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(1)

Operations

Operations

Management

Management

Work Measurement

Work Measurement

Supplement 10

Supplement 10

(2)

Outline

Outline

Labor Standards and Work

Measurement

Historical Experience

Time-Studies

Predetermined Time Standards

(3)

Learning Objectives

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

(4)

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

Uses of Labor

Uses of Labor

Standards

(5)

Historical experience

Time studies

Predetermined time

standards (MTM)

Work sampling

© 1995 Corel Corp.

Sources of Labor

Sources of Labor

Standards

Standards

(6)

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

Time Studies

(7)

The Eight Steps to

The Eight Steps to

Conducting a Time Study

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

(8)

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 a total normal

time for the task

Compute the standard time:

The Eight Steps to

The Eight Steps to

Conducting a Time

Conducting a Time

Study - continued

Study - continued

Standard time =

Total normal time

1- Allowance factor

(9)

Allowances

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.

(10)

Time Studies - Sample

Time Studies - Sample

Size

Size

2

=

x

h

zs

n

,

size

Sample

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

sample

x = mean of the initial sample

(

)

1

=

2

n

x

x

s

:

Note

i

(11)

Considerations in

Considerations in

Determining Sample

Determining Sample

Size

Size

How accurate do you want to

be?

What level of confidence do

you want your measurements

to have?

How much variation exists

(12)

Common z values

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

(13)

Allowance factor

Nonwork time

Total time

Average element time

Σ

Element times

Number of cycles

Normal timeAverage element time * Perf. Rating

Standard time

Total normal time

1 - Allowance factor

=

=

=

=

Time Study Equations

(14)

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

Predetermined Time

Predetermined Time

Standards

(15)

Time TMU

Hand in

Motion

Distance

Moved (in)

A

B

C

A

B

3/4 or less 2.0

2.0

2.0

1.6

1.6

1

2.5

2.5

3.6

2.3

2.3

2

4.0

4.0

5.9

3.5

2.7

A Reach to object in fixed location.

B Reach to object in variable

locations.

1 TMU = .

0006

minutes

MTM Table for Reach

MTM Table for Reach

Motion

(16)

Sample MTM Table for

Sample MTM Table for

GET and PLACE

GET and PLACE

Motions

(17)

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

Work Sampling

(18)

Used for

Ratio delay studies

Setting labor standards

Measuring worker performance

Work Sampling

(19)

The Seven Step

The Seven Step

Work Sampling

Work Sampling

Procedure

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;

(20)

The Seven Step

The Seven Step

Work Sampling Procedure -

Work Sampling Procedure -

continued

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

(21)

Work Sampling -

Work Sampling -

Sample Size

Sample Size

(

)

2

2

1

=

h

p

p

z

n

p = estimated value of

sample proportion (of time

worker is observed busy or

idle)

h = accuracy level desired in

percent, expressed as a

(22)

Normal Time =

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

Number of units Produced

Standard Time =

Normal Time

1 - Allowance

Work Sampling

Work Sampling

Equations

(23)

Figure S10.3

References

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