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Lesson 3 Importance and Uses of Time Study Student

The document discusses how time standards, which measure the time it takes to complete individual manufacturing tasks, are essential for planning factory operations like determining labor needs, equipment requirements, and production costs. It provides examples of how time standards are used to calculate the number of machines and workers needed to meet production quotas. Understanding time standards allows manufacturers to efficiently schedule production and ensure they can deliver products on time.

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Allona Jean Pacquiao Dayap
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© © All Rights Reserved
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35 views

Lesson 3 Importance and Uses of Time Study Student

The document discusses how time standards, which measure the time it takes to complete individual manufacturing tasks, are essential for planning factory operations like determining labor needs, equipment requirements, and production costs. It provides examples of how time standards are used to calculate the number of machines and workers needed to meet production quotas. Understanding time standards allows manufacturers to efficiently schedule production and ensure they can deliver products on time.

Uploaded by

Allona Jean Pacquiao Dayap
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Importance and

Uses of Time
Study
What now?!?
 Time standard is one of the most important pieces of
information produced in the manufacturing department.
 It is used to develop answers for the following problems:
 Determine the number of machine tools to buy
 Determine the number of production people to employ
 Determine the manufacturing cost and selling prices
 Schedule the machines, operations, and people to do the job and
deliver in time with less inventory
 Determine the assembly line balance, determine the conveyor belt
speed, load the work cells with the correct amount of work, and
balance the work cells.
 Determine the individual worker performance and identify
operations that are having problems so the problems can be solved.
Cont.

 Pay incentive wages for outstanding team or individual


performance.
 Evaluate cost reduction ideas and pick the most economical
method based on cost analysis and opinion
 Evaluate new equipment purchases to justify their expense.
 Develop operation personnel budgets to measure the management
performance.
How many machines do we
need?
 The answer depends on two pieces of information:
 How many pieces do we need to manufacture per shift?
 How much time does it take to make one part? (This is the time standard)
Example:
 The manufacturing department wants us to make 2,000 drawer face
per 8-hour shift
 It takes us 0.400 minutes to form the drawer face on a shaper
machine.
 There are 480 minutes per shift (8 hour/shift x 60 minutes/hr)
 -50 minutes downtime per shift (breaks, clean-up,etc.)
 There are 430 minutes (productive time) per shift available @ 100%
performance.
 @ 75% performance (based on history)
(0.75x430 = 322.5 min)
 There are 322.5 effective minutes left to produce 2,000 units.
 322.5/ 2000 units = 0.161 minutes per unit or 6.21 parts per minute.
 The 0.161 minutes per unit is called the Takt time or plant rate.
 Takt time is a German word for plant rate. It is the available effective
minutes divided by the desired output.
 Every operation in the plant must produce a part every 0.161 minutes.
 Therefore, how many machines do we need for this operation?

Time standard = 0.400 minutes per unit


= 2.48 machines
Plant rate = 0.161 minutes per unit
 This operation requires 2.48 machines.
 If other operations are required for this kind of machine , we
would add all the machine requirements together and round
up to the next whole number.
 Thus, we would buy 3 machines
 Tip: Never round down on your own. You will be building a
bottleneck in your plant)
How many people should we
hire?

A casting operation produces 500 handles per hour.

 Not many people, departments or plants work at 100% performance. How


many hours would be required to produce 2,000 handles if the company
work at the rate of 60%, 85%, or 120%?
 Not many people, departments or plants work at 100% performance. How
many hours would be required if we work at the rate of 60%, 85%, or
120%?

How many hours are needed to produce 2,000 units @ 100%? 4 hours

4 hours = 6.66 hrs 4 hours = 4.7 hrs


60% 85%

4 hours = 3.33 hrs


120%
Data in the Operations Chart
(Water Valve)
 The operations chart which includes every operation
required to fabricate, paint, inspect, assemble, and pack out
a product sum up to a total hours of 138.94 to produce
1,000 units.
 If this is a new product, we could expect 75% performance
during the first year of production.
 Given this scenario:

 Themarketing department has forecasted sales of


2,500 water valves per day. How many people are
needed to make water valves?
 Given this scenario:

 The marketing department has forecasted sales of 2,500 water valves


per day. How many people are needed to make water valves?
(185 hours / 1,000pcs) x 2,500 pcs = 463 hours (manhours)

Divide this by 8 hrs per employee per day, equal to 58 people.


Example: Multi-product plant

 How many direct labor employees do we need for a multi-product plant?


 Per day, 1,132 hours of direct labor are needed. Each employee will work 8
hours , therefore,
Example: Multi-product plant

 How many direct labor employees do we need for a multi-product plant?


 Per day, 1,132 hours of direct labor are needed. Each employee will work 8
hours , therefore,
How much will our product
cost?
 Product cost consist of:
 Direct labor cost is the most difficult component of product cost
to estimate
 Time standards must be set prior to any equipment purchase or
material availability
 Time standards are collected on something like the operations
chart on Water Valve.
 Consider the sample on “water valve production”. What if the
company performs at 85%?

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