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A

PROJECT REPORT
ON

TIME & MOTION


STUDY
OF

SIEMENS INDUSTRIES
PROJECT GUIDE: TEJAS PAREKH
(MBAGJ0042)
PAREPARED BY: MAULIK PARMAR

MBA 4TH SEM (OPRATION MANAGEMENT)


ROLL NO.1402008969
SIKKIM MANIPAL UNIVERSITY
2015-2016

CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN

This is to certify that MAULIK PARMAR (Roll No.1402008969) a


student of M.B.A. (OPRATION MANAGEMENT) of Sikkim Manipal
University, Sikkim, has done his project work on the subject name
TIME AND MOTION STUDY
He has done project during the period 1-1-2016 to 28-02-2016 under
the guidance of Mr. DEEPAK AMBANI, Shift In charge in SIEMENS
INDUSTRIES , VADODARA (GUJARAT).
During the period of his project work with us we have found his
conduct and character are good.
We wish him good luck for and all the best in his career.

For SIEMENS INDUSTRIES.


(Mr. NEERAV GARG)
Assi. MANAGER PRODUCTION.

DECLARATION
I hereby declare that the project entitle TIME A& MOTION STUDY
Submitted in partial fulfillment of the requirements for award of the
degree of MBA at BARODA Institute of Technology, affiliated to Sikkim
Manipal University, Sikkim, is an authentic work and has not been
submitted

to

any

other

University/Institute

for

award

degree/diploma.

MAULIK PARMAR
(140202869)
MBA, BARODA INSTITUTE OF TECHNOLOGY
Sikkim Manipal University
VADODARA, GUJARAT

ACKNOWLEDGEMENT

of

any

Firstly, I would like to express our immense gratitude towards


our institution BARODA Institute of Technology, which created a
great platform to attain profound technical and management skills
in the field of MBA, thereby fulfilling our most cherished goal.
I would thank all the Production department of specially Mr.
NEERAV GARG (Asst Manager PRODUCTION DEPT.) and Mr. DEEPAK
AMBANI, Shift In charge in the PRODUCTION department for guiding
me and helping me in successful completion of the project.
I am very much thankful to our professor Mr. Tejas Parekh
(Internal Guide) for extending his cooperation in doing this project.
I am also thankful to our project coordinator Mr. Vaibhav
pradhan and Mrs. Kirti Pradhan for extending his cooperation in
completion of Project.
I convey my thanks to my beloved family and my faculty who
helped me directly or indirectly in bringing this project successfully.
MAULIK PARMAR
(1402008969)

INDEX
SR. NO.

PARTICULER

PAGE NO.

DECLARATION

ACKNOWLEDGEMENT

INTRODUCTION TO THE TOPIC

REVIEW OF LITERATURE

13

COMPOSITION AND OBSERVATION

28

COMPANY PROFILE

30

COMPANYS VISION, MISSION AND VALUE

34

DIRECTORS REPORT

36

MANAGEMENTS DISCUSSION

39

10

AUDITORS REPORT

55

11

EBIT EPS DATA ANALYSIS

57

12

RATIO ANALYSIS

66

13

FINDINGS

95

14

FINDINGS

96

15

RECOMMENDATIONS

97

16

SUGGESTIONS

98

17

BIBLIOGRAPHY

99

18

FINANCIAL HIGHLIGHTS

100

INTRODUCTION TO
THE TOPIC

Introduction

Productivity & Labour Productivity


Productivity is a measure of output from a production
process, per unit of input. For example, labor
productivity is typically measured as a ratio of output
per labor-hour, an input. Productivity may be conceived
of as a metric of the technical or engineering efficiency
of production. As such, the emphasis is on quantitative
metrics of input, and sometimes output. Productivity is
distinct from metrics of allocative efficiency, which take
into account both the monetary value (price) of what is
produced and the cost of inputs used, and also distinct
from metrics of profitability, which address the
difference between the revenues obtained from output
and the expense associated with consumption of inputs.
Labour productivity is the ratio of (the real value of)
output to the input of labour. Where possible, hours
worked, rather than the numbers of employees, is used
as the measure of labour input. With an increase in
part-time employment, hours worked provides the more
accurate measure of labour input. Labour productivity
should be interpreted very carefully if used as a
measure of efficiency. In particular, it reflects more than
just the efficiency or productivity of workers. Labour
productivity is the ratio of output to labour input; and
output is influenced by many factors that are outside of
workers' influence, including the nature and amount of
capital equipment that is available, the introduction of
new technologies, and management practices.

Meaning of Labours Productivity:Labour productivity is generally speaking held to be the


same as the "average product of labor" (average output
per worker or per worker-hour, an output which could
be measured in physical terms or in price terms). It is
not the same as the marginal product of labor, which
refers to the increase in output that result from a
corresponding increase in labor input. The qualitative
aspects of labor productivity such as creativity,
innovation, teamwork, improved quality of work and the
effects on other areas in a company are more difficult to
measure.

Objective of Productivity
To bring technological change
Efficiency
Cost Saving
Improving process
Living standard

Methods for improving Productivity


Through operations and management
Improve technology and facilities
Increase training
Increase research and development Spending
Increase employee participation
Adopt automated and robotic systems
Improve reward systems
Enhance speed
Enhance flexibility

Need For Studying Workers


Productivity

1. For growth of the company.


2. Make a balance between employee and workers.
3. To earn profits.
4. Labour welfare
5. Enhance productivity
6. Personnel development

Elton Mayos Hawthorn experiments


Elton Mayos team conducted a number of experiments.
These experiments are often referred to as the
Hawthorne experiments or Hawthorne studies as they
took place at The Hawthorne Works of the Western
Electric Company in Chicago.
Over the course of experiment, Mayos team altered the
workers working conditions and then monitored how
the working conditions affected the workers morale and
productivity. The changes in working conditions
included changes in working hours, rest brakes,
lighting, humidity, and temperature. The changes were
explained to the workers prior to implementation.
At the end of the experiment, the workers working
conditions, reverted back to the conditions before the
experiment began. Unexpectedly the workers morale
and productivity rose to levels higher than before and
during the experiments.
The combination of results during and after the
experiment (i.e the increase in the workers productivity
when they were returned to their original working
conditions) led Mayo to conclude that workers were
motivated by psychological conditions more than
physical working condition. He also concluded that
workers were motivated by more than self interest and
instead the following applied:

There is an unwritten understanding between the


worker and employer regarding what is expected
from them; Mayo called this the psychological
contract.

A workers motivation can be increased by


showing an interest in them. Mayo classified
studying the workers (through the experiments) as
showing an interest in the workers.

Work is a group activity, team work can increase a


workers motivation as it allows people to form
strong working relationships and increases trust
between the workers. Work groups are created
formally by the employer but also occur informally.
Both informal and formal groups should be used to
increase productivity as informal groups influence
the workers habits and attitudes.

Workers are motivated by the social aspect of


work, as demonstrated by the female workers
socializing during and outside work and the
subsequent increase in motivation.

Workers are motivated by recognition, security and


a sense of belonging.

The communication
between
workers and
management influences workers morale and
productivity. Workers are motivated through a
good working relationship with management.

Fredrick.W Taylors Time & Motion


Study
Time and motion study analysis of the operations
required to produce a manufactured article in a factory,
with the aim of increasing efficiency. Each operation is
studied minutely and analyzed in order to eliminate
unnecessary motions and thus reduce production time
and raise output, which increases productivity . The first
effort at time study was made by F. W. Taylor in the
1880s. Early in the 20th cent., Frank and Lillian Gilbreth
developed a more systematic and sophisticated method
of time and motion study for industry, taking into
account the limits of human physical and mental
capacity and the importance of a good physical
environment.

Title Justification
The topic study of workers productivity shows the
productivity of workers during their work time. The topic
suggest about the per unit wages of workers means it
defines their idle hour and working hours. Time and
motion study is one of the methods for study the
productivity of workers in industry. This project helps
workers as well as employer to increase productivity in
their organizations. Hawthorne experiments also give
methods to study productivity by its experiments. The
study of workers productivity mainly depends upon the
output which he provides to the organization by his
efforts.

Objective of The Report


To know the area, that helps in enhancement of
productivity.
To familiar with the fundamentals of productivity.
Understand the Time
Hawthorne experiment.

&

Motion

Study

and

To understand the impact of workers productivity


in Siemens Industries.
To learn the ground reality of labours productivity
in Siemens Industries.

Scope of The Report


1. Enhancement of productivity of Siemens
production department workers.
2. Establishment of new ways to increase workers
productivity.
3. Profit & wealth maximization.
4. Quality improvement process of workers.
5. Performance Appraisal.

COMPAN
Y
PROFILE

ABOUT COMPANY
Indias progress as a nation involves finding sustainable
solutions to challenges such as ever-growing demand
for energy, higher industrial productivity, modern urban
infrastructure and high-quality healthcare.

Siemens, as an integrated technology provider, has a


wide range of future-oriented solutions to meet these
challenges and be a partner in Indias growth.

Leveraging the 160-year-long heritage of technology


leadership, Siemens offers a solution portfolio
consisting of industry-specific applications to optimize
an the performance of enterprises across the entire
value chain, sustainable solutions for energy
generation, transmission, distribution and consumption,
value-added services and consulting.

