1. Prof.Dr.Yasemin Claire ERENSAL
TIME STUDY
Prof.Dr.Yasemin Claire ERENSAL

2. Time Study Time Study is a method used to determine
the time required by a qualified person
working at a normal pace to do a specified
task.

3. The Concept of a Labor Standard
An average experienced operator
Working with good skill and effort
Using a predetermined and documented method
To complete an operation
At an acceptable quality level
The standard represents the expected time for...
The standard does not include rework, repair,
scrap, repeated iteration of work, or any activity not directly related to task completion the “first time through.”

4. Some Uses for Standards
Determine total labor cost of the product
Determine the size of the work force
Assess quantity of production machinery and
equipment required
Determine overall “throughput” time
Assist in development of production schedules
Set production goals and assess performance
Determine pay policies
Assess improvement possibilities
Check efficiency of the individual/organization

5. Work Measurement Program
Generally before a work measurement program is
developed, employees must be convinced it has a
need and will produce desirable results.

6. Time Study
Definition: Time study is used to determine the time required by a qualified well trained person working at a normal pace to perform a specified task. Time Study results in a Time Standard.
Standard includes
standardized method
normal pace
time standard includes considerations of personal time, rest to overcome fatigue and time for unavoidable delays

7. Time Studies Labor standards are based on observing worker doing task
Observe only a sample of work
Use average time & pace & allowances in order to set standard
Disadvantages
Requires a trained & experienced analyst
Standard cannot be set before task is performed
Here it may be helpful to discuss why something, which often looks to students to be so simple, is really not. What problems does one encounter in doing a time study? Why factors make it more complex than it appears?

8. Which jobs are suitable for Time Study ?
Job performed by a single worker in a fixed location
Job involves repetitive short cycles
Job expected to continue unchanged for a long period
Job produces large quantities of output
Resulting time standard must be very accurate

9. Is also known as : Stopwatch Time Study
Pioneered by Fredrich W. Taylor around 1880.
Several types employed:
Snapback: in one hundredths of a minute
Continuous: in one hundredths of a minute
Three watches: continuous watches
Digital: in one thousandths of a minute
TMU (Time-measured units): in one hundred thousandths of an hour
Computer: in one thousandths of a minute

10. Equipment Stopwatch Decimal minute watch – 100 divisions (.01 minute)
Provides continuous or snapback timing
Electronic watch – accuracy of .001 second (600 times more accurate)
Provides both continuous and snapback timing
Computer Assisted Electronic Stopwatch
Figure 9.1 on page 378 shows a decimal minute watch.
Mechanical watch about $150, electronic about $50 and the price is dropping. Therefore, mechanical watches are quickly disappearing.

11. Equipment (con’t) Video cameras Time study board Time study forms (TP)
Time study Software
Training equipment
Video Cameras – record operators’ methods and time; also use to train new analysts
Board – to hold form and stopwatch
Forms – method, tools utilized, admin information
Software – Datawriter (captures electronically, download to PC), Programs for PC’s and PDA’s
These eliminate much of the drudgery of data entry and improves accuracy.

12. Daywork
Work in which pay is based on time rather than performance.

13. “Fair Days’ Work” Concept
The amount of work which is expected daily
from an employee. May be established
solely by management, or through mutual
agreement with employees or a bargaining
entity. It is the expected attainment.
In some companies, a Fair Day’s Work is
the performance of an operator who
effectively follows the specified method.

14. Basic Equipment
1) Stop watch - electronic, note: decimal minute as opposed
to seconds, two modes: snap (fly) back - resets to zero on
each press, continuous - the time still increments, (analog:
more costly, breakdown, less accurate - time lost on
mechanical snap back)
2) Time study board - holding watch and necessary time
study forms, L and R-handed boards
3) Time study forms –
a)special form for recording times in a certain way
b) also a form to analyze and summarize times back in the Office
R = rating
W = watch time
OT = observed time
NT = normal time

16. Time Study types
May use various stopwatches – read in decimal minutes (except TMU)
Continuous time study – short-duration jobs
Long-cycle time study – long jobs (31 minutes or more), 8 hour studies (determine poor performance), or when work elements out-of-sequence

17. Components of a Labor Standard
􀁺 Observed “Watch” Time
􀁺 Normal Time
􀁺 Allowances

18. Observed Time (“Watch Time”)
The observed and recorded time, as
noted from a timing device, for a worker to
perform a defined single element of an
operation.

