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DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook. Work Performance Measurement. F O U R T H E D I T I O N. supplement 10. © The McGraw-Hill Companies, Inc., 2003. Supplement Objectives.

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work performance measurement

DAVIS

AQUILANO

CHASE

PowerPointPresentation

by

Charlie

Cook

Work PerformanceMeasurement

F O U R T H E D I T I O N

supplement 10

© The McGraw-Hill Companies, Inc., 2003

supplement objectives
Supplement Objectives
  • Introduce the more common types of work methods that are practiced in the workplace.
  • Understand the fundamental issues involved in developing work measurements.
  • Identify the basic elements associated with conducting a time study.
  • Determine how to design a work sampling study and apply it to an actual operation.

Fundamentals of Operations Management 4e

work methods
Work Methods
  • Studying the production system to:
    • Identify non-valued-added time delays, transport distances, process and processing time requirements
    • Simplify the entire operation by eliminating any step that does not add value to the product.

Fundamentals of Operations Management 4e

work methods and design aids
Work Methods and Design Aids

Exhibit S10.1

Fundamentals of Operations Management 4e

flow diagram and process chart of an office procedure present method
Flow Diagram and Process Chart of an Office Procedure—Present Method*

*Requisition is written by supervisor, typed by secretary, approved by superintendent, and approved by purchasing agent; then order is prepared by a stenographer.

Source: Ralph M. Barnes, Motion and Time Study, 8th ed. (New York: John Wiley & Sons, 1980), pp. 76–79. Reprinted by permission of John Wiley & Sons, Inc.

Exhibit S10.2a

Fundamentals of Operations Management 4e

flow diagram and process chart of an office procedure present method6
Flow Diagram and Process Chart of an Office Procedure—Present Method*

*Requisition is written by supervisor, typed by secretary, approved by superintendent, and approved by purchasing agent; then order is prepared by a stenographer.

Source: Ralph M. Barnes, Motion and Time Study, 8th ed. (New York: John Wiley & Sons, 1980), pp. 76–79. Reprinted by permission of John Wiley & Sons, Inc.

Exhibit S10.2b

Fundamentals of Operations Management 4e

common notation in process charting
Common Notation in Process Charting

Exhibit S10.3

Fundamentals of Operations Management 4e

gilbreth s principles of motion economy
Gilbreth’s Principles of Motion Economy

Source: Frank C. Barnes, “Principles of Motion Economy: Revisited, Reviewed, and Restored,” Proceedings of the Southern Management Association Annual Meeting, Atlanta, GA, 1983, p. 298.

Exhibit S10.4a

Fundamentals of Operations Management 4e

gilbreth s principles of motion economy cont d
Gilbreth’s Principles of Motion Economy (cont’d)

Source: Frank C. Barnes, “Principles of Motion Economy: Revisited, Reviewed, and Restored,” Proceedings of the Southern Management Association Annual Meeting, Atlanta, GA, 1983, p. 298.

Exhibit S10.4b

Fundamentals of Operations Management 4e

worker machine chart for a gourmet coffee house
Worker-Machine Chart for a Gourmet Coffee House

Exhibit S10.5a

Fundamentals of Operations Management 4e

worker machine chart for a gourmet coffee house cont d
Worker-Machine Chart for a Gourmet Coffee House (cont’d)

The customer, the clerk, and the coffee grinder (machine) are involved in this operation. It required 1 minute and 10 seconds for the customer to purchase a pound of coffee in this particular store.

During this time the customer spent 22 seconds, or 31% of the time giving the clerk his order. He was idle during the remaining 69% of the time. The clerk worked 49 seconds, or 30% of the time. The machine was in operation 21 seconds, or 30% of the time.

Exhibit S10.5b

Fundamentals of Operations Management 4e

activity chart of an emergency tracheotomy
Activity Chart of an Emergency Tracheotomy

Source: Data taken from Harold E. Smalley and John Freeman, Hospital Industrial Engineering (New York: Reinhold, 1966), p. 490.

Exhibit S10.6

Fundamentals of Operations Management 4e

work measurement
Work Measurement
  • Work Measurement
    • The methodology used for establishing time standards.
  • Basic Industrial Engineering Methods
    • Time study
    • Elemental standard time data
    • Predetermined motion-time data
    • Work sampling

Fundamentals of Operations Management 4e

types of work measurement applied to different tasks
Types of Work Measurement Applied to Different Tasks

Exhibit S10.7

Fundamentals of Operations Management 4e

time study
Time Study
  • Time Study
    • The determination, with the use of a stopwatch, of how long it takes to complete a task or set of tasks.
    • Normal time = Observed performance time per unit x Performance rating
    • Piece rate is the rate paid for work completed.
    • Break down tasks by:
      • Defining each work element.
      • Separating human work from machine work.
      • Defining operator and machine delays separately.

Fundamentals of Operations Management 4e

elemental standard time data
Elemental Standard-Time Data
  • Time Standard
    • The established time for completing a job, used in determining labor costs associated with making a product.
    • Steps
      • Breakdown the new job into its elements
      • Match elements to the time for similar job-specific elements in the elemental table.
      • Adjust elements for special characteristics of the new job.
      • Add element times together and add delay and fatigue allowances.

Fundamentals of Operations Management 4e

predetermined motion time data
Predetermined Motion-Time Data
  • Predetermined Motion-Time Tables
    • Create a time standard for a job or task based on standard times for basic motions (therbligs).
    • Can be applied to a wide-variety of tasks.

Fundamentals of Operations Management 4e

work sampling
Work Sampling
  • Work Sampling
    • A statistical technique for estimating how workers allocate their time among various activities throughout a workday.
    • Issues involved:
      • What level of statistical confidence is desired in the results?
      • How many observations are necessary?
      • When should the observations be made?

Fundamentals of Operations Management 4e

work sampling cont d
Work Sampling (cont’d)
  • Determining the Required Number of Samples:

N= Number of observations to be made

Z = Number of standard deviations associated with a given confidence level

p = Estimated proportion of time that the activity being measured occurs

E = Absolute error that is desired

Fundamentals of Operations Management 4e

work sampling cont d20
Work Sampling (cont’d)
  • Steps in Conducting a Work Sampling Study:
    • Identify the activities for study.
    • Estimate the proportion of time of the activity of interest to the total time.
    • State the desired accuracy in the study results.
    • Determine the specific time when each observation is to be made.
    • If using an estimated time, recompute the required samples size at intervals during the study and adjust the number of observations.

Fundamentals of Operations Management 4e

assignment of numbers to corresponding minutes
Assignment of Numbers to Corresponding Minutes

Exhibit S10.8

Fundamentals of Operations Management 4e

determination of observation times
Determination of Observation Times

Exhibit S10.9

Fundamentals of Operations Management 4e

observation schedule
Observation Schedule

Exhibit S10.10

Fundamentals of Operations Management 4e

financial incentive plans
Financial Incentive Plans
  • Basic Compensation Systems
    • Hourly pay
    • Straight salary
    • Piece rate
    • Commissions
  • Individual or Small-Group Plans
  • Organizational Plans
    • Profit sharing
    • Gainsharing

Fundamentals of Operations Management 4e