 Work Measurement – involves determining how long it should take to do a job.

Time Standards - represent the amount of time it should take a qualified worker to complete a specified task, working at a
sustainable rate, using given methods, tools, equipment, raw materials, and workplace environment (layout, conditions).

Job Times are important for:

- Manpower planning - Providing benchmarks for improvement
- Estimating labor costs - Motivating the work force
- Planning and scheduling - Designing pay incentive plans
- Budgeting

The most common ways to develop time standards for tasks:

- Stopwatch time study - Predetermined data
- Historical times - Work Sampling

A. Stopwatch study – used to develop a time standard based on observations of one worker taken over a number of cycles. The
steps in a time study are:
1. Identify the task 4. Rate the worker’s performance
2. Inform the worker that he/she is being studied 5. Compute the time standard
3. Time the job over several observation periods (cycles)

 The number of cycles that must be timed are a function of:

- Variability of the observed times
- Desired accuracy
- Desired level of confidence for the estimated job time

 The number of cycles that should be timed (to within a desired % accuracy) can be calculated by:
2
 Zs  Typical Z Values
n=   where
 aX  Desired
Z = number of normal standard Confidence
deviations for desired confidence Level % Value
s = sample standard deviaiton 90 1.65
a = desired accuracy percentage 95 1.96
X = sample mean 95.5 2.00
98 2.33
99 2.58

Example 1a: A time study analyst wants to estimate the time required to perform a certain job. A preliminary study
yielded a mean of 6.4 minutes with a standard deviation of 2.1 minutes. For a desired confidence of 95% how many cycles
must be observed if the desired accuracy is within 10% of the mean.
z  1.96 2  2
 Zs  1.96(2.1) 
a  .10 n=   =  
 aX   .10(6.4) 
X  6 .4 = 41.36 rounded up to 42

An alternate calculation for the number of cycles, when the desired accuracy is stated as an actual amount (e.g. within 1
minute of the true mean) is:
2
 Zs 
n=   where
 e 
e = accuracy or maximum acceptable error

Example 1b: For a desired confidence of 95% how many cycles must be observed if the desired accuracy is within one-half
minute?
2 2
 Zs   1.96(2.1) 
n=   = 
 e   .5 
= 67.77 rounded up to 68

 Development of a job standard time involves computation of 3 times:

1. Observed time - the average of the observed times
2. Normal time - the observed time adjusted for worker performance
3. Standard time - the length of time a worker should take to perform a job if there are no delays or interruptions

The observed time (OT) is calculated by:

 xi
OT = where
n
OT = observed time
xi = ith recorded time
n = total number of recorded times

Normal Time
a. If a job performance rating has been determined for an entire job, the normal time (NT) is calculated by:
NT = OT  PR
job
NT = normal time
PR = performance rating for the entire job
job

b. If a job performance rating has not been determined for an entire job, the normal time (NT) is calculated by:
NT =   x i  PR i  where
x i = average time for job element i
PR i = performance rating for job element i

Standard Time – the standard time (ST) is the length of time a worker should take to perform a job if there are no delays
or interruptions. An allowance factor (AF) is used to adjust the normal time to allow for delays, interruptions or breaks. The
standard time (ST) is calculated by one of the following methods:
a. Allowance factor for job time
b. Allowance factor for time worked

Allowance Factor for job time

1. If the allowance factor has been determined for the job time the standard time (ST) is calculated by:
ST = NT  AF
job
AF = allowance factor for delays, interruptions, breaks
job

2. The allowance factor based on job time is calculated by:

AF =1+ A
job job
A = allowance percentage based on job time
job

Allowance factor for time worked

1. If the allowance factor has been determined for the time worked (day) the standard time (ST) is calculated by:
ST = NT  AF
day
AF = allowance factor for delays, interruptions, breaks
day

2. The allowance factor based on time worked (day) is calculated by:

1
AF =
day 1 - A
day
A = allowance percentage based on workday
day

Example 3: A time study of an assembly operation yielded the following observed times for one element of the job for
which the analyst gave a performance rating of 1.13. Using an allowance of 20% of job time, determine the appropriate
standard time for this operation.
Time PR = 1.13 (job performance rating)
ith observation (minutes)
job
1 1.12 A = .20 (allowance for job time)
job
2 1.15
n = 9 (total number of recorded times)
3 1.16
4 1.12
 To calculate the standard time for this operation we must calculate the three times OT, NT and then ST

