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Work Measurement and Productivity

Presented by:MD. NAZIR ANSARIANSHUL GARG1Work MeasurementWork 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 conditionsWork Measurement ContinueLevel of standard: * Operations/Department/Plant standards * Element/Operations/Product standardsUse of work standard: * Work and personnel planning * Cost estimation for labor and machineTechniques to set work standard: * Time study * Work sampling * Elemental timing * Predetermined motion-time study Three Levels of StandardsProduction and operations standards: individuals job standardsDepartment standards: sum of performance of the individual and team in a departmentPlant standards: quantity and labor standards of the plant are the goals management strives to meet

Evaluation PerformanceEvaluating individual performance: subsequent compensationEvaluating department performance: subsequent supervisor compensationEvaluating process design, layout, and work methodsEstimating expense and revenue streams in equipment evaluation as alternative are comparedFormulating standards costsPredicting, Planning, and Controlling OperationsAggregate planning of work force levels and production ratesCapacity planning and utilizationScheduling operations: time sequencing jobsCost estimating of products and production lotsPlanning types of labor skills necessary and budgeting labor expensesWork Measurement- Average WorkerDetermined by observing several workers and estimating their average performanceSampling costs increase with number of workers sampled: accuracy of estimate increases as sample size increasesMust tradeoff sampling cost and accuracyHow to Determine Average Worker Standard ? Example from Distribution of 100 Workers SampleNumber of Workers SampledPerformance in UnitsPer HourMean510-1412*5%=0.62015-1917*20%=3.44520-2422*45%=9.92525-2927*25%=6.75530-3432*5%=1.6100Total =22.5Work Measurement Time StudyStandards time=

Normal time= (average cycle time)* (rating factor)

Average cycle time=

Allowance fraction= fraction of time for personal needs, unavoidable work delays, fatigueNormal time(1-allowance)Time recorded to perform an elementNumber of cycles observedWork Measurement- Work SamplingPurpose: To estimate what proportion of a workers time is devoted to work activitiesMain Issues: What level of statistical confidence is desired in the results?How many observations are necessaryPrimary Applications:Time standards: to obtain the standards time for a task

Work Measurement- Work Sampling FormulasNormal Time= Total Study Time *Proportion of Time EmployeeObserved Working *PerformanceRating FactorNumber of Units ProducedProportional ofTime EmployeeObserved Working=Number of observations in which working occurredNumber of ObservationsOrP =xnWork Measurement- Work Sampling FormulasExample:N= 100 (observations)X= 83 (sampled worker is working)P= 83/100 = 0.83

Given:Total Study Time = 37.5 (hours)Rating Factor = 1.05Number of Units Produced = 100

Normal Time:= (37.5*0.83*1.05)/100 = 1/3 (hours) = 20 (min)

Work Measurement- Elemental Standards- Time DataElemental Standards- time data tables contain performance time for operations that are common to many applicationsUsed where numerous configuration of product make detailed time study of each configuration impracticalWork Measurement- Predetermined Motion- Time StudyDescription: used in the planning process when the jobs are not currently being performedCan also be an alternative to observed time studiesBasis 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 motionCommonly industry specificMeasurement ProblemsQuality may change while the quantity of inputs and outputs remains constantExternal elements may cause an increase or decrease in productivityPrecise units of measure may be lacking15Measure of process improvementRepresents output relative to inputOnly through productivity increases can our standard of living improveProductivity =Units producedInput usedProductivity16Productivity =Units producedLabour-hours used= = 4 units/labour-hour1,000250Labour ProductivityOne resource input single-factor productivityProductivity Calculation17Example

18Multi-Factor Productivity OutputLabor + Material + Energy + Capital + MiscellaneousProductivity =Also known as total factor productivityOutput and inputs are often expressed in dollarsMultiple resource inputs multi-factor productivity19Example

20Productivity VariablesLabor - contributes about 10% of the annual increaseCapital - contributes about 38% of the annual increaseManagement - contributes about 52% of the annual increase21Key Variables for Improved Labor ProductivityBasic education appropriate for the labor forceDiet of the labor forceSocial overhead that makes labor availableMaintaining and enhancing skills in the midst of rapidly changing technology and knowledge22Service ProductivityTypically labor intensiveFrequently focused on unique individual attributes or desiresOften an intellectual task performed by professionalsOften difficult to mechanizeOften difficult to evaluate for quality23Conclusion