Operations Management I For Confederation of Indian Industry (CII)

Session IIChapter 4,5 and 6

R M Harindranath MBA MCA (Ph D) MCT

• Chapter 4: Introduction to Work Study

Work-Study• Work-Study technique as a branch of management is essential

for Improved productivity.• Development of work study• To achieve preplanned objectives most efficiently, the manger

must use scientific technique for evaluation of inputs, outputs and process

• Urgent necessity to improve and enlarge the scope of time and motion study. The developments led to the concept of modem discipline of work study.

• The US equivalent term for work-study is Motion and Time Study• US equivalent term for work-study is Motion and Time Study• Work study is concerned with finding better ways of doing work

and avoiding waste In all Its forms

Evolution and Development• Earliest known practical application of Work Study

was by Robert Owen of the UK.• He concentrated on the needs of the worker, and

while increasing productivity, helped raise the standard of living of the worker.

• F.W. Taylor who evolved the principles of Time Study

• F W Taylor broke up the work into elements, and from the analysis of these elements he determine the time of each to be allowed for a job

• Frank Bunker Gilbreth (1869-1924), along with his wife Lillian, developed the principles of Motion Study.

• The scientific approach to the study of work, through a close investigation of motion patterns, resulted in the elimination of wasteful movements and, consequently - fatigue

• Concerned with devising the most economical methods of work and the most effective layout.

• Time study as subsidiary factor

Evolution and Development

• Contributions of F W Taylor & Gilbreth were developed by consultants, primarily by charles E Bedaux

• Time and motion study was increasingly being used to set time standards for financial incentives schemes

• Time and Motion Study has proved ineffective for two reasons:– Arbitrary methods of fixing timings were resented by

the trade unionists– Some of the practices of time study are questionable

Evolution and Development

Work-Study Definitions• 'Work Study is a term used to embrace the techniques of

Method Study and Work Measurement, which are employed to ensure the best possible use of human and material resources in carrying out a specified activity.“

• British Standard Institute is "Work Study is a generic term for those techniques, particularly Method Study and Work Measurement, which are used in the examination of human work in all its contexts and which lead systematically to the Investigation of all factors which affect the efficiency and economy of the situation being reviewed, in order to effect improvement".

• Russel Currie, the "father of modem work study" defines: "Work study is the systematic, objective and critical examination of all the factors that govern the operational efficiency of any specified activity In order to effect Improvement".

• A comprehensive definition of work-study would be—it is a modem industrial discipline comprising several scientific techniques that evaluate the effectiveness of any work system in order to raise the level of productivity, and provide greater satisfaction at work.

Work-Study Definitions

Work study• Work-study helps in the two fundamental functions of

management, which are organization and control. • It is also equally important to ensure that direction, co-

ordination, and control is really effective. • Work-study can be effectively applied to organizational

problems• The organizational structure. Including staffing and

channels of control;• Span of control, allocation of responsibilities, quantum of

decentralization;• System of controlling decisions and channels of

processing.

Facts about Work Study

• Work study is based on facts, and not on opinions.• It is advisory, and not executive.• It Is not an axe; it may even advise increases.• Work study is not imposed, but comes when requested

and it must come from within.• It depends, for its success, on the active co-operation of

the men on the job.• It is not a cure-all; it merely recommends Improvements;• It is not infallible—it is only impartial.• Lastly, it is not exclusive; even finance departments can

use it.

Objectives of Work Study

• The objective of work-study is to assist management to obtain the optimum use of the human and material resources available to the organization for the work upon which it is engaged

• The objective has three aspects:• The most effective use of plant and equipment.• The most effective use of human effort.• The evaluation of human work. ,

Work Study and Management

• Work-study is a management tool and it can only succeed If it has the backing of higher management

• Aim and scope are clearly understood by all concerned

• It Is a staff function & practitioners has no authority

Work Study and Supervisors

• Supervisors' confidence is achieved by educating the supervisor on the techniques of Method Study and Work Management.

Work Study and the Worker

Misunderstands the work study functionAnother dodge by management to make them

work If it has to be successful, they have to convince

the trade union representatives

Method Study

• Method study Is the systematic recording, analysis and critical examination of existing and proposed ways of doing work and the development and applications of easier and new production methods

Application of Method Study• Improved layout of office, working area or factory• Improved design of plant and equipment• Improved use of material, plant, equipment and manpower• Most effective handling of material• Improved flow of work• Standardization of methods and procedures• Improved safety standards• Better working conditions• Improved achievement with less effort• Productive and effective utilization of human effort• Economy of expenditure

Method Study

Select Select the work to be studied

Record Record all the relevant facts of the present (or proposed) method by direct observations.