OT =
 xi = 10.35 = 1.15 minutes
n 9
NT = OT  PR job = 1.15 *1.13 = 1.30 minutes
ST = NT * AFjob = NT * (1 + A job ) = 1.30 *1.20 = 1.56 minutes

B. Standard Elemental Times – is derived from a firm’s own historical time study data.

Procedure:
1. Analyze the job to identify the standard elements.
2. Check the file for elements that have historical times and record them. Use time studies to obtain others, if necessary. 3.
Modify the file times if necessary.
4. Sum the elemental times to obtain the normal time, and factor in allowances to obtain the standard

C. Predetermined Time Standards – involve the use of published data on standard elemental times. To use this approach, the
analyst must divide the job into its basic elements (reach, move, turn, etc.) measure the distances involved, and rate the difficulty of
the element, and then refer to the appropriate table of data to obtain the time for that element.

D. Work Sampling – a technique for estimating the proportion of time that a worker or machine spends on various activities. It
involves observation of a worker or machine where the resulting data are counts of the number of times each activity or non-
activity is performed. (e.g. secretary typing, talking, filing, etc.) The primary use of work sampling studies is for:

1. Ratio-delay information - the percentage of a worker’s time involved in unavoidable delays or interruptions
2. Analysis of non-repetitive jobs (e.g. maintenance work, administrative work, etc.)

. (Observed Count) n = sample size

p =
n

Where:
p = sampling proportion
p = true proportion
e = allowable error

For large samples (20 or so) the maximum error can be calculated by the following formula:
 1-p)
p( 
e = z where
n
z = standard deviations to achieve the desired confidence
n = sample size

In the instance where the confidence level and maximum allowable error are specified the following formula (which is a
mathematical simplification of the previous one) can be used to determine the sample size necessary to obtain the
desired results:
2
 z
n =   p(  1  p)

 e
 Example 4: The manager of a small supermarket chain wants to estimate the proportion of time that stock clerks spend
making price changes on previously marked merchandise. The manager wants a 98% confidence level such that the
resulting error will be within 5% of the true value. What sample size should be used?
2
Typical Z Values  z
n =   p(  1  p)

Desired  e
Confidence
Level % Value e = .05 z = 2.33
90 1.65
95 1.96
95.5 2.00 We do not have an estimate of proportion, so what
98 2.33 do we do?
99 2.58

We must first start with a proportion estimate, let’s say

p = .50

Now we can use the formula to calculate the number of observations we must make.
2 2
 z  2.33
n =   p(  1  p)
 =   *.5(1.5) = 542.89 or 543
 e  .05 

Suppose that after 20 observations we notice that the stock clerks only changed prices 2 times. At that time, we revise our
proportion estimate and recalculate n.
2
p = = .10
20

2 2
 z  2.33
n =   p(  1  p)
 =   *.1(1.1) = 195.44 or 196
 e  .05 

Suppose that after 80 more observations (100 total) we notice that the stock clerks only changed prices 11 times. At that
time, we revise our proportion estimate and recalculate n.
11
p = = .11
100

2 2
 z  2.33
n =   p(  1  p)
 =   *.11(1.11) = 212.60 or 213
 e  .05 

The manager might want to make an additional check before settling on a final value of n.

 Job Designs – the process of linking specific tasks to specific jobs and deciding what techniques, equipment, and procedures
should be used to perform those tasks.

A. Job Design Decisions

B. Behavioral Conditions in Job Design
1. Job Enlargement – horizontal expansion of a job.
2. Job Rotation – refers to moving employees from job to job to add variety and reduce boredom by allowing them to perform a
variety of tasks.
3. Job Enrichment – the addition to a job of tasks that increase the amount of employee control or responsibility.

C. Physical Considerations in Job Design

1. Work Physiology – an approach to incorporating the physical costs of moderate to heavy work in a job design. It is pioneered
by Eastman Kodak in the 1960’s, it sets work-rest cycles according to the energy expended in various parts of the job. The harder
the work the more frequent and longer the rest periods.

