NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

_______________________________________________________________________ PRODUCTIVITY TECHNIQUES PAPER III _______________________________________________________________________________
PRODUCTIVITY MEANING, MEASURES AND SIGNIFICANCE PT-1.1

_______________________________________________________________________________
By Edited By PROGRAMME LEADER D.R. KIRAN Y. SATYANARAYANA M.M. JACOB Formerly Instructors Former-Director (SD) Formerly Director for Managers Supervisory Development World Bank Project National Productivity Council Tanzania Chennai 600098. ______________________________________________________________________________ Instructional Objectives : After going through the lessons, the learner should be able to : i. Develop the concept of productivity and the difference between productivity and production; ii. Identify the concepts of input, out and productivity in different situation the industry, agriculture and training; iii. Develop the concept of increase in productivity and understand underlying principles.

Teaching Points : 1. Concept of Productivity distinction between production and productivity 2. Inputs and Outputs explanation with reference to different situations. 3. Measure of Productivity 4. Concept of increase in Productivity 5. How to increase Productivity i.e. principles behind the methods of increasing productivity quantitative illustrations.

Introduction : Productivity is the topic of the city. Not a single day passes without our coming across some statement or the other in our daily newspapers, appealing the workforce to step up productivity and that productivity is the backbone of our economic growth. What is this productivity and how to step it up? Let us try to understand the concept of productivity.
______________________________________________________________________________________

T.P.1 CONCEPT OF PRODUCTIVITY - DISTINCTION BETWEEN PRODUCTION AND PRODUCTIVITY ______________________________________________________________________________ 1. Productivity means goods and services produced in relation to the resources utilized in producing the same. Thus, it is ratio between the output of a certain process and the input of the resources employed. We can express this as a formula given by Output of process
=

Input of resources ______________________________________________________________________________ productivity 2. One should not confuse productivity with production, which is merely the quantum of output irrespective of the resources used. For example in a certain forge shop there are 10 forging machines producing, similar components. If the output of each machine is 100 pieces per day the total __________________ of the forge shop is 1000 pieces per day. ______________________________________________________________________________ production mean the same. 3. Thus, in general, we see that the words production and _____________________________________________________________________________________ output 4. We can increase, production by merely increasing the resources without consideration to the cost. For example, the production of the forging components from the shop cited in frame 2 can be increased from 1000 pieces to 1500 pieces per day by increasing the number of machines from 10 to 15. Similarly if 10 operations can assemble 100 components per day and if we increase the number of operations to 20 , then the ____________ can be increased by 100%. ______________________________________________________________________________ production 5. But the increase in production cited above need not necessarily increase the productivity. Productivity is not merely production but as seen from frame 1, it is the ratio of output to input. In the example cited in frame 4, the production or output is increased by 50%, but so also the input, i.e. machinery have increased by 50% . Thus, the ________________ remains same, since it is a measure of the output for each input resource or, in other words, the production per machine in this case. ______________________________________________________________________________ productivity

6. In 100 men of group-A can lay 5 kms. of road per week and if 150 men of group B can lay 6 kms. of a similar road per week, the production of group-B is higher that group-A. But the ________________ of group-A is higher than that of group B. Can you show your calculations to prove this statement? ______________________________________________________________________________ Productivity Productivity of group-A 5 kms. = = 50 mtrs./man-week 100 6 kms. While Productivity of group B = 150 = 40 mtrs./man-week

7. In all those situations, which involve a conversion process, whether it is manufacturing or service, or agriculture or even education this concept of _____________ is applicable. ______________________________________________________________________________ Productivity ______________________________________________________________________________ T.P.2 INPUTS AND OUTPUTS; EXPLANATION WITH REFERENCE TO DIFFERENT SITUATIONS
______________________________________________________________________________________

8. As explained above (frame 1), the ________________ are the resources employed in the process. ______________________________________________________________________________ Inputs 9. Refer to the following relationship diagram (Fig.1) for various aspects involved in a production process.

MEN MACHINES MATERIALS MONEY MANAGEMENT

PRODUCTION PROCESS

PRODUCTS AND SERVICES

COMPARE AND RECTIFY

STANDARD OBJECTIVES

Fig-1

This is an illustration from the industrial situation, wherein the resources are used in the production of products and /or provision of services to the customer. In this example the inputs are identified by _________________ , ________________ , ____________________ , _________________ , & _____________________ . ______________________________________________________________________________ Men, Machine, Materials, Money & Management. 10. From Fig.1 the output are identified by ______________ & ________________ . ______________________________________________________________________________ Products & services 11. In an automobile garage illustrated in figure given below, identify the inputs and output.

MEN SPARES MATERIALS TOOLS GENERAL MACHINES WELDING EQUIPMENTS MONEY MANAGEMENT

MAINTENANCE AND REPAIR

SERVICES

Fig-2
____________________________________________________________________________________

Inputs are : Men, Materials, Spares, Tools etc., Output is : Services 12. In an agricultural from illustrated in figure 3 given below , identify the inputs and output

MEN PRODUCE SEEDS IMPLEMENTS FERTILIZERS LAND FARMING

Fig-3
______________________________________________________________________________________

Inputs are : Men, Seeds, Implements, Fertilizers and Land Out is : Produce, represented by the bags of grains.

13. In an educational situation, where the lecturer uses his expertise and knowledge sided by visual aids to train and enlighten the students on the subject. a. The inputs b. The output is c. The process is
___________________________________________________________________________

a. b. c.

Expertise and knowledge of the lecturer, visual side etc., The enlightenment of the students The teaching

14. In Fig.1 (frame 9), the main purpose of having standard objectives is to ensure that the products and services are as per the drawings or specifications or objectives and that comparison and rectification is possible before it is too late. For example, in a production shop where the drawings and gauges are used, the standards are given by ______________ while the comparison is made by the use of _____________ . ______________________________________________________________________________ drawings gauges 15. Consider a case of a lathe machine turning out precision products. Some of the related terms in the illustration are : 1. 2. 3. 4. 5. 6. 7. 8. Lathe machine Lathe turning operation Lathe Operator Unturned raw castings Turned component from castings Go-No go gauge Tool grinding Product drawing

Classify each of the above terms under the categories listed below (for reference see Fig-1) A. Inputs B. Process C. Output D. Standard E. Compare F. Rectify ______________________________________________________________________________ A. B. C. D. E. F. 1,3,4 2 5 8 6 7

_____________________________________________________________________________________

T.P. 3 MEASURES OF PRODUCTIVITY ______________________________________________________________________________ 16. The unit used for measuring productivity (frame 5) can either be in terms of output per man or output/man hour. In fact, there can be hundreds of such units in which productivity can be expressed, depending upon the situation. In such cases, only a single input is taken into consideration. For example, the unit like return on investment or fuel consumption, viz. kms. per litre considers only the major ______________ item, the fuel. Input 17. Since productivity is expressed by the ratio output/input, it is essential that both the inputs and outputs are to be expressed in the same unit to get as absolute measure of productivity. The most convenient was of expressing this is by giving money value to each input and output. That is when the productivity can be expressed as the output in rupee value. Hence, it is difficult to obtain a single satisfactory measure of ________________ . ______________________________________________________________________________
.

productivity 18. In view of this obstacle it is very difficult to express productivity in terms of all the inputs satisfactorily. Therefore, the concept of Increase in productivity, is used rather that productivity itself. This is done by comparing the of a certain resource or a group of resources, before and after effecting a certain improvement or change. ______________________________________________________________________________ Productivity
_____________________________________________________________________________________

T.P. 4 CONCEPT OF INCREASE IN PRODUCTIVITY

_________________________________________________________________________________

19. If an operator is able to increase his output from 100 pieces to 120 pieces per hour, his productivity is said to have increased by ________________ . . 120-100 100 ______________________________________________________________________________ T.P. 5 HOW TO INCREASE PRODUCTIVITY ______________________________________________________________________________ 20. Coming to the basic definition : Output Productivity = Input

x 100 = 20%

If we compare this with a simple arithmetic expression of a A = C that A can be Increased by any of the methods : a) Increase the numerator (B) with no change in denominator (C);

we know from arithmetic

b) Decrease the denominator (C ) with no change in numerator (B); c) Increase the numerator (B) substantially with marginal increase in the denominator (C) d) Decrease the denominator (C) substantially with marginal reduction in the numerator (B) ; e) Increase the numerator (B) while decreasing the denominator (C ); Any of the above five methods, if adopted to our definition, achieves increase in ____________

Productivity 21. If the output of a machine is increased from 200 pieces to 220 pieces per hour without changing any of the inputs, then its productivity is said to have increased by ____________%.. This is reflected by method _________________ given in frame 20.

220-200 200

= 10%

22. In a press shop, the weight of strip is reduced from 20 kgs. Per 1000 blanks to 18 kgs. Per 1000 blanks as per the die modification shows below. It is presumed that the die modification has not cost anything.

(i) (ii) Fig-4 In this illustration the productivity has increased by ___________________ . . .

This is reflected by the method _________________ discussed in frame 20. ______________________________________________________________________________

1000 1000 18 20 b

1000 20

x 100 = 11.2%

23. The output of a certain operation is increased by 25% by providing a certain fixture on the machine which has increased machine cost by 10%. The productivity of the machine is said to have increased by _________________ . . This is reflected by the method _________________ discussed in frame 20. ______________________________________________________________________________ 100+25 Increase in productivity = 100+10 c

-1 = 0.136 or 13.6%

24. In a certain machine shop an effective preventive maintenance programme has been introduced. By this the total operation and maintenance cost of the machine shop is reduced by 20%. Nevertheless the preventive maintenance programme needed regular stoppages of machines reducing the total output by 5%. Here the productivity of the machine shop is said to have increased in spite of the output reduction by ____________ .This is reflected by case __________________ of frame 20. _____________________________________________________________________________

100-5 1 = 0.1875 or 18.75% 100-20

* d

25. On a certain machining operation, work study has been carried out which has resulted in not only a 10% increase in the output of the operator per hour, but also reduced the output cost by 5%. The productivity in the illustration is said to have increased by - %. This is reflected by method of frame 20. ______________________________________________________________________________ 100 + 10 - 1 = 0.158 =n 15.8% * c 100-5 ______________________________________________________________________________ CRITERION TESTS 1) What is the formula for productivity? 2) What is the difference between production and productivity ? 3) If 6 similar presses of group A can produce together 60000 blanks per shift, and 10 similar presses of group B can produce 80000 blanks per shift, whose productivity is higher ? Group A or Group B? Show your calculation. 4) In a machine shop where drawings and gauges are used, ___________ give the standards, while ________________________ are the tools for the comparison. 5) What are the 5 methods by which productivity can be increased by changing either or both outputs and inputs.

6) The output of a certain machine is increased by 20% by increasing an additional 5% cost in the inputs. What is the overall increase in the productivity? ______________________________________________________________________________ ANSWERS ; 1) Productivity = Output Input REFERENCS Frame 1

2) Production is the actual quantum of work done or out put achieved without reference to the input while the productivity is a measure of the output for each unit of input resources. 3) Productivity of Group A = 60000 = 10000 pcs/mch/shift 6 Productivity of Group B = 80000 = 8000 pcs/mch/shift 10 Hence productivity of group A is higher than that of group B. 4) Drawings Gauges 5) a. Increase the output with no change in input. b. Decrease the input with no change in output. c. Increase the output substantially with marginal increase in input. d. Decrease the input substantially with marginal decrease in output. e. Increase the output with decrease in input. 100 + 20 - 1 = 1.143 1 = 0.14.3% 100 + 5 REFERENCES ; 1) A text Book of Workstudy 2) Introduction to Workstudy 3) Industrial Engineering Handbook : By D.R. Kiran : Edited by ILO Geneva : Edited by HB Maynard : Edited by ILO Geneva 14 6

20

4) Higher Productivity in Manufacturing Industries 5) The Management of Productivity

: By J.E Farady

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III
SHARING THE GAINS OF PRODUCTIVITY By D.R. KIRAN Formerly Instructors for Managers World Bank Project Tanzania PT 2.1 PROGRAMME LEADER M.M. JACOB Formerly Director Supervisory Development National Productivity Council Chennai 600098.

Instructional Objectives : After going through the lesson, the trainer should be able to :List down the basic needs of human beings Explain the meaning of the standard of living Relate increase in productivity to national economic growth Identify techniques of sharing the gains of productivity. Teaching Points : Basic needs of man Productivity and standard of living how they influence each other Gross National Product definition and explanation How productivity influences national economy Sharing the gains of productivity direct and indirect sharing Method of sharing the benefits Increased productivity and sociological factors the factor of resistance of change Worker participation as a solution to the resistance to change.

Introduction : Higher productivity is not an end in itself, but a means of promoting social progress and strengthening the economic foundation of a nation. Again , the main contribution to the higher productivity is not only by the management and the proprietors, but also to a large extent by the work force, without whose cooperation, no productivity improvement measures can successfully be implemented. The most logical way of getting their cooperation is by a sincere policy of sharing the benefits of productivity by all contributors. With these points in mind, this lesson signifies the role of productivity tin strengthening the social structure of a nation and how best it can be achieved by an equivocal policy of sharing the benefits.

T.P. 1 BASIC NEEDS OF MAN ______________________________________________________________________________ 1) To exist to this world, a man has to satisfy his basic needs first, the foremost of which is to satisfy his hunger. Hence, the first requirement for a minimum decent living is _________________ . food 2) After satisfying his hunger, he needs enough clothes to permit bodily decency and protection from climate. Thus, his second basic need is __________________ . clothing 3) Man needs a place to live in, which is of a quality high enough to give protection and healthy condition. Thus, the third basic need is __________________ . shelter for housing 4) He also needs sanitation and medical care to give protection against disease and prompt treatment in illness. Thus, the fourth basic need is ______________________ . health 5) He needs security against robbery or violence, against loss of the opportunity to work etc. Hence the fifth basic need is __________________ . security 6) Mankind needs education and training for every men, woman and child to develop their talents and abilities. Thus, the sixth basic need is ____________________ .

 education 7) Besides the above, other essential services also are needed, like drinking water, transportation etc. Hence, the seventh basic need is __________________ . essential services 8) To summarise, the seven requirements for satisfying the basic needs of man to achieve a comfortable living are : a) b) c) d) e) f) g) ___________________ ___________________ _____________________ _____________________ _____________________ _____________________ _____________________ a) food b) clothing c) shelter (housing) d) health e) security f) education, and g) essential services

T.P. 2 PRODUCTIVITY AND STANDARD OF LIVING 9) The standard of living of a representative family in different countries of the world varies greatly from country to country. Today, inspite of the significant technological advancement and inspite of steep raise in the wage structure, ordinary man in many parts of the world can hardly be able to satisfy his basic needs. Based on the above, state if the following statement is true or false. The standard of living of a person depends upon his salary. The fact that the wages of an unskilled labourer has increased from Rs.5/- per day in 1970 to Rs.10/- per day in 1984, is a proof that his standard of living has definitely increased. false 10) The term standard of living means the degree of material well being available to a person or a class or community which is necessary for sustaining and leading a comfortable life. State whether you agree with this statement or not (I agree / I do not agree ) I agree

11) In other words, a countrys standard of living depends on the total value of goods and services produced in that country and also on the number of people living there. Thus the 2 factors controlling standard of living are a) ____________________ b) ____________________ A) The total value of goods produced and services offered. B) The total population. T.P. 3 GROSS NATIONAL PRODUCT 12)The first factor in frame 11 is also called as the Gross National Product or GNP. The other words, _________________ is defined as the total value of goods produced or services offered in currency terms per year in that country. Gross National Product 13) When we say Gross National Product per capital we mean the total value of goods produced and services offered per head that is expressed in terms of an average value per person. In other words the term Per Capita directly relates to, a) b) c) d) e) a 14) We have seen in frame 11 to 13 that the standard of living depends upon the Gross National Product per capita. Hence, we can express the same in the following formula : Standard of living = A B Where A = ________________________________ B = ________________________________ A = Gross National Product of the country B = Total population of the country the population of the country the total area of the country in sq.kms. the total number of industries in the country the total number of persons in the high-income group the birth rate of the country.

15) The Gross National Product per capita of a country depends upon, and in general is promotional to the productivity . Also presuming that the population of a country is constant at any given time, confirm if you agree with the following statement : The standard of living of a country is proportional to the national productivity ( I agree / I do not agree ) I agree

16) As a conclusion, confirm if the following statement is True or False. The greater the amount of goods and services produced per capita in a country, the higher the standard of living. True T.P 4 HOW PRODUCTIVITY INFLUENCES NATIONAL ECONOMY 17) In lesson 1, we have given a formula for productivity. Do you remember it? Choose from the following : Output a) productivity = = Input Increase in Output b) Productivity = = Increase in Input Input c) Productivity = Output d) e) Productivity Productivity = = Input x Output Input Output

18) In other words, we can produce more at the same cost or produce the same at reduced cost, by increasing our __________________ Productivity

19) If more is produced at the same cost or the same is produced at reduced cost, there is a gain to the community as a whole which can be used by all members of the community to acquire more and better goods and services, thus improving their standard of living. From this statement confirm whether the following statement is true or false. Higher Productivity contributes, to a large extent, to higher standard of living. (True / False) True

20) Based on the explanation given in frame 19, the following reaction chart can be drawn, Fill in the blanks by selecting appropriate words from set of answers given below the chart. By increasing our ______________________________________ (a)

we can get higher ______________________________________ (b) at reduced ____________________________________________ (c) which increases the Gross _______________________________ (d)

by which the community can acquire more and better_____________ and _________________ (e)

which consequently result in higher _________________________ (f) 1. costs 4. National Product 2. Outputs 5. goods and services 3. standard of living 6. productivity Reaction Chart

* a6

* b2

* c1

d4

* e5

* 13

21) The following table gives the gross national (domestic) product per head of population as well as the standard of living expressed as the average income per head for the year 1955, for 7 western countries. It is presumed that all other factors like inflation rate, cost of living etc., are incomparable terms. Now rank the countries in terms of their GNP and Standard of Living. Gross National Product (GNP) In per head 3,300 2,460 1,960 1,780 1,470 1,310 1,040 Rank Standard of Living in per Year / head 1,033 787 655 566 517 500 315 Rank

Country

United States Sweden Canada Australia United Kingdom Finland Italy

----------------------

----------------------

( * To be filled in by the student ) ( Source The Management of Productivity by JE Faraday ) 22) Do you now agree that the above table proves our point that the standard of living is proportional to GNP (GDP) and hence to Productivity? ( I agree / I do not agree ) I agree

T.P 5 SHARING THE GAMES OF PRODUCTIVITY 23) Since it is the Industrial workers that contribute a lot to these benefits of increased productivity, they have to be motivated for achieving this higher productivity. The motivation comes only if they have the satisfaction of getting some share of these benefits. Thus a sincere policy to share the benefits rationally among all contributing personnel including management and workforce is essential in achieving higher ___________________ . Productivity 24) Higher productivity results in higher profits to the company. A policy of sharing these profits among all employees as well as the shareholders in a rational proportion is a ________________ means of sharing the benefits of productivity. ( direct / indirect ) Direct

25) The impact of productivity is felt as a chain reaction, The higher productivity reduces the cost of production and hence the price which increases the demand for the companys product. This increases profits of the company, which if shared amicably among the workers would motivate them enough to further increase the productivity. This chain reaction results in ___________________ means of sharing the benefits of productivity ( direct / indirect ). Indirect

26) This chain reaction can also be represented by the following diagram. Fill in the blanks of the chart by selecting appropriate words from set of answers given below the diagram. Higher .. (a)

The workers in turn are _______________ (g) to strive for

Reduces the cost of ______________ (b)

Which results in Increased ________ (f) for the workers

Resulting in reduced ______________ ( c )

Resulting in increased ___________ (e) for the company

Which increases the ___________ (d) for the product

1. productivity profits

2. selling price

3. production

4.

5. demand

6. motivated

7. earnings

*a1

* b 3* c 2

*d5

* e4

* f7 * g6

T.P. 6 METHODS OF SHARING THE BENEFITS 27) Any increased productivity due to the increased efforts of the workers should be compensated by increased earnings of workers. Hence it is fair that the workers are paid incentives in relation to the extra effort put in during the shift. Thus _________________ forms the first method of sharing the benefits of productivity. Incentive 28) In addition to the increased daily earnings, the overall profit may also be directly shared among all the workers in an agreed proportion in the form of annual bonus. Thus, _____________ forms the second method of profit sharing which results from increased productivity. Bonus payment 29) If a certain amount of increases in the profits can be identified with extra efforts of a certain individual or group periodic cash awards can be given in an acceptable manner. Thus ____________ ____________ forms the third method of profit sharing. Cash awards

30) Productivity benefits also can be shared amicably by (a) giving non cash incentives like better housing, paid holidays, etc. (b) improving the working conditions (c) providing promotions. These methods of sharing productivity benefits can be grouped into : financial non-financial (tick against appropriate answer) non-financial

31)

To summarise, the common methods of sharing the benefits of productivity are : 1. __________________ 2. __________________ 3. __________________

A. Cash :

B. Non cash

1. __________________ 2. __________________ 3 __________________ A. 1. incentives 2. bonus

3. cash awards

B. 1. better housing, paid holidays, etc.

2. bettering of working conditions 3. providing promotions

T.P. 7 INCREASED PRODUCTIVITY AND SOCIOLOGICAL FACTORS i. One of the biggest non-monetory factor creating difficulties in obtaining active co-operation of the workers is the fear of unemployment. An average worker fears that if he increase his productivity either he or his colleagues would be treated as redundant and would be retrenched. Do you agree with the above fear? ( I agree / I do not agree )

I do not agree 33. To alleviate such fears, the management should always give preference for increasing the productivity by recommendations that do not involve any manpower reduction. In other words as far as possible, the productivity improvement studies should not result in _______________ (choose the right answer). a) b) c) d) e) Saving in material cost Increasing the machine utilization Reducing the machine breakdown costs A reduction in existing manpower Reducing inventory costs a reduction in existing manpower

34. In manpower redundancy in some jobs becomes an inevitable aresult of productivity improvement, preference should always be given to employ the ___________________ (displaced workers / new recruits ) to fill in the vacancies in other departments.

displaced workers

T.P. 8 WORKER PARTICIPATION AS A SOLUTION

________________________________________________________________________________
35. Even with guaranteed employment, there is always a factor of resistance to change . Since the resistance is mostly due to ignorance factor, all concerned should be fully explained on all aspects of the change before it takes place. Based on this, state whether you agree with the following statement or not. Any change should be made overnight, before the workers have the time and opportunity to oppose it. ( I agree / I do not agree ). _____________________________________________________________________________ I do not agree

36. Another factor that helps in quickj acceptance of a change, is to make the concerned workers participate fully in the discussions and decisions that precede the change. The manner in which this _________ of the worker is done helps in quick implementation of the change.

participation 37. Since it is not possible to involve each and every worker of many cases, their representative should be properly selected and trained fully in the techniques of increasing productivity so that they will be able to explain themselves to their colleagues and other workforce and also use their knowledge to protect the interests of the workforce. Do you agree that this procedure will aid in successful implementation of productivity studies ? ( I agree / I do not agree ) _____________________________________________________________________________ _ I agree

PREFERENCES : A Text Book of Workstudy The Management of Productivity National Income Analysis : : By D.R. Kiran : By J.E. Paraday

By C.L. Schultze By MVV Raman, National Productivity Council, New Delhi.

Higher Productivity In Manufacturing Industries : Introduction to Work Study :

By I.L.O., Geneva.

CRITERION TESTS An increase in the money wages earned by a worker over a period of time is a clear indication that his standard of living has also increased ( True / False ) The extent to which the material needs of the population of a country is met is a measure of ______________ . Define the concept of Gross National Product. The Standard of Living is directly related to ___________________ . Higher productivity contributes to higher standard of living ( True / False ) Sharing the gains of productivity is grouped in two categories. They are (a) __________________________ (b) __________________________ List of common methods of sharing the benefits of productivity.

The workers resistance of change can be overcome by the scheme known as _______________ ______________________ .

