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Questions and Answers

What is the Total Productivity Measure (TPM) calculated by?

Total tangible input - Total tangible output

Total tangible input ÷ Total tangible output

Total tangible output + Total tangible input

Total tangible output ÷ Total tangible input (correct)

Which of the following is considered a controllable factor that can influence productivity?

Social changes

Motivation and training (correct)

Natural resources

Government policies

Which partial productivity measure refers specifically to labour input?

Energy productivity

Material productivity

Capital productivity

Labour productivity (correct)

What is a significant disadvantage of partial productivity measures?

They overemphasize one input factor. Signup and view all the answers

How is Total tangible output defined?

Value of finished goods + partial units + other income Signup and view all the answers

What common factor can significantly influence economic shifts in productivity?

Shift from agriculture to manufacturing Signup and view all the answers

Which of the following refers to total inputs in the context of productivity measures?

Value of human + material + capital + energy inputs Signup and view all the answers

Which is NOT a component of the Total Productivity Measure?

Value of liabilities incurred Signup and view all the answers

What does high productivity primarily involve?

Reducing work time and resource expenditure without compromising quality. Signup and view all the answers

What is the main focus of method study?

Investigating the most effective means to reduce work content. Signup and view all the answers

Which statement accurately describes work measurement?

It measures the time for a qualified worker to complete a specific job. Signup and view all the answers

How is productivity defined in the context of operations management?

The ratio of output produced to the resources used for production. Signup and view all the answers

What are controllable factors in productivity management?

Work environment and employee motivation. Signup and view all the answers

Which of the following is NOT a focus of work-study?

Evaluating employee satisfaction with their work conditions. Signup and view all the answers

Which category do factors like technology upgrades or economic shifts fall under in productivity assessment?

Un-controllable or external factors Signup and view all the answers

What is NOT a component of the productivity formula?

Efficiency rating Signup and view all the answers

What is one objective of method study techniques?

To develop the best answer possible based on a critical examination of facts Signup and view all the answers

Which step comes immediately after selecting the work to be studied in the methods study process?

Record relevant facts about the job Signup and view all the answers

Which area is NOT mentioned as applicable for method study techniques?

Retail operations Signup and view all the answers

What is the purpose of evaluating different alternatives in the method study process?

To compare the cost-effectiveness of the selected new method with current practices Signup and view all the answers

Which of the following is a benefit of method study in manufacturing sectors?

Improving plant and material utilization Signup and view all the answers

What does the final step of the method study process involve?

Training involved personnel to apply the new standard method Signup and view all the answers

How does method study contribute to reducing manufacturing costs?

By streamlining operations to reduce cycle times Signup and view all the answers

Which of the following objectives does method study NOT aim to achieve?

To increase worker dissatisfaction by creating more complex tasks Signup and view all the answers

Which type of process chart focuses on the activities performed by workers?

Man type chart Signup and view all the answers

What is the primary application of a Two Handed Process Chart?

To visualize the complete sequence of activities in a repetitive task Signup and view all the answers

What type of chart is used to show the inter-relationship of activities of multiple subjects over a common time scale?

Multiple activity chart Signup and view all the answers

Which diagram is typically used to supplement a flow process chart by representing the layout of equipment and paths?

Flow diagram Signup and view all the answers

In what way does a String Diagram assist in recording worker movements?

By utilizing the length of a string to represent movement patterns Signup and view all the answers

What information is NOT typically collected by a Multiple Activity Chart?

Sequence of equipment operations Signup and view all the answers

Which process chart type specifically records the hands’ activities of a worker?

Two Handed Process Chart Signup and view all the answers

What is the main focus of a Flow Process Chart?

Mapping transportation and storage events Signup and view all the answers

What does micro-motion study aim to achieve?

Identify the best pattern of movements Signup and view all the answers

Which method is primarily used to record Therbligs in a simultaneous motion cycle?

SIMO Chart Signup and view all the answers

What is another name for work measurement?

