7-1 Design of Work Systems

WORK MEASUREMENT
TIME STUDY
(Direct Time Study & Activity Sampling)
7-2 Design of Work Systems

Work Measurement

TIME STUDY
• Standard time
• Stopwatch time study
• Historical times
• Predetermined data
• Work Sampling
7-3 Design of Work Systems

Historical Experience
• Relatively easy, convenient, and inexpensive
• Not objective, unknown accuracy

Not recommended
7-4 Design of Work Systems

Time Studies

• Labor processing standards are based on

observing worker doing task
• Observe only a sample of work
• Use average time & pace to set standard
• Disadvantages
• Requires a trained & experienced analyst
• Standard cannot be set before task is
performed
7-5 Design of Work Systems

The Eight Steps to Conducting a

Time Study
1. Define the task to be studied (after a methods
analysis)
2. Break down the task into precise elements
3. Decide how many times each element of the task
must be measured
4. Record the times and ratings of performance for
the task elements
[Rating = (Observed rating / standard rating)]
(*Rating = assessment of a worker relative work rate based on observer’s
observation compared with standard pace.)
7-6
The Eight Steps to Conducting a
Design of Work Systems

Time Study - continued

5. Compute the average observed cycle time (element

times adjusted for unusual influences)

6. Compute the normal time for each task element

Normal time = (Average actual cycle time) x (Rating factor)

7-7 Design of Work Systems
The Eight Steps to Conducting a Time
Study - continued

7. Sum the normal times for each element to

develop a total normal time for the task

8. Compute the standard time:

Standard time = Total normal time

(1- Allowance factor)
7-8 Design of Work Systems

Allowances

• Personal time allowance - 4% - 7% of total

time - use of restroom, water fountain, etc.
• Delay allowance - based upon actual delays
that occur
• Fatigue allowance - to compensate for
physical or mental strain, noise level,
tediousness, heat and humidity, assumption
of an abnormal position, etc.
7-9 Design of Work Systems

(Example 1) - Direct Time Study

Work Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5

1 Take glass 8 9 8 10 8

2 Place on jig and turn on the 10 12 10 11 12

machine
3 Milling Operations 25 25 25 25 25
(fully automatic)
4 Lift glass and put it on conveyor 8 8 6 8 6

Time study data using snap back stop watch. Time in seconds. Total allowance is
15% of the normal time. Workers rating is 110%.
Compute the total standard time.
Calculate the labor cost per product if the worker’s wage is RM 3 per-hour.
7-10 Design of Work Systems

Direct Time Study (Example)

Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Average Normal Std
time time
1 8 9 8 10 8 8.6 9.46 11.129

2 10 12 10 11 12 11 12.1 14.235

3 25 25 25 25 25 25 25 25

4 8 8 6 8 6 7.2 7.92 9.318

Element 1:
Average time = (8+9+8+10+8)/5 = 8.6 sec
Normal time = Average time x Rating = 8.6 x 1.1 = 9.46 sec
Standard time = Normal time /(1-allowance) = 9.46 / (1-0.15) = 11.129 sec
Total Standard Time = 11.129+14.235+25+9.318 = 59.682 sec/product
7-11 Design of Work Systems

Direct Time Study (Example)

Calculate the labor cost for each product if the worker’s wage is RM
3 per-hour.

 RM 3 / hr  −4
Worker' s wage =   = 8.33(10) RM / sec
 3600 sec/ hr 

Labor Cost per product = 59.682 sec x 8.33(10) − 4 RM / sec

= RM 0.0497 / product
7-12 Design of Work Systems

- Example 2 -
Work Elements Cycle 1 Cycle 2 Cycle 3 Cycle 4

1 0.22 0.26 0.25 0.23

2 0.15 0.18 0.15 0.16
3 0.90 1.10 1.04 1.00
4 0.72 0.80 0.76 0.68

Data from snap back stop watch in minutes of a manual assembly process time
study. The worker is rated at 108%. The allowances are 5% for fatigue, 6% for delay,
and 6% for personal relief. The worker’s salary is RM1000 per month.
a) Compute the total assembly standard time for the assembly process.
b) If the demand is 100,000 unit per month, estimate the number of operators
required for the assembly process. The company is operating 24 days per month
and a single 8 hour shift per day.
c) If the company can only manage to employ 18 workers, compute the over time
cost per day for each worker for the production of 100,000 units per month.
Assume only 15 workers are available for over time and the over time pay rate is 1.5
times of the normal wage.
7-13 Design of Work Systems

Solved Problem
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Average Normal Std
Time Time
1 0.22 0.26 0.25 0.23 0.24 0.259 0.312
2 0.15 0.18 0.15 0.16 0.16 0.173 0.208
3 0.90 1.10 1.04 1.00 1.01 1.091 1.314
4 0.72 0.80 0.76 0.68 0.74 0.799 0.963

(a) Element 1
0.22 + 0.26 + 0.25 + 0.23
Average Time = = 0.24 min
4

Normal Time = Average Time x Rating = 0.24 x 1.08 = 0.259 min

1 1
Standard Time = Normal Time x = 0.259 × = 0.312 min
1 - Allowance 1 − 0.17

Total Assembly Standard Time = 0.312 + 0.208 + 1.314 + 0.963 = 2.797 min/unit
7-14 Design of Work Systems

Solved Problem
b) If the demand is 100,000 unit per month, estimate the number of
operators required for the assembly process. The company is operating 24
days per month and a single 8 hour shift per day.
(b)
hr day min min
Working time of 1 operator = 1 × 8 × 24 × 60 = 11,520
day mth hr mth

min
11,520
Monthly quantity produced by 1 operator = mth = 4,118.70 unit
min mth
2.797
unit

unit
100,000
Monthly Demand mth = 24.28 ≈ 25
Number of operators required = =
Capacity per operator 4118.70 unit
mth
7-15 Design of Work Systems

Solved Problem
c) If the company can only manage to employ 18 workers, compute the over time
cost per day for each worker for the production of 100,000 units per month.
Assume only 15 workers are available for over time and the over time pay rate is 1.5
times of the normal wage.

