Examples of

Time Study
&Productivity
Measures
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 Work Measurement

Normal Time: Time required for an average,

trained operator to perform a task under usual
conditions and at normal pace.
Normal Pace: The pace of an average,
trained, and conscientious operator working
over an 8-hour day
Actual Time: The observed time required for
an operator to perform a task.
Allowance: The amount of time added to the
normal time to provide for personal needs,
unavoidable, and fatigue.
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 Standard Time vs Normal Time

Normal time is the time when work should be done

without any delays.

Standard Time, is the time taken by the worker to

complete the work with some delays.
 Standard Time vs Normal Time

Normal time = Observed Time x Performance Rating

Outline
Standard Time = Normal Time (Base Time)x(1+Allowance%)

Allowance = Personal needs (4%)+ Fatigue (5%) +unavoidable delay (3%)

=12%

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 Time Study Examples

Ex. 1 A job has been sub-divided into five elements. The time for
each element and performance rating is 98%.
Compute the normal time and the standard time of this job, if the
allowance is 12%.

Element R1 R2 R3 R4 Average
Solution
number (min.) First:-
1
-- -- -- -- 0.7 Average time (observed time)=
0.7 + 0.8 + 1.3 + 0.5 + 1.2 = 4.5𝑚𝑖𝑛.
2 0.8
-- -- -- -- Normal Time =4.5 ∗ 0.98 = 4.41𝑚𝑖𝑛.
3
-- -- -- -- 1.3 Second:-
4 Standard Time = 4.41 ∗ 1 + 0.12 ≅ 4.94𝑚𝑖𝑛
-- -- -- -- 0.5

5
-- -- -- -- 1.2

Dr. Ghada Elgohary 5

 Time Study Examples

Ex. 2 A job has been sub-divided into four elements. The time for
each element and performance rating is 115%.
Compute the normal time and the standard time of this job, if the
allowance is 12%.

Solution
Element Observed time
First:-
number (min.) Average time (observed time)=
1 15 15 + 7 + 5 + 8 = 35𝑚𝑖𝑛.
Normal Time =35 ∗ 1.15 = 40.25𝑚𝑖𝑛.
2 7
Second:-
3 5 Standard Time = 40.25 ∗ 1 + 0.12 =
4 8 45.08𝑚𝑖𝑛

Dr. Ghada Elgohary 6

 Productivity Measurement Basics
Productivity measurement is a ratio of organizational
outputs to organizational inputs.

Productivity indices can be “static” or “dynamic”.

Static measures are ratios taken as a snapshot with no
base year comparison. Dynamic measures are actually
ratios of static productivity indices, as in Equation (6.2)
outputs this year

Dynamic productivity=
inputs this year
output base year Equation (6.2)
inputs base year
Therefore, indices > 1 show Productivity improvement
While, indices < 1 show Productivity deterioration
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 Continue

Partial Measures Composite

Units/Person Hour 𝐔𝐧𝐢𝐭𝐬
Units/Pound of Material $𝐋𝐚𝐛𝐨𝐫 𝐂𝐨𝐬𝐭 + $𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥 𝐂𝐨𝐬𝐭 + $𝐄𝐧𝐞𝐫𝐠𝐲 𝐂𝐨𝐬𝐭
Units/Million BTU of Energy

Figure 6.16 Productivity indices.

All the ratios in Figure 6.16 are static, which may be

partial or total.

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 Productivity Examples

Sen & Co. of Bombay, manufacturing TV set produced 20,000 TV

sets by employing 100 people at 8 hours/day for 25days.
Calculate the partial productivity ratios for this period.

Solution
𝑂𝑢𝑡𝑝𝑢𝑡(𝑈𝑛𝑖𝑡𝑠) 20,000 𝑇𝑉
Partial Productivity (Units/Labor Hour) = = =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐿𝑎𝑏𝑜𝑟𝑠 𝑢𝑠𝑒𝑑 100∗8∗25
1 TV /man-hour

If the number of TV sets is increased, what will happen?

Dr. Ghada Elgohary 9

 Productivity Examples

Ex. 1 A manufacturing company’s data for output produced and

inputs consumed for a particular time period are given below:
Output Rs. 2,000
Human input Rs. 600
Material input Rs. 400
Capital input Rs. 600
Energy input Rs. 200
Other expenses input Rs. 100
Solution
The Partial, and total productivity values computed as follows:
𝑂𝑢𝑡𝑝𝑢𝑡(𝑈𝑛𝑖𝑡𝑠) 2,000
Human Productivity = = Rs. 3.33
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐿𝑎𝑏𝑜𝑟𝑠 𝑢𝑠𝑒𝑑 600

Dr. Ghada Elgohary 10

Productivity Examples

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Productivity Examples

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 Productivity Examples

Prob. 4
You are working with Giziwizets, Inc. , on productivity
measurement. They give you the following data, calculate:
(a) Partial productivity ratios for this year, and the base year.
(b) Productivity ratios for this year.
What can you say about the company’s productivity?

Base year This year

Output (number of 110 160
giziwizts)
Labor hours 250 275
Energy (Million 10,000 60,000
Btu)
Material (Ib) 500 675
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 Productivity Examples

Solution
The Partial productivity values computed as follows (this year)
𝑂𝑢𝑡𝑝𝑢𝑡(𝑈𝑛𝑖𝑡𝑠)
𝑝𝑎𝑟𝑡𝑖𝑎𝑙 𝑖𝑛𝑝𝑢𝑡
160
1- Labor Productivity =
275
≅ 0.582𝑢𝑛𝑖𝑡/ℎ𝑜𝑢𝑟 1.72hour/unit
160
2- Energy Productivity = ≅ 0.00267𝑢𝑛𝑖𝑡/𝑀𝑖𝑙𝑙𝑖𝑜𝑛𝐵𝑡𝑢
60,000
374.53MBtu/unit
160
3- Material Productivity =
675
≅ 0.237𝑢𝑛𝑖𝑡/𝐼𝑏 4.219Ib/unit

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 Productivity Examples

(b) Total Productivity for this year

𝑂𝑢𝑡𝑝𝑢𝑡
Static productivity (this year)=
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑝𝑢𝑡

160
Static productivity (this year)= ≅ 0.00263
275+60,000+675
𝑜𝑢𝑡
(𝑡ℎ𝑖𝑠 𝑦𝑒𝑎𝑟) 0.00263
Dynamic productivity= = 0.257
𝑖𝑛𝑝𝑢𝑡
𝑜𝑢𝑡 =
(𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟) 0.01023
𝑖𝑛𝑝𝑢𝑡

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