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Work Study and Methods Engineering (3+1) : Course Title

This document discusses productivity and work measurement. It defines productivity as the ratio of output to input. Productivity improvement occurs through managing transformation processes. Productivity is measured at different levels from individual to global. At the global level, productivity measures national competitiveness and helps with policy and investment decisions. A nation's productivity depends on factors like education, technology, policies and culture. Methods analysis and time studies are used to determine labor standards and set work norms. Work sampling involves observing a worker's activities over time.

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sajid mughal
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Download as PDF, TXT or read online on Scribd
40 views

Work Study and Methods Engineering (3+1) : Course Title

This document discusses productivity and work measurement. It defines productivity as the ratio of output to input. Productivity improvement occurs through managing transformation processes. Productivity is measured at different levels from individual to global. At the global level, productivity measures national competitiveness and helps with policy and investment decisions. A nation's productivity depends on factors like education, technology, policies and culture. Methods analysis and time studies are used to determine labor standards and set work norms. Work sampling involves observing a worker's activities over time.

Uploaded by

sajid mughal
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Course Title

Work Study and Methods Engineering (3+1)


Department of Industrial Engineering & Management
Batch 2018
Lecture 4
Productivity and Work Measurement
(Importance of productivity and work design)

1
Productivity
• One of the most important responsibilities of an operations manager is
to achieve productive use of organization’s resources.

• Productivity is an index that measures output (goods and services)


relative to the input (capital, labor, materials, energy, and other
resources) used to produce them.

• It is usually expressed as the ratio of output to input:

𝑜𝑢𝑡𝑝𝑢𝑡
• 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝑖𝑛𝑝𝑢𝑡

2
System concept of Productivity

3
Productivity Improvement
• Productivity Improvement (PI) is the result of managing and intervening
in transformation or work processes.

• PI will occur if:

4
Application of Productivity Measures
It is down to up approach:

• Individual level

• Group level

• Department level

• Corporate level

• National level

• Global level

5
Global-Level Productivity
• Why are global-level productivity measures important?

• How do we compare productivity among nations?

• How can a nation increase productivity in a global economy?

6
Importance of Global-Level Productivity Measures
• Measure and compare competitiveness among nations.

• Contribute to the development of a nation’s economic, social, and


political policies.

• Develop global cooperation among nations.

• Help business organizations make investment decisions.

7
Factors Affecting Productivity Improvement at Global Level

• Education
• Technology
• Macroeconomic policies
• Social and culture environments
• Foreign aids
• Foreign investments
• Industry policies & competition

8
Why is National Productivity Important?

• To compete with international level.


• At the national level, growing productivity
• leads to a higher standard of living
• holds inflation in check
• enhances international competitiveness.

• The annual GDP growth is partially due to


• growth in productivity
• Growth (-) in inflation
• *GDP = Gross domestic product
9
National Productivity Measures

• Comparisons within a segment of economy over time

• Comparisons of specific productivity measures

• International comparisons

• Labor Productivity - Percent Change from Previous Year

10
Variables Affecting Labor Productivity

• Physical work environment


• Technology, equipment, materials, lighting, layout

• Product quality
• Defects, scrap, rework

• Employee job performance


• Employee ability, motivation

11
Employee Job Performance

• Behavioral scientists believe that


individuals are motivated to act in a
certain way by a desire to satisfy
certain needs.

12
Methods Analysis and Improvement
• Specifying the tasks and responsibilities of a job is only the first step in the
job design process.

• The next step is to determine how to perform the tasks, that is, determine
the best work methods.

• Best work methods are:


• the most efficient physical movements of the worker,

• the best sequence in which to perform movements or tasks, and

• the best way to coordinate the workers actions with those of machines and other
workers.
13
Methods Analysis and Improvement

• Methods Analysis

• Work Measurement

• Labor Standards

• Time Study

14
Determining Labor Standards from Time Studies

15
Example: Time Study Approach

• In a time study of a manufacturing operation, the


average time observed to complete a product was 8.6
minutes. The performance rating applied to the
observed worker was 0.95 and the allowance during
an 8-hour shift was 12.5% or 60 minutes.

• Compute the labor standard.


16
Example: Time Study Approach
• Observed time = 8.6 minutes

• Performance rating = 0.95

• Allowance fraction = 0.125

• Normal time = Observed time x Performance rating

= 8.6 x 0.95

= 8.17 minutes

• Standard Time = Normal time / (1 - Allowance)

= 8.17 / (1 - 0.125)

= 8.17 / (0.875)

= 9.337 minutes
17
Work Sampling

• Job performed by a single worker in a fixed location


• Job involves repetitive short cycles
• Job expected to be changed periodically as customer
orders change
• Job produces relatively small quantities of output
• Resulting time standard used for accounting cost
standard, pricing analysis, and production planning
18
Example: Work Sampling
• A work sampling study was performed on an electronic assembly operation at OK
Instruments. The study covered an 8-hour shift with a single worker. The results of the
study were:

Activity % of Worker’s Time

Assemble Units 80

Allowances 20

• If the worker received a performance rating of 1.20 on the Assemble Units activity and
400 units were assembled during the study, what is the labor standard for this operation?

19
Example: Work Sampling

20
Questions

21

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