19. Normal Time Observed time (“Watch Time”), adjusted by
a performance rating to obtain the time
required by an average qualified worker to
perform a single element of an operation
while working at a normal pace.

20. Normal Time = Average Observed Time x Rating Factor

21. Allowance
A percentage by which Normal Time is increased in calculation of the labor standard. It usually includes minor unavoidable delays and required personal activities. It may also include some provision for fatigue.

22. Standard Time Normal Time adjusted by an allowance factor to
obtain the time required by an average qualified
worker to perform a single element of an
operation while working at a normal pace, and
considering all normal job delays and personal
needs.

23. Standard Time = Normal Time (OT=ti) x Allowance Factor (R=L)

24. Typical Allowance - “PF & D”
􀁺 Personal
􀁺 Fatigue
􀁺 Delay

25. Personal Allowance An allowance in the labor standard to
provide time for the personal needs of
a worker during the workday.

26. Fatigue Allowance Time included in the labor standard
calculation to allow for the effect of personal
bodily fatigue in the performance of work.

27. Delay Allowance A time allowance in the labor standard
which allows for contingencies and minor
delays beyond the control of the operator.

28. Unavoidable Delay A time delay which is outside the control or
responsibility of the worker.

29. Avoidable Delay
A time delay not allowed in the labor standard because it is not necessary to completion of the job and caused by factors under worker control.

30. Making The Time Study 1. Request for time study
2. Ensure that the job is ready for time study
3. Secure and record information about the operation and operator being studied
4. Divide the operation into elements and record a complete description of the method
5. Observe and record the time taken by the operator
6. Determine the number of cycles to be timed
7. Rate the operator’s performance
8. Check to make certain that a sufficient number of cycles have been timed
9. Determine the allowances
10. Determine the standard time for the operation

32. Making The Time Study- Step1&2
1 Select job to be studied: new one, method changes, complaints, 'bottleneck' operation, incentive scheme, excessive costs, want to compare jobs Select operator to be studied: qualified (has the necessary physical attributes, intelligence, education, skills and knowledge to carry out job in satisfactory manner, without undue fatigue) vs. representative (average) worker, slow workers = loose times, uneconomical for company; fast workers = tight times, unfair to workers 'above ground', no sneaking around, talk to supervisor, stand, businesslike attitude, no opinions

33. Making The Time Study- Step 3
3) record details about the job: sketch layout, info on operator, working conditions

34. Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Timing an entire operation as one single element is seldom satisfactory, and an overall study is no substitute for a time study. Breaking the operation down into short elements and timing each of them separately are essential parts of time study, for the following reasons
1. Breaking job down into short meaningful elements with clearly defined beginnings and endings makes job easier to describe
2. Standard times can be determined for each element. Total standard time is sum of element standard times
3. Allows analyst to focus on parts of job where too much and too little time are being spent
4. Operator may not work at the same tempo throughout the cycle. Each element can be performance rated

35. Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Three rules for dividing operation into elements
The elements should be as short in duration as can be accurately timed
Handling time should be separated from machine time
Constant elements should be separated from variable elements (the term constant refers to those elements that are independent of the size, weight, length and shape of the workpiece)

36. Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Break down into elements (for convenience of analyst, better ratings) using breakpoints, sight and sound, relatively fine but not too small (>.04 min), types (separate within each group): a1) repetitive element: occurs every cycle (sequence of activities for one unit of production) a2) occasional element: not every cycle, at irregular intervals a3) foreign element: not necessary part of job b1) machine element: performed by machine, time so determined b2) manual element: performed by worker c) constant vs. variable: depends on process, leads to standard data

37. Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Breakpoint
A point in a work cycle readily distinguished by sight or sound which is selected as the boundary between two elements in time study.

38. Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Frequency
The recurrence of a work element. If the element occurs once per cycle, the frequency is 1:1. As an example, if an element is done once every six pieces, then the frequency is 1:6, and the observed time must be divided by six when the study is summarized.

39. Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Irregular (“Foreign”) Elements
An element with a random, usually unpredictable, frequency of occurrence, not part of a normal method.

40. Irregular Elements (Method Deviations) Fumbles
Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Irregular Elements (Method Deviations)
Fumbles
Part requires more work than usual
Sticks in die
Has to be tapped into fixture
Excessive burrs
Difficulty in fitting
Part requires less work than usual
No burrs
Unusually good fit

41. Irregular Elements(Interruptions, Stoppages) Operator responsible
Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Irregular Elements(Interruptions, Stoppages)
Operator responsible
Blows nose
Wipes perspiration
Talks to others
Operator not responsible
Interference by others
Tool breakage
Power failure
Parts shortage

42. Dividing the Operation into Elements and Recording a Description of the Method (Step 4)
Handling Irregular Elements
Discard observations with avoidable or unallowed
delays.
Include observation times with allowable delays in
element averages.
Subtract the element average time from the observed
time containing the delay and prorate the delay time
over an estimated quantity (frequency of occurrence).

43. Making The Time Study- Recording the Data (Timing) Step 5
Information is generally gathered by observing an operator directly or on video tape using a stopwatch
Continuous Timing: starts the watch at the beginning of the first element and permits it to run continuously during the period of the study. Observer reading of the watch at the end of element. Timing is later determined by subtraction.
Repetitive (Snap-back) Timing: With repetitive or snap-back timing, hands of watch are snapped back to zero at the end of each element. Provides direct time for each element.

44. Making The Time Study- Recording the Data (Timing) Step 5
Continuous Study
A stopwatch technique in which the watch
runs continuously throughout the study
and readings are made accumulatively at
the end of each element.

45. Making The Time Study- Recording the Data (Timing) Step 5
continuous timing
stopwatch runs continuously, read incremented
time at each stop, watch is never reset, individual
element times are obtained by successive
subtraction after study is completed
Note: 1) don't record decimal point
2) record only two digits,
105=05, except if long element covering
several minutes

46. Figure 9-7
Continuous Study

47. Making The Time Study- Recording the Data (Timing) Step 5
Continuous Study

48. Making The Time Study- Recording the Data (Timing) Step 5
Continuous Study-Advantages
Presents a complete record for the entire observation period
All delays and foreign elements are recorded
Better adapted to record short element times
Clerical work required

49. Making The Time Study- Recording the Data (Timing) Step 5
Snapback Study
A stopwatch technique where a time value is
read and recorded at each breakpoint and
the watch is instantaneously reset to zero to
time the next element.

50. Making The Time Study- Recording the Data (Timing) Step 5
snap-back timing
the watch is read at the breakpoint as it is reset, next element increments from zero, thus the exact elemental time is always read directly from the watch
Note: 1) record only OT

51. Making The Time Study- Recording the Data (Timing) Step 5
Snap-back Timing

52. Making The Time Study- Recording the Data (Timing) Step 5
Snapback Study Advantages
No clerical time needed to subtract from the previous observations as in continuous (TP)
Read and record Observed Time (OT) directly
Short element times are difficult to time
Possible cycle time lost during the snapback (N/A to electronic watch)

53. Snapback Method

54. Comparison of Time Study Modes

55. This table shows how to record data for a continuous study
This table shows how to record data for a continuous study. The clerical work comes in subtracting to determine element times.

56. Making The Time Study- Recording the Data (Timing) Step 5
Missed Breakpoints
Immediately mark an “M” in the W column
If operator omits an element, draw a dash (-) through the applicable space in the W column

57. Making The Time Study- Recording the Data (Timing) Step 5
Foreign Elements
Things that are external to the process that delay the work moving forward
Include: Supervisor interruptions, power losses, defective parts, leaving workstation, tool breakage, etc…
Occurring during an element, write A, B, C, etc…In the NT block (TP)
Both avoidable delays and unavoidable delays. Examples include: …
Foreign Elements enter time into W1 and W2 block.
<= 0.06 min, include in the element and circle reading.

