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PowerPoint Slides

Krajewski/Ritzman/Malhotra

by Jeff Heyl © 2010 Pearson Education

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. H–1

Work Standards

worker to perform a task following a prescribed

method with normal effort and skill

Used in the following ways:

Establishing prices and costs

Motivating workers

Comparing alternative process designs

Scheduling

Capacity planning

Performance appraisal

Methods of Work Measurement

The elemental standard data approach

The predetermined data approach

The work sampling method

The Time Study Method

Step 1: Selecting work elements

Step 2: Timing the elements

Step 3: Determining sample size

2

z

n

p t

where

n= required sample size

p= precision of the estimate as a proportion of the true value

t= select time for a work element

= standard deviation of representative observed times for a

work element

z = number of normal standard deviations needed for the

desired confidence

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. H–4

The Time Study Method

90 1.65

95 1.96

96 2.05

97 2.17

98 2.33

99 2.58

Estimating the Sample Size in a

Time Study

EXAMPLE H.1

A coffee cup packaging operation has four work elements. A

preliminary study provided the following results:

Standard

Deviation, Select Time, Sample

Work Element , (min) t, (min) Size

1. Get two cartons 0.0305 0.50 5

2. Put liner in carton 0.0171 0.11 10

3. Place cups in carton 0.0226 0.71 10

4. Seal carton and set aside 0.0241 1.10 10

once every two work cycles. The study covered the packaging of

10 cartons. Determine the appropriate sample size if the estimate

for the select time for any work element is to be within 4 percent

of the true mean 95 percent of the time.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. H–6

Estimating the Sample Size in a

Time Study Standard

Deviation, Select Time, Sample

Work Element , (min) t, (min) Size

1. Get two cartons 0.0305 0.50 5

SOLUTION 2. Put liner in carton 0.0171 0.11 10

4. Seal carton and set aside 0.0241 1.10 10

2

1.96 0.0305

Work element 1: n = = 9

0.04 0.500

2

1.96 0.0171

Work element 2: n = = 58

0.04 0 .11

2

1.96 0.0226

Work element 3: n = = 3

0.04 0.71

2

1.96 0.0241

Work element 4: n = = 2

0.04 1.10

The Time Study Method

Apply subjective performance rating factor

(RF), calculate normal times (NT), normal

time for the cycle (NTC), and adjust for

allowances

NT = t(F)(RF)

NTC = NT

ST = NTC(1 + A)

where

F = the frequency of occurrence

A = proportion of the normal time added for allowances

Determining the Normal Time

EXAMPLE H.2

Suppose that 48 additional observations of the coffee cup

packaging operation were taken and the following data were

recorded:

Work Element t F RF

1 0.53 0.50 1.05

2 0.10 1.00 0.95

3 0.75 1.00 1.10

4 1.08 1.00 0.90

Because element 1 occurs only every other cycle, its average time

per cycle must be half its average observed time. That is why F1 =

0.50 for that element. All others occur every cycle. What are the

normal times for each work element and for the complete cycle?

Determining the Normal Time

SOLUTION

The normal times are calculated as follows:

Determining the Standard Time

EXAMPLE H.3

Management needs a standard time for the coffee cup

packaging operation. Suppose that A = 0.15 of the normal time.

What is the standard time for the coffee cup packaging

operation, and how many cartons can be expected per 8-hour

day?

SOLUTION

For A = 0.15 of the normal time,

Application H.1

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:

SOLUTION

Step 1: Selecting work elements

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

Application H.1

Step 2: Timing the elements. Select an average trained worker,

Lucy will suffice.

Element 1 2 3 4 5 6 7 8 9 Time, t Dev,

Wrap #1: .10 .08 .08 .12 .10 .10 .12 .09 .11

Pack #2: .10 .08 .08 .11 .06 .98* .17 .11 .09

Close #3: .27 ... ... ... .34 ... ... ... .29

don't use this observation.

Application H.1

Step 2: Timing the elements. Select an average trained worker,

Lucy will suffice.

