Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J What is Work Measurement?  Determining the amount of worker time required to generate one unit of output  Provides labor standards  Target amount of time required to perform a job under normal working conditions

Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Uses of Labor Standards  Costing labor content of products  Planning staffing needs  Cost & time estimates for bids  Planning production  Wage-incentive plans  Employee efficiency

Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Sources of Labor Standards  Historical experience  Time studies  Predetermined time standards (MTM)  Work sampling

Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Labor Standards - Historical Experience  Labor standards are based on how many labor- hours were needed in past  Least preferred method  Advantages  Easy and inexpensive to obtain standard  Disadvantages  Unknown accuracy due to unusual occurrences, unknown pace etc.

Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J A Final Thought © 1995 Corel Corp. Church of the Holy Family (Barcelona) Two stonecutters were asked what they were doing. The first said, ‘I’m cutting this stone into blocks.’ The second one replied, ‘I’m on a team that’s building a cathedral.’ — Old Story