METHODS ENGINEERING

WORK MEASUREMENT

Why?
JOB DESIGN WORK MEASUREMENT
Organizational rationale for the job;
• Involves job design, work
objectives and motivation of the worker
measurement, establishment of time
standards and worker compensation. How?
Job Design involves specifying the content Method of performance and motivation
and methods of jobs.
The goal is to create a work system that is
productive and efficient. JOB DESIGN
A properly designed job

To be successful, job design must:

• be carried out by personnel with • Improves efficiency through analysis

proper training and background of the job’s work elements

• consistent with the goals of the • Improves productivity through

organization consideration of technical and human
factors
• in written form
• Increases the quality of the final
• understood and agreed to by both product or service
management and employees
• Increases worker satisfaction4

• Improves the bottom line

ULTIMATE JOB STRUCTURE
Who?
EVOLUTION OF JOB DESIGN
Mental and physical characteristics of the
1900s to 1960s
work force
Scientific Management/Assembly Lines
What?
• Task specialization
Tasks to be performed
• Minimal worker skills
Where? • Repetition
• Minimal job training
Geographic locale of the organization;
• Mass production
location of work areas • Piece-rate wages
• Time as efficiency
When?
• Minimal job responsibility
Time of day; time of occurrence in the work • Tight supervisory control
flow
 METHODS ENGINEERING
1970s to 1990s
Two major approaches to job design:
Employee Participation & Involvement
Efficiency, Behavioral
• Horizontal job enlargement
Efficiency - emphasizes systematic, logical
• Vertical job enlargement
approach
• Extensive job training
• Job control Behavioral - emphasizes the satisfaction of
• Training & education wants and needs
• Job rotation
• Higher skill levels Considerations in Job Design
• Team problem solving
• Focus on quality • Specialization
• Behavioral Approaches to Job
Design
RECENT TRENDS IN JOB DESIGN • Teams
• Methods Analysis
Some of the recent trends in job design • Motion Study
include:
• Working conditions
• Quality control as part of the worker's
• Incentive pay plans
job
SPECIALIZATION
• Increased skill & ability levels - cross-
training workers to perform multi- Specialization - jobs that have a very narrow
skilled jobs - education & training scope (welder, plumber, medical technician,
viewed as long-term investments real estate lawyer, assembly line worker)

• Employee involvement (responsibility ADVANTAGES

& empowerment) and team
approaches to designing and For Management
organizing work (job and task
flexibility • simplifies training
• high productivity
• Involving ordinary workers through
• low wage costs
telecommunication networks and
computers
For Labor

• Extensive use of temporary workers

• low education requirements
• minimum responsibilities
• Technology & automation of heavy
• little mental effort required
manual work

• Organizational commitment to
providing meaningful and rewarding
jobs (content & remuneration) for all
employees
 METHODS ENGINEERING
DISADVANTAGES TEAMS

For Management Teams - responsibility for the problems are

shared among team
• difficult to motivate quality members - sometimes difficult to implement
• worker dissatisfaction because of
• little control over work
• management issues (feeling
For Labor threatened of losing control)
• people issues (getting along with
• monotonous work each other)
• limited advancement
• little self-fulfillment Self-directed teams - empowered to make
changes in their work environment (e.g.
BEHAVIORAL APPROACHES workers doing the work are more
knowledgeable)
Behavioral Approaches to Job Design
deal with improving the worker’s attitude Advantages
toward their jobs. Over the last few years
advancement has been made to empower • higher quality
employees by giving the worker more • higher level of motivation
responsibility for their work. • higher level of job satisfaction leading
to lower absenteeism, less turnover
Theory X - workers do not like to work and and lower costs for training new
have to be controlled rewarded, punished) to workers
get them to do a good job.
SUCCESSFUL TEAMS
Theory Y - workers who enjoy their work will
become committed to doing a good job. The more successful teams have

Theory Z – (William Ouchi) workers who are • Common commitment to overarching

empowered to control their work (solve purpose
problems, participate in decisions) will • Shared leadership
develop an ownership attitude. • Individual and collective performance
judgement
• Open-ended discussion
Job Enlargement - giving a worker a larger • Team works together
portion of the total task by increasing the • Meaningful, well-defined direction
variety of skills • Positive environment
• Clear rules for behavior
Job Rotation - workers periodically
• Early successes
exchange jobs
• Fresh ideas from outside the team
• Spend lots of time together
Job Enrichment - increasing responsibility
• Positive reinforcement
for planning and coordination
tasks along with other responsibilities
 METHODS ENGINEERING
COMPONENTS OF JOB DESIGN equipment, interaction with other
people)
Effective Job Design depends on balancing • Task steps - sequence
3 critical components: • Function of tasks
• Worker • Frequency of tasks
• Tasks • Criticality of tasks
• Environment • Task duration(s)
• Relationship with other jobs/tasks
• Error possibilities
• Requirements for performance,
information, control, equipment

