Predetermined Motion Time Systems (PMTS)

Predetermined Motion Time Systems

Predetermined motion time system (PMTS) is a work measurement technique whereby times established for basic human motions are used to build up the time for a job at a defined level of performance. PMTS also called predetermined time system (PTS), is a database of basic motion elements and their associated normal time values, together with a set of procedures for applying the data to analyze manual tasks and establish standard times for the tasks. The PMTS database is most readily conceptualized as a set of tables listing time values that correspond to the basic motion elements, the lowest level in our hierarchy of manual work activity They include motions such as reach, grasp, move, and release.

The Predetermined Motion Time Systems Concept

y The concept is similar to constructing a building. A building is composed of elements-Doors, walls, beams, bricks, plumbing. The structure is the sum of the elements. y Likewise, a job is also considered to consist of elements, the total of which is the sum of the elements. y In formal words, the assumption is that each job element is independent and additive; that is, each element does not affect what happens before or after it - independence and additivity.

What are Predetermined Motion Time Systems?

y A collection of basic motion times. y Technique for obtaining a standard time by:
y analyzing and subdividing a task into elemental motions y assigning pre-set standard times for motions and summing these to obtain a standard time for the whole task.

Popular Predetermined Motion Time Systems

y Methods -Time Measurement y Work-Factor y Predetermined Time Standards Systems

Methods Time Measurement (MTM)

y MTM is a procedure which analyzes any manual operation or method into the basic motions required to perform it, and assigns to each motion a predetermined time standard which is determined by the nature of the motion and the conditions under which it is made. y MTM gives values for the fundamental motions of: reach, move, turn, grasp, position, disengage, and release.

Methods Time Measurement (MTM)

y Most predetermined motion time systems use time measurement units (TMU) instead of seconds for measuring time. One TMU is defined to be 0.00001 hours, or 0.036 seconds. These smaller units allow for more accurate calculations without the use of decimals. 1 hr = 100,000 TMU y MTM studies provided the following kinds of information
y Developing effective work methods prior to production y Improving existing methods to increase production and decrease labor cost per unit y Establishing time standards as basis for wages and incentive plans y Developing time formulas or standard data for future use y Guiding product design for most efficient manufacture y Developing effective tool designs for most efficient manufacture y Selecting effective equipment for most efficient manufacture

Advantages of PMTS systems

PMT systems offer a number of advantages over stop-watch time study. With PMT systems one time is indicated for a given motion, irrespective of where such a motion is performed.  A PMT system, which avoids both rating and direct observation, can lead to more reliability in setting standard times.  PMT systems are not too difficult to apply and can be less time consuming than other methods.  PMT systems are particularly useful for very short repetitive time cycles such as assembly work in the electronics industry.

Analytical estimating
This technique introduces work measurement concepts into estimating. In analytical estimating the estimator is trained in elemental breakdown, and in the concept of standard performance. The estimate is prepared by first breaking the work content of the job into elements, and then utilising the experience of the estimator (normally a craftsman) the time for each element of work is estimated - at standard performance. These estimated basic minutes are totalled to give a total job time, in basic minutes. An allowance for relaxation and any necessary contingency is then made, as in conventional time study, to give the standard time.

Standard Time
Standard time is the total time in which a job should be completed at standard performance i.e. work content, contingency allowance for delay, unoccupied time and interference allowance, where applicable. Allowance for unoccupied time and for interference may be important for the measurement of machine-controlled operations, but they do not always appear in every computation of standard time. Relaxation allowance, on the other hand, has to be taken into account in every computation, whether the job is a simple manual one or a very complex operation requiring the simultaneous control of several machines. A contingency allowance will probably figure quite frequently in the compilation of standard times; it is therefore convenient to consider the contingency allowance and relaxation allowance, so that the sequence of calculation which started with the completion of observations at the workplace may be taken right through to the compilation of standard time.

Time study: Rating

If the standard pace is maintained and the appropriate relaxation is taken, a worker will achieve standard performance over the working day. Standard performance is the rate of output which qualified workers will naturally achieve without over-exertion as an average over the working shift provided they know and adhere to the specified method and, they are motivated to apply themselves to their work. This performance is denoted as 100 on the standard rating and performance scales.

Time study: Rating

It should be noted though that the standard pace applies to particular workers (with good physique, physical conditioning) working in appropriate environment. In practice, because of the inherent dissimilarities amongst workers, the rate of work is never the same throughout the working day. It is not uncommon for workers to work faster at some periods of the day than they do during others. So standard performance is achieved on average over a period of time with in-built standard deviation. In fact, working at the standard rate will not always mean moving the limbs with the same speed.

Time study: Rating

The purpose of rating is to determine from the time actually taken by the operator being observed the standard time which can be maintained by the average qualified worker and which can be used as a realistic basis for planning, and incentive schemes. Time study is concerned with speed at which operator carries out the work, in relation to the concept of normal speed. Speed here means the effective speed of operation.

Factors affecting rate of working

Factors outside the control of workers include: Variation in the quality or other characteristics of the material used, although they be within the prescribed tolerance limit. Changes in the operating efficiency of tools or equipment within their normal life. Minor and unavoidable changes in methods or conditions of operations. Variation in the mental attention for the performance of elements. Changes in the climatic and other conditions.

Inventory Control

Inventory
Stocks to ensure uninterrupted supplies The idle resources which have future economic value Cushion between estimated and actual demand of materials
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Inventory control
A scientific system which indicates: 1. What to order 2. When to order 3. How much to order 4. How much to stock
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Inventory
Def. - A physical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state. Raw Materials Works-in-Process Finished Goods Maintenance, Repair and Operating (MRO)

Inventory control
1. Optimum level of inventory - not large, not small 2. First in, first out 3. Factors: utility, availability, demand, cost 4. ABC Analysis: Quantity vs Cost categorization of items A- 10 % --70 % B-20 % - 20 % C-70 % -10 % More attention to A

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Definition of inventory control

Inventory control is the technique of maintaining the size of the inventory at some desired level keeping in view the best economic interest of an organization.