60. Considerations in Determining Sample Size
Making The Time Study- Step 6 Sample Size - Number of Cycles Needed for Study
Considerations in Determining Sample Size
How accurate do you want to be?
What level of confidence do you want your measurements to have?
How much variation exists within the job elements?
Explain to students that sample size is computable.

61. Any study is only a very small time
Making The Time Study- Step 6 Sample Size - Number of Cycles Needed for Study
Any study is only a very small time
“snapshot” of a much longer activity
The less time variability between cycles, the more statistically valid the study will be
The more the method is controlled, the less time will vary between cycles

62. Making The Time Study- Step 6 Sample Size - Number of Cycles Needed for Study
h = accuracy level desired as percent of job element, expressed as a decimal (5% = 0.05)
z = number of standard deviations required for the desired level of confidence
s = standard deviation of the initial sample
x = =mean of the initial sample
The need for calculation of the appropriate sample size was probably covered earlier. If not, one should at least introduce the equation and its use.

63. Making The Time Study- Step 6 Sample Size - Number of Cycles Needed for Study
Average cycle time =0.361
Computed standard deviation = 0.03
Company wants to be 95% confident that computed time is within 5% of true average time

64. Making The Time Study- Step 6 Sample Size - Number of Cycles Needed for Study
Special case for  5% the value of z=1,96 will give the constant of 40
where n is the required number of readings to predict the true time within  5% precision for 95% confidence level and
n1 is the number of readings in the preliminary study
and x is the value of each reading
For  10% the value of 40 is replaced by 20 ie the sample size would reduce by a factor 4.

65. An alternative approach
Confidence interval based on the normal distribution is
But as  is not known we use s the sample standard deviation and as the sample size is generally small (n<30) we use the t distribution
where the sample standard deviation

66. Number of Cycles If we consider  term as an error term then
k x=t s / n where k is the acceptable % of x¯
If N is the number of observations for the actual time study then N={s t / kx}2
For the sample size for x = 0.25 to be  5% of the population mean  and s = 0.08 then for a pilot study of 30 readings, t=2.045 (from tables) and N=172 observations

67. Common z values Desired Confidence Level (%) Z Value 90.11 1.65 95.00
1.96
95.45
2.00
99.11
2.58
99.73
3.00
99.0

69. Making The Time Study- Step 7 Rate the operator’s performance
Often a worker speeds up (or sometimes slows down) when they know they’re being observed
Evaluate speed or tempo of the work
Analyst must compare the speed of the process during the time study and analyst’s concept of normal performance
Matter of judgement
Performance rating factors are used to subjectively assess the worker’s performance
100% = an average work pace

70. Making The Time Study- Step 7 Rate the operator’s performance
Performance rating is usually based on the relative speed of the subject in performing work tasks. This is called “Speed Rating.”
The time study observer must be practiced in making judgements of operator speed. Proficiency normally comes with experience and training.
Most time study observers use videotape or film exercises to practice their performance rating skills.
When doing a study, the observer should record a performance rating for each element of work before leaving the area.
Rating factors are normally applied in 5% increments.
The observer should avoid study of subjects where performance is outside the range of 70 to 125%.

71. Making The Time Study- Step 7 Rate the operator’s performance
Some Benchmarks of Normal Performance (Speed)
Walking 3 mph (264 feet in one minute)
Dealing four hands of cards in 0.5 minutes
Assembling 30 pegs to a pegboard in 0.41
minutes using two hands

72. Making The Time Study- Step 7 Rate the operator’s performance
While the analyst is collecting the time data, he/she is also evaluating the “quality” of the operators performance relative to that jobs “normal” time
This performance rating is somewhat subjective and is based on the complexity and difficulty of the task, and the operator’s skill, dexterity and speed

73. Making The Time Study- Step 7 Rate the operator’s performance
Rating defined: Rating is an evaluation of the operator’s performance in comparison to observer’s own concept of normal performance.

