Unit 2

Management of Conversion System

Chapter 8: Workforce Measurement

Lesson 25 - work measurement.

Learning Objectives

After reading this lesson you would be able to understand

Performance dimension
Role of accuracy
Work measurement techniques

What is the need of work measurement?

The fundamental purpose of work measurement is to set time standards for a
job. Such standards are necessary for four reasons:
1. To schedule work and allocate capacity
All scheduling approaches require some estimate of how much time it
takes to do the work being scheduled.
2. To motivate the workforce and measuring workers’ performance
Measured standards are particularly critical where output based incentive
plans are employed.
3. To evaluate existing performance and bid for new contracts
Question such as “Can we do it?” and “how are we doing?” presume the
existence of standards.
4. To use for benchmarking
Benchmarking teams regularly compare work standards in their company
with those of similar jobs in other organizations.
Work measurement and its resulting work standards have been
controversial since Taylor’s time. Much of this criticism has come from
unions, which argue that management often sets standards that cannot be
 regularly achieved. There is also the argument that workers who find a
better way of doing the job get penalized by having a revised rate set.
Despite criticisms, work measurement and standards have proved
effective.
Work Measurement Techniques
There are two common techniques for measuring work and setting
standards; time study and work sampling. Highly detailed, repetitive
work usually calls for time study analysis. When work is infrequent or
entails a long cycle time, work sampling is used.
Time study
A time study is generally made with a stopwatch, either on the spot or by
analysing a videotape for the job. The job or task to be studied is
separated into measurable parts or elements, and each element is timed
individually. Some general rules for breaking down the elements are:
1. Define each work element to be short in duration but long enough so
that it can be timed with a stopwatch and the time can be written
down.
2. If the operator works with equipment that runs separately, separate the
actions of the operator and of the equipment into different elements.
3. Define any delays by the operator or equipment into separate
elements.
After a number of repetitions, the collected times are averaged. (The
standard deviation may be computed to give a measure of variance in the
performance times.) The averaged times for each element are added,
yielding the performance time for the operator. However, to make this
operator’s time usable for all workers, a measure of speed or performance
rating must be included to “normalize” the job. The application of a rating
factor gives what is called normal time.
Normal time = observed performance time per unit x Performance rating
When an operator is observed for a period of time, the number of units
produced during this time, along with the performance rating, gives

Timeworked
NT = x Performance rating
Numberofunitsproduced

For example, if an operator performs a task in two minutes and the time-
study analyst estimates her to be performing about 20 percent faster than
normal, the operator’s performance rating would be 1.2 or 120 percent of
normal. The normal time would be computed as 2 minutes x 1.2 , or 2.4
minutes.

Standard time
It is derived by adding to normal time allowances for personal needs (such
as washroom and tea breaks), unavoidable work delays (such as equipment
breakdown or lack of materials), and worker fatigue (physical or mental).
Two such equations are -

Standard time = Normal time + (Allowances x Normal time)

Or, ST = NT + (Allowances x NT)
Or, ST = NT (1 + Allowances) -------- (1)

And

NT
ST = ------------------ (2)
1 − Allowances

Equation (1) is most often used in practice. If one presumes that allowances
should be applied to the total work period, then equation (2) is the correct
one. To illustrate, suppose that the normal time to perform a task is one
minute and that allowances for personal needs, delays, and fatigue total 15
percent; then by equation (1)

ST = 1 (1 +0.15) = 1.15 minutes

In an eight-hour day, a worker would produce 8 x 60/1.15, or 417 units. This

implies 417 minutes of working and 480 – 417 = 63 minutes for allowances.

With equation (2),

St = 1/ (1-0.15) = 1.18 minutes.