ENVIRONMENTAL ANALYSIS

The environmental analysis addresses

physical attributes of the workplace because
they can have a dramatic affect on worker
productivity
WORKER ANALYSIS
• Work place location
The worker analysis requires a detailed
• Process location
understanding the skills necessary to
• Temperature and humidity
perform a set of tasks (to ensure that the right
• Lighting
workers are assigned to the right jobs). It
involves an assessment of • Ventilation
• Safety
• Capabilities (skill level, physical • Logistics
abilities, motivation) • Space requirements
• Mental stress • Noise
• Boredom • Vibration
• Number of workers required
• Level of responsibility KISS PRINCIPLE OF JOB DESIGN
• Monitoring level
Human Element
• Quality responsibility
• Work - simplified, rhythmic &
• Empowerment level
symmetric
• Evaluation methodology
• Hand/arm motions - coordinated &
simultaneous
TASK ANALYSIS
• Employ full extent of physical
capabilities
The task analysis consists of a detailed
description of • Conserve energy - use machines,
minimize distances
• Tasks – where are they performed • Tasks - simple, minimal eye contact
(fixed station, interaction with & muscular effort, no unnecessary
motions, delays or idleness
 METHODS ENGINEERING
Workspace Element
• Tools, material, equipment -
designated, easily accessible
• Seating & work area - comfortable &
healthy
Equipment Element
• Equipment & mechanized tools
enhance worker abilities
• Use foot-operated equipment to
relieve hand/arm stress
• Construct & arrange equipment to fit
worker use
METHODS ANALYSIS
Methods Analysis – focuses on how a job
(existing or new) beginning with general
details about a job then focusing on the
specific tasks in the job
The need for methods analysis comes from:
• Changes in tools and/or equipment
• New products or changes in existing
products
• Changes in materials or procedures
• Government regulations
• Contractual agreements
• Accidents
• Quality problems
MOTION STUDY
Motion Study - is the systematic study of the
human motions used to perform an operation
- the purpose is to eliminate unnecessary
motions used to perform an operation. It is
very effective in improving worker
productivity and lowering costs
MOTION STUDY TECHNIQUES
Motion study principles - guidelines for
designing motion-efficient work procedures
Analysis of therbligs - basic elemental
motions in a job
Micro-motion study - use of motion pictures
and slow motion to study motions that
otherwise would be too rapid to analyze
Charts
WORK MEASUREMENT
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
• Estimating labor costs
• Planning and scheduling
• Budgeting
• Providing benchmarks for
improvement
• Motivating the work force
• Designing pay incentive plans
The most common ways to develop time
standards for tasks:
• Stopwatch time study - development
of a time standard by observing the
time it takes to perform a job over
several observation periods
• Historical times
• Predetermined data (many industry
associations or consultants have time
standard information)
• Work Sampling
 METHODS ENGINEERING
WORK MEASUREMENT APPLICATIONS
JOB STANDARDS – DON’T REINVENT
THE WHEEL
Standard Elemental Times are time
standards derived from the firm’s historical
time data. When setting a new job standard
there is no reason to “reinvent the wheel”.
Check the files to determine job elements
that have been “measured” and apply these
rates appropriately.
Predetermined Time Standards are
available in many instances through industry
publications, associations, industrial
engineering associations. A commonly used
system is methods time management (MTM)
tables created by the Methods Engineering
Council.
TIME STUDY
A Fair Day’s Work
The fundamental principle in industry is that
an employee is entitled to a fair day’s pay in
return for which the company is entitled to a
fair day’s work.
A fair day’s work can be defined as the
amount of work that can be produced by a
qualified employee when working at a
standard pace and effectively utilizing her
or his time where work is not restricted by
process limitations.
A Qualified employee is a representative
average of those employees who are fully
trained and able satisfactorily to perform any
and all phases of the work involved, in
accordance with the requirements of the job
under consideration
Standard pace is the effective rate of
performance of a conscientious, self paced,
qualified employee when working neither fast
nor slow and giving due consideration to the
physical, mental, or visual requirements of
the specific job.
Effective utilization is the maintenance of a
standard pace while performing essential
elements of the job during all portions of the
day except that which required for
reasonable rest and personal needs, under
circumstances in which the job is not subject
to process, equipment, or other operating
limitations.
TIME STUDY REQUIREMENTS:
• Analyst’s responsibility
• Supervisor’s responsibility
• Union’s responsibility
• Operator’s responsibility
TIME STUDY EQUIPMENT:
• Stopwatch
• Videotape Camcorders
• Time study board
• Time study forms
• Time study software
The steps in time study are:
1. Choosing the operator
• Select with the assistance of the
departmental or line supervisor
• Choose an average or somewhat
above average in performance
 METHODS ENGINEERING
• Completely trained in the method,
should like the work, demonstrate
interest in doing the job
• Familiar with the time study
procedures and practices
• Have confidence in both time study
methods and analyst
• Cooperative
2. Recording significant information
• Machines, hand tools, jigs or fixture,
working conditions, materials,
operations, operator name, and clock
number, department, study date,
observer’s name
• Sketch of layout
• Machine name, size, style, capacity,
and serial or inventory number and
working conditions
3. Positioning the observer
• Should stand, not sit, a few feet to the
rear of the operator
• Avoid conversation with the operator
4. Divide the task into smaller elements
5. Observe and record the time taken by
the operator over a number of cycles
6. Determine the number of cycles to be
timed. Once the required number of trials
has been obtained, compute for the
average observation time.
7. Rate the operator’s performance or the
performance of each work element
8. Use the performance rating to
determine the normal element time
9. Determine the allowance for personal
time, fatigue, and unavoidable delays
10. Determine the standard time
TIME STUDY – ELEMENT BREAKDOWN
Reasons for element breakdown:
1. Allows one to determine standard time
values for the elements of the job
2. Shows that excessive time is being taken
to perform certain elements of the job or that
too little time is being spent on other
elements.
3. Analysis of an operation by elements may
show slight variations in method that could
not be detected in an over-all time study.
4. An operator may not work at the same
tempo throughout the cycle. A time study
permits separate performance ratings to be
applied to each element of a job.
Rules in Dividing an Operation into
Elements:
1. The elements should be as short in
duration as can be accurately timed.
• Identifying endpoints
• Proper sequencing of elements
2. Handling time should be separated from
machine time (machine work)
3. Constant elements should be separated
from variable elements.
 METHODS ENGINEERING
• Constant elements refer to those
elements that are independent of the
size, weight, and shape of the piece.
4. When an element is repeated, do not
include a second description. Instead, in the
space provided for the element description,
give identifying number that was used when
the element first occurred.
TIME STUDY – RECORDING THE DATA
Three most common methods of stop watch
reading are:
1. Continuous Timing
• the observer starts the watch at the
beginning of the first element and
permits it to run continuously during
the period of study.
• observer notes the reading of the
watch at the end of each element and
records the time
• The time for each element will be
determined later by subtraction
Pros:
• Study presents a complete record of
the entire observation period
• Operator is able to see that no time
has been left out, and all delays and
foreign elements recorded
• Better adapted to measuring and
recording very short elements
Cons:
• More clerical work involved in
calculation
2. Snapback / Repetitive Method
• The hands of the watch are snapped
back to zero at the end of each
element
Pros:
• No clerical time needed to make
successive subtractions
• Elements performed out of order by
the operator can be readily recorded
without special notation
• Delays are not recorded
Cons:
• Time is lost while snapping the hand
back to zero
• Encourages removal of individual
elements from the separation
• Omitting such factors as delays, and
foreign elements could allow
erroneous values
3. Accumulative Timing
• Permits the direct reading of the time
for each element by the use of two
stop watches
Addressing Difficulties:
1. When missing a reading, analyst should
immediately note it. In no case should the
analyst approximate the missed value.
2. Omitting an element is handled by drawing
a horizontal line through it.
3. Finding a better way to perform elements ,
as ideas come to mind should be jotted down
in the remarks section as “for future
evaluation”
 METHODS ENGINEERING
4. Foreign elements must be noted with a The number of cycles that should be timed
short description. (to within a desired % accuracy) can be
calculated by:
• 0.06 min or less are to accumulate in
the element

