Work Measurement
Work Measurement
and its efficiency. The objective is to determine the workload in an operation, the time that is required, and the number of workers needed to perform the work efficiently. Work measurement helps to determine the time spent performing any process and offers a consistent, comparable methodology for establishing labor capacities. Work measurement can be extremely effective at informing supervisors of the working times and delays inherent in different ways of carrying out work. The purpose of a measurement method is to achieve full coverage of the work to be measured. A good work measurement system has many benefits. It helps to reduce labor costs, increase productivity, and improve supervision, planning, scheduling, performance appraisal, and decision making.
data. The disadvantage of work sampling is that it requires thousands of samples to establish an accurate measure for each step. The time study method uses continuous and snapback approaches to record the elapsed time of a task. The snapback approach requires a stopwatch with a reset button that allows the observer to read and record the time at the end of each work element then reset (snapback) the watch to zero. Although popular, the time-study method is subjective and relies heavily on the experience of the time-study analyst. A computerized data collector provides more accurate timing than the stopwatch. However, converting actual time to the expected or normal time remains a problem. The predetermined motion/time systems method is based on the premises that all work consists of basic human motions and that times can be assigned to these motions if they are defined and classified in a systematic way. A film or videotape records what a job entails and how long it takes. This technique is used most frequently in studying high-volume settings such as a workstation or an assembly line. An observer measures a job by watching and analyzing it into its basic constituent motions. This method requires substantial training and practice to acquire and maintain accuracy. It enables all types of tasks to be assigned time/duration values that can then be extended into cost values. The results are not easy to communicate, but when properly executed, this method yields very accurate times.
Experts have cited a need for a measurement program that gives an equal weight to quality as well as productivity. If quality is included in the ratio, output may have to be defined as something like the number of defect-free units of production or the number of units which meet customer expectations or requirements. The determination of when productivity measures are appropriate performance measures depends on two criteria. The first is the independence of the transformation process from other processes within the organization. Second is the correspondence between the inputs and outputs in the productivity measurement process.
PRODUCTIVITY INDEX
Since productivity is a relative measure, for it to be meaningful or useful it must be compared to something. For example, businesses can compare their productivity values to that of similar firms, other departments within the same firm, or against past productivity data for the same firm or department (or even one machine). This allows firms to measure productivity improvement over time, or measure the impact of certain decisions such as the introduction on new processes, equipment, and worker motivation techniques. In order to have a value for comparison purposes, organizations compute their productivity index. A productivity index is the ratio of productivity measured in some time period to the productivity measured in a base period. For example, if the base period's productivity is
calculated to be 1.75 and the following period's productivity is calculated to 1.93, the resulting productivity index would be 1.93/1.75 = 1.10. This would indicate that the firm's productivity had increased 10 percent. If the following period's productivity measurement fell to 1.66 the productivity index of 1.66/1.75 = 0.95 it would indicate that the organization's productivity has fallen to 95 percent of the productivity of the base period. By tracking productivity indexes over time, managers can evaluate the success, or lack thereof, of projects and decisions.
IMPROVING PRODUCTIVITY
Productivity improvement can be achieved in a number of ways. If the level of output is increased faster than that of input, productivity will increase. Conversely, productivity will be increased if the level of input is decreased faster than that of output. Also, an organization may realize a productivity increase from producing more output with the same level of input. Finally, producing more output with a reduced level of input will result in increased productivity. Any of these scenarios may be realized through improved methods, investment in machinery and technology, improved quality, and improvement techniques and philosophies such as just-in-time, total quality management, lean production, supply chain management principles, and theory of constraints.
A firm or department may undertake a number of key steps toward improving productivity. William J. Stevenson (1999) lists these steps to productivity improvement:
Develop productivity measures for all operations; measurement is the first step in managing and controlling an organization. Look at the system as a whole in deciding which operations are most critical, it is over-all productivity that is important. Develop methods for achieving productivity improvement, such as soliciting ideas from workers (perhaps organizing teams of workers, engineers, and managers), studying how other firms have increased productivity, and reexamining the way work is done. Establish reasonable goals for improvement. Make it clear that management supports and encourages productivity improvement. Consider incentives to reward workers for contributions. Measure improvements and publicize them. Don't confuse productivity with efficiency. Efficiency is a narrower concept that pertains to getting the most out of a given set of resources; productivity is a broader concept that pertains to use of overall resources. For example, an efficiency perspective on mowing the lawn given a hand mower would focus on the best way to use the hand mower; a productivity perspective would include the possibility of using a power mower.
As a cautionary word, organizations must be careful not to focus solely on productivity as the driver for the organization. Organizations must consider overall competitive ability. Firm success is categorized by quality, cycle time, reasonable lead time, innovation, and a host of other factors directed at improving customer service and satisfaction.