Element 1 2 3 4 5 6 7 8 9 Time, t Dev,

Wrap #1: .10 .08 .08 .12 .10 .10 .12 .09 .11 0.1 0.015

Pack #2: .10 .08 .08 .11 .06 .98* .17 .11 .09 0.1 0.03295

Close #3: .27 ... ... ... .34 ... ... ... .29 0.3 0.03606

element in Step 2. Assume a 95% confidence interval,

with z = 1.96. The precision interval of ± 6% of the true

mean implies p = 0.06. To determine the sample size,

use the largest value of / t .

2

z

2

1.96 0.03295

n 116

p t 0.06 0.10

Application H.1

Step 4: Setting the standard.

a. The analyst subjectively assigns a rating factor.

b. Determine the normal time (NT) for each work

element, given the following rating factors.

because closing the box occurs only once every four cycles.

NTC = NT = 0.12 + 0.09 + 0.06 = 0.27 minutes

Application H.1

d. Subjectively determine the proportion of the normal

time to be added for allowance, and then calculate

standard time ST. Let the allowance be 18.5% of the

normal time (A = .185).

Overall Assessment

time standards

Qualified analysts can typically set

reasonable standards

Not appropriate for “thinking” jobs

Not appropriate for non-repetitive jobs

Inexperienced persons should not conduct time

studies because errors can result in

unreasonable standards

Workers may object to judgment and

subjectivity involved

Elemental Standard Data Approach

when a high degree of similarity exists for basic

elements of work for different services and

processes

Time standards are developed for common work

elements

Study results are stored in a database for later use in

establishing standards for jobs requiring those elements

Allowances must still be added

An equation may be used to account for the effect on

time required by certain variable characteristics of the

jobs

This approach reduces the number of time studies

needed, but does not eliminate time studies

Predetermined Data Approach

micromotions: reach, move, disengage,

apply pressure, grasp, position, release,

and turn

Step 1: Break each work element into its basic

micromotions

Step 2: Find the proper tabular value of time for

each micromotion

Step 3: Normal times of micromotions are added

for the task

Step 4: Adjust for allowances to arrive at the

standard time

Predetermined Data Approach

Time TMU Wt. Allowance

Distance Hand in

Wt. (lb) Dynamic Static Constant

Moved A B C Motion

Up to Factor (TMU)

(in.) B

3/4 or

2.0 2.0 2.0 1.7

less

1 2.5 2.9 3.4 2.3 2.5 1.00 0

2 3.6 4.6 5.2 2.9

3 4.9 5.7 6.7 3.6 7.5 1.06 2.2

4 6.1 6.9 8.0 4.3

5 7.3 8.0 9.2 5.0 12.5 1.11 3.9

6 8.1 8.9 10.3 5.7

7 8.9 9.7 11.1 6.5 17.5 1.17 5.6

8 9.7 10.6 11.8 7.2

9 10.5 11.5 12.7 7.9 22.5 1.22 7.4

Predetermined Data Approach

Advantages

Standards can be set for new jobs

Work methods can be compared without a

time study

Greater consistency of results

Reduces the problem of biased judgment

Predetermined Data Approach

Disadvantages

Impractical for jobs with low repeatability

Data may not reflect the actual situation in a

specific plant

Performance time variations can result from

many factors

Actual time may depend on the specific

sequence of motions

Considerable skill is required to achieve good

standards

Work Sampling Method

an activity, rather than a standard time for

the work

Requires a large number of random

observations spread over the length of the

study

Proportion of observations in which the

activity occurs is assumed to be the

proportion of time spent on the activity in

general

Work Sampling Method

Step 2. Design the observation form

Step 3. Determine the length of the study

Step 4. Determine the initial sample size

Step 5. Select random observation times using a

random number table

Step 6. Determine observer schedule

Step 7. Observe the activities and record the data

Step 8. Decide whether further sampling is required

Work Sampling Method

proportion of time spent on a particular activity

that does not differ from the true proportion by

more than a specified error, so

pˆ e pˆ pˆ e

where

p̂ = sample proportion (number of occurences

divided by the sample size)

