CHAPTER 1: Productivity Measurement and Improvement

Learning Objectives

 To understand productivity concepts and measurement.

 To learn the different productivity measures and its application.
 To understand how productivity measures in service sector.
 To be able to know the steps toward improving productivity of operations.

PRODUCTIVITY CONCEPTS

A productivity ratio can be computed for a single operation, a department, an

organization, or an entire country.

In business organizations, productivity ratios are used for planning workforce

requirements, scheduling equipment, financial analysis, and other important tasks.

Productivity growth is the increase in productivity from one period to the next
relative to the productivity in the preceding period. Thus,

Productivity Measurement

Productivity measures can be based on a single input (partial productivity), on more

than one input (multifactor productivity), or on all inputs (total productivity).

Multifactor Productivity
Calculations of multifactor productivity measure inputs and outputs using a common
unit of measurement, such as cost. For instance, the measure might use cost of inputs
and units of the output.

Productivity in the Service Sector

Service productivity is more problematic than manufacturing productivity.

In many situations, it is more difficult to measure, and thus to manage, because it
involves intellectual activities and a high degree of variability.
A useful measure closely related to productivity is process yield. Where
products are involved, process yield is defined as the ratio of output of good product
(i.e., defective product is not included) to the quantity of raw material input. Where
services are involved, process yield measurement is often dependent on the
particular process.

Factors that Affect Productivity

All these factors are potential sources of productivity, and it is generally up to the
manager to see that they are fully exploited.

Fax machines Automation

Copiers Calculators

The Internet, search engines Computers

Voice mail Cellular phones

E-mail Software

Other Factors that Affect Productivity

 Standardizing processes and procedures wherever possible to reduce

variability can have a significant benefit for both productivity and quality.

 Quality differences may distort productivity measurements. One way this

can happen is when comparisons are made over time, such as comparing the
productivity of a factory now with one 30 years ago. Quality is now much
 higher than it was then, but there is no simple way to incorporate quality
improvements into productivity measurements.

 Use of the Internet can lower costs of a wide range of transactions, thereby
increasing productivity. It is likely that this effect will continue to increase
productivity in the foreseeable future.

 Computer viruses can have an immense negative impact on productivity.

 Searching for lost or misplaced items wastes time, hence negatively
affecting productivity.

 Scrap rates have an adverse effect on productivity, signaling inefficient use

of resources.
 New workers tend to have lower productivity than seasoned workers. Thus,
growing companies may experience a productivity lag.

 Safety should be addressed. Accidents can take a toll on productivity.

 A shortage of information technology workers and other technical workers
hampers the ability of companies to update computing resources, generate
and sustain growth, and take advantage of new opportunities.

 Layoffs often affect productivity. The effect can be positive and negative.
Initially, productivity may increase after a layoff, because the workload
remains the same but fewer workers do the work—although they have to
work harder and longer to do it. However, as time goes by, the remaining
workers may experience an increased risk of burnout, and they may fear
additional job cuts. The most capable workers may decide to leave.

 Labor turnover has a negative effect on productivity; replacements need

time to get up to speed.

 Design of the workspace can impact productivity. For example, having tools
and other work items within easy reach can positively impact productivity.

 Incentive plans that reward productivity increases can boost productivity.

Productivity Improvement

A company or a department can take a number of key steps toward improving

productivity:
1. Develop productivity measures for all operations. Measurement is the first step in
managing and controlling an operation.

2. Look at the system as a whole in deciding which operations are most critical. It is
overall productivity that is important. Managers need to reflect on the value of
potential productivity improvements before approving improvement efforts. The issue
is effectiveness. There are several aspects of this. One is to make sure the result will
be something customers want.
3. Develop methods for achieving productivity improvements, such as soliciting ideas
from workers (perhaps organizing teams of workers, engineers, and managers),
studying how other firms have increased productivity, and reexamining the way work
is done.

4. Establish reasonable goals for improvement.

5. Make it clear that management supports and encourages productivity improvement.

Consider incentives to reward workers for contributions.

