Introduction to Work Measurement

Sections:
1. Time Standards and How They Are
Week 5 Determined
2. Prerequisites for Valid Time Standards
3. Allowances in Time Standards
4. Accuracy, Precision, and Speed of
Application in Work Measurement
 Time Is Important
 Most workers are paid for their time on the job
 The labor content (cost of labor time) is often a
major factor in the total cost of a product or
service
 For any organization, it is important to know
how much time will be required to accomplish a
given amount of work
 Some Definitions
 Work measurement – evaluation of a task in
terms of the time that should be allowed by an
average worker to perform the task
 Standard time – amount of time that should be
allowed for an average worker to process one
work unit using the standard method and
working at normal pace
 Time study – all the ways in which time is
analyzed in work situations
When Are Time Standards Beneficial?
 Characteristics of industrial situations in which
time standards would be beneficial

 Low productivity: If the current level of

productivity is low, then there are significant
opportunities for improvement.
 Repeat orders: Once the time standard is
set during the first order, the same standard
can be used for successive orders.
 When Are Time Standards Beneficial?

 Characteristics of industrial situations in which time

standards would be beneficial
 Long production runs: A long production run means
that the time invested to set the standard is
apportioned over more parts, thus reducing the
average cost of work measurement.
 Repetitive work cycles: Work measurement can be
justified more readily when the work cycle is highly
repetitive.
 Short cycle times: Short work cycles require less
time to set standards.
 Functions of Time Standards
 They define a “fair day’s work”
 They provide a means to convert workload into
staffing and equipment needs
 They allow alternative methods to be
compared objectively
 They provide a basis for wage incentives and
evaluation of worker performance
 They provide time data for:
 Production planning and scheduling
 Cost estimating
 Material requirements planning
Methods to Determine Time Standards
 Methods to Determine Time Standards

 Estimation:

 In this method, the department foreman or other person

familiar with the jobs performed in the department is
asked to judge how much time should be allowed for the
given task.
 On the other hand, it is better than making no estimate
of the time and simply assigning a worker to the task
with no accountability.
 Methods to Determine Time Standards

 Historical records
 In this method, the actual times and production quantities
from records of previous identical or similar job orders are
used to determine the time standards.
 From these records a calculation is made to determine the
average time per part, and this can be used as a “time
standard” for the next order.
 Methods to Determine Time Standards

 Historical records are an improvement over

estimates because they represent actual
times for amounts of work completed.
 Methods to Determine Time Standards

 Work measurement techniques.

These are the four techniques identified in the chapter
introduction:
 direct time study,
 predetermined motion time systems,
 standard data systems, and
 work sampling.
 Work Measurement Techniques
 Direct time study (DTS)
 Predetermined motion time system (PMTS)
 Performance rating is not required
 Can be applied to determine the time
standard for a task before production
 Standard data systems (SDS)
 Work sampling
 Direct time study (DTS)

 Direct time study (DTS) involves direct observation of a

task using a stopwatch or other chronometric device to
record the time taken to accomplish the task. The task is
usually divided into work elements and each work element
is timed separately.
 This evaluation of the worker’s pace is called performance
rating. The observed time is multiplied by the performance
rating to obtain the normal time for the element or the task
Task Hierarchy & Work Measurement
 Predetermined Motion Time Systems

 A predetermined motion time system (PMTS) relies on a

database of basic motion elements (therbligs) such as
reach, grasp, and move that are common to nearly all
manual industrial tasks.
 Associated with each motion element is a set of normal
times, whose values depend on the conditions under which
the motion element was performed. For example, the
normal time for a reach depends on the distance reached.
Longer distances take more time.
 Predetermined Motion Time Systems

 To use a predetermined motion time system to set a

standard time for a given task, the analyst lists all of the
basic motion elements that comprise the task, noting their
respective conditions, and retrieves the normal time for
each element from the database.
 The normal times for the motion elements are then
summed to obtain the normal time for the task.
 Finally, the standard time is calculated by adding a PFD
(personal time, fatigue, and delays) allowance.
 Predetermined Motion Time Systems

 This final step is the same as that expressed by equation

(2) for direct time study.

