Work

Measurement
and
Productivity

Presented by:
MD. NAZIR ANSARI
ANSHUL GARG

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

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

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

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

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

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

How to Determine Average Worker Standard ?

Example from Distribution of 100 Workers Sample

Number of
Workers Sampled

Performance in Units
Per Hour

Mean

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

30-34

32

*5%

=1.6

Total =

22.5

100

Work Measurement Time Study

Normal time

Standards time=

(1-allowance)

Normal time= (average cycle time)* (rating factor)

Time recorded to perform an element

Average cycle time=

Number of cycles observed

Allowance fraction= fraction of time for personal

needs, unavoidable work delays, fatigue

Work Measurement- Work Sampling

Purpose:
To estimate what proportion of a workers 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

Work Measurement- Work Sampling

Formulas
Proportion of
Time Employee
Performance
Total Study Time * Observed Working * Rating
Normal Time=
Factor
Number of Units Produced

Proportional of
=
Time Employee
Observed Working
Or

Number of observations in which working occurred

Number of Observations
x

P=

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 = 1.05
Number of Units Produced = 100
Normal Time: = (37.5*0.83*1.05)/100
= 1/3 (hours)
= 20 (min)

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

Work MeasurementPredetermined 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

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

Productivity
Productivity =

Units produced
Input used

Measure of process improvement

Represents output relative to input
Only through productivity increases
can our standard of living improve

Productivity Calculation
Labour Productivity
Productivity =

Units produced
Labour-hours used
1,000
=
= 4 units/labour-hour
250

One resource input single-factor productivity

Example

Multi-Factor Productivity
Productivity =

Output
Labor + Material + Energy +
Capital + Miscellaneous

Also known as total factor productivity

Output and inputs are often expressed in
dollars

Multiple resource inputs multi-factor productivity

Example

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

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

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

Conclusion