Kristu Jyoti College of Management and Technology
Department of Management studies
Operations Management
STUDY MATERIAL
Module IV| BBA |5th Semester
Operations Management
Module –IV
Work Study
Meaning of Work Study:
Work study is the investigation, by means of a consistent system of the work done in an
organization in order to attain the best utilisation of resources i.e., Materials, Machines, Men and
Money. All the technologies and management systems are related with productivity.
The main objective of work study is to improve productivity of men, machines and materials.
The aim of work study is to determine the best method of performing each operation and to
eliminate wastage
Work study is a technique which deals with the following problems:
(a) As to how should a job be done, and
(b) How much time a job should take for completion.
Answer for the first question is found by Motion Study or Method Study or Work Simplification.
Answer for the second question is found by the Time Study or Work Measurement.
Objectives of Work Study:
The following are the objectives of work study:
1. Increased efficiency,
2. Better product quality,
3. To choose the fastest method to do a job,
4. To improve the working process,
5. Less movements to operators and workers,
6. Effective labour control,
7. Effective utilisation of resources,
8. To decide equipment requirements,
9. To pay fair wages,
10. To aid in calculating exact delivery,
11. To formulate realistic labour budgeting, and
12. To decide the required manpower to do a job.
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Advantages of Work Study:
1. Work study ensures higher productivity,
2. Better working conditions with less fatigue,
3. Higher wages to workers,
4. Uniform production flow,
5. Job satisfaction and job security to workers,
6. Reduction in unit cost of production,
7. Quality products to consumers,
8. Fast delivery schedule,
9. Harmonious employer-employee relation, and
10. Better service to customers.
Types of Work Study:
I. Method Study:
II. Time Study (Work Measurement)
I. Method Study:
According to ILO, method study is “the systematic recording, analysis and critical
examination of existing and proposed ways of doing work and the development and
application of easier and more effective method”. In short, it is a systematic procedure to
analyse the work to eliminate unnecessary operations.
Objectives:
The objectives of method study are:
(i) It improves the proper utilisation of manpower, machine and materials;
(ii) It also improves the factory layout, work place, etc.;
(iii) It also improves the process and procedure;
(iv) It develops better physical working environment;
(v) It reduces undesirable fatigue.
Steps:
The steps of method study are:
(i) At first select the proper work which are to be studied;
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(ii) Record all the facts of existing method;
(iii) Examine the facts very critically;
(iv) Develop the most practical, economic, and effective method;
(v) Install the method and the same should be maintained.
Procedure of Method study
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Work selected for method study may be an identified problem area or an identified opportunity.
It may be identified through a systematic review of available data, normal monitoring or control
processes, high levels of dissatisfaction and complaint or as part of a change in management
policy, practice, technology or location, and usually because it meets certain conditions of
urgency and/or priority.
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Before any method study investigation is begun, it is necessary to establish clear terms of
reference which define the aims, scale, scope and constraints of the investigation.
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The Record stage of method study involves gathering sufficient data (in terms of both quality
and quantity) to act as the basis of evaluation and examination.
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The recorded data are subjected to examination and analysis; formalised versions of this process
are critical examination and systems analysis. The aim is to identify, often through a structured,
questioning process, those points of the overall system of work that require improvements or
offer opportunity for beneficial change.
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The aim here is to identify possible actions for improvement and to subject these to evaluation in
order to develop a preferred solution.
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The success of any method study project is realised when actual change is made 'on the ground' -
change that meets the originally specified terms of reference for the project. Thus, the Install
phase is very important.
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II. Time Study (Work Measurement)
Time study is also called work Measurement. Time study is concerned with the determination of
the amount of time required to pet form a unit of work. It consists of the process of observing and
recording the time required to perform each element of an operation so as to determine the
reasonable time in which the work should be completed.
Objectives of Time Study
The main objective of time study is to determine by direct observation, the quantum of human
work in a specified task and hence to establish the standard time, within which an average worker
working at a normal pace should complete the task using a specified method.