There are two advantages related to predetermined motion

time systems:
(1) performance rating is not required and
(2) they can be applied to determine the time standard for
a task before production.
 Standard Data Systems

 A standard data system (SDS) is a compilation of normal

time values for work elements used in tasks that are
performed in a given facility.
 These normal times are used to establish time standards
for tasks that are composed of work elements similar to
those in the database.
 Standard Data Systems

 The normal time values in a standard data system are

usually compiled from previous direct time studies, but they
may be based on predetermined motion time data, work
sampling data, or even historical time records.
 Large amounts of data are generally required to compile the
database, and the work elements are performed under
different work variables that may affect their normal time
values.
 Standard Data Systems

 To use a standard data system, the analyst first identifies

the work elements that make up the task together with the
values of the work variables respectively for each element.
He or she then accesses the database to find the normal
time for each element.
 The work element values are summed to determine the
normal time for the task. As in the other work measurement
techniques, an allowance is added to the normal time to
compute the standard time.
 Work Sampling

 Work sampling uses random sampling techniques to

study work situations so that the proportions of time
spent in different activities can be estimated with a
defined degree of statistical accuracy.
 Examples of the activities in a work sampling study
might include setting up for production, producing parts,
machine idle, and so on. The activities must be defined
specifically for the work situation that the study is
intended to address.
 Work Sampling

 A large number of observations over an extended period of

time are usually made in a work sampling study in order to
achieve the desired level of statistical accuracy.
 The period of the study must be representative of the
activities normally performed by the subjects, and the
observations must be made at random times in order to
minimize bias; for example, if the workers knew when the
observations would be made, it might influence their
behavior.
 Work Sampling

 The objectives in a work sampling study may be to

measure machine utilization in a plant or to determine an
appropriate allowance factor for use in setting standards in
direct time study.
 The objective is not always to determine time standards.
But when used to establish standards, the statistical errors
inherent in the sampling procedure cause the “time
standards” to be less accurate than those obtained by the
other work measurement techniques.
 Computerized Work Measurement
 Facilitates collection of data
 Performs routine computations
 Organizes time standards files and databases
 Retrieves data in predetermined motion time
systems and standard data systems
 Assists in the preparation of the documentation
 Methods descriptions
 Reports
Prerequisites for Valid Time Standards
Factors that must be standardized before a
time standard can be set
 Average Worker
A worker who is representative of the persons
who usually perform tasks similar to the task
being measured
 If the work is performed mostly by men, then
the average worker is male
 If the work is performed mostly by women, then
the average worker is female
 Standard Performance
A pace of working that can be maintained by an
average worker throughout an entire work shift
without harmful effects on the worker’s health
or physical well-being
 The work shift includes periodic rest breaks
and occasional interruptions are experienced
by the worker
 Benchmarks of standard performance:
 Walking at 3 miles/hr on level flat ground
 Dealing four hands of cards from a 52 card
deck in exactly 30 sec
 Distribution of Worker Performance
Worker performance is expressed in terms of
daily output
 More on Standard Performance
 Standard performance is commonly defined to
be a pace that can be readily attained by the
majority of workers
 A typical policy is to define standard
performance so that an average worker is
able to work at a pace that is 130% of that
pace
 Thus, most workers are able to easily
achieve standard performance
 How a Standard Time is Defined
Distribution of worker performance, indicating
how standard time is defined so that it can be
readily achieved by most workers
 Standard Method
 Must include all of the details on how the task
is performed, including:
 Procedure - hand and body motions
 Tools
 Equipment
 Workplace layout
 Irregular work
 Working conditions
 Setup
 Standard Work Units
 The time needed to process the work unit
depends on its starting condition
 Therefore this condition must be specified
 If the actual condition deviates from the
specification, then extra time may be
required to accomplish the task
 Exactly what changes are made in the work
unit by the task?
 What is the final state of the completed work
unit?
 Allowances in Time Standards
 Normal time is adjusted by an allowance factor
Apfd to obtain the standard time
 Purpose of allowance factor is to compensate for
lost time due to work interruptions and other
reasons
 Standard time:
Tstd = Tn(1 + Apfd)
where pfd = personal time, fatigue, and delays
 Reasons for Lost Time at Work
Work-related interruptions Non-work-related interruptions

