What is productivity in Project Management?

 Repetitive tasks are grouped and manufactured on a production line

(Burke 2019:26)

e.g. Living Values T-shirts for the DUT (mass production for the launch-
process is repetitive)

Prescribed Textbook

Frievelds A, Benjamin WN. (2014) Niebel’s Methods,

Standards and Work Design, 13th edition. Mcgraw-Hill.
New York.
 PRODUCTIVITY IMPORTANCE
Changes continually taking place - industrial and
business environment must be considered both
economically and practically.
These include the globalization of both the market and
the producer.
The only way a business - grow and increase its
profitability is by increasing productivity.
Productivity improvement refers to the increase in
output per work-hour or time expended.
 PRODUCTIVITY IMPORTANCE contd..
 Fundamental tools that result in increased productivity are:
*methods,
*time study standards (frequently referred to as work measurement), and
*work design.
 Total cost of manufacturing is made up as follows:
 12 percent is direct labor,
 45 percent is direct material, and
 43 percent is overhead.
 All aspects of a business or industry-sales, finance, production, engineering, cost,
maintenance, and management-provide fertile areas for the application of
methods, standards, and work design. Too often, people consider only the
production function when applying these tools. Important as the production
function is, other aspects of the enterprise also contribute substantially to the cost
of operation and are equally valid areas for the application of cost improvement
techniques.
 PRODUCTIVITY IMPORTANCE contd…

The production areas that mostly use productivity are

students enrolled in engineering, industrial management,
business administration, industrial psychology, and labor-
management relations are:
 Work measurement
 Work methods and design
 Production engineering
 Manufacturing analysis and control
 Facilities planning
 Wage administration
 Ergonomics and safety
 Production and inventory control
 Quality control
 PRODUCTIVITY IMPORTANCE contd…

 Other position areas – e.g. personnel or industrial

relations, cost, and budgeting - closely related to, and
dependent on, the production group.
 Wherever people, material and facilities interact to
obtain some objective, productivity can be improved
through the intelligent application of methods,
standards and work design.
 The production area of an industry may well be called
its heart; if the activity of this area is interrupted, the
whole industry ceases to be productive.
 PRODUCTIVITY IMPORTANCE contd…

In the production department, materials are:

requisitioned and controlled;
the sequence of operations, inspections is done;
and methods are determined;
tools are ordered;
time values are assigned;
work is scheduled, dispatched, and followed up; and
customers are kept satisfied with quality products
delivered on time.
 PRODUCTIVITY IMPORTANCE contd…

Training in this field demonstrates

 how production is accomplished,
where it is done,
when it is performed, and
 how long it takes to do.
Therefore - background that includes such
training will prove invaluable, whether one’s
ultimate objective is sales, production, or cost.
 PRODUCTIVITY IMPORTANCE contd…

If the production department - considered the heart of an industrial enterprise,

the methods, standards, and work design activities are the heart of the
production group.

 Production phase, - decided whether product – manufactured on a

competitive basis.
 Initiative, worker and machine relationships and workstations are used –
ensure products stand the test of stiff competition.
 Creativity takes place - in improving existing methods and products to help
the company attain leadership in its product line.
 In this activity, good labor relations may be maintained through establishing
fair labor standards, or may be impeded by setting one inequitable rate.
 Methods, standards, and work design offer real challenges. Industries with
competent engineers, business administrators, industrial relations personnel,
specially trained supervisors, and psychologists all using methods, standards,
and work design techniques are better able to meet competition and better
equipped to operate profitably.

METHODS AND STANDARDS SCOPE

 Determining the standard time required to produce the product
includes:
(a) predetermined standards are met;
(b) workers are adequately compensated for their output, skills,
responsibilities, and experience and
(c) workers have a feeling of satisfaction from the work that they do.
The overall procedure includes:

defining the problem;

breaking the job down into operations;
analyzing each operation to determine the
most economical manufacturing
procedures;
applying proper time values; and then
following through to assure that the
prescribed method is put into operation
METHODS ENGINEERING
 The term operation analysis, work design and simplification, and methods
engineering and corporate re-engineering are frequently used interchangeably
– productivity improvement.
 In this regard, we recognize that a business must introduce changes if it is to
continue profitable operation and maintain – competitive edge within the
industry.
 While - may be desirable to introduce changes outside of the manufacturing
area - often, profit margins may be enhanced through positive changes e.g.
accounting, inventory management, materials requirements planning, logistics
and human resource management.
 Information automation can provide dramatic rewards in all of these areas -
the more thorough the methods study during the planning stages, the less the
necessity for additional methods studies during the life of the product.
 METHODS ENGINEERING contd….