Siemens in India is a leading powerhouse in electronics


and electrical engineering with a business volume
aggregating about Rs. 12,000 crore. Siemens Ltd., in
which Siemens AG (Germany) holds 75% of the capital,
is the flagship listed company of the Siemens group in
India. It is the only Siemens company in the world other
than parent Siemens AG and Siemens Inc. in America
that is listed on the stock exchanges (NSE: SIEMENS;
BSE: SIEMENS).

It has a nation-wide sales and service network, 21


manufacturing plants and employs about 18,000
people.

Siemens in India focuses on sustainable growth,


innovation and environmental solutions. Along with
leveraging its strong presence in the high-end
technology segment, Siemens is also building a
portfolio of innovative, simple-to-use, maintenancefriendly, affordable, reliable and timely-to-market
solutions customized for India.

With over 53,000 patents filed globally and over 27,800


researchers and developers operating in the fields of
research and development, Siemens aims to address
the impact of the megatrends that is shaping the world:
globalization, urbanization, climate change and
demographic change. Siemens has been a technology
partner to some of the most developed cities in the
world.

The history of Siemens in India dates back to 1867,


when Werner von Siemens personally supervised the
laying of the first telegraph line between London and
Calcutta. The first company office was founded in 1922,
and its first assembly plant began operations in 1956.

Siemens
Sheet
Employees

Fact

19,000

Revenue (FY 2011) Rs 127,080 million


Group companies

12

Existing factories

22

Sales offices

56

Centers of competence
R&D centers

11

SMART products

31

Siemens group companies


in India
1. Siemens Ltd.
2. Siemens Financial Services Pvt. Ltd.
3. Siemens Technologies & Services Pvt. Ltd.
4. eMeter India Pvt Ltd.
5. Siemens Hearing Instruments Pvt. Ltd.
6. PETNET Radiopharmaceutical Solutions Pvt. Ltd.
7. Powerplant Performance Improvement Ltd.
8. Siemens Industry Software Pvt. Ltd.
9. Osram India Pvt. Ltd.
10 Osram Automotive Lamps Pvt. Ltd.
11. Siemens Convergence Creators Pvt. Ltd.
12. Siemens Nixdorf India Pvt. Ltd.

SIEMENS in India
Siemens heritage in India dates right back to 1867
when it began laying the worlds first undersea cable
from London to Kolkata.

Siemens set up a branch in India as early as 1922, in


Mumbai and Kolkata. Though the companys assets
were confiscated during World War II as enemy property
forcing it to shut operations, Siemens re-entered India
after the war. It started operations as the Siemens
Division of Protos Engineering", a local contracting
company. Siemens was engaged in sales and service of
our own brand of switchgear and switchboards. Its first
workshop was located under the bridge of, what is
today, the Mahalaxmi Railway Station in Mumbai.

In 1957, Siemens was incorporated as a company under


the Indian Companies Act as Siemens Engineering &
Manufacturing Co. of India Pvt. Ltd. In 1961, Siemens
became a public limited company with restricted
external shareholding and was listed in the Bombay
Stock Exchange a decade later.

Timeline

1867
Laying of the first trans-continental Indo-European
telegraph line between London and Kolkata, personally
supervised by Siemens founder Werner von Siemens.

1922
Siemens India founded with headquarters in Kolkata.

1956
Sets up assembly and
Mahalaxmi Bridge, Mumbai.

repair

workshop

under

1957
Sets up a full-fledged manufacturing unit at Worli,
Mumbai, for switchboards. Incorporated as Siemens
Engineering and Manufacturing Company of India
Private Limited

1959
Healthcare equipment manufacturing commences at
Worli, Mumbai.

1960
Switchboard production at Kolkata (later shifted to
Andheri in 1963)

1962
Commences railway signaling equipment at Worli,
Mumbai.

1964
New complex at Kalwa founded for switchboard,
switchgear and motor factories (expanded in 1973-75)

1966
Manufacture of motors commences at Kalwa.

1967

Renamed from Siemens Engineering & Manufacturing


Co. of India Ltd. to Siemens India Ltd. (it was again
renamed as Siemens Ltd. in 1987)

1971
Lists on the stock exchanges.

1977
Manufacture of industrial
commences at Worli.

electronics

equipment

1980
Manufacturing of switchboards at Joka

1981
Assembly of switchboards starts at Nashik.

1987
Modern
Nashik.

industrial

electronics

production

starts

at

1991
New switchgear
Aurangabad.

1995

(low-voltage)

factory

set

up

at

Assembly of healthcare equipment starts at Goa.

1994
Sets up facilities for manufacture of optical fiber cable
and solar photovoltaic systems at Aurangabad.

1998
High-voltage
switchgear
production
starts
at
Aurangabad. Siemens Hearing Instruments Pvt. Ltd
formed.

2004
Corporate Technology Center, a hub for technology R&D
for Siemens worldwide, set up in Bangalore

2005
Small turbines production starts at Vadodara.

2006
50th year of manufacturing in India

2009
Produces first 145kV gas insulated switchgear (GIS)
from
the
recently-inaugurated
GIS
factory
at
Aurangabad. Starts gas-insulated switchgear unit in
Aurangabad. Merges Siemens Building Technologies
with itself.

2011
Rolls out worlds first 1200 kV SF6 circuit breaker from
Aurangabad factory. Crosses Rs 100 billion in revenues.
Announces amalgamation of Siemens VAI Metals
Technologies Pvt. Ltd. and Morgan Construction
Company Pvt. Ltd. Merges Siemens Healthcare
Diagnostics with itself.

2012
Twin-factories in Goa for energy automation and
medium voltage. Announces amalgamation of Siemens
Power Engineering Pvt. Ltd.

Businesses of
company
Electrification, automation and digitalization are the
long-term growth fields of Siemens. In order to take full
advantage of the market potential in these fields, our
businesses are bundled into nine divisions and
healthcare as a separately managed business.

Power and Gas


The Power and Gas Division is the trusted partner for
world-class products and solutions. We help our
customers worldwide to successfully operate fossil
power plants and to meet their specific economic and
ecological challenges in their market environment.

The Power and Gas Division offers a broad spectrum of


products and solutions for environmentally-compatible
and resource-saving power generation, using fossil or
renewable fuels for efficient energy production and the
reliable transport of oil and gas. Customers are utilities,
independent
power
producers,
engineering,

procurement, and construction (EPCs) companies and


industrial customers e.g. the oil and gas industry.

Our portfolio is perfectly matched to the challenges of a


dynamic market and includes the following:

Gas turbines with capacities ranging from five to 400


MW. Our gas turbines offer high efficiency, reliability,
and environmental sustainability, qualities that in turn
deliver low lifecycle costs and make power plants highly
profitable.
Steam turbines in the performance range from 45 kW
to 1,900 MW with a long tradition in manufacturing
process and as ongoing development.
Generators in the power range from 25 to 2,235 MVA.
Our expertise is based on more than 100 years of
experience in the development and production of
generators on an installed fleet of more than 3,500
machines.

Mobility
Efficient and integrated transportation of people and
goods by rail and road all products, solutions and
services regarding mobility are handled by the Mobility
Division.

What we do

The demand for mobility is growing all over the world.


Transporting people and goods to all corners of the

earth presents challenges for the infrastructure of


national economies. This applies, in particular, to the
transport and logistics facilities of cities: Will cities be
able to solve the problems caused by increasing road
traffic? Can public transportation help them avoid total
gridlock? How can railway operators increase the
efficiency and safety of their systems? How can rail and
road traffic be integrated? How can logistics supply
chains be further optimised as freight volumes continue
to increase steadily?

The Mobility Division provides answers to all of these


questions with its comprehensive portfolio; because
modern, interconnected and IT-based mobility is the
core competency of its five business units: Mobility
Management, Turnkey Projects & Electrification,
Mainline Transport, Urban Transport and Customer
Services. They have the know-how to make road traffic
flow more smoothly and quickly, make trains more
environmentally friendly and efficient, make train
schedules and freight shipments more reliable. We work
with our customers to develop optimal solutions to help
overcome their challenges.

The portfolio of the Mobility Division includes

the full range of vehicles for rail traffic: Regional, as


well as intercity and high speed trains, metro cars,
streetcars and light rail, passenger coaches, driverless
vehicles and locomotives
Signal and control technology for rail-based
passenger and freight traffic
Electrification solutions for rail and road traffic

Maintenance
infrastructure

and

service

of

vehicles

and

Road traffic control and information systems, parking


space management as well as electronic payment and
toll systems for urban and interurban traffic
Consulting, planning, financing, construction and
operation of turnkey mobility systems
Integrated mobility solutions for intermodal
networking of different traffic systems

Our compressor portfolio offers long-term efficiency,


availability, and reliability. Our compressors fulfill
industry-specific customer requirements in the oil and
gas segment, onshore gas production, or gas transport
through pipelines as well as in industrial applications
including air separation, etc.
Our integrated power plant solutions offer concepts
for gas- fired plants at highest quality from extended
power train to full turnkey power plants.
Our Power & Process Automation family completes
the Divisions portfolio with comprehensive solutions for
power plant I&C, electrical systems, and IT solutions.