TIME STUDY NO. OF CYCLES

Recommended Number of Observation

Cycles by GE:

TYPICAL Z VALUES

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
ACCURACY
• Accuracy is how close a measured
value is to the actual (true) value.
PRECISION
• Precision is how close the measure
values are to each other.
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.
 METHODS ENGINEERING
TIME STUDY
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:
Example 1b: For a desired confidence of
95% how many cycles must be observed if
the desired accuracy is within one-half
minute?
JOB STANDARD TIME
Development of a job standard time involves
computation of 3 times:
Observed time - the average of the
observed times
Normal time - the observed time adjusted for
worker performance
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:
If a job performance rating has been
determined for an entire job, the normal time
(NT) is calculated by:
If a job performance rating has not been
determined for an entire job, the normal time
(NT) is calculated by:
The reason for the job adjustment factor is
that the worker being observed may be
working at a rate different from the normal
rate (working at a deliberately slow rate,
natural abilities differ from the norm, working
at a rate to impress the observer).
Thus the observed time is adjusted by this
factor to yield a more accurate work pace.
performance rating = 1.0
indicates the worker is working at a normal
rate
performance rating = .90
indicates the worker is working at 90% of a
normal rate
performance rating = 1.10
indicates that the worker is working 10%
faster than a normal rate
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
 METHODS ENGINEERING
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:

• Allowance factor for job time

• Allowance factor for time worked To calculate the standard time for this
operation we must calculate the three times
If the allowance factor is based on a OT, NT and then ST
percentage of the productive (job) time
only the standard time (ST) is calculated
by:

Example 2: Management Science

The allowance factor based on job time is
calculated by:
If the allowance factor has been
determined for the time worked (day) the
standard time (ST) is calculated by:
Associates promotes its management
development seminars by mailing thousands
of individually composed and typed letters to
various firms. A time study has been
conducted on the task of preparing letters for
mailing. On the basis of the following
observations, Management Science
Associates wants t0 develop a time standard
for this task. The firm’s personal, delay, and
fatigue allowance is 15%. (Delete unusual or
nonrecurring observations such as those
marked with an asterisk*)

The allowance factor based on time worked

(day) is calculated by:

Example 1: 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.
 INDUSTRIAL ENGINEERING
According to the IIE (Institute of Industrial Engineers); Industrial Engineering is concerned w/ the
design, improvement and installation of integrated systems of people, materials, information,
equipment and energy. It draws upon specialized knowledge and skill in mathematical, physical,
and social sciences together w/ the principles and methods of engineering analysis and design to
specify, predict, and evaluate the results to be obtained from such system.

PRINCIPLES OF MOTION ECONOMY EMERGED OUT OF THE PRODUCTIVITY SCIENCE

OF HUMAN EFFORT AND MOTIONS PIONEERED IN DETAIL BY FRANK GILBRETH
ALONG WITH F.W. TAYLOR.

Use of the Human Body

1. The two hands should begin as well as complete their motions at the same time.

2. The two hands should not be idle at the same time except during rest periods.

3. Motions of the arms should be made in opposite and symmetrical directions and should be
made simultaneously.

4. Hand and body motions should be confined to the lowest classification with which it is
possible to perform the work satisfactorily.

5. Momentum should be employed to assist the worker wherever possible, and it should be
reduced to a minimum if it must be overcome by muscular effort.

6. Smooth continuous motion of the hands are preferable to straight line motions involving
sudden and sharp changes in direction.

7. Ballistic movements are faster, easier and more accurate than restricted (fixation) or
controlled movements.

8. Work should be arranged to permit an easy and natural rhythm wherever possible.

9. Eye fixations should be as few and as close together as possible.

Arrangement of the workplace

10. There should be a definite and fixed place for all tools and materials. (5S)

11. Tools, materials and controls should be located close to the point of use.

12. Gravity feed bins and containers should be used to deliver material close to the point of use.
13. Drop deliveries should be used wherever possible.

14. Materials and tools should be located to permit the best sequence of motions.

15. Provisions should be made for adequate conditions for seeing. Good illumination is the first
requirement for satisfactory visual perception.
16. The height of the work place and the chair should preferably arranged so that alternate
sitting and standing at work are easily possible.
17. A chair of the type and height to permit good posture should be provided for every worker.

Design of tools and equipment

18. The hands should be relieved of all work that can be done more advantageously by a jig, a
fixture, or a foot-operated device.

Jig and Fixture Design

19. Two or more tools should be combined wherever possible.

Combination Tools

20. Tools and materials should be prepositioned whenever possible.

21. Where each finger performs some specific movement, such as in typewriting, the load
should be distributed in accordance with the inherent capacities of the fingers.