ANSWERS False Standard of living Gross National product is defined as the total value of goods produced or service offered in currency terms per year in a country as a whole. GNP of the country --------------------------------------------Total population of the country

Standard of Living

True a) Financial b) Non-financial

The common methods of sharing the benefits are : a) Cash i. Incentives ii. Bonus iii. Cash awards b) Non-cash i. Non-cash Incentives like housing, health care, etc. ii. Bettering of working conditions iii. Providing promotions workers, participation in Management

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III FACTPRS INFLUENCING WORK CONTENT AND PRODUCTIVITY
By D.R. KIRAN Formerly Instructors for Managers World Bank Project Tanzania

P.T 3.1

PROGRAMME LEADER M.M. JACOB Formerly Director Supervisory Development National Productivity Council Chennai 600098.

Instructional Objectives : After going through the lesson, the trainer should be able to :Distinguish between the basic work content and excess work content in the production of an item Point out the origin and anatomy of various factors that tend to and ineffective time and reduce productivity. Develop an outlook of viewing every factor critically and identify the causes for the loss of productivity. Teaching Points : Work content in producing a product of a component the unit for this work content. Concept of basic work content Excess work content due to imperfect design and specifications factors and illustrations Excess work content added due to inefficient methods of manufacture or process factors and illustrations. Excess work content due to factors within the control of management factors and illustrations Excess work content due to factors. Within the control of the worker factors and illustrations.

T.P. 1 WORK CONTENT IN PRODUCING A PRODUCT

1.Every product or component has an inherent man-machine time required to produce it. It is called the work content. In other words, the work time in the product required to produce it, is called the ____________ ____________________ . Work content

2.To produce an item either the man or the machine or both would be required to work for certain time. If a man works for one hour the unit of this work is called a man-hour. In other words, if 10 persons are required to work together for 20 hours to build a certain wall, the work content in building the wall is 200 man-hours. Thus, man-hour, is a unit of measure for the ____________ ___________ . Work content 3.If a machine works for 30 minutes to produce a single component, the work content in producing this component by the machine is 0.5 machine-hour. Thus, machine-hour is also a unit of measure for the _______________ ______________ . Work content

T.P. 2 CONCEPT OF BASIC WORK CONTENT

4.Work content to produce a component can also be called the basic work content. The basic work content relates to the ideal situation when the specifications are perfect and the methods of manufacture are optimum. Thus, the ______________ _______________ ________________ is the absolute minimum work content theoretically required to produce one unit of the product. Basic work content 5.As we are generally aware that the perfect designs and processes may not be achieved and some excess work content is added due to imperfections in the design in an excess of the basic work content. This additional work content is called ______________ _____________ ________________ Excess work content

T.P. 3 EXCESS WORK CONTENT DUE TO IMPERFECT DESIGN & SPECIFICATIONS

6.It is a very common situation in industry where the design of a product is done without proper and complete knowledge of the functional aspects of the design features and sometimes where the material availability situation or the process know-how situation has changed over the passage of time. These factors result in imperfect design and specifications. In accordance to the definitions given above ( frames 4 & 5) this situation con tributes to ________________ (basic work content / excess work content ). Excess work content

7.The product of its components may be so designed that it is impossible to use the more economical processes or methods of manufacture. This applies especially to the metal working industries and more particularly where large scale productions is undertaken ( e.g. a sheet metal part may be also designed that it has to be cut out and riveted or welded instead of being pressed in one piece ). This situation is an example of _________________________ ( basic work content / excess work content added due to imperfect design) Excess work content added due to imperfect design

8.Excessive variety of products or lack of standardization of components may result in smaller batches of production and may have to be done on slower general purpose machines. This is an example of _____________________ ( basic work content / excess work content added due to imperfect design) Excess work content added due to imperfect design

9.Many times over quality standards would have been specified in the product design. For example, specifying close tolerances to certain dimension without functional justifications which will require additional precision machining, besides use of costly machinery and control systems. This is an illustration of _____________________ ( basic work content / excess work content added due to imperfect design)

excess work content added due to imperfect design 10.The components of a product may be so designed to have excessive amount of material to be removed to bring to their final shape. Consider an example shown in the figure, which represents a certain component designed to produced by turning out of 500 dia meter bas. Here the work to be done for the excessive material removal is an example of excess work content added due to ____________________ , __________________________ .

Imperfect design 11.The first step to words raising productivity and lowering the cost of the product is therefore to eliminate as far as possible all the design and specification features that are likely to cause ______________________ _________________ ________________________ . Excess work content
T.P. 4 EXCESS WORK CONTENT DUE TO INEFFICIENT METHODS OF MANUFACTURE OR PROCESS 12.It is also a common situation in industry, where inefficient methods of manufacture are specified in the process itself.

This wrong selection can result in _____________ ____________________ _____________________ due to inefficient method of manufacture or process. Excess work content 13.In a machine shop, a small component is being specified to be turned on a large centre lathe, even though their exists a small capstain lathe on which the component could have been done faster. This worng selection has hence resulted in _____________________ ______________ _______________ added and due to _________________ _________________ __________ ____________________ . Excess content Inefficient method of manufacture 14.A certain pressed component as indicated below is obtained by first producing the blank on 45T press and then punching out the three holes on a separate 10 T press. This is an example of wrong design of the tool which could have been replaced by a progressive die to get the component in a single operation.

The former thus is an example of ______________________ added to worn process due to wrong design of tools.

excess work content 15.In the process is not operating properly with correct speed, feed, temperature, etc., this necessitates additional work to be performed resulting in lower rate or production and hence cause _______________________ ___________ ___________________ added due to ____________________________________________ . Excess work content inefficient method of manufacture or process 16.If the layout of plant is unsuited to the smooth flow of material to various work stations it results in excessive materials handling and consequently result in ____________________ added due to ______________________________. Excess work content inefficient method of manufacture or process

17.The above are the factors which are inherent in the design or the product as well as the specification of the process and hence are not generally within the control of workers.

T.P. 5 EXCESS WORK CONTENT DUE FACTORS WITHIN THE CONTROL OF MANAGEMENT 18.There are also other factors which are not necessary due to the design of product or process, but due to various factors which are within the control of the management. These factors add ineffective time to the total production time for the product, thereby causing ________________ ___________________ __________________ .

Excess work content 19.The excessive product variety under production as a result of using market policy adds idle time due to short runs of each type of product. This situation causes ___________________ due to factors within the control of management. Ineffective time

20.Frequent design changes frequent stoppage work and rework increase again the idle time. This situation is again due to wrong marketing policy and causes _____________________ due to factors within the control of ______________________________ . Ineffective time Management 21.If the production planning and control systems are not properly followed, the idle time for the men and machines will increase and adds to the ________________________ due factors _______________________ . Ineffective time within the control of management 22.Improper inventory control research in frequents stock outs. This causes the machine stop pages due to the material being not available at right time to the right machines in the right quantities. This adds to _____________________ ____________________ added due to ________________________ __________________ ______ ______________________ _________ _________________

Ineffective time actors within the control of management 23.Improper maintenance policy causes frequent plant breakdowns and machine stoppages. This is another major factor within the control of __________________ added to the ___________________ . Management Ineffective time 24.If the plant and machinery are allowed to continue to work in bad condition, due to absence of an effective preventive maintenance policy, this results in rework and high production scrap. The factor adds to the ______________________ ____________________ due to factors within the control of _____________________ . Ineffective time management

25.Bad working conditions like poor lighting, lack of ventilation, etc., cause reduced production output and increased scrap production and also cause enforced rest time for the work in addition to what is normally allowed. This adds to _________________________ and this factor is within the control of _______________________ . Ineffective time Management 26.Poor attention given by the management towards proper safety training and maintaining ideal safety conditions causes lost time due to accidents, both in terms of stoppage and absenteeism.

This adds to the ______________ _______________ due to factors within the control of the _____________________ . Ineffective time Management

T.P. 6 EXCESS WORK CONTENT ADDED DUE TO FACTORS WITHIN THE THE CONTROL OF THE WORKER 27.While the various illustrations detailed above indicate the factors beyond the control of the worker, there are some other factors which are purely under the control of the worker that cause addition to the work content in terms of ineffective time added. These factors can result in ___________________ within the control of the __________________ . Ineffective time Worker 28.Absenteeism and late coming without proper cause and also deliberately not starting the work immediately after clocking in are some very common factors which result in ___________________ within the control of the __________________ . Ineffective time Worker 29.If a worker causes excessive scrap or rejections by careless workmanship, it results in wastages of material and time, sometimes in rework. Thus, this factor which causes _________________ is within the control of the _______________ . Ineffective time Worker

30.Even after provision of guards or goggles etc. the worker falls to observe the safety regulations like not using goggles while grinding or operates without the guard on a press machine or indulges in horse play etc. he would cause accidents resulting in wasted time and losses. This factor which adds to the _____________________ is within the control of the ____________ Ineffective time Worker T.P. 7 SUMMARY OF THE FACTORS CAUSING EXCESS WORK CONTENT 31.In general, for more ineffective time is added due to factors within the control of the management than that of the workers. This is especially true in case of the large and medium industries and making complex products. To summerise, the different factors that contribute for the addition of ineffective time and hence to the excess work content in the production of a product or a component, can be represented by A, B, C & D in the figure shown below :-

Now write down the names of A, B, C & D A : _______________________________________________________________________ B : _______________________________________________________________________ C ________________________________________________________________________ D : _______________________________________________________________________

A : Work content added due to ineffective designs and specifications. B, Work content added due to ineffective methods of manufacture or process C : Work content added due to factors within the control of management D. Work content added due to factors within the control of the worker.

( CRITERION TESTS ) The work content of a product is the quantum of work contained in it to __________________ ______________ _______ While ma hours is the unit for work contained to produce the whole produce, the smaller unit to measure the work contained in smaller operations is ___________________ Ideal situation ________ ____________ __________ : actual situation : Total work content Define excess work content Match the following : A. Imperfect design and specification 1. Late coming 2. Lack of standardisation B. Insufficient process of manufacture 3. Raw materials not available in stores 4. Ineffective production control C. Factors within the control of management 5. Wrong quality tolerances specified 6. Deliberate slow work 7. Wrong method of manufacture D. Factors within the control of workers 8. Badly illuminated workshop 9. Wrong speeds & feeds specified 10.Careless workmanship 11.Frequent plant breakdown 12.Design faults 13. Accumulation of scrap near machine 14 Wrong machine selected 15. Not providing goggles for 16. using goggles that are provided

Not

Build up a chart implicating the basic work content and representing how the work content is added due to the 4 factors.

Give your answers on this page : After completing check them with right answers given below : 1) _____________________________________________________________________ 2) _____________________________________________________________________ 3) _____________________________________________________________________ 4) _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ 5) _____________________________________________________________________ A) ___________________________________________________________________ B) __________________________________________________________________ C) __________________________________________________________________ D) __________________________________________________________________

ANSWERS 1) produce the same 2) man-minutes 3) basic work content

REFERENCES Frame 1 2 4

4) Excess work content is the extra work added to the basic work content due to the imperfect design and process satisfaction or inefficient practices. 5 5) A 2, 5 and 12 B - 7, 9 and 14 C - 3, 4, 8, 11, 14 and 15 D - 1, 6, 10, 13 and 16 6) vide figure in frame 33 of the lesson

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III MANAGING TECHNOLOGIES IN IMPROVING PRODUCTIVITY
By D.R. KIRAN Formerly Instructors for Managers World Bank Project Tanzania Instructional Objectives :
a) After going through the lesson, the learner should be able to : b) Develop the concept of the nature of the management techniques and the human factors involved c) Understand the various management techniques that can be adopted to reduce the excess work content d) Relate these techniques to the various factors cited in the previous lesson, so as to develop the concept better e) Understand the implications of these techniques.

PT 3-2

PROGRAMME LEADER M.M. JACOB Formerly Director Supervisory Development National Productivity Council Chennai 600098.

Teaching Points :
a) The nature of the management techniques b) Management techniques to reduce the excess work content added due to imperfect design / specification. c) Management techniques to reduce the excess work content added due to wrong methods of manufacture. d) Management techniques to reduce the excess work content due to factors within the control of the management. e) Management techniques to reduce the excess work content due to factors within the control of the workforce. f) Interdependency of the different techniques.

Introduction :
In our previous lesson, we had sufficient concept and understanding of productivity. We have analysed and listed the different factors that lower the productivity of an enterprise. Our aim is hence to maximize the productivity with the existing of the marginally increased inputs. How can we achieve this? In every case, it is a result of action of the management together with the co-operation of the workers and supervisors, making proper use of management techniques. Let us now analyse and list these techniques in the following frames :-

T.P. 1 THE NATURE OF THE MANAGEMENT TECHNIQUES

1.The chief aim of every management is to lead an enterprise towards the specified goals. This can be achieved by organizing and controlling of all activities specially the human activities in the enterprise. Hence management can be defined as the organization and control of ______________ _______________, directed towards the specified ______________ . Human activity goals

2.In other words a ________________ is a person whose chief function is to organize and control human activities in an enterprise, directed towards ____________________ _________________ Manager specified goals

3.Management is both an art and science. There are number of techniques that can be applied to solve management problems. These are called management techniques. State a ( True or False ) True 4.All the management techniques are to be applied with a systematic, step by step approach, from the known to unknown on the basis of ascertained facts. Thus, this ______________ step by step approach is the root of all the management techniques. Systematic 5.While scientific techniques are applied to the materials which are governed by the known physical laws the management techniques have to be applied to people by people. Hence, the full understanding of the human behaviour especially to those affected by managerial decisions ,is very essential in the success, of these techniques. State if this statement is true or false. True 6.Here management is both a science and an art. The systematic analysis renders it a subject of _______________ while the human relations approach renders it a subject of ___________________ . Science art

T.P.2 MANAGEMENT TECHNIQUES TO REDUCE WORK CONTENT ADDED DUE TO IMPERFECT DESIGN / PROCESS. 7.Lack of proper understanding of the available processes and lack of a system of developing a product after due analysis of all factors results in imperfect design features. Thus an effect product development system is the first management technique that reduces __________________ added to imperfect _________________ or __________________ . Excess work content design process

8.By subjecting every produce for detailed analysis with reference to the value added by every design feature would identify and eliminate certain unnecessary features, results in less cost of production. Thus value analysis is a second management technique to reduce ____________________ _________________ __________________ added due to _____________ ________________ or __________________ .

Excess work content

imperfect design

process

9.Lack of standardization for the product and / or components present uses of mass production methods adds idle time due to short runs. Hence _____________________ is the third management technique used to reduce ___________ ________________ ______________ added due to _________________ ___________________ or __________________ . Standardization Excess work content

imperfect design

process

10.Thus to summarise the 3 principal management to reduce the work content due to imperfect design or process are : _______________ ________________ _______________ _________________ __________________________________ product development value analysis standardization

T.P. 3 MANAGEMENT TECHNIQUES TO REDUCE THE EXCESS WORK CONTENT DUE TO INEFFECTIVE METHODS OF MANUFACTURE 11.Invariably excess work content is added by using wrong machines or added by using wrong machines or planning wrong sequence of operation. The management techniques of process planning ensures proper selection of equipment and the process and hence it is the first management techniques to reduce __________ ________ _________ added due to _______________ of __________ . Excess work content Ineffective methods

manufacture

12.Even though the process is selected properly , many times the actual process gradually becomes different. Operation process charts, Flow Process Chart, etc. are some tools that specify the process, the sequence the equipment / tools to be used etc. Hence, preparation of OPCs and FPCs is the second management technique to reduce the ______________ __________________ _____________ added due to ______________ _________________ ______________ of ________________________ . Excess work content ineffective methods manufacture

13.Wrong arrangement of machines and other facilities causes waste movement and hence excess work content. Plant Layout and materials handing system is the third management technique which optimizes the movement and handling and reduces the ________ __________ __________ due to __________ _____________ ___________ of ______________ . Excess work content ineffective methods manufacture

14.When the process planned, plant layout etc. are ineffective, or when the original methods are gradually changed into ineffective methods, a detailed systematic study on the methods adopted results in astounding improvement in the process and methods adopted. Hence Method Study is the fourth and the most significant, management technique to reduce ________ ________ ________ due to _____________ _______________ of ______________ . Excess work content ineffective methods operation

15.After identifying the bad methods and developing, optimum and effective methods, the operators have to be trained properly on these methods. Thus operator training forms the fifth management technique to reduce _____________ __________ __________ due to ________________ ________________ of _________________ . Excess work content ineffective methods operation

16.Thus the 5 major management techniques adopted to reduce excess work content added due to inefficient methods of manufacture are ________________________ ________________________ ________________________ ________________________ ________________________ Process planning Development of OPCs and PPCs Plant Layout and Materials handling Method study Operator training

T.P. 4 MANAGEMENT TECHNIQUES TO REDUCE EXCESS WORK CONTENT ADDED DUE TO IMPROPER MANAGEMENT POLICIES AND PRACTICES 17.Improper policies and practices are factors within the control of Management. For instance take the case of diversification of products. While diversification of the produces produced by an enterprise may achieve higher sales turnover, it certainly increases short run jobs. But, if the company specializes in one kind of product, then the mass production techniques can be adopted. Hence product specialization is the first management technique that reduces____________ _____________ _______________ due to improper _______________ and ______________ . Excess work content policies practices

18.Excess product variety makes the Production Planning & Control complicated and increases idletime. A good system of market research, and consumer survey would decide upon optimum products mix to be produced in an enterprise. Hence Market Research forms the second management technique that reduces _________ ___________ _________ added due to improper management policy with regard to product mix. Excess work content 19.Much ineffective time is caused by falling to plan the working of each machine. Which machine should work or which component or operation? Viz the machine scheduling. An effective system of planning and programming of each and every operation together with effective control system to ensure that the actual working is as per the plans, will go a long way to reducing the idle time back tracking both for the machines and men. Hence ________________ _______________ and control is the third management technique that reduces the excess work content added due to improper ____________ _____________________ and ____________________ . Production planning management policies practices

20.One of the most common situation we find in an industry is that the machine or men are forced to stop working because the right material or tool is not available at the right time. A prompt

material control ensures that these requirements are foreseen and fulfilled in time, at the same time ensuring that the material purchases are done in the most economical manner. Hence Material Control is the fourth ________________ _________________ that reduces the excess work content due to factors within the control of __________________ . Management technique management

21.When thousands and thousands of components are being machined on various machines gradual wear of the cutting tool, operator slackness etc., might result in wrong dimension causing excessive rejections at a later stage. Unless a proper system of establishing the quality standard at every stage and also to control them in a way to rectify the faults in right time, is practiced, high scrap and rejections will result. Hence _____________ _______________ is the _____________ _____________ ________________ that reduces the excess work content added due to improper management policies and practices. Quality control sixth management technique

22.Plant and machinery which break down often cause idleness, reduce production and increase manufacturing costs. Also if they are in bad condition, the rejection and scrap also increases. An effective preventive maintenance system reduces such losses and idle time. Hence ___________ _____________ is the sixth ____________ ______________ that reduces the excess work content added due to improper management practices. Preventive maintenance management technique

23.If the management fails to provide good working conditions like ventilation, lighting etc., ineffective time will be increased by way of extra resting to overcome fatigue or the effects of heat, fumes, coldness or bad lighting. Thus improved _____________ ____________ is the seventh _______________ _____________ that reduces excess work content due to bad policies and practices of management. Working conditions management technique

24.Industrial accidents add to the ineffective time by way of stoppage, and absence, besides many other losses. A sound industrial safety measure prevents the occurrence of such accidents. Hence ____________ ____________ _____________ form the eighth management technique that reduces the excess work content added due to factors within control of _________________ . Industrial safety measures management

25.As referred in frame No.14, inspite of best process planning, the methods of operation keep changing over a period of time, which get unnoticed due to various reasons including slackness in supervision. Actual analysis of these methods, (i.e. method study) enables us to identify these factors and establish proper methods. Thus ______________ _______________ is the nineth management technique, that reduces _________________ ______________ ________________ added due to factors within the control of the management. Method study excess work content

26.The ignorance of good management policies and techniques on the part of Supervisors and management personnel increase in-effective time. Therefore personnel at various levels of management should continuously be subjected in Supervisory Development Programme to learn and produce human relations as well as the various management techniques. Hence a sound __________ ______________ programmes is the tenth _______________ ______________ to reduce the work content added due to factors within the control of management.

Supervisory development Management techniques 27.To summarise, the ten management techniques techniques that reduce the excess work content added due to improper management policies and practices are ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Product Specialisation Material Research Production Planning & Control Material Control Quality Control Preventive Maintenance Improvement in working conditions Industrial Safety Measures Method Study Supervisory Development Programme

T.P. 5 MANAGEMENT TECHNIQUES THAT REDUCE THE EXCESS WORK CONTENT ADDED DUE TO FACTORS WITHIN THE CONTROL OF THE WORK FORCE 28.By careless workmanship, the work may add to the excessive scrap production which increases ineffective time. This can be reduced by a well planned operator training. Hence ______________ ____________ is the first management techniques, that reduces the excess work content added due to factors within the control of the workforce. Operator training 29.Inspite of good safety conditions, some workers cause more accident especially due to their ignorance of safety practices. This is rectified by safety training to some extent. Hence __________ ________ ___ is the second management technique that reduce the exces work content added due to factors within the control of the workforce. Safety training 30.Workforce may add to the ineffective time by their late coming absence and deliberate idleness. A sound personnal policy is normally a solution for this. Hence a sound _______________ ________________ is the third management technique that reduces the work content added due to the factors within the control of the workforce. Personnel policy

31.A system of sound wage incentive policy motivates the worker to produce more in one shift thereby reducing ineffective time. Hence a sound ______________ ______________ ______________ is the fourth management technique that reduces the excess work content added due to factors within the control of the workforce. Wage incentive policy 32.Any amount of established policies cannot work in an industry, unless good industrial relations are maintained and workers motivated to do this work properly. Thus good ________________ ___________________ and worker ___________________ form the fifth management technique that reduces the excess work content added due to factors within the control of the workforce. Industrial relations motivation

33.To summarise the 5 management techniques that reduce the excess work content added due to factors within the control of the workforce are ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

Operator training Safety training Sound personnel policy Wage incentive policy Industrial relations and operative motivation

T.P. 6 INTER-DEPENDANCY OF THE DIFFERENT MANAGEMENT TECHNIQUES 34.Among the different management techniques discussed in the previous frames, none of them can be applied in isolation. Hence they are ( dependent or independent ) of each other . ( choose the right word ) Dependent 35.For example the technique of Production Planning and Control is related to one or more of the other techniques. Identify whether such a relationship exists against each of these techniques and if so explain the relationship. Material control Process Planning Method Study Work Measurement List 4 more such technique where a relationship exists with Production Planning & Control. __________________________ __________________________ __________________________ __________________________

* 1. Quality Control * 2. Preventive Maintenance * 4. Operator Training etc.

* 3. Wage Incentive

36.You have marked Material Control as a related technique in PPC. You are correct . Production Planning & Control cannot succeed, unless the materials, component and tools are made available in right quantities in right time, at the right machine. Hence the significance of ________________ In the effective application of production control system. Material control 37.We have selected Process Planning as another related technique to PPC. Correct. The very basis for Production Planning is Process Planning. is Process Planning. While the former determines when to do, how long to do and how much to do. (which specific machine to allot). Thus Production Planning and Control is very much related to _____________________ . Process planning 38.If you have not considered Method Study as a related technique to PPC, you are wrong. The technique of Production Planning & Control depends upon method study because unless an ideal method is developed for the operations the production control will become ineffective. Hence Production Planning & Control depends upon ________________ ______________ . Method study 39.Market Research. Yes, you are correct to choose this technique as one related to PPC. Only by proper Market Research you can determine the product mix that should be produced in the factory which becomes the basis for the Prtoduction programming and scheduling. Hence ___________ __________________ plays a significant role in the successful Production, Planning & Control. Market research 40.Preventive Maintenance. You are again right in choosing this. The very success of the Production Planning depends upon the scheduled workability of all the machine as assumed earlier. Without proper maintenance system, unexpected breakdown do occur causing the actual production much different from the planned production. This makes it very clear that Production Planning is very much related to _________________ _____________ . Preventive maintenance 41.Quality Control. Yes, you are again right in choosing this technique. Unless the quality of products is within the controllable range, the rejection percentage will increase. This necessitates longer working of each machine than scheduled and also hold up in the subsequent operation. This makes the Production Control very difficult and complicated. In this way __________ __________ is very much related to Production Planning & Control. Quality Control 42.Operator training. This also is a correct answer. Unless the operator is well trained to produce the pace to the right quality in right time, the operational time will differ and the actual machine working and the total number of acceptable pieces produced will make the schedules go haywide. In the way ________________ _______________ is an essential technique closely related to Production Planning. Operator training

43.Well, we have listed only some of the techniques that are related to the Production Planning. Infact almost each one of the 24 or so techniques cited in the previous frames under the 4 categories. In addition to those other techniques that are not specified by us, are related to each other. This forms the ________________________ of all the management techniques. Interdependence

REFERENCES Text book OF work study bY Dr. Kiran Introduction TO work study Edited by ILO Hand book OF industrial engineering & management Edited by Ireson & Grant Industrial Engineering Handbook Edited by HB Maynard.

