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Operations

Management
Work Measurement
Supplement 10
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S10-1

2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

Outline
Labor Standards and Work
Measurement
Historical Experience
Time-Studies
Predetermined Time Standards
Work Sampling

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2001 by Prentice Hall, Inc., Upper Saddle


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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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2001 by Prentice Hall, Inc., Upper Saddle


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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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S10-4

2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

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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2001 by Prentice Hall, Inc., Upper Saddle


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The Eight Steps to


Conducting a Time Study
Define the task to be studied (after a methods
analysis)
Break down the task into precise elements
Decide how many times each element of the
task must be measured
Record the times and ratings of performance
for the task elements
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
Compute the normal time for each
task element:
Normal time = (Average actual
cycle
time) x (Rating
factor)
Sum the normal times for each
element
to develop
total normal
Total
time
Standard
time
=a normal
time for the task1- Allowance factor
Compute the standard time:
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2001 by Prentice Hall, Inc., Upper Saddle


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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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S10-9

2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

Time Studies - Sample


Size
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
2
(
)
x

i
sample
Note : s =
x = mean of the initial sample
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n 1

2001 by Prentice Hall, Inc., Upper Saddle


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Considerations in
Determining Sample
Size
How accurate do you want to
be?
What level of confidence do
you want your measurements
to have?
How much variation exists
within the job elements?
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2001 by Prentice Hall, Inc., Upper Saddle


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Common z values
Desired Confidence
Level (%)

Z Value

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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2001 by Prentice Hall, Inc., Upper Saddle


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Time Study Equations


Allowance factor

Nonwork time
=
Total time

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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2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

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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2001 by Prentice Hall, Inc., Upper Saddle


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MTM Table for Reach


Motion
Hand in

Time TMU

Motion

Distance
Moved (in)

3/4 or less

2.0

2.0

2.0

1.6

1.6

2.5

2.5

3.6

2.3

2.3

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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Operationsothers.
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Sample MTM Table for


GET and PLACE
Motions

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2001 by Prentice Hall, Inc., Upper Saddle


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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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S10-17

2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

Work Sampling
Used for

Ratio delay studies


Setting labor standards
Measuring worker performance

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2001 by Prentice Hall, Inc., Upper Saddle


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The Seven Step


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

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2001 by Prentice Hall, Inc., Upper Saddle


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The Seven Step


Work Sampling Procedure continued
Record the number of units
produced during the applicable
portion of the study
Compute the normal time per
part
Compute the standard time per
part

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S10-20

2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

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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2001 by Prentice Hall, Inc., Upper Saddle


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Work Sampling
Equations

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


Normal Time =
Number of units Produced
Normal Time

Standard Time =

1 - Allowance

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2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

Figure S10.3

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2001 by Prentice Hall, Inc., Upper Saddle


River, N.J. 07458

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