibly time-consuming task to inspect
every power line between every tower in every area and,
indeed, not necessary. Sampling can provide a sufficiently
"accurate" or reliable answer with a known degree of error.
Meanwhile, using a map of the grid system the researcher
could divide the territory into areas and the areas into smaller
locations. Each power line could be divided into smaller lengths

17. (possibly "between each tower") and each smaller length
would be identified in some way (e.g. numbering or coding).
In order to decide which of the thousands of lengths of cable
are to be examined, first of all the sample size (i.e. how many
lengths to be inspected) must be determined. It is the sample
size that eventually determines the degree of error in the
result, when this is applied to the whole network including
those thousands of lengths which were not checked. Basically,
the larger the sample size the smaller is the statistical error.
These statistical errors are not to be confused with human
error nor with measuring equipment error.
When the sample size has been calculated (as dealt with in a
later Topic) The next stage is to identify which of the lengths
are to be inspected.
For this purpose it is necessary to generate random numbers
either from tables available in many books on statistical
method or from computer spreadsheets (e.g. Lotus 1-2-3, or
EXCEL). When the required number of random numbers has
been obtained these are used to identify the corresponding
numbers on the grid map as the ones to be inspected.
Figure 1 illustrates a very simplified, abridged example of
this method in diagrammatic form showing only 30 lengths of
cable. These are numbered 1 to 30.
A sample size of eight is used in this instance. Random
numbers, taken from a random number table, are
18,28,5,13,16,9,26 and 21. These are indicated in red on the
"map" below. These numbered cables would be used as the
sample:

18. Cable
numbers
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3
1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0
Methods of sampling
2.Systematic sampling
Systematic sampling (or constant skip method) is not random.
Nevertheless, it can be used where the situation is random.
For example, suppose the objective of a large organization is to
obtain a random selection from the 800 employees to sit as
representatives on a management productivity group. Each has
an employee staff identification number issued randomly by
Personnel Department. To collect a sample of 20 names,
management could take, for example every 40th name from the
staff register (i.e. 800 divided by 20 equals 40, hence every
40th name).
Methods of sampling 3. - stratified sampling
This method is useful where the sampling frame has natural
strata or divisions. For example, to ensure that all
occupations in a company are equally represented the
occupations could be the strata and within each stratum,
random or systematic samples could be taken. So, using the
example quoted for systematic sampling, if the employees
consisted of 64 managers, 200 supervisors and 536 engineers
(=800 employees) to obtain a representative proportion from
each employee grade (or stratum), the proportions would be:

19. for managers, 64 out of 800 total employees = 8%, 200 out of
800 = 25% and 536 out of 800 = 67%.
Therefore, 8% of the random numbers would be from
management names, 25% from supervisors' names and the
rest, 67%, from the engineers' names. This ensures a
representative proportion from each group.
Mystery shoppers
The "mystery shoppers" method of sampling is used in market
research to determine the quality of goods and services. With
this method employees or specially engaged agencies acting as
"customers" make notes on the service they receive in the
environment being inspected.
This method can be used for testing the "ambience" of areas
(e.g. "how pleasant" is the area). For example, some rail
services use the method for inspecting their rolling stock and
stations for litter, vandalism, malicious damage, graffiti and the
general appearance of the environment and "feel" of their
assets.
ANALYTICAL SAMPLING
What is it ?
Analytical estimating is a structured work measurement
technique. The formal BSI definition (22022) states that it is a
development of estimating, in which the time required to
perform each constituent part of a task at a defined rate of
working is estimated from knowledge and practical experience
of the work and/or from synthetic data
An important feature of this technique, which helps to improve
accuracy, is that a whole job should be broken down into
smaller individual tasks. This is because any errors in the time