CRITERION TESTS Define management Explain why Management techniques have to consider the human relations. If diplomacy is the art of management technique, what is the science of management technique. In the following table the first column gives the 4 broad classifications of the techniques while the 2nd column cites the different techniques. Match them.

Classification of technique
A. Those to reduce excess work content added due to Imperfect design

Techniques
1. Operator training 2. Process Planning 3. Product specialization 4. Product development

B. Those to reduce excess work content added due to inefficient methods

5. Working condition 6. Development of OPCs & PPCs 7. Sound personnel policy 8. Plant Layout & Materials Handling

C. Those to reduce the excess work content added due to improper policies and control

9. Value Analysis 10. Wages Incentive 11. Material Control

D. Those to reduce the excess work content added due to factors within the control of workforce

12. Operator training 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Quality control Operator Motivation Standardisation Preventive Maintenance Industrial Safety Safety Training Method Study Production Planning & Control Supervisory Development Market Research

State some Instances

Answers : Repeat Frame No. 1 (Narrate as given in the frame) Repeat Frame No. 5 Systematic Procedure Product Development Value Analysis Standardisation Frame No. 4

Frame No. 7 to 10

Process Planning Development of OPCs & PPCs Plant Layout & Materials Handling Operator Training Method Study Product Specialisation Working Condition Material Control Operator Training Preventive Maintenance Industrial Safety Production Planning & Control Supervisory Development Market Research Operator Training Sound Personnel Policy Wage Incentive Operator Motivation Safety Training

Frame No. 7 to 16

Frame No. 17 to 27

Frame No. 28 to 33

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III INTRODUCTION TO WORK STUDY
By B.S. NAGENDRA Ex-Assistant Director National Productivity Council Bangalore.

PT 4-1
PROGRAMME LEADER M.M. JACOB Formerly Director Supervisory Development National Productivity Council Chennai 600098.

Instructional Objectives :
.

After going through the lesson, the leaner should be able to : Define Work study Explain how work study is a systematic investigation ? List the various advantage of workstudy Illustrate advantages by examples Identify the specific advantage of workstudy in given a work situation (case) List the uses of work study Name two major divisions of work study.

Teaching Points : Definition of work study Definition of work study How work study helps to improve productivity Advantages of work study Purpose of work study Techniques of work study

T.P. 1 DEFINITION OF WORK STUDY 1.Workstudy is a systematic investigation of a work with regard to method and contents with a view of find out best method of doing the work and to determine the time standards. .The goal of work study is to find out _____________ work method and to determine time standard. The work is studied ______________ to achieve maximum results. Best * systematically

2.The first objective of work study is to improve work methods. By work study all factors involved in the work should be studied systematically. The four factors in any manufacturing situation are materials, machines, labour and methods. .Consider a set up for manufacturing rubber washer. It is necessary to have a rubber sheet (raw materials ), a press (Machine), a person to operate the machine (labour) and a sequence of activities (methods) to get the end product. The raw material factor is this case is _____________ . _________ . Rubber sheet * machine The press is a factor representing

3.Panel 1 on page 3 gives three different methods used in producing rubber washers. You can observe in the panel that for every type of blanking we have recorded data with regard to number of washers produced, material utllised, layout of blank, etc. After recording the data they were analysed to find out the reason for wastages and we have developed alternative layout. The alternatives were compared with the previous method. Thus an orderly step-by-step procedure was followed. This step-by-step procedure adopted is the systematic study. We call the above type of study systematic because a ____________________ procedure is followed. Step-by-step 4.In the Panel-1 you have observed that step by step procedure followed has helped us to develop better alternatives. Improvement effected in terms of the area utilized, number of washers blank la layout etc. The saying is material is the ____________________ effected. Improvement 5.We have seen how the material utilization has undergone an improvement in panel-1 the blanking of washer is done by a die having one punch. Therefore each stroke produces one washer. If one stroke of the press takes 0.10 minute to produce one washer it takes 0.10 mts. In all three cases. It may be observed that time taken to blank one washer output is same in all the alternatives discussed in panel 1. A study of the local (die) used would enable you to effect improvement in the output rate of washer. If the die can blank out 4 washers [as in case (a)], 5 washers [as in case (b)], or 6 washers [as in case (c)], by just one stroke by providing multiple punches in the die the output rate of the washer, will also increase.

CASE 1 : BLANKING WASHERS

PANEL 1

Consider the following case where a rubber blank is used for making washers. The blank area is 10 sq. cm. and the washer area is 1 sq. cm. Washers are blanked out from the rubber blank.

Consider case(s) of manufacturing washers. In this method there are 2 rows of blanking the washers; 4 washers are obtained. The area utilized is 4 sq. cm. And unutilized is 6 sq. cm. The data about the number of washers, area of blank utilized and unutilized is recorded. From detailed analysis of the layout and on the data recorded it is investigated as to why the unutilized portion is more, can more number of washers be obtained. This analysis will lead us to think of alternative layouts of making washers.

Consider the following alternative case (b). It is seen that with 3 rows of punching on the same size blank it is possible, to obtain 5 washers with 5 sq. cm. Area utilized and unutilized area of 5 sq. cm. The utilization has increased by 5 4 x 100 = 10% as compared to case (a). 19

The material covers a distance of 50 + 100 + 50 + 80 = 280 mtrs. From the raw material store to despatch one helper carries material between the store and drilling machine i.e. 50 100 = 150 mtrs. From a systematic analysis of the material movement, location of machines, etc. it was found that considerable space was left between machines. It was found that it is possible to locate the drilling machine close to the lathe and combine the inspection and despatch.

The workstudy analysis has improved the work place layout and reduced thequantum of work involved in material ___________________ .

Movement 10.In panel-II the time taken by the machine with carbide tool is 10 min. as against 20 in the earlier method. Therefore the time saved on machine is 10 min. This machine (capital) productivity has increased by 20 10 x 100 = 33%. 30 Labour time saved is also 10 min. Hence the labour production is _________________% 10 x 100 = 33% 30 11.Refer to the example in frame 10. The distance to be traveled in the improved layout is 130 mtrs. which takes 65 secs. As against 140 secs. For 250 mtrs. The time saved is 140 65 = 75 secs. Per travel.

T.P.3 ADVANTAGES OF WORK STUDY 12.As observed in case 1 and case 2 the main advantage of workstudy is that productivity improvement is achieved with very less or no investment. Workstudy helps to achieve __________________ improvement with no or very less _______________ . .productivity investment

13.When a die which produced one washer at a time was replaced by the die producing 6 pcs. At a time ( refer to panel 1 ) the benefits of this design change will start accruing immediately because this type of change can be made within a few days. The savings through anew method developed by workstudy is obtained. Immediately 14.Workstudy can be used with success wherever work is done. Offices, erection sites, farms, restaurants are all places of work. In all these places workstudy can be applied for improvement. Hence workstudy has universal application. Consider two applications of workstudy in an office environment. One about posting envelopes and second about locating carbon paper between 2 white sheets.

Workstudy is applied not only in industry but also in offices, service organizations, farms etc. Therefore it is ____________________ applicable. Universally 15.An operator is producing a component on a lathe. He keeps the product in a box placed on the ground. This he has to do everytime manually by bending down to keep the box.

Method Study

Work Study

Work Measurement

The effort of the worker in unloading the component can be reduced by providing a chute from the machine to the box kept on ground as shown in the figure. Will it increase / decrease the fatigue of the worker ? Decrease 16.From the above examples it can be seen that work study is a simple technique which can be applied with common sense. Work study is applicable universally wherever work is done, and it is ___________________ to apply. Simple / easy 17.We have seen that work study is a simple technique for increasing productivity. We have seen that there are 5 advantages of work study compared to other productivity techniques. First is that it requires little or no capital investment for effecting improvement. The remaining four are a) b) c) d) _____________________________ _____________________________ _____________________________ _____________________________

Simply to apply Universally applicable

Immediate results Reduces workers fatigue

T.P. 4 PURPOSE OF WORK STUDY 18.From examples to panel I & II, we have seen that improved methods, improved inputs, reduced fatigue have helped in the overall improvement of the work. During these studies we have also used the time taken for comparing the methods. Work study involved measurement of time. The same time measured can be used for other purposes. Workstudy also provides the ________________________ required for various jobs. Time 19.When the required for making a product is known we will be able to evaluate the manpower and machine requirements for the production. In the panel 2 you know the time requirement for the improved method is 20 min. you require 200 pcs. Per month. From this requirement of the labour for the above production is 20 x 200 man hrs. or 66.67 man hrs. 60 Similarly the machine hours required per month for the same production is __________________ . 66.67 20.The man power and machine hour requirements help us to plan and control the manpower and machine utilization. Workstudy helps in assessing the manpower and machine __________________ . Requirements 21.Earlier cases you have seen one of the factors studied is the time for doing a job. Incentive payments are done based on time standards. So by workstudy you decide the time standards which help in the payment of incentives. The basis of incentive scheme is _________________ standard. Thus workstudy helps in the design of ____________________ scheme. Time incentive

22.Thus we have seen, workstudy serves so many purposes. A few of them are 1) 2) 3) 4) 5) _____________________ standards ______________________ scheme ______________________ layout manpower _______________________ ___________________ requirements * 2) incentive * 3) plant * 4) planning * 5) machine time

* 1) time

T.P. 5 TECHNIQUES OF WORKSTUDY 23.From the earlier frames you have seen that through workstudy we are achieving two groups of objectives. One is concerned with work methods and the other is concerned with work content or job time. Thus workstudy may be split into 2 parts as shown in figure below :

The first part given in the diagram is ___________________ ____________________ The second part of the workstudy in diagram is ____________________ _______________ . Method study Work measurement

24.Thus work study consists of mehod study which lead to _________________ in work methods and _________________________ for the determination of the time standards. Improvement Work Measurement

25.As seen to panel 1 a systematic analysis was made by recording zll facts with regard to the existing / proposed methods. These were critically analysed to arrive at ad select the improved method. Method study is the systematic recording and critical analysis of existing and proposed ways of doing work for developing __________________ methods. Improved 26.You have seen that time standards were used for various purposes. Time standards are obtained through work measurement. Thus work measurement is the application of techniques to develop ___________________ for specified jobs. Time standards 27.In the panel 1 the existing method studies was making one washer per stroke of the press. In the proposed method in panel 1 the improvement was due to tool change by which 6 washers were obtained per stroke. Therefore, this case was mainly used _______________ _______________ part of the workstudy. Method study We can summarise that work study is a simple, systematic and simple productivity technique, it consists of two parts. They are : 1) Method Study 2) Work Measurement Work study has several advantages compared to other productivity techniques. Major advantages are : 1) It is a simple technique 2) It is a universal technique ( can be applied at all places where work is done including layouts of work places and plants. 3) Improvement is achieved with nmo ot a little capital investment

4) 5) 6) 7)

Results can be got immediately. It reduces the fatigue of workers. It improves safety of the work methods. It determines time standards needed for work planning and control purposes as well as for incentive schemes.

CRITERION TESTS 1.Which of the following studies or investigations can be classified as work study : a) b) c) d) e) Time study to fix time standards An investigation to find the reasons for tool breakdowns. Investigations to find out causes of detects Layout studies to reduce materials handling / movement A study done with regard to selection of computer for management information systems in an industry. f) A study done with regard to selection of computer for management information systems in an industry. g) A study to relocate the tool crib in a workshop so that as to minimize the time for obtaining the tools by workers. h) Experimental study to find out material changes in a heat treatment process.

2.In an office, the filling system was studied to minimize the searching time involved in finding out and locating the documents and files needed. All factors and aspects of the system were studied in a systematic manner and improved system was developed which did not involve any capital investment. Thus study was considered as a work study due to which of the following reasons. Study was done in an office Study was done to improve the system All factors were studied Study was systematic It did not involve any capital investments A system were studied 3.Work study is systematic because : All facts are recorded All facts are analysed Alternative methods are developed and evaluated It is universally applicable. 4.Which of the following places work study can be applied Office House Construction Site Farm Kitchen Factory

5.Which of the statements are true or false : Work study should always result in reduced work content. Work study is a simple technique. Work study cannot be applied in a research laboratory To conduct work study you need highly educated engineers. Research and development in systematic investigation. Therefore it is work study. Result from method study is obtained with in a short period. 6.Fill in the missing words : Suggestion scheme brings out improvements but it cannot be considered as or equivalent to work study because improvement is not brought not after a _______________ study. ____________________ ________________________ Research and development is systematic investigation but it is not work study because it involves lot of ________________ __________________ and results are obtained after a __________________ ________________ . Time study is a part of work study because it measures the _________________ __________________ in a simple and systematic manner. Technology modernization study even though systematic is not work study because it needs lot of _________________ knowledge. 7.Work study consists of two major divisions. They are ____________________ _________________________ ____________________ _________________________ 8.Work study can have various objectives. Two of them are : Improve the productivity Fix time standards Name another two objectives of work study : ___________________________ _____________________________ ___________________________ _____________________________:

ANSWERS : 1.a, d, f can be classified as work study : 2.b, c, d and e are the reasons to consider the study as work study 3.All the characteristics listed qualify work study a systematic study 4.All places listed work study is applicable. 5.b, f are true a, c, d and e are false 6.Systematic Capital investment; long period Work content Technical

7.Method Study Work Measurement 8.Increase safety Reduce fatigue

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III
WORK MEASUREMENT BASIC PROCEDURES RATING AND ALLOWANCES PT 9-1

By S.V. NATARAJAN Assistant Manager (Industrial Engg.) Ashok Leyland Ltd. Ennore. Chennai.

PROGRAMME LEADER M.M. JACOB Formerly Director Supervisory Development National Productivity Council Chennai 600098.

Instructional Objectives :
.

After going through the lesson, the leaner should be able to : List three main purpose of Work Measurement Change the appropriate Work Measurement technique for a given situation List the basic steps of Work Measurement Indicate different equipments used in Time Study Explain the need for rating Compare the three types of rating scales List different types of allowances State the need for different types of allowances

Teaching Points : Purpose of Work Measurement Work Measurement Procedure Time Study equipment Normal Worker Concept of rating Rating Scales Normalising Recording of Rating Allowances Fatigue Personal

T.P.1 PURPOSE OF WORK MEASUREMENT 1.The purpose of fixing standard time for a job is termed as Work Measurement. Suppose 3 workers A, B and C do the same type of job. A produces 50 Nos. per day & 60 Nos,. and C 70 Nos. The Supervisor of this group should know the exact numbers of places that can be produced per day. This is called the standard output. The time that is necessary to produce 1 piece by a trained worker is called the __________________ . Work Measurement process results in the fixation of standard time and __________________ . Standard time standard output

2.In the above example the standard output per man is 100 Nos. / day of 8 hrs. The actual output per day of 3 workers. A, B abd C us (50 + 60 + 70) or 180 Nos. (Using 3 men). The average actual output per man will be ______________________ . (50+60+70) = 180 = 60 3 3 3.The difference between standard output and actual output in the above case is (100-60) = 40 Nos. Such a difference between standard output and actual output is caused due to the existence of certain waste of time or ineffective time. In the above case, ineffective time results in a loss of output per man, on an average of _________________ Nos. (100 60) = 40 4.Work Measurement thus can identify the effect of ineffective time in terms of ________________ . Production loss

5.Work Measurement is used to set standard time. It is worthwhile to use standard time value in performance control of employees. In the example (frames 1 & 2), As performance is 50 out of 100 or 50%. This is because the standard output is 100 Nos/day/man. What will be the performance of B and C in the same example? B = ______________________ C = __________________ . This type of performance evaluation can be done continuously, once the standard time is examples. Thus, Performance control is carried out using ___________________ time. Bs performance = 60 x 100 100 Cs performance = 70 x 100 ` 100 Standard = 60%

= 70%

6.Workers are motivated by incentives. It is a good idea if we use work measurement results for incentive payments. Such a system will be an equitable system of payment, being based on performance evaluation. In our example, we saw that A works at 50%, B at 60% and C at 70% performance efficiency incentives can be paid in proportion to the performance. Thus, another purpose of work measurements is in using the results for ____________ payments. Incentive 7.The Supervisor or the Manager may like to know the number of men required to complete a job in time. Since work measurement is used to fix the standard time, another purpose is to assess manpower needs to complete the given set of jobs. Thus, the three major purposes of work measurement are (a) Performance __________ (b) ____________ payments and (c) manpower ____________________ . Control incentive assessment

T.P. 2 DIFFERENT TECHNIQUES OF WORK MEASUREMENT 8.There are different types of Work Measurement techniques. We must choose the appropriate technique in each case, depending upon the kind of work we wish to measure. A repetitive production job can be measured best by a stop watch time study. A maintenance workers job which varies every day, (can / cannot) be easily measures by stop watch time study. Cannot

9.For non-repetitive jobs, work sampling and production studies are preferable , in work sampling, certain statistical sampling procedures are used to determine the percentage utilization of workmen. In a fan manufacturing company, fans are to be packed after testing. We must use (work sampling / stop watch time study) to fix the standard time to pack a fan. Stop watch time study 10.When a large number of time studies have been completed, the result of these can be analysed to arrive of certain elemental data. These can be used to build up standard data for fixing time standard. Conducting time study is time consuming and costly. Using elemental standard data is an efficient alternative to )Work Sampling / Time Study) Time study 11.Identify the Work Measurement technique which will be relevant in the following cases for fixing time standards. Typing routine forms; Maintenance job; Production job; Packing job in a factory; A peons job (a) Time study or standard data (c) Time study or standard data (e) Work sampling or production study (b) Work sampling or production study (d) Time study or standard data

T.P. 3 WORK MEASUREMENT PROCEDURE

12.Before selecting a Work Measurement process, make sure of two aspects. First, the specified method is practiced in doing the job. Second, the worker is well trained in this job. In selecting a job for Work Measurement, we must insist on a _________________ worker during work in a ___________________ method. Trained specified

13.We have to then Record all the relevant data concerning the job e.g. if we study the job of a machinist, then the machine used, the speed and feed pf machine, the fixtures and tools used accessories used the form of the material machined, the elements of the operation, etc., are all to be recorded. In other words, process and product details are to be Recorded. The first two steps of Work Measurement are ___________________ and _________________ .

Select

record

14.Next, we critically Examine the recorded data. The purpose of such an examination is do identify and eliminate any necessary elements of work. For instance, if during a study, there is power cut for 10 minutes and work is stopped, This is an unnecessary of foreign element to the work being studied. This is considered as not relevant to the job. Critical examination is (essential / not essential) in work measurement to ensure that ___________________ ___________________ are eliminated. Essential unnecessary elements

15.Time is measure of work. The quantity of work in each job is to be studied and fixed in terms of time. If 100 nos. is the standard output for a job per shift of 8 hours or 480 minutes, the standard time for job is 480 = 4.8 minutes. 100 In Work Measurement we use the principle of measuring work in terms of _______________ . Measuring the time is the fourth step in work measurement Time 16.Suppose we want to study the job of packing fans. We must choose or select a _____________ worker in packing and also insist on specified _________________ to be followed. Next we ________________________ all relevant data in the ten packing job, critically ___________________ the recorded data and measure the ________________ and ________________ for the job. Trained Examine method record time output

17.When a worker, continuously works in a shift, he needs some time away from his work to attend to personal needs, and to recuperate from fatigue of work. This is provided as allowances in time. Then standard time is compiled which will include the allowances for ______________ ______________________ and __________________ . Compilation of the standard time is the fifth step in work measurement. Personal needs fatigue 18.When the step of compilation of a time standard is over, we must specify the sequences of elements which constitute the method of operation, and their frequencies. This is to provide clarity in future. It also specifies the standard time for job. Hence the last step in a Work Measurement programme is to __________________ the method and standard time. Specify The 6 steps of Work Measurement are thus (a) _______________________ (d) _______________________ * (a) select * (b) record (b) ______________________ (e) ______________________ * (c) examine (c) ___________________ (f) ___________________

* (d) measure

* (e) complie

* (f) specify

T.P. 4 TIME STUDY EQUIPMENTS 20.The technique of time study consists of recording the time taken, pace of doing work and the method of doing a job. All these are needed to fix the standard time. Time study is a technique of ________________ ________________ . Work Measurement 21.During the study the time taken for each element of a job us ti ve recorded accurately in terms of seconds or fraction of a minute. Which of the following ill be more accurate in recording time of each a short duration ? (a) Wall clock Stop watch (b) Timepiece (c) Stop watch (d) Wrist Watch

22Please have a look at Panel A for a stop watch. These are calibrated to read _1_ th of a minute and are called as ____________________ 100 ____________________ stop watches. It has two rotating hands. The small one indicates minutes and the large one indicates _________________ . There are two knobs provided to the watch. The bigger one is to start and stop the watch. If the small knob is pressed the larger needle will ________________ to ________________ . * Decimal Minute * Centiminutes * flyback * zero

23.During the work study, we have to record time and other date rather fast. Hence, we use pencils instead of pens. Also standard forms are used to record the data, relevant for the job. Pencils, Stop watch and ________________ __________________ are needed in Time Study. Standard Form 24.In order to hold the forms and stop watch, and to read and record data conveniently, we use a time study board of size 12 x 8 with provision of a clip to clip to hold forms, and a slot to hold the stop watch.

Please see Panel B for a Time Study Board. On the top edge of the Time Study Board the __________ is fixed. Stop watch holder is fixed on top right hand corner of the Board. Which of the following are used to conduct a Time Study? a. Drawing Board Time b and e b. Stop Watch c. Note Book d. Pen e. Time Study Board

25.The stop watch, time study board, printed forms and clip are the equipment needed to conduct a ________________________________ . Time study Please go to the next teaching point.

T.P. 5 NORMAL WORKER 26.A normal or qualified worker has the necessary physical attributes and is qualified to carry out the job to satisfactory levels, quality and quantity with safety. Such a worker can be expected to work at standard performance level. Can we then say that the rate of work is normal? Yes 27.It would then be ideal to select such normal workers while doing a time study. This is because normal workers carry out their jobs at or near-about _____________________ performance levels. Standard 28.In practice, it may be difficult to locate normal workers in every task. Also, if the normal workers are not inclined, they may slow down during a study. They time study portion should observe this and find out the role of work of the worker. Thus _____________________ of work becomes inevitable to a time study. Rating

T. P. 6 CONCEPT OF RATING 29.Every individual worker may not work at the same pace. Further, the same worker may adopt different paces of work in different jobs or elements jobs. Workers pace of doing work ( may / may not ) work at the same pace.

May not

may not

30.When a time study is taken, the observer keeps the above facts in mind. He wants to arrive at the time when a trained worker works at normal pace. For this purpose, he observes the pace of work of the worker (being studied), compares mentally the pace of work, with the normal pace and gives his assessment about the workers pace of work. This is called Rating. In other words, rating is the assessment of a workers pace by the observer. Workers who work at different paces of work, will be given the ( same / different ) rating by the observer. Different 31.Let us consider a simple activity walking. The standard rate of walking is 6.4 kmph. In rating concept, the person walking at 6.4 kmph will be given the standard rating. A person walking at 4.6 kmph should be given. (a) 4.8 x 100 of standard rating or 100

(b) 6.4 x 100 of standard rating or 100 which of the above is correct ? (a) 32.Time study observer compares in his mind each element of the job during the study in relation to the standard. This is similar to comparing a mans rate of walking with respect to the standard rate of 6.4 kmph. 33.Since standard values are not available for every activity, the time study observer uses his judgement in rating. For this purpose, he is sufficiently trained inrating practice with the help of rating films and making him to practice _____________________ under the guidance of experienced time study supervisor. Rating

T. P. 7 RATING SCALES 34.A numerical scale will be useful in rating of workers, since the comparison of the pace of work with the normal can be given a suitable value. There are 3 common rating scales designated as 60-80, 75-100 and 100-133.

