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Work measurement and productivity

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Work measurement and productivity

  1. 1. WorkMeasurementandProductivity Presented by: MD. NAZIR ANSARI ANSHUL GARG
  2. 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. 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. 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. 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. 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. 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. 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. 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. 10. Work Measurement- WorkSampling 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. 11. Work Measurement- Work Sampling Formulas Proportion of Time Employee Performance Total Study Time * Observed Working * Rating FactorNormal 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. 12. Work Measurement- Work Sampling FormulasExample: N= 100 (observations) X= 83 (sampled worker is working) P= 83/100 = 0.83Given: Total Study Time = 37.5 (hours) Rating Factor = 1.05 Number of Units Produced = 100Normal Time: = (37.5*0.83*1.05)/100 = 1/3 (hours) = 20 (min)
  13. 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. 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. 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. 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. 17. Productivity Calculation Labour Productivity Units produced Productivity = Labour-hours used 1,000 = = 4 units/labour-hour 250One resource input  single-factor productivity
  18. 18. Example
  19. 19. Multi-Factor Productivity Output Productivity = Labor + Material + Energy + Capital + Miscellaneous  Also known as total factor productivity  Output and inputs are often expressed in dollarsMultiple resource inputs  multi-factor productivity
  20. 20. Example
  21. 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. 22. Key Variables for ImprovedLabor 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. 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. 24. Conclusion

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