 Methods engineering implies the utilization of technological

capability – should be an enterprises’ strong area.
 Method engineers use a systematic procedure to develop a work
……, produce a product, or provide a service.

1. Select the project. Typically, the projects selected represent

either new products or existing products that have a high cost of
manufacture and a low profit – require re-engineering.
Also, products that are currently experiencing difficulties in
maintaining quality and are having problems meeting
competition are logical projects for methods engineering.
 METHODS ENGINEERING contd….
2. Get and present the data - Assemble all the important facts relating to the
product or service.
 These include drawings and specifications, quantity requirements, delivery
requirements, and projections of the anticipated life of the product or service
 Once all important information has been acquired - recorded in an orderly
form for study and analysis
 Development of process charts at this point - very helpful.
3. Analyze the data. Utilize the primary approaches to operations analysis to
decide which alternative will result in the best product or service. These primary
approaches include: purpose of operation, design of part, tolerances and
specifications, material handling, plant layout, and work design.
4. Develop the ideal method. Select the best procedure for each
operation, inspection, and transportation by considering the
various constraints associated with each alternative, including
productivity, ergonomics, and health and safety implications.
(see chapter 3-7 for more details).
5. Present and install the method. Explain the proposed method
in detail to those responsible for its operation and
maintenance. Consider all details of the work center, to insure
that the proposed method will provide the results anticipated
e.g. delivery of a photocopier machine in a busy office;
demonstration of a new product etc.

6. Develop a job analysis. Conduct a job analysis of the installed

method to insure that the operators are adequately selected,
trained, and rewarded.
7. Establish time standards. Establish a fair and equitable
standard for the installed method.
8. Follow up the method - Regular intervals, audit the installed method to
determine if the anticipated productivity and quality are being realized,
whether costs were correctly projected, and whether further improvements
can be made.
In summary, methods engineering is the systematic close scrutiny of all direct
and indirect operations to find improvements that make work easier to
perform, in relation to worker health and safety, and also allow work to be
done in less time with less investment per unit (i.e., greater profitability).

WORK DESIGN
 Work design - to fit the task and workstation ergonomically to the human
operator.
 Often work design is typically forgotten in the quest for increased
productivity – in retrospect, there is an increased rate of work-related
musculoskeletal disorders (e.g. computer workstation – chair, desk etc. )
Therefore -
necessary for the methods engineering to
incorporate the principles of work design into any
new method, so that it not only will be more
productive but also will be safe and injury-free for
the operator.
STANDARDS
Standard - end results of time study or work
measurement.
Establishes a time standard allowed to
perform a given task, based on measurements
of the work content
Time study analysts must know when to use a
given technique, and must then use that
technique judiciously and correctly.
OBJECTIVES OF METHODS, STANDARDS, AND WORK DESIGN
The principal objectives of methods, standards, and work design are:
(a) to increase productivity and product reliability safely; and (b) to
lower unit cost, thus allowing more quality goods and services to be
produced for more people.
CONSEQUENCES OF THE PRINCIPAL OBJECTIVES ARE:
1. Minimization of time required to perform tasks.
2. Continually improvement of quality and reliability of products
and service/s.
3. Conserve resources and minimize cost by specifying the most
appropriated direct and indirect materials for the production of
goods and services (buy/use what you need to deliver a
product/service)
4.Take the availability of power into careful
consideration.
5. Maximize the safety, health, and well-being of
all employees.
6. Produce with an increasing concern for
protecting the environment (“going green”)
7. Follow a humane program of management that
results in job interest and satisfaction for
each employee.
 References
Frievelds, A. and Benjamin W.,N. 2014.
Niebel’s Methods, Standards and Work
Design, 13th edition. Mcgraw-Hill. New
York.