Wind Power and Renewables


The Wind Power and Renewables Division is a leading
supplier of reliable, environmentally-friendly and costefficient renewable energy solutions. Driving down the
cost of wind power is our key target as we strive to
make renewable energy fully competitive with
conventional energy sources.

What we do

Wind Power

Providing highly reliable and cost-efficient wind


turbines, Siemens Wind Power offers solutions to meet
both business and environmental needs. With over
25,000 megawatts of wind power installed, our wind
power solutions deliver clean, renewable energy from
offshore and onshore installations around the world.

Our platform strategy for onshore and offshore wind


power plants is fundamental to bringing down the costs
of wind power. With innovations in blade design and
generator technology, we boost efficiency. At the same
time, systematic modularization allows us to streamline
the entire manufacturing and installation process.

In offshore wind power, Siemens is the most


experienced company within the industry. With the
creation of the worlds first offshore wind power plant in
1991 in Denmark, Siemens established the industry.
Recent years industrialization have seen Siemens set
and break the records for the worlds largest offshore
wind power plants, presently held by the 630 MW
London Array project. It features 175 Siemens 3.6
megawatt wind turbines.

Siemens occupies a leading position within onshore


wind power, having been awarded the worlds largest
single onshore order to date: a 1,050 MW order from
MidAmerican Energy in the USA for a series of onshore
wind power plants in Iowa.

Hydro and Ocean

With an expertise in hydropower for more than 100


years Siemens provides comprehensive solutions for its
customers. We have a proven excellence in the
implementation
of
turnkey
projects
for
small
hydropower plants built on integrated products,

solutions and services across the entire Power Matrix. In


2008, the Siemens-owned company Marine Current
Turbines (MCT) installed SeaGen, the world's first
commercial tidal current power plant. Siemens is one of
the leading companies in the ocean power market.

Energy Management
The Energy Management Division is one of the leading
global suppliers of products, systems, solutions, and
services for the economical, reliable, and intelligent
transmission and distribution of electrical power.

What we do

As the trusted partner for the development and


extension of an efficient and reliable power
infrastructure, the Energy Management Division
provides utility companies and industries with the
portfolio that meets their needs. This includes facilities
and systems for the low-voltage and distribution power
grid level, smart grid and energy automation solutions,
power supply for industrial plants, and high-voltage
transmission systems.

The Division develops innovative solutions which have


the potential to cope with the new challenges our
energy systems worldwide are facing. This includes a
growing range such as the efficient transmission of bulk
volumes of green power over long distances, enabling
dedicated power exchange between power grids,
connecting micro grids with the main grids.

A further challenge is to maximize the intelligence we


have to put into our distribution power grid. Siemens
offers an open and flexible architecture of solutions and
services with the industrys most comprehensive
energy management portfolio: The Siemens Smart Grid
Suite. The suite enables a multitude of customized
solutions for smarter infrastructure grids and introduces
unforeseen opportunities to further stabilize systems,
develop new business models and optimize energy
trade.

The solution concept Totally Integrated Power (TIP) for


electrification and especially power transmission and
distribution completes the Smart Grid Suite. TIP is
based on our comprehensive range of products,
systems, and solutions for low, medium and high
voltage, rounded out by our support throughout the
entire lifecycle from planning with our own software
tools to installation, operation, and services.

Power Generation Services


With a broad spectrum of innovative products and
services, we are one of the leading service partners for
ensuring high reliability and optimal performance of

rotating power equipment within the utility, oil & gas,


and industrial processing industries worldwide.

What we do

Thanks to our extensive service network around the


world, we can quickly and comprehensively offer expert
factory or field service support, maintenance, repairs,
replacements, modernizations and upgrades of
components, such as gas, steam and wind turbines as
well as generators, in large-scale and industrial power
plants, and compressors for the oil and gas industry.

In addition to factory- and field-based services, Siemens


also has extensive experience with remote monitoring
and diagnostics. Our experts can detect even the
smallest indicator that something may not be operating
normally and follow up by recommending proactive
solutions
before
the
issue
becomes
serious.
Furthermore, Siemens can analyze the data collected to
draw trends on individual turbines as well as the overall
fleet. The results contribute to enhanced turbine
performance over the long term, thereby lowering the
cost of energy.

We also continually look for ways to increase the


performance of our customers' operating plants in a
market being driven primarily by an aging power plant
fleet and the rising demand for increasing the efficiency
of existing plants in order to combat climate change,
conserve natural resources and meet the ever-growing
need of an expanding global population. We will do this
through
life
extensions
and
other
advanced

technologies to increase the efficiency and capacity of


existing power plants, enabling them to generate
substantially more electricity with the same amount of
fuel. Such solutions pay off economically and
environmentally.

Building Technologies
Building Technologies is the world market leader for
safe, energy efficient and environmentally friendly
buildings and infrastructure. As a technology partner,
consultant, service provider, system integrator and
product supplier, Building Technologies offers fire
safety,
security,
building
automation,
heating,
ventilation and air conditioning (HVAC) as well as
energy management products and services.

What we do

High building performance levels combined with low


operating costs allow our customers to optimize the
energy costs and reliability of their buildings. We help
them achieve these goals with energy management
services as well as integrated and automated building
solutions which are tailored to specific customer
requirements. Building automation products and
systems for controlling heating, ventilation and air
conditioning applications as well as lighting and shading
are used both in our own solutions and sold through
indirect distribution channels.

The broad range of integrated fire safety and IT-based


security solutions offered by the Building Technologies

Division along with the associated services ensures


business continuity, protects investments and reduces
our customer's risk exposure over the long term. In the
fire safety segment, Building Technologies offers stateof-the-art products and systems for fire and gas
detection, automatic extinguishing and for alarm and
danger management systems; these are sold through a
range of distribution channels.

Key areas of the Division include industry-specific


solutions for data centers, hospitals, life science
companies, airports, hotels and energy suppliers;
commercial buildings for international companies; as
well as infrastructure in cities. Building Technologies
offers advanced solutions for end-user applications to
ensure a maximum level of sustainability, energy
efficiency and safety.

Digital Factory
The Digital Factory (DF) Division offers a comprehensive
portfolio of seamlessly integrated hardware, software
and technology-based services in order to support
manufacturing companies worldwide in enhancing the
flexibility and efficiency of their manufacturing
processes and reducing the time to market of their
products.

What we do

The seamless integration of data along the industrial


value chains will gain more and more in importance,
becoming a key criterion for the survival of developing /

manufacturing companies. The Digital Factory Division


aims to provide its customers with a comprehensive
portfolio of hardware and software products which
enable the comprehensive integration of data from
development, production and suppliers. The complete
digital representation of the entire physical value chain
is our ultimate goal. We call the solution platform which
we created for this purpose "Digital Enterprise".

Under this term the DF product portfolio already


smoothly connects major parts of the product and
production life cycle today. Powerful Product Lifecycle
Management (PLM) software, for example, allows us to
develop and optimize new products on an entirely
virtual basis. In the real manufacturing world the Totally
Integrated Automation (TIA) concept, which has proven
its worth for about 20 years now, ensures the efficient
interoperability of all automation components. The TIA
Portal, for example, already enables significant time
and cost savings in engineering.

In close cooperation with its partners within Siemens,


and especially the Process Industries and Drives (PD)
Division, the Digital Factory Division provides a large
and unique portfolio of PLM software tools and industrial
automation and drive technology tailored to meet
individual customer requirements in various discrete
industrial areas.

In addition, DF customers can rely on the Division's


commitment to the long-term development of their
businesses. Protecting our customers' investments now
and in the future a particularly important
consideration in the software business is one of the
major pillars of our business strategy. And when it
comes to shaping the future of industry, DF is a driving
and trendsetting force which joins with its partners
worldwide in proven leading-edge technologies to
increase productivity and protect a competitive edge.

Process Industries and Drives


Measurably increase your productivity and improve
your time to market with innovative, integrated
technology across the entire lifecycle. We support you
in continuously improving the reliability, safety, and
efficiency of products, processes and plants.

What we do

As your trusted partner, the Process Industries and


Drives Division can support you in continuously
improving the reliability, safety, and efficiency of your
products, processes and plants. We can thus help you
measurably increase your productivity and improve
your time to market with innovative, integrated
technology across the entire lifecycle.

Around the world, we provide future-proof automation,


drive technology, industrial software, and services
based on best-in-class technology platforms like Totally
Integrated Automation (TIA) or Integrated Drive
Systems (IDS). We work in close partnership with you to
develop sustainable solutions across the entire lifecycle
from design and engineering to modernization. We
rely on standardized components wherever possible,
complementing these with industry-specific solutions to
meet customers specific needs in all industry segments.
This enables the availability of your products, systems,
and solutions over the long term. And with our strong
focus on resource efficiency, we contribute to
environmental sustainability in every application.

The process industry is one of the core businesses of


Siemens. Countless applications, installed throughout a
wide variety of industries, demonstrate our expertise.
But even more important is the value we add for our
customers, enabling them to increase their productivity
in every part of the value chain. With our precise
knowledge of the different market segments, we can
help you respond faster and more specifically to new
market requirements and developments, and thus
strengthen your competitiveness.

