work measurement and productivity
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Work Measurement and Productivity
Presented by:
MD. NAZIR ANSARI
ANSHUL GARG
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Work Measurement Work Measurement: establish a
measurable work standard upon which to evaluate, compare and improve labor productivity.
Work (labor) Standard: Determine on average-how many labor-hour are required to produce one unit of desired output for a well-trained worker under normal operating conditions
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Work Measurement Continue… Level of standard: * Operations/Department/Plant standards * Element/Operations/Product standards Use of work standard: * Work and personnel planning * Cost estimation for labor and machine Techniques to set work standard: * Time study * Work sampling * Elemental timing * Predetermined motion-time study
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Three Levels of Standards
Production and operations standards: individuals job standards
Department standards: sum of performance of the individual and team in a department
Plant standards: quantity and labor standards of the plant are the goals management strives to meet
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Evaluation Performance Evaluating individual performance:
subsequent compensation Evaluating department performance:
subsequent supervisor compensation Evaluating process design, layout, and
work methods Estimating expense and revenue streams
in equipment evaluation as alternative are compared
Formulating standards costs
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Predicting, Planning, and Controlling Operations
Aggregate planning of work force levels and production rates
Capacity planning and utilization Scheduling operations: time sequencing
jobs Cost estimating of products and
production lots Planning types of labor skills necessary
and budgeting labor expenses
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Work Measurement- Average Worker
Determined by observing several workers and estimating their average performance
Sampling costs increase with number of workers sampled: accuracy of estimate increases as sample size increases
Must tradeoff sampling cost and accuracy
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How to Determine “Average Worker” Standard ? Example from Distribution of 100 Workers Sample
Number of Workers Sampled
Performance in Units
Per Hour Mean
5 10-14 12 *5% =0.6
20 15-19 17 *20% =3.4
45 20-24 22 *45% =9.9
25 25-29 27 *25% =6.75
5 30-34 32 *5% =1.6
100 Total = 22.5
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Work Measurement Time Study
Standards time=
Normal time= (average cycle time)* (rating factor)
Average cycle time=
Allowance fraction= fraction of time for personal needs, unavoidable work delays, fatigue
Normal time
(1-allowance)
Time recorded to perform an element
Number of cycles observed
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Work Measurement- Work Sampling
Purpose: To estimate what proportion of a worker’s time
is devoted to work activities
Main Issues: What level of statistical confidence is desired
in the results?How many observations are necessary
Primary Applications:Time standards: to obtain the standards time
for a task
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Work Measurement- Work Sampling Formulas
Normal Time= Total Study Time *
Proportion of Time EmployeeObserved Working *
PerformanceRating Factor
Number of Units Produced
Proportional ofTime EmployeeObserved Working
=Number of observations in which working occurred
Number of Observations
OrP =
x
n
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Work Measurement- Work Sampling Formulas
Example: N= 100 (observations)X= 83 (sampled worker is working)P= 83/100 = 0.83
Given: Total Study Time = 37.5 (hours)Rating Factor = 1.05Number of Units Produced = 100
Normal Time: = (37.5*0.83*1.05)/100 = 1/3 (hours) = 20 (min)
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Work Measurement- Elemental Standards- Time Data
Elemental Standards- time data tables contain performance time for operations that are common to many applications
Used where numerous configuration of product make detailed time study of each configuration impractical
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Work Measurement- Predetermined Motion- Time
Study Description: used in the planning process
when the jobs are not currently being performed
Can also be an alternative to observed time studies
Basis in the historical information on basic human movement and motion such as reaching, gasping, lifting, etc.
Elemental times have been developed for the basic human motion
Commonly industry specific
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Measurement Problems
Quality may change while the quantity of inputs and outputs remains constant
External elements may cause an increase or decrease in productivity
Precise units of measure may be lacking
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Measure of process improvement Represents output relative to input Only through productivity increases
can our standard of living improve
Productivity =Units produced
Input used
Productivity
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Productivity =Units produced
Labour-hours used
= = 4 units/labour-hour1,000
250
Labour Productivity
One resource input single-factor productivity
Productivity Calculation
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Example
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Multi-Factor Productivity
OutputLabor + Material + Energy +
Capital + Miscellaneous
Productivity =
Also known as total factor productivity Output and inputs are often expressed in
dollars
Multiple resource inputs multi-factor productivity
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Example
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Productivity Variables Labor - contributes about 10% of the
annual increase
Capital - contributes about 38% of the annual increase
Management - contributes about 52% of the annual increase
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Key Variables for Improved Labor Productivity
Basic education appropriate for the labor force
Diet of the labor force Social overhead that makes labor
available
Maintaining and enhancing skills in the midst of rapidly changing technology and knowledge
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Service Productivity
Typically labor intensive Frequently focused on unique individual
attributes or desires Often an intellectual task performed by
professionals Often difficult to mechanize Often difficult to evaluate for quality
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Conclusion
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