Work Measurement & Method Analysis: Techniques, Tools & Optimization

TAKEAWAYS:

• Work measurement quantifies work content using techniques like time study and work sampling to set standards and improve efficiency.
• Method analysis evaluates existing workflows to eliminate waste (e.g., unnecessary motions, delays) using tools like process charts and flow diagrams.
• Productivity gains from optimized methods can reduce costs by 15–30% (e.g., Kathmandu’s traffic routes or NTC’s call-center operations).
• Standard times are derived from observed times plus allowances (fatigue, personal needs) and are critical for scheduling and incentives.
• Digital tools (e.g., Daraz’s order-picking algorithms) now automate method analysis, but manual techniques remain essential for custom processes.
• Exam focus: Solve problems using time study formulas, interpret process charts, and justify method improvements with cost/benefit analysis.

1. Definitions & Core Concepts

Work Measurement: The Science of Quantifying Work

Work measurement is the application of techniques to determine the time required to perform a task under specified conditions. It ensures:

• Fair wages (e.g., piece-rate pay in garment factories).
• Efficient scheduling (e.g., Ncell’s call-center agent allocation).
• Cost control (e.g., Nabil Bank’s loan processing time reduction).

Key Techniques:

Method Analysis: Eliminating Waste

Method analysis examines how work is done to identify inefficiencies. The goal: reduce waste (e.g., unnecessary movements, delays, or overproduction).

Steps in Method Analysis:

flowchart TD
    A["1. Select Process"] --> B["2. Record Current Method"]
    B --> C["3. Examine for Waste\n(Use: Process Charts, Flow Diagrams)"]
    C --> D["4. Develop Improved Method"]
    D --> E["5. Install & Maintain New Method"]
    E --> F["6. Measure Results\n(Compare: Time, Cost, Quality)"]

Tools for Method Analysis:

1. Process Charts: Symbols to map steps (e.g., ✓ for operation, → for transport).
2. Flow Diagrams: Spatial layout of workstations (e.g., Nabil Bank’s teller counter design).
3. Operation Process Charts: Focus on operations, inspections, delays, and storage (OIDS).
4. Flow Process Charts: Include transport and waiting times (e.g., Pathao’s rider delivery route).

2. Time Study: How It Works

Step-by-Step Time Study Procedure

1. Select the Task: Choose a repetitive, stable process (e.g., stitching a shirt in a garment factory).
2. Break Down the Task: Identify elements (e.g., "pick fabric," "cut," "stitch").
3. Observe & Record:
   • Use a stopwatch to record time for each element.
   • Take multiple cycles (e.g., 10–20) to account for variability.
4. Calculate Average Time: $$\text{Average Time}=\frac{\sum \text{Observed Times}}{\text{Number of Cycles}}$$
5. Add Allowances:
   • Fatigue Allowance: 5–15% (e.g., for NTC workers doing manual meter readings).
   • Personal Needs: 5% (e.g., bathroom breaks).
   • Contingency: 5–10% (e.g., unexpected delays in Daraz’s warehouse).
6. Set Standard Time: $$\text{Standard Time}=\text{Average Time}\times (1+\text{Allowances})$$

Worked Example: Nabil Bank’s Loan Processing

• Task: Processing a personal loan application.
• Observed Times (minutes): 12, 11, 13, 10, 14 (5 cycles).
• Average Time: $\frac{12+11+13+10+14}{5}=12$ minutes.
• Allowances: Fatigue (10%), Personal (5%), Contingency (5%).
• Standard Time: $$12\times (1+0.10+0.05+0.05)=12\times 1.20=14.4\text{ minutes}$$
• Implication: Bank can now schedule tellers to handle ~4 loans/hour (vs. ~5 before optimization).

Advantages & Disadvantages of Time Study

3. Work Sampling: When Time Study Fails

Work sampling is used when:

• The task is non-repetitive (e.g., a doctor’s rounds).
• The process is large-scale (e.g., NTC’s nationwide field operations).
• Direct observation is impractical (e.g., monitoring traffic police in Kathmandu).

How Work Sampling Works

1. Define Activities: List all possible activities (e.g., "typing," "waiting," "meeting").
2. Random Observations: Take 100–500 snapshots at random intervals.
3. Calculate % Time Spent: $$\%\text{Time}=\frac{\text{Number of Times Activity Observed}}{\text{Total Observations}}\times 100$$
4. Estimate Standard Time: $$\text{Standard Time}=\frac{\text{Total Available Time}}{\text{Observed Activity Ratio}}$$

Worked Example: NTC’s Field Technician Work

• Total Observations: 200.
• Activity Counts:
  • Traveling: 60
  • Repairing: 80
  • Waiting: 40
  • Admin: 20
• % Time Spent:
  • Repairing: $\frac{80}{200}\times 100=40\%$.
• If 8-hour shift: Standard time for repairing = $\frac{8\text{ hours}}{0.40}=20\text{ hours}$.
• Insight: Technicians spend only 40% of time repairing—rest is travel/waiting. Solution: Redesign routes or hire more vehicles.