Management & Leadership


As on 30th Jan 2014

Corporate Management

Sunil Mathur | Managing Director and Chief Executive


Officer
Sunil Mathur

Mr. Sunil Mathur is Managing Director and Chief Executive Officer,


Siemens Ltd. Mr. Mathur earned a Bachelor of Science degree from
Punjab University and is a Chartered Accountant (member of the
Institute of Chartered Accountants of India). He has been with Siemens
for over 26 years, holding several senior management positions in
Germany and the UK in the Energy and Industry Sectors. Starting his
career in the Internal Audit team in Delhi in 1987, he moved on to join
the Business Administration Group in the Energy Sector. He was Cluster
CFO for South Asia in July 2008 and was Executive Director and Chief
Financial Officer of Siemens Ltd. from December 2008 till December
2013. During his stint as the CFO of Siemens India, Mr. Mathur was part
of Siemens AG CFOs Management Team that consisted of the Sector
CFOs, the Heads of the Corporate Departments and selected Country
CFOs.

Christian Rummel | Executive Director and Chief Financial Officer

Christian Rummel

Mr. Christian Rummel earned his German High school degree and
graduated in Business Management (Industriekaufmann). He has been

with Siemens for over 24 years during which he has held various
management positions. Mr. Rummel began his career in Siemens AG as
a Commercial Apprentice in 1989 and soon thereafter took over the
role of Finance Manager Sales (Power Transmission & Distribution),
Mannheim, Germany. In 2004, he was appointed as Vice President Finance & Business Administration, Energy Sector, Germany and in
2006 as Managing Director & Chief Financial Officer, Audiology
Solutions Business Unit, Healthcare Sector, Germany. Mr. Rummel was
till recently the Senior Vice President & Chief Financial Officer,
Molecular Imaging, Healthcare Sector since 2009 based in USA.

Innovations

Innovation has always been the key to our success. Building on our
strength of innovative strength, we have 32,300 researchers working
on new solutions for energy, industry and healthcare and more than
1,000 research partnerships with universities, research institutes and
industrial companies around the world.
Innovations for the Environment - Protecting the world climate with a
green portfolio

Products and solutions:

From power generation and distribution to the efficient use of energy in


industry, households and transportation to cutting-edge technologies
for water management and pollution control.
Innovative Solutions to ensure tomorrows energy supplies

Products and solutions:

Grid connections for offshore wind farms


Gas insulated transmission lines
High-voltage direct-current transmission systems
Combined cycle power plants

Integrated technologies for greater productivity, energy efficiency and


flexibility

Products and solutions:

Drive systems
Energy Management and consulting
Mobility solutions Parking and Traffic management systems, Rail
automation and electrification, High-speed trains etc.
Building Technologies Energy-saving performance contracting,
Building modernization, components for heating, ventilation and airconditioning
Lighting Energy saving lamps, Light emitting diodes, etc.

Advancing patient care with affordability

Products and solutions:

Refurbished systems
CT Scanners
Magnetic resonance imaging

Sustainability at Siemens in India

Sustainability is a key pillar of the corporate strategy at Siemens, with


the three areas environment, economy and society governing all
the activities at the organization.

Environmental Sustainability

In India, Siemens has put in place various initiatives for creating a


sustainable environment. This includes not only making employees,
suppliers, business partners and customers environmentally-conscious
but also encouraging all stakeholders to choose approaches that
support sustainable environment.

A few initiatives in the area of Sustainability are:

Green building initiative under the Energy Efficiency Program


Corporate citizenship program that promotes social development by
creating a viable economic future
Rain water harvesting at factories
Sewage Treatment Plants
Environment Portfolio with energy efficient (green products)
Recycling and Reuse

Siemens expanding environmental portfolio offers relevant answers to


the nations energy and sustainability challenges. Apart from allowing
customers to enjoy the benefit of lower energy costs, higher
productivity and profitable businesses, the society benefits through
improved environmental care and living standards.

Economic Sustainability

As part of its strategy to conduct business in a sustainable manner,


Siemens focuses on profitable business growth while ensuring that it
adheres to ethical standards of doing business.

The company's focus continues to be on improving operational


efficiencies through process and cost optimization measures. To meet
this objective, it concentrates on the professional management of the
multiple projects that it implements and the risks that are associated
with these projects using the latest project management tools available
globally.

Social Sustainability

Sustainability at Siemens includes corporate citizenship as well as


occupational health and safety.

Siemenss corporate citizenship initiative promotes social development


by creating a viable economic future and thus strives to be an integral
part of society. Siemens sustainability initiatives were reward with the
Bombay Chamber of Commerce & Industry Civic Awards 2011-12 in the
Sustainable Environmental Initiatives category.

Siemens has worked toward improving awareness of occupational


health and safety at all its locations in India. Efforts include constantly
improving and integrating its occupational health and safety methods,
processes and systems on a continual basis.

Our Values

Our Vision 2020 is paving the way to a successful future. And to make
it happen, were focusing on three topics:

A clear mission

A lived ownership culture

A consistent strategy

Even the best strategy cant succeed unless its supported by a strong
culture. Thats why we at Siemens live and foster an ownership culture
a culture that encourages every individual in our Company to give his
or her best in his or her position in order to help build Siemens longterm success. The foundation of this ownership culture is based on our
company values- Responsible, Excellence & Innovative.

Responsible

Many times a question is put to most of us in the organization - what is


it that keeps us so attached to Siemens, like a magnetic charge? Quite
simply it is our cultural values that makes Siemens one of the great
organizations globally and creates a special bond between our
employees and organization.

Siemens value "Responsible" has a broad context for us in the


organization and is not limited only to be responsible to our direct area
of work but also to all that is around us - the society, the environment
and the stakeholders.

Excellence

Excellence is both genetic and cultivable. To achieve Excellence at


Siemens, we are focusing on customer relationship management,
product lifecycle management, supply chain management and financial
excellence.

Excellence demands that we follow a path of continuous improvement


and overcome challenging existing processes. It involves imbibing a
culture of no compromise in the quality of deliverables as expected by
customers and society.

Innovative

An innovation is the conversion of a new idea into a tangible reality


that can yield long term, sustainable results. A crucial aspect of
innovation is that it should increase customer benefits. Once
implemented, it should have a substantial and consistent impact on
business.

The enduring success of Siemens has been built on its culture of


innovation. We have achieved leadership positions in both established
and emerging technologies by closely aligning our R&D activities with
business strategy.

Employees play an important role in innovation through an


entrepreneurial spirit that unlocks the creativity and energy, with
original and inventive thinking.

Siemens will remain the lighthouse for innovation!

Our path
Vision 2020 defines an entrepreneurial concept that will enable our
company to consistently occupy attractive growth fields, sustainably
strengthen our core business and outpace our competitors in efficiency
and performance.icon link

Our culture

One engine of sustainable business is our ownership culture, in which


every employee takes personal responsibility for our companys
success. Always act as if it were your own company this maxim
applies to everyone at Siemens, from Managing Board member to
trainee.icon link

Our strategy
With our positioning along the electrification value chain, we have
knowhow that extends from power generation to power transmission,
power distribution and smart grid to the efficient application of
electrical energy.

Siemens High-Voltage Direct Current (HVDC)


Answers for Indias power problems: High-voltage direct current

Nearly a third of Indias population are estimated to have no access to


reliable power. Numerous cities reel under scheduled load shedding
(rolling blackouts) by the local power distribution agencies, bringing to
a halt industrial operations and impacting livelihood of millions.
Thousands of rural areas fare worse, seeing limited or no development
due to the lack of electricity.

Technology from Siemens is transforming this situation. High-voltage


direct current (HVDC) systems are transmitting power efficiently, safely
and reliably over long distances - from the source of power generation
to the consumers of power. Due to its superior technology, HVDC
transmission has typically 30-50% less transmission loss than
comparable alternating current overhead lines.

Siemens has supplied a HVDC power transmission system that


connects an ultra mega power plant in Mundra on Indias western coast
to the industrial region of Mohindergarh in Haryana, a northern state in
India. The total length of the HVDC system is 960 kilometers and is
rated for providing continuous power of 2,500 megawatts.

The Mundra-Mohindergarh HVDC transmission line is the first HVDC


project in the private sector in India. This transmission line is in
addition to two other HVDC transmission lines the 1,400-kilometer
Talcher-Kolar section, one of the worlds largest transmission projects,
and the 780-kilometer Ballia-Bhiwadi transmission line. Siemens has
installed all the three HVDC systems.
Siemens Dairy Process Automation

Milk is an inseparable ingredient of an average Indians diet. For most


Indians, the day starts with the morning tea laced with milk. In many
urban neighbourhoods, queues form at select spots where milk vans
unload crates of milk sachets before day breaks. Few sweets or
desserts in India are made without milk. Much of the vegetarian Indian
population depend on milk and milk derivatives such as butter, cheese,
yoghurt, curd, paneer, lassi, clarified butter (ghee) and ice cream for
their daily intake of protein, calcium, vitamins and minerals.

It is no wonder that India is the biggest consumer of milk in the world.


In 2012, nearly 128 million tonnes of milk was consumed in India. The
rising demand for fresh and packaged dairy products and ethnic dairy
specialties is broadening the base of Indias modern dairy sector, which
accounts for almost 17 % of Indias expenditure on food. Demand for
milk is expected to increase to 155 million tonnes by 2016-17 and 200
million tonnes by 2021-22.