In the same eight-hour day, 8 X 60/1.18 (or 408) units are produced with
408 working minutes and 72 minutes for allowances. Depending on which
equation is used, there is a difference of nine minutes in the daily allowance
time.
Example 2: If Premabai wants to be confident at 95 percent level that the
ratios for disentangling and knitting are within + 2 percent of the real value,
what is the total number of observations, which Hema should perform?
Taking the knitting and disentangling activities only, to what extent are the
time standards precise?

Solution:
n = 4p (1 – p)/ E2

= 4 (0.25) (0.75) / (0.02) 2

where, p = 0.25 for disentangling

However, looking at knitting we have the following requirement

n = 4 (0.4) (0.6) / (0.02)2

= 2400

where, p = 0.40 for knitting.

Therefore, the total number of observations should have been 2400. The
number of observations performed by Hema are much lower than those
required.

The answer to the second part of the question is derived as

N = 300 = 4 (0.40) (1 – 0.40) / E2

Therefore, E = √ (4 (0.40) (0.60) / 300)

= + 0.0565 = + 5.65%

zthe time standard for knitting will b precisely only to that extent, i.e. +
5.65%

Making similar calculations for disentangling,

E = √ (4 (0.25) (1-0.25)/ 300)

= + 0.05 = + 5%
The time standard for disentangling activity will be precise to the extent of +
5%.

It may be noted that the above figures reflect the looseness of the time
standards more than what they show. The error is relative to the activity’s
own fractional ratio. In other words the disentangling ratio is 25 + 5 percent,
i.e. 20 to 30 percent. This is a margin of as much as + 20 percent error
compared to itself.

Work Sampling
Work sampling involves observing a portion or sample of the work activity.
Then based on the findings in this sample, statements can be made about the
activity. The time it takes to make an observation depends on what is being
observed. Many times, only a glance is needed to determine the activity, and
the majority of studies require only several seconds’ observation.
Three primary applications for work sampling are
1. Ratio delay to determine the activity-time percentage for personnel or
equipment. For example, management may be interested in the
amount of time a machine is running or idle.
2. Performance measurement to develop a performance index for
workers. When the amount of work time is related to the quantity of
output, a measure of performance is developed. This is useful for
periodic performance evaluation
3. Time standards to obtain the standard time for a task. When work
sampling is used for this purpose, however, the observer must be
experienced because he or she must attach a performance rating to the
observations.
The number of observations required in a work-sampling study can be fairly
large, ranging from several hundred to several thousand, depending on the
activity and desired degree of accuracy. Normally the desired level of
accuracy and the desired level of statistical confidence is specified in
advance, such as “the observed (estimated) percentage of time spent waiting
on customers should be within 3% of the actual value with 95% confidence.”
The minimum number of observations necessary to achieve this accuracy
and confidence an be computed by the equation (3)
Number of observations required = N = [z2p(1-p)]/e2 ---------- (3)
Where p is the proportion of observations during which the target activity is
performed, e is the maximum absolute error desired, and z = 1.65 for a 90%
confidence level, 1.96 for a 95% confidence level, and 2.33 for a 99%
confidence level.
Notice that the required sample size is affected by the actual proportion of
time, p, that the target activity is performed. Because this is not known in
advance, the sample size may be determined iteratively. An initial estimate
of the proportion of time spent on the target activity is made, and then a
preliminary sample size is derived.
In addition to sample size, we need to determine when and how often to
observe. Suppose we decide to take 1100 observations over the course of 22
days; this means we will take 50 observations per day. Within each day we
do not usually take the observations at uniform increments of time for at
least two reasons: (1) There may be some cyclic pattern of work, so that the
worker may do one activity for 10 minutes, then change to another for 10
minutes, and then change back to the original activity for 10 minutes. If the
observations are timed to be done every 20 minutes, the observer would
always see the same activity being done and conclude that 100% of the
worker’s time was spent on that activity. (2) A random observation pattern
makes it more difficult for workers to mislead the observer. For example, if
a worker has deduced that he is being observed every 20 minutes, he may
change what he is doing just before he expects an observation, so the
observer will see what the worker wants the observer to see.
Five steps are involved in making a work-sampling study:
1. Identify the specific activity or activities that are the main purpose for
the study. For example, determine the percentage of time that
equipment is working, idle, or under repair.
2. Estimate the proportion of time of the activity of interest to the total
time. These estimates can be made from the analyst’s knowledge, past
data, reliable guesses from others, or a pilot work sampling study.
3. State the desired accuracy in the study results
4. Determine the specific times when each observation is to be made.
5. At two or three intervals during the study period, recompute the
required sample size by using the data collected thus far. Adjust the
number of observation if appropriate.
The number of observations to be taken in a work-sampling study is usually
divided equally over the study period. Thus, if 500 observations are to be
made over a 10-day period, observations are usually scheduled at 500/10, or
50 per day. Each day’s observations are then assigned a specific time by
using a random number table.

