Management
Work Measurement
Supplement 10
PowerPoint presentation to accompany
Operations Management, 6E (Heizer &
Render)
S10-1
Outline
Labor Standards and Work
Measurement
Historical Experience
Time-Studies
Predetermined Time Standards
Work Sampling
S10-2
Learning Objectives
When you complete this supplement,
you should be able to :
Identify or Define:
Describe or Explain:
S10-3
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
S10-4
Sources of Labor
Standards
Historical experience
Time studies
Predetermined time
standards (MTM)
Work sampling
1995
Corel
Corp.
S10-5
Time Studies
Labor standards are based on
observing worker doing task
Disadvantages
S10-6
S10-7
S10-8
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.
PowerPoint presentation to accompany
Operations Management, 6E (Heizer &
Render)
S10-9
Sample size, n =
hx
i
sample
Note : s =
x = mean of the initial sample
PowerPoint presentation to accompany
Operations Management, 6E (Heizer &
Render)
S10-10
n 1
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?
PowerPoint presentation to accompany
Operations Management, 6E (Heizer &
Render)
S10-11
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
S10-12
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
PowerPoint presentation to accompany
Operations Management, 6E (Heizer &
Render)
S10-13
Predetermined Time
Standards
Labor standards are set from times in
published tables (e.g., MTM Table)
Procedure
Advantages
S10-14
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
S10-16
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
Disadvantages
S10-17
Work Sampling
Used for
S10-18
S10-19
S10-20
S10-21
Work Sampling
Equations
Standard Time =
1 - Allowance
S10-22
Figure S10.3
S10-23