Administrative Operation Systems Presentation - Work Measurement Techniques

ADMINISTRATIVE OPERATION SYSTEMS By: Nor Fazalina Salleh  CHAPTER 7 CHAPTER 8 Measuring Output of Improving productivity Office Employee of Office Employee CHAPTER 9 CHAPTER 10 Quality and Quantity Budgetary and Cost Control Control ...

ADMINISTRATIVE OPERATION SYSTEMS By: Nor Fazalina Salleh  CHAPTER 7 CHAPTER 8 Measuring Output of Improving productivity Office Employee of Office Employee CHAPTER 9 CHAPTER 10 Quality and Quantity Budgetary and Cost Control Control  07 CHAPTER 7 Measuring Output of Office Employee WORK MEASUREMENT Process used to determine what constitutes a fair day’s work from both the perspective of the employer and the employee  OBJECTIVE OF WORK To express expected output or production levels. (To aid in setting work standards) MEASUREMEN To aid in the planning and scheduling of work. T To aid in determining the number of employees needed to complete a project in the allotted time/by deadline. To aid in determining the efficiency of work methods and procedures/processes. To aid in determining the cost of office operations. To aid in determining equitable workloads for employees. Characteristics of Measurable Office Activities Tasks have to be isolated and counted. Tasks must be fairly consistent from one measurement to another. Tasks should be performed in sufficient volume to justify the cost of measurement. Tasks need to be void of considerable amounts of judgment and decision making. WORK MEASUREMENT PROGRAM Before a work measurement program is developed, employees must be convinced it has a need and will produce desirable results. Work Measurement Program Steps: 1. Make preliminary plans 2. Hire employees 3. Gain acceptance of and support for the program 4. Collect important data 5. Analyze collected data and develop standards 6. Train supervisors and managers 7. Instruct employees 8. Follow up.  WORK MEASUREMENT TECHNIQUES Production Work Sampling Time Study Records Work measurement uses random uses a stopwatch to technique in which observations to determine the amount employee output records determine the amount of of time each element of are used to determine the time consumed by each work process takes to amount of time needed to element of a job task or complete complete a particular job. duty Predetermine Micromotion Standard Time Data Study A technique that makes a visual A technique that involves recording (motion, picture, video or purchasing performance data that digital video) of the process being are used to determine the amount studied, after which the recording is of time taken to complete each used to determine inefficiencies as element of a work process well as the amount of time consumed by each element PERFORMANCE LEVELING Process of adjusting work standards in light of work processes being performed, employee differences, effect of fatigue, and so forth WORK STANDARD  Are based on the data collected through work measurement processes.  They should not be set at such a level that only the most productive worker will be able to attain them.  Nor should they be set at such a level that nearly every employee can attain them with putting forth little effort to do so. TYPES OF STANDARDS QUALITY STANDARDS Measure the accuracy and acceptability of QUANTITY work. DESCRIPTIVE STANDARDS STANDARDS Identify what is Are expressed in units acceptable in terms of of output per unit of the descriptive nature of time. something in an office, such as furniture.  CHAPTER 8 08 IMPROVING PRODUCTIVITY OF OFFICE EMPLOYEES PRODUCTIVIT Y  Is the result obtained from dividing output by input.  The more output an organization obtains from constant levels of input, the better its productivity.  PRODUCTIVITY Constraining nature of government DILEMMA regulations, actions, and policies. Declining work ethic. Declining research and development expenditures. Declining capital investment. Increasing number of service workers. Changing characteristics of workforce. Constraining practices, policies, and attitudes of management. PRODUCTIVITY IMPROVEMENT PROGRAM Characteristics of Successful Program: Have top-management support. Have employee commitment. Have top-priority status. Have productivity goals. Have employee participation. Have an employee rewards feature. Have effective program leadership. Have an effective communication element. Have effective measurement techniques/devices.  PRODUCTIVITY OF IMPROVEMENT PROGRAM Steps in Developing a Productivity Improvement Program: Carry out preliminary planning. Assess the current situation. Select areas/activities to be included. Develop alternative solutions. Design the solution. Develop an implementation plan and implement the solution. Conduct a follow-up of the solution. MEASURING OFFICE PRODUCTIVITY Areas that can help to improve productivity: WORK PROCESSES AND PROCEDURE OFFICE PERSONNEL TECHNOLOGY WORK ENVIRONMENT PRODUCTIVITY IMPROVEMENT TECHNIQUE 1. Flextime 2. Job Sharing 3. Job Security 4. Employee Participation 5. Quality Circles 6. Quality of Work Life (QWL) 7. Employee Assistance Program 8. Communication 9. Burnout Reduction 10. Incentive 11. Mental and Emotional Stress Reduction 12. Team Building 13. Problem Solving 09 CHAPTER 9 QUALITY AND QUANTITY CONTROL  CONTROL QUALITY QUANTIT CONTROL CONTROL Y Formal process which CONTROL helps assures that Formal process which helps assure that a helps assure that a actual results conform sufficient level of sufficient level of with desired or error-free work is output is being anticipated results produced. achieved within organizations  PROCESS OF CONTROL Define the parameters of the work being subjected to the control process. Determine actual results. Evaluate actual results. Compare actual results with expected results. Apply corrective measures when needed. ELEMENTS OF CONTROL IDENTIFICATION OF ANTICIPATED RESULT FACTORS TO APPLICATION OF CONTROL CORRECTIVE MEASURES MEASUREMENT DEVICE TYPES OF CONTROL QUALITY QUANTITY STANDARDS STANDARDS Standards that provide the ability Standards that provide the ability to evaluate the accuracy with to determine whether production which work is produced. is matching expectations. TECHNIQUE TO CONTROL TOO MUCH WORK 1. Employee Overtime 2. Temporary Help 3. Part-Time Help 4. Floating Work Unit 5. Cycle Billing TECHNIQUE TO CONTROL TOO little WORK 1. Time off 2. Work Backlog 3. Maintenance Projects Work scheduling Process that aids in assuring the completion of work by the expected deadline. Work Scheduling Device: Schedule Log Work Chart Work Schedule Calendar Gantt Chart  10 CHAPTER 10 BUDGETARY AND COST CONTROL  BUDGETING BUDGETIN BUDGET G BUDGETAR Process of planning and preparing a Organization’s Y CONTROL financial blueprint. budget. Process of regulating the operating budgets of the organization. PURPOSE OF BUDGETING Helps management maintain the cost- effectiveness of the organization’s operations. Helps ensure the Helps the organization organization’s better plan for the operations are future. performed more efficiently. PREREQUISITE FOR SUCCESSFUL BUDGETING FINANCIAL DATA COMMITMENT OF TOP PROPER MANAGEMENT ORGANIZATION ELEMENTS OF BUDGET PREPARATION DEVELOPING THE BUDGET Fixed Costs Variable Costs REVISING THE BUDGET DETERMINING THE Periodic Review - Semivariable Costs BUDGET PERIOD Predetermined Progressive Review Length of the – Standard length period time spans Moving Review - Revised each month Cost control Process of managing the expenditures incurred in performing various office operations. OBJECTIVE OF Cost control To develop standard costs for various office operations. To develop, within the employees, a desire to be cost conscious. To assist in the development of efficient operating procedures. To allocate the costs of operations to the appropriate functions. To identify inefficient operations. TECHNIQUES FOR CONTROLLING OFFICE COST 1. Personnel Costs 2. Supplies and Materials Costs 3. Equipment Cost 4. Work Process Costs 5. Overhead Cost THANK YOU