Calorie Requirements for Various Activities

TYPICAL ENERGY COST IN CALORIES PER REQUIRED MINUTES OF REST FOR EACH MINUTE
TYPE OF ACTIVITY
MINUTE* OF WORK

Sitting at rest 1.7 -

Writing 2.0 -
Typing on a
computer 2.0 -
Medium assembly
work 2.9 -
Shoe repair 3.0 -
Machining 3.3 -
Ironing 4.4 -

Heavy assembly work 5.1 -

Chopping wood 7.5 1
Digging 8.9 2
Tending furnace 12.0 3
Walking upstairs 12.0 3

2. Ergonomics – term used to describe the study of the physical arrangement of the workspace together with the tools used to
perform a task. It is striving to fit the work to the body rather than forcing the body to conform to the work.
D. Work Methods
1. Production Process – the objective in studying a production process is to identify delays, transport distances, processes and
processing time requirements to simplify the entire operation. It is the underlying philosophy is to eliminate any step in the process
does not add value to the product. The approach in the production process is to flowchart the process and then ask the following
questions:

a. WHAT is done? What would happen if it were not done?

b. WHERE is the task done? Must it be done at the location or it could be done somewhere else?
c. WHEN is the task done? Is it critical that it be done then or is there flexibility in the time and sequence? Could it be
combined with some other step in the process?
d. HOW is the task done? Why is it done this way? Is there another way?
e. WHO does the task Can someone else do it? Should the worker be of a higher or lower skill level

Flow Diagram and Process Chart of an Office Procedure- Present Method

 PRESENT METHOD
PROPOSED METHOD

SUBJECT
CHARTED: PROCESSING OF DISBURSEMENT VOUCHERS
Chart begins at the courier's desk and ends at the supplies custodian for check prep
DEPT.: Admin and General Acctg. Section

DIST. IN FT. TIME IN MINS. CHART SYMBOLS PROCESS DESCRIPTION

30 DV rerceived by the courier (1DV)
30 On admin staff's desk (for preparation of checklist & transmittal)
20 1 By admin staff to bookkeeper
10 On bookkeeper's desk (processing of DV)
10 1 By Bookkeper to accountant
60 On accountant's desk (awaiting for review & signature)
5 Review and signing of DV
60 3 By the accountant to the Vice President
60 On the VP's desk (awaiting for approval)
3 Examination and approval of DV
50 3 By VP to bookkeeper
5 On bookkeeper's desk (encoding in SAP)
15 1 By Bookkeper to CEO II
2 On CEO II's desk (posting in SAP)
15 1 By CEO II to Bookkeper
60 On bookkeeper's desk (for segregation)
2 On bookkeeper's desk (segregation of DV)
20 1 By Bookkeeper to Supplies Custodian (for check preparation & transmittal)

190 278 7 7 2 4 Total

Notation for the Process Chart

Operation- Something is actually being done

Transportation- The project of the study moves from one location to another
Inspection- The subject is observed for quality and correctness
Delay- The subject of the study must wait before starting the next step
Storage- The subject is stored

Work Methods Design Aids

ACTIVITY OBJECTIVE OF THE STUDY STUDY TECHNIQUES

Production process Eliminate or combine steps; shorten transport Flow diagram, service blueprint, process chart
distance; identify delays
Worker at fixed Simplify method; minimize motions Operations charts, silo charts, apply principles
workplace of motion economy
Workers interaction Minimize idle time; find number or combination Activity chart, worker machine charts
with equipment of machines to balance cost of worker and
machine idle time
Worker's interaction Maximize productivity; minimize interference Activity charts, gang process charts
with other workers

 Worker at a Fixed Workplace - many jobs require the worker to remain at a specified workstation when the work is primarily
manual.

A. Objective: To simplify method and minimize motions.

B. Approach Used to Study: Apply principles of motion economy.

Two Approaches That Can Be Used in Studying a Worker in a Fixed Workplace:

1. Time Study - search among the workers and find the one who performs the job best. (Frederick W. Taylor’s approach)
 2. Micro-motion Study - observe the performance of a number of workers, analyze in detail each step of their work and pick out
the superior features of each worker’s performance. (Frank Gilbreth’s approach)

Taylor observed actual performance to find the best method while Frank Gilbreth and his wife Lilian came up with the idea of
filming workers to analyze their motions. In this way, they were able to predict the most efficient workflow for a particular job.

 Worker Interacting with Equipment – a person and an equipment operate together to perform a productive process.