22. Levers, hand wheels and other controls should be located in such positions that the operator
can manipulate them with the least change in body position and with the greatest speed and
ease.
Motion Study & Work Design

1. Fundamental Hand Motion and Work Analysis

2. Principles of Motion Economy and Work Design

Definitions
• Motion study involves the analysis of the basic hand, arm,
and body movements of workers as they perform work.

• Work design involves the methods and motions used to

perform a task.

• This design includes

• the workplace layout and environment
• the tooling and equipment (e.g., work holders, fixtures, hand tools,
portable power tools, and machine tools).
• work design is the design of the work system.
Basic Motion Elements
• Any manual task is composed of work elements, and the work elements can be
further subdivided into basic motion elements. We will define basic motion
elements and how they can be used to analyze work
• Frank B. Gilbreth and Lilian M. Gilbreth was the first to catalog (list) the basic
motion elements.
• Therbligs are the basic building blocks of virtually all manual work performed at a
single workplace and consisting primarily of hand motions. – A list of Gilbreth’s 17
therbligs is presented along with the letter symbol used for each as well as a
brief description.
• With some modification, these basic motion elements are used today in a number
of work measurement systems, such as Methods - Time Measurement (MTM) and
the Maynard Operation Sequence Technique (MOST).
• Methods analysis at the therblig level seeks to eliminate or reduce ineffective
therbligs.
• Some of the motion element names and definitions have been revised
17 Therbligs
1. Transport empty (TE) – reach for an object

2. Grasp (G) – grasp an object

3. Transport loaded (TL) – move an object with hand and arm

4. Hold (H) – hold an object

5. Release load (RL) – release control of an object

6. Use (U) – manipulate a tool

17 Therbligs (continued)
7. Pre-position (PP) – position object for next operation

8. Position (P) – position object in defined location

9. Assemble (A) – join two parts

10.Disassemble (DA) – separate multiple parts that were

previously joined

11.Search (Sh) – attempt to find an object using eyes or hand

17 Therbligs (continued)
12.Select (St) – choose among several objects in a group

13.Plan (Pn) – decide on an action

14.Inspect (I) – determine quality of object

15.Unavoidable delay (UD) – waiting due to factors beyond

worker control

16.Avoidable delay (AD) – worker waiting

17.Rest (R) – resting to overcome fatigue

Gilbreth’s 17 Therbligs
Classification of Therbligs
Classification of Therbligs
Fundamental Hand Motions of the Right Hand in Signing a Letter
Fundamental Hand Motions of the Right Hand in Signing a Letter
Fundamental Hand Motions of the Right Hand in Signing a Letter
Fundamental Hand Motions of Inserting Pinboards

Existing Method: 0.62 minute to fill the board using one-handed method

What would be a better method in inserting the pins on the board?

New Method: 0.41 minute using two-handed operations

Micromotion Analysis
• Each therblig represents time and energy spent by a worker to
perform a task. If the task is repetitive, of relatively short
duration, and will be performed many times, it may be
appropriate to analyze the therbligs that make up the work
cycle as part of the work design process.
• The term micromotion analysis is sometimes used for this type
of analysis.
• Objectives:
1. Eliminate ineffective therbligs if possible
2. Avoid holding objects with hand – Use workholder
3. Combine therbligs – Perform right-hand and left-hand motions
simultaneously
4. Simplify overall method
5. Reduce time for a motion, e.g., shorten distance
 Work Sampling
Sections:
1. How Work Sampling Works
2. Statistical Basis of Work Sampling
3. Application Issues in Work
Sampling
 Work Sampling Defined

▪ Statistical technique for determining the proportions of time

spent by subjects in various defined categories of activity
▪ Large number of observations are made over an extended period of
time
▪ Statistical inferences are drawn about the proportion of time spent by
subjects in various defined categories of activity
▪ Subjects = workers, machines

▪ Categories of activity = setting up a machine, producing parts, idle, etc.

▪ For statistical accuracy

▪ Observations must be taken at random times
▪ Period of the study must be representative of the types of activities
performed by the subjects
 Work Sampling Defined

The major goal of work sampling is to determine how long, or how

much of the work day, is spent on specific types of work.

• Work sampling may identify the fact that certain operators spend a
large portion of their time waiting for work, or performing paperwork
tasks, or even performing activities that are not included in their job
descriptions.

• One of the basic foundations of statistical sampling theory is the

concept that the larger the sample size, the results will be more
accurate.

• In work sampling, a sufficient number of observations must be made

to be sure that the results accurately summarize the work performed.
There are statistical formulas to help determine how many
observations should be made.
 Historical Notes
▪ L. H. C. Tippett – introduced the technique of
work sampling (1927): snap reading method
▪ snapshots to observe the activity (uptime vs.
downtime) of the looms

▪ R. L. Morrow- introduced the technique in US

(1941): “ratio delay study”
▪ Delays during production

▪ C. L. Brisley – used the term work sampling

(1952)
 When is Work Sampling Appropriate?

▪ Sufficient time should be available to perform the study

▪ Several weeks usually required for a work sampling study

▪ Multiple subjects
▪ Work sampling suited to studies involving more than one
subject

▪ Long cycle times for the jobs covered by the study

▪ Nonrepetitive work cycles

▪ Jobs consist of various tasks rather than a single repetitive
task
 Steps in Work Sampling

▪ It is recommended that a uniform procedure should be followed to

perform a work sampling study is to

1. Establish the Purpose

▪ First, the objective of the study should be established. Work

sampling can be used to determine an overall perspective on the
work done.

2. Identify the Subjects

▪ Second, the people performing the task must be identified, i.e.

general office work is being studied with the objective of
determining overall productivity.
 Steps in Work Sampling
3. Identify the Measure of Output
▪ The third step in making the study is the identification of the
measure of the output produced or the types of activities performed
on the jobs being studied. This step is especially important if the
objective of the study is to measure productivity with the intent of
setting a standard.