(c)
unit
Monthly quantity produced by 18 operators = 4,118.70 × 18 = 74 ,137 units
mth

unit
Monthly quantity shortage = 100,000 - 74,137 = 25,863 (monthly shortage, need OT)
mth
unit
25,863
mth unit
Daily quantity shortage = = 1077 . 6
day day
24
mth

unit unit min

Time required to produced 1077.6 = 1077 . 6 × 2 . 797
day day unit

min hr
= 3 , 014 = 50 . 234
day day
7-16 Design of Work Systems

Solved Problem
Due to only 15 operators are available for over time work,
therefore over time hours for each operator per day
hr
50.234
day hr
= = 3.349
15 operator operator − day

RM
1,000
Normal wage = mth = 5.208 RM
day hr hr
24 ×8
mth day
RM RM
Over time wage = 1.5 x 5.208 = 7.812
hr hr

Over time cost per operator per day

hr RM RM
= 3.349 × 7.812 = 26.162
operator − day hr operator − day
7-17 Design of Work Systems

Work Sampling

• Labor standard is set using output and % of

time worker spends on tasks
• Involves observing worker at random times
over a long period
• Advantages
• Less expensive than time studies
• Observer requires little training
• Disadvantages
• Ineffective with short cycles
7-18 Design of Work Systems

Work Sampling

• Used for
• Ratio delay studies
• Setting labor standards
• Measuring worker performance
7-19 Design of Work Systems
The Five Step
Work Sampling Procedure

1. Take a preliminary sample to obtain an

estimate of the parameter value
2. Compute the sample size required
3. Prepare a schedule for observing the
worker at appropriate times
4. Observe and record worker activities; rate worker
performance
5. Determine how workers spend their time (usually
as a percent)
7-20 Design of Work Systems

Work Sampling Equations

(Total Observation Time) x (Productive %) x (Rating)

Normal Time =
Total Output

Standard Time = Normal Time

(1 – Allowance)
7-21 Design of Work Systems

Work Sampling (Example)

Status Tally Sum Percentage

Productive IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII I 41 41/45 = 91%

Idle IIII 4 4/45 = 9%

Work sampling studies were conducted for 6 consecutive days at a factory.

A total of 45 observations were made during the 8 hours working period for
each day. The number of units managed to be produced are 3000 units for 1
week. The factory is operating 6 days a week. The data above are included
with rating and allowance of 97% and 15%.

Compute the process standard time.

7-22 Design of Work Systems

Work Sampling (Example)

Status Tally Sum Percentage

Productive IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII I 41 41/45 = 91%

Idle IIII 4 4/45 = 9%

hr min
Total observation time = 8 × 60 × 6 day = 2880 min
day hr
Standard Time, ST
Total observation time 1
=[ × Productive % × Rating] ×
Total output 1 − allowance

2880 min 1
Standard Time, ST = × 0.91× 0.97 ×
3000 unit 1 − 0.15
min
= 0.997
unit
7-23 Design of Work Systems

Tutorial 1
Proses Description Average Time (min)
1 Manual 23
2 Manual 32
3 Automatic machine 9
4 Manual 8

Rating : 110%
Allowance: 20%

(a) Compute the standard time for each process.

(b) If the company has no problem with the availability of manpower,

recommend the maximum capacity for the factory for a 8 hour shift work.
7-24 Design of Work Systems

Tutorial 1
(a)
Proses Description Average Time Normal Std Time
(min) time

1 Manual
2 Manual
3 Automatic
machine
4 Manual

(b)
7-25 Design of Work Systems

Tutorial 2
Emirates Consultant conducted a work sampling studies for 5 consecutive days at an
assembly factory. A total of 48 observations were made during the 8 hour working
period for each day. The data collected during the 5 day studies is illustrated in Table
1. The whole assembly process is operating on 5 working days per week, 95% rating
and the company’s allowable allowances is 20%.

(i) Compute the standard time (min/unit) for the assembly process.
(ii) At peak demand period, the factory is normally required to produce 3,100 units per
week. If only 60% of the employee is willing to work over time, compute the average
overtime per day must be arranged in order to meet the peak demand.

Item Data
Total output over 5 days studies 2,500 unit
Assembly process at fast speed 35% of observations
Assembly process at moderate speed 45% of observations
Assembly process at slow speed 5% of observations
Production is stopped due to no operator 5% of observations
Production is stopped due to no material 10% of observations
7-26 Design of Work Systems

Tutorial 2
(i)
Total observation time =

Std Time =

(ii)
unit
Peak Demand =
wk

unit
Capacity during normal 8 hours =
day
7-27 Design of Work Systems

Tutorial 2
Capacity shortage = unit/day

If all employees are forced to do over time, the over time hours
min
=
day

Considering only 60% of employees are available for over time,

hour
then total overtime =
day
7-28 Design of Work Systems

END OF CLASS