Work measurement and productivity

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Work Measurement and Productivity Presented by: MD. NAZIR ANSARI ANSHUL GARG

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Transcript of Work measurement and productivity

Page 1: Work measurement and productivity

Work Measurement and Productivity

Presented by:

MD. NAZIR ANSARI

ANSHUL GARG

Page 2: Work measurement and productivity

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

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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

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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

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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

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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

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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

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How to Determine “Average Worker” Standard ? Example from Distribution of 100 Workers Sample

Number of Workers Sampled

Performance in Units

Per Hour Mean

5 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

5 30-34 32 *5% =1.6

100 Total = 22.5

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Work Measurement Time Study

Standards time=

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

Average cycle time=

Allowance fraction= fraction of time for personal needs, unavoidable work delays, fatigue

Normal time

(1-allowance)

Time recorded to perform an element

Number of cycles observed

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Work Measurement- Work Sampling

Purpose: To estimate what proportion of a worker’s 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

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Work Measurement- Work Sampling Formulas

Normal Time= Total Study Time *

Proportion of Time EmployeeObserved Working *

PerformanceRating Factor

Number of Units Produced

Proportional ofTime EmployeeObserved Working

=Number of observations in which working occurred

Number of Observations

OrP =

x

n

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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 = 1.05Number of Units Produced = 100

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

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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

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Work Measurement- Predetermined 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

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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

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Measure of process improvement Represents output relative to input Only through productivity increases

can our standard of living improve

Productivity =Units produced

Input used

Productivity

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Productivity =Units produced

Labour-hours used

= = 4 units/labour-hour1,000

250

Labour Productivity

One resource input single-factor productivity

Productivity Calculation

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Example

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Multi-Factor Productivity

OutputLabor + Material + Energy +

Capital + Miscellaneous

Productivity =

Also known as total factor productivity Output and inputs are often expressed in

dollars

Multiple resource inputs multi-factor productivity

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Example

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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

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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

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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

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Conclusion

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