6. Measure improvements and publicize them.

CHAPTER 2: Methods Study

Learning Objectives

 To permit work processes to be communicated and comprehended more readily.

 To divide a given work process into its constituents elements for analysis purposes.
 To provide a structure in the search for the improvements.
 To represent a proposed new work process or method

CATEGORIES OF CHARTS AND DIAGRAMS

• Operation charts

• Process charts
 • Activity charts

• Flow diagrams

OPERATION CHARTS

Graphical and symbolic representation of the operations used to produce a product

The time to accomplish the operation is sometimes also included.

Two types of operations:

1. Processing and assembly operations

 Changing the shape, properties or surface of a material or work part

 Joining two or more parts to form an assembly

2. Inspection operations

 Checking the material, work part, or assembly for quality or quantity

 PROCESS CHARTS, FLOW DIAGRAM, ACTIVITY CHARTS

Process Charts

Graphical and symbolic representation of the processing activities performed either on

something or by somebody.

The chart consists of a vertical list of activities using symbols to represent operations,
inspections, moves, delays and storage and other activities.
 Principal types of process charts

 Flow process chart – analysis of a material or workpiece being processed

 Worker process chart – analysis of a worker performing a task

 Form process chart – analysis of the processing of paperwork forms

Flow Process Chart

The flow process chart in industrial engineering is a graphical and symbolic representation
of the processing activities performed on the work piece.

 Operation – processing of a material (to change the physical or chemical

characteristics of the material)

 Inspection – check for quality or quantity of the material

 Move – transport of material to new location

 Delay – material waiting to be processed or moved (when material cannot go to

the next activity.)

 Storage – material kept in protected location

 Form for Flow Process Chart
Activity Charts

A listing of the activities of one or more subjects (e.g., workers, machines) plotted
against a time scale to indicate graphically how much time is spent on each activity.

These activities are generally repetitive.

Types of activity charts:

1. Right-hand/left-hand activity chart (workplace activity chart)

2. Worker-machine activity chart

3. Worker-multimachine activity chart

4. Gang Activity Chart (multiworker activity chart)

Right-hand/left-hand activity chart

It is an illustration that shows the contributions of the right and left hands of a worker and
the balance of the workload between the right and left hands
Useful in analyzing the work performed by one person at one specific workstation. As the
name implies, the chart follows the motion of the left and right hands of one operator

Each hand of the worker is treated as an activity.

Each hand’s activities are broken into work elements and plotted side by side on a time
scale.

R-L Hand Chart of Signing a Letter

Man-machine chart

The worker and machine process chart (Man-machine chart) is used to study, analyze, and
improve one workstation at a time.
The chart shows the exact time relationship between the working cycle of the person and
operating cycle of the machine.

Man-Machine Chart for a Gourmet Coffee Store

Shading Formats for Activity Charts

Worker-Multimachine Activity Chart

Gang Activity Chart

This chart indicates activities in which two or more workers performing together as a
team.

Also known as multi-worker activity chart.

Can be used to analyze the operations of different stations in the the same chart.

Objective: To better coordinate the activities and balance the workload among the
workers.
Flow Diagrams
A flow diagram is essentially a flow process chart drawn to:

1. Show the layout of a facility.

2. Show the flow of work through that area

3. Show overcrowding areas, crossing worker paths, total travel.

4. Identify how layout can be redesigned to reduce travel, motion, collisions,

etc.

5. Store materials near where they are used.

6. Increase efficiency and safety.

Usually, the objective is to look for spatial relationships.

It depicts the probable movement of materials in the floor plant. The movement is
represented by a line in the plant drawing.

MICRO- MOTION ANALYSIS

Motion Study and Micro-motion Study

 Micromotion Studies - development of detailed motion picture studies

 Which have proved invaluable in studying highly repetitive manual operations.
 Traditionally, micromotion studies were recorded on a simultaneous motion
(simo) chart, while motion studies are recorded on a two-hand process chart.