20. estimates may be seen as random and will therefore
compensate for each other.
How can it be used ?
Analytical estimating would normally be used for assessing
work over a reasonably lengthy period of time, where it may be
difficult and more expensive to collect the information required
using other measurement techniques. Also, in some work
environments the presence of an individual carrying out work
measurement in the work place could be unacceptable. In
these cases, analytical estimating may be an appropriate
method to use, assuming someone with experience of the work
is available to apply their experienced judgement. ( This may
be work measurement personnel who have previous experience
of this particular work )
However, the work content of some jobs cannot be estimated
in advance because one is unclear about what is required until
an assembly operation has been tested or stripped down. For
example, during the progress of repair unforeseen and non
standard difficulties can arise. Removing a wooden door from
its frame by unscrewing 8 or 12 screws could take five minutes
if the screws were recently inserted, or a great deal longer if
the screws are rusted and clogged with paint.
In summary, the technique is used most commonly in any work
environment where a lengthy time (and associated high cost) is
needed to collect data.
Advantages & Disadvantages
Perhaps the most significant advantage of using anaytical
estimating is its speed of application and low cost. Using
trained and experienced personnel process and measurement
data can be quickly assembled and applied.
However, the use of experienced judgement when determining
the time necessary to perform a task is the technique's most

21. obvious source of weakness when compared with a more
precise technique such as time study. This is why the
technique would not normally be used when a more precise
and accurate alternative is a feasible and economic alternative,
particularly to highly repetitive, standardised operations.
Many jobs, such as craft work in the maintenance field, consist
of a group of tasks which are periodically repeated but the
precise nature of each task varies each time in minor respects (
see research on Natural & Normal Variation for further
explanation). In this example, since it is impractical, in terms
of time and cost, to allocate one time study observer
permanently to each craftsman, the alternative is to use a
time-study basis plus the experienced judgement of an ex-craft
work-study observer to allow for detailed task variations.
BUSINESS PLANNING
Business (Corporate) Planning is the process of deciding what
tactical action and direction to take, in all areas of business
activity, in order to secure a financial and market position
commensurate with the strategic objectives of the organisation.
To put it another way, it is the comprehensive planning for the
whole of the business and involves defining the overall
objectives for the organisation, and all the actions that must be
adopted in order that those objectives are achieved.
Illustration:
If only we spent as much time doing our jobs, as we waste in
these budget meetings, we would be a lot better off. This
planning stuff is all very well, but has anyone ever worked out
how much it costs? Anyway, all we can ever do is write down
what we think will happen, then wait until it hasn’t happened,
and finally argue about why it didn’t. Sometimes I wonder if it
is all worthwhile.

22. Statements like these occur because:
 No one has taken the trouble to explain the purpose and
benefits of planning;
 The planning methods are wrong;
 Plans are imposed from above, rather than worked out
and agreed with the people who are going to have to
carry them out;
 So-called planning is often no more than totalling up the
various departments’ forecasts, and calling them the
company plan.
In general it can be assumed that FIVE important features of
Corporate Planning prevail, they are:
1. Objectives and objective setting;
2. Flexibility - the ability to be adaptable within the plan;
3. Growth - anticipating opportunities for new markets;
4. Synergy - the sum of joint efforts being greater than
either one;
5. Time span - the critical length of the plan - long termism
is increasingly risk managed in today’s business
environment.

23. CORPORATE PLANNING
A planning technique that aims to integrate all the planning
activities of an organisation and relate them to the best overall
objectives for the organisation.
Explanation:
A large number of planning techniques has been extensively
used in business and commerce for a considerable time.
Budgetary control (q.v.) which involves a large amount of
budgetary planning has been one of the most wide ranging and
successful, via its materials, labour, sales, overheads, R&D,
capital and cash budgets. A further development of this is the
technique of profit planning (q.v.), which considers a number
of alternative strategies on capital investment, expansion,
diversification for example, before setting a single preferred
plan. Corporate planning represents a further widening and, at
the same time, a closer integration of earlier techniques. As
examples of the widening process, corporate planning would
normally include management development and training,
environmental and community plans in addition to operating
plans. As an example of closer integration, the technique would
involve all managers and departments in setting objectives and
determining the means to achieve them, in relation to the
overall company plan.
Illustration:
The technique has found most favour with larger companies of
mature standing, i.e. those whose days of headlong growth are
over, who are subject to strong international competition and
who wish to think out extremely carefully their future
investment projects and at the same time to harmonise and
integrate the policies, procedures and plans created in each
country, division and operating unit of the company.

