This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/robust-production-management-rpm-module-4-time-studies-462 Managers miss the boat when trying to boost team performance by deriving task rates based on how the team's currently performing. The "trick" to getting the most from your team members is setting challenging but achievable process task rates (= establishing process capability). Robust Production Management (RPM) Module 4 "Time Studies" will show you how to drive performance results and reduce costs using "capacity" instead of "quota." Don't hire a pricey consultant or invest in an expensive software package to establish task capacity rates till you look through RPM Module 4 first - chances are, you can do the same work faster, easier and MUCH more cost effectively. Module includes time study and task rate estimator templates. "Time Studies" is the fourth module in the Metrilogics RPM management training series - more on the way.

1. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Robust Production Management
Metrilogics
Front-line controls for bottom-line savings.
TM
SM
Module 4:
Time Studies
By Lance Latham
Senior Managing Partner

2. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Definition of a Time Study
Time Studies provide an objective method for determining
meaningful work-to-time relationships for a given task, including:
The resulting hourly rates represent task process capacity (see
Module #3). These – in turn – lay the groundwork for establishing
measurable, challenging but achievable base-line performance
targets for each task a team member performs.
v Number of quality work units that can be completed per direct
hour
v Average amount of time per quality work unit completed
Time studies are conducted through extended first-hand
observation of a skilled, conscientious and motivated
subject matter expert (SME).
2
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3. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Step 1: Task Definition / Set-Up
v Identify process task to be observed.
v Identify skilled, conscientious and motivated subject matter
expert (SME) to be observed.
v Confirm ‘start’ and ‘end’ task points with SME.
v Review with SME an example of the process task prior to the
observation.
v Confirm primary unit of measure (i.e., the ‘thing’ to be counted).
v If necessary, confirm a secondary unit of measure.
5
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4. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Step 2: Observation Rough Draft Documentation (cont.)
Time Study Header:
Descriptive info. completed by
Observer prior to task
observation.
Time Study Body:
Detailed process data and info.
documented by Observer
during the course of the task
observation.
Time Study Summary:
Quantified observation data
automatically calculated by
electronic Time Study
template.
8
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5. Step 2: Observation Rough Draft Documentation (cont.)
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Time Study Summary (Bottom Section)
14
Total minutes, primary UOM and secondary
UOM counts automatically total in the
electronic Time Study template.
15
Based on total
minutes and total
UOM counts, the
‘units per hr.’ value
is automatically
calculated for both
primary and
secondary units of
measure
documented within
the electronic Time
Study template.
15
16
The formula for this value for
both primary and secondary
units of measure is:
60 min. / ‘units per hour’ value.
These 2 values are
automatically calculated within
the electronic Time Study
template.
16
11
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6. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Step 3: Final Draft (cont.)
Continued
example of a
completed
Time Study
(bottom portion
of page 7 of 7).
14
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7. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of a Task Rate Estimator Template
For some tasks, it may be difficult or impractical to conduct a
detailed Time Study to establish process capacity rates. For example :
v A task may be performed infrequently - say, just 2 or 3 times a year, at
year end only.
v A task might have multiple steps that are carried out over weeks or
months, with extended multi-day interruptions between steps.
v Tasks may be performed by SME’s in remote geographic locations,
making travel to conduct a first-hand onsite Time Study observation too
costly or time-consuming.
In such cases, a task capacity rate estimation can be derived through
facilitated discussion with a given task’s SME. While this approach is less
desirable than gathering first-hand process data through a detailed Time
Study, it can – nonetheless – provide a reliable set of values that garner a
high level of team member and management buy-in.
17
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8. Example of a Task Rate Estimator Template (cont.)
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Logistics / Supply Chain Example
20
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9. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Module 4 Summary
v A Time Study is an objective approach used to establish work-to-time
relationships for tasks performed in virtually any operating environment
(manufacturing, logistics / supply chain, financial services, IT, etc.).
v It is extremely important for an Observer to gain a preliminary
understanding of a process task prior to beginning a detailed Time Study.
v In the absence of detailed Time Study data, a task’s hourly capacity
rate can be reliably estimated via facilitated discussion with a SME.
v Validation of a given Time Study (i.e., its duration, the number of
finished process tasks observed, and the representative nature of the
work mix) by observed SME’s and their supervisors is necessary in
order to confirm a task’s hourly capacity rate and achieve team buy-in.
v Observers must take detailed notes during a Time Study, without
interrupting the SME or interfering with the normal task process.
23
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