Time study Signup and view all the answers

Which objective of work measurement helps assess the initial manpower requirement?

Planning and control Signup and view all the answers

Which technique involves observing a job to record times and rates of working?

Time study Signup and view all the answers

What is the primary focus of work sampling in work measurement techniques?

Analyzing data without direct observation Signup and view all the answers

What type of investigation is work measurement concerned with?

Reduction of effective time Signup and view all the answers

Which of the following is NOT a technique of work measurement?

Task automation Signup and view all the answers

What is the primary purpose of selecting a job for method study based on economic aspects?

To reduce production costs Signup and view all the answers

Which of the following is NOT a human consideration when selecting a job for method study?

Inconsistent quality of the product Signup and view all the answers

What type of chart is specifically designed to represent the sequence of operations and inspections in a manufacturing process?

Operation process chart Signup and view all the answers

When implementing a method study, which recording technique focuses on detailed movements of workers?

Micro-motion chart Signup and view all the answers

Which of the following factors is a key technical aspect to consider when selecting a job for method study?

Frequent quality issues Signup and view all the answers

What is the significance of using a flow process chart in method study?

It provides a graphic representation of production activities Signup and view all the answers

In which situation would a job primarily be selected based on economic considerations?

When there are excessive labor costs Signup and view all the answers

Which chart is utilized primarily for understanding multiple activities performed simultaneously?

Multiple activity chart Signup and view all the answers

Study Notes

Operations Management (OPTS2001)

Course name: Operations Management
Course code: OPTS2001
Institution: GITAM School of Business, Visakhapatnam

Unit IV: Productivity

Introduction

Productivity is crucial for industrial firms and national economic progress.
High productivity means completing work quickly with minimal resource expenditure without compromising quality.

Introduction (cont'd)

Work study forms the basis for work system design.
Work design aims to identify the most effective ways to achieve necessary functions.
Work study improves existing and proposed work methods, establishing standard work times.
It comprises method study and work measurement.

Introduction (cont'd)

Method study systematically records and analyzes existing and proposed work methods to improve efficiency and reduce costs.
Work measurement uses techniques to determine the time a qualified worker needs to complete a specific task at a defined performance level.

Introduction (cont'd)

Method study focuses on reducing work content and establishing the optimal way to do a job.
Work measurement involves investigating and reducing ineffective work time and setting time standards based on the standard method.

Productivity

Productivity is the quantitative relationship between what's produced and the resources used to produce it (output/input).
Productivity can be expressed as Output ÷ Input.

Productivity (cont'd)

Productivity reflects the efficiency of a production system.
It's a key concept in production management.
It's an indicator of how well production factors (land, capital, labor, energy) are utilized.

Factors Influencing Productivity

Productivity factors are broadly classified as controllable (internal) and uncontrollable (external) factors.

Controllable or Internal Factors

Product: Meeting requirements.
Plant and equipment: Availability and reducing idle time.
Technology: Automation.
Materials and energy: Reducing consumption.
Human factors: Motivation and training of workers.
Work methods: Improving how things are done.
Management style: Communication, policy and procedures.

Uncontrollable or External Factors

Structural adjustments: Including economic and social changes.
Economic factors: Shifts in employment, technology import, and industrial competitiveness.
Social factors: Involvement of women in the workforce, education, values, and attitudes.
Natural resources: Manpower, land, and raw materials.
Government and infrastructure: Government policies, transport, power, and fiscal policies.

Total Productivity Measure (TPM)

TPM considers all inputs.
Applicable to manufacturing and service organizations.
Total productivity = Total tangible output ÷ Total tangible input.
Tangible output = Value of finished goods + Partial units+ Dividends + Interest + Other income
Tangible input = Value of (human + material + capital + energy + other) input used
Tangible means measurable.
Output and input should be in the same measurement unit (e.g., rupees).