4. Establish a Time Period

▪ Fourth, the time period during which the study will be conducted
must be established. Starting and stopping points for the study must
be defined as well.

5. Define the Activities

▪ This step involves defining the activities that are performed by the
people under study. For example, the definition used in a machine
utilization study, including only the categories of working, idle, and
idle-mechanical breakdown.
 Steps in Work Sampling
6. Determine the Number of Observations Needed

▪ Take a preliminary sample to obtain an estimate of the parameter

value (such as percent of time a worker is busy)
▪ Compute the sample size required

7. Schedule the Observations

▪ Once the number of required observations has been determined,

either from appropriate statistical calculations or from tables, and
the actual observations must be scheduled. Typically, the analyst
will assign an equal number of observations each day during the
course of the study. For example, if 800 observations are required
and 20 work days are established as an appropriate observation
time, 40 observations should be recorded each day.
▪ A random number table can be used to establish the random times
for each observation.
 Steps in Work Sampling
8. Inform the Personnel Involved

▪ Before the study is actually performed, the personnel involved

should be informed about the objective of the study and the
methodology that will be employed.

9. Record the Raw Data

▪ The next is the actual recording of the raw data. Although this
recording can be performed by anyone, it is desirable that a
trained analyst be employed.
▪ It is also very important that the observations be made at exactly
the same location every time.

10. Summarize the Data

▪ After the data have been collected, they must be summarized.
Example: How Work Sampling Works
▪ A total of 500 observations taken at random times during
a one-week period (40 hours) on 10 machines with
results shown below.

Category No. of observations

(1) Being set up 75
(2) Running production 300
(3) Machine idle 125
500

▪ How many hours per week did an average machine

spend in each category?
 Example: Solution
▪ Proportions of time determined as number of
observations in each category divided by 500

▪ Time in each category determined by multiplying

proportion by total hours (40 hr)
Category Proportion Hrs per category
(1) Being set up 75/500 = 0.15 0.15 x 40 = 6
(2) Running production 300/500 = 0.60 0.60 x 40 = 24
(3) Machine idle 125/500 = 0.25 0.25 x 40 = 10
1.00 40
 Work Sampling Applications
▪ Machine utilization - how much time is spent by machines
in various categories of activity
▪ Previous example

▪ Worker utilization - how workers spend their time

▪ Allowances for time standards - assessment of delay

components in PFD allowance factor

▪ Average unit time - determining the average time on each

work unit

▪ Time standards - limited statistical accuracy when

standards set by work sampling
 Work Sampling – A Few Words
▪ Sampling is mainly based on probability. Probability has been defined
as “the degree to which an event is likely to occur”.

▪ A simple and often-mentioned example that illustrates the point is that

of tossing a coin.

▪ The law of probability says that we are likely to have 50 heads and 50
tails in every 100 tosses of the coin. The greater the number of tosses,
the more chance we have of arriving at a ratio of 50 heads to 50 tails.

▪ The size of the sample is therefore important, and we can express our
confidence in whether or not the sample is representative by using a
certain confidence level.

Establishing confidence levels

▪ Let us go back to our previous example and toss five coins at a time,
and then record the number of times we have heads and the number
of times we have tails for each toss of these five coins. Let us then
repeat this operation 100 times.
Work Sampling – A Few Words
 Work Sampling – A Few Words

▪ To make things easier, it is more convenient to speak of a 95 percent confidence level than of a 95.45 per cent
confidence level.

▪ To achieve this we can change our calculations and obtain:

▪ 95 percent confidence level or 95 per cent of the area under the curve = 1.96 σp
▪ 99 percent confidence level or 99 per cent of the area under the curve = 2.58 σp
▪ 99.9 percent confidence level or 99.9 per cent of the area under the curve = 3.3 σp

▪ In this case we can say that if we take a large sample at random we can be confident that in 95 percent of the cases
our observations will fall within ± 1.96 σp
 Number of Observations Required
▪ Increasing the number of obserations increaases the accuracy
(?) and the precision (?) of our estimate.

▪ But observations are costly. So here comes the question:

▪ How many observations are required to achieve a given

confidence interval about the estimate of p?

▪ We need to decide two parameters:

1. Desired confidence level
▪ This allows us to find the corresponding value of z

2. Desired acceptable error level

 Number of Observations Required
▪ The following formula then gives the sample size for a desired
confidence and accuracy:

z 2 p(1 − p) 1.96 2.50( 1 − .5 )

n= 2
n=
Where:
h .05 2
n = required sample size
Typical Z Values z = number of standard normal deviations for the
Desired desired confidence level
Confidence p = estimated value of sample proportion (of time
Level % Value
worker is observed busy or idle)
90 1.65
95 1.96
h = acceptable error level, in percent
95.45 2.00
98 2.33
99 2.58
99.73 3.00
 Example: Determining the number of
observations
▪ Previous example: Determine how many
observations will be required to estimate the
proportion of time used to setup the 10 machines in
the automatic lathe section. The work sample must be
accurate within 3%, and having 95.45% confidence in
results.
Solution:
where n = required sample size
z = 2.0 for 95.45% confidence level
p = estimate of machine set-up proportion = 15% = 0.15
h = acceptable error of 3% = 0.03 z 2 p(1 − p)
n=
h2
(2.0) 2 (0.15)(1 − 0.15)
n=
(0.03) 2
n = 567 observatio ns
 Determining the number of observations

Nomogram method

An easier way to
determine sample
size is to read off
the number of
observations
needed directly
from a nomogram
such as the one
reproduced
in the figure
 Making random observations
▪ To ensure that our observations are in fact made at random, we can use a
random table

▪ If our study is to take place over 10 days, we start with 57 observations per
day. In our case let us assume that we shall carry out our observations during
a day shift of eight hours, from 7 a.m. to 3 p.m. An eight-hour day has 480
minutes.