74. Making The Time Study- Step 7 Rate the operator’s performance
Standard ('normal') performance - rate of output achieved by a qualified worker, without overexertion, adhering to the correct method, over an entire day = a standard rating of 100

75. Making The Time Study- Step 7 Rate the operator’s performance
However, recognize that this is an average performance. Have variations over time due to: 1) variations in quality of material 2) changes in efficiency of tools (wear) 3) minor changes in methods (with fatigue?) 4) changes in climate or working conditions

76. Making The Time Study- Step 7 Rate the operator’s performance
Skill and Effort rating: Introduced by Charles Bedaux based on award
of points. He used 60 points to represent standard performance and effort above standard was awarded more points. incentive pace was points.
Westinghouse rating: Used a four factor system for rating the performance of the operator. The operator’s rating was 1.00 plus the sum of the positive and negative contributions in each factor area (skill, effort, conditions, consistency)
Synthetic rating: This is a method of evaluating operators speed from predetermined values. R = Predetermined /Actual.
Synthetic rating
R = 0.13/0.12 * 100 = 108
Objective Rating:
If the selected time for an element is 0.26 minute, the pace rating is 95% and if the sum of all secondary adjustments amounts to 20% then the normal time will be 0.26 * 0.95 * 1.20 = min

77. Making The Time Study- Step 7 Rate the operator’s performance
Objective rating: Observer rates speed of movement or rate of activity, paying no attention to job difficulty. Later adjustments are added to rating to compensate for job difficulty. After judgment of pace, secondary factor assigned to job indicates its relative difficulty.
Amount of the body used.
Foot pedals.
Bimanual ness.
Eye-hand coordination.
Handling or sensory requirements.
Weight handled or resistance encountered.
T = (P)(S)(O)

78. Making The Time Study- Step 7 Rate the operator’s performance
Physiological Evaluation of Performance: This approach to rating monitors heart rate and oxygen consumption in calories per minute to measure work Appropriate for medium and heavy physical tasks
Performance rating: This is the most widely used system of rating. The system is based on evaluating one single factor -- operator speed, pace or tempo

79. Making The Time Study- Step 7 Rate the operator’s performance

80. Making The Time Study- Step 7 Rate the operator’s performance
Normalize the readings to the “average operator”
Can be for the entire element or individual cycles
NT=OT x R/100

81. Making The Time Study- Step 7 Rate the operator’s performance
- For long elements- Adjust observed Time (OT) by rating (as compared to standard rating) to yield normal time (NT) (the time it takes the operator to perform the element working at standard performance)
OT * R/100 = NT * 100/100 = * 125/100 = * 80/100 = .2
For short elements/study - rate overall study

82. Making The Time Study- Step 7 Rate the operator’s performance Sources of Error
1) Subjective rating - limited by human ability of absolute judgement 2) Standard ratings because of cultural norms - UK = 4 mph 3) Training is crucial - the more practice the better one gets a) tight rater- rates below actual, difficult for workers to achieve b) loose rater - rates above actual, times are easy to achieve c) conservative rater - tends to rate close to the mean, loose below 100% and tight above 100%, typical of beginners, afraid to deviate from standard performance

83. Making The Time Study- Step 8 Application of Allowances
Normal time is standard time after allowances.
Standard time calculations can be performed in two separate ways
1. Allowances expressed as a percentage of normal time
Standard time = normal time + normal time * allowances in percent
2. Allowances expressed as a percentage of total work time
Standard time = normal time * {100/ [100 - total allowance in % of workday]}
Note: The second approach is the more preferred approach and many would argue the correct approach to determining allowances

84. Making The Time Study- Step 8 Determine the allowances

85. Making The Time Study- Step 8 Determine the allowances
Personal needs - personal necessities, leave workplace to go to rest room, get drink, etc. = 5%
Basic fatigue - to account for energy expended during seated light work under good conditions = 4%
Variable fatigue - are added to account for working conditions deviating from normal (in addition to the constant 9%), based on physiological human fatigue data
Unavoidable allowances - to meet delays due to machine interference, material irregularities, etc.
Avoidable allowances - due to socializing, idleness, etc.
Extra allowances - to meet expected delays in work which because of their irregularity are uneconomical to measure, (usually use work sampling here), workstation cleaning, machine oiling, etc.
Policy allowance - additional allowance decided by management (not IE) to even earnings level between different levels of performance, exceptional conditions, due to union negotiations, handicapped, etc.

