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Operations

Management

Work Measurement
Supplement 10
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Outline

♦ Labor Standards and Work


Measurement
♦ Historical Experience
♦ Time-Studies
♦ Predetermined Time Standards
♦ Work Sampling

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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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Uses of Labor
Standards
♦ Costing labor content of products
♦ Planning staffing needs
♦ Estimating time and cost for bids
♦ Planning production (crew size and work
balance)
♦ Basing wage-incentive plans
♦ Determining employee efficiency

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Sources of Labor
Standards
♦ Historical experience
♦ Time studies
♦ Predetermined time
standards (MTM)
♦ Work sampling

© 1995
Corel
Corp.

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Time Studies

♦ 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
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The Eight Steps to
Conducting a Time Study
➊ Define the task to be studied (after a methods
analysis)
➋ Break down the task into precise elements
➌ Decide how many times each element of the
task must be measured
➍ Record the times and ratings of performance
for the task elements
➎ Compute the average observed cycle time
(element times adjusted for unusual influences)

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The Eight Steps to
Conducting a Time
Study - continued
➏ Compute the normal time for each
task element:
Normal time = (Average actual
cycle
time) x (Rating
factor)
➐ Sum the normal times for each
element to develop
Standard =a normal
Total
time total normal
time
time for the task1- Allowance factor
➑ Compute the standard time:
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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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Time Studies - Sample
Size
2
 zs 
Sample size, n =  
 hx 
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 i − x ) 2
Note : s =
x = mean of the initial sample n −1
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Considerations in
Determining Sample
Size
❶ How accurate do you want to
be?
❷ What level of confidence do
you want your measurements
to have?
❸ How much variation exists
within the job elements?

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Common z values

Desired Confidence Z Value


Level (%)
90.0 1.65
95.0 1.96
95.4 2.00
99.0 2.58
99.7 3.00
99.0

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Time Study Equations
Nonwork time
Allowance factor =
Total time
Σ Element times
Average element time =
Number of cycles
=
Normal timeAverage element time * Perf. Rat
Total normal time
Standard time =
1 - Allowance factor
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Predetermined Time
Standards
♦ 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

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MTM Table for Reach
Motion
Time TMU Hand in
Motion
Distance A B C A B
Moved (in)
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. 1 TMU = .


B Reach to object in variable 0006
locations. minutes
C Reach to object jumbled© with 2001 by Prentice Hall, Inc., Upper Saddle
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Sample MTM Table for
GET and PLACE
Motions

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Work Sampling
♦ 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

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Work Sampling
♦ Used for
♦ Ratio delay studies
♦ Setting labor standards
♦ Measuring worker performance

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The Seven Step
Work Sampling
Procedure
➊ Take a preliminary sample to obtain an
estimate of the parameter value
➋ Compute the sample size required
➌ Prepare a schedule for observing the
worker at appropriate times
➍ Observe and record worker activities;
rate worker performance

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The Seven Step
Work Sampling Procedure -
continued
➎ Record the number of units
produced during the applicable
portion of the study
➏ Compute the normal time per
part
➐ Compute the standard time per
part

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Work Sampling -
Sample Size
z 2 p( 1 − p )
n=
h2

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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Work Sampling
Equations

(Total Time) (% of time working) (Rating)


Normal Time =
Number of units Produced

Standard Time = Normal Time


1 - Allowance

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Figure S10.3

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