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2/17/2013 1 School of Management FCC, Lahore Operational Excellence BUSN 361 Work Measurement (Spring 2013) (Week 1) Mehryar S. Abdullah Operational Excellence 2 I keep six honest serving men They taught me all I knew; Their names are What and Why and When And How and Where and Who …… (Kipling)

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Operational Excellence

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Page 1: BUSN 361

2/17/2013

1

School of Management FCC, Lahore

Operational Excellence

BUSN – 361

Work Measurement

(Spring – 2013)

(Week – 1)

Mehryar S. Abdullah

Operational Excellence 2

I keep six honest serving men

They taught me all I knew;

Their names are What and Why and When

And How and Where and Who ……

(Kipling)

Page 2: BUSN 361

2/17/2013

2

Operational Excellence 3

Work Study

To study the existing method in order to find ways to improve it:

Method Study

‒ To simplify the job and develop more economical methods

Work Measurement

‒ To determine how long it should take to carryout a given task

Operational Excellence 4

Why? What? How? Who? Where? When?

Why is this operation necessary ?

Why is the operation performed in this manner ?

Why are these tolerances this close ?

Why has this material been specified ?

Why has this class of operator been assigned to do the work ?

What is the purpose of the operation ?

How can the operation be performed better ?

Who can best perform the operation ?

Where could the operation be performed at a lower cost ?

When should the operation be performed to minimize handling ?

“ Analysts should ask these and other pertinent questions about the process and then gather information to answer the questions so that

a better way of doing the work may be introduced “

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Operational Excellence 5

Basic Procedure of Work Study

Select the job or process to be studied

Record from direct observation everything that happens

Use the most suitable of the recording techniques available

Examine the recorded facts critically and challenge everything

Develop the most economic method

Measure the quantity of work involved in the method selected and

calculate a standard time for it

Define the new method and the related time

Install the new method as standard practice with the time allowed

Maintain the new standard practice by proper control procedures

Operational Excellence 6

Work Study

Fredrick Taylor – Father of scientific measurement

First definitive approach to work measurement

“ The greatest production results when each worker is given a

definite task to be performed in a definite time, in a definite manner “

Frank & Lillian Gilbreth worked on scientific management and

conducted research work in motion study

Gilbreths made many detailed laboratory studies of motions

Developed micromotion study procedures (Therblig)

Time & Motion Study groups merged around 1930’s

Combined best features of both into, “ Methods Engineering “

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Operational Excellence 7

Work Study

Robert Hoxie listed 17 factors in time study which could be varied

subject to human will (as true today as in 1914):

― Attitudes and purposes of management

― Training of time study analyst

― Degree to which the job has been studied

― Selection of operators

― Number of observations

― Working conditions

― Training and Instructions to operators

― Attitude of analyst and secret motives of operators

― Judgment of analyst

― Method of recording times and accuracy

― Determining allowances

Operational Excellence 8

Therbligs

Gilberths refined Taylor’s work using “ therblig ”, forming a generally

recognized basic language for methods description:

― Search Release Load Use

― Select Position Unavoidable Delay

― Grasp Pre-Position Avoidable Delay

― Transport Empty Inspect Plan

― Transport Loaded Assemble Rest (overcome fatigue)

― Hold Dissemble

This resulted in a modified form of “Predetermined Time Standards “

These were the origins, but remember this is a dynamic world !

The fact remains, that Time Study is a very rough measure !

Page 5: BUSN 361

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Operational Excellence 9

Work Measurement

Application of techniques designed to establish the time for a qualified worker to

carry out a specified task / job at a defined level of performance

Provides management with a means of measuring the time taken in the

performance of a process or operation

Work measurement sets standard time for carrying out the work

Reveals shortcomings of design, material and methods

Separates the effective time from the ineffective time (previously concealed)

Shows the behaviour and attitudes of workers

Helps estimate cost of processes / operations

Helps with line balancing problems

Helps with planning and scheduling of production and workers

Helps with estimates for tenders, cost, selling price, and delivery times

Helps to develop incentive programs and piece-work rate system

Operational Excellence 10

Work Measurement Procedure

1. Select work to be studied

2. Record all relevant data, circumstances, methods, and elements of activities

3. Examine the recorded information critically to ensure productive elements

are separated from unproductive elements

4. Measure the quantity of work in each element (in terms of time)

5. Compile the standard time for the operation

6. Define the series of activities and standard times

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Operational Excellence 11

Time Study

Equipment: Clip Board, Stop Watch, Paper Sheets

Qualified Worker: One who is accepted as having the necessary physical

attributes, intelligence, and education, and one who has acquired the necessary

skills and knowledge to carry out the work to satisfactory standards of safety,

quantity and quality

Elements: (breaking the job into elements) A distinct part of a specified job

selected for convenience of observation, measurement and analysis

Work Cycle: Sequence of elements required to perform a job or yield a unit of

production

Sample Size: Statistical, Available Work, Tables

Rating: assessment of the worker’s rate of working relative to the observer’s

concept of the rate corresponding to standard pace

Allowances: Personal, Basic Fatigue, Contingency, Special

Observed Time + Rating = Basic Time + Allowances = Standard Time

Operational Excellence 12

Time & Motion Study - LEGO Simulation

Time study of LEGO blocks assembly

Observed Time

Normal Time

Standard Time

Motion Study of LEGO assembly operation

Observe LEGO assembly operation motions

Improve assembly operation motions

Improve workstation design based on ergonomics

Time Study of improved LEGO assembly operation

Observed Time

Normal Time

Standard Time

Productivity Improvement – Change in Labor Input = ?

Page 7: BUSN 361

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Operational Excellence 13

Time & Motion Study (LEGO Simulation Exercise)

1. Select time and motion study team

2. Ensure availability of LEGO, clip-board, stop watch, paper sheets, camera

3. Select production location

4. Design product to assemble (30 assemblies)

5. Practice assembly process

6. Select operator, analyst, camera person, supervisor (not group leader)

7. Observe assembly process

8. Break the job into elements

9. Record all relevant information

10. Practice data collection to find potential problems

11. Collect time data, determine rating and allowances, observe motions

12. Calculate standard time (consider setups)

13. Brainstorm motion and workstation improvements

14. Implement improvements

15. Repeat time study

16. Calculate improvements (productivity, efficiency, quality, etc)

Operational Excellence 14

Group - Exercise

1. Analyze the time study data using Excel

2. List the process improvements achieved

3. Visual Aids for the improved assembly operation (use pictures, check list)

4. Submit report

Grading: Group performance, simulation, report, visual aid, class

behaviour / attitude, creative ideas, etc.

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Operational Excellence 15

References

1. Operations Management, by Roberta S. Russell & Bernard W. Taylor, 4th edition, Pearson

2. Principles of Operations Management, by J. Heizer & B. Render, 4th edition, Prentice-Hall

3. Productivity Engineering and Management, by David J. Sumanth, 1984, McGraw-Hill

4. Motion and Time Study, by Benjamin W. Niebel, 8th edition, 1988, Richard D. Irwin, Inc.