Training module on

Work Study & Productivity

What is Productivity ?

What is Productivity ?
a) Productivity is defined as ratio of Output to Input.

b) Labor Productivity

Labor Productivity examples ?

a) GDP of an economy in a country is $10 trillions and total labor hours invested during the year were 300 billion. So labor productivity is ration GDP output to Labor hours i.e. $10 trillions/300 Billion man-hours - $33 per Man-hour. Growth in this value can be interpreted as rising standards of living in a country.

b)

A company that processes fruits and vegetables is able to produce 400 cases of canned peaches in one half hour with four workers. What is the labor productivity?
Labor productivity = Quality Produced / Labors Hours = 400 cases (4 workers x 1/2 hours / workers) = 200 cases per labor hour.

Multifactor Productivity examples ?

c) A wrapping paper company produced 2,000 rolls of paper one day. Standard price is $ 1/roll. Labor cost was $ 160, material cost was $ 50, and overhead was $ 320. Determine the multifactor productivity. Multifactor productivity = Quality produced at standard price/(Labor cost + Material cost + Overhead) = 2,000 rolls x $ 1/ ($160+ $ 50 + $320) = 3.77 rolls output per dollars

Productivity Improvement Approaches ?

1. Increase output for the same given Input resources

2. Decrease of input resources for the same output.

Labor Productivity examples ?

a) A bottle packaging line with 30 filling count of tablets, running at 80 bottles per minute has pack style of 6 Bottles per tray and there is no shrink wrapping involved is able to pack 24,000 bottles per shift. By application of time & motion studies manpower along the line was reduced from 22 to 18 calculate productivity gain per shift Labor productivity - old system = Bottles Packed / Labor Hours = 24000 Bottles/ (22 Workers X 8 hours) = 136.36 Bottles per Man hour. Labor productivity - New system = Bottles Packed / Labor Hours = 24000 Bottles/ (18 Workers X 8 hours) = 166.67 Bottles per Man hour. Productivity Gain =(166.67-136.36)/136.36 = 22.22%

Labor Productivity examples ?

a) A bottle packaging line with 30 filling count of tablets, running at 80 bottles per minute has pack style of 6 Bottles per tray and there is no shrink wrapping involved is able to pack 24,000 bottles per shift. By application of time & motion studies along the packing line it is found that same manpower of 18 can handle line at 90 Bottles per minute. Calculate productivity gain Labor productivity - old system = Bottles Packed / Labor Hours = 80X300 = 24000 Bottles/ (18 Workers X 8 hours) = 166.67 Bottles per Man hour. Labor productivity - New system = Bottles Packed / Labor Hours = 90X300 = 27000 Bottles/ (18 Workers X 8 hours) = 187.5 Bottles per Man hour. Productivity Gain = (187.5-166.67)/166.67 = 12.49%
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Labor Productivity Improvement along secondary packaging in Strip Packing Line Case Study
1. Summary of study:

Product : Alendronate 70mg.

Batch Studied: JKJ0196A

Input Strips Speed: 105 Strips/Minute (Varying)

Assumption: Running Hours of Line: 7 Total number of persons Engaged: 24 Total number of Work Stations: 12

Area: Secondary Packing Detailed

Productivity Improvement Approaches ?

3. With small increase/alteration in input resources, higher amount of increase in output.

Productivity Improvement for higher increase in output with smaller increase in Input
d) Collins Little Company has a staff of 4, each working 8 hours per day (for a payroll cost of $ 640/day) and overhead expenses of $ 400 / day. Collins processes and closes on 8 titles each day. The company recently purchased a computerized title search system that will allow the processing of 14 titles per day. Although the staff, their works hours, and pay will be same, the overheads expenses are now $ 800 per day.

Labor productivity with the old system: = 8 titles per day/ 32 labor hours = 0.25 titles per hour Labor productivity with the new system: =14 titles per day/ 32 labor hours = 0.44 title per labor hours Multifactor productivity with the old system: =8 titles per day / (640 + 400) = 0.0077 titles per dollars Multifactor productivity with the new system: =14 titles per day / (640 + 800) = 0.0097 titles per dollars

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Factors Affecting Productivity

a) Beyond control of any employer

Productivity Improvement for higher increase in output with smaller increase in Input
d) A prime example of this is the 2011 flooding that occurred in Thailand. Because of the widespread flood damage throughout the country many computer companies have been forced to increase their prices on hard drives. Hard drives are a chief technology export from Thailand and American productivity in computer supply markets has suffered due to weather conditions occurring in a foreign country.Similarly, crop productivity suffered in the United States in 2011 in response to weather patterns. Heavy Midwest flooding followed by a period of drought caused many cash crops to suffer and produce lower than expected yields. This has had reverberations in other arenas of the economy because of the increased prices related to these crops.Ther

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Factors Affecting Productivity

The Task of Management

Management may alter either internal or external factors for
larger quantity, better quality or higher value products or services with the same input. Achieve better results by changing nature of inputs such as advanced technology, computers or by using alternative source of Raw material or energy

The Task of Management

Land & Buildings Materials Plants, Machines & Equipment's Energy Human Resources

Management
Obtains facts, Plans, Directs, Controls, Motivates In order to Produce

Products & Services

Work Study & Productivity

1. What Is Work Study

It is systematic examination of methods of carrying out activities so as to effectively utilize input resources and set up standards of performance for activities being carried out

Relationship between Work Study & Productivity

1. Work Study & Productivity:

Why work study is required ?

Work study approach ?

Techniques of Work study

1. Work study consists of following Two Major Techniques

1. Method Study: Systematic recording and critical examination of existing ways of doing things in order to make improvements

Techniques of Work study

2. Work measurement: Techniques developed to establish time required for qualified worker/person to carry out task at defined rate of working.

Relationship Method Study & Work measurement

Relationship Method Study & Work measurement

Work Study Basic Procedure

Work Study Basic Procedure

1. Select: The job or process to be studied.

2. Record: All facts and data about job or process.

3. Examine: Critical examination of all recorded facts.

4. Develop: The most economical method.

Work Study Basic Procedure

5. Evaluate: Quantity of work involved in improved method Standard time for it.

6. Define: The new method and Standard time.

7. Install: Training concern person & Standard Time

8. Maintain: The new standard practice by monitoring the results and comparing it with original targets.

Method Study Steps

1. Selecting The Work To Be Studied

a) Economical Consideration: Obvious choices under this consideration are as below

i.

Key profit generating, costly operations or processes with largest scrap or waste rates.

ii.

Bottlenecks holding up operations downstream/ upstream or operations with high cycle times.

1. Selecting The Work To Be Studied

a) Economical Consideration:
i. Repetitive activities and activities with large amount of labor, longer run times

ii. Material handling activities as it contributes to more than 25% of manufacturing cost iii. Tasks with highest percentage of wage cost One of the easiest technique is to apply Pareto analysis, to identify key operations or key products.

1. Selecting The Work To Be Studied

b) Technical Consideration:
i. Management may want to acquire advanced technologies in its operations.

ii. Before actual investment in newer technologies method study should be carried out to point out actual need of the enterprise for technology investment.

iii. Method study acts as scouting operation before introduction of more advanced technology.

1. Selecting The Work To Be Studied

c) Human Consideration:
i. Operations causing dissatisfaction, causing excessive fatigue, operations with serious safety hazards, monotonous activities.

ii. Activities leading to unrest or bad feeling to the workers, then it should not be considered.

2. Record, Examine & Develop

a) Recording The Facts:
i. To record all the facts related to existing Method. The most commonly used recording techniques are Charts & Diagrams

Thank you
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