3. Productivity and Quality Management
Lecture 14

4. Last Lecture Summary: Oil & Gas productivity
Productivity improvement has emerged as one of the top issues.
Significant productivity programs launched in many businesses.
In oil and gas industry, challenges to productivity continue to gain significant attention and hopes

5. Last Lecture Contd.

6. Summary Productivity Improvement in Oil and Gas
Factors that improve productivity in Oil and Gas:
1). Integrating Automation
2). Introducing Smart business processes
3). Improving safety
4). Risk Mitigation
5). Innovations
6). The Human element

7. Motion and Time Study (MTS)

8. Work systems

9. History of Motion and Time Study
Frank B. Gilbreth, Lillian M Gilbreth
-1885, he begun to develop motion study.
Gilbreth invented motion study designed to determine the best way to complete a job
Frederick W. Taylor
-1881, he started to develop time study
Taylor designed Time Study; it measures how long it takes a worker to complete a task.
Frank and Lillian Gilbreth used cameras to look at how body motions were used in the process of completing a job. This helped them to improve the processes and rearrange setups.
Time studies were once used to establish performance-based wage rates.

10. Methodology Outline of MTS Develop System Standardize Time Standards
Design work methods (sequence of operations and procedures) that make up the preferred solution
Find better methods for work
Standardize
Form written standards for operations
Time Standards
Determine a standard time for each operation
Training
Train the operators
Methods
Design
Develop System
Standardize
Work
Meas.mnt
Time Standards
Training

11. Defining Work Systems Work Is our primary means of livelihood
Serves an important economic function in the global world of commerce
Creates opportunities for social interactions and friendships
Provides the products and services that sustain and improve our standard of living

12. Defining Work Systems Work consists of tasks
Tasks consist of work elements
Work elements consist of basic motion elements

13. Defining Work Systems Task
An amount of work that is assigned to a worker or for which a worker is responsible
Repetitive task – as in mass production
Non-repetitive task – performed periodically, infrequently, or only once
Work Element
A series of work activities that are logically grouped together because they have a unified function in the task
Example: assembling a component to a base part using several nuts and bolts

14. Defining Work Systems Basic Motion Elements
Actuations of the limbs and other body parts
Examples:
Reaching for an object
Grasping the object
Moving the object
Walking
Eye movement
A work element consists of multiple basic motion elements

15. 1.3 Defining Work Systems “Time=Money”? How?
New product introduction
Product cost
Delivery time
Overnight delivery
Competitive bidding
Production scheduling
Increase profit using less time!

16. Defining Work Systems Importance of Time in Work
Time is the most frequently used measure of work
How many minutes or hours are required to perform a given task?
Most workers are paid by the time they work
Hourly wage rate
Salary
Workers must arrive at work on time
Labor and staffing requirements computed in units of time

17. Defining Work Systems
A work system is a system consisting of humans, information, and equipment designed to perform useful work
Contributes to the production of a product or delivery of a service
Examples:
Worker operating a machine tool in a factory
Robotic welding line in an automobile plant
A receptionist answering incoming phone calls

18. Defining Work Systems

19. Productivity Production as a function in Economics Q=f(K,L)
Q: Output, K: Capital, L: Labor
Is there a way to change function f with a better function g?
Better Function=Higher Productivity

20. Productivity Productivity
The level of output of a given process relative to the level of input
Process can refer to
Individual production or service operations
A national economy
Productivity is an important metric in work systems because
Improving productivity is the means by which worker compensation can be increased without increasing the costs of products and services they produce

21. Productivity Labor Productivity
The most common productivity measure is labor productivity, defined by the following ratio:
LPR =
LPR = labor productivity ratio
WU = work units of output
LH = labor hours of input

22. Productivity
Labor Productivity Index
Measure that compares input/output ratio from one year to the next
LPI =
LPI = labor productivity index
LPRt = labor productivity ratio for period t
LPRb = labor productivity ratio for base period

23. Productivity
Example
During the base year in a small steel mill, 326,000 tons of steel were produced using 203,000 labor hours. In the next year, the output was 341,000 tons using 246,000 labor hours.
Determine: (a) the labor productivity ratio for the base year, (b) the labor productivity ratio for the second year, and (c) the productivity index for the second year.

24. Productivity Solution (a) In the base year, LPR = 326,000 / 203,000
= tons per labor hour
(b) In the second year, LPR = 341,000 / 246,000
= tons per labor hour
(c) Productivity index for the second year
LPI = / = 0.863
Comment: No matter how it’s measured, productivity went down in the second year.

