The Harry Mitchell College WORK MEASUREMENT A 2-Week Course The Harry Mitchell College COURSE OBJECTIVES • To understand the theory & practice of work measurement • To understand the need to measure work • To become a qualified practitioner in process analysis by Time Study The Harry Mitchell College WORK STUDY The systematic examination of activities in order to improve the effective use of human and other material resources The Harry Mitchell College WORK STUDY METHOD STUDY WORK MEASUREMENT To improve methods of production To assess human effectiveness Resulting in more effective use of staff, material, equipment Improving planning & control, resource planning, labour costing HIGHER PRODUCTIVITY The Harry Mitchell College MEASUREMENT TO MANAGE CHANGE • Without measurement, the executive works in the dark. • He has no basis for comparison or control. • He has no way of knowing his organisations – capacity – efficiency – economy – relative accomplishment - HIS DECISIONS ARE GUESSES The Harry Mitchell College Purpose of Work Measurement To establish a standard time for a task or process To identify, quantify, and help reduce or eliminate unproductive times To provide data to assist in the control of the business The Harry Mitchell College WORK MEASUREMENT The application of techniques designed to establish the time for a qualified worker to carry out a task at a defined rate of working. The Harry Mitchell College OBSERVED TIME The time spent on an element or other activity as shown on a watch or other instrument. The Observed Time is therefore how long it “Did Take” a worker to carry out a task. The Harry Mitchell College BASIC TIME The time for carrying out an element of work or an operation at a standard rating. The Basic Time is the Observed Time adjusted by the pace at which the worker performed the task. This therefore gives a “Should Take” time. The Harry Mitchell College RELAXATION ALLOWANCE An addition to the basic time: – to afford relief to the qualified worker from the physical and mental effort of carrying out specified tasks under specified conditions at standard performance – to allow attention to personal needs The additional time will depend upon the nature of the work and may be spent away from the workplace under management direction. Relief from fatigue can also take place during unoccupied time or recovery period. The Harry Mitchell College CONTINGENCY ALLOWANCE Time included in a standard time to cover: – specified and legitimate work activities – legitimate, expected, and unavoidable interruptions and delays when it is impractical to treat such activities / delays as occasional elements. The Harry Mitchell College STANDARD TIME The total time in which a task or a group of related tasks should be completed at standard performance, i.e. Basic Time plus Relaxation Allowance and any other appropriate allowances. The Harry Mitchell College UNPRODUCTIVE TIME - Labour Orientated Absenteeism Lateness Inactivity Sub - standard work Accidents The Harry Mitchell College UNPRODUCTIVE TIME - Management Orientated Excessive Product Variety Lack of Standardisation Design Changes Bad Planning of Work Lack of Material Breakdowns Equipment in Bad Condition Accidents The Harry Mitchell College WORK MEASUREMENT Techniques Time Study PMTS Estimating / Work Logging Activity Sampling Synthesis Production Study The Harry Mitchell College PACE RATING The numerical value or symbol used to denote a rate of working. The Harry Mitchell College TO RATE • To assess the workers pace of work relative to the observers concept of rating corresponding to standard pace. • The observer may take into account, separately or in combination, one or more factors necessary to the carrying out of the task, e.g. – speed of movement – effort – dexterity – continuity The Harry Mitchell College International Labour Office (ILO) British Standards Institute (BSI) PACE RATING SCALE A linear scale in which the figure 100 is equivalent to standard rating. The Harry Mitchell College STANDARD RATING The rate at which qualified workers will work provided that: they adhere to the specified method and are – suited to the work – accustomed to the task – motivated The Harry Mitchell College STANDARD RATING (100) A brisk, business - like performance, as of an average qualified worker suitably motivated; necessary standard of quality and accuracy achieved with confidence. WALKING SPEED 4 MPH The Harry Mitchell College 75 RATING Steady, deliberate and unhurried performance as of a worker not motivated but under proper supervision; looks slow, but time not being intentionally wasted while under