Work sampling compared to time study

Work sampling offers several advantages:
 1. One observer may conduct several work-sampling studies
simultaneously.
2. The observer need not be a trained analyst unless the purpose of the
study is to determine a time standard.
3. No timing devices are required.
4. Work of a long cycle time may be studied with fewer observer hours.
5. The duration of the study is longer, which minimizes effects of short-
period variations.
6. The study may be temporarily delayed at any time with little effect.
7. Because work sampling needs only instantaneous observations, the
operator has less chance to influence the findings by changing his or
her work method.

Example 1. Premabai undertakes knitting of sweaters for various shops. She

has several helping hands who, besides knitting also carry out cleaning,
disentangling woolen thread, measuring and cutting, seeing and customer
contact activities. Hema, an enthusiastic industrial engineer, did an activities
sampling (work sampling) study and came up with the following data

Activity Number of Observations

Knitting 120
Cleaning 40
Disentangling 75
Measuring and Cutting 20
Sewing 20
Speaking to Customers 25

Total number of observations 300

Hema rated the help she had observed at 95 for the disentangling activity
and 100 for the knitting activity. If at the end of the four-day(36 work hours)
study, Hema found that the helping hand had disentangled 2.3 kg of woolen
thread and knitted a two meter length equivalent, what are the standard times
for these activities? Take total allowances at 25 per cent.

If Premabai gives the work of disentangling woolen thread to a helper for

four hours, how much wool should be disentangled?

Solution: Assuming that the total number of observations are adequate, the
ratios are:-
 Disentangling: (75/330) = 0.25

Knitting: (120/300) = 0.40

Which means, (0.25 x 36 h) = 9 working hours have been spent on

disentangling with an output of 2.3 kg at a pace of 95 percent rating.

Therefore, Normal time = (9 hr x 0.95)/2.4 kg = 3.72 hr per kg

Standard time = (Normal time) / (1 – allowances)

= (3.72)/ (1 – 0.25)
= 4.96 hr per kg
In 4 hours, the output should be, as per the standard, (4/4.96)kg = 0.806 kg

The ratio for knitting being 0.40 and rating being a 100:

Normal time = (36 x 0.40) h/2 meter = 7.2 hr per meter

Standard time for knitting = 7.2/(1-0.25) = 9.6 hr per meter

Activity
A retail store manager wants to use work sampling to study the activities of
her workers in the sports equipment department. The manager wants to
randomize both the days selected for observation and the times during the
days when observations occur. (a) During the next 50 days the manager
would like to select 10 days for observation. Use the random number to
determine which 10 of the 50 days should be selected for observation. (b)
On days when observation is performed, the manager would like to take 12
observations of the department during each two-hour period. Use the random
numbers to determine when the observations should occur for one of these
periods. Express the randomized observation times in terms of minutes after
the beginning of the period. In each part, arrange the observation days and
times in increasing order.
With that, we have come to the end of today’s discussions. I
hope it has been an enriching and satisfying experience. See
you around in the next lecture. Take care. Bye.