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.

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