observation. WALKING SPEED 3 MPH The Harry Mitchell College 125 RATING Very fast; operative exhibits a high degree of assurance, dexterity, and co-ordination of movement, well above that of an average trained worker. WALKING SPEED 5 MPH The Harry Mitchell College 50 RATING Very slow; clumsy, fumbling movements; operative appears half asleep, with no interest in the job. WALKING SPEED 2 MPH The Harry Mitchell College BRITISH STANDARD PACE RATING SCALE RANGE Rating on the British Standard Rating Scale is carried out in 5 point blocks: MPH BSI MPH BSI MPH BSI MPH BSI 6.0 150 4.8 120 3.8 95 2.8 70 5.8 145 4.6 115 3.6 90 2.6 65 5.6 140 4.4 110 3.4 85 2.4 60 5.4 135 4.2 105 3.2 80 2.2 55 5.2 130 4.0 100 3.0 75 2.0 50 5.0 125 The Harry Mitchell College PACE RATING - Variations Consistently loose - too high Consistently tight - too low Flat Profile - loose at the low end and tight at the high end Steep Profile - tight at the low end and loose at the high end Inconsistent - a mixture of the above The Harry Mitchell College RATING SCALES USA BRITISH EUROPE SPEED 100 - 133 0 - 100 60 - 80 MPH 67 50 40 2 100 75 60 3 133 100 80 4 167 125 100 5 200 150 120 6 The Harry Mitchell College WORK MEASUREMENT BASIC PROCEDURE SELECT - the work to be studied RECORD - all relevant data, methods, layout, material, etc. MEASURE - elements over a representative no. of cycles EXAMINE - for ineffective time, foreign elements, and produce basic time values COMPILE - the Standard Time by including appropriate allowances DEFINE - the method for which a time has been allowed The Harry Mitchell College TIME STUDY A work measurement technique designed to: establish the time for a qualified worker to carry out specified tasks under specified conditions at a defined rate of working recorded by direct observation of: – the element times, using a time measuring device – and the ratings for the individual elements The Harry Mitchell College WORK CYCLE - the sequence of elements required to perform a task and / or yield a unit of production The Harry Mitchell College ELEMENT - a distinct part of a specified task selected for convenience of - observation measurement analysis The Harry Mitchell College BREAKPOINT – a convenient and easily recognisable point when one element ends and the next begins – they may be visual, audio, or both The Harry Mitchell College TYPES OF ELEMENT REPETITIVE - occur in each cycle OCCASIONAL - may occur at regular / irregular intervals. CONSTANT - identical in specification and basic time VARIABLE - time varies due to some characteristic of the process or product MANUAL - carried out by the worker MACHINE - automatically done by machine or process FOREIGN - not a necessary part of the process GOVERNING - takes longer than another element being carried out at the same time The Harry Mitchell College CLASSIFICATION OF ELEMENTS MANUAL REPETITIVE CONSTANT MACHINE OCCASIONAL VARIABLE FOREIGN GOVERNING The Harry Mitchell College TASK: CLEANING METAL WIDGETS SEQUENCE: A/B/C/A/B/C/A/B/C/X/A/B/C/Y/A ELEMENT A - holding emery cloth in right hand, p/u 1 widget in left hand ELEMENT B - inspect widget for burrs ELEMENT C - clean with cloth & aside widget ELEMENT X - replace worn emery cloth ELEMENT Y - count widgets awaiting cleaning CONSTANT - A & B (no change in work content) VARIABLE - C (work content varies with no. of burrs) REPETITIVE - A,B,&C (occur in each cycle) OCCASIONAL - X (only done when necessary) FOREIGN - Y (not a necessary part of the task) The Harry Mitchell College RELAXATION ALLOWANCE An addition to the basic time: – to afford relief to the qualified worker from the physical and mental effort of carrying out specified tasks under specified conditions at standard performance – to allow attention to personal needs The additional time will depend upon the nature of the work and may be spent away from the workplace under management direction. Relief from fatigue can also take place during unoccupied time or recovery period. The Harry Mitchell College REST ALLOWANCE VALUES An example of a system of percentages to be added to the basic time values Constant Allowances Weightlifting or Use of Force Personal Needs 5% Basic Fatigue 4% (lifting, pulling, or pushing) (Kg.) Standing Allowance 2% Abnormal Position Slightly awkward 0% Awkward (bending) 2% Very awkward (lying, stretching up) 7% (Kg.) 2.5 0% 20.0 10% 5.0 1% 22.5 12% 7.5 2% 25.0 14% 10.0 3% 30.0 19% 12.5 4% 40.0 33% 15.0 6% 50.0 58% 17.5 8% The Harry Mitchell College REST ALLOWANCE VALUES An example of a system of percentages to be added to the basic time values (cont.) Light Conditions Slightly below Visual Strain 