Partial Productivity Measures (PPM)

Partial productivity = Total output ÷ Individual input.
Types of PPM:
- Labour productivity = Total output ÷ Labour input.
- Capital productivity = Total output ÷ Capital input.
- Material productivity = Total output ÷ Material input.
- Energy productivity = Total output ÷ Energy input.
Partial productivity may overemphasize one factor at the expense of others.

Example 1

A company's productivity calculations from illustrative examples.

Example 2

Provides data from an illustration for various productivity indices.
- Computes labor, capital, material, energy, other miscellaneous, and total productivity.

JOB Design

Job Design is the process of deciding the content of a job; duties, responsibilities, methods, techniques, systems, procedures, and relationships between the jobholder and superiors, subordinates, and colleagues

JOB Design (cont'd)

Job design is deciding a job's contents, methods, and processes, optimizing work time.
Avoiding manual work handled by machines.
Job design provides a framework for job analysis.
- Finding out qualities, skills and needs for the job.

JOB Design (cont'd)

Job design decisions incorporate who, what, where, when, why, and how based on mental, physical characteristics of the workforce, tasks, location of work areas, time of occurrence in the work flow. Organizational rationale and worker motivation. A jobs method of performance and motivation.

Job Rotation

A job rotation technique involves planned movement of employees between two or more jobs.
Aims to provide broader skills, enhance job satisfaction, and facilitate cross-training.

Job Enlargement

Job enlargement expands the number of tasks in a job, adding variety to reduce monotony.
Horizontal restructuring method.

Job Enrichment

Job enrichment increases job responsibilities to enhance job satisfaction.
Vertical restructuring method, giving workers more authority, autonomy, and control.

Work Study

A generic term encompassing method study and work measurement to systematically examine a job, its contexts, and influencing factors for improvement.
Means for improving firm productivity by eliminating unwanted operations.
Technique for identifying non-value-adding activities.
Provides an accurate and systematic way for establishing time standards.

Work Study (cont'd)

Work study has two main techniques: Method study and Work Measurement.
Method study further breaks down into Motion study
Work measurement further breaks down into Time study.

Advantages of Work Study

Smooth production, reduced product costs, improved worker-management relations, efficient resource utilization, better work conditions, improved layout, standardized procedures.

Method Study

Systematic analysis of each operation for improvement.
Aims to remove unnecessary steps and optimize work methods.
Breakdown of an operation into component elements for systematic analysis.
Objective is finding better ways to do things and increasing efficiency while eliminating waste.

Objectives of Method Study

Finding better ways of doing jobs.
Adding value and increasing efficiency by removing waste.
Improved workplace layout.
Improved working procedures.
Improved use of people, machines, and materials.
Improved product design.

Objectives of Method Study (cont'd)

Present true facts about the situation and analyze them critically
Develop the best possible answer based on that critical examination

Scope of Method Study

Applicable to various industries, including services.
Improving procedures and sequences of work.
Streamlining material flow, reducing delays, and improving layout.
Improving working conditions.
Reducing monotony, improving plant and material utilization.
Improving manufacturing costs through shorter operation cycles

Steps or Procedure Involved in Methods Study

Selecting the job for study and defining its boundaries
Recording relevant facts through observations and collecting additional data
Examining and challenging existing procedures, purposes, sequencing, and methods
Developing the best practical, economic, and effective method, drawing on the contributions from those involved.
Evaluating alternative methods for cost effectiveness.
Defining the new method for management, supervisors, and workers.
Installing the new method as standard practice and training those involved.
Maintaining the new method to prevent returning to previous methods

Selection of the Job for Method Study

Should be based on economic, technical, and human considerations.

A. Economic Aspects

Bottleneck operations.
Excessive labor.
Significant scrap or defects.
Poor resource utilization.
Excessive material handling or backtracking

B. Technical Aspects

Technical expertise for the involved job.
Inappropriate quality.
High scrap rate
Worker complaints.

C. Human Considerations

Worker complaints about strenuous work.
High accident frequency.
Inconsistent worker earnings.