25. Productivity Labor Factor in Productivity
Labor itself does not contribute much to improving productivity
More important factors:
Capital - substitution of machines for human labor
Technology - fundamental change in the way some activity or function is accomplished

26. Productivity Horse-drawn carts Railroad trains Steam locomotive
Telephone operator
Manually operated milling machine
Railroad trains
Diesel locomotive
Dial phone
Numerically controlled (NC) milling machine

27. Productivity Measuring Productivity
Not as easy as it seems because of the following problems:
Nonhomogeneous output units
Multiple input factors
Labor, capital, technology, materials, energy
Price and cost changes due to economic forces
Product mix changes
Relative proportions of products that a company sells change over time

28. Productivity Productive Work Content
A given task performed by a worker can be considered to consist of
Basic productive work content
Theoretical minimum amount of work required to accomplish the task
Excess nonproductive activities
Extra physical and mental actions of worker
Do not add value to the task
Do not facilitate the productive work content
Take time

29. Productivity
Excess Nonproductive Activities can be classified into three categories:
Excess activities due to poor design of product or service
Excess activities caused by inefficient methods, poor workplace layout, and interruptions
Excessive activities cause by the human factor

30. Allocation of Total Task Time
Productivity
Allocation of Total Task Time

31. Work Systems Manual work system Worker-machine system
Worker performing one or more tasks without the aid of powered tools
Worker-machine system
Human worker operates powered equipment
Automated work system
Process performed without the direct participation of a human worker

32. Work Systems Manual Work Systems
Human body accomplishing some physical task without an external source of power
With or without hand tools
When hand tools are used, the power to operate them is derived from the strength and stamina of a human worker
Other human faculties are required, such as hand-eye coordination and mental effort

33. Work Systems
Manual Work Systems

34. Work Systems Pure Manual Work
Material handler moving cartons in a warehouse
Assembly worker snap-fitting two parts together
Manual Work with Hand Tools
Material handling worker using a dolly to move furniture
Assembly worker using screwdriver

35. Work Systems Worker-Machine Systems
Worker operating a piece of powered equipment
Examples:
Machinist operating a milling machine
Construction worker operating a backhoe
Truck driver driving an 18-wheeler
Worker crew operating a rolling mill
Clerical worker entering data into a PC

36. Worker-Machine Systems
Work Systems
Worker-Machine Systems

37. Work Systems Automated Work Systems
Automation is the technology by which a process or procedure is accomplished without human assistance
Implemented using a program of instructions combined with a control system that executes the instructions
Power is required to drive the process and operate the control system

38. Work Systems
Automated Work System

39. Methods design

40. Methods
Design
Develop System
Standardize
Time Standards
Training
Methods Design
Motion study - analysis of the basic hand, arm, and body movements of workers as they perform work
Work design - design of the methods and motions used to perform a task
Includes:
Workplace layout and environment
Tooling and equipment used in the task

41. Motion study

42. What is Motion and Time Study?
Motion Study is designed to determine the best way to complete a repetitive job

43. Motion Study Basic Motion Elements
Therbligs – 17 basic motion elements
Basic building blocks of virtually all manual work performed at a single location
With modification, used today in several work measurement systems

44. Motion Study 17 Therbligs Transport empty (TE) – reach for an object
Grasp (G) – grasp an object
Transport loaded (TL) – move an object with hand and arm
Hold (H) – hold an object
Release load (RL) – release control of an object
Use (U) – manipulate a tool

45. Motion Study Pre-position (PP) – position object for next operation
Position (P) – position object in defined location
Assemble (A) – join two parts
Disassemble (DA) – separate multiple parts that were previously joined
Search (Sh) – attempt to find an object using eyes or hand

46. Motion Study Select (St) – choose among several objects in a group
Plan (Pn) – decide on an action
Inspect (I) – determine quality of object
Unavoidable delay (UD) – waiting due to factors beyond worker control
Avoidable delay (AD) – worker waiting
Rest (R) – resting to overcome fatigue

47. Classification of Therbligs
Motion Study
Classification of Therbligs
Effective therbligs:
Transport empty
Grasp
Transport loaded
Release load
Use
Assemble
Disassemble
Inspect
Rest
Ineffective therbligs:
Hold
Pre-position
Position
Search
Select
Plan
Unavoidable delay
Avoidable delay

48. Motion Study Micromotion Analysis Objectives:
Eliminate ineffective therbligs if possible
Avoid holding objects with hand – Use workholder
Combine therbligs – Perform right-hand and left-hand motions simultaneously
Simplify overall method
Reduce time for a motion, e.g., shorten distance

49. Example: A repetitive Manual Task
Current method: An assembly worker performs a repetitive task consisting of inserting 8 pegs into 8 holes in a board. A sightly interference fit is involved in each insertion. The worker holds the board in one hand and picks up the pegs from a tray with other hand and inserts them into the holes, one peg at a time.

50. Example: A repetitive Manual Task
Current method and current layout:

51. Example A repetitive Manual Task
Improved method and improved layout:
Use a work-holding device to hold and position the board while the worker uses both hands simultaneously to insert pegs.
Instead of picking one peg at a time, each hand will grab four pegs to minimize the number of times the worker’s hands must reach the trays.

52. Motion Study Principles of Motion Economy
Developed over many years of practical experience in work design
Guidelines to help determine
Work method
Workplace layout
Tools, and equipment
Objective: to maximize efficiency and minimize worker fatigue

53. Work Methods Design To select preferred work method:
Eliminate all unnecessary work
Combine operations or elements
Change the sequence of operations
Simplify the necessary operations

54. Summary History of Motion and Time Study
Defining Work Systems and Productivity
Methods Design
Motion Study
Work Methods Design

55. References
Groover, Mikell P., Work Systems: The Methods, Measurement & Management of Work, 2007, Prentice Hall
Barnes, Ralph M., Motion and Time Study: Design and Measurement of Work, 1990, John Wiley & Sons Inc.

57. Improving Productivity