0% recommended value Well below 2% Quite inadequate 5% Fairly fine work 0% Fine or exacting 2% Very fine or exacting 5% Aural Strain Air Conditions Continuous 0% Well ventilated / fresh air 0% Intermittent, loud 2% Badly ventilated, but not 5% Intermittent, very loud, 5% toxic or injurious fumes high - pitched, loud Work close to furnaces, etc. 5-15% The Harry Mitchell College REST ALLOWANCE VALUES An example of a system of percentages to be added to the basic time values (cont.) Mental Strain Fairly Complex Process 0% Complex or wide span of attention 4% Very complex 8% Monotony - Mental Monotony - Physical Low 0% Rather tedious 0% Medium 1% Tedious 1% High 4% Very tedious 4% The Harry Mitchell College CONTINGENCY ALLOWANCE Time included in a standard time to cover: – specified and legitimate work activities – legitimate, expected, and unavoidable interruptions and delays when it is impractical to treat such activities / delays as occasional elements. The Harry Mitchell College ALLOWANCES CONTINGENCY UNOCC. TIME INTERFER. LEARNER CHANGEOVER XS WORK COMPULSORY POLICY DELAY WORK MATERIAL REST ALL. Personal needs and fatigue ADDITIONAL (TEMP.) METHOD INCLUSIVE OPTIONAL (IF JUSTIFIED) STANDARD TIME ALLOWED TIME NB: (1) The above allowances, if applicable, must be added to the basic time when this has been calculated or derived. (2) In addition to the above, a daily allowance may be awarded for necessary tasks carried out at the start or end of work periods, for example. This allowance is not directly related to the quantity of work to be carried, and is defined in time units, not as a percentage of the basic time. The Harry Mitchell College ACTIVITY SAMPLING A work study technique in which: snap observations are made over a period of time of one or a group of workers and / or machines and / or processes each observation recording what is happening AT THAT INSTANT!!! The percentage of observations recorded for a particular activity is a measure of the percentage of time that activity or delay occurs. The Harry Mitchell College ACTIVITY SAMPLING - INITIAL STEPS Define the situation - multi - man / machine / process Consultation - Managers / Supervisors / Staff + Reps - range of activities (& delays) / workers - timescale / accuracy level / observers Study Sheet - to cover the range of activities / workers The Harry Mitchell College ACTIVITY SAMPLING - PILOT STUDY A preliminary study of 100 - 200 observations, for example. It provides the following information: • a test of the study sheet - range of activities / delays - staff members proposed for inclusion • familiarisation of studying procedure with the staff and new observers • ease of identification of activities by observer • the average time to complete a round of observations • an approximate value of the activity levels The Harry Mitchell College ACTIVITY SAMPLING - CALCULATING THE RESULTS The percentage of each activity is carried out using the following equation: % Activity = No of Observations of that Activity Total No of Observations X 100 The calculated activities from a preliminary study may be sufficient to identify the most common activities, and possibly as important, the most common causes of delay, waste, and downtime. The Harry Mitchell College ACTIVITY SAMPLING - ACCURACY LEVELS It is possible to calculate the accuracy level of each calculated activity percentage by this equation: L = + 2 X P X (100 - P) N where: - L = accuracy level % - P = activity % - N = total number of observations for the sampling exercise This calculation should be carried out to test whether the sample carried out was accurate enough to distinguish between close levels of activity. The Harry Mitchell College ACTIVITY SAMPLING - IMPROVING ACCURACY During preliminary discussions, the level of accuracy required from the study should be agreed with the management. For an in - depth study, typical accuracy levels are in the range 1 - 3 %. Increasing the accuracy will require an increased number of observations. The number of observations required for a target accuracy level can be calculated by the equation: N = 4 X P X (100 – P) L² where: - L = agreed accuracy level % - P = highest activity % from the Pilot Study - N = total number of observations required The Harry Mitchell College ACTIVITY SAMPLING - STEPS TO THE MAIN STUDY From the knowledge of the time per round, and the number of observations required, calculate the no. of days study Plan the days to be studied - continuous or selected periods Decide on the study times - random from tables of random numbers - fixed interval, e.g. every 10 min. Amend design of study sheets