The lower figure in each scale is the rate of working of a workers, if he is paid on time rates of pay with no incentives. 35.If an incentive based on output is offered, the workers rate or working will increases. The higher figure in each scale indicates the standard pace of work done by a normal worker with incentive payment. In 100-133 scalle, the standard performance level is _______________ 100 on this scale indicates the pace of work without ___________________ . 133 incentive

PANEL C
Rating Scales 60-80 40 75-100 50 100-130 67 Steady, unhurried performance, Looks slow, but no deliberate Wastage of time Brisk confident performance of a Qualified worker who works with Incentives. (Refer frames 29-34) Description Slow, clumsy, tumbling pace 3.2 Walking Speed Km/Hr.

60

75

100

4.8

80

100

133

6.4

36.\A comparison of the 3 scales of rating is shown in Panel C. Please refer to the panel C and answer the following : A slow, clumsy way of working will be given a rating of ___________________ in 75-100 scale. Walking at 4.8 kmph will be given a rating of _______________ in 100-133 scale. 50 100

37.The different scales are adopted by different observers. But they are just indices of the same concept just like indicating a temperature as centigrade or o.Fahrenheit. The National Productivity Council generally prefers the rating scale 75-100 because it stipulates the workers to work at 100% efficiency when motivated. This is also the scale recommended for use by the International Labour Organisation (ILO).

T.P. 8 NORMALISING 38.Normal Time = Observed Time x Rating ________________ Standard Rating

If the observed time to pick up a heavy component to 0.30 minutes and the rating for this is given as 90 in 75-100 scale then, Normal Time = 0.30 x 100 = __________________ 90

0.27 minutes

39.Convert the following observed times into Normal Times : The rating scale is 75-100 Scale. Observed Times a) b) c) d) 0.60 minutes 0.45 minutes 0.70 minutes 0.50 minutes Rating 95 100 110 80 Normal Times . . .. .

* (a)

0.60 x 95 100

0.57 Mins.

* (b)

0.45 x 100 = 100 0.70 x 110 = 100 0.50 x 80 = 100

0.45 Mins.

(c)

0.77 Mins.

* (d)

0.40 Mins.

40.In the above example (refer frame 39 ( c) 110 rating is observed though the standard is 100. It is occasionally possible that the standard pace of work is exceeded. But, over a period of time, standard rating cannot be exceeded very much continuously for a long period. In 100-133 scale, performing at 150 level continuously, for years is (possible / not normally possible ). Not normally possible

T. P. 9 RECORDING OF RATING 41.Each element of an activity is rated during time study. This is because the worker may adopt the ( same / different) pace(s) of work in various elements.

Different 42.There is a separate column to record the rating value in the time study sheet, refer lesson on time procedure-PT 9.2 Panels 1 & 2). Now that you know sufficiently about Rating, please go to the next important teaching point.

T. P. 10 ALLOWANCES 43.Every worker needs to attend to his personal needs such as drinking water, washing, need to go to toilet, etc. Experts have worked out that these personal needs will take approximately 5 to 7% (5% for Men and 7% for Women) of the working time. 44.There is also a basic fatigue in doing any job. This is on account of energy expanded while doing work. Usually, 4% of the working time is added to overcome factigue under normal working conditions. Personal needs for fatigue allowances for (a) (b) man = _______________ + ________________ = _________________ %

women = ________________ + ________________ = _________________ %

* (a) 5 + 4 = 9%

(b) 7 + 4 = 11%

45.When a man works for 200 minutes of normal time, allowance for fatigue = ________________ Mins. And for personal needs = ___________________ Mins. (a) 200 x 4 * 200 x 5 = 10 100 100 46.If the working conditions are such that a seat is provided, work is light and working condition good, a fatigue allowance of 4% to adequate. If such conditions do not exist, more fatigue allowance is needed. 4% is thus the ( minimum / maximum) fatigue allowance. 47.Load handled, posture of work and environment are to be considered while deciding the additional relaxation allowance. A person working at a furnace, will be given ( more / less) allowance than a worker in anormal workshop. More 48.Various organizations like ILO have developed their recommendations in the form of tables to computed relaxation allowances. These are used in practice by the time study observer. 49.Relaxation Allowance is the name given to the sum of allowances for Personal Needs. Basic Fatigue due to working conditions. This is considered on an element basis. = 8

Calculate the relaxation allowance in Mins. In the following cases. Element No. 1 2 3 * 0.20 Mins. Normal Time (in Minutes) 1.0 0.6 0.5 * 0.20 Mins. Relaxation Allowance (%) 20 25 20 (in Mins.) ________ ________ ________

* 0.10 Mins.

50.In practice, there may be certain small unavoidable delays in work e.g., in a machine stop, the tool may have to be sharpened. Instead of spending time to exactly measure this a small % say 2 to 5% is added to the timing to cover up such contingencies of a minor nature. This is known as contingency allowance. 51.But, there may be certain major activities like setting a machine, cleaning the machine at the end of the day or some work connected with starting of machine. They are not the parts of operation cycle but essential for satisfactory work. Allowances for such work exigencies are measured during Time Study and given on a day-to-day or batch by batch basis. These are termed as special allowance. Machine start up time in the beginning of the shift can be included as ______________________ . Special allowance 52.Under certain extraordinary circumstances, policy allowances are given e.g. extra material to be removed in a machining operation, or a specified method cannot be followed due to the shortage of a tool, small interruptions from supervisor etc. In such cases ____________ ____________ may be given to cover up the additional work load and ensure satisfactory incentive earning by the worker. Policy allowance 53.1.In addition to relaxation allowance time standard may include other allowances. Name them. _________________ _________________ __________________ _____________________ __________________ _____________________ * contingency allowance * special allowance * policy allowance

CRITERION TESTS The standard output of a job is 80 Nos. per hour. A worker produces 50 Nos. per hour. The performance level of this worker is (a) 50% (b) 80% (c) 160% (d) 62.5% (e0 60%

In a typists pool, there are 5 typists. Different jobs are given to them daily. Which of the following work measurement technique is preferable to adopt in order to measure their work load ? (a) Work Sampling (b) Time Study (c) Elemental Standard Data

A trainee performs work with a machine. Can we take a time study to fix the standard time for jobs using the trainee ? Yes No

During the time study of a carpentry job, which of the following are to be recorded ? (a) Price of wood/cu.ft. (b) Salary of Carpenter (c) Tools used (d) Name of the operation (e) Type of wood used for the job

A decimal minute stop watch can be used to read at the minimum 1 1 (a) ------------ th of Minute (b) 1 second (c ) ---- th of an hour 1000 10 1 1 (d) ------- th of Minute(e) -------- th of a Minute 100 10 A worker who works reasonably fast and in a brisk manner, should be given a rating of __________ in 60-60 scale. If observed time = Normal Time in a study, what is the rating? (Assume 75-100 scale) A female worker carries out a light assembly job in good working conditions. Normal time for an element is 0.90 minutes. What amount of time should be allowed be cover up personal needs and fatigue ? In a process setting up of the machine is required for every 1000 Nos. Set up time is fixed as 60 minutes per batch. Set up allowance to be given is : (a) 1 Min/piece (e) 6 mins./day b) 60 mins./piece (c ) 60 mins./1000 nos. ANSWERS 1. d 6. 80 2. a 7. 100 3. No 8. 0.10 Min. 4. c, d and e 9. c 5. d (d) 60 mins./day

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III
TIME STUDY PROCEDURE PT 9-2

By N. JAGANNADHA RAO Assistant Manager (Training) Ashok Leyland Ltd. Ennore. Chennai.

PROGRAMME LEADER M.M. JACOB Formerly Director Supervisory Development National Productivity Council Chennai 600098.

Instructional Objectives :

.
After going through the lesson, the leaner should be able to : List information required to identify the product List information required to identify the process Break down the job into elements Compute basic times and standard times for manual operations Compute basic times and standard times for work done with a machine. Teaching Points : Selection of job for time study Record information regarding the hob to be studied Break down the job into elements Conduct the study observe the job and record stop watch readings and ratings in the study sheet Analysis and summary of the time study Computation of standard time for manual operations Computation of standard time for work with machine.

T.P. 1 SELECTION OF JOB FOR TIME STUDY 1.As we have already seen in the previous lesson the firt step in Time Study is to select the job to be studied. If the purpose is to set performance standard, it should normally be akin up only after Method Study is done to establish and define the most satisfactory way of doing the job. Otherwise, after the time study is made either The worker or the supervisor may change the method and the standard will not be valid. Before a job is selected for Time Study it is (important / not necessary) to conduct a method study or else the standard is likely to be (invalid / valid). Important invalid

2.There are number of reasons why a particular job requires to be time studied. Two of the reasons are : a. Jobs are repetitive for which standard times are required for the purpose of introducing an incentive scheme. b. A change in method of working or material has been made, hence new standard to be established. Would you recommend taking up time study in the following cases ? i. ii. An erection work which will be done only once Yes / No Yes / No

The material of the product has been changed from steel to aluminium

Yes No

3.Two more reasons for taking up a job for time study are : i. A new job which is likely to be repeated number of times in future but not previously studied. ii. A dispute has been raised by workmen regarding the time standard. Would you recommend a time study in the following case ? i. An extra bold hole is introduced in the casting for strengthening with addition bold. Yes/No ii. The product is being produced without any difficulty and the group is earning a reasonable incentive based on the time fixed. Yes/No

* Yes

* No

4.When a job is to be taken up for time study it should be always proceeded by _______________ study to establish most ____________ method of doing the job.

Method

effective

T. P. 2 RECORD INFORMATION REGARDING THE JOB TO BE STUDIED

5.Second step in time study is to Record information regarding the job before starting a time study, we should collect and record all relevant basic information. First, we have to record the information required to identify the particular time study. Details such as whose heading the Time Study department are not necessary. .Which of the following details do you consider necessary to find the time study ? Study Number Date of Study Name of the person conducting the study (observer) Age of the observer Head of time study department A, b and c 6. Next it is important to obtain and record information required to identify the product or part being processed. Details such as name of supplier and cost are not required. Which of the following details do you consider necessary to identify the product or part? (a) (b) (c) (d) (e) Name of the product or part Part No. or Specification No. Supplier of raw material Cost of raw material Material used for making the part

* a, b and c 7.Next we have to obtain and record information accurately to identify the operation. Details of method and machine used, description of operation and toolings used will be required to identify the process. Which of the following items do you consider as required for this purpose ? (a) (b) (c) (d) (e) (f) Department or location Plant or machine used Description of operation or activity Tools, jigs, fixtures & gauges used Speeds and feeds used Name of manager of the shop

* a, b, c, d and e 8.Next we have to obtain and record information to identify the operator or worker being studied. Do you consider that the following details are sufficient ? (a) Operators Name

(b) Operators designation (c) Operators employment No. Yes 9.We have so far seen that before starting a time study. It is important to obtain to record information required to identify. i) ii) ________________________ ________________________ iii) The process and iv) The operator iii) _______________________________ iv) _______________________________

* I) The study ii) The product

10.A sample of time study for a drilling operation in a casting is presented in Panel-1. Take a simple job like a dispatching operation consisting of following elements : folding a letter, putting letters in an envelope, franking and pasting done at the despatch section. Fill up all the required information in the blank format of time study sheet given in Panel-2.

T. P. 3 BREAK DOWN THE JOB INTO ELEMENTS 11.Once the information required about the job is recorded, we can see that the job consists of a number of different parts or elements. Let us consider an example of drilling 4 holes in a part using. Multi Drilling Machine and the following sequence is observed in a cycle of operation. Clean jig with a brush Pick part, position on jig plate tighten 2 clamps Tilt jig plate upside down and secure hand clamp. Switch on spindle, lower drill head and engage auto feed Wait till the drilling operation is completed. Raise drill head and stop spindle. Loosen hand clamp and tilt jig. Loosen jig clamps, remove component. Check visually and unload in the pallent. Each of the above distinctly identifiable part of the job is called an Element. An element has a clearly identifiable starting point and ending point and the duration of the element can be recorded by the time study man. Is it possible to record 0.005 minute with a decimal stop watch. Yes / No

Split the job of enveloping letters selected by you in frame 10 into elements and write down the elements in the form given in panel-2. (If you cannot observe this work in an office, please make an experiment yourself). No 12.The different elements of an activity or job are given below. You are required to arrange them in proper sequence and identify the job : a) b) c) d) Paste the flap and close the cover. Pick up letter from tray and fold in such a way that the address is on top. Frank the cover. Insert the letter inside the envelope.

Write correct sequence What is the job ? The above elements and correct sequence are to be adopted for further exercises on this job to be done by you. b, d, c and a Job : Insert letter in envelope, frank and paste

13.The elements can be categorized or distinguished into 6 types. Two types of elements are a) Manual element performed by worker b) Machine element automatically performed by the machine. Identify whether the following element is manual or machine type. Shoveling coal into a lorry. Manual 14.Elements can be categorized as : a) b) Constant element which has more or less a constant time. Variable time whose time varies from occasion to occasion.

Identify which of the following elements is a constant element : i) ii) Switching on the machine for starting. Sewing logs with a hand saw. I) 15.Elements can also be categorized as Repetitive element which occurs in every cycle of the job. Occasional element does not occur in every cycle but occurs at intervals. Identify which of the following elements is an occasional element : Local each component on the machine for hobbing. Clearing chips and scrap from the machine as and when required. ii)

16.The general rules concerning the way in which a job should be broken down into elements are : Elements should be identifiable, with definite beginnings and endings. Elements should be as short as can be conveniently timed, in practice, it is found that it is not convenient to time elements less than 0.05 min. in duration.

State whether the elements shown in frame 11 are clearly identifiable. In the assembly of electronic components an element was found to be about 0.02 min. duration. Is it possible to time this element by time study? Yes / No * Yes * No

17.Two more rules for breaking down a job into elements are : Manual elements should be separated from machine elements. Constant elements should be separated from variable elements. Examine and state whether the above 2 rules are followed in the example given in frame 11. Yes / No Yes 18.We have seen that after all the information regarding the job is recorded the job has to be broken down into easily identifiable and distinct parts called _________________ . The elements can be categorized into _________ types. Manual elements should be separated from _______________ elements and constant elements should be separated from _______________ elements.

* elements

* six

* machine

* variable

T. P. 4 CONDUCTING THE TIME STUDY 19.Before we observe the job for time study the concerned supervisor and the operators should be informed about the study and supervisor is requested to arrange to a representative workers for doing the job while the study is conducted. This is necessary because if either a fast worker or a slow worker is studied, the timings will not be representative and likely to and up in complaints from the workers later. Therefore, before starting a study the supervisors and workers ( should be informed / need not be informed ) about the study and the study should be conducted on a ( fast worker / representative of a normal worker / slow worker). * should be informed * representative of a normal worker

20.The next step is to find our accurately the time taken for each element. This is achieved by observing the job as it is performed, noting down the brief description of element and watch reading at the end of the element in the study sheet. An example of time study is shown in Panel1. Identify from the watch readings whether a seconds watch or decimal watch is used for the study. * decimal watch 21.While noting down the timings using the stop watch, there are two methods of timing

Flyback Method Cumulative Method In flyback method, at the end of each element the stop watch reading is noted mentally, the hands of the stop watch are returned to sero and are allowed to start immediately by pressing and releasing the reset knob. The time for each element is thus directly obtained and noted in the study sheet. With the help of a decimal stop watch, observe the total cycle of Placing letters in envelope and pasting as a single item record 5 reading by the flyback method. _____________________________________________________________________________ Reading No. 1 2 3 4 5 _____________________________________________________________________________ Reading time _____________________________________________________________________________

22.In cumulative method the stop watch runs continuously throughout the study. It is started at the beginning of the first element of the first cycle to be timed and is not stopped until the whole study is completed. At the end of each element, the watch reading is recorded. The elemental times are obtained by successive subtractions after the study is completed. The purpose of the procedure is to ensure that a complete account of the time during which the hob is observed, is recorded in the study. An example of cumulative time study can be seen in Panel-1 Again, selecting the job if putting letter in envelope and pasting record timings for 5 cycles by cumulative method and obtain observed times by successive subtractions.. Cycle No. Start 1 2 3 4 5 Watch Reading _____________ _____________ _____________ _____________ _____________ Observed Time ______________ ______________ ______________ ______________ ______________

23. As we have already seen, if the hands of the stop watch are returned to zero at the end of each element, the method is called ______________ and if the watch is allowed to run continuously, the method is called ________ . * Flyback * cumulative

24.Two sets of watch readings (a) & (b) for the elements of a job are given below : Elements Stop watch reading (a) (b) 0.00 0.10 0.20 0.55 o.85 0.00 0.10 0.10 0.35 0.30

Start A B C D

Identify the method of stop watch study used in (a) and (b)

* (a) cumulative

* (b) flyback

25.So far, we have discussed about recording only the stop watch reading at the end of each element. To take care of the inconsistencies due to different speeds of working of pace of work during the study for all manual elements the Rating as judged by the observer also has to be recorded. You can see the ratings recorded under column R in the example shown in the Panel1. Thus during a time study the three items to be recorded are : a) Brief description of element, or code b) Watch reading at the end of the element, and c) Rating as judged by the observer for manual elements. Out of the above three items, identify which one is required for : d) Obtaining the time taken for a element e) Taking care of different speeds of working adopted by workers. * (i) Watch reading (ii) Rating

25.We have seen earlier that the figure 100 represents the rating corresponding to standard performance in 75-100 scale. If the time study man decides that a manual element he is observing is being performed with less effective speed, he will use a rating less than 100, say 90, 80 etc., as the case may be. If, on the other hand, he decides the effective rate is above standard, he gives it a factor greater than 100, say 110, as judged by him. The ratings for an element will be inversely proportional to the time taken for different paces of working. Suppose a rating of 100 is given for a particular job when the time taken is 0.50 minutes, find out the ratings if the time observed for the same job performed by different operators are : Observed time (Mts.) Rating * 167 * 125 : 0.80 : 100 * 83 0.30 0.40 0.60 -

27.At the end f the study clock time has to be recorded. We have learnt that the three important items to be recorded during a time study are i) ii) iii) ___________________ ___________________ ___________________ * ii) Watch reading * iii) Rating for manual element

* I) element description or code

T. P. 5 ANALYSIS AND SUMMARY OF TIME STUDY 28.After the study, you will find that the study sheet is full of figures and watch readings This will be of no use to us unless these readings are analysed and summarized in the required form. We will now see the various steps involved in analysis and summary of the study sheet. Generally, cumulative method is used for time study.

The first step is to calculate the observed elemental times by successive substraction, as shown in the Panel-1. Calculate the observed times of the elements from continuous watch readings shown below : Element Start A B C D E Watch reading 0.00 0.25 0.70 0.97 1.20 1.55 Observed time. ___________________ ___________________ ___________________ ___________________ ___________________ ___________________

* 0.25

* 0.45

* 0.23

* 0.35

29.If the study mans ratings were fairly correct for a given element, the result should always be observed Time x Rating = Constant Fill up the blanks in the following example. Cycle 1 2 3 4 5 Observed time (Mts.) 0.20 0.16 0.25 0.15 0.30 80 Rating 100 125 -133 67 * 0.20 Obs. Time x Rating 0.20 0.20 0.20 -0.20

30.Rating does not stand by itself and it is always a comparison with the standard rating. The time required to perform the element at Standard Rate is constant under any of the rating scales, known as the normal time which is also known as Basic Time and is calculated as follows : Rating Observed Time x --------------------------- = Basic Time Standard Rating The Observed time for an element is 0.30 Mts. And the rating is 90 on the 75-100 scale. Then the 90 Basic time = 0.30 x ---------- = 0.27 mts. 100 Calculate the normal times in the following cases : ______________________________________________________________________________ Observed Rating Rating Basic Time Scale ______________________________________________________________________________ 0.50 100 75 - 100 _____________________ 0.70 90 75 - 100 _____________________ 0.35 110 100 - 133 _____________________ 0.25 85 100 133 _____________________ 0.40 70 60 - 80 _____________________

______________________________________________________________________________ * 0.50 * 0.63 * 0.29 * 0.16 * 0.35

31.The second step in the analysis of the time study is to convert all the observed times of elements into basic times, as shown in Panel-1. A set of watch readings and ratings (75-100 scale) are shown below. Calculate the observed time and basic times for each element. ______________________________________________________________________________ Element Rating Watch reading Observed Time Basic Time ______________________________________________________________________________ Start -0.00 ____________ _______________ A 100 0.25 ____________ _______________ B 90 0.70 ____________ _______________ C 100 0.97 ____________ _______________ D 85 1.20 ____________ _______________ E 100 1.55 ____________ _______________ ______________________________________________________________________________ Observed Time 0.25 0.45 0.27 0.23 0.35 Basic Time 0.25 0.41 0.30 0.20 0.35

A B C D E

32.The third step in the analysis of time study is tabulation of the basic times of all the elements in each cycle observed as shown in the working sheet Panel 3. The abnormal readings (too low or too high) are ignored by circling and the average of the remaining basic times of each element is calculated to obtain the Selected basic time for that element. From the set of sic times given below for a single element, arrive at the selected basic time. Basic Times (Min.) Selected Times Element A 0.20, 0.22, 0.35, 0.20, 0.23 0.14, 0.21, 0.24 --------------------------Also, identify abnormal readings. * 0.22 Min. * (Circle abnormal reading 0.35 & 0.14)

33.The fourth step is preparation of the study-summing sheet, an example of which is shown in Panel 4. The data of the head of the study summary sheet is completed by copying the details from study sheets. Other details are entered from the work sheet. The details mainly shown in the summary are element description, selected basic time, frequency of occurrence of element and number of readings observed. 34.The important steps in the analysis of a time study are given below : Preparation of summary sheet Calculation of observed times Arrive at selected basic times for each element Circulation of above steps in the proper sequence. Arrange the above steps in the proper sequence. * 2, 4, 3, 1

T.P. 6 COMMUNICATION OF STANDARD TIME FOR MANUAL OPERATIONS

35.Standard time is the total time in which a job should be completed at standard performance. From time study, we have arrived at the selected basic times for various elements. It is humanly impossible for working at standard rate throughout the shift, because a man requires relaxation to attend to personal needs and to overcome fatigue. There are bound to be some delays due to material or machine non availability. Therefore, it will not be possible to work as per the basic time throughtout the shift.

Therefore, standard time will also be ( more than / less than ) the basic time. More than The standard time is arrived at by adding allowances to basic time for relaxation and delays, as shown in the figure below :

For a particular operation Observed time = 0.50 min. Rating = 110 (75 100 scale) Relaxation allowance = o.o6 min. Contingency allowance = 0.02 min Calculate the standard time. Standard time = 0.63 min. 37.The usual practice of making provision for allowances is to add as a percentage of basic time. Generally, the personal allowance varies from 5-8% and fatigue allowance from 10-20%. The contingency allowance depends on the situation. The basic time for an operation is 4.40min. Calculate the standard time, if the allowance rates are as given below : Personal 5% Fatifue 12% Contingency 3%

Standard time 5.3 mins.

38.We have seen that the standard time for an operation is obtained by adding allowances to ________________ time. Allowances are made for personal needs, ____________________ and contingencies. The allowances are normally expressed as a _______________ of basic time. * basic * fatigue * percentage

T.P. 7 COMPUTATION OF STANDARD TIME FOR WORK WITH MACHINE

39.Let us consider the case of one worker operating one machine. During part of the work cycle the worker does some operations manually and the machine works automatically for the remaining part of the work cycle. The is represented in the Figure-2. The time during which the machine works automatically will remain the same whatever the worker does. This is an example of restricted work where the output of worker is restricted by factors beyond the control of the worker. Time taken during work cycle which is determined only by the technical factors peculiar to the machine is called Machine Controlled Time. In the above example identify the machine controlled time of the work cycle.

Fig. 2

 0.80 min. 40.After a careful study of the method, it is possible to partly distribute the manual work done by the operator to be performed while the machine is working. Thus, during a work cycle, the worker will be working for sometime, the machine will be working for a portion of the time and both worker and machine will be working for a certain portion of the time. This is represented by the figure-3. Work performed by the operator when machine is not working is called outside work. Work performed by the operator during machine working time is called inside work . Period during which the worker is idle while the machine is working is known as unoccupied time/

From the figure shown above, write down the duration of following elements :

a) Time spent for outside work ___________________ b) Time spent for inside work _____________________ c) Unoccupied time ____________________________

* a) 0.56 min.