Examine Examine the facts critically by following the critical examination procedure on special critical examination sheets.

Develop Develop the best methods i.e., most practical, economic and effective method, under prevailing circumstances.

Install Install that method as standard practiceMaintain Maintain that standard practice by regular, routine

check.

Recording and Charting

• Data or relevant facts pertaining to the existing method must be collected and recorded

• The method of recording will vary with the type and nature of data

• One objective of method study is to eliminate unnecessary writing and form filling

• Graphical presentation of the data usually makes it easier to grasp the implication of the facts and to highlight the points needing further Investigation.

• The recording may trace the movements of men, material or details of various processes

Recording Techniques

Charts They RecordGraphs & Tables Outline Process Chart Flow Process Chart Two-Handed Process Chart Multiple Activity Chart

Information on limiting factors of the situation, background Principal operations and Inspection of the process. Activities of men, material or equipment Movement of (two) hands or limbs of the operator.Simultaneous/inter-related activities of operators and/or machines, on a common time scale.

Diagrams They RecordFlow Diagram Path of men, materials and equipment on a

scaled model.String Diagram Same as above except for the variation that

It uses string to trace the path.Two and three Dimensional Models and templates

Planning of layout of work place or plant.

Photographic Aids They RecordCyclograph and chrono cycle graphs

High speed, short cycle movements.

Simultaneous Motion Cycle Chart (SIMO)

Movement of parts of the body of the operator expressed In terms of therbUgs on a common time scale.

Recording Techniques

WORK MEASUREMENT

• Work measurement also known as time study, refers to techniques employed for timing an operator or activity

• The purpose for determining the standard time to perform a given task, under given set of conditions

• It is obviously a waste of time to measure the work content of a job until one is certain that the method is satisfactory

• Work measurement follows from method study• work mea surement Is still considered by progressive

firms as Indispensable In the fields of costing, planning and loading.

WORK MEASUREMENT

• Work measurement can be defined as the application of technique designed to establish proper time for a qualified worker to carry out a specified job by a prescribed method at a defined level of performance

• The defined level of performance is that optimum rate of output that can be achieved by a qualified worker on an average for a working day or shift, after making due allowance for the necessary time required for rest.

Unit of work

• A unit of work consists partly of work and partly of relaxation, the proportion of relaxation to work varying with the nature of the job. In current practice

.Objective

• The main objective of work measurement is to obtain the standard against which the per formance of an operator may be measured for the purpose of:

• a) Correct loading of labour• b) Correct loading of plant and machinery• c) Maintenance of sound Incentive schemes• d) Initial costing of the product and subsequent control

of these costs• e) Assisting the future planning of the department• f) Assisting method study In the choice of better and

quicker methods

Performance Rating

• All operators do not work at the same pace.• Rating the speed of an operator is a matter of

judgement on the part of the time study analyst and is one of the areas in time study

• The Westinghouse System, the rating takes into account four factors namely skill, effort, working condition and consistency

• The most widely used system of rating is the overall 100% rating scale

Allowances

• A human being is not a machine • In order to deter mine a fair and just time standard,

some allowances must be made• Allowances may fall into one of the following categories:• a) Relaxation allowances ( 10-12%)• b) Contingency allowances for work or delays ( 5%)• c) Unoccupied time allowances• d) Interference allowances• e) Company policy allowances.• Minimum relaxation- allowance for man and woman

should be 10% and 12% respectively

Contingency Allowance• It is a small allowance of time which may be

Included in a standard time to meet the legitimate & expected items of work or delays

Unoccupied time allowance• Unoccupied time is the period during machine

controlled time when a worker is neither engaged on inside work nor taking authorized rest.