Working hard to meet this demand are the thousands of milk farmers /
producers and milk of India. While close to 80 percent of these milk
farmers are located in the interiors of India, the biggest markets for
milk exist in towns and cities.

Till the 1970s, milk preservation and processing facilities in villages


were either absent or limited by capacity constraints, and considerable
amount of milk was wasted. This in turn resulted in possible loss of
income for milk farmers. Then came the white revolution brought on by
Operation Flood, often regarded as one of the worlds largest rural
development programs and credited with making India one of the
worlds largest producers of milk.

Bringing the farmers under the organized sector of the milk


cooperatives has helped standardize milk production in the country
and greatly improved the quality of milk that reach our homes. Access
to bulk milk coolers and milk processing technologies that convert milk
into other dairy products with a longer shelf life have not only reduced
losses due to the perish-ability of milk but also opened up new markets
for surplus milk production.

Over the years, Siemens has been a partner to the white revolution
that has transformed India. Its wide range of sustainable technologies
has helped dairy plants, milk processing units and milk cooperatives
build capacities, improve quality and help meet the rising demand of
milk in India. In turn, it has helped the cooperatives sustain the
incomes of milk farmers across the country. The dairies could now
transfer benefits from reduced operating costs, more consistent
product quality, and flexible expansion capabilities to both the
consumers and its legion of suppliers.

Siemens has been the backbone of the Indian dairy industry through its
automation systems that are widely used for dairy processing across
the country. This mainly involves the production of packaged milk, milk
powder, ice cream and other milk based products.

The SIMATIC PCS 7 process control system provides advanced


engineering tools for dairies and cheese makers with the Advanced
Process Functions (APF) engineering tool and the Dairy Functional
Toolset tailored specifically to dairy operations. The main steps
controlled by the PCS 7 system are safe material transfer, reliable tank
management, traceable material movements, and consistent product
specifications. Online instrumentation and powerful pump drives
ensure that the correct quantity and quality of material are provided at
each process; be it cleaning and separating skimmed milk and cream,
setting the fat content, pasteurization, homogenization, sterilization, or
cooling.

The SIMATIC PCS7 enables Siemens to provide answers to revolutionize


the dairy industry and meet the rising demand for dairy products
across the country.

RESEARCH
METHODOLOG
Y

CHAPTER 4
STOP WATCH TIME STUDY AND MOST:
WORK MEASUREMENT TECHNIQUES
Sr.No

Title

Page
No.

4.1

Introduction

98

4.2

Stop Watch Time Study Method

98

4.2.1

Meaning of Time Study

98

4.2.2

Time Study Techniques/Types

99

4.2.3

Stop watch Time Study Method

100

4.2.3.1 Evolution of Stop Watch Time Study Method

101

4.2.3.2 Importance and Uses of Stop Watch Time Study

103

4.2.3.3 Procedure for conducting stop watch time study

103

4.2.3.4 Methods of timing using Stopwatch

106

4.2.3.5 Equipments used to measure time using Stop watch

106

4.2.3.6 Major Companies using Stop watch time study method

107

4.3

MOST Work Measurement technique

108

4.3.1

Concept of MOST Work Measurement technique

108

4.3.2

Evolution of MOST Work Measurement Technique

110

4.3.3

Importance of MOST Work Measurement Technique

112

4.3.4

The MOST systems

113

4.3.5

Basic MOST Method

115

4.3.5.1 Basic MOST Work Measurement Technique

116

4.3.5.2 Selection of Basic MOST General Move sequence Model

116

4.3.5.3 Parameters of Basic MOST General Move Sequence Model

117

4.3.5.4 Phases of Basic MOST General Move sequence Model

117

4.3.5.5

Steps to observe the Phases of parameter for Basic MOST


General Move sequence Model

4.3.5.6 Procedure of Basic MOST Method


4.3.6

Major Companies using MOST Work Measurement


Techniques

118
119
119

STOP WATCH TIME STUDY AND MOST: WORK MEASUREMENT


TECHNIQUES
Introduction:
Chapter 3 attempts to know what is productivity, productivity improvement,
Work study and Work measurement and their relationship with improved productivity.
Whereas, an attempt is made in this chapter to introduce stop watch time study and
MOST measurement technique. The concepts of Stop watch time study and MOST,
evolution and history, importance, uses and types is covered in this chapter. Therefore,
the objective of this chapter is to know and understand above cited aspects with
respect to Stop watch time study method and MOST and to achieve this present
chapter is arranged as follows:
Introduction
Stop Watch Time Study Method
MOST Work Measurement technique
Stop Watch Time Study Method:
Meaning of Time Study:
Time study is the technique of establishing an allowed time standard to perform a
given task, based upon measurement of work content of the prescribed method, with
1

due allowance for fatigue and personal and unavoidable delays . ILO defines time
study as a work measurement technique for recording the times and rates of working
for the elements of specified job carried out under specified conditions, and for
analyzing the data so as to obtain the time necessary for carrying out the job at a
defined level of performance. According to Meyers (2002), time standards can be
defined as the time required to produce a product at a work station with the three

conditions: (1) a qualified, well-trained operator, (2) working at a normal pace, and
(3) doing a specific task.
Time Study Techniques/Types:
Time study is usually referred to as work measurement and it involves the technique
of establishing an allowed time standard to perform a given task, based on
measurement of the work content of the prescribed method and with due allowance
for fatigue, personal or unavoidable delays. Establishes time values are a step in
systematic procedure of developing new work centers and improving methods in
existing work centers. Chart 4.1 presents time study techniques.
Chart Time Study Techniques by Source
Sr.No

Source

Barnes, (1980)

Niebel, (1993)

Lawrences, (2000)

Meyers and Stewart,


(2002)

Niebel and Freivalds,


(2003)

Time Study Techniques


Standard Data
Work Sampling
Predetermined Time Standard System (PTS)
Stopwatch Time Study
Stopwatch Time Study
Computerized Data Collection
Standard Data
Fundamental Motion Data
Work Sampling and Historical Data
Time Study
Standard Data Systems
Predetermined Time Systems (PTS)
Work Sampling
Physiological Work Measurement
Labor Reporting
Predetermined Time Standard System(PTSS)
Stopwatch Time Study
Work Sampling
Standard Data
Expert Opinion and Historical Data
Time Study
Standard Data and Formulas
Predetermine Time Systems
Work Sampling
Indirect and Expense Labor Standards

Source: Nor Diana Hashim, Time Study Method Implementation in Manufacturing


Industry, A B.E Report, Universiti Technikal Malaysia, Melaka, 2008, P.10.

To do time study various experts provided with the various techniques of time study
which are summarized in chart 4.1. The time technique is discussed by five different
sources. Most of the technique had a same method but differ by name. The detail
descriptions on the techniques are shown as below:
Stopwatch Time Study Method:
Work study is divided in two groups in order to gain higher productivity. First group
is a group of method studies which are used to simplify the job and develop more
ergonomic methods of doing it. Second group is a group of work measurements which
are used to find the time required to carry out the operation at a defined level of
activity (Russell, Taylor, 2005a) .
Stopwatch time study measures how long it takes an average worker to complete a
task at a normal pace. A normal operator is defined as a qualified, thoroughly
experienced operator who is working under conditions as they customarily prevail at
the work station, at a pace that is neither fast nor slow, but representative of an
average. The actual time taken by the above-average operation must be increased, and
the time taken by the below-average must be reduced to the value representative of
normal performance. Performance rating is a technique for equitably determining the
time required to perform a task by the normal operator after the observed values of the
operation under study have been recorded (Nakayama, 2002). Hence, when a work is
measured with the stop watch device it is known as stop watch time study method.
Stop watch time study method is a technique of establishing an allowed time standard
to perform a given task with the help of stop watch along with due allowance. When a
stop watch is used as a work measurement technique to record times and rates of
working for the element of specified job carried out under specified conditions and for
analyzing the data so as to obtain the time necessary to carry a specified job at
specified level of performance is referred to as stop watch time study method.
Frederick W. Taylor started to develop time study in 1881 when he started measuring
time at a machine shop at home with stopwatch and clipboard. That was the beginning
of time study. Even Taylor used stopwatch, as basic tool for recording time, present

tools hasnt changed much. Today besides standard tools of time study, stopwatch and
clipboard, we use digital stopwatches, computers, barcodes and accustudy software
(Izetbegovic, 2007).
Evolution of Stop Watch Time Study Method:
The Chart showed the major evolution milestone of time study in the industry. This is
given according to year and the person that contribute to the evolution of the time
study technique.

Chart
Major Evolution Milestones of Time Study
Sr.No

Year

Person

Contribution

1760

Jean Rodolphe Perronet- Extensive time studies on the manufacture of No. 6 common
French engineer
pins and arrived at a standard of 494 per hour (2.0243 hrs/1000).

1820

Charles W. Babbage- an
English economist

1856-1915 Frederick W Taylor

1853-1931 Harrington Emerson

1861-1919 Henry Laurence


Gantt

He invented the task and bonus system or earned-hour plan. He


also developed a technique for scheduling work and
performance control system. Rather than penalizing the less
proficient worker, he advocated a livable wage with a sizable
bonus for performance over 100 percents. He also designed the
antisubmarine tactics known as convoy zigzagging that
permitted escort ships to protect the slow freighters.