if necessary Number observation workstations Final check with any other observers - remind them that they should record what they see at The Harry Mitchell College that instant ACTIVITY SAMPLING - MAIN STUDY Carry out the no. of observations calculated from the results of the Pilot Study (do not include Pilot observations) Check the value of the highest level of activity - if it changes, recalculate the no. of observations required - arrange more sampling times, from random nos if necessary When the observations have been completed: - calculate each percentage activity or delay - calculate accuracy of the highest activity % (preferably all activities / delays) by the same processes as for the Pilot Study Report the results to Management The Harry Mitchell College ACTIVITY SAMPLING - CALCULATING PROCESS TIMES If the number of items produced from each activity is monitored during the observation period it is possible to calculate process times. For example, if the period of observation was 400 man hours, we may discover that a certain activity accounted for 25% of the time = 100 man - hours. If 1000 units were produced, the time value per unit will be 100 / 1000 hours, i.e. 0.1 hours or 6 minutes. The problem with this time is that it is only an observed time, and does not take into account the pace of the operators carrying out the activity. The Harry Mitchell College RATED ACTIVITY SAMPLING The best method of deriving more meaningful process times is to carry out a Rated Activity Sampling exercise. The additional feature is that the observer assesses the rating of the operator when an activity is observed. The total of the rating figures for each activity is then divided by the no. of observations for that activity, resulting in the average rating. By applying the rating to the observed time, the basic time can then be calculated. Inclusion of the relevant allowances will then produce standard time values for as many activities for which an output has been obtained. The Harry Mitchell College RATED ACTIVITY SAMPLING - FIXED INTERVAL The method of calculating standard time values previously described is applicable to all Activity Sampling exercises. However, if the sampling is carried out at fixed intervals (e.g. every 10 minutes) the calculation becomes simpler. The equation to be used for each activity is as follows: Basic Time = Total Rating 100 x Sampling Interval Output The relevant allowances should then be added to calculate the standard time value. The Harry Mitchell College ACTIVITY SAMPLING - SUMMARY OF APPLICATIONS To determine the level of productive work. To calculate the highest level of activity, for further study. To quantify waste, downtime, and other non - productive time. By carrying out a Rated Activity Sample: To assess the overall work rate, and that for each activity To calculate standard time values for a range of activities To calculate other information to add accuracy to these time values - contingency allowance, for example The Harry Mitchell College PREDETERMINED MOTION TIME SYSTEMS (PMTS) A work measurement technique based on: – tables of time data at defined rates of working for classified human movements and mental activities – times for an operation or task derived using precise conventions – each PMTS system has its own set of conventions The Harry Mitchell College DEVELOPMENT OF PMTS Segur (1924) - Motion Time Analysis – academic approach – Segur’s Law - “Time for a basic motion carried out by an expert is constant” Maynard / Stegmerten / Schwab (1948) – Methods Time Measurement – frame by frame analysis of films of a wide variety of tasks – “levelled” to take account of operator performance The Harry Mitchell College PMTS ANALYSIS METHOD 1 Obtain details of procedure 2 Check that the method is correct 3 Break down the method to the appropriate analysis level (PMTS - 1, -2, -X, etc.) 4 Match the relevant code to each step of the process 5 Obtain the time value for each code (usually in tmu’s, 2000 tmu = 1 minute) 6 Total the time values to calculate the basic time for the whole process The Harry Mitchell College SELECTING THE PMTS LEVEL Selection of the relevant PMTS level may be based on the following factors: – the company practice – the qualifications of the analyst – the process – the required accuracy level – the time allowed for analysis The Harry Mitchell College DIFFERING PMTS LEVELS Level • PMTS - 1 Process Type Very short, highly repetitive, cycle tasks (< 0.5 min.) • PMTS - 2 Short cycle tasks (0.5 - 15 min.) • Higher levels (PMTS - X, PADS, UAS) Medium length cycles (>3 min.) The Harry Mitchell College PMTS