86. Making The Time Study- Step 8 Determine the allowances
Personal Needs
Those interruptions necessary to the general well-being of the employee
Trips to water fountain, restroom, etc…
Can be a function of the working environment
Typically 5%

87. Making The Time Study- Step 8 Determine the allowances
Basic Fatigue
Accounts for the energy expenditure to perform the given work
Typically 4% under Normal Conditions

88. Making The Time Study- Step 8 Determine the allowances
Variable Fatigue
Lessening of the will to work
Can be mental or physical, or a combined effect
Factors include: Noise, heat, humidity, posture, muscular exertion, tediousness, general health of the worker
Can be directly measured by declining output production over the course of the day

89. Making The Time Study- Step 8 Determine the allowances
Variable Fatigue
Primary Considerations
Abnormal posture: sitting Vs..standing Vs. bending Vs
Muscular force: time Vs. exertion level; recovery
Atmospheric conditions
Noise and Illumination levels
Visual & mental strain
Monotony and Tediousness

90. Making The Time Study- Step 8 Determine the allowances
Unavoidable Delays
Interruptions from: supervisor, dispatcher, time study technician, material faults, interference from servicing multiple machines

91. Making The Time Study- Step 8 Determine the allowances
Avoidable Delays
Social visits
Day-dreaming
Idleness
Unnecessary work interruptions

92. Making The Time Study- Step 8 Determine the allowances
Policy Allowances
Different performance under exceptional circumstances
ADA, new-employees, light duty, elderly, etc…

94. Making The Time Study- Step 8 Methods for Determining Allowances
Must be both accurate and correct
Can be calculated by Production Study or Work Sampling

95. Making The Time Study- Step 8 Methods for Determining Allowances
Production Study
Requires complete observation over a long period of time
Record specific instances of Non-Value Added Activity
Data must be adjusted to the normal performance level
Long, tedious (technician & operator), results may be biased

97. Making The Time Study- Step 8 Methods for Determining Allowances
Work Sampling
Requires a large # of random observations
Frees the technician to perform other duties
No use of a stopwatch is necessary
Technician simply records what each operator is doing
Yields an approximation

98. Making The Time Study- Step 8 Methods for Determining Allowances
Work Sampling Shortfalls
Analyst should not anticipate observations
Confine observations to predetermined subjects
Study accuracy depends on both the number of observations and the sample scheduling

99. Making The Time Study- Step 9 Determine the standard time for the operation
Performance
Rating
Allowance
Fraction
Observed
Time
Normal
Time
Standard
Time

100. Example 1: What is the standard time for this process (4 work elements) if the allowance is 25%?
ST = NT(1+Allowance) = 22.37(1.25)=27.97 minutes

101. Example 2: Time Study Example Problem
You want to determine the standard time for a job. The employee selected for the time study has produced 20 units of product in an 8 hour day. Your observations made the employee nervous and you estimate that the employee worked about 10 percent faster than what is a normal pace for the job. Allowances for the job represent 25 percent of the normal time.
Question: What are the normal and standard times for this job? 17

102. Example 2: Time Study Example Solution MOD
If ST=ti*L(1+p) then ST/L=ti*(1+p)
ST = Time worked (min) L Number of units produced
= (480 minutes/20) x (1.10)
= 26.4 minutes
10% faster is a performance rating usually stated as 110%
Standard time = NT (1+0,25) =26.4
NT = (26.4)/(1+0.25)
= minutes 17

103. Example 3: Time Study Approach
In a time study of a manufacturing operation, the average time observed to complete a product was 8.6 minutes. The performance rating applied to the observed worker was 0.95 and the allowance during an 8-hour shift was 12.5% or 60 minutes.
Compute the labor standard.

