Work Measurement

Techniques
Rochelle Anne Baclay
QUIZ TIME
 Work Measurement
Determining the length of time it should take to
complete the job

Standard time
The time it should take a fully trained and qualified worker to
complete a specific task, working at an efficient, yet sustainable
pace.
 Work Measurement Methods
Stopwatch Time Study Historical Times

1 2

Predetermined Data Work sampling

3 4
 1
Stopwatch Time Study
 Development of a time standard based
on observations of one worker taken
over a number of cycles.

Steps:
1. Define the task to be studied, and inform
the worker to be studied
2. Determine the number of cycles to
observe
3. Time the job and rate the worker’s
performance
4. Compute the standard time. Stopwatch Time Study
An analyst will break all but very short jobs
down into basic elements for three reasons:
1. Some elements are not performed in
every cycle
2. Worker’s proficiency may not be the
same for all elements of the job.
3. To build a file of elemental times that
can be used to set times for other jobs.

Stopwatch Time Study

Number of cycles is a function of three things:

1. The variability of observed times

2. The desired accuracy
3. The desired level of confidence for
the estimated job time.

Stopwatch Time Study

 Desired Accuracy
𝑧𝑠 2
n= Use this formula when desired
accuracy is a percent
𝑎𝑥̅

Where:
z = number of normal standard of deviation needed for the desired
confidence
s = sample standard deviation
a = desired accuracy percentage
x̅ =sample mean
Desired Accuracy
𝑧𝑠 2 Use this formula when desired
n= accuracy is a percent
𝑎𝑥̅

Desired
z Value
Confidence %

90 1.65

95 1.96

95.5 2.00

98 2.33

99 2.58
Desired Accuracy
𝑧𝑠 2
𝑛= Use this formula when desired accuracy is a time
𝑒
Where:
e = maximum acceptable amount of time error
 Example:
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 and a standard deviation of 2.1 minutes. The
desired confidence is 95 percent. How many observations will be needed (including those
already taken) if the desired maximum error is:

a. ± 10 percent of the sample mean

b. One half minute
 Example:

s = 2.1 minutes z = 1.96

𝑥͞ = 6.4 minutes a = 10%

a. b.
𝑧𝑠 2 𝑧𝑠 2
n= 𝑛=
𝑎𝑥̅ 𝑒
1.96(2.1) 2
= 1.96(2.1) 2 =
0.5
0.10(6.4) = 67.77; round up to 67 observations
= 41.36 minutes; round up to 42 observations
 Preliminary estimate of sample
size
• Take a small number of observations and compute value of x̄ and s to use in
the formula for n.
• Towards the end of the study, the analyst may want to recompute n using
revised estimates of x̄ and s based on the increased data available.
A time study analyst wants to estimate the number of observations that will be needed to
achieve a specified maximum error, with a confidence of 95.5 percent. A preliminary study
yielded a mean of 5.2 minutes and a standard deviation of 1.1 minutes. Determine the total
number of observations needed for these two cases:

a. A maximum error of ±6 percent of the sample mean. Desired

z Value
Confidence %
b. A maximum error of .40 minute.

90 1.65

95 1.96

95.5 2.00

98 2.33

99 2.58
x =5.2 minutes a = 0.06
s =1.1 minutes z =2.00 for 95.5

a. 𝑏.
𝑧𝑠 2 𝑧𝑠 2
n= 𝑛=
𝑎𝑥̅ 𝑒

2.00(1.1) 2 2.00(1.1) 2
= =
0.06(5.2) 0.40

2.2 2 2.2 2
= =
0.40
0.312

= 49.72 or 50 observations = 30.25 or 31 observations

 Observed Time
The average of the recorded times

σ 𝑥̅𝑖
OT=
𝑛

where:
OT = observed time
σ𝑥𝑖 = sum of recorded times
n = number of observations
 Normal Time
Observed time adjusted for worker performance.

NT=OT x PR
Where:
NT = normal time
PR = performance rating
If ratings are made on an element-by-element basis:
σ(𝑥̄͞ 𝑗 x 𝑃𝑅𝑗)

𝑥̄͞ 𝑗 = 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑖𝑚𝑒 𝑓𝑜𝑟 𝑒𝑙𝑒𝑚𝑒𝑛𝑡 𝑗

𝑃𝑅𝑗 = performance rating for element j
 Standard Time
Normal time multiplied by an allowance factor for the delays.