* b) 0.56 min.

* c) 0.24 min.

41.In the case of restricted worker, calculation of allowances is lightly different from the manual operations. Personal needs allowance has to be calculated not simply on the elements of manual work but on the entire cycle time. This is because this allowance depends on the total time spent at the work place whether he is working or is idle.

Suppose the total cycle time = 2.00 min. Machine controlled time = 0.70 min.

If the rate of personal needs allowance is 5% Calculate the allowance for personal needs in minutes. 0.10 min.

42.On the other hand, fatigue allowance is necessitated by actual work done and is calculated on the basic minutes of manual work actually performed. In other words, the fatigue allowance has to be given for both inside work and outside work. Suppose the total cycle time = 2.00 min. Machine controlled time = 0.70 min. Inside work = 0.20 min. Therefore, the outside work is _________________________ min. If the fatigue allowance rate is 10%, calculate the allowance for fatigue in minutes. * 1,30 min. * 0.15 min.

43.Let us consider an example for arriving at the standard time for work performed with a machine. Total cycle time Machine controlled time Inside work = 2.00 min. = 0.70 min.

= 0.20 min.

Calculate the standard time given that, Rate of personal allowance Rate of fatigue allowance Rate of contingency allowance = 5% = 10% = 3% of

Total time including personal and fatigue allowance. Personal allowance Fatigue allowance Total cycle standard time Standard time per piece
* 0.10 min. * 0.15 min.

= _________________ = _________________ = _________________ = _________________

* 2.25 min. * 2.32 min.

44.We have seen that in the case of work with machines the personal allowance has to be given for (the entire cycle time / outside work) and fatigue allowance is required to be given for total manual working time / machine working time). * the entire cycle time * total manual working time

PANEL I

TIME STUDY TOP SHEET DEPARTMENT : Machine Shop Miscellaneous line STUDY NO : 5 PLANT MACHINE : HMT MULTI drill No. SHEET : 1 Of 6 PRODUCT / PART : bottom Cover for King Pin DATE : 4-8-82 PART NO. : 236254 TIME OFF : 7.40 AM OPERATION : drill 4 holes in the flange TIME ON : 8.30 AM MATERIAL : EN4 Steel Stamping, Normalised ELAPSED TIME : 70 Min. TOOLS & GAUGES : Plate type drilling jig-1 15/32 dia STUDIED BY : A.R.R. Standard drills 4 off CHECKED BY : N.S.V. OPERATOR : MUNUSAMY EMPLOYMENT NO.: 1234

Element Description

RPM

FEED

(1)
Studies started at 8.30 AM Job started by operation i) Clean jig with a brush Pick part, position on jig plate And tighten 2 clamps. Tilt jig plate upside down and Se cure hand clamp. Switch on spindle, lower drill Head and engage auto feed. Wait till the drilling is completed, Rinse drill head and stop spindle. Loosen hand clamp and tilt jig Loosen jig clamps, remove Component check visually And unload.

(2)

(3)

STOP WATCH READING (4)

0.00 2.70

OBSERVED TIME (5)

RATING

BASIC TIME

SUMMARY CODE (8)

(6)

(7)

2.75 3.20 0.35 0.55 450 .005 4.45 0.53 5.05

0.05 0.45 0.15 0.20 0.90 0.06 0.12

100 90 100 80 ---120 90

0.05 0.41 0.15 0.16 --0.10 0.11

A B C D E F G

0.25

0.20

100

0.20

II) A B C D E F G H Talk to Supervisor iii) 0.31 0.80 6.00 0.20 7.05 0.15 0.25 0.50 8.40 0.06 0.49 0.20 0.20 0.85 0.10 0.10 0.25 0.90 80 80 80 90 --100 90 80 --0.05 0.39 0.16 0.18 --0.10 0.09 0.20 ---

450

.005

A B C D E F G H iv) A B C D E F G H v) A B C D E F G H Wait for oil filling by Maintenance crew vi) A B C D E F G H

0.45 0.85 9.05 9.20 10.10 0.20 0.35 0.60

0.05 0.40 0.20 0.15 0.90 0.10 0.15 0.25

100 100 90 100 --100 80 880

0.05 0.40 0.18 0.15 --0.10 0.12 0.20

450

0.66 11.00 0.15 0.28 12.15 0.25 0.35 0.55 13.00 0.45 0.57 0.72 14.70 0.95 15.05 0.25 16.50

0.06 0.34 0.15 0.13 0.87 0.10 0.10 0.20 0.05 0.45 0.12 0.15 0.98 0.15 0.10 0.20 1.25

90 110 100 100 --90 100 100 100 100 110 100 --80 90 110 ---

0.05 0.37 0.15 0.13 --0.09 0.10 0.20 0.05 0.45 0.13 0.15 --0.12 0.09 0.22 --O

450

NoC hang e

0.57 17.00 0.15 0.35 18.25 0.40 0.55 0.75

0.07 0.43 0.15 0.20 0.90 0.15 0.15 0.20

100 100 90 80 --90 90 100

0.07 0.43 0.14 0.16 --0.14 0.14 0.20

PANEL 2 TIME STUDY TOP SHEET DEPARTMENT : PLANT / MACHINE : No. PRODUCT / ART : PART NO. : PART NO. : OPERATION : MATERIAL : TOOLS AND GAUGES : :
ELEMENT DESCRIPTION WATCH READING OBSERVED TIME RATING BASIC TIME SUMMARY CODE

STUDY NO. SHEET NO. DATE TIME OFF ELAS\PSED TIME STUDIED BY CHECKED BY OPERATOR EMPLOYMENT NO.

: : OF : TIME ON : : : : : :

PANEL 3 TIME STUDY WORK SHEET STUDY NO.5

ELEMENT CYCLE NO

B C BASIC TIME .41 .39 .40 .37 .45 .43 .40 .41 ..39 .40 .42 .42 .40 .41 .39 .40 .40 .41 .40 .39 .15 .16 .18 .15 .13 .14 .14 .15 .14 .15 .16 .14 .15 .15 .14 .20 .14 .16 .15 .14

D IN .16 .18 .15 .13 .15 .16 .15 .14 .16 .15 .15 .10 .15 .15 .16 .14 .15 .14 .15 .13

F MIN. .10 .10 .10 .09 .12 .14 .10 .11 .09 .09 .10 .11 .10 .11 .12 .10 .11 .10 .11 .12

DATE : 4.8.82 E O

1.

.05 .05 .05 .05 .05 .07 .05 .06 .05 .05 .05 .06 .07 .05 .06 .05 .09 .05 .06 .05

.11 .09 .12 .10 .09 .14 .10 .11 .10 .12 .09 .10 .10 .11 .10 .12 .09 .10 .09 .10

.20 .20 .20 .20 .22 .20 .20 .21 .22 .20 .20 .19 .14 .20 .20 .26 .85 .21 .20 .19

.90 .85 .90 .87 .98 .90 .90 .88 .87 .90 .90 .92 .90 .87 .88 .90 .85 .90 .92 .90

.90
1.25

2.50

1.20

0.80

TOTALS OCCASIONS AVERAGE

1.12 20 0.06

7.64 19 0.40

2.82 19 0.15

2.85 19 0.15

2.12 20 0.11

1.94 19 0.11

3.63 18 0.20

16.91 19 0.89

6.65

BASIC MINUTES PER CYCLE = 2.06 Min. (A+B+C+D+E+F+G+H)

PANEL 4 TIME STUDY SUMMARY SHEET

DEPARTMENT : Machine Shop-Miscellaneous line PLANT/MACHINE : HMT-MULTI Drill No. PRODUCT/PART : bottom cover FOR king pin PART NO. : 236254 OPERATION : Drill 4 holes in the flange MATERIAL : EN4 Steel stamping. Normalised TOOLS 7 GAUGES; Plate type drilling jig-1 15/32 Standard drills 4 Off
SUMMARY CODE ELEMENT DESCRIPTION RPM

STUDY NO DATE TIME OFF TIME ON ELAPSED TIME OPERATOR EMPL.NO. STUDIED BY CHECKED BY
FEED BASIC TIME

: : : : : ; : ; :

5 4-8-82 9.40 AM 8.30 AM 70 Min. MUNUSAMY 1234 A.R.R. N.S.V.

FREQUENCY PER CYCLE NO. OF OBSERVATIONS

A B C D F G H E

REPETITIVE Clean jig with a brush Load part on jig plate & clamp Tilt jig plate & secure hand clamp Start spindle, lower drill head and Engage auto feed Raise drill head & stop spindle Loosen hand clamp & tilt jig Loosen jig clamps, check visually And unload part. MACHINE ELEMENT (Drill 4 holes with multi drill) OCCASSIONAL Talk to Supervisor Other Interruptions

.06 .40 .15 .15 .11 .10 .20 .89

1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1

20 19 19 19 20 19 18 19

450

.005

O O

1.05 1052

2/20 3/20

CRITERION TESTS 1. Which of the following cases do you recommend for time study. a) A machine is to be enacted only once when received. b) Material of a product is changed from steel to aluminium. c) Required output is achieved and the group is earning good incentive. d) New part is introduced as an additional feature. 2. Pick out the details which is not required to identify the Product (or method). a) Name of the part b) Part number c) Supplier of raw material d) Material used for making the part. 3. Which of the following items are required to identify the Process (or method) a) Plant or machine used b) Description of operation c) Cost of the machine d) Jigs and tools used 4. The elements of work done by a clerk in a post office at the M.O.Counter are given below: a) Write details in the receipt book b) Receive money from customer and count c) Receive M.O. form from customer and check details d) Return balance amount to the customer e) Tearout receipt from the book f) Put date stamp and handover receipt sequence. Arrange the above elements in the proper sequence. 5. Six operations and the six types of categories of elements are given below : Match the operation with the type of element. Operations 1) 2) 3) 4) 5) 6) Shovel coal into a lorry Screw cutting by an automatic lathe Load every component on the machine for hobbing Switching on a machine Clearing burrs from the machine whenever required Sawing logs with a hand saw Type of element Machine Repetitive Manual Occasional Constant Variable

6. If the stop watch is allowed to run continuously during a time study, the method is called ( cumulative / flyback ) Rating

7. Observed time

x ---------------------- = Standard Rating The above formula is used for calculating the ______________________ time.

8. Basic time is the time required to perform the job at ____________________ rate. Basic time is also known as ____________________ time. 9. The observed time for an element is 0.60 min. and the rating given by the observed is 110 (75100 scale). Calculate the basic time for the element.

10. The standard time is obtained by adding _________________ to the _________________ time.

11. For a manual operation the basic time is 1.20 min. Personal and fatigue allowances are at 5% and 8% respectively. Contingency has to allowed at 3% of the time including personal and fatigue allowance. Calculate the standard time.

12. For a job done on a machine, the total cycle time is 2.50 min. and the machine controlled time is 0.80 min. Calculate the standard time with the following data :

Inside work 0.30 min. Personal allowance 5% Fatigue allowance 10% Contingency at 2% of time including personal and fatigue allowances.

ANSWERS 1) b and c 2) c 3) a,b,d 4) c,b,d,a,e,f 5) 1) Manual 2) Machine 3) Repetitive 4) Constant 5) Occasional 6) Variable 6) Cumulative 7) Basic

8) Standard; Normal; 9) 0.66 min. 10) allowances, basic

11) 1.40 min. 12) 2.88 min.

NCS Paper III Work Measurement- Production Study & Work Sampling PT 10.1 1. Production Study 1) Definition 2) Purpose 3) Procedure 2. Work Sampling 4) 5) 6) 7) 8) Definition Purpose Procedure Confidence level and accuracy Calculation No. of observations required

3. Other Techniques 1) Names of 3 other techniques of Work Measurement T.P.1. PRODUCTION STUDY: DEFINITION

1) In the previous lesion PT-5 we have seen the procedure of Time Study to arrive at the standard Time for a job. Now we shall discuss about some of the other techniques of Work Measurement. Production Study is one of the techniques of Work Measurement. It consists of conducting a continuous time study for one or more shifts. Production study is a technique of .. Identify which of the following cases is a Production Study: (a) Continuous time study for 10 cycles of operation (b) Intermittent time study for about 6 Hrs. (c) Continuous time study for 2 shifts (16 Hrs.) of crank case top milling operations *Work Measurement * c
T.P.2 PRODUCTION STUDY: PURPOSE 2) Two reasons for conduction a Production Study are: i) ii) to observe the extent of waiting time and other delays to detain data for determining interference and contingency allowances for a job

State whether we can adopt production study in the following cases: a) To establish elemental times Yes or No b) To find out extent of delay due to shortage of material Yes or No c) To find out the extent of time lost due to tool changing in precision job Yes or No. * a) No b) Yes c) Yes 3) Two more reasons for conducting a Production Study are: i) ii) to obtain data regarding reasons when output shows a reading trend to check the accuracy of existing time standards

Production study is connected also to analyse reasons for .. in output and to check the existing.. * reduction * time standard
T.P.3 PRODUCTION STUDY: PROCEDURE

1) For conducting production study the same type of sheets meant for Time Study are used. An example of a portion of production study is shown at Panel-I. The stopwatch is allowed to run continuously and in addition, the time is recorded every half-hour from an ordinary watch. The study is recorded in four sheets out of which the first two sheets are given in Panel-I. From the example given at Para-1 identify the following details: a) what is the operation performed b) type of machine. c)whether rating is given for the operation Yes or No *a) Drill & ream two holes in a casing .. ..

*b) Radial drill *c) Yes

2) Repetitive short duration elements are not recorded, but time when each piece is completed is recorded. Rating is given for a complete cycle of the job. The Basic Time is calculated by multiplying the observed time with rating. From the example of Production Study shown at Panel-1, we can say that a) the rating scale used is (0-100, 0-133) .. b) detailed elemental study is made for (4th Pce or 5th Pce).. c) total number of pieces produced during 3 hours of the shift (i.e. upto 10 AM) is (9 pcs or 10 pcs)

PRODUCTION STUDY TOP SHEET Department : SHOP : I Misc. Line Study No.6 Plant/MC : Radial Drill Sheet No.1/4 Production/Part: Casing Date 5-8-98 Part No : F 24 200 22 Time on : 7.30 am Operation : Drill & ream two Holes Time off: 4.00 pm

Material : EN8 STEEL STAMPE Total & Fixtures: Drilling Jig-1 Drill Reamer 0.875

Elapsed Time 480Mts Studied by : R.K. Checked by: NSV Operator : Murthy

Job Description Study Standard at 7.30 AM Late start by operator Initial setting adjustments Discussions with Foremen Prodn. Starts 1st piece off - 2nd piece off - 3rd piece off - 4th piece off th 5 Piece Detailed Study Cleaning the brush Pick & load component in position & clean Move Radial arms, Insert drill in spindle and bush in jig Change speed & feed Advance spindle, engage feed Drill one hole 540 rpm 0.2 mm Position & drill other hole Remove drill from spindle & bushes from jig Insert reamer in spindle & bushes in jig Change speed & feed Position & ream 1st hole 150 rpm/0.50 mm Position & ream 2nd hole Remove reamer & bushes Loosen clamps, remove Component & unload Tea time Reamer exchanged & setup adj. 6th piece 7th piece 8th piece 9th piece Quality problem regarding sizing discussion Reamer removed & checked by quality & OK 10th piece

PANEL 1 Stop Watch Observed Reading time Time 00.00 00.00 30.00 30.00 10.00 10.00 25.00 15.00 01.00 6.00 07.00 6.00 12.75 5.75 18.50 5.75 18.75 19.50 20.25 20.40 20.55 21.30 22.05 22.20 22.35 22.50 23.00 23.50 23.65 24.00 30.00 15.00 21.00 26.75 02.50 8.00 20.00 30.00 6.00 0.25 0.75 0.75 0.15 0.15 0.75 0.75 0.15 0.15 0.15 0.50 0.50 0.50 0.35 6.00 15.00 6.00 5.75 5.75 5.50 12.00 10.00 6.00

Rating 90 90 95 95 100 90 70 90 90 80 70 90 90 100 90 90 95 95 100 90

Basic time

Summary Code - (7.30) P (8.00) S D W(8.30) W W W W W W W W W W W W W W W W W P (9.00) S W W W (9.30) W D D (10.00) W

5.40 5.40 5.46 5.46 0.25 0.68 0.52 0.14 0.14 0.75 0.60 0.11 0.14 0.14 0.50 0.50 0.15 0.32 5.40 5.46 5.46 5.50 5.40

*a) 0-100

*b)5th piece *c) 9 pieces

1) Time lost due to various types of delays or interruptions are recorded as can be seen from the example. A separate code is marked for each type of activity or delay in the summary of code column. Later the study is analysed similar to Time Study by grouping the observed times and basic times (where applicable) of each type of activity or delay. (Please refer lesson PT-5 for details of Time Study analysis). In the example shown at Panel-2 pick out the code used for the following type of delays and interruptions:a) personal time like drinking tea etc. --------------------b) setting --------------------c) waiting for material -------------------d) machine repair -------------------* a) P *b) S *c)WFM *d)M/R

7) The analysis of the study is summarized as shown at Panel-2. From the study summary shown, identify the following details. a) total duration of study in minutes --------------------b) proportion of working time as a % of total studied time ------------c) Proportion of delays (waiting for material, setting and M/c repair) as a % of total studied time ---------------d) total No. of pieces produced during the study period------------e) basic time per piece ------------------SUMMARY OF PRODUCTION STUDY Dept.: SHOP-I MISC LINE Part No. F 24 200 22 Operation: CASING Study No.6 Date 5.8.98 PANEL-2 Observed Time Summary Code Element Description Mts % of total time 54 21 8 Basic Time (Where applicable) (mts)

Prodn.Nos

Basic per pce. (Mts)

W P D

Working Personnel Discussions (with foreman, quality etc) Waiting for Material Setting

259.50 101.00 37.00

239.78 -

44 -

5.44 -

WFM

27.50

40.00

M/R

Machine Repair

15.00 480.00

3 100 *d) 44 Nos.

*a) 480 mts.

*b) 54%

*c)17%

*e)5.44 mts.

8) Thus, we can say that a production study is useful in finding out Proportion of available time spent in actual work and the proportion of time last due to delays and interruptions. We are also able to check the actual cycle time or pieces. But only one shift study is (sufficient or not sufficient) and the conclusions should be made based on a maximum of 3 to 4 shifts. not sufficient

T.P. 4 WORK SAMPLING: DEFINITION

9) Work sampling is another technique of Work Measurement. It is also known by the names Ratio delay Study; Activity Sampling and Random Observation Method. In the case of time study we can study only one machine, process or operator. Work sampling is used to study non-repetitive activity of a group of machines, processes or operators. Work sampling is another technique of _____________ ________________. Identify in which of the following cases work sampling is to be applied: a) a group of machinists making spare parts as and when needed by the maintenance department b) one milling machine working for milling operations c) 6 machine tools operated in a jobbing shop d) 5 Fitters attending to break down jobs. * work measurement * (a) * (b) *(c)

10) Let us consider an example of the work done by maintenance fitters during a period of 8 hours shift. Suppose we observe him at random 20 times during the shift and record whether he is working or idle in each observation. The total period of 8 hours is known as Population. Each instantaneous observation we make is called a random sample or random observation. Suppose we observe at random a maintenance welder 60 times during two shifts. The total duration of 16 hrs, is (Population / sample) and each observation is called a (periodic or random) sample * population * random

11) Work sampling consists of making random instantaneous observations of a group of machines or operators and recording what is happening to each machine or men at that instant. At each observation we have to record whether each machine or man is working or idle and the reason in case of idleness. In work sampling we make ____________ and ____________ observations of a __________________ of machines or men. * random * instantaneous *group
T.P. 5 WORK SAMPLING: PURPOSE

12) Three reasons for conduction a work sampling are to find out: 1) Proportion of the available or shift time spent by a group of men or machines for working or for production. 2) Proportion of available time used up by delays and the reasons 3) Proportion of various activities performed by a group of workers or machines under study. Which of the following statements be made as a result of work-sampling today: a) The men work for 75% of the time during the shift b) The machines are idle for 40% of the time during the shift c) Fitter changes a gasket in 2.7 min. d) One machine was idle throughout the shift due to break down. * a) * b) * c)
T.P. 6 WORK SAMPLING PROCEDURE

13) A sketch illustrating a simple work sampling study is shown at Panel-3 PANEL 3 SKETCH ILLUSTRATING A SIMPLE WORK SAMPLING STUDY
12noon

WORKING IDLE

RANDOM OBSERVATI ONS

4pm

3pm

2pm

1pm

8am

9am

CLOCK TIME

TOTAL TIME 8 HRS 285 Mts 185 Mts 40 24 16

11am

10am

s SUMMARY

-----------------------------------------------------------------------------------------------------------AS PER PRODUCTION STUDY AS PER WORK SAMPLING STUDY -----------------------------------------------------------------------------------------------------------Mts Working Time 285 Idle Time Total 195 480 % 59.04 Random Observations-Working 40.06 100.00 Idle Total No. 24 16 40 % 60 40 100

-----------------------------------------------------------------------------------------------------------The working and the idle periods of a machine are show in the form of a bar chart drawn for a total period of 8 hours. (8AM to 4 PM). Instantaneous observations are made at random which are shown by vertical arrows. At that instant if the machine is found working, it is a working observation, otherwise it is an idle observation. From the illustration shown identify:a) No. of random observations made idle, working & total idle------------------------Nos. Working-----------------Nos. Total---------------------Nos. b) Actual total idle time and working time from the bar chart are total idle time---------------mts; total working time = --------------mts. * a) 16, 24, 40 *b) 195 mts. 285 mts.