1868-1924 Frank and


and
Lilian Gilbreth
18781972

Develop method study technique like cyclograph,


chronocyclographs, movie cameras, motion picture camera and
a special clock called a microchronometer. They also study
fatigue, monotony, transfer of skills and assisted the
handicapped in becoming more mobile. Their systematic
study of motion reduced costs greatly and founded a new
profession of method analysis. The Gilbreths also developed
flow diagrams, process chart, and operation chart. Also the
apprentice on the 17 elementary subdivisions of motion,
later engineers coined a short word therblig.

1900-1984 Ralph M.
Barnes

His achievements included writing the longest published text


on work measurement, a through description of the
Gilbreths micro motion study, time study and the procedure
for work sampling.

1993-2003 Niebel, Lawrences,


Meyers and Stewart,
Niebel and Freivalds

Their contribution includes Stopwatch time study,


Computerized data collection, Standard data, PTS, Work
Sampling, Physiological work measurement, Expert opinion and
Historical data and Labour Reporting.

Conducted time studies on manufacture of No. 11 common pins.


It has determined that one pound (5,546 pins) should be
produced in 7, 6892 hours (1.3864 hrs. /1000).
The first person to use a stopwatch to study work content and as
such is called the father of time study. He accomplishes the
four
Principles of Scientific Management. Responsible for the
following innovations stopwatch time study, high-speed steel
tools, tool grinders, slide riles and functional-type
organization. He emphasized the analytical and organizational
aspect of work.
He was the expert that was needed to make Scientific
Management, the Taylor system, a household name and his
experience proved that the use of efficient methods would lead
to tremendous savings. Accounts of his work were never
extensively published and no comprehensive biography exists
but his work is best remembered as an example of how the
creative engineer can find the tools to improve any operation.

Importance and Uses of Stop Watch Time Study:


Generally this technique is used to determine the time required by a qualified and well
trained person working at a normal pace to do a specified task. The result of time
study is the time that a person suited to the job and fully trained in the specific
method. The job needs to be performed if he or she works at a normal or standard
tempo. This time is called the standard time for operation. This means the principle
objectives of stop watch time study are to increase productivity and product reliability
and lower unit cost, thus allowing more quality goods or services to be produced for
more people. The importance and uses of stop watch time study can be stated as
under:
(i)

Determining schedules and planning work

(ii)

Determining standard costs and as an aid in preparing budgets

(iii) Estimating the costs of a product before manufacturing it. Such information is of
value in preparing bids and determining selling price.
(iv) Determining machine effectiveness, the number of machines which one person
can operate, and as an aid in balancing assembly lines and work done on a
conveyor.
(v)

Determining time standards to be used as a basis for labor cost control.

(vi) Helps to know the Labour productivity, Labour efficiency, Labour Performance
and overall time required to perform the task.
(vii) Helps to improve the process of operation.
Procedure for conducting stop watch time study:
Generally, the following procedure is followed in conducting stop watch time study:
1. Selection of task to be timed:
Select the task or job that needs to be timed for study purpose. There are various
priorities on the basis of which task or job to be studied is selected such as bottleneck

or repetitive jobs, jobs with longer cycle time, to check correctness of existing time,
comparison of two methods etc.
2. Standardize the Method of Working:
To achieve performance standard accuracy it is necessary to record the correct
method of working.
3. Select the operator for study:
Select the consistent worker whose performance should be average or close to
average so that observed times are close to normal times.
4. Record the details:
The following information is recorded on observation sheet: Name of labour,
task/job performed, department, section of work activity, general information
about activity performed etc.
5. Break the task into element:
Each operation is divided into a number of elements. This is done for easy
observation and accurate measurement.
6. Determine number of cycles to be measured:
It is important to determine and measure the number of cycles that needs to be
observed to arrive at accurate average time. A guide for the number of cycles to be
timed based on total number of minutes per cycle is shown below in Chart 4.3.

Chart 4.3
Number of recommended cycles for time study
Minutes Per
Cycle
Number of
Cycles
Recommended

To
To
To
To
To
0.10 0.25 0.50 0.75 1.0
200

100

60

40

30

To
2.0

To
5.0

20

15

To
To
To Over
10.0 20.0 40.0
40
10

Source: A.E.Shaw:stopwatch time study, in H.B.Maynard (ed): Industrial


Engineering Handbook, op.cit.Reproduced by kindpermission of the
McGraw Hill Book Company.
7.

Measure the time of each element using stop watch:


The time taken for each element is measured using a stop watch. There are two
methods of measuring. viz., Fly back method and Cumulative method. The time
measured from the stop watch is known as observed time.

8.

Determine standard rating:


Rating is the measure of efficiency of a worker. The operators rating is found
out by comparing his speed of work with standard performance. The rating of an
operator is decided by the work study man in consultation with the supervisor.
Various rating methods used are speed rating, synthetic rating and objective
rating.

9.

Calculate the Normal time:


The observed time cannot be the actual time required to perform the work for a
worker. Therefore, Normal time needs to be calculated. Normal time is the time
that a worker takes when working at normal pace. It is calculated as below:
Normal Time = Observed time * Rating

10. Determine the allowance:


A worker cannot work all the day continuously. He will require time for rest
going for toilet, drinking water etc. Unavoidable delays may occur because of

tool breakage etc. So some extra time is added to the normal time. The extra time

is known as allowance. It is generally allotted as per the company policy.


11. Determine the standard time:
The standard time is the sum of Normal time and allowances. Thus it is
calculated as below:
Standard Time = Normal Time + Allowances
Methods of timing using Stopwatch:
There are two methods of timing using a stop watch. They are: Fly back or Snap back
method and Continuous or Cumulative method.
1. Fly back Method:
Here the stop watch is started at the beginning of the first element. At the end of the
element the reading is noted in the study sheet. At the same time, the stop watch hand
is snapped back to zero. This is done by pressing down the knob, immediately the
knob is released. The hand starts moving from zero for timing the next element. Thus
the timing for each element found is called observed time.
2. Continuous method:
Here the stop watch is started at the beginning of the first element. The watch runs
Continuously throughout the study. At the end of each element the watch readings are
recorded on the study sheet. The time for each element is calculated by successive
subtraction. The final reading of the stop watch gives the total time known as
observed time.
Equipments used to measure time using Stop watch:
Following equipments are used to measure time using Stop watch time study
method:

1. Digital or electronics stop watch


2. Electronic data collector and computer
3. Observation board
4. Observation sheet
5. Stationary Pen, Pencil, Eraser, Calculator.
Major Companies using Stop watch time study method:
Majority of the manufacturing industries use stop watch time study method as
tool for work measurement. Following are some of the manufacturing industries those
apply stop watch time study method for work measurement as shown in Chart 4.4.

Chart 4.4
List of Major Companies using Stop Watch time study Method
List of Major Companies using Stop Watch Time
Sr.No

Study method

Mahindra and Mahindra (Automobile)

Tata Motors (Automobile)

Honda Motors (Automobile)

Bajaj Motors (Automobile)

Ford Motors Company

General Motors

Source: www.wikipedia.com
The above list is indicative and not exhaustive.

MOST Work Measurement technique

7 a, b, c

After understanding stop watch time study method section introduces MOST
work measurement technique in this section.
Concept of MOST Work Measurement technique:
MOST stands for Maynard operation Sequence technique. It is one of the
important work measurement technique used for management decisions. Work
measurement is a tool used as a basis for planning, scheduling, estimation of costs and
evaluation of performance. Motion Time Analysis (MTA) was developed in 1920.
Method Time Measurement (MTM) published in 1948 was one of the base methods
for many simplified and more efficient techniques. MOST is one of the recent MTM
based techniques that is used for work measurement. MOST is the activity based work
measurement system that enables us to calculate the length of time required to
perform a task i.e. a system to measure work. The concept of MOST was developed in
1967 and Basic MOST system was introduced in Sweden in 1972 and in the United
States in 1974. MOST is easy and faster action based system known as user friendly
work predetermined motion time system. It is a breakthrough work measurement
technique that allows a greater variety of work (both repetitive and non-repetitive) for
manufacturing, engineering to administrative service activities to be measured quickly
with ease and accuracy.
Work means exerting energy to accomplish some task or to perform some
useful activity. Physics defines work as the product of force times distance (W = f x
d), or simply work is the displacement of a mass or object. This definition applies
quite well to the largest portion of the work accomplished every day (e.g. pushing
pencil, lifting a heavy box, or moving the controls on a machine). For the
overwhelming majority of work, however, there is a common denominator from
which work can be studied, the displacement of objects. All basic units of work are
organized for the purpose of accomplishing some useful result by simply moving
objects. That is what work is. MOST is a system to measure work; therefore, MOST
concentrates on the movement of objects. Efficient, smooth, productive work is

performed when the basic motion patterns are tactically arranged and smoothly
choreographed commonly known as methods engineering. It was noticed that the
movement of objects follows certain consistently repeating patterns, such as reach,
grasp, move, and position the object. These patterns were identified and arranged as a
sequence of events (or sub activities) followed in moving an object. A model of this
sequence is made and acts as a standard guide in analyzing the movement of an
object. In other words, to move an object, a standard sequence of events occurs.
Consequently, the basic pattern of an objects movement is described by a universal
sequence model instead of random, detailed basic motions. For each type of move,
different sequence models of events occur; therefore a separate MOST activity
sequence model applies. The use of tool is analyzed through a separate activity
sequence model that allows the analyst the opportunity to follow the movement of a
hand tool through a standard sequence event which is a combination of two basic
sequence models. The technique helps in benchmarking the methods and activities
followed in various operations in the industry with world class standards. It eliminates
the subjective performance rating and has a much better acceptance of
workmen/unions because it is totally transparent and easy to demonstrate.
This concept provides the basis for MOST sequence models. The primary
work units are no longer basic motions as in MTM, but fundamental activities dealing
with moving objects. These activities are described in terms of sub activities fixed in
sequence. Therefore, it is a powerful analytical tool that helps to increase productivity,
improve methods, facilitate planning, establish workloads, estimate labor costs,
improve safety and maximize resources.
Thus a MOST work measurement technique is a complete study of an
operation or a sub operation consisting of one or several method steps and
corresponding sequence model, parameter time values and normal time values for the
operation or sub operation. It also includes the Basic, Mini, and Maxi versions; it
makes the measurement of work a practical, efficient, and inexpensive task for
manufacturing industry.