ANALYSIS - EXAMPLE FILE DOCUMENT IN RING FILE, (analysed by PADS) Stand SOS 103 Walk to Filing area 5S 90 Find File RF 42 Obtain File FOR 58 Return to Desk 5S 90 Open File Cover FOC 50 Find Section 5HF 65 Open Rings FRI 23 Place Document over Rings FPR 52 Close Rings FRI 23 Close Cover FOC 50 Pick up File OD2 44 Walk to Filing area 5S 90 Replace File FRR 78 Return to Desk 5S 90 Sit SOS 103 TOTAL BASIC TIME (tmu) 1051 The Harry Mitchell College ADVANTAGES OF PMTS Standard time values are universal in character They are therefore capable of application in a variety of environments, providing that the method is the same Attention is focused on the method before the analysis is developed The analysed time value is a basic time, hence there is no need for the analyst to rate the operator There is no need to observe the operator carrying out the task The process therefore does not need to be in operation it can be visualised for forecasting purposes The Harry Mitchell College LIMITATIONS OF PMTS It does not cover machine cycle time or process controlled time It does not cover elements requiring highly controlled actions (e.g. sign - writing, moving a full container of liquid) There are limitations in the handling of weight or use of force Extra training is necessary before the analyst can apply the technique The Harry Mitchell College USES OF PMTS as an accepted method of producing standard time values to check time values from other techniques to determine the best method, desk / bench layout, and workplace layout before a new product undergoes production as an aid for projecting manning levels, process costs, and turnaround times for potential new products to determine proposed process times for project planning as a foundation for the development of standard synthetic data The Harry Mitchell College SYNTHESIS A work measurement technique for: building up the time for a task or part of a task at a defined rate of working from previously established elemental times obtained from other analysis techniques such as Time Study, PMTS, Estimating, or Activity Sampling The Harry Mitchell College SYNTHETIC DATA CLASSIFICATION OF DATA Lower level analyses are classified to make up the “element” level Elements are then combined to calculate time values at the “task” level Tasks are then combined to produce time values at the “job” level NB commercial systems use a variety of titles for the different levels of data storage The Harry Mitchell College SYNTHETIC DATA ADVANTAGES Synthetic times are often more reliable as they are based on a large number of studies The standard time can be calculated very quickly and accurately New analyses can be added to increase the range of the standard data The Harry Mitchell College SYNTHETIC DATA LIMITATIONS Standard data can only be used for the applicable method Method changes and frequency changes must be notified, and data modified quickly Frequent changes require frequent updating Introduction of new technology, equipment, and machinery will also require rapid data updating It can be a costly exercise if a high degree of accuracy is required The Harry Mitchell College SYNTHETIC DATA USES Cost estimating and tendering Strategic / operational resource planning Capacity forecasting during peaks and troughs Rapid production planning and control Performance management The Harry Mitchell College ESTIMATING Estimating is defined as: Assessment of the time required to carry out work based on knowledge and experience of similar types of work. It is usually the fastest, but the least accurate work measurement technique. It is usually applied to situations where: – an approximate value is required for forward planning and / or competitive tendering (e.g. project work) – the task does not make a major contribution to the overall workload – no other work measurement technique can be applied The Harry Mitchell College ESTIMATING Estimating techniques are divided into 3 types: ANALYTICAL ESTIMATING COMPARATIVE ESTIMATING CATEGORY ESTIMATING The Harry Mitchell College ANALYTICAL ESTIMATING Analytical Estimating is defined as: A development of estimating in which the time required to perform each constituent part of a task at a defined rate of working is estimated from – knowledge, – practical experience of the task, – synthetic data. The Harry Mitchell College ANALYTICAL ESTIMATING The trained Analytical Estimator applies 3 principles: – an appreciation of the time required for a number of simple industrial jobs – an understanding of standard rating – detailed knowledge of the task in question The Harry Mitchell College MAKING AN ANALYTICAL ESTIMATION