14) In the illustration shown at Panel-3 the results of the study based on random observations and also a full shift production study are summarized at the bottom. When we compare, it can be seen that using random observation method almost the same result can be obtained as can be got from a production study. a) The proportion of working time as per production study is---------------% and based on random observations it is ---------------% b) The proportion of idle time as per production study is--------------% and based on random observation it is--------------% ----------------------------------------------------------------------------------------------------------------*a) 59.4%; 60% *b) 406%; 40%

15) In a period of 10 shifts of 8 hours duration each, a maintenance fitter was observed at random 200 times. Out of this he was found working in 120 observations and idle in 80 observations. From this we calculate his activity as 120 / 200 x 100 = 60% working. Then we conclude that in a shift of 8 hours he works for 8 x 0.6 = 4.8 hours. In other words, from

the random samples, we can conclude about the Population. A welder was found to be working 320 times when random observations were made 400 times. Calculate his activity of working. Also estimate how long he works in a period of 8 hours on the job ----------------------------------------------------------------------------------------------------------------*80% working 6.4 hours 16) In the above example we have considered only one fitter. Work sampling is conducted to observe the activity of a group (generally 4-10) of men or machines performing nonrepetitive jobs. If time study is conducted, it takes enormous time to study the group and so expensive. Identify which of the following observations relate to work sampling:---------a) a machine takes 2.3 minutes to complete a job b) a clerk takes 3.6 minutes to process one application for railway ticket reservation c) in a Tool Room 5 machines were working and 4 machines were idle at 10.15 AM To study a group activity work sampling takes (less or more) time compared to time study. --------------------------------------------------------------------------------------------------------------- c) less

17) An example of recording work sampling observations is shown at Panel-4. The time at which each set of observations is made has been selected at random. You can see that alphabetic code is used for representing various activities when observation is made. The number or reading for each code is added after the study, to summarize, carefully observe the example and identify: a) total duration covered by the study b) no. of random observations made during the period per operator c) no. of operators covered by the study

WORK SAMPLING STUDY SHEET

PANEL-4

Dept. : TOOL ROOM STUDY NO. Section: Machining Date: 1/8/98 Group Studies: Turners and Machinists Shift: DAY Activity: Machining jobs for jigs & fixtures Observer: NSV ----------------------------------------------------------------------------------------------------------------MACHINE OR OPERATOR Time 1 2 3 4 5 6 7 8 9 10 Remarks

7.35 7.45 7.50 8.00 8.05 8.15 9.05 9.25 9.30 9.35 9.45 9.50 10.00 10.10 10.15 10.40 10.50 11.00 11.10 11.15 11.25 12.10 12.30 12.45 12.55 13.00 13.10 13.15 13.25 13.40 13.50 14.00 14.10 14.25 14.30 14.45 14.50 15.15 15.40 15.55

A A D W W W I A W W W W A W W W I D W W A

A A I W W W I I W W W W A W W W I D W W A

A A I I D W I A W W W A W W W W I D W W A W W W W I I W W W D I W W W I W W I A

A A I I D W I I W D W A W W W W I D W W A W W W W I I D W W I D W W W I W W I A

A A I W W I I I W D W W W D W W W W I W A W W W W I I W W W A D W W W I W W I A

A A I W D I I A W W W W W D W W W W I W A W W W W I I W W W D W W D W W W I W A

A A I I W W I I I W W A I I W W W I I W A W W W I I I I W W W W W D I W W W I A

A A I W W W I I I I D A I I W W W D D D D W W W I I I W W W D D D D W W W I I A

A A I W W W I I W W D W W A A A A W A A A W W W W I I W W W A A A A W W W W A A

A A I D W W I A W W W W D W W W W W A A A W W W W I I D W W I I D W W W W W I A

Late starting of work

Lunch 11.30 am to 12 noon

W W W W W W W W I I I I W D W W W W W W W I D D I D A W W W W W W W I I A A

Early stoppage of work

Code Activity
W Working(includes waiting while machine works Discussions

Code Activity A Away from work spot

Idle on job

STUDY SUMMARY Code W D A I Total 1 25 3 6 6 40 2 23 4 5 8 40 3 24 3 4 9 40 4 21 5 4 10 40 5 22 4 5 9 40 * c) 10 6 24 5 4 7 40 7 20 1 5 14 40 8 15 9 4 12 40 9 20 1 15 4 40 10 22 5 6 7 40 Total % 216 54 40 10 58 14.5 86 21.5 400 100

* a) 8 Hours

* b) 40

----------------------------------------------------------------------------------------------------------------T.P 7 WORK SAMPLING: CONFIDENCE LEVEL & ACCURACY

18) Work sampling, as its name indicates, is a sampling techniques based on statistical concepts. It is necessary to know 2 terms while dealing with work sampling in order to decide the number of observations to be made. They are confidence level and accuracy. Number of observations to be made in a work sampling study depends upon ----------------- and -----------* Confidence level * accuracy

19) CONFIDENECE LEVEL Let us again consider the example of Maintenance Fitter mentioned in frame No.15. We say that his activity is 60% working based on sampling at 95% confidence level. This means that if we make number of studies in future again, in 95% of the studies his work activity will be around 60% and 5% of the cases it will be different from 60%. In a work sampling study, the activity of a welder was 80% working at 95% confidence level. We can say that if we study him again a number of times in future, in 5% of the cases his activity will be a) exactly 80% (c) b) around 80% c) different from 80%

20) ACCURCY Again considering the example of fitter, we say that the activity is 60% working at 5% accuracy. This means that in future, if a number of studies are made, his activity will be found to be 60 + or (5% of 60) i.e. it will be between 60 - 3 = 57 and 60 + 3 = 63. a) 70% and 80% (b) b) 72% and 88%

21) CONFIDENCE LEVEL AND ACCURCY In the example of Fitters activity study, we say that the activity is 60% working at 95% confidence level and 5% accuracy. This means that in future if we study a number of times, in 95% of the cases the activity of the fitter will be found between 57% and 63%. In the example of work sampling of Welders activities it is found that 80% working at 95%

confidence level and 5% accuracy. This means that in future if a number of studies are conducted in 95% cases---------- and in 5% cases------------. a) In 95% cases the work activity will be between 70% and 90% b) In 95% cases the work activity will be between 76% and 84% c) In 5% cases the work activity will be between 76% and 84% d) In 5% cases the work activity will be between 70% and 90% * (b) * (c)

T.P. WORK SAMPLING: NO. OF OBSERVATIONS REQUIRED

22) As already mentioned, work sampling is a statistical technique. To ensure a given level of confidence level and accuracy, adequate number of random observations have to be made. Normally a confidence level of 95% and accuracy of 5% are adopted. The formula for calculating required number of observations (N) for 95% confidence level and 5% accuracy is given below: 4 (1 P) N= ----------------- for 95% Conf.level S2 P N for 4 1P (1-P) 5% Acc --------- x ------- = 1600-----(0.05)2 P P

Where P is the activity (expressed as a decimal) from the initial work sampling studies conducted for 2 or 3 shifts. S is accuracy.

Considering the example of Fitters study where the activity is 60% i.e. P = 0.6 (1 0.06) (0.4) No. of observations required = N = 1600------------- = 1600 X -------- = 1067 (0.6) (0.6) In the case of welders study the activity was 80% working. For 95% confidence level and 5% accuracy the random observations required (1 - -----) = 1600 ----------- = ____________ -----------* 0.8 * 0.8 * 400 23) We have seen the formula for calculating the number of observations required. If the No. of observations already taken are less than this number, further studies are conducted to make up the shortage and the procedure is repeated till adequate observations are made. Based on 3 days work sampling studies the activity was found to be 70% and the number of observations is 360. For 95% confidence level and 50% accuracy, the No. of reading required.

(1 - -----) = 1600 ----------- = ____________ \-----------Therefore (a) No. of observations already made is (adequate or inadequate)

(b) Further studies are required and ------- more observations have to made. *0.7 * 0.7 * 686 *(a) inadequate *(b) 326

24) To summarize what we have discussed about work sampling so far:A. work sampling is a technique of ------------------- ----------------------B. R--------- and I -----------observations are made on a ---- of men or machines

C. Work sampling is generally applied where the work performed is (repetitive/non repetitive) in nature D. Adequate observations are to be made to ensure the desired --------------- and ----

E. Generally adopted values for confidence level and accuracy are -------i) 99% and 10% ii) 68% and 5% iii) 95% and 5%

* a) work measurement * b) Random; Instantaneous group * c) non-repetitive * b) confidence level; accuracy * e) 95% and 5%

T.P 9 OTHER TECHNIQUES OF WORK MEASUREMENT

25) We have seen in detail 2 of the other techniques of work measurement. There are 3 more techniques, the names of which are mentioned below:1) Synthetic or standard data method 2) Analytical estimation and 3) Predetermined Motion Time Systems (PMTS) These methods are not dealt in detail, as they are outside the scope. Give the name of 5 techniques of Work Measurement other than Time Study a) b) c) d)-----------------estimation e) ------------------- ---------------- time systems * a) Production Study *b) Work Sampling *c) Synthetic method d) Analytical estimation *e) Predetermined Motion Time Systems 26) SYNTHETIC METHOD Now we shall briefly discuss about the three more techniques of work measurement. Synthesis means to combine or integrate the constituted elements to make up the complete job. Considering the example of a drilling job, it consists of Loading, Unloading, Manipulation and actual Machining elements. In synthetic method, a large number of time

studies are analysed and summarized in the form of tables and formulas giving time for various types of elements like Loading, Unloading Manipulation etc. The summarized time data is called Standard Data. Then total time required for a job is built up by totaling the elemental times from the synthetic data. In synthetic or standard data method a large number of _____________ _____________ are summarized in the form of tables and formulae. The elemental times required for a job are obtained from (fresh time studies / standard data ).

* Time Studies

* Standard data

27) An example of standard data is shown at Panel-5 for drilling operation. PANEL 5 STANDARD TIME DATA DRILLING IN A RADIAL DRILLING MACHINE (A) (B) Start and Stop machine Load and Unload Part : Weight if part in kgs. Time in minutes 0.10 Min.

2.5 0.25

2.5-12.5 0.30

12.5-20 0.40

(C)

Clean jig / fixture using brush Jig Weight range (kgs.) 10 kg. Time in minutes 0.10

10-20 0.15

Above 20 0.20

(D) Drilling holes (Machining operation*) _______________________________________________________________________ ( Diameter of hole (in inches) ________________________________________________________ No. of holes * * 1* 1-1/4* ________________________________________________________ Time in minutes for a Depth of 1* _______________________________________________________________________ 1. 2. 3. 4. 0.30 0.55 0.80 1.05 0.40 0.75 1.10 1.45 0.62 1.19 1.76 2.33 2.02 3.97 5.92 7.87

_______________________________________________________________________ * Times for machining operation includes machine manipulation and drilling elements. The drilling times are calculated by using the formula. (Depth of the hole (approach + over run) x (No. of holes) ____________________________________________________________ RPM x Feed Feed : & dia .008/Rev. 1 & 1-1/4 dia .005/Rev.

Drilling time =

Cutting speed RPM = -----------------------

If we consider a work piece of weight 2.5 and if the jig weight is 10 kg. The time for drilling 3 holes of dia is calculated from the standard data as follows : a) b) c) d) Start and stop machine Load and unload part (2.5 kg) Clean jig (10 kg) Drill 3 holes of dia Allowance (15%) Total 0.10 min. . 0.25 min. 0.10 min. 0.80 min. 1.25 min. 0.19 min. __________ 1.44 Std. Min. __________-

If 4 holes of diameter are to be drilled in a work piece of 7 kg. In weight using a jig of 15 kg. Compute the standard time. Assume 15% allowance. If 4 holes of diameter are to be drilled in a work piece of 7 kg. In weight using a jig of 15 kg. Compute the standard time. Assume 15% allowance. Start and stop machine Load and unload part (7 kg.) Clean jig (15 kg.) Drill 4 holes of dia min. (From Std. Data) min. min. min. ______________ .. Allowance (15%) .. ______________ Total Std. Min. ______________ * 1.45 *2.00 * 0.30 *2.30 minutes

* 0.10

* 0.30

* 0.15

28.Synthetic method is adopted for establishing time standards for new jobs or operations or already studied machining or assembly operations. The advantages are as follows : Times are reliable because they are based on large number of time studies. Times are constant because they are taken from standard data. There is no need to repeat time studies which consume lot of time. Synthetic method is applied for (new or already studied) machines or operations. The times established by this method are (reliable or unreliable ) and (consistent or inconsistent). * already studies * reliable * consistant

29.ANALYTICAL ESTIMATION Analytical estimation is another technique of work measurement. Here the time required for elements are estimated from knowledge and practical experience of the men about the elements. Therefore, men who are skilled and experienced in the concerned work are employed as estimators. Analytical estimation is used for establishing times for (a) plant maintenance and repair work and (b) for jobs required to be made as per customer requirement like building of cranes, hoists, fabrications, etc.

Analytical estimation is based on (time studies / knowledge and experience) of the elements. The method is particularly useful for sending quotations and scheduling of customer made one time orders. * knowledge and experience 30.PREDETERMINED MOTION TIME SYSTEMS (PMTS) Predetermined Motion Time Systems (PMTS) is the name given to the collection of various systems of work measurement in which the basic human motions are classified into various categories like REACH, MOVE, TURN, GRASP etc. and time values are given for each type of motion based on the conditions and magnitude. PMTS are used to establish the time standards for manual jobs obly. PMTS consists of assigning time values to ________________ ___________________ elements. It is used to measure (machine / manual) jobs only. * Basic human * manual

31.In PMTS a manual job is broken up into basic human elements in the proper, sequence. The time values of all these basic human elements are added, to build up the time required for the jhob. Let us consider a simple example of removing the cap from a fountain pen and get ready for writing. Find the proper sequence of the basic elements given below : a) b) c) d) * b Unscrew cap from pen and place on table, with left hand Reach and get pen from holder, with right hand Move pen (without cap) to writing pad, with right hand Reposition pen ready for writing. * a * c * d

32.PMTS has all the advantages of synthetic method, but can be applied to only manual operations. The time for basic human motions are uniform at all places where the same system is used and hence universally accepted. The distinct advantage is that time studies are not required. Therefore, time standard can be fixed (before / after ) the job is performed and the standard is available for the planning and estimating of new jobs. The accuracy of the standard depends on the ability of the Work Study Man to clearly visualize the sequence of basic motions required to perform the job. Therefore, PMTS can be applied only with suitably qualified and trained workstudy men only. * before CRITERION TESTS

Production study is a technique of _______________ ______________________. It consists of conducting a Time Study on a job of a worker continuously for one or more (minutes or hours or shifts). Reasons for conducting a Production Study are a) To know the extent of waiting time or displays b) To accurately determine the elemental times c) To check accuracy of existing time standards

Yes or No Yes or No Yes or No

During the analysis of a Production Study the following details are obtained. Fill up the blanks: Minutes Working time Material delay Break-downs Personal time Others 300 mts. 100 40 30 10 ____________ _________ mts. ____________ Percentage of Total Time ____________________ ____________________ ____________________ ____________________ ____________________ _____________________ ___________________ _____________________

Work sampling is another technique of _________________ . Generally, work sampling is used for studying ( repetitive / non-repetitive ) jobs performed by ( individual / a group of ) operators or machines. Reasons for conducting a work sampling study are : To know proportion of time spent for useful work To know proportion of time lost due to delays To accurately determine number of men required To know the activity of individual operators in a group Yes Yes Yes Yes or or or or No No No No

The following details pertain to summary of a work sampling study conducted on a group of 12 looms in a textile mill. Fill in the blanks. No. of observations 280 120 80 __________ ______ __________ Percentage __________ __________ __________ ______________ __________ ______________

Working Idle Breakdown Total

The No. of readings required in a work sampling study depends on ___________ and __________ . a) Confidence level b) No. of machines studied c) Accuracy d) Type of job performed N = 1800 (1 ---P ) is the formula for obtaining the required No. of observations for confidence level and _______________ accuracy, in a work sampling study. P______

In a work sampling study the activity of a group of clerks in a Bank was found to be 60% working. The confidence level is 95% with an accuracy of 5%. This means that if we happen to study in future in ( 5% / 95% ) of the cases the activity will be between ______________ and ______________ . 500 random observations were made on a group of clerks in a post office and the activity was found to be 55% working. Determine how many more observations are required to ensure 95% confidence level and 5% accuracy. Name three techniques of work management other than Time Study, Production Study and Work Sampling.

Match the following : Production Study Work Sampling P.M.T.S Analytical estimation Synthetic method

I) Knowledge & Past experience of concerned elements ii) Non-repetitive work performed by a group of men or machines iii) Continuous time study for one or more shirts. iv) Standard data based on past time studies v) Basic human motions

ANSWERS 1. Work Measurement ; Shifts 2. a) Yes b) No c) Yes 3. 480 mts ; percentages : 62.5, 20.8, 8.3, 6.3, 2.1 4. Work Measurement ; non-repetitive ; a group of 5. a) Yes b) Yes c) No d) Yes 6. 480 observations ; percentages : 58.3, 25.0, 16.7 7. a) and c 8. 95% ; 5% 9. 95%; 57% and 63% 10. 809 further observations required 11. a) Synthesis b) Analytical estimation and c) Predetermined Motion Time Systems (PMTS) 12. a) iii b) ii c) v d) I e) iv

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III

INCENTIVES--1

PT 11.1

T.P.1 INTRODUCTION
1.There was a school boy named Mohan who got 60% marks in Mathematics examination. His parents desired that Mohan would get t least 80% in the subject in the next examination. Therefore the parents first encouraged the boy that if he did well in mathematics he could get higher marks. They promised him to give a cash prize of Rs.200/- if he scored 80% marks in the next mathematics examination. The parents were offering financial _________________ to Mohan to attain the desired performance. This method of motivating the people by material rewards is called _________________ motivation. * incentive * Positive 2.Some parents get angry if their children do not get good marks in the examination and frighten them with punishment, if the children do not improve their performance, In such cases some children study more out of fear but do not get interested in studies. They would not put in their best efforts. Such type of motivation is called as ____________________ n\motivation. With fear children are most likely not to _________________ their performance. * negative * improve 3.Consider now a situation in industry. The Supervisor may go on shouting at the worker to produce more. Alternatively, the worker may be offered certain incentives if he achieves better results. Offering an incentive will ____________________ the worker, Threatening and shouting at him may not __________________ him to produce more. * motivate * motivate

T.P. 2 DEFINITION OF INCENTIVE

4.Incentive is a system of reward designed to ____________________ a worker to achieve a desired level of ____________________ . * Motivate * performance 5.Incentive may be Monetary or Non-Monetary. When a person achieves a goal, we may give him a letter of appreciation. This is a Non-Monitory incentive. But if we give him a cash award such as Rs.50/- it is _________________________ incentive. * monetary 6.Wage incentive is a system of paying monetary benefit which is linked to the degree of success in achieving a desired __________________________ . objective

T.P. 3 EFFECT OF INCENTIVE ON PRODUCTIVITY / PROFITS 7.Incentive is a reward or doing more and better work. It is also called as a work reward. A worker, who wants more incentive, will naturally produce more, when there is an incentive scheme

linked with production. Thus, the worker, who is interested to get more incentive through incentives, will _________________ his output. * increase 8.Thus, increase in output is possible by having a good incentive scheme. Productivity of a worker can be expressed as his output /working hour. When he increases his output/hour his _____________ \_____ increases. * productivity 9.Consider a simple example. A worker usually produces 100 Nos/day. An incentive scheme is introduced for him which makes him eligible to receive Rs.1/- extra as incentive, whenever he produced 110 Nos/day. Thus to get Rs.1/- more as an incentive, he has to given an output of 110 Nos/day, instead of 100 Nos/day. His usual productivity is _______________ Nos/day. Because of the incentive his productivity has increased to ____________ Nos/day/ * 100 * 110

10. For the company, the production has increased. Hence, more quantity of output is available for selling than before. With the same resources, output and sales can be increased with the incentive scheme without proportionate increase in the production expenses. Obviously, there should be an _________________ in profit if the adopted incentive scheme is good. * increase

T.P. 4 EFFECT IF INCENTIVE ON COST AND WAGES

11.Assume the following data, as an example. Output Labour cost Material cost Overhead : 100 Nos/day Rs. / day Cost 2.00 5.00 3.00 ----------1000.0 ------------10.00 ------------Rs. Per piece

200.00 500.00 300.00 ----------

Suppose a simple incentive is offered by which Rs.20/- per day is given as incentive for increasing the output to 140/- Nos. New data will be : Output 140 Nos./day Labour cost Material cost Overhead Total = Rs. / day 220.00 740.00 300.00 Rs. / piece 1.57 5.00 2,13

----------------- ------------1260.00 8.70 ---------------- ------------

The overhead cost per piece will be reduced from Rs.3/- to Rs. ____________ and there is _______________ as a result of introducing the incentive scheme. * 2.13 * reduction * 8.70

12.Did you think as to why the cost per piece is reduced ? Labour cost per piece is reduced since increase in output more than offsets the incentive amount. Again, generally total overhead such as supervisory salaries, rent, etc. remain constant irrespective of output. When the output increases overhead per piece _____________ . Thus, incentive helps in cost __________________ . * decreased * reduction

13.In the same example, suppose there are 10 production workers. Wages / man / day before introducing incentives = Rs.200 ---------- = Rs.20 10 with the incentive, wages / man / day = 200+20 ---------- = Rs.22 10 Incentives scheme helps worker in getting an ____________________ in the payments received. increase

14.Thus, we note that the incentive scheme is desirable because : a) Wages are __________________ b) Profit is __________________ c) Productivity is __________________ d) Cost is __________________ * a) increased * b) increased * c) increased * d) reduced

T.P. 5 CHARACTERISTICS OF GOOD INCENTIVE SCHEME

15.An incentive scheme should be simple and easy to understand by the worker, for whom it is meant. If it is very complicated, the worker will not be able to understand, and will not be
motivated to produce more. Incentive scheme, therefore ( should or should not ) contain complicated calculations. * should not 16.Incentive scheme should be designed in such a way as to introduce equity among the employees. Remember that the incentive scheme is a work reward scheme. Reward should be related to _______________ . There is a socialist principle that to teach according to his contribution. The worker who produces more should get more. * performance

17.When a system of incentive is introduced, it is necessary to give a frequent feedback to the workers. For instance, if the incentive scheme is based on productivity of workers it would be wise to inform the workers about their ________________________level on a weekly basis, if not on a daily basis. * productivity
18.Such a feed back serves two purposes : To tell the workers as to where they are ; and To make them improve their performance. On the other hand, if frequent feed back information is not provided workers may not be able to ________________ their performance, in time. * improve 19.Workers should be shown all facts relating to the incentive calculations. There should be no scope for creating any suspicion among the workers. Fairplay must be demotive. Similarly, if any computational errors are made, there must be provisions to ( correct or hide ) the errors. * correct 20.Incentive amount offered must be reasonable adequate. Suppose a worker gets Rs.500/- as ( basic + DA ) and he works at 75% performance level. ( Please refer to the rating scale 75 100 taught in time study ) If it is desired to increase the performance to 100%, we must offer an incentive amount in the region of Rs.150 170/-/ Too little incentive ( will / will not ) motive employees. * will not 21. Whenever recognized Trade Unions exist, it would be wise to make the incentive scheme as part of the wage contract. This will ensure the fairness of the __________________ scheme to all workers. Similarly, all managers and supervisors should be provided with a copy of the incentive scheme of the company. * incentive 22.Now that you have got number of ideas on incentive, would you not like to answer the following? a) Incentive scheme is designed to increase the emoluments of a worker, if his productivity ______________________ . b) It is necessary to _________________ if a good wage incentive scheme is provided. c) Cost of a product will get ________________ if a good wage incentive scheme is provided. * a) improves * b) communicate * c) reduced

T.P. 6 PRE-REQUISITIES TO START AN INCENTIVE SCHEME

23.The purpose of starting an incentive scheme is to increase production and productivity. Suppose you are working in a Tyre Manufacturing Company, the output of your company is say 2000 tyres/day, also assume that your company is also to sell only at the rate of 1800 tyres/day. In this situation, is it wise to start an incentive scheme? (yes or No ) * No 24.No, because, the result of increased output thro the introduction of incentive scheme, is conflicting with the fact that the company is unable to sell even its present production. Again, if there is an inadequate supply of inputs like power, raw materials etc, is it proper to start an incentive scheme? * No 25.No, because the workers will not be able to do the work continuously and earn a steady income. Suppose that there are frequent design modifications in the products, if an incentive scheme is started, frequent changes are needed in time standards. This would result in men losing _____________________ in the scheme. * confidence 26.Suppose there are frequent work stoppages in a company, is it appropriate to go in for a Wage Incentive Scheme? (Yes / No) * No

27Assume that the plant and machinery of a company are not kept in good condition. Obviously the company should not venture to step in to start a wage incentive scheme because workers )will or will not) be able to earn a steady incentive bonus in such situations. * will not 28.Suppose a factory has just been started and stable conditions are not yet achieved, we (should or should not) start an incentive scheme in such a set up. * should not 29. If in a factory, the current productivity levels vary too much among different groups, we must first attempt to improve the production levels of the groups which are very low. Then only, we must examine any proposal for a wage incentive scheme. Otherwise the incentive scheme may ________________________ . * fail 30.Similarly if an incentive scheme is introduced in a factory where there are many surplus employees it can only help to ( increase or decrease ) the idle time of workers. * increase

31.It is better to start an incentive scheme only after the completion of ________________ .

* work study

32.Let us now have a review of the conditions suitable for introduction of incentive scheme. a) When the Industrial Relations climate is good in a company. It (may or may not) introduce an incentive scheme. b) Management (must or must not) introduce an incentive scheme in a new factory which is still with starting troubles. c) When a company is unable sell all its production based on the existing production rate, (must or must not) go in for an incentive scheme. * a) may * b) must not * c) must not

T.P. 7 PERFORMANCE OF A DIRECT WORKER

33.Suppose the standard time for a job is 10 mts. A person produces 40 Nos. per shift of 8 hours. Output time Performance level of the person = ----------------Input time Where Output

= 40 Nos / shift = 40 x 10 Std. Mts. = 400 Std. Mins. Of work = 8 Hours or 480 Mts. Output time = -------------------Input time

Input

Performance

= 40 x 40 ------------ = 0.83 480 Thus, performance of a worker indicates the __________________ of a worker. * productivity 34.If in another case, the std. time is 1 hour per piece, and a person produces 4 Nos. in a shift of 8 hrs., what is his performance? * 4x1 --------- = 0.50 8 35.Performance can be expressed either as a ratio or as a %. Thus, in the example in frame 33 above, performance is 0.83 which is equal to 83%. Similarly, in frame 34, performance is 0.50 which is equal to ___________% .