24. Predetermined motion time system (PMTS)
Definition:
PMT Systems are methods of setting basic times for doing basic
human activities necessary for carrying out a job or task.
'Tables of time data at defined rates of working for classified
human movements and mental activities. Times for an
operation or task are derived using precise conventions.
Predetermined motion time data have also been developed for
common combinations of basic human movements and mental
activities'.
Background
The principle of analyzing work into into basic actions was first
published by F. Gilbreth in 1920, as his Therbligs. The first
commercial and internationally recognized system was devised
in the 1930's to circumvent the banning by the government of
the United States time study and the stop-watch as the means
of measuring work performed on US government contracts. It
was devised by Quick, Malcolm and Duncan under the title
Work-Factor and appeared in 1938. Other methods followed,
the main one, some ten years later, being Methods-Time
Measurement (MTM). Both systems share basic similarities but
are based on different standards of time.
Outline description of PMTS
The concept of PMTS is to analyse a job into its fundamental
human activities, apply basic times for these from tables and
synthesize them into a basic time for the complete job. The
basic elements include the following:

25.  reach for an object or a location,
 grasp an object , touching it or closing the fingers around
it,
 move an object a specified distance to a specified place,
 regrasp an object in order to locate it in a particular way,
usually prior to:
 release an object to relinquish control on it,
other elements for assembling to, or inserting an object into,
its intended location.
For each of these actions basic times are tabled. For example,
in Work-Factor the time unit is one thousandth of a minute
(the Work-Factor Time Unit) whereas in MTM the unit is one
hundred-thousandth of an hour (time measurement unit, tmu).
The times for basic actions are adjusted for other factors which
take into account such variables as:
 distances moved, in inches or centimetres
 difficulty in performing the actions, such as avoiding
obstacles during moves, closeness of fit during
assembling, weight of the object, all of which increase the
times to carry out the basic actions.
The above basic motions cover most of the actions performed
by humans when carrying out work. Other basic activities
include:
 walking to a specified place
 bending down and stooping
 kneeling on one knee and kneeling on both knees
 foot and leg motions
 sitting down and standing.

26. Mental activities include times for: See, Inspect, Identify,
Nerve Conduct, React, Eye focus, Eye travel times, Memorize,
Recall, Compute (calculate) and others, mostly from Work-
Factor.
Levels of detail in systems
In order to speed up measurement time the major systems all
include different levels of detail, such as:
1. most detailed systems: MTM and Detailed Work-Factor
2. Second level systems: MTM-2 and Ready Work-Factor
(abridged versions) achieved usually by the four methods
of combining, statistically averaging, substituting and/or
eliminating certain basic motions.
3. Third level systems: MTM-3 and Abbreviated Work-Factor
(even more abridged)
4. "higher level" systems, usually times for complete
activities.
One example of simplifying in the second level system MTM-2
is the combining of MTM elements reach, grasp and release to
produce a new MTM-2 element of "Get".
PMTS is often used to generate synthetic data or (standard
data banks) which are overall basic times for more complex
tasks such as maintenance or overhauling of equipment. This is
achieved by synthesizing the hundreds of small jobs measured
using PMTS into a time for the complete project.
Basic times produced by PMTS need to have relaxation
allowances and other necessary allowances added to produce
standard times.

27. An example of part of a typical analysis in MTM-2 is
An extract from an MTM analysis showing the first seven
elements.
MTM Analysis
Job description: Analyst: EJH
Assemble r.f.
transformer to base- Date: 3 May
plate
El. Description LH tmu's RH Description
Move hand to
1 Move hand to washer R14C 15.6 R14B
transformer
Grasp
2 Grasp first washer G4B 9.1 G1A
transformer
Move hand clear of
3 M2B --- --- Hold in box
container
4 Palm washer G2 5.6 --- Ditto
5 To second washer R2C 5.9 --- Ditto
6 Grasp washer G4B 9.1 --- Ditto
Transformer to
7 Move washers to area M10B 16.9 M14C
plate
Notes on descriptions of some of the codes as examples.
The codes in the LH and RH columns refer to those in the MTM
time tables. For example: R14C is translated as "Reach 14 in.
to an object jumbled with other objects in a group, so that

