Krajewski IN Supplement H - Supplement H Measuring Output...

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Supplement H Measuring Output Rates A. Work Standards 1. Work measurement as a management tool a. An essential input to managing processes and value chains. b. How work standards are used: Establishing prices and costs Motivating workers Comparing alternative process designs Scheduling Constraint management Capacity planning Performance appraisal 2. Areas of controversy a. Standards set "too high" or "too low" b. Use of work standards for piecework incentives May defeat their purpose of increased productivity because workers become secretive about work methods devised to increase output. Workers may increase quantity at the expense of quality. B. Methods of Work Measurement 1. Formal Methods of work measurement: a. Time study method b. Elemental standard data approach c. Predetermined data approach d. Work sampling method 2. Time study method. Time study is the method used most often for setting time standards. a. Steps in a time study (Illustrate quickly with Examples H.1 - H.3 , and accompanying PowerPoint slides.) Step 1. Selecting work elements—each should have definite starting and stopping points. Separate incidental operations from the repetitive work. H-1
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H-2 Supplement H: Measuring Output Rates Step 2. Timing the elements—Use either the continuous or snap-back method. Irregular occurrences should not be included in calculating the average time. Step 3. Determining sample size—varies with confidence, precision, and variability of the work element times. Step 4. Setting the standard—Apply subjective performance rating factor, calculate normal times, normal time for the cycle, and adjust for allowances. b. Time Study Method. Use Application H.1 to give the students an opportunity to go through the four steps in a time study on their own. Lucy and Ethel have repetitive jobs at the candy factory. Management desires to establish a time standard for this work for which they can be 95% confident to be within ± 6% of the true mean. There are three work elements involved: Step 1: Selecting work elements. #1: Pick up wrapper paper and wrap one piece of candy. #2: Put candy in a box, one at a time. #3: When the box is full (4 pieces), close it and place on conveyor. Step 2:
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Krajewski IN Supplement H - Supplement H Measuring Output...

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