* 50% 36.Suppose in case a worker works only for 6 hrs. out of 8 hrs., because for the balance 2 hrs., the machine was under breakdown. In such a case, the input hours for performance calculation should be taken as (8 hrs. or 6 hrs.) 2 hrs. is lost for production and is called lost time. * 6 hours 37.Lost time could be for reasons such as machine breakdown, non-supply of raw materials, tools or lack of production plan due to want of orders. These lost time are due to want of orders. These lost time are due to management inefficiency and therefore should not be attributed to worker. In case if 3 hrs. is lost due to raw material shortage, 1 hr. due to machine breakdown and 0.5 hr. due to idleness of worker, total lost time for the calculation of incentive performance is a) 3 hrs. b) 4 hrs. c) 4.5 hrs. d) 3.5 hrs. * b) 4 hrs. 38.Total lost time is 4,5 hrs, but 0.5 hrs. is lost due to reasons attributable to worker. We have said that such lost time not due to reasons accountable by the worker should d be excluded from performance calculations. .In case, if 50 components are produced in a day, 4 mins. Is the standard time/piece and 2 hrs. lost in shift of 8 hrs. due to the machine breakdowns, Performance = _____________ . 50 x 4 = ------------- x 100 = 55.5% (8-2) x 60

* Performance

39.If the worker is idle on his own, it is not due to any factor beyond his control, then, such idle time (is to be or not to be) treated as lost time. * not to be 40.In a case, if out of 8 hours, 1 hour is washed by the worker in his own, and for 3 hours the machine is under repair, input hours for performance calculation is ( a) 8 hrs b) 6 hrs c) 5 hrs d) 2 hrs ) * b) 6 hrs 41.It is appropriate that workers are paid incentive in relation to their performance. For instance if the present performance of a worker is 50% then the payment of incentive may be started from the performance slightly above 50%. Similarly, the present performance is 60%, the incentive payment may be made from the performance level of (a) 50% (b) 55% (c) 57.5% (d) 65% (e) 100%. ( Choose the most appropriate level from those given). * d) 65% 42.In well managed companies, it is likely that the present performance levels are already in the region of 70%. In such cases, incentive payment is made when the performance is more than 75%.

Usually, a table shown below is prepared, as a part of the incentive scheme : Performance % Incentive Amount for 200 hrs. Rs. P. 75 or less 0.00 76 4.00 77 8.00 80 20.00

85 90 95 100 or more

40.00 60.00 80.00 100.00

43.From the above table, please note that incentive payment is related both to performance and to hours worked. E.g. If a worker works at 80% level for 200 hrs. he would get Rs.20/- as incentive. If another worker works at 80% but only for 100 hrs. he would get ( a) Rs.20/- b) Rs.10/- ). * b) Rs.10/-

44.From the above incentive scheme what incentive a worker will earn if his performance is at 110% level. * Rs.100/-

45. Even if the worker performs more than 100% level he will not get incentive more than 100 because there is a ____________ on incentives in the scheme to avoid over extension by workers. * ceiling (limit)

46.No incentive is payable for lost time, as this omitted in imput hours. Using the table given in the frame 42 please calculate the incentive amount in the following cases.
Std. Time piece Mins. a) 6.00 b) 4.00 c) 3.78 Output Nos. 50 90 100 Attended Hrs 8.0 8.0 1.0 Time Lost Time Hrs. 3.0 -1.0

* a) Perf :

5 x 50 300 ---------------- x 100 = ----------- = 100% (8-3) x 60 3 5 --------- x 100 = Rs.2.50 200 4 x 90 ------------- x 100 = 75% 8 x 60

Incentive :

b) Perf :

Incentive :

8 -------- x 0 = Rs. 0 200 3.78 x 100 378 --------------------- x 100 = -------- x 100 = 90% (8-1) x 60 420 7 ------ x 60 = Rs.2.10 200

c) Perf :

Incentive :

47.Let us now recollect the salient features about performance and incentives. a) Incentive (should be or should not be ) related to performance. b) If performance is around 70% it is appropriate to start incentive payment at _____________ . c) Lost time attributable to management ( should or should not be ) included in the total hours worked for the calculation of the incentive. d) Incentive should be related to ________________ and _________________ . * * * * Should 75% should not performance, hours worked

Group Incentives 48.Instead of calculating incentives for individual workers, we may also keep a group of workers as an entity. Performance and incentives can be calculated for the group. A group incentive scheme is advantageous over the individual scheme as far as reduction of paper work is concerned. It (promotes or reduces) group spirit. * promote 49.Again, if in a group, there is some idle man or absence on the part of one or two individuals in the group, others may willingly take over tasks and ensure that work performance for the group as a whole is kept up. Thus there is the possibility of __________________ idle time in group schemes as compared to individual incentives. * reduced

50.Size of groups should not be too big. Too large group (reduces or increases) interpersonal relationship thereby reduces the motivation. * reduces

51.The biggest disadvantage of an individual scheme is that since every worker is responsible for his own output and incentives, interpersonal rivalry may or may not increase resulting in restrictive practices. On the other hand individual incentive scheme will be more appealing.

* may 52.In certain process industries, it may not be possible to have an individual scheme, as the output of individual workers cannot be separately accounted, as in the case of a power plant, refinery, fertilizer factory, etc. In such cases, it is advantageous to retain the group concept and introduce a group incentive scheme. On the other hand jobs like light engineering, we may have individual schemes, in preference to Group Schemes. Which of the following situations are more suited for group incentives : a) b) c) d) An assembly line Building construction work Brick moulding Match for packing

* a and b 53.In the case of a Group Scheme the output of the final operation in the group is taken as the group output. Input of the group workers less any lost time i8s the input. If there are say 8 workers in a group, each with an attended time of 8 hours, and no lost time, the group input is _________________ hrs. * 64 hrs 54.If the standard time of 3 opns, of a group are 1 Hr. 1.5 Hrs and 2.5 Hrs. respectively, the group standard time is a) 1 Hr b) 1.5 Hrs. c) 5 Hrs. d) 2.5 Hrs. d) 4 Hrs. * c) 5 Hrs.

55.If 5 Hrs. is the total standard time of a group and 50 Nos. are produced in a month, total output is a) 5 Hrs. b) 50 Hrs. c) 8 Hrs. d) 250 Hrs. e) 40 Hrs. * d) 250 Hrs.

56.If input of a group is 300 Hrs. and output is 250 Hrs. group performance is ____________ %. * 83.3% 57.In a group incentive scheme, the individual workers of the group will receive incentive payment on the basis of a) group performance and b) the hrs. for which the respective individual worker has worked. Thus if 80% is the group performance, and two workers 4 and 8 have worked for 10 and 12 Hrs. respectively. A will receive payment for ______________ Hrs. and ______________ % performance. * 10 Hrs. * 80%

CRITERION TEST 1.Incentive schemes are introduced with a view to _________________ the worker to improve their Productivity.

2.Incentive schemes should be designed in such a way as to __________________ the cost of production. 3.As a result of wage incentives, which of the following increases and which of them decreases. a) Income or worker b) Profit of company b) Rate of output d) Labour cost 4.In frequent lead back about incentives is not given to the workers, the incentive scheme will become _____________ . 5.Details of incentive scheme and calculations should be shown to a) Union Representatives b) Workers concerned c) Managers concerned d) All the above 6.Which of the following conditions are not favourable to start an incentive scheme in a company a) The market forecast is good b) There are frequent stoppages of work c) There is no material shortage d) Power supply is quite adequate e) Machinery is kept in good condition 7.If the current level of performance of the workers of a company is around 80%, the company should pay incentive wages preferably for the performance within the range of a) 60-80% b) 50-80% c) 50-100% d) Above 60% e) 65-100%

8.In a chemical industry, a furnace is operated by a team of 10 men. Here, it is preferable to start an indiviedual incentive scheme. a) Right b) wrong

ANSWERS * 1) Motivate 2) reduce 3) a) Increases b) Increases 4) ineffective 5) (d) 6) (b) 7) (e) 8) (b) c) Increases d) decreases

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III

INCENTIVES -2
T.P. 1 STRAIGHT PIECE RATE SYSTEM

PT 11-2

1.The performance based incentive schemes where time standards are used for calculating the performance levels are called as _____________ .. When payments are made according to the number of pieces produced without considering the time taken such a system is referred as _____________ .. Standard hour system piece rate system

2.In small farms it is (difficult or not difficult) to measure the standard time for doing various farm operations like ploughing, seeding, transplantation, harvesting, etc. Therefore in order to provide incentive to farm works it is easier to pay wages according to standard hour system or piece rate system. Select the correct answer. Difficult piece rate system

3.In a small printing press piece rate system is more suitable because the establishment of time standards for each operation of each printing job and recording the time taken for each operation by each worker is _______________ . Difficult 4.The simplest scheme to pay worker a wage relating to his output is the ______________ system. For example, if to paste 1 match box a rate of Rs.0.01 is paid, 1 paise is the piece rate. If in a tailoring shop, Rs.10 is paid for fixing 100 buttons, the piece rate is Rs. _______________ . Piece rate 10 100 = Rs.0.10

5.In small scale industries,with mass production activities, such as production of matches, soaps, bolts, nits, etc. piece rate system is ideal for wage payment. Workers are motivated to produce more, because payment is directly related to output. In a factory making bolts, if Rs.0.05 is the piece rate and a worker produces 400 Nos. in a day, what is his wage? 400 x 0.05 = Rs.20/6.Piece rate is suitable in factories where we do not make frequent changes in process and product. This is because, any change in process and product would lead to a corresponding change in piece rate. The workman concerned will be unhappy if his rates are very frequently changed. A factory produces electronic goods, due to extensive research work being done

All over the world, there is frequent change in product design, will you recommend the introduction of piece rate in such a factory? No 7.So also the piece rate system is suitable for mass production and batch production industry and not for job type production where number of pieces produced are small in number. Will you recommend piece rate method of payment of wages in a shipyard?

No 8.In a factory where coils are wound, the piece rate is Rs.0.10. In a day. A worker produces 200 Nos. Next day, there is insufficient supply of material and he produces only 20 Nos. What are the wages of the worker on those 2 days? 200 x 0.10 = Rs.20; 20 x 0.10 = Rs.9/-.

T.P. 2 PIECE RATE SYSTEM WITH MINIMUM GUARANTEED WAGE

9.You will observe in the frame No.8 that on the second day the worker gets only Rs.2/- the reason being there has been an insufficient supply of raw materials. To help the worker in such cases, we may fix a minimum daily wage which is payable whenever his calculated piecework earningsare less than such a minimum or guaranteed wage. For instance, in the above case, we may fix, a guarantted minimum wage of Rs.8/- irrespective of this output. Such a method of payment is called piece rate system with ______________ wages. Guaranteed minimum 10.Calculate the daily earnings in the following cases : Guaranteed Minimum wage : Rs. 12 per day Piece rate : Rs.0.25 Output : a) I day 60 c) III day 80 b) II day 20 d) IV day 48 a) b) c) d) 60 x 0.25 20 x 0.25 80 x 0.25 48 x 0.25 = = = = Rs.15/Rs. 5/- pay guaranteed wage of Rs.12/Rs.20/Rs.12/-

T.P. 3 DIFFERENTIAL PIECE RATE SYSTEM

11.In order to motivate to produce at highest levels possible , we may adopt a differential piece rate system. Here, there may be 2 piece rates one for output at lower levels and another for output levels e.g. to a mosaic tiles factory, piece rate for output upto 50 tiles a day may be 50 paise. Above 50 tiles output, the piece rate may be 60 paise. If a worker produces 60 Nos. he will get payment as follows : For output upto 50 Nos. payment For output from 50 to 60 Nos. payment = = = = 50 x 0.50 = Rs.25/(60-50)x0.60 10 x 0.60 Rs.6/-

Total payment for the output of 60 Nos. Rs. 25 x 6 = 31 12.In a factory producing rubber bushes a differential piece rate system is followed. For output upto 500 Nos/day, the piece rate is Rs.0.06 and for higher levels of output, the piece rate Rs.0.10. If a worker produces 700 Nos. in a day, what is his wage? (500 x0.50)[{700-500)x0.10] = Rs. (25+20) = Rs.45/-

13.Let us now check whether you have grasped the piece rate system. Please answer the following questions : Piece rate syste is advisable for motivating maintenance workers (Yes or No). If a worker, who is on piece rate, earns Rs.40/- for an output of 80 Nos. what is the piece rate? In a company there is a guaranteed piece rate system. On a day a worker produced 50 Nos. and got a wage of Rs.20/-. When the piece rate was 20 paise. What is the guaranteed wage rate? a) No. b) Rs.0.50 c) Rs.20/-

If you have answered all the three correctly, please go to the next frame. Otherwise go through the frames 4 to 13 again. 14.To summarise you have learned three different types of piece rate systems or incentive payments. 1. ____________________________ 2. ____________________________ 3. _____________________________ The first one is the simplest of the incentive schemes. The second type of the piece rate system rate for higher level of production. Straight piece rate system Piece rate system with minimum guaranteed wage Differential piece rate system Minimum wage higher

T.P.4 DIRECT AND INDIRECT WORKERS

15.So far, we have discussed the incentive scheme designed to make the payment according to the performance level of the worker of the output of the worker. In such cases, we are considering the direct workers who produce a product. The workers who are doing production work are referred as direct workers. The working time of the direct workers can be easily identified with a specific product, service or a job on which they work. The time spent by _____________ can be easily identified and accounted towards the specific ______________ . Direct workers product or a job

16.In addition to the direct workers, there are other workers like maintenance workers, stores people, etc., who provide service to the direct workers in producing things. These group of workers are called as indirect workers. The working time of the ______________ cannot be easily identified with a specific product. Therefore is (easy or difficult) to measure their output in terms of the quantity produced by the direct workers. Indirect workers difficult

17.The time spent by the staff in the personnel department cannot be accounted against the specific products manufactured in a factory. Therefore, they are (direct or indirect) workers. The days spent by masons engaged in constructing the buildings by a construction company can be allotted to the specific building unit, therefore masons in a construction company can be classified as _________ workers. Indirect direct

18.Classify the workers in the following departments of an automobile factory into direct and indirect workers. Operators in a machine shop Mechanics in the maintenance department Electricians in the electrical maintenance Electricians on the assembly line Stores clerks Materials handling workers Direct workers 1 and 4 indirect workers 2, 3, 5 and 6

19.In industries when direct workers are but on incentive schemes it becomes necessary to pay ___________ to indirect workers also because they feel that their work load increases as the performance of the direct workers improve. Incentives 20.A worker who does packing of matches in a match factory can be evaluated with daily performance measures. This is because we can easily study and fix the standard time needed for packing say, 100 match boxes and compare his output with the standard. On the other hand, we cannot fix the standard time to repair say a machine. This is a nonstandard or indirect activity. Evaluating performance of indirect workers is _______________ . Therefore, the incentive payment to indirect workers is generally linked to the performance of ________________ workers. Difficult direct

T.P. 5 TYPES OF INDIRECT SCHEMES

21.In case of indirect workers we first fix the manpower requirement of specific activity, e.g maintenance crew needed to carry out the maintenance activities in the factory. Uusually, work sampling techniques we asked to fix the standard manpower needed for indirect activities. What is the best technique to fix the manpower needed in an electrical repair section in a generator factory? (Stopwatch time study or work sampling) Work sampling 22.In a factory there are 100 men. Out of which the indirect workers are 25 in number. The average efficiency of direct workers is found to be 90% in a month. There is a stores department in the factory with 10 men . These 10 men may be paid the incentive proportional to 90% efficiency. This is because the 10 stores men serve the entire factory with ____________ efficiency. 90% 23.In the example shown in frame 22 above, before introducing the indirect incentive scheme as shown we should have conducted _______________ studies and fixed the standard crew size. Work sampling

24.In a factory there are 4 sections each employs equal number of machines 5 maintenance workers, A, B, C, D and employed in the maintenance department. A., B, C & D repair the machines in section I, II, III & IV respectively, E repairs, any machine in any section, whenever needed. In a month, the efficiency levels of the 4 sections in I, II, III & IV respectively are 80%, 70%, 60%, and 50%. What % efficiency can be used to pay incentive to each of the 5 men, A, B, C, D, & E? A 80% B 70% C 60% D 50% E (80 + 70 + 60 + 50) + 4 = 65%

25.Prior to fixing the scheme of incentive payment, in the above example, what step should have been carried out? Assessment of manpower needed for maintenance work 26.There is another method of payment of incentive for such indirect workmen. Here we find out what are the aspects for which the indirect men are responsible. For instance, a maintenance worker is responsible for carrying out repairs quickly. In other words, he can take steps to minimise the downtime of equipment. Similarly, a store worker can be considered responsible for preventing ___________of materials. Pilferage 27.A quality control inspector may similarly be judged by his effectiveness in controlling outgoing defective products, e.g. if 0.05 is the acceptable standard for warranty return from the customers due to product defects during a month the actual warranty return is found to be 0.12 the concerned. Quality control department ( should or should not) be paid on incentive. But if the % of warranty return is reduced less than 0.05% then the quality control department (deservesor doesnotdeserve) anincentive. Should not deserve

28.The main idea behind the first type of indirect incentive explined in frame 21 to 24 is that indirect workers are motivated to provide the services commensurate to the efficiency of the ___________ workers. Direct

T.P. 6 SAFE GUARDS FOR QUALITY IN THE INCENTIVE SCHEME

29.With the introduction of an incentive scheme, the worker may be interested to get higher wages. This may lead to the possibilities that the worker neglects the quality aspects. A reduction in product quality and an increase in scrap and rework may occur. In a company with the introduction of an incentive scheme certain safeguards are needed to take care of the _______________ of the product, whenever incentive schemes are introduced. Quality 30.As a first step, incentive should be made only for the output, which is acceptable from the quality point of view. For instance, if 100 Nos. are produced by a worker and only 80 are accepted by the quality control section, incentive payment should be made only for _________ numbers.

80 31.Further, certain norms can be fixed for scrap percentage. In a machine shop 3% may be fixed as the normal scrap percentage. If a worker operates in such a way that the actual scrap is more than 3%he may be penalised by ________ his incentiveearnings. Reducing 32.In the machine shop, an incentive scheme is introduced with a factor, to control rejections as shown below : %Scrap Upto 2.00 2.00 - 2.49 2.50 - 2.99 3.00 - 3.49 3.50 - 3.99 4.00 & above Multiplying Factor 1.15 1.10 1.05 1.00 0.90 0.80

In this scheme, in order to ensure minimization of the scrap by the workers the incentive amounts multiplied by a factor, which is related percentage scrap.. For instance, if in this factory, the percentage scrap during a month is 5.59, the incentive amount earned by the worker will be multiplied by ______________. The worker will get his normal incentive if the scrap is in the range of _________ ______ . 0.9 3.00 to 3.49%

33.Whether such factors are introduced or not, it is obvious that whenever incentives are introduced, management must ensure that proper quality control measures are strictly practised, so that ____________ is not neglected by the workers. Quality

P.T. 7 SUPERVISORS ROLE IN THE IMPLEMENTATION OF THE INCENTIVE SCHEMES 34.The supervisor in a factory has a strong and vital role to play in the introduction and running of the incentive scheme for workers. Incentive is a monetary reward to the worker for performing better. The supervisor is interested in better ____________ of the worker. He is also interested in safeguarding the interests of workers by ensuring justice to all. It is hence natural that he plays useful role on the introduction and running of the scheme. Performance 35.First of all, the supervisor should help the work study staff by providing all information concerning the men, machines, etc. in his section, whenever Method Study / Time Studies are conducted. This would ensure that work study officers get proper picture of the activities of the section, so that the time standards developed are reasonable and justifiable. Supervisor should pressurise work study staff to set loose standards (Yes or No). No 36.On the other hand, the supervisor must co-operate with work study staff by providing them with all relevant data so that correct standards are set which do justice to all workers uniformly.

Secondly, the supervisor must go thro, the details of the time standard with care so that there are no wrong assumptions by the work study staff. This step (would or would not) help in maintaining a good relationship between him and his workers after the time standards are set. Would 37.Periodically, the Supervisor must intimate the Work Study staff about all changes that have occurred in his section. Such changes may be due to product modifications, change of material, installation of new machines, method changes, etc. If these changes are not intimated to work study department perhaps they may update the time standards. This would mean that the same worker receives more incentive than others resulting in ____________________ to those receiving less. Injustice 38.Further, the Supervisor must monitor his workers performance periodically, by looking at the performance calculations. This will ensure that (a) the incentive calculations are correct and (b) he can identify workers whose performance are at lower levels so that he can pay special attention to them to help in improving their __________ . Performance 39.Another advantage of periodic checking of incentive calculations by the Supervisor is that he can identify any idle time in his section and take _________ measures eliminate ____________ . Corrective idle time

40.Last but not least the Supervisor must ensure that all his day to day reports such as output, scrap, Idle time, etc. are accurate. Otherwise, erroneous calculations of incentives will be done, ending up with disputes between workers and management. 41.State whether the following statements are true to not : a) The Supervisors role is very important in the successful operation of an incentive scheme. b) The Supervisor must ensure that his workers are getting incentives according to their performance; c) Supervisor must himself carryout time study to check the work of the Work Study department. a) true b) true c) no

42.Match the following : 1. Supervisor must a) Calculate performance 2. Work study officer should b) Advise the workers to improve their performance d) Periodically check the incentive calculations. 1. b & c 2. A

CRITERION TESTS 1) We propose to start a piece rate scheme in a factory which produces high pressure boilers at the rate or 1 boiler per year. Is this a correct approach? _____________ . 2) In a factory, the piece rate is 60 paise per number. A worker produces 60 Nos. per day, what is his weekly wage? (6 working days per week may be assumed) _______________ . 3) In a maintenance section, an incentive scheme is introduced. The normal machine down time due to breakdowns is 3%. For every 0.1% reduction of the down time from the normal of 3%, a payment of Rs.50/- per month is considered by way of incentives. If the actual down time due to breakdown is 2.6%, what is the incentive amount payable? _____________ . 4) In a factory, the stores workers are paid incentives at the average performance of the 3 production departments - A, B and C. In a month. Department A work at 70%, department B at 60% and department-Cat 65%. Then we must make incentive payment to stores at a performance of a) 60% b) 65% c) 70% d) 80% ___________________ .. 5) Introduction of incentive scheme will not have any effect on the quality and the scrap. Is this is a correct statement? ____________________ . 6) Compared to production activity is it easy to establish time standards for maintenance activities? 7) In which of the following situations the supervisor must inform the work study section. a. Whenever a change in the operation is made b. Whenever a new worker is not able to earn the normal incentive wage earned by other workers. c. Whenever any mistake in the computation of incentive earnings of his workers is noticed. d. Workers are able to earn adequate incentives only on few of the jobs. 8) Supervisors cannot make use of production and quality reports. Is this statement true?

ANSWERS 1. No 2. Rs.210/3. Rs.200/4. b 5. No 6. No 7. A, c, and d 8. No

NATIONAL PRODUCTIVITY COUNCIL

Correspondence Programme National Certificate in Supervision

PRODUCTIVITY TECHNIQUES PAPER III
COST REDUCTION TECHNIQUES PT-13.1

By K.N. VENKATESWARAN Assistant Manager (EDP) Hindustan Motors Ltd. Tiruvellore Tamil Nadu

PROGRAMME LEADER M.M. JACOB Formerly Director Supervisory Development National Productivity Council Chennai 600098.

Instructional Objectives : 1) After going through the lessons, the learner should be able to 2) List the different cost reduction techniques by name 3) Select the appropriate cost reduction technique, given a situation 4) Identify potential areas for cost reduction and help the agencies to carryout the same 5) Motivate his employees in the cost reduction process. Teaching Points : 1) Various techniques of cost reduction 2) Definition of Standardisation and variety Reduction : their inter-relationship in cost reduction 3) Steps ub Value Engineering application for reduction in various elements of cost 4) Concept of cellular production in GT 5) Suggestion schemes as an aid to cost reduction. Their direct impact on morale and cost reduction.