Type of Inventory
(1)

Reason for holding the Inventory

Raw materials To reap the price advantage available on seasonal raw materials.

(2) Work in progress

To balance the production flow.

(3) Ready made components (4) Scraps (5) Finished Goods

When the components are bought rather than made. They are disposal of in bulk. Lying in stock rooms and waiting dispatches

Why inventory is important in an organization

    

Provide and maintain good customer service Enables smooth flow of goods through the production process Provide protection against the uncertainty of demand and supply Ensure a reasonable utilization of equipment and labour. With purchase in bulk discount can be availabe.

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Objectives of inventory control

Protection against fluctuations in demand; Better use of men, machines and material; Protection against fluctuations in output; Control of stock volume; Control of stock distribution.

Factor affecting inventory control policy

a) Characteristics of manufacturing system b) Amount of protection against shortage c) Organizational factors d) Other factors(inflation , strike, Wars)
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Method of inventory control

Economic order quantity(Economic lot size)

Re-Order level

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ABC Analysis

It is efficient control of stores requires greater in case of costlier items

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Continued .
Item A Quality Costlier Quantity order Less Checking Regular system to see that there is no overstocking as well as that there is no danger of production being interrupted for unwanted material. Position being viewed in each month Order in large quantity so that cost can be avoided

B C

Less costlier Economical

Order may be on review basis. Larger

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Limitation of inventory control

Efficient inventory control method can reduce but cannot eliminate business risk. The objective of better sales through improve service to customer ; reduction in inventories to reduce size of investment and reducing cost of production by smother production operation are conflicting each other The control of inventories is complex because of many function it perform .

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Limitation of inventory control

Efficient inventory control method can reduce but cannot eliminate business risk. The objective of better sales through improve service to customer ; reduction in inventories to reduce size of investment and reducing cost of production by smother production operation are conflicting each other The control of inventories is complex because of many function it perform .

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Major activities of inventory control

Planning the inventories; Procurement of inventories; Receiving and inspection of inventories; Storing and issuing the inventories; Recording the receipt and issues of inventories. Physical verification of inventories; Follow-up function ; Material standardization and substitution.

Inventory Decisions
Executive decide two basic issues while dealing with inventories; (a) How much of an item to order when the inventory of that item is to be replenished. (b) When to replenish the inventory of that item. By definition, inventory facilitate production or satisfy customer demands. Inventory system is a set of policies and controls which monitors and determines the levels of inventory. Inventory conventionally include raw materials, work-in-progress, components parts, supplies and finished goods. Operations is a transformation process in which the inputs are raw materials and output is the finished goods.

Suppliers

Raw materials

Finished good
Production Work-in-progress

customers.

Supply rate

Inventory level

Demand rate

Steps in Inventory control

Deciding the maximum- minimum limits of inventory; Determination of Reorder point; Determination of reorder quantity; Perpetual inventory control; ABC analysis; Method of control through turn over.

Maximum stock level

Quantity of inventory above which should not be allowed to be kept. This quantity is fixed keeping in view the disadvantages of overstocking; Factors to be considered: Amount of capital available. Godown space available. Possibility of loss.

Continue .
Cost of maintaining stores; Likely fluctuation in prices; Seasonal nature of supply of material; Restriction imposed by Govt.; Possibility of change in fashion and habit.

Minimum stock level

This represents the quantity below which stocks should not be allowed to fall . The level is fixed for all items of stores and the following factors are taken into account: 1.Lead time2. Rate of consumption of the material during the lead time.

Re-ordering level
It is the point at which if stock of the material in store approaches, the store keeper should initiate the purchase requisition for fresh supply of material. This level is fixed some where between maximum and minimum level.

Economic Order Quantity

It is also known as standard order quantity , optimum quantity or economic lot size. By definition economic order quantity that size of order for which the total cost is minimum.

Computation of EOQ
The widely used formula is EOQ = {2RCp/Ch} Where , R= Annual quantity to be used in units. Cp=Cost of placing an Order. Ch= cost of holding one unit for one year.

ABC Analysis

It is efficient control of stores requires greater in case of costlier items.

Continued .
Item A Quality Costlier Quantity order Less Checking Regular system to see that there is no overstocking as well as that there is no danger of production being interrupted for unwanted material. Position being viewed in each month Order in large quantity so that cost can be avoided

B C

Less costlier Economical

Order may be on review basis. Larger

Perpetual Inventory System

It is a method of recording stores balances after every receipt and issue, to facilitate regular checking and obviate closing down for stock taking.

-Wheldon

Factors which help helpful to make system successful

Stores ledger, stores control, cards or bin cards are properly maintained ; Quantity balance store shown in the store ledger; stock control and bin cards are reconciled; Exploring the cause of discrepancies if any physical balances and book balances.

Continued ..
Inventory ratio (Raw material)The value of material consumed during a period Average value of inventory during that period
High ratio = fast moving stock

Definition of inventory control

Inventory control is the technique of maintaining the size of the inventory at some desired level keeping in view the best economic interest of an organization. Inventory control is the part of a production program which specify the material requirement and schedule the order of work to be done
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Inventory control means keeping a track of inventory , so that items are available when they are needed. It can be achieved through:--------- Purchasing items at economic price at a proper time and in sufficient quantity.  Provision of suitable and secured location with sufficient space.  Inventory identification system.  Up to data and accurate record keeping by a responsible staff.
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