Work measurement and productivity
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Work measurement and productivity are important concepts for evaluating labor performance and improving efficiency. Key aspects include: 1) Establishing work standards through techniques like time studies and work sampling to measure average worker performance. 2) Comparing individual, department, and plant performance to standards to evaluate efficiency and compensation. 3) Using work standards to estimate costs, schedule operations, and plan workforce needs. 4) Improving productivity over time through factors like capital investment, management practices, worker skills and education.
Work measurement and productivity
- 1. Work Measurement and Productivity Presented by: MD. NAZIR ANSARI ANSHUL GARG
- 2. 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
- 3. 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
- 4. 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
- 5. 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
- 6. 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
- 7. 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
- 8. How to Determine “Average Worker” Standard ? Example from Distribution of 100 Workers Sample Number of Performance in Units Workers Sampled 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
- 9. 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
- 10. 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
- 11. Work Measurement- Work Sampling Formulas Proportion of Time Employee Performance Total Study Time * Observed Working * Rating Factor Normal Time= Number of Units Produced Proportional of Number of observations in which working occurred Time Employee = Observed Working Number of Observations x Or P= n
- 12. 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)
- 13. 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
- 14. 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
- 15. 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
- 16. Productivity Units produced Productivity = Input used Measure of process improvement Represents output relative to input Only through productivity increases can our standard of living improve
- 17. Productivity Calculation Labour Productivity Units produced Productivity = Labour-hours used 1,000 = = 4 units/labour-hour 250 One resource input single-factor productivity
- 18. Example
- 19. Multi-Factor Productivity Output Productivity = 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
- 20. Example
- 21. 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
- 22. 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
- 23. 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
- 24. Conclusion