Interference allowance• An operator attends to more machines at a time

and the Interference allowance

Allowances

• End of chapter IV

Chapter V: Introduction to Production Planning and control

What is PPC ?• The highest efficiency in production is obtained by

manufacturing the required quantity of product, of the required quality, at the required time, by the best and cheapest method

• To obtain the above target, management employs PPC – tool to coordinate all manufacturing activities

Planning• Planning begins with an analysis of the forecast and

confirmed orders• A scheme for utilization the firm’s resources can be

outlined so that the desirable targets may be most efficiently attained

• Production planning for new & established products are separately identified

• WIP & finished goods stocks need to be planned & taken into account

• Decision to manufacture to stock or order• Production plan sets sub-targets for various depts in

predetermined time periods

MRP- Manufacturing Resources Planning

• Also known as single stage planning• The main factor in determining release times is the

lead time to produce a product• Lead time is the total time from when the product

is released into the system to the time it is finished• MRP is based on an assumption that the lead time

of the product is a non random constant• MRP models determine release times of the

product

Aggregate production planning (APP)

• Also known as multistage planning• Process of determining

– Timing & qty of production– Inventory Level– No of workers employed– Amount of overtime used for up 12 months ahead

• Operations are performed in accordance with the details set in the production plan.

• Control initiates and supervises operations with the aid of a control mechanism that feeds back information about the progress of the work

• Hence, production planning and control may be summarily defined as the direction and coordination of the firm's material and physical facilities toward the attainment of pre-specified production goals, in the most efficient available way.

PPC Classification• Materials• Raw materials, as well as standard finished parts and

semi-finished products must be available when required

• The above point indicate that each production operation will start on time

• Duties include the specification of materials (both with respect to dimensions and quality), quantities and availability, delivery dates, standardiza tion and reduction of variety, procurement and inspection

• This function also covers the procurement of semi-finished products from sub-contractor

• Methods• To analyze possible methods of manufacture and to

try to define the best method compatible with a given set of circumstances and facilities

• It covers both the general study and selection of production processes for the manufacture of components or assemblies

• Determining the sequence of operations and the division of the product into assemblies and subassemblies

PPC Classification

• Machines and equipment• Detailed study of equipment replacement policy• Maintenance policy, procedure, and schedules are

also functions connected with managerial responsibility for equipment

• Tools management• Manpower• Adequate workforce with necessary skills are

required

PPC Classification

• Routing• Each stage in production is broken down to define

each operation in detail• Routing prescribes the flow of work in the plant and

is related to considerations of layout, of temporary storage locations for raw materials and components, and of materials handling systems.

• Routing is a fundamental production function on which all subsequent planning is based.. This is generally achieved by route-card or travel card etc.,

PPC Classification

• Estimating• Operation times can be worked out• This function involves the extensive use of

operation analysis in conjunction with methods and routing, as well as work measurement.

PPC Classification

• Loading & Scheduling• Machines have to be loaded according to their

capability of performing the given task and according to their capacity

• Machine loading is carried out in conjunction with routing for smooth work flow

• Scheduling determines utilization of equipment and manpower and hence the efficiency of plant Scheduling

PPC Classification

• Expediting• Dispatching initiates the execution of production

plans, whereas expediting maintains them.• This function has to keep close liaison with

scheduling• Inspection• The control of quality is often detached from the

production planning and control department

PPC Classification

• Evaluating• An essential link between control and future

planning, is that of evaluating• Feedback mechanism on a longer term basis• Past experience can be evaluated with the view to

improving utilization of methods and facilities• Divorce part of it from production planning and

control and to establish it as a separate department in its own right

PPC Classification

• Pre-Planning• Analysis of data and outline of basic planning policy

baaed on sales reports, market research, and product development and design

• This stage is concerned with problems of equipment buy and replacement, new processes and materials, layout, and work flow.

• Collecting data on the "4 M's," i.e., on materials, methods, machines, and manpower, mainly with respect to availability, scope, and capacity

PPC Classification

• Planning• A thorough analysis of the "4 M's" is first

undertaken to select the appropriate materials, methods, and facilities by means of which the work can be accomplished

• There are two aspects of planning: a short-term one, concerned with immediate production programs, and a long-term phase, where plans for the more distant future are considered and shaped

PPC Classification

• Control• Control of inventories, control of scrap, analysis of

work in process, and control of transportation are essential links of this stage

• This stage is affected by means of dispatching, inspection, and expediting.

PPC Classification

Documents used in PPC

• Master production schedule• Master process sheets• Job cards/Routing/Dispatching cards• Materials requisitions• Man-power utilization cards• Planned maintenance schedules• Summary of rejections/reworks• Suitable graphical/pictorial information sheet• Production hold up/stork-out information sheet• Anticipated production hold-up data sheet

End of chapter V