Operations

Management
Work Measurement
Supplement 10

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-1
Management, 7e
 Outline

 LABOR STANDARDS AND WORK

MEASUREMENT
 HISTORICAL EXPERIENCE
 TIME-STUDIES
 PREDETERMINED TIME STANDARDS
 WORK SAMPLING

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-2
Management, 7e
 Learning Objectives
When you complete this supplement, you should
be able to :
Identify or Define:
 Four ways of establishing labor standards
Describe or Explain:
 Requirements for good labor standards
 Time study
 Predetermined time standards
 Work sampling

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-3
Management, 7e
 Uses of Labor Standards
 Costing labor content of products
 Planning staffing needs
 Estimating time and cost for bids
 Planning production (crew size and work balance)
 Estimating expected production
 Basing wage-incentive plans
 Determining employee efficiency

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-4
Management, 7e
 Sources of Labor Standards

 Historical experience
 Time studies
 Predetermined time
standards (MTM)
 Work sampling

© 1995
Corel
Corp.

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-5
Management, 7e
 Historical Experience

 Relatively easy, convenient, and inexpensive

 Not objective, unknown accuracy

Not recommended

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-6
Management, 7e
 Time Studies

 Labor standards are based on observing worker

doing task
 Observe only a sample of work
 Use average time & pace to set standard
 Disadvantages
 Requires a trained & experienced analyst
 Standard cannot be set before task is performed

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-7
Management, 7e
 The Eight Steps to Conducting a
Time Study
1. Define the task to be studied (after a methods analysis)
2. Break down the task into precise elements
3. Decide how many times each element of the task must
be measured
4. Record the times and ratings of
performance for the task elements
5. Compute the average observed cycle time (element
times adjusted for unusual influences)

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-8
Management, 7e
 The Eight Steps to Conducting a
Time Study - continued
6. Compute the normal time for each task element:
Normal time = (Average actual cycle time)
x (Rating factor)
7. Sum the normal times for each element to
develop a total normal time for the task
8. Compute the standard time:

Standard time = Total normal time

1- Allowance factor

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-9
Management, 7e
 Allowances
 Personal time allowance - 4% - 7% of total time -
use of restroom, water fountain, etc.
 Delay allowance - based upon actual delays that
occur
 Fatigue allowance - to compensate for physical or
mental strain, noise level, tediousness, heat and
humidity, assumption of an abnormal position, etc.

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-10
Management, 7e
 Rest Allowances (%) for Various
Classes of Work
1. Constant allowance
(a) Personal allowance ……………... 5
(b) Basic fatigue allowance ………… 4
2.Variable allowances:
(A) Standing allowance …………….. 2
(B) Abnormal position
(I) Awkward (bending) …………. 2
(ii) Very awkward (lying,
stretching) …………………….. 7
(C) Use of force or muscular energy
in lifting, pulling, pushing
Weight lifted (pounds)
20 ………………………………… 3
40…………………………………. 9
60…………………………………. 17
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-11
Management, 7e
 Rest Allowances (%) for Various
Classes of Work - Continue
(D) Bad light
(i) Well below recommended ….. 2
(ii) Quite inadequate ……………. 5
(E) Atmospheric conditions (heat
and humidity)
Variable ………………………….. 1-10
(F) Close attention
(i) Fine or exacting ……………… 2
(ii)Very fine or very exacting …... 5
(G) Noise level
(i) Intermittent – loud …………… 2
(ii) Intermittent – very loud or
high-pitched 5
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-12
Management, 7e
 Rest Allowances (%) for Various
Classes of Work - Continue
(H) Mental strain
(i) Complex or wide span of
attention ……………………… 4
(ii) Very complex ……………. 4
(I) Tediousness
(i) Tedious ……………………. 2
(ii) Very tedious ……………… 5

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-13
Management, 7e
 Time Studies - Sample Size

 zs 
Sample size , n   
 hx 
h = accuracy level desired as percent of job element,
expressed as a decimal (5% = 0.05)
z = number of standard deviations required for the
desired level of confidence
s = standard deviation of the initial sample
x = mean of the initial sample

 i
x  x 2

Note : s 
n 1

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-14
Management, 7e
 Considerations in Determining
Sample Size

1. How accurate do you want to be?

2. What level of confidence do you want your
measurements to have?
3. How much variation exists within the job
elements?

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-15
Management, 7e
 Common z values

Desired Confidence Z Value

Level (%)
90.11 1.65
95.00 1.96
95.45 2.00
99.11 2.58

99.0
99.73 3.00

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-16
Management, 7e
 Time Study Equations
Nonwork time
Allowance factor =
Total time
 Element times
Average element time =
Number of cycles
Normal time = Average element time * Perf. Rating
Total normal time
Standard time =
1 - Allowance factor
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-17
Management, 7e
 Predetermined Time Standards

 Labor standards are set from times in published tables

(e.g., MTM Table)
 Procedure
 Divide manual work into basic elements
 Look up basic element times in table; sum

 Advantages
 Times established in laboratory setting
 Useful for planning tasks
 Widely accepted by unions

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-18
Management, 7e
 MTM Table for Reach Motion

Time TMU Hand in

Motion
Distance A B C A B
Moved (in)
3/4 or less 2.0 2.0 2.0 1.6 1.6
1 2.5 2.5 3.6 2.3 2.3
2 4.0 4.0 5.9 3.5 2.7

A Reach to object in fixed location. 1 TMU = .0006

B Reach to object in variable locations. minutes
C Reach to object jumbled with others.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-19
Management, 7e
 Sample MTM Table for GET and
PLACE Motions

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-20
Management, 7e
 MTM-HC Analysis: Pouring Tube
Specimen
Element Description Element Time
Get tube from rack AA2 35
Get stopper, place on AA2 35
counter
Get centrifuge tube, place at AD2 45
sample tube
Pour (3 sec.) PT 83
Place tubes in rack (simo) PC2 40
0.0006*238=Total standard Total 238
minutes = 0.14 TMU
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-21
Management, 7e
 Work Sampling
 Labor standard is set using output and % of time
worker spends on tasks
 Involves observing worker at random times over a
long period
 Advantages
 Less expensive than time studies
 Observer requires little training
 Disadvantages
 Ineffective with short cycles

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-22
Management, 7e
 Work Sampling
 Used for
 Ratio delay studies
 Setting labor standards
 Measuring worker performance

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-23
Management, 7e
 The Five Step
Work Sampling Procedure
1. Take a preliminary sample to obtain an
estimate of the parameter value
2. Compute the sample size required
3. Prepare a schedule for observing the
worker at appropriate times
4. Observe and record worker activities; rate worker
performance
5. Determine how workers spend their time (usually as a
percent)

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-24
Management, 7e
 Work Sampling - Sample Size

z  p  p 
n
h

p = estimated value of sample proportion

(of time worker is observed busy or idle)
h = accuracy level desired in percent,
expressed as a decimal

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-25
Management, 7e
 Work Sampling Equations

(Total Time) (% of time working) (Rating)

Normal Time =
Number of units Produced

Standard Time = Normal Time

1 - Allowance

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-26
Management, 7e
 Work Sampling Time Studies

Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations S10-27
Management, 7e