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  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Operations Management

    Work MeasurementSupplement 10

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*OutlineLABOR STANDARDS AND WORK MEASUREMENTHISTORICAL EXPERIENCETIME-STUDIESPREDETERMINED TIME STANDARDSWORK SAMPLING

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Learning ObjectivesWhen you complete this supplement, you should be able to : Identify or Define: Four ways of establishing labor standardsDescribe or Explain:Requirements for good labor standardsTime studyPredetermined time standardsWork sampling

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Costing labor content of productsPlanning staffing needsEstimating time and cost for bidsPlanning production (crew size and work balance)Estimating expected productionBasing wage-incentive plansDetermining employee efficiencyUses of Labor Standards

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Historical experienceTime studiesPredetermined time standards (MTM)Work sampling 1995 Corel Corp.Sources of Labor Standards

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Historical ExperienceRelatively easy, convenient, and inexpensiveNot objective, unknown accuracy

    Not recommended

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Labor standards are based on observing worker doing taskObserve only a sample of workUse average time & pace to set standardDisadvantagesRequires a trained & experienced analystStandard cannot be set before task is performedTime Studies

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*The Eight Steps to Conducting a Time StudyDefine the task to be studied (after a methods analysis)Break down the task into precise elementsDecide how many times each element of the task must be measuredRecord the times and ratings of performance for the task elementsCompute the average observed cycle time (element times adjusted for unusual influences)

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*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 taskCompute the standard time:The Eight Steps to Conducting a Time Study - continued

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*AllowancesPersonal time allowance - 4% - 7% of total time - use of restroom, water fountain, etc.Delay allowance - based upon actual delays that occurFatigue allowance - to compensate for physical or mental strain, noise level, tediousness, heat and humidity, assumption of an abnormal position, etc.

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Rest Allowances (%) for Various Classes of Work1. Constant allowance(a) Personal allowance ...(b) Basic fatigue allowance 2.Variable allowances:(A) Standing allowance ..(B) Abnormal position(I) Awkward (bending) .(ii) Very awkward (lying, stretching) ..(C) Use of force or muscular energy in lifting, pulling, pushingWeight lifted (pounds)20 40.60.

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    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Rest Allowances (%) for Various Classes of Work - Continue(D) Bad light(i) Well below recommended ..(ii) Quite inadequate .(E) Atmospheric conditions (heat and humidity)Variable ..(F) Close attention(i) Fine or exacting (ii)Very fine or very exacting ...(G) Noise level(i) Intermittent loud (ii) Intermittent very loud or high-pitched

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    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Rest Allowances (%) for Various Classes of Work - Continue(H) Mental strain(i) Complex or wide span of attention (ii) Very complex .(I) Tediousness(i) Tedious .(ii) Very tedious

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    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Time Studies - Sample Size

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Considerations in Determining Sample SizeHow 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?

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Common z values

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Allowance factor Nonwork timeTotal timeAverage element time Element timesNumber of cyclesNormal timeAverage element time * Perf. RatingStandard timeTotal normal time1 - Allowance factor====Time Study Equations

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Labor standards are set from times in published tables (e.g., MTM Table)ProcedureDivide manual work into basic elementsLook up basic element times in table; sumAdvantagesTimes established in laboratory settingUseful for planning tasksWidely accepted by unionsPredetermined Time Standards

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Time TMUHand inMotionDistanceMoved (in)ABCAB3/4 or less2.02.02.01.61.612.52.53.62.32.324.04.05.93.52.7A Reach to object in fixed location. B Reach to object in variable locations. C Reach to object jumbled with others.1 TMU = .0006 minutesMTM Table for Reach Motion

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Sample MTM Table for GET and PLACE Motions

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*MTM-HC Analysis: Pouring Tube Specimen

    Element DescriptionElementTimeGet tube from rackAA235Get stopper, place on counterAA235Get centrifuge tube, place at sample tubeAD245Pour (3 sec.)PT83Place tubes in rack (simo)PC2400.0006*238=Total standard minutes = 0.14Total TMU 238

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Labor standard is set using output and % of time worker spends on tasksInvolves observing worker at random times over a long periodAdvantagesLess expensive than time studiesObserver requires little trainingDisadvantagesIneffective with short cyclesWork Sampling

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Used forRatio delay studiesSetting labor standardsMeasuring worker performanceWork Sampling

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*The Five Step Work Sampling ProcedureTake a preliminary sample to obtain an estimate of the parameter valueCompute the sample size requiredPrepare a schedule for observing the worker at appropriate timesObserve and record worker activities; rate worker performanceDetermine how workers spend their time (usually as a percent)

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Work Sampling - Sample Sizep = estimated value of sample proportion (of time worker is observed busy or idle)h = accuracy level desired in percent, expressed as a decimal

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Normal Time =(Total Time) (% of time working) (Rating)Number of units ProducedStandard Time =Normal Time1 - AllowanceWork Sampling Equations

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  • Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S10-*Work Sampling Time Studies

    2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

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