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F O U R T H E D I T I O N

Work PerformanceMeasurement

The McGraw-Hill Companies, Inc., 2003

supplement 10

DAVIS

AQUILANO

CHASE

PowerPoint

Presentation

by

Charlie

Cook


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Fundamentals of Operations Management 4e The McGraw-Hill Companies, Inc., 2003 S102

Supplement Objectives

Introduce the more common types of work methodsthat are practiced in the workplace.

Understand the fundamental issues involved in

developing work measurements.

Identify the basic elements associated with conducting

a time study.

Determine how to design a work sampling study and

apply it to an actual operation.


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Work Methods

Studying the production system to:Identify non-valued-added time delays, transport

distances, process and processing time

requirements

Simplify the entire operation by eliminating anystep that does not add value to the product.


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Work Methods and Design Aids

Exhibit S10.1


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Flow Diagram and Process Chart of an OfficeProcedurePresent Method*

Exhibit S10.2a

Source: Ralph M. Barnes, Motion and Time Study, 8th ed.

(New York: John Wiley & Sons, 1980), pp. 7679.

Reprinted by permission of John Wiley & Sons, Inc.

*Requisition is written by supervisor, typed by secretary, approved by superintendent,

and approved by purchasing agent; then order is prepared by a stenographer.


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FlowDiagram

andProcess

Chart ofan OfficeProcedurePresentMethod*

Exhibit S10.2b

Source: Ralph M. Barnes,

Motion and Time Study, 8th

ed. (New York: John Wiley &

Sons, 1980), pp. 7679.

Reprinted by permission of

John Wiley & Sons, Inc.

*Requisition is written

by supervisor, typed

by secretary,

approved by

superintendent, and

approved by

purchasing agent;

then order is prepared

by a stenographer.


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Common Notation in Process Charting

Exhibit S10.3


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Gilbreths Principles of Motion Economy

Exhibit S10.4aSource: Frank C. Barnes, Principles of Motion Economy: Revisited, Reviewed, and Restored, Proceedings

of the Southern Management Association Annual Meeting, Atlanta, GA, 1983, p. 298.


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Gilbreths Principles of Motion Economy (contd)

Exhibit S10.4b

Source: Frank C. Barnes, Principles of Motion Economy: Revisited, Reviewed, and Restored, Proceedings

of the Southern Management Association Annual Meeting, Atlanta, GA, 1983, p. 298.


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Worker-Machine

Chartfor a

GourmetCoffeeHouse

Exhibit S10.5a


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Worker-Machine Chart for aGourmet Coffee House (contd)

Exhibit S10.5b

The customer, the clerk, and the coffee grinder (machine) are involved

in this operation. It required 1 minute and 10 seconds for the customer

to purchase a pound of coffee in this particular store.

During this time the customer spent 22 seconds, or 31% of the time

giving the clerk his order. He was idle during the remaining 69% of the

time. The clerk worked 49 seconds, or 30% of the time. The machine

was in operation 21 seconds, or 30% of the time.


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Activity Chart

of anEmergency

Tracheotomy

Exhibit S10.6

Source: Data taken from

Harold E. Smalley and

John Freeman, Hospital

Industrial Engineering

(New York: Reinhold,

1966), p. 490.


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Work Measurement

Work MeasurementThe methodology used for establishing time

standards.

Basic Industrial Engineering Methods

Time study

Elemental standard time data

Predetermined motion-time data

Work sampling


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Types of Work Measurement Appliedto Different Tasks

Exhibit S10.7


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Time Study

Time StudyThe determination, with the use of a stopwatch,

of how long it takes to complete a task or set of

tasks.

Normal time = Observed performance time perunit x Performance rating

Piece rate is the rate paid for work completed.

Break down tasks by:

Defining each work element.

Separating human work from machine work.

Defining operator and machine delays separately.


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Elemental Standard-Time Data

Time StandardThe established time for completing a job, used

in determining labor costs associated with

making a product.

Steps Breakdown the new job into its elements

Match elements to the time for similar job-specific

elements in the elemental table.

Adjust elements for special characteristics of thenew job.

Add element times together and add delay and

fatigue allowances.


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Predetermined Motion-Time Data

Predetermined Motion-Time TablesCreate a time standard for a job or task based

on standard times for basic motions (therbligs).

Can be applied to a wide-variety of tasks.


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Work Sampling

Work SamplingA statistical technique for estimating how

workers allocate their time among various

activities throughout a workday.

Issues involved: What level of statistical confidence is desired in

the results?

How many observations are necessary?

When should the observations be made?


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Work Sampling (contd)

Determining the Required Number ofSamples:

2

2 )1(

E

ppZN

N= Number of observations to be made

Z= Number of standard deviations associated

with a given confidence level

p= Estimated proportion of time that the activity

being measured occurs

E= Absolute error that is desired


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Work Sampling (contd)

Steps in Conducting a Work Sampling Study:Identify the activities for study.

Estimate the proportion of time of the activity of

interest to the total time.

State the desired accuracy in the study results.

Determine the specific time when each

observation is to be made.

If using an estimated time, recompute the

required samples size at intervals during thestudy and adjust the number of observations.


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Assignment of Numbers toCorresponding Minutes

Exhibit S10.8


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Determination of Observation Times

Exhibit S10.9


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Observation Schedule

Exhibit S10.10


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Financial Incentive Plans

Basic Compensation SystemsHourly pay

Straight salary

Piece rate

Commissions

Individual or Small-Group Plans

Organizational Plans

Profit sharingGainsharing

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