F O U R T H E D I T I O N

Work PerformanceMeasurement

© The McGraw-Hill Companies, Inc., 2003

supplement 10

DAVIS

AQUILANO

CHASE

PowerPointPresentation

byCharlieCook

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–2

Supplement ObjectivesSupplement ObjectivesSupplement ObjectivesSupplement Objectives

• Introduce the more common types of work methods that are practiced in the workplace.

• Understand the fundamental issues involved in developing work measurements.

• Identify the basic elements associated with conducting a time study.

• Determine how to design a work sampling study and apply it to an actual operation.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–3

Work MethodsWork MethodsWork MethodsWork Methods

• Studying the production system to:–Identify non-valued-added time delays, transport

distances, process and processing time requirements

–Simplify the entire operation by eliminating any step that does not add value to the product.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–4

Work Methods and Design AidsWork Methods and Design AidsWork Methods and Design AidsWork Methods and Design Aids

Exhibit S10.1Exhibit S10.1

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–5

Flow Diagram and Process Chart of an Flow Diagram and Process Chart of an Office ProcedureOffice Procedure—Present Method*—Present Method*

Flow Diagram and Process Chart of an Flow Diagram and Process Chart of an Office ProcedureOffice Procedure—Present Method*—Present Method*

Exhibit S10.2aExhibit S10.2aSource: Ralph M. Barnes, Motion and Time Study, 8th ed. (New York: John Wiley & Sons, 1980), pp. 76–79. Reprinted by permission of John Wiley & Sons, Inc.

*Requisition is written by supervisor, typed by secretary, approved by superintendent, and approved by purchasing agent; then order is prepared by a stenographer.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–6

Flow Flow Diagram Diagram

and and Process Process

Chart of an Chart of an Office Office

ProcedureProcedure—Present —Present Method*Method*

Flow Flow Diagram Diagram

and and Process Process

Chart of an Chart of an Office Office

ProcedureProcedure—Present —Present Method*Method*

Exhibit S10.2bExhibit S10.2b

Source: Ralph M. Barnes, Motion and Time Study, 8th ed. (New York: John Wiley & Sons, 1980), pp. 76–79. Reprinted by permission of John Wiley & Sons, Inc.

*Requisition is written by supervisor, typed by secretary, approved by superintendent, and approved by purchasing agent; then order is prepared by a stenographer.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–7

Common Notation in Process ChartingCommon Notation in Process ChartingCommon Notation in Process ChartingCommon Notation in Process Charting

Exhibit S10.3Exhibit S10.3

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–8

Gilbreth’s Principles of Motion EconomyGilbreth’s Principles of Motion EconomyGilbreth’s Principles of Motion EconomyGilbreth’s Principles of Motion Economy

Exhibit S10.4aExhibit S10.4aSource: Frank C. Barnes, “Principles of Motion Economy: Revisited, Reviewed, and Restored,” Proceedings of the Southern Management Association Annual Meeting, Atlanta, GA, 1983, p. 298.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–9

Gilbreth’s Principles of Motion Economy Gilbreth’s Principles of Motion Economy (cont’d)(cont’d)

Gilbreth’s Principles of Motion Economy Gilbreth’s Principles of Motion Economy (cont’d)(cont’d)

Exhibit S10.4bExhibit S10.4bSource: Frank C. Barnes, “Principles of Motion Economy: Revisited, Reviewed, and Restored,” Proceedings of the Southern Management Association Annual Meeting, Atlanta, GA, 1983, p. 298.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–10

Worker-Worker-Machine Machine Chart Chart for a for a

Gourmet Gourmet Coffee Coffee HouseHouse

Worker-Worker-Machine Machine Chart Chart for a for a

Gourmet Gourmet Coffee Coffee HouseHouse

Exhibit S10.5aExhibit S10.5a

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–11

Worker-Machine Chart for a Worker-Machine Chart for a Gourmet Coffee House (cont’d)Gourmet Coffee House (cont’d)Worker-Machine Chart for a Worker-Machine Chart for a

Gourmet Coffee House (cont’d)Gourmet Coffee House (cont’d)

Exhibit S10.5bExhibit S10.5b

The customer, the clerk, and the coffee grinder (machine) are involved in this operation. It required 1 minute and 10 seconds for the customer to purchase a pound of coffee in this particular store.