ST=NT x AF
ST = Standard time
AF = Allowance factor

If allowances are based on the job If allowances are based on the percentage
time: of the time worked:
𝟏
AFday =
AFjob = 1 +A 𝟏−𝑨

where A = allowance percentage based on where A = allowance percentage based on

job time work day
 Example:

Compute the allowance factor for these two cases:

a. the allowance is 20 percent of job time
b. the allowance is 20 percent of work time

A = 0.20
a. b.
1
AF = 1+A AFday = 1−𝐴
= 1 + 0.20
= 1.20 or 120% 1
=
1−0.20
1
=
0.80
= 1.25 or 125%
Typical Allowance Percentages for Working Conditions
 i Time, x
A time study of an assembly operation yielded the Observation (minutes)

following observed times for one element of the job, for 1 1.12

which the analyst gave a performance rating of 1.13. 2 1.15

Using an allowance of 20 percent job time, determine the 3 1.16

appropriate standard time for this operation. 4 1.12

5 1.15
6 1.18
7 1.14
8 1.14
9 1.19
 Solution:

ST=NT x AF
A time study of an assembly operation
yielded the following observed times for σ 𝑥̅𝑖 10.35
a. OT = = = 1.15 minutes
one element of the job, for which the 𝑛 9

analyst gave a performance rating of 1.13.

b. NT = OT x PR = 1.15 x 1.13 = 1.30 minutes
Using an allowance of 20 percent job time,
determine the appropriate standard time
for this operation. c. ST = NT x (1 +A) = 1.30 x (1 + 0.20)
= 1.30 x 1.20
= 1.56 minutes
A time study analyst timed an assembly operation for 30 cycles, and then computed
the average time per cycle, which was 18.75 minutes. The analyst assigned a
performance rating of 0.96, and decided that an appropriate allowance was 15
percent. Assume the allowance factor is based on the workday. Determine the
following: the observed time (OT), the normal time (NT), and the standard time (ST).
 Solution:
σ 𝑥̅𝑖
A time study analyst timed an assembly operation a. OT= = 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑖𝑚𝑒
𝑛
for 30 cycles, and then computed the average time = 18.75 minutes
per cycle, which was 18.75 minutes. The analyst
assigned a performance rating of 0.96, and
decided that an appropriate allowance was 15 b. NT= OT x PR
= 18.75 x 0.96
percent. Assume the allowance factor is based on
= 18 minutes
the workday. Determine the following: the
1
observed time (OT), the normal time (NT), and c. ST = NT x 1−𝐴
the standard time (ST). 1
= 18 x 1−0.15
= 18 x 1.176
= 21.17 minutes
 2
Historical Times
 Historical Times
also called Standard elemental times
-time standards derived from a firm’s historical time 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 study 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 time.
 Historical Times
Advantages
1. Potential savings in cost and effort created
by not having to conduct a complete time
study for each job.
2. There is less disruption of work, again Disadvantage
because the analyst does not have to time
the worker.
1. Times may not exist for enough
3. Performance ratings do not have to be standard elements to make it
done; they are generally averaged in the worthwhile and the file times
file times may be biased or inaccurate.
 3
Predetermined Time
Standards
Predetermined Time Standards
Involves the use of published data on standard elemental times

Advantages
1. Based on large numbers of workers under controlled
conditions
2. Analyst is not required to rate performance in
developing time standard
3. No disruption of the operation
4. Standards can be established even before a job is
done.
 4
Work Sampling
 Work sampling
Technique for estimating the proportion of time that a worker or
machine spends on various activities and the idle time.

Primary Uses

1. Ratio-delay studies
2. Analysis of non-repetitive tasks
 Maximum error percent

𝑝̂ (1−𝑝̂)
e=z
𝑛

Where:
z = number of standard deviations needed to achieve desired confidence
𝑝̂ = sample proportion (no. of occurrences divided by the sample size
n = sample size
 Maximum error percent

𝑝̂ (1−𝑝̂)
e=z
𝑛

When data for desired confidence level and amount of

allowable error is given, computing for sample size:

𝑧 2
𝑛= 𝑝̂(1 − 𝑝̂)
𝑒
 Example:

The manager of a small supermarket chain wants to estimate the proportion of time stock clerks
spend making price changes on previously marked merchandise. The manager wants a 98%
confidence that the resulting estimate will be within 5 percent of the true value. What sample size
should she use?

e = 0.05 z = 2.33 𝑝̂ෝ is unknown

 Example:

e = 0.05 z = 2.33 𝑝̂ෝ is unknown

• When no sample estimate of p is available,

Initial estimate of n: a preliminary estimate of sample size can
𝑧 2 be obtained using pˆ = 0.50. After 20 or so
𝑛 = 𝑒 𝑝̂(1 − 𝑝̂) observations, a new estimate of pˆ can be
obtained from those observations and a
= 2.33 2 revised value of n computed using the
0.50(1-0.50) new p.
0.05

= 2171.56 x 0.5(0.50)
= 2171.56 x 0.25
= 542.89 or 543 observations
 Example:

Suppose that in the first 20 observations clerks are changing the price twice:

𝑝̂ = 2/20 = 0.10

𝑧 2
𝑛= 𝑝̂(1 − 𝑝̂)
𝑒

2.33 2
= 0.05
0.10(1-0.10)
= 2171.56 x 0.1(0.90)
= 2171.56 x 0.09
= 195.44 or 196 observations
 Example:
Suppose that a second check is made after a total of 100 observations and 𝑝̂ = 0.11
at this point including the initial 20 observations. Recompute n.