e = maximum error in the estimate

Work Sampling Method

error of the estimate is

pˆ 1 pˆ

ez

n

where

n = sample size

z = number of standard deviations needed to

achieve the desired confidence

Solving for n

2

z

n pˆ 1 pˆ

e

Work Sampling Method

pˆ 1 pˆ

ez

n

proportion will fall

within confidence interval

pˆ e p̂ pˆ e

Confidence interval

Using Work Sampling Data

EXAMPLE H.4

The hospital administrator at a private hospital is considering a

proposal for installing an automated medical records storage

and retrieval system. To determine the advisability of

purchasing such a system, the administrator needs to know the

proportion of time that registered nurses (RNs) and licensed

vocational nurses (LVNs) spend accessing records. Currently,

these nurses must either retrieve the records manually or have

them copied and sent to their wards. A typical ward, staffed by

eight RNs and four LVNs, is selected for the study.

Using Work Sampling Data

a. The hospital administrator estimates that accessing records

takes about 20 percent of the RNs’ time and about 5 percent

of the LVNs’ time. The administrator wants 95 percent

confidence that the estimate for each category of nurses

falls within 0.03 of the true proportion. What should the

sample size be?

b. The hospital administrator estimates that the annual

amortization cost and expenses for maintaining the new

automated medical records storage and retrieval system will

be $150,000. The supplier of the new system estimates that

the system will reduce the amount of time the nurses spend

accessing records by 25 percent. The total annual salary

expense for RNs in the hospital is $3,628,000, and for LVNs it

is $2,375,000. The hospital administrator assumes that

nurses could productively use any time saved by the new

system. The pilot work sampling study resulted in the data

shown in Figure H.2. Should the administrator purchase the

new system?

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. H – 29

Using Work Sampling Data

Activity

Other

Accessing Attending support Idle or Total

records to patients activities break observations

Using Work Sampling Data

SOLUTION

a. Using estimates for the proportion of time spent accessing

records of 0.20 for RNs and 0.05 for LVNs, an error of ± 0.03

for each, and a 95 percent confidence interval (z = 1.96), we

recommend the following sample sizes:

2

1.96

RN: n 0.20 0.80 683

0.03

2

1.96

LVN: n 0.05 0.95 203

0.03

Using Work Sampling Data

Eight RNs and four LVNs can be observed on each trip.

Therefore, 683/8 = 86 (rounded up) trips are needed for the

observations of RNs, and only 203/4 = 51 (rounded up) trips are

needed for the LVNs. Thus, 86 trips through the ward will be

sufficient for observing both nurse groups. This number of trips

will generate 688 observations of RNs and 344 observations of

LVNs. It will provide many more observations than are needed

for the LVNs, but the added observations may as well be

recorded as the observer will be going through the ward

anyway.

Using Work Sampling Data

b. Before using the estimates from the work sampling study,

we must be sure that additional sampling is not required.

Figure H.2 shows that RNs accessed records 124 times and

LVNs only 28 times. The computer output shows that the

proportion of working time spent on accessing records is

0.1802 for the RNs and 0.0814 for the LVNs. Thus, the

original estimates were off the mark. The computer uses the

new estimates for the proportions in the same formulas we

used in part (a) to revise the sample sizes. However, the new

sample sizes are smaller than those already used, so no

additional sampling is required. If the sample sizes were too

small for the proportions found, additional sampling would

have to be performed. In addition, the confidence interval

shows the range possible in the “true” proportions, based

on the results of the pilot study. For example, the actual

proportion of time spent by the RNs on accessing records

could be as low as 0.15 and as high as 0.21.

Using Work Sampling Data

Confidence Interval

Required

Total Activity Proportion

Workgroup Sample

Obs. Obs. of Total Lower Upper

Size

RN 688 124 0.1802 0.15151 0.2090 631

Because the nurses will not be using the system all the time,

we accept the supplier’s estimate of 25 percent to determine

the value of the time spent accessing records. Estimated

annual net savings from the purchase of the automatic medical

records storage and retrieval system are

= $60,760

Application H.2

Major League Baseball (MLB) is concerned about excessive

game duration. Batters now spend a lot of time between pitches

when they leave the box to check signals with coaches, and

then go through a lengthy routine including stretching and a

variety of other actions. Pitching routines are similarly

elaborate. In order to speed up the game, it has been proposed

to prohibit batters from leaving the box and to prohibit pitchers

from leaving the mound after called balls and strikes. MLB

estimates the proportion of time spent in these delays to be

20% of the total game time. Before they institute a rules change,

MLB would like to be 95% confident that the result of a study

will show a proportion of time wasted that is accurate within ±

4% of the true proportion.

