Work measurement and productivity are important concepts for evaluating labor performance and improving efficiency. Key aspects include:
1) Establishing work standards through techniques like time studies and work sampling to measure average worker performance.
2) Comparing individual, department, and plant performance to standards to evaluate efficiency and compensation.
3) Using work standards to estimate costs, schedule operations, and plan workforce needs.
4) Improving productivity over time through factors like capital investment, management practices, worker skills and education.
2. Work Measurement
Work Measurement: establish a
measurable work standard upon which
to evaluate, compare and improve labor
productivity.
Work (labor) Standard: Determine on
average-how many labor-hour are
required to produce one unit of desired
output for a well-trained worker under
normal operating conditions
3. Work Measurement Continue…
Level of standard:
* Operations/Department/Plant standards
* Element/Operations/Product standards
Use of work standard:
* Work and personnel planning
* Cost estimation for labor and machine
Techniques to set work standard:
* Time study
* Work sampling
* Elemental timing
* Predetermined motion-time study
4. Three Levels of Standards
Production and operations standards:
individuals job standards
Department standards: sum of
performance of the individual and team
in a department
Plant standards: quantity and labor
standards of the plant are the goals
management strives to meet
5. Evaluation Performance
Evaluating individual performance:
subsequent compensation
Evaluating department performance:
subsequent supervisor compensation
Evaluating process design, layout, and
work methods
Estimating expense and revenue streams
in equipment evaluation as alternative are
compared
Formulating standards costs
6. Predicting, Planning, and
Controlling Operations
Aggregate planning of work force levels
and production rates
Capacity planning and utilization
Scheduling operations: time sequencing
jobs
Cost estimating of products and
production lots
Planning types of labor skills necessary
and budgeting labor expenses
7. Work Measurement- Average
Worker
Determined by observing several
workers and estimating their average
performance
Sampling costs increase with number of
workers sampled: accuracy of estimate
increases as sample size increases
Must tradeoff sampling cost and
accuracy
8. How to Determine “Average Worker” Standard
?
Example from Distribution of 100 Workers Sample
Number of Performance in Units
Workers Sampled
Per Hour Mean
5 10-14 12 *5% =0.6
20 15-19 17 *20% =3.4
45 20-24 22 *45% =9.9
25 25-29 27 *25% =6.75
5 30-34 32 *5% =1.6
100 Total = 22.5
9. Work Measurement Time
Study
Normal time
Standards time=
(1-allowance)
Normal time= (average cycle time)* (rating factor)
Time recorded to perform an element
Average cycle time=
Number of cycles observed
Allowance fraction= fraction of time for personal
needs, unavoidable work delays, fatigue
10. Work Measurement- Work
Sampling
Purpose:
To estimate what proportion of a worker’s time
is devoted to work activities
Main Issues:
What level of statistical confidence is desired
in the results?
How many observations are necessary
Primary Applications:
Time standards: to obtain the standards time
for a task
11. Work Measurement- Work Sampling
Formulas
Proportion of
Time Employee Performance
Total Study Time * Observed Working * Rating Factor
Normal Time=
Number of Units Produced
Proportional of Number of observations in which working occurred
Time Employee =
Observed Working Number of Observations
x
Or
P=
n
12. Work Measurement- Work
Sampling Formulas
Example: N= 100 (observations)
X= 83 (sampled worker is working)
P= 83/100 = 0.83
Given: Total Study Time = 37.5
(hours)
Rating Factor = 1.05
Number of Units Produced = 100
Normal Time: = (37.5*0.83*1.05)/100
= 1/3 (hours)
= 20 (min)
13. Work Measurement- Elemental
Standards- Time Data
Elemental Standards- time data tables
contain performance time for operations
that are common to many applications
Used where numerous configuration of
product make detailed time study of each
configuration impractical
14. Work Measurement- Predetermined
Motion- Time Study
Description: used in the planning process
when the jobs are not currently being
performed
Can also be an alternative to observed
time studies
Basis in the historical information on basic
human movement and motion such as
reaching, gasping, lifting, etc.
Elemental times have been developed for
the basic human motion
Commonly industry specific
15. Measurement Problems
Quality may change while the quantity
of inputs and outputs remains
constant
External elements may cause an
increase or decrease in productivity
Precise units of measure may be
lacking
16. Productivity
Units produced
Productivity =
Input used
Measure of process improvement
Represents output relative to input
Only through productivity increases
can our standard of living improve
17. Productivity Calculation
Labour Productivity
Units produced
Productivity =
Labour-hours used
1,000
= = 4 units/labour-hour
250
One resource input single-factor productivity
19. Multi-Factor Productivity
Output
Productivity =
Labor + Material + Energy +
Capital + Miscellaneous
Also known as total factor productivity
Output and inputs are often expressed in
dollars
Multiple resource inputs multi-factor productivity
21. Productivity Variables
Labor - contributes about 10% of the
annual increase
Capital - contributes about 38% of the
annual increase
Management - contributes about 52%
of the annual increase
22. Key Variables for Improved
Labor Productivity
Basic education appropriate for the labor
force
Diet of the labor force
Social overhead that makes labor
available
Maintaining and enhancing skills in the
midst of rapidly changing technology and
knowledge
23. Service Productivity
Typically labor intensive
Frequently focused on unique individual
attributes or desires
Often an intellectual task performed by
professionals
Often difficult to mechanize
Often difficult to evaluate for quality