The other objectives are:
1. To fix a fair output rate for workers
2. To furnish a basis of comparison for determining operating effectiveness.
3. To set labour standard for satisfactory performance.
4. To compare alternative methods in motion study in order to select the best method.
5. To determine standard costs.
6. To determine equipment and labour requirements.
7. To determine basic times/normal times.
8. To determine the number of machines an operator can handle.
9. To balance the work of operators in production or assembly lines.
10. To set the completion schedule for individual operations or jobs.
11. To determine the cycle time for completion of a job.
Advantages of Time Study
The following are the main advantages of time study:
1. Output standards are easily convertible into standard labour cost per unit of output.
2. Output standards serve as yardsticks guiding managerial comparisons of actual and standard
hourly production rates. An operations manager prepares lists showing actual-to-standard output
ratios for each operator and each operator’s group. These reports enable the supervisor to
identify substandard workers, so that they may be brought up to standard production efficiency.
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3. Output standards facilitate scheduling and controlling the flow of production, through the
determination of numbers of machines and operators required to maintain production schedules
and through balancing line production for the several line operations.
4. Output standards also facilitate evaluation of machine capacities, a knowledge of which aids
plant engineers in selecting replacement machines for purchase and use.
5. Time study may be taken for checking operators’ complaints about tight rates.
6. Observation during a time study may enable the engineer to suggest further improvement in
work methods and work-place output.
7. During a time study, the engineer may note inconsistencies in motion sequences used by
individual operators, leading to retraining recommendations. The men involved may then more
easily attain standard output status.
Limitations of Time Study
1. Time study is not suitable for non-repetitive jobs and for non-standardized or indirect labour
jobs.
2. It is less suitable on jobs paced by automatic machines than on jobs where operators control
the work place.
3. If an output standard is unattainable, it subverts effective performance by lowering operator
morale, due to the offered but unfulfilled incentive.
4. Coupled to incentive wages, output standards may contribute to under emphasis on the quality
of production.
5. Production cost may be increased due to loose output standards.
6. Unions quite frequently oppose the time study because the accuracy of time study is overly
dependent upon the skill and judgment of the time-study man.
7. Mechanical, physiological, psychological and sociological sources of variation may affect the
output and quality performance of workers adversely.
Types of time Study
1. Stop Watch Time Study:
Stop Watch Time Study is one of the equipment used for Time Study. It is employed for
measuring the time taken by an operator to complete the work. Stop watch used for time study
purpose should be very accurate and preferably be graduated in decimals so that it can recover
even up to 0.01 minute.
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A large hand in the stop watch is revolved at a speed of one revolution per minute. The dial of
the stop watch is divided into 100 equal divisions. The small hand inside the stop watch revolves
at a speed of one revolution in 30 minutes.
Procedure of Stop Watch Time Study:
The stop watch procedures for collecting Time Study Data are listed below:
a) Analyse the job to establish the quality to be achieved in the job.
b) Identify key operations to be timed in the job.
c) Get improved procedure from the method study department.
d) Organise resources and explain the objectives of time study to the worker and supervisor.
e) Explain details to worker about improved working procedure.
f) Break operation into elements to separate the constant elements from variable elements.
g) Observe and record the time taken by an operator.
h) Determine for number cycles to be timed and then the average time or representative time can
be found out.
i) Rate of performance of the worker during observation.
j) Calculate normal time from observed time by using performance rating factor.
k) Add process allowance rest and personal allowance and special allowances to the normal time
in order to obtain standard time or allowed time.
l) Standard time determination by adding normal time and allowances
2. Work sampling
Work sampling is the statistical technique for determining the proportion of time spent by
workers in various defined categories of activity (e.g. setting up a machine, assembling two
parts, idle…etc.). In work sampling study, a large number of observations are made of the
workers over an extended period of time.
Work sampling has a long and impressive list of applications but all of them fall into one of
the following three categories:
(i) Work sampling can be used as ratio study of working and idle times.
(ii) It can be utilized as performance sampling study in which working and idleness on
working times are measured and a performance index is prepared.
(iii) It can be used as a work measurement technique.
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3. Synthetic Time Standards
This is used for set labour rate in industry by quantifying the time required to perform specific
task. It is also called method time measurement and Predetermined Motion Time System
(PMTS). Predetermined motion time systems (PMTS) are work measurement systems based on
the analysis of work into basic human movements, classified according to the nature of each
movement and the conditions under which it is made. Criticisms of PMTS relate to their inability
to provide data for movements made under "unnatural" conditions (such as working in cramped
conditions or with an unnatural body posture) or for mental processes and their difficulty in
coping with work which is subject to interruptions. However, various systems have been derived
for "office work," which include tasks with a simple and predictable mental content.