▪ To determine when each day’s observations are made, we can assign

specific numbers to each minute (Exhibit A) and use random number table to
set up the schedule

▪ Various types of random table exist, and these can be used in different ways.

▪ We can start by choosing any number at random from our table, for example,
a three-number scheme is used, with 1st number corresponds the hour, with
the 2nd and 3rd numbers corresponding to the minute of the hour (Exhibit B)

▪ To perfectly random this study, we should also “randomize” the machines we

observe each time. (This minimizes the effect of bias).

▪ Re-arrange the times chronologically for ease in planning the observation

schedule (Exhibit C)
 Making random observations
▪ Sampling Plan for Machine Activities

Exhibit A Exhibit B
Corresponding Time from
Random Number
Assigned (A)
Time
Numbers 569 Non-existent
7:00 – 7:59 A.M. 100-159 831 2:31 P.M.

8:00 – 8:59 200-259 555 11:55 A.M.

9:00 – 9:59 300-359 470 Non-existent

10:00 – 10:59 400-459 113 7:13 A.M.

11:00 – 11:59 500-559 080 Non-existent

12:00 – 12:59 P.M. 600-659 520 11:20 A.M.

1:00 – 1:59 700-759 204 8:04 A.M.

2:00 – 2:59 800-859 732 1:32 P.M.

420 10:20 A.M.

 Making random observations
▪ Sampling Plan for Machine Activities

Exhibit C

Utilization Time (a)

Observation Schedule Time Idle Time (a)
Set-up Time Productive Time

1 7:13 A.M.

2 8:04 A.M.

3 10:20 A.M.

4 11:20 A.M.

5 11:55 A.M.

6 1:32 P.M.

7 2:31 P.M

57
 Determining Average Task Times
▪ Average observed times for a given work category is
determined by computing the total time associated with
the category and then dividing by the total count of work
units produced by that category
T ni
OT = x
P n
where
OT= average observed time
T = total time
ni = number of occurrences for element i
n = total number of observations
P = total production for period studied
 Example: Determining Task Time
▪ A total of 1572 units were completed by the 10 machines
and that a total of 23 setups were accomplished during
the 5-day period. Determine,
(a) the average task time per work unit during production
(b) the average setup time.

Solution:

Pr oduction :
Set − up :
T n
OT = x i T ni
P n OT = x
40 hr x 10 machines 300 P n
OT = x 40 hr x 10 machines 75
1572 500 OT = x
OT = 0.15267 hr x 60 23 500
OT = 2.6 hrs
OT = 9.16 min
 Determining Standard Times
▪When the purpose of the work sampling study is to set time
standards, the analyst must rate the performance of the
worker during each observation

▪First determine normal time for activity

R
NT = OT x
100
where
OT = observed time
R =  R / n = average perf rating

So standard time for the activity

ST = NT x (1 + Allowance)
 Example: Determining Standard Time
▪ The total performance rating of the operator doing
productive work is 28500 based from the 300 occurrences
rated by the analyst. There is a constant allowance of 10%
for all elements. Determine standard time per work unit
during production.
Solution:
R
NT = OT x
100
28500 / 300
NT = 9.16 x
100
95
NT = 9.16 x
100
NT = 8.702 min .

ST = 8.702 x (1 + 0.10) = 9.57 min .

Work Sampling Observation Form
Use of Work Sampling to Measure Average
Task and Standard Times

▪ Work sampling can be used to determine average task

times and standard times.

▪ However, the standard times obtained by work sampling

are not appropriate for wage incentive plans.

▪ So use work sampling to measure the standard times

only when other work measurement techniques become
impractical
▪ e.g., very long cycle times, nonrepetitive tasks
 Advantages of Work Sampling
▪ Can be used to measure activities that are impractical to
measure by direct observation

▪ Multiple subjects can be included

▪ Requires less time and lower cost than continuous direct

observation

▪ Training requirements less than DTS or PMTS

▪ Less tiresome and tedious on observer than continuous

observation

▪ Fewer aberrations (abnormalities) than short-run observations

▪ Being a subject in work sampling is less demanding than being

watched continuously for a long time (some people are not
comfartable while being watched continuously)
 Disadvantages and Limitations
▪ Not as accurate for setting time standards as other work
measurement techniques

▪ Work sampling provides less detailed information about work

elements than DTS or PMTS

▪ Not proper to set standards for incentive pay systems

▪ Usually not practical to study a single subject

▪ Since work sampling deals with multiple subjects, individual

differences will be missed

▪ Workers may be suspicious because they do not understand the

statistical basis of work sampling

▪ Behavior of subjects may be influenced by the act of observing

them
 An employer’s compensation system consists of the various forms of
financial rewards and fringe benefits that are provided to employees in
return for their.

 Two types of pay systems:

 Time-based pay systems
 Incentivized pay systems

 Components of compensation system

1. Base pay – paid on a regular basis; time based
2. Variable pay – based on a measure of performance; incentivized pay
3. Fringe Benefits – expense to the employer
Incentivized Pay Systems
 Direct Incentives – proportion to output
 Indirect Incentives – not directly tied to output; based on some
measure of performance (gain sharing, profit sharing).

Time-Based Pay Systems

 Hourly Pay (wage) – blue collar employees
 Salary Systems – white collar employees
Hourly Pay Systems
 Conventional Hourly Pay – workers paid an hourly rate for hours worked

W = hourly rate x no. of hours (40hrs / week)

Note: If exceeds 40 hrs / week, overtime pay applies.

 Measured day work – workers paid an hourly rate but their work output
is measured using time standards.

Salary Systems
 Professional, managerial, are expected to put in the amount of time
necessary to get the job done
If you’re working for more than eight hours, then that’s considered
overtime, whether or not it’s a regular day or a rest day.