Basic Motions

 Therbligs – combination of 17 basic motions

 The therbligs can be either effective or ineffective

 Effective therbligs directly advance the progress of the work. They can frequently
be shortened, but typically cannot be completely eliminated

 Ineffective therbligs do not advance the progress of the work and should be
eliminated by applying the principles of motion economy.

Therbligs

 Basic or elemental motions of the human body

 Term was coined by Frank Gilbreth

 17 basic motion elements

 Basic building blocks of virtually all manual work performed at a single location.

Symbols
Motion of empty hand to or from object; time
depends on distance moved; usually preceded by Re-

Move lease and followed by Grasp.

Movement at laaded hand; time depends on distance,

weight. and type at move; usually preceded by
Grasp and hallowed by Release or Position.
Grasp
Closing fingers azound an object; begins as Lhe fingers
contact the abject and ends when control has been
gained; depends on type of grasp; usually preceded by
Reach and hallowed by have.
Release
Relinquishing control DI object. typically Lhe shortest
DI the therbTigs.
Preposition
PP Positioning object in predetermined location for later
use; usually occurs in conjuriction with Move. as in
orienting a pen for writing.

Manipulating tel fur intended use; easily detected, as

Assemble it advances the progress of work.

Disassemble A Bringing two mating parts together; usiially preceded

by Position or Move: followed by Release.

DA Opposite of Assemble, separating mating parts; usually

preceded by Cirasp and followed by Move or Release.

Search

Select

S Eyes or hands groping for object; begins as the eyes

move in to locate an object.

SE C'hmsinp cine item from several; usually follows

Search.
Unavoidable
Delay Orienting objecl during work, usually preceded by
Move and followed by Release (as opposed to during
fcir Prepositic›n).

Comparing object with standard, typically with sight,

but could also be with the other senses.

PL Pausing to deterztzine next action; usually detected as a

hesitation preceding Mation.

UD Beyond opemtor’s control due to the nature of the operation,
the e.g., leR hand waiting while right hand completes a
longer Reach.

Avoidable Delay AD Operator solely responsible for idle dme, e.g.. coughing.

Rest to Overcome R Appears peric›dically, riot every cycle, depends c›n

fatigue the physical workload.

Hold H One hand supports abject while other does useful wark..
 The Two-Hand Process Chart

 Sometimes referred to as an operator process chart,

 It is a motion study tool

 It shows all movements and delays made by the right and left hands, and the
relationships between them.

 The purpose of the two hand process chart is to identify inefficient motion
patterns and observe violations of the principles of motion economy.

 This chart facilitates changing a method so that a balanced two-handed operation

can be achieved and a smoother, more rhythmic cycle that keeps both delays and
operator fatigue to a minimum.
 PRINCIPLES OF MOTION ECONOMY

Principles concerning the economy of movements which have been developed from
direct experimentation and form a good basis for the development of improved
methods at the workplace.

Classified as three main types:

 Use of human body,

 Arrangement of the workplace,
 Design of tools and equipment

Objective: To maximize efficiency and minimize worker fatigue.

A. As related to the uses of the Human Body

1. Two hands should begin and complete their motions at the same time.
2. Two hands should not be idle at the same time except during rest periods.
3. Motions of the arms should be made in opposite and symmetrical direction and
should be made simultaneously.

4. Hand and body motions should be confined to the lowest classification with
which it is possible to perform the work satisfactorily.
Understanding the classifications of motions plays a major role in using this
fundamental law of motion economy appropriately in methods studies. The
classifications are as follows:

a) Finger motions are made by moving the finger or fingers while the
remainder of the arm is kept stationary

b) Finger and wrist motions are made while the forearm and upper arm are
stationary and are referred to as second-class motions.

c) Finger, wrist, and lower arm motions are commonly referred to as

forearm or third-class motions and include those movements made by
the arm below the elbow while the upper arm is stationary.
 Repetitive work involving force with the arms extended can induce
injury and the workstation should be designed so that the elbows can
be kept at 90° while work is being done.

d) Finger, wrist, and lower arm motions are commonly referred to as

forearm or third-class motions and include those movements made by
the arm below the elbow while the upper arm is stationary.

