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Principles of Operations Management, 5e, and Operations


Management, 7e

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-1
Operations
Management

Work Measurement
Supplement 10
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Management, 7e

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-2
Outline
+LABOR STANDARDS AND WORK
MEASUREMENT
+HISTORICAL EXPERIENCE
+TIME-STUDIES
+PREDETERMINED TIME STANDARDS
+WORK SAMPLING
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-3
Learning Objectives
When you complete this supplement, you should
be able to :
Identify or Define:
+ Four ways of establishing labor standards
Describe or Explain:
+ Requirements for good labor standards
+ Time study
+ Predetermined time standards
+ Work sampling

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-4
+Costing labor content of products
+Planning staffing needs
+Estimating time and cost for bids
+Planning production (crew size and work balance)
+Estimating expected production
+Basing wage-incentive plans
+Determining employee efficiency
Uses of Labor Standards
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S10-5
+Historical experience
+Time studies
+Predetermined time
standards (MTM)
+Work sampling
1995
Corel
Corp.
Sources of Labor Standards
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-6
Historical Experience
+Relatively easy, convenient, and inexpensive
+Not objective, unknown accuracy



Not recommended
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-7
+Labor standards are based on observing worker
doing task
+ Observe only a sample of work
+ Use average time & pace to set standard
+Disadvantages
+ Requires a trained & experienced analyst
+ Standard cannot be set before task is performed
Time Studies
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-8
The Eight Steps to Conducting a
Time Study
1. Define the task to be studied (after a methods analysis)
2. Break down the task into precise elements
3. Decide how many times each element of the task must
be measured
4. Record the times and ratings of
performance for the task elements
5. Compute the average observed cycle time (element
times adjusted for unusual influences)
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S10-9
6. Compute the normal time for each task element:
Normal time = (Average actual cycle time)
x (Rating factor)
7. Sum the normal times for each element to
develop a total normal time for the task
8. Compute the standard time:
The Eight Steps to Conducting a
Time Study - continued
Standard time =
Total normal time
1- Allowance factor
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Allowances
+Personal time allowance - 4% - 7% of total time -
use of restroom, water fountain, etc.
+Delay allowance - based upon actual delays that
occur
+Fatigue allowance - to compensate for physical or
mental strain, noise level, tediousness, heat and
humidity, assumption of an abnormal position, etc.
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S10-11
Rest Allowances (%) for Various
Classes of Work
1. Constant allowance
(a) Personal allowance ...
(b) Basic fatigue allowance
2.Variable allowances:
(A) Standing allowance ..
(B) Abnormal position
(I) Awkward (bending) .
(ii) Very awkward (lying,
stretching) ..
(C) Use of force or muscular energy
in lifting, pulling, pushing
Weight lifted (pounds)
20
40.
60.


5
4

2

2

7



3
9
17

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S10-12
Rest Allowances (%) for Various
Classes of Work - Continue
(D) Bad light
(i) Well below recommended ..
(ii) Quite inadequate .
(E) Atmospheric conditions (heat
and humidity)
Variable ..
(F) Close attention
(i) Fine or exacting
(ii)Very fine or very exacting ...
(G) Noise level
(i) Intermittent loud
(ii) Intermittent very loud or
high-pitched


2
5



1-10


2
5

2

5

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S10-13
Rest Allowances (%) for Various
Classes of Work - Continue
(H) Mental strain
(i) Complex or wide span of
attention
(ii) Very complex .
(I) Tediousness
(i) Tedious .
(ii) Very tedious



4
4

2
5
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Time Studies - Sample Size
2
|
.
|

\
|
=
x h
zs
n , size Sample
h = accuracy level desired as percent of job element,
expressed as a decimal (5% = 0.05)
z = number of standard deviations required for the
desired level of confidence
s = standard deviation of the initial sample
x = mean of the initial sample
( )
1
2

=

n
x
i
x
s : Note
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S10-15
Considerations in Determining
Sample Size
1. How accurate do you want to be?
2. What level of confidence do you want your
measurements to have?
3. How much variation exists within the job
elements?
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Common z values
Desired Confidence
Level (%)
Z Value
90.11 1.65
95.00 1.96
95.45 2.00
99.11 2.58
99.73 3.00
99.0
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S10-17
Allowance factor
Nonwork time
Total time
Average element time
E Element times
Number of cycles
Normal time Average element time * Perf. Rating
Standard time
Total normal time
1 - Allowance factor
=
=
=
=
Time Study Equations
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-18
+Labor standards are set from times in published tables
(e.g., MTM Table)
+Procedure
+ Divide manual work into basic elements
+ Look up basic element times in table; sum
+Advantages
+ Times established in laboratory setting
+ Useful for planning tasks
+ Widely accepted by unions
Predetermined Time Standards
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-19
Time TMU
Hand in
Motion
Distance
Moved (in)
A B C A B
3/4 or less 2.0 2.0 2.0 1.6 1.6
1 2.5 2.5 3.6 2.3 2.3
2 4.0 4.0 5.9 3.5 2.7
A Reach to object in fixed location.
B Reach to object in variable locations.
C Reach to object jumbled with others.
1 TMU = .0006
minutes
MTM Table for Reach Motion
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S10-20
Sample MTM Table for GET and
PLACE Motions
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MTM-HC Analysis: Pouring Tube
Specimen
Element Description Element Time
Get tube from rack AA2 35
Get stopper, place on
counter
AA2 35
Get centrifuge tube, place at
sample tube
AD2 45
Pour (3 sec.) PT 83
Place tubes in rack (simo) PC2 40
0.0006*238=Total standard
minutes = 0.14
Total
TMU
238
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-22
+Labor standard is set using output and % of time
worker spends on tasks
+Involves observing worker at random times over a
long period
+Advantages
+ Less expensive than time studies
+ Observer requires little training
+Disadvantages
+ Ineffective with short cycles
Work Sampling
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Principles of Operations Management, 5e, and Operations
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-23
+Used for
+ Ratio delay studies
+ Setting labor standards
+ Measuring worker performance
Work Sampling
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-24
The Five Step
Work Sampling Procedure
1. Take a preliminary sample to obtain an
estimate of the parameter value
2. Compute the sample size required
3. Prepare a schedule for observing the
worker at appropriate times
4. Observe and record worker activities; rate worker
performance
5. Determine how workers spend their time (usually as a
percent)


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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-25
Work Sampling - Sample Size
( )
2
2
1
=
h
p p z
n
p = estimated value of sample proportion
(of time worker is observed busy or idle)
h = accuracy level desired in percent,
expressed as a decimal
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S10-26
Normal Time =
(Total Time) (% of time working) (Rating)
Number of units Produced
Standard Time =
Normal Time
1 - Allowance
Work Sampling Equations
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S10-27
Work Sampling Time Studies