Normal Day (day / night shift) 25% 137.5%

Rest Day 169% 185.9%
Special Non-Working Day 169% 185.9%
Special Non-Working Day and Rest Day 195% 214.5%
Regular Holiday 260% 286%
Regular Holiday and Rest Day 338% 371.8%
 Direct Wage Incentive Plans
▪ Individual Wage Incentive Plan
▪ Piece work
▪ W = unit rate / piece x Qty or work units

▪ Standard Hour Plan:

▪ Guaranteed base rate – a minimum daily rate
▪ W = rate / hr x hrs worked
▪ B = rate / hr (# of std hrs completed - # of hrs in shift)
 Standard Hour Plan Sample Problem

A worker is paid weekly, but his wage is calculated on a daily basis. In one
three-day period, he worked on the same job, which had a time standard of
5.0 min/unit. The worker is paid a rate of Php 50.00/hr in a standard hour
plan that has a guaranteed base rate. Determine, (a) the worker’s wages,
(b) his bonus if one is earned, and, (c) the direct labor cost per unit to the
company for each of the three days if he produced 88 work units on the
first day, 96 units on the second day, and 110 units on the third day.
 (Actual O. /
Standard O.) Standard Actual SULC - AULC Worker
(AO-SO) (wage/SO)
X100 Worker
Standard Actual Unit Unit Unit Total Take Home
Efficiency Minimum
Output Output Labor Labor Loss/Savings Loss/Savings Pay w/o
Labor Rate
Cost Cost Incentive

90 91 101% 400.00 4.44 4.40 0.05 4.44 400.00

1st Day 90 88 98% 400.00 4.44 4.55 (0.10) (8.89) 400.00

2nd Day 90 96 107% 400.00 4.44 4.17 0.28 26.67 400.00
3rd day 90 110 122% 400.00 4.44 3.64 0.81 88.89 400.00

Total 270 294 327% 1,200.00 13.33 12.35 0.98 106.67 1,200.00
Average 90 98 109% 400.00 4.44 4.12 0.33 35.56 400.00
SULC = Labor Rate / Standard Output AULC = Labor Rate / Actual Output

a) Workers wage 1,200.00 for 3 days

b) Bonus for extra unit 4.44 per unit
c) Direct labor cost 4.12 per unit
 Bonus Sharing Plan Sample Problem

Using the data in Example #1, determine (a) the worker’s wages, (b) his
bonus if one is earned, and, (c) the direct labor cost per unit to the
company under a bonus-sharing plan in which the proportion of the bonus
received by the worker is 0.50 (called a 50-50 sharing plan). The pay
features a guaranteed base rate. Time standard is 5.0 min/unit, and the
hourly rate is Php50.00/hr. He produced 88 work units on the first day, 96
units on the second day, and 110 units on the third day.
 Actual Output / Salary / Salary /
Standard Output Standard Output Actual Output Worker Take
Worker
Standard Actual Standard Unit Actual Unit Home Pay
Efficiency Minimum
Output Output Labor Cost Labor Cost w/Incentive
Labor Rate
50 %

90 91 101% 400.00 4.44 4.40 2.22

1st Day 90 88 98% 400.00 4.44 4.55 400.00

2nd Day 90 96 107% 400.00 4.44 4.17 413.33
3rd day 90 110 122% 400.00 4.44 3.64 444.44

Total 270 294 327% 1,200.00 13.33 12.35 1,257.78

Average 90 98 109% 400.00 4.44 4.12 419.26
Worker Incentive:
1st day = Standard Unit Labor Cost x Incentives
2nd day = Salary (Actual - Standard) x incentive from 1st day

a) Workers wage 1,257.78 for 3 days

b) Bonus for extra unit 2.22 per unit
c) Direct labor cost 4.28 per unit
Learning Curve
OBJECTIVES
• Underlying Principles of Learning Curves
• Learning Curve Example
• Types of Learning
• From Learning Curves to Performance Improvement
Learning Curve
Most organizations learn and improve over time. As firms and employees perform a
task over and over, they learn how to perform more efficiently. This means that
task times and costs decrease.
Learning curves are based on the premise that people and organizations become
better at their tasks as the tasks are repeated. A learning curve graph (illustrated in
Figure E.1) displays labor hours per unit versus the number of units produced.
From it we see that the time needed to produce a unit decreases, usually following
a negative exponential curve, as the person or company produces more units. In
other words, it takes less time to complete each additional unit a firm produces.
However, we also see in Figure E.1 that the time savings in completing each
subsequent unit decreases. These are the major attributes of the learning curve.
 What Is a Learning Curve?

A learning curve is a concept that graphically depicts

the relationship between the cost and output over a
defined period of time, normally to represent the
repetitive task of an employee or worker. The
learning curve was first described by psychologist
Hermann Ebbinghaus in 1885 and is used as a way
to measure production efficiency and to forecast
costs.

In the visual representation of a learning curve, a

steeper slope indicates initial learning translates into
higher cost savings, and subsequent learnings result
in increasingly slower, more difficult cost savings.
KEY TAKEAWAYS

• The learning curve is a visual representation of how

long it takes to acquire new skills or knowledge.
• In business, the slope of the learning curve represents
the rate in which learning new skills translates into cost
savings for a company.
• The steeper the slope of the learning curve, the higher
the cost savings per unit of output.
Understanding Learning Curves

The learning curve also is referred to as the experience curve, the cost curve, the efficiency curve,
or the productivity curve. This is because the learning curve provides measurement and insight
into all the above aspects of a company. The idea behind this is that any employee, regardless of
position, takes time to learn how to carry out a specific task or duty. The amount of time needed
to produce the associated output is high. Then, as the task is repeated, the employee learns how
to complete it quickly, and that reduces the amount of time needed for a unit of output.