During this time the customer spent 22 seconds, or 31% of the time giving the clerk his order. He was idle during the remaining 69% of the time. The clerk worked 49 seconds, or 30% of the time. The machine was in operation 21 seconds, or 30% of the time.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–12

Activity Chart Activity Chart of an of an

Emergency Emergency TracheotomyTracheotomy

Activity Chart Activity Chart of an of an

Emergency Emergency TracheotomyTracheotomy

Exhibit S10.6Exhibit S10.6

Source: Data taken from Harold E. Smalley and John Freeman, Hospital Industrial Engineering (New York: Reinhold, 1966), p. 490.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–13

Work MeasurementWork MeasurementWork MeasurementWork Measurement

• Work Measurement–The methodology used for establishing time

standards.

• Basic Industrial Engineering Methods–Time study–Elemental standard time data–Predetermined motion-time data–Work sampling

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–14

Types of Work Measurement Applied Types of Work Measurement Applied to Different Tasksto Different Tasks

Types of Work Measurement Applied Types of Work Measurement Applied to Different Tasksto Different Tasks

Exhibit S10.7Exhibit S10.7

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–15

Time StudyTime StudyTime StudyTime Study

• Time Study–The determination, with the use of a stopwatch,

of how long it takes to complete a task or set of tasks.

–Normal time = Observed performance time per unit x Performance rating

–Piece rate is the rate paid for work completed.–Break down tasks by:

• Defining each work element.

• Separating human work from machine work.

• Defining operator and machine delays separately.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–16

Elemental Standard-Time DataElemental Standard-Time DataElemental Standard-Time DataElemental Standard-Time Data

• Time Standard–The established time for completing a job, used

in determining labor costs associated with making a product.

–Steps• Breakdown the new job into its elements

• Match elements to the time for similar job-specific elements in the elemental table.

• Adjust elements for special characteristics of the new job.

• Add element times together and add delay and fatigue allowances.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–17

Predetermined Motion-Time DataPredetermined Motion-Time DataPredetermined Motion-Time DataPredetermined Motion-Time Data

• Predetermined Motion-Time Tables–Create a time standard for a job or task based

on standard times for basic motions (therbligs).–Can be applied to a wide-variety of tasks.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–18

Work SamplingWork SamplingWork SamplingWork Sampling

• Work Sampling–A statistical technique for estimating how

workers allocate their time among various activities throughout a workday.

–Issues involved:• What level of statistical confidence is desired in

the results?

• How many observations are necessary?

• When should the observations be made?

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–19

Work Sampling (cont’d)Work Sampling (cont’d)Work Sampling (cont’d)Work Sampling (cont’d)

• Determining the Required Number of Samples:

2

2 )1(

E

ppZN

N = Number of observations to be made

Z = Number of standard deviations associated with a given confidence level

p = Estimated proportion of time that the activitybeing measured occurs

E = Absolute error that is desired

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–20

Work Sampling (cont’d)Work Sampling (cont’d)Work Sampling (cont’d)Work Sampling (cont’d)

• Steps in Conducting a Work Sampling Study:–Identify the activities for study.–Estimate the proportion of time of the activity of

interest to the total time.–State the desired accuracy in the study results.–Determine the specific time when each

observation is to be made.–If using an estimated time, recompute the

required samples size at intervals during the study and adjust the number of observations.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–21

Assignment of Numbers to Assignment of Numbers to Corresponding MinutesCorresponding Minutes

Assignment of Numbers to Assignment of Numbers to Corresponding MinutesCorresponding Minutes

Exhibit S10.8Exhibit S10.8

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–22

Determination of Observation TimesDetermination of Observation TimesDetermination of Observation TimesDetermination of Observation Times

Exhibit S10.9Exhibit S10.9

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–23

Observation ScheduleObservation ScheduleObservation ScheduleObservation Schedule

Exhibit S10.10Exhibit S10.10

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 S10–24

Financial Incentive PlansFinancial Incentive PlansFinancial Incentive PlansFinancial Incentive Plans

• Basic Compensation Systems–Hourly pay–Straight salary–Piece rate–Commissions

• Individual or Small-Group Plans• Organizational Plans

–Profit sharing–Gainsharing