Repetitive work involving force with the arms extended can induce
injury and the workstation should be designed so that the elbows can
be kept at 90° while work is being done.

e) Fifth-class motions include body motions such as of the trunk, which are
the most time-consuming and should generally be avoided.

5. Momentum should be employed to assist the worker wherever possible, and it

should be reduced to a minimum if it must be overcome by muscular effort.

6. Smooth continuous curved movements are to be preferred to straight-line

motion involving sudden and sharp changes in direction

7. Ballistic movement are faster, easier and more accurate than restricted or
controlled movements.

8. Work should be arranged to permit an easy and natural rhythm wherever

possible.
9. Eye fixations should be as few and as close as possible.

B. As related to the Workplace Arrangement

1. There should be a definite and fixed place for all tools and materials.

2. Tools, materials and controls should be located close to the point of use.

In every motion, a distance is involved. The greater the distance, the larger the
muscular effort, control, and time. It is therefore important to minimize distances.
 3. Gravity feed bins and containers should be used to deliver material close to the point of use.

4. Drop deliveries should be used wherever possible.

5. Materials and tools should be located to permit the best sequence of motions.

6. Provisions should be made for adequate conditions for seeing.

8. The height of the work place and the chair should be preferably arranged so that alternate sitting and standing
at work are easily possible.

9. A chair of the type and height to permit good posture should be provided for every worker.

C. As related to the Equipment Design

1. The hands should be relieved of all work that can be done more advantageously by a jig, a fixture, or a foot-operated
device.

2. Two or more tools should be combined whenever possible.

3. Tools and materials should be pre-positioned whenever possible.

 4. Where each finger performs some specific movement, such as in typewriting, the load should be distributed in accordance
with the inherent capacities of the fingers.

5. Levers, hand wheels, and other controls should be located in such positions that the operator can manipulate them with the
least change in body position and with the greatest speed and ease

OPERATIONS ANALYSIS
Engr. Jayson M. Lacerna
LEARNING OBJECTIVES:
 To know how to use operation analysis to improve the method by asking what.

 To focus on the purpose of operation by asking why.

 To understand design, materials, tolerances, processes, and tools by asking how.

 To focus on the operator and work design by asking who.

 To know how to focus on the layout of the work by asking where.

 To focus on the sequence of manufacture by asking when.

 To use operations analysis to simplify by eliminating, combining, and rearranging operations

 Methods analysts use operation analysis to study all productive and non-productive elements of an operation, to increase
productivity per unit of time, and to reduce unit costs while maintaining or improving quality.
 QUESTIONS IN OPERATIONS ANALYSIS

1. Why is this operation necessary?

2. Why is this operation performed in this manner?

3. Why are these tolerances this close?

4. Why has this material been specified?

5. Why has this class of operator been assigned to do the work?

The question why immediately suggests other questions, including how, who, where, and when. Thus, analysts might ask,

1. How can the operation be performed better?

2. Who can best perform the operation?

3. Where could the operation be performed at a lower cost or improved quality?

4. When should the operation be performed to yield the least amount of material handling?
THE QUESTIONS TO BE ASKED FOR
METHODS IMPROVEMENT ARE
ORGANIZED AROUND NINE BASIC
TOPICS:
 the purpose of the operation
 the design of the parts
 tolerances and specifications
 the materials to be used
 the sequences of the manufacturing processes
 setup and tooling
 Materials handling
 the layout of the operations
 work design
 OPERATION PURPOSE

 The most important of the nine points of operation analysis

 Based on experience, as much as 25 percent of the operations being performed can be eliminated if sufficient
study is given to the design and process.

 To try to eliminate or combine an operation before trying to improve it

 This also corresponds closely to eliminating the muda of inappropriate processing.