104. Example 3: Time Study Approach
Observed time = 8.6 minutes
Performance rating = 0.95
Allowance fraction = 0.125
Normal time = Observed time x Performance rating
= 8.6 x 0.95
= 8.17 minutes
Standard Time = Normal time / (1 - Allowance)
= 8.17 / ( )
= 8.17 / (0.875)
= minutes

105. Example 4: Time Study Example
Job elements
Pick up piece and place in jig
Tighten set screw from jig
Clean out chips
Advance drill to work
Drill 1/4” hole
Raise drill from hole
Loose set screw
Remove piece

106. Example 4: Time Study Example

107. Example 4: Time Study Example
Normal Time
Total Average Observed Time = 1.12 min
Average Performance Rating = 1.10
Normal Time = (1.12 min)(1.10) = 1.23 min
Standard Time
Total allowances = 14%
Standard Time = (1.23 min)/( ) = 1.43 min

108. Example 5: Time Study Example
A new hire finishes 8 complete units during her 480 minute shift. Assuming ST = and the allowance is 25%, how proficient is this worker?
We expect a typical worker to make 480 min/(52.1min/unit) or about 9.2 units in a shift. She made 8, which is less than the standard indicates.
Compared with a standard worker, her proficiency is 8/9.2 or about 86%.
We need to build 125 more units this shift, which ends in 4 hours. How many workers are needed to achieve this objective?
If each unit takes 52.1 minutes of labor, we need a total of 125 x 52.1 = 6,512 minutes.
By the end of the shift, each worker will contribute 4 hours 240 minutes. Thus we need 6512/240 = workers.

109. Example 6
NT = .88 min, 3.5% extra for cleaning part Allowances = 4% + 5% + 3.5% (extra) = 12.5% Standard time = ×(.125) = .99 or more simply: = .88×(1.125) = .99
Discuss where do we get 4% and 5 % !
Relaxation allowances taken as rest breaks: 1) 30 min lunch 2) two 10-min breaks 3) Better to give a worker frequent, short micro-pauses

110. Performing a Time Study
Time Study Observation Sheet
Identification of operation
Sandwich Assembly
Date /17
Operator
Approval
Observer
Smith
Jones
Russell
Cycles
Summary 1 2 3 4 5 6 7 8 9 10
t Nt RF t
Place ham, cheese,
and lettuce on bread
Grasp and lay out bread slices
Spread mayonnaise
on both slices
Place top on sandwich,
Slice, and stack R
.11
.44
.79
1.13
1.47
1.83
2.21
2.60
2.98
3.37
.04
.05
.06
.07
.53
.053
1.05
.056
.38
.72
1.40
1.76
2.13
2.50
2.89
3.29
.08
.10
.09
.77
.077
1.00
.12
.14
.13
1.28
1.10
.141
.93
.23
.55
1.25
1.60
1.96
2.34
2.72
3.12
3.51
1.03
.113
.33
.67
1.01
1.34
1.71
2.07
2.44
2.82
3.24
3.61
Figure 17.5

111. Performing a Time Study
Time Study Observation Sheet
Identification of operation
Sandwich Assembly
Date /17
Operator
Approval
Observer
Smith
Jones
Russell
Cycles
Summary 1 2 3 4 5 6 7 8 9 10
t Nt RF t
Place ham, cheese,
and lettuce on bread
Grasp and lay out bread slices
Spread mayonnaise
on both slices
Place top on sandwich,
Slice, and stack R
.11
.44
.79
1.13
1.47
1.83
2.21
2.60
2.98
3.37
.04
.05
.06
.07
.53
.053
1.05
.056
.38
.72
1.40
1.76
2.13
2.50
2.89
3.29
.08
.10
.09
.77
.077
1.00
.12
.14
.13
1.28
1.10
.141
.93
.23
.55
1.25
1.60
1.96
2.34
2.72
3.12
3.51
1.03
.113
.33
.67
1.01
1.34
1.71
2.07
2.44
2.82
3.24
3.61
Average element time = t = = = 0.053 St 10
0.53
Normal time = (Elemental average)(rating factor)
Nt = ( t )(RF) = (0.053)(1.05) = 0.056
Normal Cycle Time = NT = Nt = 0.387
ST = (NT) (1 + AF) = (0.387)(1+0.15) = min
Example 17.3