Evolution of MOST Work Measurement Technique:


The scientific process of engineering a task using the time study methods
described has following weak points:
1. The individual analyst must subjectively rate or compare the operator to an
Estimated 100% performance standard.
2. A watch simply does not forecast, predict, or accurately determine times for
future situations; it only determines what has already occurred.
3. Methods improvement neglected
4. When using time study, a quantitative comparison of methods cannot be
produced unless another time study is taken of the new method.
A combination of the time study technique and the motion study philosophy
was arranged to form the predetermined motion Time systems (PMTS). Since in
PMTS the catalogs of predetermined times already leveled to 100%, there no need to
rate an operator and hence focus shifted from operator to actual work. These
drawbacks lead to evolution of Methods-Time Measurement (MTM) which was
developed by Harold B. Maynard, G. J. Stegemerten, and J. L. Schwab and published
in 1948. Synthesized versions of MTM were developed to reduce applicator errors and
the time of analysis.
The evolutionary stages of MOST ar shown in the above Figure 4.1. Further
advanced version of MTM technique were developed and named as MTM-2 and
MTM-3. Many efforts have been made to simplify the work measure merit analyst's
task. This has led to a establishment of variety of higher level MTM data systems like
MOST Maynard Operation Sequence Technique (MOST) is a system to measure
work; therefore, MOST concentrates on the movement of objects. A model of this
sequence is made and acts as a standard guide in analyzing the movement of an
object. It was also noted that the sub activities in that sequence vary independently of
one another in their actual motion content. The operation time may be kept in TMU or
converted to minutes or hours. This time reflect the work content without allowances
at the 100% performance level.

Figure
Evolutionary stages of MOST work measurement technique
Time Study

Motion Study
Time and Motion Study

Predetermined Motion Time Systems


(PMTS)
Methods-Time Measurement (MTM)
Methods-Time Measurement-2 (MTM-2)
Methods-Time Measurement-3 (MTM-3)

Maynard Operation Sequence Technique (MOST)

Most Work
Measurement
Systems

Most Application
Systems

Most Computer
Systems

- Basic MOST
- Mini MOST
- Maxi MOST
- Clerical MOST
Source: Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.

Thus, advancement in the technology brought further innovation to field of


work measurement and hence advanced version of MOST were developed and
adopted by the industries.
Importance of MOST Work Measurement Technique:
MOST is important because it helps in benchmarking the methods and
activities followed in various operations in the industry with world class standards. It
eliminates the subjective performance rating and is totally transparent and easy to
demonstrate. MOST is used to expose wastes and unproductive methods of work
quickly and rectify problems at the workplace as they arise at the design stage. MOST
continues to be the most important and widely-accepted predetermined time and
motion system used worldwide today because of following1. Latest Benchmarking tool for all type of operations in various industries
2. Streamlines operations and quickly identifies inefficient methods
3. Provides consistent standards and accuracy to within 5% with a 95%
confidence level.
4. Timings can be obtained in advance before actual start of production
5. Universal Application to all types of industries
6. Reduces the time required for data development and standard setting
7. Easy to learn and use
8. Universal Approach, Fast to Apply, Adequate Accuracy
9. Minimum of Paperwork
10. Encourages Method Development and Improvement
11. No Rating System as required in Time Study
12. Can be applied to any method-defined manual work.
13. Can be applied largely from memory.

Thus, brief description of why MOST is important for an organization


includes: accurate work standard, capacity analysis and manpower planning,
workplace design and job activity analysis for re-organization and allocation for work
balancing, cost estimating for existing and new processes.
The MOST systems:
The MOST Systems has grown significantly advanced since its evolution in
1967. It now provides a comprehensive set of practical work measurement tools that
have been put to use in many situations. Because of its excellent reputation, MOST is
used as top choice for tasks related to work measurement in industries. Figure 4.2
shows the basic MOST systems:
Figure
The Basic MOST Systems
MOST Systems

MOST Work
Measurement

Most Application
Systems

Most Computer
Systems

Systems
------ Basic MOST (General Operations)
------ Mini MOST (Repetitive Operations)

Maxi MOST (Non - Repetitive Operations)


Clerical MOST (Clerical Operations)

Source: Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.

(1) MOST Work Measurement System


The consistent multilevel design of MOST Systems made it possible to
establish simple guidelines for deciding which version is the most appropriate for
measuring work. Appendix A provides a detailed explanation of the theory that
supports these guidelines. Distances are analyzed to the nearest inch (centimeter) with

Mini MOST, within reach or a few steps with Basic MOST, and more than two steps
with Maxi MOST.
(a) Maxi MOST
At the highest level Maxi MOST is used to analyze operations that are likely
to be performed fewer than 150 times per week. An operation in this category may be
less than 2 minutes to more than several hours in length. Maxi MOST index ranges
accommodate the wide cycle-to-cycle variations that are typical in such work as
setups or heavy assembly. Even at this level, the method descriptions resulting from
Maxi MOST are very practical for instructional purposes.
(b) Basic MOST
At the intermediate level, operations that are likely to be performed more than
150 but less than 1500 times per week should be analyzed with Basic MOST. An
operation in this category may range from a few seconds to 10 minutes in length,
(Operations longer than 10 minutes may be analyzed with Basic MOST, with 0.5-3
minutes being typical cycle time for Basic MOST). The majority of operations in most
industries fall into this category. Basic MOST index ranges readily accommodate the
cycle-to-cycle variations typical at this level. The method descriptions that result from
Basic MOST analyses are sufficiently detailed for use as operator instructions.

(c) Mini MOST


At the lowest level, Mini MOST provides the most detailed and precise methods
analysis. In general, this level of detail and precision is required to analyze any
operation likely to be repeated more than 1500 times per week. Operations having an
occurrence frequency this high have cycle times of less than 1.6 minutes (10 seconds
or less is typical). Such operations usually have little variation from cycle to cycle
owing to the operator's high level of practice and to management efforts to improve
the design, Layout, and method. Opportunities for small but significant improvements
in these areas are often highlighted by a Mini MOST analysis.

Regardless of the cycle length, Mini MOST should also be used to analyze any
operation in which nearly all reach and move distances for an operation are less than
10 inches (25 cm). However, since its focus is on highly repetitive work within reach
of the operator, Mini MOST was not designed for analyzing operations in which the
operator action distances exceed two steps, body motions other than Bend and Arise
occur, or the weight or resistance per hand exceeds 10 pounds (5 kg). Basic MOST
would normally be used to analyze these situations.
(2) MOST Application Systems
MOST Applications assures that MOST work measurement data are obtained
and used in the most efficient and effective manner. This expertise has been applied to
a large variety of work measurement projects leading to reduced resources and
increase the immediate usefulness and long-term integrity of the data. MOST
Application Systems training is usually provided at the beginning of a data
development project.
(3) MOST Computer Systems
MOST Computer Systems can be considered a remarkable development in the
field of industrial engineering. MOST Computer systems is used to convert commonlanguage method descriptions into Completed MOST analyses. It utilizes the power of
computer in the development, application, and maintenance of both small and
extremely large collections of work measurement data.
Basic MOST Method:
The Basic MOST system is the most common and practical work measurement
system used in industries. Since the objects or materials follows General move
sequence model of Basic MOST system is used by the researcher to measure the time
required to perform activities by all the selected respondents in their respective
sections.

Basic MOST Work Measurement technique:


There are various basic MOST work measurement techniques as shown in
chart
Chart
Basic MOST Work Measurement technique

Sr.No

Activity

Sequence
Model

General Move A B G A B P A

Controlled
Move

Tool Use

ABGMXIA

AB G AB P _
AB PA

Sub-Activity/ Parameter
A- Action Distance
B- Body Motion
G- Gain Control
P Placement
A- Action Distance
B- Body Motion
G- Gain Control
M - Move Control
X - Process Time
I - Alignment
A- Action Distance
B- Body Motion
G- Gain Control
P - Placement
Blank Space (_) is filled with
below tool use parameter:
F-Fasten
L - Loosen
S - Surface Treatment
M - Measure
R - Record
T Think

Source: Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.
Selection of Basic MOST General Move sequence Model:
If the objects or material displacement follows spatial displacement or
unrestricted path through the air under manual control general move sequence model
is used.