 PART DESIGN

 Designs can be changed, and if improvement is the result and the activity of the
job is significant, then the change should be made.
 To improve the design, analysts should keep in mind the following pointers for
lower-cost designs on each component and each subassembly:
 Reduce the number of parts by simplifying the design.
 Reduce the number of operations and the length of travel in manufacturing by
joining the parts better and by making the machining and assembly easier.

 Utilize a better material.

  Liberalize tolerances and rely on key operations for accuracy, rather than
on series of closely held limits.
 Design for manufacturability and assembly.
TOLERANCES AND SPECIFICATIONS

 Tolerances serve the maximum deviation from the nominal value that will still allow
proper function.
 Concerns tolerances and specifications that relate to the quality of the product, that is,
its ability to satisfy given needs.
 Methods analysts should be well versed in the details of cost and should be fully aware
of what unnecessarily close tolerances and/or rejects can do to the selling price.
 Developing quality products in a manner that actually reduces costs is a major rule of
the approach to quality instituted by Taguchi (1986). This approach involves combining
engineering and statistical methods to achieve improvements in cost and quality by
optimizing product design and manufacturing methods. This step corresponds to
reducing the muda of inappropriate processing.
 Analysts should also take into consideration the ideal inspection procedure.
 Inspection is a verification of quantity, quality, dimensions, and performance. Such
inspections can usually be performed by a variety of techniques: spot inspection, lot-by-
lot inspection, or 100 percent inspection.
 https://www.youtube.com/watch?v=ZdHn4YP2XgI
MATERIAL

 Choosing the correct material may be difficult because of the great variety available, so it is often more practical to
incorporate a better and more economical material into an existing design.
 Methods analysts should consider the following possibilities for the direct and indirect materials utilized in a
process:

Finding a less expensive and lighter material.

 Finding materials that are easier to process.

Using materials more economically o Using salvage materials.

Using supplies and tools more economically.

Standardizing materials.

Finding the best vendor from the standpoint of price and vendor stocking.
 MANUFACTURE SEQUENCE AND PROCESS

To improve the manufacturing process, the analyst should consider

 rearranging the operations;

 mechanizing manual operations;

 utilizing more efficient facilities on mechanical operations;

 operating mechanical facilities more efficiently;

 manufacturing near the net shape; and

  using robots—all of which address the muda of inappropriate processing.

SETUP AND TOOLS

The amount of tooling up that proves most advantageous depends on

(1) the production quantity,

(2) repeat business,

(3) labor,

(4) delivery requirements, and

(5) required capital.

MATERIAL HANDLING
 Material handling includes motion, time, place, quantity, and space
constraints
 First, material handling must ensure that parts, raw materials, inprocess
materials, finished products, and supplies are moved periodically from
location to location.
 Second, as each operation requires materials and supplies at a particular
time, material handling ensures that no production process or customer is
hampered by either the early or late arrival of materials.
  Third, material handling must ensure that materials are delivered to the
correct place
 Fourth, material handling must ensure that materials are delivered at each
location without damage and in the proper quantity.
 Finally, material handling must consider storage space, both temporary
and dormant.
 https://www.youtube.com/watch?v=PusvVnC_4Uc&t=1s
The following five points should be considered for reducing the time spent in handling material:

* reduce the time spent in picking up material;

* use mechanized or automated equipment
* make better use of existing handling facilities
* handle material with greater care
* Consider the application of bar coding for inventory and related applications.

PLANT LAYOUT
 The principal objective of effective plant layout is to develop a production system that
permits the manufacture of the desired number of products with the desired quality at the
least cost.
 Physical layout is an important element of an entire production system that embraces
operation cards, inventory control, material handling, scheduling, routing, and dispatching.
 All these elements must be care handling, scheduling, routing, and dispatching. All these
elements must be carefully integrated to fulfil the stated objective.
 In general, all plant layouts represent one or a combination of two basic layouts: product or
straight-line layouts and process or functional layouts.
 Product or straight-line layout - the machinery is located such that the flow from one
operation to the next is minimized for any product class.
 Process layout is the grouping of similar facilities. Thus, all turret lathes would be grouped in
one section, department, or building.
 WORK DESIGN

 The principles and guidelines are basically the use of human body in where you identify the muscle speed according to time duration, the
arrangement and conditions of the working place and the design of the tools and equipment.

