busn 361
DESCRIPTION
Operational ExcellenceTRANSCRIPT
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)
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 “
2/17/2013
3
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 “
2/17/2013
4
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 !
2/17/2013
5
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
2/17/2013
6
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 = ?
2/17/2013
7
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.
2/17/2013
8
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.