112. Performing a Time Study
Normal time = (Elemental average)(rating factor)
Nt = ( t )(RF) = (0.053)(1.05) = 0.056
Normal Cycle Time = NT = Nt = 0.387
ST = (NT) (1 + AF) = (0.387)(1+0.15) = min
Average element time = t = = = 0.053 St 10
0.53
Time Study Observation Sheet
Identification of operation
Sandwich Assembly
Date /17
Operator
Approval
Observer
Smith
Jones
Russell
Cycles
Summary 1 2 3 4 5 6 7 8 9 10
t Nt RF t
Place ham, cheese,
and lettuce on bread
Grasp and lay out bread slices
Spread mayonnaise
on both slices
Place top on sandwich,
Slice, and stack R
.11
.44
.79
1.13
1.47
1.83
2.21
2.60
2.98
3.37
.04
.05
.06
.07
.53
.053
1.05
.056
.38
.72
1.40
1.76
2.13
2.50
2.89
3.29
.08
.10
.09
.77
.077
1.00
.12
.14
.13
1.28
1.10
.141
.93
.23
.55
1.25
1.60
1.96
2.34
2.72
3.12
3.51
1.03
.113
.33
.67
1.01
1.34
1.71
2.07
2.44
2.82
3.24
3.61
How many sandwiches can be made in 2 hours?
= or 270 sandwiches
120 min
0.445 min/sandwich
Example 17.3

113. Question Bowl
Which of the following is the Normal Time for a job whose observed performance time is 10 minutes and whose performance rating is only 90%?
90 minutes
9 minutes
1.10 minutes
minutes
None of the above
Answer: b. 9 minutes (10 x 0.90=9 minutes) 7

114. Question Bowl
Which of the following is the Normal Time for a job whose observed performance time is 35 minutes and whose performance rating is 30% above normal time?
40 minutes
50 minutes
60 minutes
minutes
None of the above
Answer: e. None of the above (NT=35x(1.3)=45.5 minutes) 7

115. Question Bowl
Which of the following is the Standard Time for a job whose Normal Time is 20 minutes and whose Allowances are 5% of Normal Time?
19.05 minutes
21 minutes
400 minutes
450 minutes
None of the above
Answer: b. 21 minutes (ST=NT(1+Allowances) or 20(1.05)=21 minutes) 7

116. Time Study Normal Time Formulas
Normal time(NT)=Observed performance time per unit x (Performance rating)*
*The Performance Rating is usually expressed in decimal form in these formulas. So a person working 10% faster than normal would have a Performance Rating of 1.10 or 110% of normal time. Working 10% slower, 0.90 or 90% of normal.
NT= Time worked x (Performance rating)*
Number of units produced 17

117. Time Study Standard Time Formulas
Standard time = Normal time (Allowances x Normal times)
Standard time = NT(1 + Allowances)
Standard time = NT
1 - Allowances 17

118. The Standard Time • The sum of elemental times gives the standard in
minutes per piece, using a decimal minute watch,
or hour per piece, using a decimal hour watch.
• Most of industrial operations have short cycles
(< 5 min)
• Better express standard in hours per hundred
pieces

119. Pay-for-Performance
Paying employees based on their performance works--improvements in productivity and quality.
Pay-for-performance will become increasingly common components of performance management strategies and systems. 21

120. Compensation Methods
Some reasons a company might use a wage incentive plan
Increased pay for employees
Lower total cost to the company for each unit produced.
Many jobs do not lend themselves to an individual incentive plan.

121. Wage Incentive Plans Piecework plans. Standard hour wage plans.
Gain-sharing plans.
Recommendations for developing and implementing successful wage incentive plans:
The plan should permit earnings about the base rate; good performance should pay at least a 30% bonus.
The plan should benefit both the company and the employees.
The plan should be simple and understandable.
The standards should be protected from capricious and indiscriminate rate cutting.
Earnings should not be affected by factors beyond the control of the worker.

122. Group Incentive Plans Direct-wage group.
Profit-sharing and cost-reduction plans.
The Scanlon plan.
Whenever a plant-s productivity exceeds a preestablished “normal” level, every employee gets a bonus - the higher the level of productivity, the bigger the bonus.
The plan also involves a style of management designed to give each worker some control over his or her job by encouraging participation in decision making affecting it.
Productivity is increased by a well-designed employee suggestion plan and through the use of special committee that constantly prod employees for ideas on how to improve productivity.