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, Inc.

S10 4

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, Inc. S10 5

Meaningful Standards Help Determine

1. 2. 3. 4. 5. 6. 7.
2008 Prentice Hall, Inc.

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

Labor Standards
May be set in four ways:
1. Historical experience 2. Time studies 3. Predetermined time standards

4. Work sampling

2008 Prentice Hall, Inc.

S10 7

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, Inc. S10 8

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

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

Time Studies
5. Compute average observed time
Average observed time Sum of the times recorded to perform each element = Number of observations

6. Determine performance rating and normal time

Normal time =
2008 Prentice Hall, Inc.

Average observed time

Performance x rating factor

S10 11

Time Studies
7. Add the normal times for each element to develop the total normal time for the task 8. Compute the standard time
Total normal time Standard time = 1 - Allowance factor

2008 Prentice Hall, Inc.

S10 12

Rest Allowances
Personal time allowance
4% - 7% of total time for use of restroom, water fountain, etc.

Delay allowance
Based upon actual delays that occur

Fatigue allowance
Based on our knowledge of human energy expenditure
2008 Prentice Hall, Inc. S10 13

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

5 4 2

2
7

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

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

Rest Allowances
(H) Mental strain: (i) Complex or wide span of attention... (ii) Very complex.. (I) Tediousness: (i) Tedious.. (ii) Very tedious.
Figure S10.1
2008 Prentice Hall, Inc. S10 17

4 8 2 5

Time Study Example S1

Average observed time = 4.0 minutes Worker rating = 85% Allowance factor = 13%
Normal time = (Average observed time) x (Rating factor) = (4.0)(.85) = 3.4 minutes 3.4 Normal time 3.4 Standard time = = = 1 .13 1 - Allowance factor .87 = 3.9 minutes
2008 Prentice Hall, Inc. S10 18

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, stamp, seal, and sort envelopes

5*

110%

1. Delete unusual or nonrecurring observations (marked with *) 2. Compute average times for each element Average time for A = (8 + 10 + 9 + 11)/4 = 9.5 minutes Average time for B = (2 + 3 + 2 + 1 + 3)/5 = 2.2 minutes Average time for C = (2 + 1 + 2 + 1)/4 = 1.5 minutes
2008 Prentice Hall, Inc. S10 19

Time Study Example S2

3. Compute the normal time for each element Normal time = (Average observed time) x (Rating) Normal time for A = (9.5)(1.2) = 11.4 minutes Normal time for B = (2.2)(1.05) = 2.31 minutes Normal time for C = (1.5)(1.10) = 1.65 minutes 4. Add the normal times to find the total normal time

Total normal time = 11.40 + 2.31 + 1.65 = 15.36 minutes

2008 Prentice Hall, Inc.

S10 20

Time Study Example S2

5. Compute the standard time for the job Total normal time Standard time = 1 - Allowance factor

15.36 = = 18.07 minutes 1 - .15

2008 Prentice Hall, Inc.

S10 21

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, Inc.

S10 22

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, Inc.

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 =90.0 accuracy level desired in percent of the 1.65

z
s x n
2008 Prentice Hall, Inc.

job element expressed as a decimal 95.0 1.96 = number of standard deviations required 95.45 for the desired level2.00 of confidence 99.0 2.58 = standard deviation of the initial sample 99.73 3.00 = mean of the initial sample Table S10.1 = required sample size
S10 24

Time Study Example S3

Desired accuracy with 5% Confidence level = 95% Sample standard deviation = 1.0 Sample mean = 3.00 h = .05 x = 3.00 s = 1.0 z = 1.96 (from Table S10.1 or Appendix I)
zs n= hx
2

1.96 x 1.0 n= .05 x 3

2008 Prentice Hall, Inc.

= 170.74 171
S10 25

Time Study Example S3

Variations
If desired accuracy h is expressed as an absolute amount, substitute e for hx, where e is the absolute amount of acceptable error 2 zs n= e When the standard deviation s is not provided, it must be computed

s=
2008 Prentice Hall, Inc.

(xi - x)2
n-1

(Each sample observation - x)2

Number in sample - 1
S10 26

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

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, Inc. S10 28

MTM Table

Figure S10.2
2008 Prentice Hall, Inc. S10 29

MTM Example
Weight - less than 2 pounds Conditions of GET - easy Place accuracy - approximate Distance range - 8 to 20 inches
Element Description Get tube from rack Get stopper, 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 .0006 x 238 = Total standard minutes = .14

238

Table S10.2
2008 Prentice Hall, Inc. S10 30

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, reassign duties, estimate costs, and set delay allowances
2008 Prentice Hall, Inc. S10 31

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, Inc. S10 32

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, Inc.

S10 33

Work Sampling
1. Take a preliminary sample to obtain estimates of parameter values
2. Compute the sample size required

3. Prepare a schedule for random observations at appropriate times

4. Observe and record worker activities 5. Determine how workers spend their time
2008 Prentice Hall, Inc. S10 34

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.

Work Sampling Example

Wants employees idle 25% of the time Sample should be accurate within 3% Wants to have 95.45% confidence in the results z2 p(1 - p) n= h2
where n z p h = = = = required sample size 2 for a 95.45% confidence level estimate of idle proportion = 25% = .25 acceptable error of 3% = .03

(2)2 (.25)(.75) n= = 833 observations 2 (.03)

2008 Prentice Hall, Inc. S10 36

Work Sampling Example

No. of Observations 485 126 62 23 137 833 Idle Personal time Discussions with supervisor Filing, meeting, and computer data entry Activity On the phone or meeting with a welfare client

All but idle and personal time are work related. Percentage idle time = (126 + 62)/833 = 22.6%. Since this is less than the target value of 25%, the workload needs to be adjusted.
2008 Prentice Hall, Inc. S10 37

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 S10.3
2008 Prentice Hall, Inc.

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 S10.3
2008 Prentice Hall, Inc. S10 39