Plant Layout/Factory layout
Plant layout is the most effective physical arrangement, either existing or in plans of industrial
facilities i.e., arrangement of machines, processing equipment and service departments to achieve
greatest co-ordination and efficiency of 4 M’s (Men, Materials, Machines and Methods) in a
plant. Plant layout is a mechanism which involves knowledge of the space requirements for the
facilities and also involves their proper arrangement so that continuous and steady movement of
the production cycle takes place.
According to George R. Terry, “Plant layout involves the development of physical
relationship among building, equipment and production operations, which will enable the
manufacturing process to be carried on efficiently”.
Advantages of a Good Layout
a. Advantages of layout to Worker
1. Reduction in the effort of the worker.
2. Fewer material handling operations.
3. Extension of the process of specialization.
4. Ensuring maximum efficiency.
5. Better working condition and reduction in the number of accidents.
b. Advantages of layout in Labour Costs
1. Reduction in the number of workers.
2. Increase in production per-man-hour.
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3. Reduction in the length of haul.
4. Minimum lost motions between operations.
c. Advantages of layout in other manufacturing
costs
1. Maintenance and tool replacement costs are reduced.
2. Spoilage and scrap are minimized.
3. Greater saving in the waste of raw material consumption.
4. Improved quality of product due to reduction in the number of handlings.
5. Saving motive power.
6. Effective cost control.
d. Advantages of layout in Production Control
1. Provision of adequate and convenient storage facilities.
2. Better conditions for receipts, shipment and delivery.
3. Increased pace for production.
4. Achievement of production targets unfailingly.
5. Reduction in the number of stock-chasers who are employed to get the work done on time.
e. Advantages of layout in Supervision
1. Helps in easing the burden of supervision.
2. Reduces the level of inspection and this minimizing the cost of inspection.
f. Advantages of layout in Capital Investment
1. Investment in machinery and equipment is reduced
2. Permanent investment is kept at the minimum
3. Floor space and shop areas required for manufacturing are reduced.
Problems of Bad Plant Layout
The symptoms of bad layout are as follows:
1. Movement of machines, materials, part assemblies and even workers.
2. Excessive number of work-in-process.
3. Poor utilization of space.
4. Long material flow lines.
5. Excessive handling by skilled workers and increased handling costs.
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6. Increase in maintenance time.
7. Long production cycles.
8. Delay in delivery schedules.
8. Increase in handling costs.
10. Difficulty experienced in supervision and control.
11. Increase in breakage of materials and products.
Top 10 Factors influencing design of plant layout
The following factors should be considered While designing the layout.
1. Nature of the product: The nature of the product to be manufactured has a significant
influence on plant layout. Small and light products can be moved from one machine to
another with minimum effort and time and therefore line layout would be more suitable.
Stationary layout would be suitable for heavy and bulky products. In case of production of
large variety of non-standardized products, process layout is ideal.
2. Production volume: Line layout should be preferred if standardized commodities are
manufactured on a large scale. Functional layout is suitable if production is based on
customers orders. It is better suited for low volume job production.
3. Location of the site: The topology and size of the site influences the choice of a particular
layout. The idea is to maximize the utilization of space. Layout should also suit the factory
building. The positioning of elevators, stairways, parking lots and storage points also
influence the layout.
4. Type of machines: Stationary layout is preferable if machines are heavy and emit more
noise. Such heavy machinery can be fitted on the floor. Adequate space should be provided
for the location of machines and also there should be sufficient space between them to avoid
accidents.
5. Climate: Temperature, illumination, ventilation should be considered while deciding on the
type of layout. The above factors should be considered in order to improve the health and
welfare of employees.
6. Service facilities: The layout should provide for the comforts and welfare of the employees.
It should have adequate provision for rest rooms, drinking water, lavatory. There should be
sufficient space for free movement of workers.
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7. Safety of employees: While deciding on a particular type of layout, the safety of employees
should be given importance. The layout should provide for obstruction free floors, non-
slippery floors, protection against dangerous fumes, excess heat, strong odors Etc.
8. Type of production: Layout plans differ according to the type of production. In case of job
orders, production of non-standardized products are undertaken, and therefore functional or
process outlet is suitable. Line layout would be suitable when there is mass production of
standardized goods.
9. Type of process: In the case of intermittent type of production (bi-cycle manufacturing,
electronics), functional layout is suitable. For synthetic type of Production (cement and
automobile industries), line layout is preferable.