Parameters of Basic MOST General Move Sequence Model:


The parameters are the series of letters representing various activity elements.
The parameters of the Basic MOST General Move Sequence consist of 5 step pattern
as below:
A B G A B P A
Where: A = Action Distance
B = Body Motion
G = Gain Control
P = Placement
Action Distance (A):
This parameter is used to analyze all the movements of operator related to hands
or feet for either loading or unloading of the material.
Body Motion (B):
This parameter is used to analyze the body motion of the operator like bend,
arise, sit or stand while performing activity.
Gain Control (G):
This parameter is used to analyze the complete control of the material before
moving the material to another place.
Placement (P) :
This parameter analyzes the material placement, alignment, adjustment with
pressure.
Phases of Basic MOST General Move sequence Model:
Movement of the object through air occurs in three phases as under shown in
chart

Chart
Phases of Object Movements for Basic MOST general Move Sequence Model
Get
A

1.

PUT
G

Return
P

First Phase GET:


It is the action that is performed by the labour to reach to the object in combination
with the body motion and gain control of the object. The A parameter indicates the
distance the hand or body must travel to reach the object. The B parameter
indicates the body motion while performing the action and the G parameter
indicates the control gained by the labour on the object.

2. Second Phase- PUT:


This phase indicates the action to move or place the object to another location.
Parameter A and B indicates the same function as mentioned in first phase (GET)
to place the object at required place. The parameter P indicates the way in which
the object is placed at the desired place.
3. Third Phase- RETURN:
This phase indicates the distance travelled by the labour to return to the work place
after the object is placed at the desired place.
Steps to observe the Phases of parameter for Basic MOST General Move
sequence Model:
1. Reach to the object covering distance of few steps in combination with the body
motion.
2. Gain manual control of the object
3. Move the object at certain distance for placement in combination with the body
motion

4. Place the object as required


5. Return to the workplace
Procedure of Basic MOST Method:
Generally, 9 steps are used for applying basic MOST methods such as: (i)
Selection of Job (ii) Select the Operator for study (iii) Record details of activity and
conditions of Work (iv) Observation of each parameter Phases (v) Parameter Indexing
(vi) Addition of all the parameter Index values of activity (vii) Convert the total of
Index values into TMU (viii) Convert the TMU value in corresponding time (Hours)
(ix) Convert the time from hour into Minutes.
Major Companies using MOST Work Measurement Techniques:
Since MOST is a universal technique with applicability to any type of manual
work situations, it can be used in traditional as well as new work measurement areas.
Standards based on MOST are used for the manufacturing of products and
components in electronics, automotive, power generation and other heavy industries.
Some of the industries which had implemented MOST for productivity improvement
in their organization are:
The above list is indicative and not exhaustive; moreover, the Figure 4.7
shows the MOST technique applied by various industries globally.

Chart 4.7
List of Major Companies using MOST
Sr. List of Major Companies using

Sr.

List of Major Companies using

No MOST

No

MOST
Mahindra and Mahindra

1 Areva (Switchgear)
Bharat Forge (Crank

11 (Automobile)
Menon and Menon

2 Shaft/Axles)

12 (Foundry/Machining)

3 Bilt (Paper)

13 New Holland (Tractors)

4 Crompton Greaves (Electrical)

14 Siemens (Electrical)

5 Cummins (Engines)

15 Siporex (Construction Blocks/Slabs)

Dana Spicer (Automobile


6 Transmission)

16 Tata Motors (Automobile)

7 Gabriel (Auto Component)

17 Techumseh (Compressors)

8 Honda (Automobile)

18 Vishay Components (Capacitors

9 IPCA (Pharmaceutical)

19 Whirlpool (Refrigerators)

10 JCB (Excavators)
Source: www.hbmayanrd.com

Reference
1. Niebel, B. W, Motion and Time Study, Richard D. Irwin, Inc., Homewood,
Illinois, 1962.
2. International Labour Organisation (ILO), Introduction to Work Study, Universal
Publishing Corp., India. , Third Revised Edition, 1986.
3. Meyers, 2002, in Time Study Method Implementation in Manufacturing Industry, A B.E
Report, Universiti Technikal Malaysia, Melaka, 2008, PP. 6.
4. Russell, R.R., Taylor, B.W., Operations Management: Quality and
Competitiveness in a Global Environment, 5th Edition, J. Wiley, New York, 2005.
5. Nakayama, S., A study on setting standard time using work achievement quotient,
International Journal of Production Research, Vol. 40, No. 15, 2002, PP 3945-53.
6. Izetbegovic, J., Proucavanje Graditeljske Proizvodnje, Elektronicki
Udzbenik, Zagreb, Faculty of Civil Engineering, 2007.
7a. Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.
7b. Malik, M.R., Improve the productivity using MOST, A B.E project Report,
VJTI, Mumbai, 2004.
7c. Sanjay Kumar, Optimization of Resources in Service as well as manufacturing industries,
Ph.D. thesis, University of Mumbai, 2010.

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121

FINDINGS
1. There has been a remarkable increase Gross Sales and with the performance of
All the department and has narrowed and contributing to the EBIT. The Gross Profit
Has considerably increased 1600 Crore from in Last year. The interest payment has
increased by 170 Cr in the Current year and the Profit before Tax at 27,818 Crore
when compared to 26,284 Crore in Last year.
2. The profit After Tax has came 21,984 Crore to 21,003 Crore

in Current year

because of demand in international market.


3. The PAT is in an increasing trend from 2008-2009 because of increase in sale
prices and also decreases in the cost of manufacturing. In 2010 and 2011even the
cost of manufacturing has increased by 5% because of higher sales volume PAT has
increased considerably, which leads to higher EPS, which is at 83.80 in 2010.
4. The EBIT level in 2009 is at 33041 Crore and is increasing every year till 2010-11.
Because of government policy and low demand in market The EBIT levels in 2012
and 2013 decreased significantly but again started growing and reached to 27818
Crore.
5. The EPS of the company also increased considerably which investors in coming
period. The company has taken up a plant expansion program during the year to
increase the production activity and to meet the increase in the demand.
6. Because of decrease in Non-Operating expenses to the time of the Net profit has
increased. It stood at in current year increase because of redemption of debenture
and cost reduction. A dividend of Rs.3093 Crore as declared during the year at 9 %
on equity.

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CONCLUSIONS
1) Sales in 2013-2014 is at 4, 01,200 Crore and in 2012-2013 3, 71,021 Crore those
in a increase trend to the extent of 10% every year. On the other hand
manufacturing expenses are at 3, 29,313 from 2013-2014. There has been
significant increase in cost of production during 2012-2013 because of increase in
Royalty.
2) The interest charges were 4053 Crore in 2014 and 3505 Crore in 2013
respectively shows that the company redeemed fixed interest bearing funds from
time to time out of profit from 2012-2013.Debantures were partly redeemed with
the help of debenture redemption reserve and other references.
3) The PAT (Profit After Tax) in 2013-2014 is at 21984 Crore. The PAT has increased
in prices in during the above period. The profit has increased almost 15% during the
period 2013-2014.
4) Debentures were redeemed by transfers to D.R.R. in 2012-2013.
5) A steady transfer for dividend during 2008-2009 from P&L appropriation but in
2008 there is no adequate dividend equity Shareholders.

79 | P a g e

6) The share capital of the company remained in unchanged during the three-year
period because of no public issues made by the company.
7) The secured loans have decreased consistently from 2012-2013 and slight
increase in 2013-14.
RECOMMENDATIONS ON RELIANCE INDUSTRIES LTD
The Board recognizes the importance of two-way communication with
shareholders and giving a balanced report of results and progress and
responding to questions and issues raised in a timely and consistent manner.
The Company Secretary plays a key role in ensuring that the Board
procedures are followed and regularly reviewed. The Company Secretary
ensures that all relevant information, details and documents are made
available to the Directors and senior management for effective decisionmaking at the meetings.
Significant changes in accounting policies and internal controls
Takeover of a company or acquisition of a controlling or substantial stake in
another company
Statement of significant transactions, related party transactions and
arrangements entered by unlisted subsidiary companies
Issue of securities including debentures
Appointment of and fixing of remuneration of the Auditors as recommended
by the Audit Committee
Internal Audit findings and External Audit Reports (through the Audit
Committee)
Proposals for major investments, mergers, amalgamations and
reconstructions
Status of business risk exposures, its management and related action plans
Making of loans and investment of surplus funds
Borrowing of monies, giving guarantees or providing security in respect of
loans
Buyback of securities by the Company
80 | P a g e

Diversify the business of the Company

SUGGESTIONS:

1. The company has to maintain the optimal capital structure and leverage so that
in coming years it can contribute to the wealth of the shareholders.
2. The mining loyalty contracts should be revised so that it will decrease the direct
in the production
3. The company has to exercise control over its outside purchases and overheads
which have effect on the profitability of the company.
4. As the interest rates in pubic Financial institutions are in a decreasing trend after
globalization the company going on searching for loan funds at a less rate of
interest as in the case of international fund.
5. Efficiency and competency in managing the affairs of the company should be
maintained.

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BIBLIOGRAPHY

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