Application H.2

SOLUTION

Steps 1 and 2. Define the activities and design the observation

form.

Step 3. Determine the length of the study. Suppose that

ten games (or 32 hours) are appropriate.

Step 4. Determine the initial sample size.

2

n

1.96

0.201 0.20 385 observations

0.04

385

12.03 or 12 observations per hour

32

Application H.2

Step 7. Observe the activities and record the data. You

find 96 unacceptable delays for pitchers and 46

unacceptable delays for batters.

Step 8. Check to see whether additional sampling is

required.

For pitchers:

2

n

1.96

0.251 0.25 450 observations

0.04

For batters:

2

n

1.96

0.121 0.12 254 observations

0.04

Overall Assessment

Advantages

No special training required of observers

Several studies can be conducted simultaneously

More economical for jobs having long cycle times

Workers prefer this method to time studies

Disadvantages

A large number of observations are required

Usually not used for repetitive, well-defined jobs

Workers may increase quantity at the expense of quality

Managerial Considerations

measurement techniques to ensure that

they are used in ways that are consistent

with the firm’s competitive priorities

Technological changes

Increased automation

There is less need to observe and rate worker

performance, because work is machine paced

Work sampling may be electronically

monitored

Solved Problem 1

For a time study of a health insurance claims-adjusting

process, the analyst uses the continuous method of recording

times. The job is divided into four work elements. Shown in

Figure H.3 are the performance rating factors, RF, and the

continuous method recorded times, r, for each work element.

b. Calculate the standard time for this job, assuming that the

allowance is 20 percent of the normal time.

c. What is the appropriate sample size for estimating the time

for element 2 within ± 10 percent of the true mean with 95

percent confidence?

Solved Problem 1

Observations

Work Element 1 2 3 4 5 t RF

1. Check form completion

and signatures r 0.50 3.30 5.70 8.20 10.85

2. Enter claim amounts,

check math r 0.70 3.45 5.95 8.55 11.10

3. Determine proportion of

claim to be disallowed r 1.45 4.05 6.50 9.25 11.75

4. Generate form letter,

enter data for check r 2.75 5.25 7.60 10.35 13.05

Solved Problem 1

SOLUTION

a. To get the normal time for this job, we must first determine

the observed time, t, for each work element for each cycle.

We calculate the time for each observation by finding the

difference between successive recorded times, r. For

example, the time for the fifth observation of the first work

element is the difference between the recorded time when

that element was completed and the time when the fourth

observation of the fourth work element was completed. With

no extreme variation in the observed times for the work

elements, they are representative of the process. All the data

can be used for calculating the average observed time,

called the select time, t, and the standard deviation of the

observed times, . The results of those calculations are

given in Figure H.3. Every work element occurs during every

cycle, so the frequency, F, equals 1.

Solved Problem 1

The normal times are calculated as

NT1 t F RF

Solved Problem 1

b. Standard time = (Normal time per cycle)(1.0 + Allowances), or

= 3.264 minutes

that the select time for work element 2 is within 10 percent

of the true mean is

2

z

2

1.96 0.0742

n 0.10 0.24

p t

= 36.72, or 37 observations

Solved Problem 2

A library administrator wants to determine the proportion of

time the circulation clerk is idle. The following information was

gathered randomly by using work sampling:

Day Clerk Busy Clerk Idle Observations

Monday 8 2 10

Tuesday 7 1 8

Wednesday 9 3 12

Thursday 7 3 10

Friday 8 2 10

Saturday 6 4 10

degree of precision of ± 4 percent, how many more

observations are needed?

Solved Problem 2

SOLUTION

The total number of observations made was 60. The clerk was

observed to be idle 15 times. The initial estimate of the sample

proportion is pˆ 15 / 60 0.25 . The required sample size for a

precision of 4 percent is

2

n

e 2

0.04 2

450.19, or 451 observations

391 are needed.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. H – 47

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