That is why the learning curve is downward sloping in the beginning with a flat slope toward the
end, with the cost per unit depicted on the Y-axis and total output on the X-axis. As learning
increases, it decreases the cost per unit of output initially before flattening out, as it becomes
harder to increase the efficiencies gained through learning.
Benefits of Using
the Learning Curve
Companies know how much an employee earns per hour and can derive
the cost of producing a single unit of output based on the number of
hours needed. A well-placed employee who is set up for success should
decrease the company's costs per unit of output over time. Businesses
can use the learning curve to conduct production planning, cost
forecasting, and logistics schedules.
The learning curve does a good job of depicting the cost per unit of
output over time. The slope of the learning curve represents the rate in
which learning translates into cost savings for a company. The steeper the
slope, the higher the cost savings per unit of output. This standard
learning curve is known as the 80% learning curve. It shows that for every
doubling of a company's output, the cost of the new output is 80% of the
prior output. As output increases, it becomes harder and harder to
double a company's previous output, depicted using the slope of the
curve, which means cost savings slow over time.
Learning curves were first applied to industry in a
report by T. P. Wright of Curtis-Wright Corp. in 1936.
Wright described how direct labor costs of making a
particular airplane decreased with learning, a theory
since confirmed by other aircraft manufacturers.
Regardless of the time needed to produce the first
plane, learning curves are found to apply to various
categories of air frames (e.g.,jet fighters versus
passenger planes versus bombers). Learning curves
have since been applied not only to labor but also to
a wide variety of other costs, including material and
purchased components.

The power of the learning curve is so significant that

it plays a major role in many strategic decisions
related to employment levels, costs, capacity, and
pricing.
The learning curve is based on a doubling of production: That is, when production doubles, the
decrease in time per unit affects the rate of the learning curve. So, if the learning curve is an 80%
rate, the second unit takes 80% of the time of the first unit, the fourth unit takes 80% of the time of
the second unit, the eighth unit takes 80% of the time of the fourth unit, and so forth. This principle
is shown as

Time required for the nth unit = T × Ln

where End of Technical Note 2

T = unit cost or unit time of the first unit
L = learning curve rate
n = number of times T is doubled

Example

If the first unit of a particular product took 10 labor-hours, and if a 70% learning curve is present, the
hours the fourth unit will take require doubling twice—from 1 to 2 to 4.
Therefore, the formula is

Hours required for unit 4 = 10 × (.7)2

= 4.9 hours
LEARNING CURVES IN SERVICES AND MANUFACTURING
Different organizations—indeed, different products—have different learning curves. The rate of
learning varies depending on the quality of management and the potential of the process and product.
Any change in process, product, or personnel disrupts the learning curve. Therefore, caution should
be exercised in assuming that a learning curve is continuing and permanent.
As you can see in Table E.1,
industry learning curves vary
widely. The lower the number
(say 70% compared to 90%),
the steeper the slope and the
faster the drop in costs. By
tradition, learning curves are
defined in terms of the
complements of their
improvement rates. For example,
a 70% learning curve implies a
30% decrease in time each time
the number of repetitions is
doubled. A 90% curve means
there is a corresponding 10%
rate of improvement.
LEARNING CURVES IN SERVICES AND MANUFACTURING
Stable, standardized products and processes tend to have costs that decline more steeply than others.
Between 1920 and 1955, for instance, the steel industry was able to reduce labor-hours per unit to
79% each time cumulative production doubled.

Learning curves have application in services as well as industry. As was noted in the caption for the
opening photograph, 1-year death rates of heart transplant patients at Temple University Hospital
follow a 79% learning curve. The results of that hospital’s 3-year study of 62 patients receiving
transplants found that every three operations resulted in a halving of the 1-year death rate. As more
hospitals face pressure from both insurance companies and the government to enter fixed price
negotiations for their services, their ability to learn from experience becomes increasingly critical. In
addition to having applications in both services and industry, learning curves are useful for a variety of
purpose
 The arithmetic approach is the simplest approach to learning-
curve problems. As we noted at the beginning of this module,
each time that production doubles, labor per unit declines by a
constant factor, known as the learning rate. So, if we know
that the learning rate is 80% and that the first unit produced
took 100 hours, the hours required to produce the second,
fourth, eighth, and sixteenth units are as follows:

Arithmetic NTH UNIT PRODUCED HOURS FOR NTH UNIT

1 100.0
2 80.0 = (.8 × 100)
Approach 4 64.0 = (.8 × 80)
8 51.2 = (.8 × 64)
16 41.0 = (.8 × 51.2)
As long as we wish to find the hours required to produce N
units and N is one of the doubled values, then this approach
works. Arithmetic analysis does not tell us how many hours will
be needed to produce other units. For this flexibility, we must
turn to the logarithmic approach.
Logarithmic Approach
As long as we wish to find the hours required to produce N units and N is one
of the doubled values, then this approach works. Arithmetic analysis does not
tell us how many hours will be needed to produce other units. For this
flexibility, we must turn to the logarithmic approach.
The logarithmic approach allows us to determine labor for any unit, TN, by the
formula
TN = T1(Nb) (E-2)
where TN = time for the Nth unit
T1 = hours to produce the first unit
b = (log of the learning rate)/(log 2) = slope of the learning curve
Some of the values for b are presented in Table E.2. Example E1 shows how
this formula works.
Learning-Curve Coefficient Approach

The learning-curve coefficient technique is embodied in Table E.3 and

the following equation:

TN = T1C
where
TN = number of labor-hours required to produce the Nth unit
T1 = number of labor-hours required to produce the first unit
C = learning-curve coefficient found in Table E.3

The learning-curve coefficient, C, depends on both the learning rate

(70%, 75%, 80%, and so on) and the unit of interest.
 Learning-
Curve
Coefficient
Approach
 Individual Learning
Improvement when individuals gain a skill
or efficiency by repetition of a job
Types of
• Organizational Learning
Learning Improvement from the groups of
individuals from repetition and changes in
administration, equipment, and product
design
From Learning Curves to Performance Improvement

• Proper selection of workers

• Proper training
• Motivation
• Work specialization
• Do one or very few jobs at a time
• Use tools or equipment that assists or supports performance
• Provide quick and easy access for help
• Allow workers to help redesign their tasks