 Analyst should carefully analyze the movement of LH- RH process, working place, movements, posture, eye fixations, finger motions and
the position to avoid ineffective therbligs.
 LEAN MANUFACTURING
 Originated with the Toyota Motor Corporation as a means of eliminating waste in the aftermath of the 1973 oil embargo. It
followed the footsteps of the Taylor system of scientific management but in much broader approach, targeting not only
manufacturing costs, but also sales, administrative, and capital costs.
 It is also called Lean Production

 It is a set of tools and methodologies that aims for the continuous elimination of all waste in the production process.

LEAN MANUFACTURING
 Originated with the Toyota Motor Corporation as a means of eliminating waste in the aftermath of the 1973 oil embargo. It
followed the footsteps of the Taylor system of scientific management but in much broader approach, targeting not only
manufacturing costs, but also sales, administrative, and capital costs.
 It is also called Lean Production

 It is a set of tools and methodologies that aims for the continuous elimination of all waste in the production process.
 TOYOTA PRODUCTION SYSTEM (TPS)
EIGHT TYPES OF MUDA OR WASTE.

 Muda (waste)

 Muda is the Japanese word for waste and includes non value adding activities that prevent flow and lead to longer lead
times.
 We consider all activities as non-value adding, that a customer would not be willing to pay for if he would have the chance
to decide.
 As Mnemonic device, the first letters of the eight wastes form the acronym DOWNTIME.

TOYOTA PRODUCTION SYSTEM (TPS)

EIGHT TYPES OF MUDA OR WASTE.
 5S SYSTEM

 sort (seiri)- removing all unnecessary items from the workplace and leaving only the bare essentials

 set in order (seiton) - arranges needed items so that they are easy to find and use.

 shine (seiso) - ensures further cleanliness and tidiness

 standardize (seiketsu) -serves to maintain the order and consistent approach to housekeeping and the methods

 sustain (shitsuke) - maintains the full 5S process on a regular basis.4

 PREDETERMINED TIME

SYSTEMS (PTS) MTM1 AND MTM2

There are over 50 established predetermined time systems

In fact, most companies require certification before analyst are permitted to establish standard time using
Work factor, Methods Time Measurement(MTM-1 and MTM-2) or

Maynard Operation Sequence Technique (MOST)

I. METHODS–TIME MEASUREMENT
MTM-1
Methods-Time Measurement (Maynard, Stegemerten, and Schwab, 1948) gives time values for the fundamental motions of reach, move, turn, grasp, position,
disengage, and release.
“A procedure which analyzes any manual operation or method into the basic motions required to perform it, and assigns to each motion a pre-determined time
standard which is determined by the nature of the motion and the conditions under which it is made.”

Unit of Measure

1 TMU = 0.036 seconds

1 TMU = 0.0006 minutes

1 TMU = 0.00001 hour

Reach
MTM 1 Move

MTM 1 - Reach
Grasp
Turn and Apply Pressure
Position and Release
Disengage and Eye Travel/Focus
Body, Leg and foot motion
Simultaneous Motion
MTM Procedure

First, the analyst summarizes all left-hand and right-hand motions required to perform the job
properly.

Then the rated times in TMU for each motion are determined from the methods– time data tables

To determine the time required for a normal performance of the task, the non limiting motion
values are either circled or deleted, as only the limiting motions will be summarized, provided
that it is “easy” to perform the two motions simultaneously.

The tabulated values do not include any allowance for personal delays, fatigue, or unavoidable
delays. When analysts use these values to establish time standards, they must add appropriate
allowances to the summary of the synthetic basic motion times. Proponents of MTM-1 state that
no fatigue allowance is needed in the vast majority of applications, because the MTM-1 values
are based on a work rate that can be sustained at steady state for the working life of a healthy
employee.

Example: Flashlight Assembly Time Using MTM -1