TIME STUDY

- A technique for developing a standard

based on actual observations of the
operator

- Sets a standard time based on timed
observations of one employee taken
over a number of cycles
- A cycle includes all the elements of the
job.
PROCEDURE FOR A TIME STUDY
1. Choose the job for the time study
2. Tell the worker whose job you will be studying
3. Break the job into easily recognizable units
4. Calculate the number of cycles you must observe.
5. Time each element, record the times, and rate the
workers performance
6. Compute normal time
7. Compute the standard time
HOW TO DO A TIME STUDY
When making a time study several
decisions are made to assure desired
results:
# of observations to make
Desired level of accuracy
Desired level of confidence for the estimated
standard time
Desired accuracy level is typically
expressed as a % of the mean observed
times


DOING A TIME STUDY
Need to determine how many observations are required
Involves determining the level of accuracy required and
confidence level desired



n: number of observations of an element that are needed
z: the number of normal standard deviations needed for desired confidence
s: the standard deviation of the sample
a: desired accuracy or precision
x-bar: the mean of the sample observations
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Pats Pizza Place: Pat hires an analyst to determine a
standard time to prepare a large pepperoni and cheese
pizza. He takes 10 observations of the 7 elements and
calculates the mean time and the standard deviation
per element. He must then calculate the # of
observations to be within 5% of the true mean 95% of
the time.










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5
6
7
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A B C D E
Example 11.3 Pat's Pizza Place
Standard Deviation Mean Observed Revised Observed
Work Element (minutes) Time (minutes) Time (minutes) # Observations
1. Get ball of dough 0.010 0.12 0.15 11
2. Flatten dough 0.030 0.25 0.25 23
3. Spin and toss dough 0.040 0.50 0.60 10
4. Place dough on counter 0.005 0.12 0.15 3
5. Pour sauce on formed dough 0.035 0.30 0.30 21
6. Place grated cheese on top 0.025 0.25 0.28 16
7. Place pepperoni on sauce 0.030 0.24 0.28 25
The analyst must calculate the observations for
each element to determine how many additional
observations must be taken. The maximum
number of 25 (in this case) for element #7
means that an additional 15 observations must
be made and then the observed times are
revised.
ns observatio 25
0.24
0.03
0.05
1.96
x
s
a
z
n
2 2
7 =
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OTHER FACTORS USED IN CALCULATING
STANDARD TIME
The normal time (NT) is the mean observed time
multiplied by the performance rating factor
(PRF)

The PRF is a subjective estimate of a workers
pace relative to a normal work pace

The frequency of occurrence (F) is how often the
element must be done each cycle.
OTHER FACTORS USED IN CALCULATING
STANDARD TIME
The allowance factor (AF) is the amount of time
allowed for personal, fatigue, and unavoidable
delays
Standard Time=normal time x allowance factor,
where:
(NT)(AF) ST
117.6% 1.176
0.15 1
1
PFD 1
1
AF Worked Tme
=
= =

=
CALCULATING NORMAL TIME AND STANDARD
TIME AT PATS PIZZA
12
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15
16
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A B C D E F
Example 11.4 Calculating Standard Time for a Hand-Tossed Cheese and Pepperoni Pizza
Revised Observed Performance Rating Frequency Normal Time Standard Time
Work Element Time (minutes) Factor (minutes) (minutes)
1. Get ball of dough 0.15 0.90 1 0.135 0.159
2. Flatten dough 0.25 1.00 1 0.250 0.294
3. Spin and toss dough 0.60 0.85 1 0.510 0.600
4. Place dough on counter 0.15 1.10 1 0.165 0.194
5. Pour sauce on formed dough 0.30 1.20 1 0.360 0.423
6. Place grated cheese on top 0.28 1.00 1 0.280 0.329
7. Place pepperoni on sauce 0.28 0.95 1 0.266 0.313
Total Time 1.966 2.312
The standard time for preparing a large, hand-tossed
pepperoni pizza is 2.312 minutes. This means that a
worker can prepare 207 pizzas in an 8-hour shift (480
minutes divided by 2.312 minutes)

OTHER TIME STUDY METHODS
Elemental time data establishes standards
based on previously completed time studies,
stored in an organizations database.

Predetermined time data (e.g. MTM and MTS) is
a published database element time data used
for establishing standard times
Reach, grasp, move, engage, insert, turn, etc.

Work Sampling is a technique for estimating
the proportion of time a worker spends on an
activity

WORK SAMPLING PROCEDURE
1. Identify the worker or machine to be sampled
2. Define the activities to be observed
3. Estimate the sample size based on level of
accuracy and confidence level
4. Develop the random observation schedule. Make
observations over a time period that is
representative of normal work conditions
5. Make you observations and record the data. Check
to see whether the estimated sample size remains
valid
6. Estimate the proportion of the time spent on the
given activity

Work Sampling Example: We are interested in estimating the
proportion of time spent by secretaries arranging and
scheduling travel. We are considering the possibility of
bringing an on site travel agency to free up secretaries from
this time consuming task. We estimate that the proportion
might be as high as .50.

Step 1 We need to estimate the number of observations
needed to provide an estimate with 97% confidence (z=2.17),
and the resulting estimate will be within 5% of its true value.
We use

0.5 p =

( ) ns observatio 470.89 0.5 1 0.5

0.05
2.17
p 1 p
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Step 2 Based on the first 30 observations the secretary was
making travel reservations 6 times (6 out of 30
observations = 0.2). With this new estimate, recalculate the
sample size needed .



Final Step After making the 302 observations, the
secretary was making reservations 60 times or 19.9%.
This estimate can now be used to make the decision
on savings that might result by consolidating this
task with an in house travel agency


( ) ns observatio 302 0.2 1 0.2
0.05
2.17
n
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COMPENSATION
Compensation is the third part of work system design

Time-based plans (pay based on the number of hours
worked) vs. output-based systems (pay based on the
number of units completed)

Group incentive plans: profit sharing & gain sharing
Plans put part of a workers salary at risk
Does the compensation system undermine teamwork?
Does plan prevent free-riders not doing their fair share?
Does the incentive plan encourage workers to support the
long-term health of the organization?


WORKER COMPENSATION SYSTEMS
Group incentive plans reward employees when
company achieves certain performance objectives

Profit sharing a employee bonus pool based on
sharing of companys profits

Gain sharing emphasizes cost reduction rather than
profits
Plans put part of a workers salary at risk

Compensation system may undermine teamwork

LEARNING CURVES
When the number of times the task is repeated
doubles, the time per task reduces as shown in
the graph
With an 85% learning curve rate, the 2nd time a
task is done will take 85% of the 1st time.
The 4
th
time will take 85% of the 2
nd
If an employee took 12 hours to complete an initial
task, how long will the 16
th
time take (4
th

doubling)?









T x L
n
= time required to perform a task the nth time
T = the time required to perform the task the first time
L = the rate of learning
n = the number of times the task has doubled

hours 6.26 (.85) x 12 task 16th for Hours
4
= =