Recording Techniques for Method Study

Charts: Macro-Motion Charts (Operations Process Chart, Flow Process Chart, Two-Handed Process Chart, Multiple Activity Chart).
Micro-motion Chart: SIMO Charts.
Diagrams: Flow Diagrams and String Diagrams

Method Study Symbols

Symbols used to represent operations, inspections, transportation, delays, and storage in flowcharts.

1. Operation Process Chart

Divides a manufacturing process into separate operations, showing material introduction points and inspection stages.
Visual representation of the process, allowing for analysis and improvement.

2. Flow Process Chart

Elaborates upon Operation Process Charts; providing a more detailed representation of operations, including transportation, storage, and delays in a sequence.
Types: Material (material-centric), Man (operator-centric), Equipment (machine-centric)
Visually depicts the overall flow of work.

3. Two Handed Process Chart

Records simultaneous activities of both hands of an operator.
Useful for visualizing complete sequence and identifying potential improvements to coordination and efficiency.

4. Multiple Activity Chart

Displays the activities of multiple people or machines over time.
Provides an overview of inter-relationships amongst activities.
Useful for analyzing idle time, equipment utilization, and assigning workers to tasks.

1. Flow Diagram

Provides a graphical representation of a plant layout or manufacturing environment.
Depicts the layout of machinery, storage areas, and movement paths.

2. String Diagram

Scale drawing depicting the movement paths of workers or materials.
Useful for identifying inefficient movement patterns and potential improvements in layout.

Micro-Motion Study Chart

Divides human activities into smaller motions (Therbligs).
Aids in finding optimal methods for tasks.
Therbligs were categorized by Frank Gilbreth.

1. SIMO Chart

Simultaneous Motion Chart.
Used to analyze activity and coordination in tasks; involving recording multiple Therbligs performed by different body parts and/or people at the same time.
Used as a form of micro-motion study.

Work Measurement

Applying techniques establishing time for qualified workers to perform a specified task (measured at a baseline performance level).

Objectives of Work Measurement

Comparing different methods.
Determining optimal staffing levels.
Planning and controlling operations.
Establishing accurate costing.
Managing financial incentives.
Setting delivery dates.
Cost Reduction
Identifying non-performing workers
Employee Training

Techniques of Work Measurement

Time study (stopwatch technique), synthesis, work sampling, predetermined motion and time study (PMTS), and analytical estimating.

1. Time Study

Measuring the time required for each element of a task.

2. Synthetic Data

Building up time estimates for new tasks using element times from similar past tasks in a project.

3. Work Sampling

Observing workers or machines over a period, recording activities and calculating the proportion of time for each activity.

4. Predetermined Motion Time Study (PMTS)

Establishing time standards for basic human motions. MTM (Method Time Measurement) is most commonly used.

5. Analytical Estimating

Estimating time based on practical experience and synthetic data.

Time Study

Work measurement method.
Vital for operations planning and control.
Techniques to determine time for qualified workers performing specific tasks at a set performance level.

Steps in Making Time Study

Selecting tasks to be studied.
Gathering information about the job, worker, and conditions.
Decomposing tasks into elements.
Measuring time for each element using a stopwatch.
Assessing worker speed (performance rating).
Adjusting observed time per element by the rating factor.
Incorporating allowances (fatigue, personal time, etc.).
Calculating standard time for the whole job.
Creating detailed job descriptions.
Inspecting standards as needed.

Computation of Standard Time

Time required for a worker under the desired conditions and performance levels, per task unit.

Computation of Standard Time (cont'd)

Components: Elemental Time, Performance Rating, Relaxation Allowances, Interference and Contingency allowances, and Policy Allowances.
Expressing values in the same unit (e.g., minutes).

Example 1 and 2 (Calculation)

Illustrative examples calculating normal and standard times given observed times and ratings.
Efficiency of an operator performing 50 tasks/jobs within a timeframe (6 hours 30 min).

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