4. Method Analysis in Action: Case Study

Company: Daraz (Nepal’s Amazon)

Problem: Order-picking in warehouses was slow, leading to late deliveries. Method Analysis Steps:

1. Record Current Method:
   • Picker walks to shelf, picks item, returns to packing station.
   • Average time per order: 8 minutes.
2. Identify Waste:
   • Unnecessary walking: Pickers crisscross the warehouse.
   • Delays: Waiting for forklifts to move racks.
3. Improved Method:
   • Zone Picking: Assign pickers to specific zones (e.g., Zone A: Electronics).
   • Batch Picking: Combine orders for the same zone.
   • Automated Guided Vehicles (AGVs): Reduce forklift delays.
4. Results:
   • Time per order reduced to 4 minutes (50% faster).
   • Cost savings: $50,000/month in labor and logistics.

5. Predetermined Motion Time Systems (PMTS)

PMTS uses standardized motion times (e.g., MTM-1, MOST) to estimate task duration without direct observation.

How MTM-1 Works

1. Break task into basic motions (e.g., "reach," "grasp," "move").
2. Assign time values (e.g., "reach 12 inches = 0.04 seconds").
3. Sum times to get total task duration.

Example: Assembling a Phone (MTM-1)

Advantages:

• No need for stopwatch (useful for new products).
• Consistent across industries (e.g., Toyota uses MTM for car assembly).

6. Standard Data & Its Applications

Standard data provides predefined times for common tasks (e.g., "loading a truck takes 5 minutes").

Example: NTC’s Cable Repair

Why Use Standard Data?

• Faster planning (e.g., NTC can estimate repair time before dispatching workers).
• Benchmarking (compare against industry averages).

## In the Real World

1. Nabil Bank’s Loan Processing

   • Idea Used: Time study + method analysis.
   • How: Bank analyzed teller workflows and reduced loan processing from 15 to 12 minutes by eliminating redundant document checks. Saved $20,000/year in labor costs.

2. Daraz’s Warehouse Optimization

   • Idea Used: Process charts + zone picking.
   • How: By mapping picker movements (using flow diagrams), Daraz cut order-picking time by 50%, improving delivery speed for Kathmandu customers.

3. NTC’s Field Technician Productivity

   • Idea Used: Work sampling.
   • How: NTC found technicians spent only 40% of time repairing—rest was travel. Solution: Redesigned routes and added more vehicles, reducing complaints by 30%.

4. Himalayan Java’s Coffee Roasting

   • Idea Used: Predetermined Motion Time (PMTS).
   • How: Used MTM-1 to standardize roasting motions, reducing batch times by 12% and increasing output by 15%.

5. Pathao’s Rider Efficiency

   • Idea Used: Method analysis + standard data.
   • How: Analyzed rider routes in Lalitpur and found 30% of time was spent waiting at traffic lights. Solution: Dynamic rerouting via app, reducing delivery times by 20%.

## Exam Tip: How to Score Full Marks

1. For Time Study Problems:

   • Always show all steps: observed times → average → allowances → standard time.
   • Example:

     Given: 5 observed times = 10, 12, 8, 11, 9 minutes. Allowances: 20%. Solution: Average = $\frac{10+12+8+11+9}{5}=10$ minutes. Standard Time = $10\times 1.20=12$ minutes.

2. For Method Analysis:

   • Draw a process chart (use symbols: O, T, I, D, S).
   • Compare before/after methods with quantitative improvements (e.g., "reduced by 25%").

3. For Work Sampling:

   • State the formula and justify sample size (e.g., "200 observations for 95% confidence").
   • Example:

     If 60% of observations show "waiting," and total time is 8 hours, standard time for active work = $\frac{8}{0.60}=13.33$ hours.

4. Common Pitfalls:

   • ❌ Forgetting to add allowances in time study.
   • ❌ Not labeling process chart symbols clearly.
   • ❌ Ignoring real-world constraints (e.g., worker fatigue in NTC’s case).

5. Case Study Approach:

   • If asked to analyze a scenario (e.g., "Improve NTC’s complaint handling"):
     1. Identify current method (e.g., "callers wait 10 mins on hold").
     2. Use a tool (e.g., "work sampling shows 60% time is waiting").
     3. Propose solution (e.g., "hire more agents or use IVR").
     4. Quantify benefit (e.g., "reduce wait time by 50%").

## Quick Revision Table

## Practice Problem (Solve Like an Exam)

Scenario: A garment factory observes the following times (in minutes) for stitching a shirt collar: Observed times: 4, 5, 3, 6, 4. Allowances: Fatigue (10%), Personal (5%), Contingency (5%).

1. Calculate the standard time for stitching one collar.
2. If a worker is paid Rs. 200/hour, what is the piece rate per collar?
3. If the factory processes 500 collars/day, what is the daily labor cost?

Solution Outline:

1. Average time = $\frac{4+5+3+6+4}{5}=4.4$ minutes.
2. Standard time = $4.4\times 1.20=5.28$ minutes = 0.088 hours.
3. Piece rate = $\frac{200}{60}\times 5.28=\text{Rs. }17.60$ per collar.
4. Daily cost = $500\times 17.60=\text{Rs. }8,800$.

## Final Visual Summary

mindmap
  root((Work Measurement & Method Analysis))
    Time Study
      Stopwatch Observations
      Allowances (Fatigue, Personal, Contingency)
      Example: Nabil Bank Loans
    Work Sampling
      Random Observations
      % Time Calculation
      Example: NTC Field Technicians
    Method Analysis
      Process Charts (O, T, I, D, S)
      Flow Diagrams
      Example: Daraz Warehouse
    PMTS (MTM-1)
      Basic Motions (Reach, Grasp, Move)
      Example: Phone Assembly
    Applications
      Cost Reduction
      Productivity Improvement
      Fair Wage Setting