28. search and select occur" (Class C reach). R14B is translated as
"Reach 14 in. to a single object in location which may vary
slightly from cycle to cycle." G2 is a grasp Case 2 which is a
Regrasp to move the washer into the palm G4B is a Grasp Case
4B which is for grasping *object jumbled with other objects so
search and select occur. Objects within the range 0.25 x 0.25 x
0.125 in. to 1 x 1 x 1 inch."
One tmu is one hundred-thousandth of an hour.
Time study
What is it?
Time study is a tried and tested method of work measurement
for setting basic times and hence standard times for carrying
out specified work. Its roots are back to the period between the
two World Wars.
The aim of time study is to establish a time for a qualified
worker to perform specified work under stated conditions and
at a defined rate of working.
This is achieved by a qualified practitioner observing the work,
recording what is done and then timing (using a time
measuring device) and simultaneously rating (assessing) the
pace of working.
The requirements for taking a time study are quite strict.
Conditions:
 the practitioner (observer) must be fully qualified to carry
out Time Study,
 the person performing the task must be fully trained and
experienced in the work,

29.  the work must be clearly defined and the method of doing
the work must be effective
 the working conditions must be clearly defined
There are two main essentials for establishing a basic time for
specified work i.e. rating and timing.
Some terminology explained
Timing
The observer records the actual time taken to do the element
or operation. This usually is in centiminutes (0.01 min.) and is
recorded, using a stop-watch or computerized study board.
Rating.
When someone is doing work his/her way of working will vary
throughout the working period and will be different from others
doing the same work. This is due to differing speeds of
movement, effort, dexterity and consistency. Thus, the time
taken for one person to do the work may not be the same as
that for others and may or may not be 'reasonable' anyway.
The purpose of rating is to adjust the actual time to a
standardized basic time that is appropriate and at a defined
level of performance. Rating is on a scale with 100 as its
standard rating.
Elements
A complete job usually will be too long and variable to time and
rate in one go, so it would be analysed into several smaller
parts (elements) which, separately, will each be timed and
rated.

30. Basic time
This is the standardised time for carrying out an element of
work at standard rating.
Example: An observer times an element as 30 centiminutes
(cm) and because it is performed more slowly than the
standard 100, he rates it as 95. Thus the basic time is 95%
of 30 or 28.5 basic cm. The formula is: (actual time x
rating)/100.
Allowances
Extra time is allowed for various conditions which obtain, the
main ones being relaxation allowance for:
a. recovery from the effort of carrying out specified work
under specified conditions (fatigue allowance)
b. attention to personal needs
c. adverse environmental conditions,
d. others concerned with machine operations
Frequency
The basic time is the time for a complete cycle to be performed
but as not all elements are repeated in every cycle their times
per average cycle must be pro rata. In the example which
follows, element 2 only occurs once every eight cycles so its
basic time is one eighth of the element time, per cycle. Similar
treatment for element 7 (one twelfth).
Standard time:
Basic time + allowances

31. RATING
Definition
Rating is a term used in work measurement to assess the
speed and effort put into a job of work by the worker. The
British Standard Institute definition of the verb “to rate” is:
To assess the worker‟s rate of working relative to the
observer‟s concept of the rate corresponding to standard
rating. The observer may take into account, separately
or in combination, one or more factors necessary to the
carrying out of the task, e.g. speed of movement, effort,
dexterity, consistency.
The concept
In order to determine the time necessary to carry out a task or
job it is not sufficient just to assess this by timing with a
chronometer a worker carrying out the task or even estimating
it. The worker might be working slowly or “extra quickly”.
These are vague terms but neither would be satisfactory for
the purposes of obtaining some sort of “standard time” for the
job. What is needed is a time the “average”, trained, qualified
worker would take to do the job.
This concept of the “average rate” at which the qualified worker
would work is a very subjective one - it is a matter of opinion.
In essence, we do not want a time for doing a job quickly or
slowly. We need a standard time for the job and not a time for
any individual worker.
The solution is to assess the time actually taken by a qualified
worker who knows the job and is properly trained to do it and
then adjust this actual time to what it would have been had