 Machine breakdowns  Personal needs (e.g.,

 Waiting for materials or restroom breaks)
parts  Talking to co-workers about
 Receiving instructions from matters unrelated to work
foreman  Lunch break
 Talking to co-workers about  Smoke break
work-related matters  Beverage break
 Rest breaks for fatigue  Personal telephone call
 Cleaning up at end of shift
 How to Allow for Lost Time
 Two approaches used by companies:
1. Scheduled rest breaks during the shift
 Typical - one 15-minute break in mid-
morning and another in mid-afternoon
2. A PFD allowance is added to the normal
time
 This allows the worker to take a break
on his/her own time
 PFD Allowance
 Personal time
 Rest room breaks, phone calls, water
fountain stops, cigarette breaks (5% typical)
 Fatigue
 Rest allowance to overcome fatigue due to
work-related stresses and conditions (5% or
more)
 Delays
 Machine breakdowns, foreman instructions
(5% typical)
 Other Types of Allowances
 Contingency Allowance
 Additional allowance due to a problem with
the task (e.g., raw material problem ) - not
greater than 5%
 Temporary basis – solve the underlying
problem
 Policy allowance
 Machine allowance (set by company policy)
 Training allowance – for teaching new workers
 Learning allowance – learning a new task
 Contingency Allowances

Problem area Problems and examples

Materials or Starting materials or parts are out of specification, and extra time is
parts needed to correct the nonconformance (e.g., oversized casting that
requires an extra machining pass or slower feed rate).
Process Manufacturing process is not in statistical control (Section 10.2),
and additional time is required to inspect every piece rather than
inspect on a sampling basis.
Equipment Equipment is malfunctioning or breaking down more frequently
than what is provided by the unavoidable delay factor, and
additional time is needed to compensate the worker to make
adjustments, lubricate the machine more frequently, or other extra
task(s) not included in the standard time.
 Example: Use of Machine Allowance
in a Wage Incentive Plan

 A wage incentive plan pays workers a daily wage at a rate of

$15.00/hr multiplied by the number of standard hours
accomplished during the shift. One worker-machine task in
the plant includes worker-paced elements totaling a normal
time of 1.00 min and machine- paced elements with a time of
3.00 min. The PFD allowance is 15%. Determine the
standard time for the task given that (a) Am = 0 and (b) Am =
30%. (c) What does a worker earn for the day under each
policy if he or she produces 115 parts that day?
 Solution