Burke, R. 2019. Project Management

Techniques, Third College Edition.
Pinetown, South Africa.
 Chapter 1

Productivity and the Quality of

Life
 Basic Needs and Quality of Life
World population stands at 7.028 billion
people and these need:
1. Food - enough food every day to
replace the energy used in living and
working.
2. Clothing - enough clothes to permit
body cleanliness and afford protection
from the weather.
3. Shelter - shelter of a standard to give
protection under healthy conditions.
4. Security – against violence and
against unemployment, and that
provides for one’s personal needs in
sickness or old age.
5. Health and essential services -
sanitation and medical care to give
protection against disease and
treatment in illness
• Once the basic needs are met,
humans aspire to raise their
standard of living and improve
their quality of life.
• For a nation to raise standard of
living of its citizens, it must
maximise return from resources –
improve productivity
What is Productivity?

OUTPUT
PRODUCTIVITY =
INPUT
Productivity ≠ production

Productivity ≠ profitability

Productivity ≠ cost reduction

Productivity ≠ working harder

Productivity is not the same as
Production
• Production is the actual amount
produced per day
• Productivity is the ratio of the amount
produced to the inputs required to
produce that output
For example
Period A Period B

Input 20 manufacturing 30
hours manufacturing
hours
Output 100 units 150 units

Increase in production was achieved by

working overtime not by increasing
productivity.
Example: Productivity is not the same as
Profitability

Period A Period B
Input 20 20 man-hours
manufacturing
hours
Output 100 units 100 units
Profit R 8/unit R 9/unit
Increase in profit was due to increase in
price and not increase in productivity.
Productivity is not the same as Cost reduction
Period A Period B
Input 20 man- 20 man-
hours hours
Output 100 units 100 units
Labour Cost R 5 per unit R 4 per unit

There is a reduction in cost from period A to

period B, but the productivity has remained the
same.
The cost reduction is due to company
employing cheaper labourers (Period B).
Productivity is not the same as working harder
Example 1
If a man carries bricks at a rate of 10 bricks per
trip from point A to point B, he may be working
harder, i.e. putting in more physical effort, than
a man using a wheelbarrow to transport 60
bricks per trip the same distance, but the
productivity of the man using the wheelbarrow
will be higher. He moves more bricks in the
same amount of time of say 1 hour.
Example 2
A packing operator is packing cases at a rate
of 5 cases/hr.
But because of bad planning the operator is
only able to work for 6 hours out of the 8 hours
in the workday.
Output and productivity can be increased by
reducing the delays, yet without demanding a
faster rate of work.
Example 3
• Three men are working on a filling and packing line
with a specified speed of 60 bottles/minute. The three
men have load factors of 1.00, 0.50 and 0.40
respectively when the machine works 100% efficiently.
• Better layout and line balancing permits the work to be
done by two men who now have load factors of 1.00
and 0.90.
• Thus more work is done by the second man but he still
is not expected to exceed normal or standard
performance.
Input and Output Factors of an Enterprise
The following are the inputs to an enterprise:
1. Land – Land and buildings in a convenient
location
2. Materials – Materials that can be converted
into products to be sold, both as raw
materials or auxiliary materials.
3. Energy – Energy in its various forms such
as electricity, gas, oil, or solar power.
4. Machines – Machines and material
necessary for the operational activities of
the enterprise, including those intended for
transport and handling, etc
5. Human resources – Men and women
trained to perform the operational activity, to
plan, control, buy, sell, to keep track of
accounts and to perform other operations
such as maintenance or administrative jobs.
 The task of management
• Is responsible for ensuring that enterprise
resources are combined in the best possible
way to achieve highest productivity
• Without mgt, enterprise is a driverless
coach
• The five resources become uncoordinated
• Hence lack of materials, poor equipment
maintenance, reluctant employees etc.
The Task of Management
 References

Frievelds, A. and Benjamin W.,N. 2014.

Niebel’s Methods, Standards and Work
Design, 13th edition. Mcgraw-Hill. New York.

Burke, R. 2019. Project Management

Techniques, Third College Edition. Pinetown,
South Africa.