32. that worker been working at the standard rate. Thus, rating
eliminates the need to search for that mythical standard worker
and takes out of the equation the need for that worker to
adjust his/her pace to the standard rate of working, something
which is difficult to do.
So, to quote the BSI standard 3138 “Glossary of Terms used in
Management Services” Term number 22074, standard rating is
defined as
The average rate at which qualified workers will work, provided
they adhere to the specified method, and are motivated, suited
and accustomed to the task.
How is it done?
So, clearly, rating is highly subjective. To aid raters to conform
with the universally accepted concept of rating there are sets of
films/videos/CDs which demonstrate various jobs with their
rates and have tests for training purposes.
Capable observers must be trained in the art of rating, first
recognizing the standard rating and then, through practising,
assessing against this standard other levels of rates of working.
Rating scales have been developed. One of the original ones is
Charles Bedaux’s, known as the “60/80 scale”. Bedaux
considered that workers paid on a fixed daywork system
without any financial incentive would normally do 60 minutes
worth of work in an hour whereas one on a financial bonus
scheme would get the work done on average one third faster,
doing 80 minutes work in an hour (incentive rate). The rest of
this “60/80 scale” was pro-rata. So, for example, a worker
working twice as fast as this perceived “normal” 60 rating
would be assessed as working at 120 rating.
This Bedaux scale was later converted to decimal form
accepted by British Standard Institute which allocated a rating
of 75 BS in place of Bedaux 60 and 100 BS rating replacing

33. Bedaux’s 80 rating. The complete BS scale supercedes the
corresponding Bedaux scale pro rata.
Incentives:- financial reward system
Introduction
The concept of schemes for incentive payments is a very
controversial one. The first thing to make clear is that financial
incentives and motivation are diametrically opposed to each
other. Frederick Herzberg in particular would, in his time, be
aghast at the mention of the two concepts in the same breath.
But this is the subject of another Topic (see below).
In the Topic “Scientific Management” you will read about the
pioneers of this approach the management. The way to get
more work out of people was to give them some incentive
which could range from the negative “stick” method to the
positive “carrot” incentive. The “stick” drives people to work
more quickly because the must, while the “carrot” attracts
them to speed up to earn rewards. In a nutshell, better output
is achieved because people are made to work better while
psychological motivation produces better output because
people want to achieve. Both methods are largely effective and
successful but for different reasons.
In order for financial incentive schemes to be effective they
must be based on targets. Targets, usually, are in terms of
output in numerical form reling on the jobs being work
measured.
A typical scheme
A typical scheme is the piecework method in which workers are
paid “per unit produced”. The format of the system is chosen
(described later). A standard time per unit is set on the job
using a suitable choice of work measurement. The output is
linked to the (usually) variable wages. The proposal is put to

34. the workforce and unions if relevant for their discussion and
agreement.
There is a minimum safeguard for the worker, or basic pay
rate, usually set at a 50 BS performance. Workers are never
paid less than this amount. Above the 50 BS a bonus
proportional to the actual performance is paid. 100 BS level is
known as the “incentive” performance and 75 BS,is “normal”
performance
A basic scheme is as described above with basic wage is paid
up to an actual performance of 50 BS. Above this a bonus is
paid in direct proportion to the actual performance on a one-
for-one basic. In all cases the pay performance scale is geared
to actual currency of the country, pro rata.
There are many different forms of financial incentives. One of
the most basic schemes is the “50 + a half” which is similar to
the above but pay performance bonus is at a rate of only half
of the actual performance. The Figure below illustrates the 50
+ 1/2 scheme. For example, if the worker produces 90 actual
performance, he/she is paid the wage equivalent to a 70
performance i.e. half of the bonus part going to the worker
and half to the company.
Other variants include the Taylor differential piece-rate
scheme, which is similar to the above but has a step or “jump”
in the payment as an extra inducement to increase output.
Another group uses curved schemes, such as the Rowan
“hyperbolic” payment scheme and the Barth Variable Sharing
scheme.
An example of a „fixed‟ bonus scheme
In the 1960’s the Philips organization, tired of the
administration involved in payment-by-results, devised a
method of individual fixed bonuses in its Premium Payment
Plan (PPP). Basically, workers contracted with the company to

35. work at a certain rate on average for an equivalent fixed
bonus. Workers who defaulted on the contract were warned
that in order to maintain their individual bonuses they must
improve. Employees could work their way up to higher levels of
bonus through contracting to work at correspondingly higher
output levels as they became more experienced.