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Time Study
Objectives
After reading the chapter and reviewing the materials presented the students will be able to: Understand the concepts of time study and time standards. Identify various techniques of establishing time standards. Identify steps in performing a stopwatch time study.
Time Standards
A time standard is defined as the time required to produce a product at a workstation with the following three conditions: (1) a qualified, well trained operator, (2) working at a normal pace, and (3) doing a specific task. Experience is usually what makes a qualified well trained operator, and time on the job is the best indicator of experience. Normal pace is the pace at which a trained operator, under normal conditions performs a task with a normal level of effort. A specific task is a detailed description of what must be accomplished.
How much work can we handle with the equipment and people we have?
One scheduling philosophy is that operating departments are compared to buckets of time. The size of the bucket is the number of hours that each department can produce in a 24 hour day (see example on page 61). Inventory is a huge cost in manufacturing, so knowledge of time standards will reduce inventory requirements, which will reduce cost.
How Can We Select the Best Method or Evaluate Cost Reduction Ideas?
A basic rule of production management is , All expenses must be cost justified. A basic rule of life is, Everything changes. Planners must keep improving or become obsolete. The return on investment (ROI) is the amount of return divided by the investment. See example on pages 64 and 65.
Allowances
Allowances are extra time added to normal time to make the time standard practical and attainable. Allowances fall into 3 categories: personal, fatigue, and delay. Personal allowance is the time that is allowed for personal activities such as: talking to friends, going to the bathroom, getting a drink, or any other operator controlled reason for not working. An appropriate amount of time has been defined as about 5% of the workday or 24 minutes per day. Fatigue allowance time is given to employees in the form of work breaks (coffee breaks). A 5% fatigue allowance is given for every 10 pound increase in exertion required of the employee. If an employee has to pick up a 50 pound part, fatigue allowance is 5 x 5 = 25% allowance. Delay allowance are unavoidable because they are out of the operators control. Personal, fatigue and delay allowances are added together, and the total allowance is added to the normal time. Normal time + allowance = standard time.
Work Sampling
Work sampling is the same scientific process used in Nielsen ratings, Gallup polls, attitude surveys, and federal unemployment statistics. You could walk through a plant of 250 people one time and count people who are working and those who are not working and calculate the performance of that plant within +/- 10%. Consultants expect 60% performance in plants without standards and 70 to 75% in plants with better management. Ten percent extra time for personal time, fatigue, and delay is considered normal.
Standard Data
Machines like welders have simple formulas, such as 12 inches per minute. The machine manufacturers are a good source of standard data. Metal cutting machines are examples of the need for and use of formulas. Feeds and speeds can be looked up in the Machinery Handbook and substitute the information into 3 simple formulas to determine the time standard.
Summary
A time standard is defined as the time required to produce a product at a workstation with the following three conditions: (1) a qualified, well trained operator, (2) working at a normal pace, and (3) doing a specific task. How many machines do we need? The answer depends on two questions: 1. How many pieces need to be manufactured per shift? 2. How much time does it take to make one part (time standard)? How many people should we hire? At 500 pieces per hour it would take 2 hours to make 1,000 pieces. If the efficiency is 75 % then we need 2 hours per 1,000 pieces / 75% = 2.67 hours for 1,000 pieces. # of hours / 8 hours per employee = # of employees needed. Product costs may include the following: Manufacturing costs (50%): Direct labor (8%), direct materials (25%), overhead (17%). Front end costs (50%): Sales and distribution costs (15%), advertising (5%), administrative overhead (20%), engineering (3%), profit (7%). Inventory is a huge cost in manufacturing, so knowledge of time standards will reduce inventory requirements, which will reduce cost. There will always be a workstation or cell that has more work than others. This station is defined as the 100 % loaded station, or bottleneck station, and will limit the output of the whole plant. Productivity is measured as output divided by input. For example: output = 1,000 units per day / Input = 50 people @ 8 hours per day = 1000 / 400 = 2.5 units per work hour. Productivity improvement is accomplished by: 1. Identifying non productive time and eliminating it. 2. Identifying poorly maintained equipment and fixing it. 3. Identifying causes for downtime and eliminating them. 4. planning ahead for the next job. A National Science Foundation study found that when workers pay was tied to their efforts, productivity improved, cost was reduced, workers pay increased, and workers morale improved. A basic rule of production management is , All expenses must be cost justified. Budgeting is one of the most important management tools. Rating the operator includes 4 factors: skill, consistency, working conditions, and effort (which is most important). Allowances fall into 3 categories: personal, fatigue, and delay.
Home Work
1. Define time standard. 2. What is a basic rule of production management? 3. What are the 4 skill factors in rating the operator? 4. What are the 3 categories of allowances?