10. Management policies: Policies of the management relating to type of product, quality, scale
of production, level of plant integration, type of production, possibility of future expansion
etc., influence the type of layout to be adopted.
Steps involved in designing a plant layout
The primary objective of plant layout is to maximize production at minimum cost. The layout
should be designed in such a way that it is flexible to change according to new processes and
production techniques.
The following are the steps involved in designing a layout:
1. Collection of required data: Data about the size of the plant, type of products to be
produced, method of production to be adopted, extent of space available, extent of
mechanization etc. are to be collected.
2. Preparation of blueprint for the floor plan: Based on the data gathered, a blue print has to
be prepared for the floor plan. Care should be taken to ensure, that the layout provides for
unhindered movement of men and materials with minimum possible effort and time.
3. Preparation of process chart and flow diagram: The process chart and flow diagram
depicting the various activities to be performed and the linkages between them has to be
prepared.
4. Preparation of draft layout: A draft layout needs to be prepared clearly depicting the
positioning of men and materials and the process flow. The draft layout should be circulated
and discussions held with employees inviting suggestions for improvement. Flaws pointed
out need to be corrected and suggestions received incorporated after due discussions.
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5. Test run: A test run is important to understand the efficiency of the layout in a real time
work environment. Problems not noticed in the earlier stages can occur at this stage. The
initial problems noticed need to be modified and test runs should be continued for at-least a
few times to ensure that the layout is able to facilitate maximum production at minimum cost.
Types of Plant layout
A. Product or line layout,
B. Process or functional layout,
C. Layout by stationary material
D. Fixed Position Layout
E. Combination Type of Layout
F. Just in time layout
(A) Product or Line Layout:
Product or Line Layout is the arrangement of machines in a line (not always straight) or a
sequence in which they would be used in the process of manufacture of the product. This type of
layout is most appropriate in case of continuous type of industries where raw materials is fed at
one end and taken out as finished product at the other end. For each type of product, a separate
line of production will have to be maintained. This type of layout is most suitable in case of
metal extraction industry, chemical industry, soap manufacturing industry, sugar industry and
electric industry. It should be noted that this method is most suitable in case of mass production
industries.
Product layout is suitable where:
(i) large quantity of standardized products are produced;
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(ii) the standardized products are to be processed repetitively or continuously on the given
production facilities;
(iii) there must be sufficient volume of goods processed to keep the production line actively
occupied,
(iv) there should be greater interchangeability of the parts;
(v) to maintain good equipment, balance each work station must employ machines or
equipment’s of approximately equal capacities.
(B) Functional or Process Layout:
It is just the reverse of product layout. There is a functional division of work under this method.
For example, lathes are fixed in one department and welding activities are carried in another
department of the factory. The salient features of this type of layout are based on Frederick W.
Taylor’s concept of ‘functional organisation’.
This method is generally adopted for producing different varieties of unlike products. This is
particularly adopted tor job order industries like engineering, ship building and printing etc. The
following diagram shows that raw material travels through various process or departments from
lathes passing through mills, grinders, drills, welding, inspection, finishing, and assembly and to
finished product.
(C) Layout by Stationary Material:
This type of layout is undertaken for the manufacture of large parts and assemblies. In this case,
material remains fixed or stationary at one place, men and equipment are taken to the site of
material. This is suitable in case of ship building, locomotives and heavy machinery industries
etc.
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(D) Fixed Position Layout:
This type of layout is the least important for today’s manufacturing industries. In this type of
layout, the major component remains in a fixed location, other materials, parts, tools, machinery,
man power and other supporting equipment’s are brought to this location.
The major component or body of the product remain in a fixed position because it is too heavy or
too big and as such it is economical and convenient to bring the necessary tools and equipment’s
to work place along with the man power. This type of layout is used in the manufacture of
boilers, hydraulic and steam turbines and ships etc.
(E) Combination Type of Layout:
Now a days in pure state any one form of layouts discussed above is rarely found. Therefore,
generally the layouts used in industries are the compromise of the above mentioned layouts.
Every layout has got certain advantages and limitations. Therefore, industries would to like use
any type of layout as such.
Flexibility is a very important factory, so layout should be such which can be molded according
to the requirements of industry, without much investment. If the good features of all types of
layouts are connected, a compromise solution can be obtained which will be more economical
and flexible.
(F) Just in time layout:
Just in time layout (JIT) inventory system is a management strategy that aligns raw-material
orders from suppliers directly with production schedules.
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