A. Objective: To minimize idle time; find number or combination of machines to balance cost of worker and machine idle time.
B. Approach Used to Study: Worker-Machine Chart

Example of Worker-Machine Chart for a Gourmet Coffee Shop:

 Worker Interacting with Other Worker

A. Objective: To maximize productivity and minimize interference.

B. Approach Used to Study: Activity Chart
 Example of Activity Chart of Emergency Tracheotomy:

This shows an activity chart for a hospital’s emergency routine in performing a tracheotomy (an operation for opening a patient’s
throat surgically to allow him or her to breathe). Where, detailed activity analysis is of major importance because any unnecessary
delay could be fatal.

 Learning Curves – a line displaying the relationship between unit production time and cumulative number of units produced. It
can be applied to individuals or organization.

A. Application of Learning Curves

1. Three assumptions:
a. The amount of time required complete a given task or unit of a product will be less each time the task is undertaken.
b. The unit time will decrease at a decreasing rate.
c. The reduction in time will follow a predictable pattern.

Each of these assumptions was found to hold true in the airplane industry, where learning curves were first applied. In this
application, it was observed that as output doubled, there was a 20 percent reduction in direct production worker-hours
per unit between doubled units. Thus, if it took 100,000 hours for Plane 1, it would take 80,000 hours for Plane 2, 64,000
hours for Plane 4, and so forth. Because the 20 percent reduction meant that, say, Unit 4 took only 80 percent of the
production time required for Unit 2, the line connecting the coordinates of output and time was referred to as “80 percent
learning curve”. (By convention, the percentage learning rate is used to denote any given exponential learning curve.)

2. Two ways to think about the improved performance that comes with learning curves:
time per unit (as Exhibit TN4.1A) or units of output per period (as in TN4.1B)
B. Plotting Learning Curves
C. Logarithmic Analysis – the normal form of learning curve equation is:

To find the labor-hour requirement for the eight unit in our example. (Exhibit TN4.2), we would substitute as follows:

D. Learning Curve Tables

To illustrate, suppose we want to double-check the figures in Exhibit TN4.2 for unit and cumulative labor hours for Unit 16. From
Exhibit TN4.5, the unit improvement factor for Unit 16 at 80 percent is .4096. This multiplied by 100,000 (the hours for Unit 1) gives
40,960, the same as in Exhibit TN4.2. From Exhibit TN4.6, the cumulative improvement factor for cumulative labor hours for the first
16 units is 8.920. When multiplied by 100,000, this gives 892,000, which is reasonably close to the exact value of 892,014 shown in
Exhibit TN4.2.

Example TN4.1: Sample Learning Curve Problem

Captain Nemo, owner of the Suboptimum Underwater Boat Company (SUB), is puzzled. He has a contract for 11 boats and has
completed 4 of them. He has observed that his production manager, young Mr. Overick, has been reassigning more and more
people to torpedo assembly after the construction of the first four boats. The first boat, for example, required 225 workers, each
working a 40-hour week, while 45 fewer workers were required for the second boat. Overick has told them that “this is just the
beginning” and that he will complete the last boat in the current contract with only 100 workers! Overick is banking on the learning
curve, but has he gone overboard?

Example TN4.2: Estimating Cost Using Learning Curves

SUB has produced the first unit of a new line of minisubs at a cost of $500,000 - $200,000 for materials and $300,000 for labor. It
has agreed to accept a 10 percent profit, based on cost, and it is willing to contract on the basis of a 70 percent learning curve.
What will be the contract price for three minisubs?

E. Estimating the Learning Percentage

F. General Guidelines for Learning

1. Individual Learning - improvement that results when people repeat a process and gain skill or efficiency from their
own experience.

Guidelines to improve individual performance include the following:

a. Proper selection of workers
b. Proper training
c. Motivation
d. Work specialization
e. Do one or very few jobs at a time
f. Use tools or equipment that assists or supports performance
g. Provide quick and easy access for help
h. Allow workers to help redesign their tasks
 2. Organizational Learning – improvement that comes both from experience and from changes in administration,
equipment, and product design.

G. Learning Curves Applied to Heart Transplant Mortality – the learning curve model in the heart transplant analysis was of the
form:

Where:

= is the cumulative average resource consumption (the total number of deaths, costs and so on divided by the number of
transplants)
= is the asymptote (the minimum)
= is the maximum possible reduction (the difference between the first unit and minimum)

= is the total number of units produced

= is the rate of change for each successive unit

 Reference: Richard B. Chase, et.al. OPERATIONS MANAGEMENT for Competitive Advantage 11th edition