 (a) Tstd= 1.00 (1 +0.15)+3.00 (1 + 0) = 1.15 + 3.00= 4.15

min.
 (b) Tstd=1.00 (1 + 0.15) + 3.00 (1 + 0.30)=1.15 + 3.90 = 5.05
min.
 (c) For the standard of 4.15 min, the number of standard
hours is Hstd = 115(4.15)/60 =7.95 hr and the worker’s
earnings would be $15.00 (7.95) =$119.25.6
 For Tstd = 5.05 min, Hstd = 115(5.05)/60 = 9.68 hr and the
worker’s earnings would be $15.00(9.68) = $145.19.
 Measurement
A procedure in which an unknown quantity is
compared to a known standard, using an
accepted and consistent system of units
 Important attributes of a measurement system:
 Accuracy
 Precision
 Speed of response
 Work measurement is a measurement process
 Accuracy and Precision
 Accuracy
 Freedom from systematic errors, which are
positive or negative deviations from the true
value that are consistent from measurement
to measurement
 Precision
 Repeatability of the measurement system
 Plus or minus three standard deviations
often used as a benchmark
Measurement Accuracy vs. Precision
 Accuracy in Work Measurement
 Accuracy is concerned with closeness to the true
value
 But what is the true value of a task time?
 Measurement is a procedure in which an
unknown quantity is compared with a known
standard
 But the known standard in work measurement
is the definition of standard performance used
by the company
 The standard is not based on time
 Precision in Work Measurement
 Precision is concerned with the expected
variability within a single time study
 Precision of a time standard is determined at a
certain reliability or confidence level
 For example, the standard time for a task is
4.00 min, and we are 95% confident that the
actual time is within 5% of that time
 Related term: Consistency – concerned with
variations in standard time values among
different time study analysts
Relative Accuracy of Time Standards
 Engineered Standards
 Time standards that are based on measured
time values that have been adjusted for worker
performance
 Some effort has been made to determine best
method to accomplish the task
 Application Speed Ratio
 Speed of application – how much time is
required to determine the time standard for a
given task
 Varies for different work measurement
techniques
 Application speed ratio = ratio of the time
required to set the standard divided by the
value of the time standard itself
 Typical values = 100 to 250
Relative Application Speed
 Problem-1

 The average observed time for a repetitive work cycle

in a direct time study was 3.27 min. The worker was
performance rated by the analyst at 90%. The
company uses a PFD allowance factor of 13%. What
is the standard time for this task?
 Solution-1
 Normal time Tn = 3.27(0.90) = 2.943 min
 Standard time Tstd = 2.943(1 + 0.13) = 3.326
min
 Problem-2

 The ABC Company uses a standard data system to set

time standards. One of the time study analysts listed the
three work elements for a new task to be performed in the
shop and then determined the normal time values to be
0.73 min, 2.56 min, and 1.01 min. The company uses a
PFD allowance factor of 16%. Determine the standard
time for the task.
 Solution-2
 Solution: Normal time Tn = 0.73 + 2.56 + 1.01
= 4.30 min
 Standard time Tstd = 4.30(1 + 0.16) = 4.988
min
 Problem-3

 In the ABC machine shop, workers punch in at 8:00 a.m.

and punch out at 4:30 p.m. The labor-management
agreement allows 30 min for lunch, which is not counted
as part of the 8-hour shift. In determining the allowance for
computing time standards, two 15 min breaks are provided
(personal time and fatigue), one in the morning and one in
the afternoon; and 20 min have been negotiated as lost
time due to supervisor interruptions and equipment
malfunctions. What PFD allowance factor should be added
to the normalized time to account for these losses in the
computation of a standard time, so that if the worker works
at standard performance, he/she will produce exactly eight
standard hours?
 Solution-3
 Allowance time for two 15-min breaks plus 20
min for lost time = 50 min
 Allowance factor Apfd = 480/(480-50) – 1 =
1.116 – 1 = 0.116 = 11.6%
 Problem-4

 In the WS&FP plant, workers punch in at 8:00 a.m. and

punch out at 5:00 p.m. The labor-management agreement
allows one hour for lunch, which is not counted as part of
the 8-hour shift. In determining the allowance for computing
time standards, two 12 min breaks are included (personal
time and fatigue), one in the morning and one in the
afternoon; and 35 min are included as lost time due to
interruptions and delays. What PFD allowance factor should
be added to the normalized time to account for these losses
in the computation of a standard time, so that if the worker
works at standard performance, he/she will earn exactly
eight standard hours?
 Solution-4
 Allowance time for two 12-min breaks plus 35
min for lost time = 59 min
 Allowance factor Apfd = 480/(480-59) – 1 =
1.140 – 1 = 0.140 = 14.0%