Lecture Fundamentals of operations management (4/e): Chapter 14 - Davis, Aquilano, Chase

Chapter 10 Work performance measurement, after studying this chapter you will be able to: 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,...

DAVIS F   O   U   R   T   H       E   D   I   T   I   O   N AQUILANO CHASE supplement 10 Work Performance Measurement © The McGraw-Hill Companies, Inc., 2003 PowerPoint Presentation by Charlie Cook 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  © The McGraw­Hill  Companies, Inc., 2003 S10–2 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  © The McGraw­Hill  Companies, Inc., 2003 S10–3 Work Methods and Design Aids Work Methods and Design Aids Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.1 S10–4 Flow Diagram and Process Chart of an Office  Flow Diagram and Process Chart of an Office  Procedure Procedure—Present Method* —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 Fundamentals of Operations  Management 4e  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 © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.2a S10–5 Flow  Flow  Diagram and  Diagram and  Process  Process  Chart of an  Chart of an  Office  Office  Procedure Procedure— — Present  Present  Method* 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 Fundamentals of Operations  Exhibit S10.2b Management 4e  © The McGraw­Hill  Companies, Inc., 2003 S10–6 Common Notation in Process Charting Common Notation in Process Charting Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.3 S10–7 Gilbreth’s Principles of Motion Economy Gilbreth’s Principles of Motion Economy Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.4a S10–8 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 Gilbreth’s Principles of Motion Economy (cont’d) Gilbreth’s Principles of Motion Economy (cont’d) Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.4b S10–9 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 Worker­ Worker­ Machine  Machine  Chart  Chart  for a  for a  Gourmet  Gourmet  Coffee  Coffee  House House Fundamentals of Operations  Exhibit S10.5a Management 4e  © The McGraw­Hill  Companies, Inc., 2003 S10–10 Worker­Machine Chart for a  Worker­Machine Chart for a  Gourmet Coffee House (cont’d) Gourmet Coffee House (cont’d) The customer, the clerk, and the coffee grinder (machine) are involved in this operation It required 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 © The McGraw­Hill  time The clerk worked 49 seconds, or 30% of the time The machine Fundamentals of Operations  Companies, Inc., 2003 was in operation 21 seconds, or 30% of the time Management 4e  S10–11 Exhibit S10.5b Activity Chart of  Activity Chart of  an Emergency  an Emergency  Tracheotomy Tracheotomy Source: Data taken from Harold E Smalley and John Freeman, Hospital Industrial Engineering (New York: Reinhold, 1966), p 490 Fundamentals of Operations  Exhibit S10.6 Management 4e  © The McGraw­Hill  Companies, Inc., 2003 S10–12 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  © The McGraw­Hill  Companies, Inc., 2003 S10–13 Types of Work Measurement Applied  Types of Work Measurement Applied  to Different Tasks to Different Tasks Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.7 S10–14 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 âTheMcGrawưHill ã Defining operator and machine delays separately Fundamentals of Operations  Management 4e  Companies, Inc., 2003 S10–15 Elemental Standard­Time Data Elemental Standard­Time 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 © The McGraw­Hill  fatigue allowances Fundamentals of Operations  Management 4e  Companies, Inc., 2003 S10–16 Predetermined Motion­Time Data Predetermined Motion­Time 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 FundamentalsofOperations Management4e âTheMcGrawưHill Companies,Inc.,2003 S1017 WorkSampling WorkSampling ã 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? FundamentalsofOperations Management4e âTheMcGrawưHill Companies,Inc.,2003 S1018 WorkSampling(contd) WorkSampling(contd) ã Determining the Required Number of Samples: N Z p(1 p) E2 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 © The McGraw­Hill  Fundamentals of Operations  Companies, Inc., 2003 E = Absolute error that is desired Management 4e  S10–19 Work Sampling (cont’d) 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 © The McGraw­Hill  Fundamentals of Operations  Companies, Inc., 2003 Management 4e  S10–20 Assignment of Numbers to  Assignment of Numbers to  Corresponding Minutes Corresponding Minutes Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.8 S10–21 Determination of Observation Times Determination of Observation Times Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.9 S10–22 Observation Schedule Observation Schedule Fundamentals of Operations  Management 4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.10 S10–23 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  © The McGraw­Hill  Companies, Inc., 2003 S10–24 ... product Fundamentals? ?of? ?Operations? ? Management? ?4e  © The McGraw­Hill  Companies, Inc., 2003 S10–3 Work Methods and Design Aids Work Methods and Design Aids Fundamentals? ?of? ?Operations? ? Management? ?4e ... Corresponding Minutes Fundamentals? ?of? ?Operations? ? Management? ?4e  © The McGraw­Hill  Companies, Inc., 2003 Exhibit S10.8 S10–21 Determination? ?of? ?Observation Times Determination? ?of? ?Observation Times Fundamentals? ?of? ?Operations? ?... –Predetermined motion-time data –Work sampling Fundamentals? ?of? ?Operations? ? Management? ?4e  © The McGraw­Hill  Companies, Inc., 2003 S10–13 Types? ?of? ?Work Measurement Applied  Types? ?of? ?Work Measurement Applied