TP 1 VARIOUS TECHNIQUES OF COST REDUCTION

1.You have learnt the techniques of Method Study, Time Study, Work Sampling, Incentives, etc. in earlier lessons. These techniques are designed to improve labour productivity and help cost reduction. But there are other cost reduction techniques, mainly aiming at reduction of material cost and procuring cost. They are listed below in a table :
Name of technique 1. Standardisation and Variety Reduction Reason contributing to cost reduction Reduces material inventory and material reduction

2. Value Engineering

Excess material reduction, substitution of costly material & elemination of unnecessary operations.

3. Group Technology

Reducing the work in process inventory and set up time and cost.

1.In this lesson we will learn more about the above techniques.

1) The three elements total cost of a product are (i) . (ii) . (iii) ,,,,,,,,,,,,,,,,,,,,. Labour Material Overhead

2.While Standardisation and Variety Reduction help to reduce direct material inventory costs. Value Engineering is usefully reduce ____________________ cost. Material (or) operations

3.The application of the techniques of Standardization, Variety Reduction, Value Engineering and Group Technology results in ____________ ____________ . Cost Reduction

T.P. 2 DEFINITION OF STANDARDISATION AND VARIETY REDUCTION 4.Standardization is the technique or process by which products and components are made with uniform dimensions, shape and other characteristics which are accepted and adhered by all concerned. They do not change from person to person or manufacturer to manufacturer. The manufacturers, suppliers and the customers adhere to the same specified dimensions and

tolerances for the standard parts and products. It promotes production of standard parts and components which are interchangeable i.e. Standard whoever be the manufacturer. The reason for producing the standard part is to ensure interchangeability of parts. This is required from the users point of view. Hence _______________________ helps to produce interchangeable parts conforming to the specifications. Standardization 5.Consider two cycle manufacturers who produce 24 dia rims. Manufacturer A produces rims to the size of 24 0.5. Manufacturer is produces wheels to the size of 24 0.1. Which of the manufacturer produces products nearer to standard size? A B 6.In the previous example, a customer who buys bicycle produced by manufacturer A will face the following situation. a) Difficulty to get a matching tube and tyre for original cycle as well as for replacement. b) Replacing a broken wheel is difficult if not impossible. c) Even replacing a spoke in a wheel is difficult. Therefore, the customer cannot get ___________________ ___________________ for replacement since manufacturer A has not adopted Standardization. Standard (or interchangeable) part. B

7.The standards for tolerances of various manufactured parts for engineering industries are specified in Indian Standards IS :: 919 1963 and IS : 2709 1964. Accordingly the maximum tolerance allowable for a 24 diameter will be 0.1 for fitment of tubes / tyres. 8.Manufacturer A cannot be producing standard parts because his range of tolerance is ________________ and ____________________ . Manufacturer B produces ___________________ wheels as his tolerance is 0.1%. + 0.5 -.05 Standard (or interchangeable)

Manufacturer A who produces rims of non-standard dimensions will have to keep spokes tyres, tubes or non-standard dimensions and many sizes. This Increases the number of items in inventory and the cost. Also certain parts (tyres / tubes) of non-standard sizes may not be available at all and they have to be specially produced at high costs. He cannot ensure ___________________________ of parts to his customers as well as their continued _______________ . He can only do so at a __________________________ cost compared to manufacturer B.

Interchangeability

availability

higher

9.The example we have sofar discussed is a case in COMPANY standardization. Standardization helps producer and __________________________ customer (or user) 10.Let us consider 3 manufacturers of bi-cycles, manufacturing rims with following diameters : Manufacturer % produces 24 0.1. Manufacturer Y produces 22 0.09 Manufacturer Z produces 22.5 0.09 Say whether the following are true or false : Each manufacturer produces company standard product. All manufacturers produces the same standard product. . True False

11.The above example brings out the need for industry standardization. Here each manufacturer practises ________________ standardisazation. But there is no industry standardization at all manufacturers are not producing the __________________ standard product with similar dimensions and tolerances. Company same

12.Also, the manufacturers will require three different standards of tyres and tubes. If the wheel sizes are standardized for all cycle manufacturers, then tyre / tube sizes can also be ____________________ by the manufacturers.

Standardized 13.Every manufacturer uses bought-out components for assembling his product. The cycle manufacturer, besides and tubes buys saddles, dynamos, chains etc.,from other suppliers. He cannot afford to produce all those items needed for a bi-cycle or each involves different technology and separate investment. To reduce the cost of the purchase he has to buy __________ parts / components produced by the _______________ . Standard supplier

14.Thus, from company standardization we go to _____________________ standardization. Industry 15.Industry standardization is achieved when all manufacturers discussed above produce wheels of same diameter with a given tolerance. As an example when all manufacturers produce wheel of size (say) 40 0.01, then we have __________________ standardization. Industry 16.From industry standardization we move up to national standardization. Consider that the cycle manufacturers have standardized on wheel size 40 0.01 and the tyre / tube manufacturers have standardized on 38 size. Even though they have individual industry standardization, the

wheel manufacturers cannot use the standard tyre / tube of tyre manufacturers. There must be a mutually agreed size between both of them. Thus we come to the level of ______________________ standardization. National 17.Normally national standards are evolved by a joint committee of the two industry representatives. There will be a central agency which co-ordinates such inter-industry requirements. In India we have the I.S.I. (Indian Standards Institution) which co-ordinates various industry requirements and thus evolves ___________________ standards. Thus, we ensure inter-industry inter-changeability of parts and products. National or Indian 18.Consider the following products tyres / tubes for various automobiles, trucks, two-wheelers etc. bulbs both filament type and tube-lights for all these products while forming industry standards also form _______________________ standards, as the inter-industry _______________ of parts and products is ensured. National interchangeability

19.Thus national standards are a set of recommended ___________________ standards. When followed by manufacturers and suppliers, this ensures complete _______________________ of parts. This ensures reduced amount of inventory in non-standard size and thus helps _______________ . Industry interchangeability cost reduction

20.Let us suspense you have bought a Japanese SONY or NATIONAL TRANSISTOR RADIO. When the battery runs down, you replace them by a new set of batteries of the appropriate size recommended. How is this possible? Because the radio manufacturer provided for using a standard battery which is made by various battery manufacturers in India as well as all over the words. This inter-changeability is ensured at international level. This is called ________________ standardization. This also helps to export our products abroad and earn valuable foreign exchange. International 21.The international standards are evolved by organisation such as ISO (International Standards Organization) The practice of international standards helps ________________ of parts at __________________ level. This also helps to boost our exports and earn valuable _________________ ____________________ . Inter-changeability International foreign exchange

22.Thus the four levels of standardization are at (I) ______________ (ii) _________________ (iii) _____________________________ and (iv) ___________________________ levels. Company industry national international

23.Standardization helps _____________________ and _____________________ to got ____________________ parts continuously. Producer customer interchangeable (or standard)

24.The standardization helps to reduce the material cost by reducing the __________________ of parts and products. Inventory Variety Reduction is the process by which a manufacturer deliberately reduces the range of different raw materials and bought-out parts used in production so as to use a limited range of materials and components. This is achieved by (i) (iii) (iv) Using limited sizes of raw materials (ii) using limited types of raw materials using reduced range of bought-out components (say switches / bulbs, etc.) specifying limited number of brands of bought-out components in machine and equipment bought from other manufacturers, e.g. specifying the use of (say) Siemens of HBB motors in all equipment and machine tools bought.

25.This variety reduction aims to __________________ the range of product and component usage while still maintaining the overall performance. Reduce 26.While reducing the range of sizes offered it should be noted that the manufacturer still maintains standardization. Thuswe still maintain standardized sizes after practising ______________________ . Variety reduction 27.Consider a manufacturer who uses six sizes of standard mettric thread sizes: M3, M4, M5, M6, M8 and M10. If he reduces his requirement from 6 sizes to 3 standard sizes it results in _____________________ . Variety reduction 28.If the manufacturers switches over from an intermediary size between M8 and M10 to either M8 or M10 it results in __________________ . Standardization 29.Thus while __________________ eliminates usage of non-standard sizes _______________ __________ reduces the range of usage of standard sizes. They are said to be complimentary to each other. Standardization variety reduction.

30.Quite often, variety reduction is achieved simply through standardization. While customer satisfaction is important, he (customer) stands to be benefited through ____________ which helps to achieve variety reduction. Standardization

31.Variety reduction helps to reduce material costs by reduced ____________ of various sizes of parts. Inventory (or stock) 32.A buyer of machine tools may specify use of a single (or limited) brand of electric motors (say Siemens or HBB) in all his machines he buys. This is an example of variety reduction through ____________ . Standardization 33.A manufacturer made a survey of various tool holders used in his machine shop. 138 varieties of tool holders were being used. All these were bought-out from reputed manufacturers and were conforming to his standard size. By systematic study, he could reduce it to 70 sizes while maintaining the cutting efficiency. Besides during the study, 5 non-standard tool holders were being used detected and eliminated from 136 varieties surveyed. i. ii. iii. All tool holders used were not standard. The reduction in the range of standard size from 136 to 70 is variety reduction. The elimination of 5 non-standard sizes also is part of variety reduction.

False

True

False

34.An equipment manufacturer offers his equipment with a choice of various standard motors made by Siemens, HBB, NGEF make. An earthmoving equipment manufacturer offers chance of Leyland, Cummins or Detroit engines with his equipment. The customer can specify his choice. These are examples where standardization is adopted with a deliberate variety increase by manufacturer so that the user can be benefited by variety reduction, for stocking spare parts etc. In these cases standardization of the consumer level _____________________ the variety for the manufacturer while ___________________ the variety for user. Increases reduces

35.In an office various types of forms are being used. Letterheads (3 sizes); Inter-Office Memo (2 sizes); Travel advance requisition, Car requisition slip, Telephone message Slip, Leave application forms. These were being printed in various sizes and qualities of paper. In all it accounted for 9 different sizes and eight different types of papers. The office management applied the principles of standardization and variety reduction to reduce the varieties and standardized on 4 sizes of forms and 2 paper qualities. This helped the office to reduce the inventory and get reduced rates for printing and paper purchase. Hence the concept of standardization and variety ___________________ as well as in __________________ . Industry office reduction can be applied in

36.Standardization and variety reduction are _________________ to each other.

Complementary 37.While standardization often leads to variety reduction. In some cases manufacturers may have to offer __________________ variety as a part of customer level standardization to help customer to __________________ variety. This also improves customer service ______________ . More reduce

38.The technique of standardization and variety reduction help to _______________ material cost by reducing the ___________________ of material. Reduce inventory

39.These techniques not only help the management in ______________ ______________________ but also to improve __________________ ___________________ . Cost reduction customer service

T P 3 STEPS IN VALUE ENGINEERING APPLICATION 40.Value Engineering is a technique to reduce material cost thereby _____________________ cost of product. Total 41.The British Productivity Council defines value engineering as the study of the relationship of the design function and cost of any product, material or service, with the object of reducing cost by modified design or material specification, more efficient processes; change in source of supply (internal or external) of possibly elimination of a components its incorporation into a related item. The overriding consideration is that quality and reliability must be maintained. 42Value Engineering involves a creative approach for the systematic identification of unnecessary costs. Elimination of unnecessary costs means _______________ in total cost. Reduction 43Value is an engineering probes into the basic purpose, design and method of manufacture ciitically with a view to identifying and eliminating ______________________ elements of cost. Unnecessary 44.Value is a subjective aspect. It can mean different things to different people, under different circumstances. What is good value to one individual may not be so to another. Thus it is difficult to define value because it is _________________ in nature. Subjective 45.However, we may define value of a product or as item as the lowest cost of which the item performs its functions reliably. A systematic analysis and evaluation of value ensures that the product is produced at its _______________________ cost. Lowest

46.The total value of an item is made up of : (i) Use value and (ii) Esteem value In analysing the cost of an item, we should analyse as to how much we pay for each of the values so that we can strive of the _____________ possible cost for each, thereby assuring __________________ total cost. Lowest lowest

47.Use value is of primary importance. This is the value arising from the function or theend use and from the ability to perform a useful function reliably. A large shade reflectslight.That is its main use function. Esteem value is the subjective value added for esteem or prestige. The art form of the lamp shade gives an esteem value to it which may vary from person to person according to his liking. By systematic and creative analysis, value engineering aims to achieve use value and esteem value of the product with ______________ __________ . For such analysis, there should be proper cost data available for each item. Minimum cost 48.Consider the following example. The price of a band transistor of a reputed make is Rs.600. The profit component is (say) Rs.100. Thus the cost of the transistor radio is Rs.500a piece. The use value is the value of components required to let the set perform its intended function reliably ,i.e., it is the total of the value of transistors, the circuit components ,the speaker ,tuning knob, dial, etc. The esteem value is the value added by the cabinet (plastic or wooden or metal), the leather case (if supplied) and the cost of the other items that make up the cabinet or its finishing. The first step in value engineering is to find out the break up of Rs.500 into costs of ________________________ and ____________ ______________________ . Use esteem values

49.Say the posts of use and esteem values of the transistor described shown is Rs.300 and Rs.200 respectively. The design considerations determine the extent of possible reduction is Rs.300 and the market considerations that is Rs.200. By a critical analysis of the design of the cabinet and other esteem; value components, such as materials, their production processes, etc., we arrive of the lowest possible cost of esteem value. Such an analysis involves a detailed cost analysis of each item and it is very essential that proper ____________________ _____________________ are available for such analysis. Cost data 50.There are four phases of value engineering. (i) Information phase (ii) Analytical phase (iii) (iv) Recommendation Implementation

Information phase is the fact finding phase, which obtains basic data on the present design, method of manufacturing material used, cost of materials and operations, etc. Then alternatives

(however trivial or silly it may look to be ) are generated by conducting brainstorming sessions. All concerned personnel take part in brainstorming sessions. In the information phase, __________________ value. Use esteem we get cost data on _________________ value and

51.In the analytical phase, the fully developed and acceptable alternatives are analysed. Cost of each acceptable alternative is estimated. Import subsitution ideas are evaluated (even if they involved higher cost). The best situation which provides least cost is selected, refined and made ready. Thus in the analytical phase we arrive of the _____________ ______________ alternative which can be implemented. Best possible 52.A cellulose film manufacturing company uses cylindrical, wooden rod of about 3 dia and approximately 2 feet long, on which cellulose films are wound into bobbins (fig.1). The rod is passed throughout out the centre of the bobbin to given firm support on it. Each rod costs Rs.5.70 and 75,000 rods are required per year This phase of collecting information on the physical data the material, usage, cost etc. is called the _________________ phase.

Information 53.The cost appeared disproportionate to the function it performs. The function of the wooden rod is to give a firm support to the bobbin while winding and transporting. The basic function performed by the rod and various alternatives to perform the same were analysed subsequently. Various alternatives were generated by conducting _________________sessions. Brainstorming

54.From among the various alternatives considered it was decided to replace the wooden rod by two wooden cross strips of thick (see fig. 2). The cost of this was Rs.2.60. A trial piece was made and was found to perform adequately. This process of finalising the best alternative is known as ______________ phase.

Analytical 55.The third phase in value engineering is _________________ . The chosen alternative in the above example viz. The wooden cross stripe was made known to all concerned in the factory. This was to ensure that the best solution had been reached. When no other alternative ways forthcoming the cross strip was finally recommended as the best alternative. . Recommendation

56.Lastly the drawing specifications, materials, etc., for cross strip were finished. A production order was given to manufacture the required number and the users were convinced into using these strips. They were trained to use these strips. Thus the modified method was introduced, resulting in saving of Rs.2,32,500. Hence in the __________________ phase, we finally put the cost saving alternative into practice. Implementation 57.Thus, the four phases of value engineering procedure are : (i) _________________________ (iii) _________________________. information analytical (ii) ________________________ (iv) ________________________ implementation

recommendation

58.Every item which goes into a product should be analysed critically so that right answers to the following questions are obtained during the _______________________ phase. a) Does it contribute to value? b) Is the cost proportionate to its utility? c) Can anything cheaper and better serve the purpose? d) Can any standard product be used?

e) Do materials, reasonable labour, overheads and profits total up approximately to its cost? f) Will another supplier provide it for less?

g) Is anyone buying it for less? These and similar questions help to obtain detailed information about the item being studied. Information 59.Value Engineering is a powerful technique for______________________. It can be applied in the following situations and substantial benefits may be derived. a) Raw material including fuel b) Sub-contracted parts components etc. c) Purchased components, parts, etc. d) Capital goods-plant and machinery e) Tools and appliances f) Import substitution

Cost reduction TP-4 USE OF GROUP TECHNOLOGY IN REDUCING MANUFACTURING COST 60.Group Technology : You have already learnt about the different types of production in industryviz., most production, batch production and jobbing unit. Mass production units usually have the facilities and features such as special purpose machines, tools, product layout, etc., to give minimum production cost. In job-shop the production costs are totally charged to the customer. In batch production, with variety of components, management often find it difficult to produce each component acco variety of components, management often find it difficult to produce each component acco variety of components, management often find it difficult to produce each component according to its economics batch size, especially with the general purpose machines and process type layout. 61.The production time of a component depends on the set-up time and operation time. Both contribute to the cost of production. In a multi component production system, the number of setups are often increased due to low production volume. To minimise the total production time and cost we have to reduce the number of set-ups and the set-up time. It is possible to reduce the setup time while change-overs by utilising geometric similarity of components. 62.Group technology (known as GT) helps to achieve the same. GT attempts to reduce production time by reducing the ______________________ time. This helps cost reduction. This technique has been developed by Russian and German Engineers.

GT approach to manufacturing consists of the following : a) Performing similar activities together thereby avoiding wasteful time of change-overs. b) Standardising closely related activities, thereby focussing only on distinct differences and avoiding unnecessary duplication of effort. c) Producing similar components as a group.

d) Storing and retrieving information related to recruiting problems, thereby reducing the search time and problem solving time. GT makes use of _____________________ in shape of components to group them together for production purpose so that the set up and chageover time are reduced. Similarities 63.Set up time is normally an unproductive time ___________________ (Yes / No ) Yes 64.The technique or __________________________ helps to reduce the production cycle time by reducing the ______________________ time. Group Technology Set up

65.The various components produced in a company may be classified into broad geometrical groups (shape-similarity) or those with similarity of process. Cylindrical parts Circular parts Square jobs Process similarity ___________________ ___________________ ___________________ ___________________ shafts, pains & spindles etc. flanges, washers, coupling, etc. blocks, supports wheels, brake drums, rim-bases, (involving Turning, Drilling)

Thus, we can always classify components into groups based on similarity of ________________ or __________________ . This is the first step in GT. Shape process

66.Refer to Fig.3. This gives an example of a coded part. The codification explains geometrical and process characteristics such as external and internal shapes (e.g. circular, taper, etc.) dimensional details, presence of threads, grooves, etc. In the example, we see a circular part with ratio of length to diameter less than or equal to 0.5. Both internal and external shapes are smooth with no shape elements. Hence a codification system helps to _____________ parts based on similarities of shape and process. Every firm may develop a codification system to suit its specific needs.

Classify 67.Let us consider the set of parts given in Fig-4. Mark the items which are similar and write down reasons.

Figures (a) (b) and (c). All shafts with length diameter ratio greater than 1.0 (1/d more than 1).

TP 5 CONCEPT OF CELLULAR PRODUCTION IN GT

68.Another application of GT is to create manufacturing cells. A cell is a collection of machine tools and material handling equipment grouped to process one or more group of similar components. Group of similar components which can be produced with same process is called a family of components. Preferably parts are completed within one cell so that handling and set up time are reduced. You are familiar with different types of layouts. In Fig-5, we see a typical job shop layout. It is a process-layout where similar machines are located together in the same place.

MOVEMENT OF PARTS THROUGH A JOB SHOP

69.In Fig.5 the rectangles indicate machines. There are ___________________different types of machines in the shop. All milling machines are located at the south west corner of the shop. All drilling machines are located at the ____________________ of the shop. The (arrow line) indicates that flow of _________________ through the shop during the manufacturing. There are four different types of _________________-shown in the figure. Five south east materials components

70.In Fig. 6, we see how the cells for manufacturing these parts have been involved. The available machines have been grouped together according to the manufacturing process of a given family components. Is it a process layout / product layout? The application of GT helps to reduce production time by reducing the __________________ and _______________ time. In the layout shown how many product cells are there? MOVEMENT OF PARTS THROUGH A CELL SHOP

Product layout

set-up

handling

four

71.The grouping of components into families also helps to analyse the toolings used, so that tool changeovers are minimised if not eliminated and also separate tooling for each part is ________________ . By common tooling a set of components, the ______________________ time is greatly reduced. Can it help to reduce the cost of toolings? Yes / No The formation of product cells also helps to reduce _________________ time in between machines or processes.

Minimised

set up

yes

handling

72.Thus, Group Technology helps to reduce the _________________ inventory by reducing the _________________ cycle-time, thereby aidingcost reduction. Work in process production (for manufacturing)

Tp 6 suggestion schemes as an aid to cost reduction

73.Suggestion Schemes are in operation in many companies to encourage employees to suggest better methods of doing their work, which results in improvement in productivity. You have learnt about motivation and morale elsewhere. Suggestion schemes act as motivations and help improve morale because in provides an opportunity to workers to participate in improving their work. This in turn, helps to achieve higher __________ . Productivity 74.Suggestions may be in the following areas : a) Improved methods processes, new technology introduction. b) Waste Reduction (better material utilisation). c) Reduction in operator effort and fatigue. d) Better utilisation of capacity (men / machines). e) Simplification of procedures. f) Standardisation and variety reduction

g) Improved operator safety. Workers are encouraged to give ideas which help to ________________ the present way of doing the operation. This helps in cost reduction. Usually the suggestor should give suggestions pertaining to the areas of operation or product in which he is actually working. Improve 75.State to which areas the following suggestions belong : (Ref. areas listed earlier in frame 74). a) A product design involves use of specially manufactured fastener, readily available in market ___________________ . b) To provide a drilling jig in place of marking and drilling _______________ . c) To provide it stand for carrying out an operation so that bending of the body is avoided _______________ d) To use gloves for handling rough objects _________________ . e) Operator to attend to two machines simultaneously _____________ . Standardization Improved process Reduction of fatigue Safety

Better use of operator capacity. 76.Usually suggestion schemes are run by a committee. The main task of supervisors is to encourage his employees to come-out with more and more suggestions. The rewards may be financial or non-financial. The normal practice is to distribute 10% of the direct savings as a reward. The suggestions are evaluated within a stipulated time, by the concerned departments. The results acceptance or rejection are conveyed to the employees through official communication. It is (possible / not possible) to accept 100% of the suggestions. Not possible 77.The success of a suggestion scheme depends to a large extent on keeping on open mind while evaluating the suggestions received. There should be no partiality or bias in accepting or rejecting them. Even if an employees suggestion is not accepted, the fairness of evaluation and communication of the results explaining reasons for rejection go a long way to successful and continued operation of the scheme.

The main objective is to for the employees feel a sense of participation in cost reduction efforts and create a productivity consciousness in the whole organisation. This helps to improve the ____________________ of the employees and help in cost reduction. Morale 78.State if the following are true or false. a) Suggestion schemes are run by the supervisors. b) The supervisor should order every employee to give suggestions. c) Suggestion schemes encourage employee participation in management. d) Cost reduction is purely managements business. e) Suggestion scheme help improve morale. False False True False True

79.The suggestion should be normally pertaining to _________________________ where the employee is working. Areas 80.State if the following would be valid under suggestion schemes. Give reasons if not valid. a) A shearing machine operator suggests a modified plate cutting layout which improves machine utilisation by 30%. b) An assembly operator suggests machining modification so as to improve interchangeability in assembly. c) A machine shop operator suggests that the quality of incoming castings should be improved so as to save machining time.

(A)

Valid

(b) Valid

not valid as there is no suggestion about how to improve the casting. It is only a general statement.\

81.In organizations where organized suggestion schemes are functioning, the employees should/ should not directly handover the suggestions to the Committee.

Should

82.A supervisor plays a key role in the continued functioning of suggestion schemes. True/False

True

83.We have studied the various techniques of cost reduction, their application and their role in improving the productivity and employee morale in the organization.

List down the names of five cost reduction techniques you have studied.

a) ____________________________________ b) ____________________________________ c) ____________________________________ d) ____________________________________ e) ____________________________________

(a) standardization (d) Group Technology

(b) Variety reduction (e) Suggestion scheme

(c) Value engineering