𝑧 2
𝑛= 𝑝̂(1 − 𝑝̂)
𝑒

2.33 2
= 0.05
0.11(1-0.11)
= 2171.56 x 0.11(0.89)
= 2171.56 x 0.0979
= 212.59 or 213 observations
 Overall procedure
1. Clearly identify the worker(s) or machine(s) to be studied.
2. Notify the workers and supervisors of the purpose of the study to avoid
arousing suspicions.
3. Compute an initial estimate of sample size using a preliminary estimate of p,
if available (e.g., from analyst experience or past data).
Otherwise, use p̂ =0.50.
4. Develop a random observation schedule.
5. Begin taking observations. Recompute the required sample size several
times during the study.
6. Determine the estimated proportion of time spent on the specified activity.
An analyst has been asked to prepare an estimate of the proportion of time that grinding
machine operator spends adjusting the machine, with a 90 percent confidence level. Based on
previous experience, the analyst believes the proportion will be approximately 30 percent.

a. If the analyst uses a sample size of 400 observations, what is the maximum possible error
that will be associated with the estimate?

b. What sample size would the analyst need in order to have the maximum error be no more
than 5 percent?
𝑝̂= 0.30
z 1.65; 90 percent confidence

a. b.
𝑧 2
e=z
𝑝̂ (1−𝑝̂) 𝑛= 𝑝̂(1 − 𝑝̂)
𝑒
𝑛 1.65 2
=
0.05
0.30(1− 0.30)
0.30 (1−0.30)
= 1.65 = 1,089 (0.21)
400
= 0.038 = 228.69 or 229
 Random
Number Table
 Random Number Table

• Table consisting of unordered sequences of numbers, used to determine random observation

schedules.
• Enables analysts to incorporate randomness into the observation schedule.
• Numbers obtained from the table can be used to identify observation times for a study.
 Random Number Table
Suppose that three observations will be made:
seven days, nine hours and 60 minutes. Day Hour Minute

6 3 47

1 4 15

2 9 24

Day Hour Minute

1 4 415

2 9 24

6 3 47
Work sampling
vs
Time Study
 Advantages
1. Observations are spread out over a period of time.
2. There is little or no disruption of work.
3. Workers are less resentful.
4. Studies are less costly and less time-consuming,
and the skill requirements of the analyst are much
less.
5. Studies can be interrupted without affecting the
results.
6. Many different studies can be conducted
simultaneously.
7. No timing device is required.
8. It is well suited for nonrepetitive tasks.
 Disadvantages

1. There is much less detail on the elements of a job.

2. Workers may alter their work patterns when they
spot the observer, thereby invalidating the results.
3. In many cases, there is no record of the method
used by the worker.
4. Observers may fail to adhere to a random schedule
of observations.
5. It is not well suited for short, repetitive tasks.
6. Much time may be required to move from one
workplace to another and back to satisfy the
randomness requirement.
Employee
Efficiency
 Efficiency
the ratio of actual output to effective capacity.

𝐴𝑐𝑡𝑢𝑎𝑙 𝑜𝑢𝑡𝑝̂𝑢𝑡
Efficiency =
𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑐𝑎𝑝̂𝑎𝑐𝑖𝑡𝑦

where:
Effective capacity = Design Capacity – Allowances
 Efficiency
the ratio of actual output to effective capacity.

𝐴𝑐𝑡𝑢𝑎𝑙 𝑜𝑢𝑡𝑝̂𝑢𝑡
Efficiency =
𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑐𝑎𝑝̂𝑎𝑐𝑖𝑡𝑦

Actual output cannot exceed effective capacity and is

often less because of machine breakdowns,
absenteeism, shortages of materials, and quality
problems.
 Example:

Mr. Sanchez, supervisor of MS Supermarket wants to

determine the efficiency of Hormel foods’ store clerk. 𝐴𝑐𝑡𝑢𝑎𝑙 𝑜𝑢𝑡𝑝̂𝑢𝑡
Efficiency =
The store clerk can arrange and put price tags on 24 𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑐𝑎𝑝̂𝑎𝑐𝑖𝑡𝑦

boxes of the company’s products during an 8-hour

shift. Design capacity is at 32 boxes and allowance of
Effective capacity = 32– 4.48
14% of design capacity . = 27.52

24
Efficiency = 27.52
=0.87209
= 87.2%
 Operations Strategy

• It is important for management to make design of work systems a key element of it operations
strategy.
• Despite the major advances in computers and operations technology, people are still the heart of
a business, they can make or break it, regardless of technology used.
• Workers can be a valuable source of insight and creativity because they actually perform the jobs
and are closest to the problems that arise.
• In the same vein, an increasing number of companies are focusing attention on improving the
quality of work life and instilling pride and respect among workers.
Thank you