Get procedure details Get details of materials, safety factors, abnormal conditions, etc. Agree best practice Obtain element time Apply Synthetic Data Break into elements Estimate Calculate Basic Time Apply Allowances to derive SMV The Harry Mitchell College Apply work measurement technique COMPARATIVE ESTIMATING Comparative Estimating is defined as: Evaluation of the time for a task by comparing the work with a series of similar tasks that have been accurately analysed (benchmarks) and slotted into broad bands of time. The average time across the band is known as the band value. This value is ascribed to an unknown task, once it has been slotted into the appropriate band. The Harry Mitchell College CATEGORY ESTIMATING Category Estimating is a statistically - based technique which is defined as: Evaluation of the time for a task by allocating the task to the most appropriate band in a present range of time bands using experience of the work and without having recourse to specified benchmarks. The Harry Mitchell College CATEGORY ESTIMATING SETTING UP THE CATEGORY TIME SCALE Set up Job Request scheme, and issue cards to operators to record actual time for a representative sample of jobs Carry out Rated Activity Sampling Exercise during Job Request Scheme period Subject the distribution of process times to statistical analysis Derive the time categories from the analysis (typically 5-7) Apply the average rating from the RAS to derive the Estimator’s Scale of job times for each category The Harry Mitchell College CATEGORY ESTIMATING NEW JOBS Obtain basic details of the new job Select the most suitable category applicable to the new job Issue the category mid - point value as the proposed job time The Harry Mitchell College PRODUCTION STUDY A Production Study is a continuous study of relatively lengthy duration often extending over a period of one or more working days / shifts taken with the objective of: – checking an existing standard time value – checking the constituent parts of the analysis – or obtaining other information affecting the rate of output or performance The Harry Mitchell College PRODUCTION STUDY IS IT NECESSARY? Before proposing that a Production Study be carried out: – Check the analysis calculation – Check that the element frequencies are the same as those included in the analysis – Check that the method has not been changed The Harry Mitchell College PRODUCTION STUDY PRELIMINARIES 1 Consult with Managers and Supervisors 2 Request the availability of a suitable operator for study 3 Request that the operator has sufficient work for the processes to be studied during the study period 4 Arrange suitable times / dates 5 Prepare a suitable study sheet The Harry Mitchell College PRODUCTION STUDY PROCEDURE 1 Arrive before agreed start time, and start stopwatch at an external time reference (the clock on the wall!) 2 At the start time, record TEBS 3 Record all instances of productive work 4 Record all interruptions to productive work and their cause 5 Record break start / finish times, and duration of meal breaks 6 Record absences from workplace and their reason 7 Record extra non - productive work tasks 8 At end of work period, stop watch at the external time reference, and record TEAS. The Harry Mitchell College PRODUCTION STUDY RECORDING THE TIMES Productive Work Processes - rate during the activity - record the time elapsed at the end of the activity Other Work - rate during the activity - record the time elapsed at the end of the activity Delays / Absences / Interruptions - record the time elapsed NB Arrange for the output from the productive work processes to be monitored The Harry Mitchell College PRODUCTION STUDY CHECKING THE ACCURACY OF THE ISSUED PROCESS TIME Calculate basic times from all instances of observed time and rating Calculate the basic time per unit from the output Add allowances to calculate standard time Compare to issued time value IF WITHIN + 5%, THERE IS NO CASE FOR ANOTHER ANALYSIS The Harry Mitchell College PRODUCTION STUDY NON - PRODUCTIVE TIME Divide the instances of non - productive time into categories Operator - Controlled - Lateness - Extending break times - Not working, including chatting to other workers - Low work rate - Rework - correction of errors caused by the operator Non - Operator Controlled - Machine Breakdown - Waiting for Work - Seeking Instructions from Supervisor - Other Supervisor Instructions - Correction of errors caused by another operator The Harry Mitchell College PRODUCTION STUDY PURPOSES To prove accuracy of work values - Detection of errors in compilation - Safeguarding against loose standards - Variations in quality - Variations in values To demonstrate fairness of standards - Inspire confidence - Production record for future reference To initiate a new system - To ensure new functions are known - Familiarisation with new product Special Purposes - To determine interference allowance & check other allowances - To determine fault frequency - To establish cause of significant performance changes The Harry Mitchell College WORK SPECIFICATION A Work Specification is a document defining: – details of a task or operation – how it is to be performed – details of machinery, tools and appliances to be used – duties and responsibilities of the operator The standard time or allowed time assigned to the task is normally included The Harry Mitchell College WORK SPECIFICATION DETAILS Product title, ref. no., specification Plant / machine details - make / size / type - speed feed - jigs / tools / fixtures Operation no. and general description of work covered Quality Standards - grade / finish / tolerances - checking procedure / frequency Duties and responsibilities of the operator Staffing - direct / indirect / part - time help by inspectors / supervisors Procedural details - repetitive & occasional elements, set up / shut down Details of Time Standards Clerical procedures e.g. recording of output / waiting time The Harry Mitchell College USES OF STANDARD TIMES Management Information Delivery Forecasting Labour Rates Purchasing Material Requirements Sales for Planning / Control Costing Resource Planning / Balancing Material Production Preparation Packing Storage / Despatch Staff Payment Accounts Bonus / Performance Cash Flow Calculation Human Resources Labour / Skills Requirements The Harry Mitchell College Requirements USES OF STANDARD TIMES - PRODUCTIVITY / PERFORMANCE One of the main uses of standard time values is the monitoring of performance. This title has a variety of aliases, such as productivity, effectiveness, utilisation. The basic equation for productivity calculation is: PRODUCTIVITY = OUTPUT X 100 INPUT Strictly, the figure is a rating value and should be expressed as a BS number. It is often the practice to quote the figure as a percentage. The standard time value can be used in this equation as follows: PRODUCTIVITY = No of Units X Std Time per unit X 100 Attendance Time The Harry Mitchell College USES OF STANDARD TIMES - RESOURCE PLANNING Another of the main uses of standard time values is the calculation of resources required for the following reasons: Forward Planning of Staffing Requirements Staffing for Weekly / Monthly / Seasonal Volume Variations Machinery / Space Requirements Resource Planning for Different Stages of a Project The basic equation for calculation of staffing levels is Staff Reqd = Volume X Process Time X 100 Period X Performance Expected If the volume is an annual volume, and the standard process time is defined in minutes, the period will be a year in minutes attended by one full - time employee. The result of the calculation will be the staff number required in Full Time Equivalents (FTE’s) achieving the performance expected. The Harry Mitchell College USES OF STANDARD TIMES - PROCESS LABOUR COSTING The standard time value can be a valuable aid to standard costing models within organisations. It can be used as a basis for calculating the expected unit labour cost by the following equation: Labour Cost = Hourly Pay Rate X Process Time 60 This value can contribute to the total product cost, once other cost factors have been added (material, machinery running, overheads, etc.). The overall unit cost can then be set as a break - even figure to be recovered as part of product pricing policy. The Harry Mitchell College PLANNING MEASUREMENT STUDIES When planning to carry out work measurement analysis for a range of processes in a work area, the following factors should be considered: The nature of the process to be analysed The time allowed for the analysis program The accuracy required The skill level of the analyst The Harry Mitchell College Short cycles > 0.5 min. PMTS LEVEL 1 Manual Work Only - no machines (150 - 1 to 350 - 1) Single Operator Tasks Short to Medium cycles PMTS LEVEL 2 Manual Work Only - no machines (0.5 - 3 min.) (70 - 1 to 150 - 1) Single Operator Tasks Cycles 2 - 15 min Long cycles (15 min.) TIME STUDY Single Operator Tasks (22 - 1 TO 100 - 1) Manual / machine Elements RATED ACT. SAMPLING Multi-Operator Tasks (8 - 1 TO 80 - 1) Manual / machine Elements ESTIMATING Long cycles (0.4 - 1 TO 3 - 1) The Harry Mitchell College Infrequent Non cyclical tasks
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