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CHAPTER 2
REVIEW OF LITERATURE
2.1 Introduction:
Knowledge is growing rapidly all over the world. It gets doubled in a very
short span of time. Scholars, researchers and writers go on adding knowledge through
their studies and writings. There is a tremendous increase in the number of
publications like books, periodicals in developed and developing countries. One who
is not fully conversant with has little chance of making a worthwhile contribution.
Therefore a researcher has to survey and review the available literature related to his
field of study.
The review of literature is not mere reading for reading sake. It is also not a
casual reading like reading of a story or novel. It is focused and directed towards
specific purpose. It is also selective. A researcher has to select the kind of literature to
be reviewed and determine the purpose for which he has to study them. The literature
review starts with the selection of a problem for research, continues through the
various stages of the research process and ends with thesis writing. Thus review of
literature is a condensed version of an exhaustive literature survey. It consists of
technical writing and data from previous scientific papers, journal articles, books,
reports and other theses on the same subject. The main findings of each study, the
theories and/or further hypothesis, recommendations put forward by the various
authors and their relevance to the current research are presented in the review.
The topic of research is related with to measure and know the productivity by
application of stopwatch time study method and MOST work measurement technique
and to see whether labour productivity is improved or not by application of MOST
than that of stop watch time study method. Therefore the purposes of this review are
as follows:
(1) To gain background knowledge of the research topic,
28
(2) To identify the concepts relating to it, potential relationships between
them and to formulate researchable hypotheses,
(3) To acknowledge other researchers contribution and understand what
research study they did and further scope of contribution to their studies
in selected topic.
(4) To identify appropriate methodology, research design, methods of
measuring concepts and techniques of analysis,
(5) To identify data sources used by other researchers , and
(6) To learn how others structured the thesis, and
(7) To identify gaps in earlier studies, if any.
In view of the above, the objective of the present chapter is to review the
literature on productivity improvement studies related to work measurement and
MOST studies. The chapter deals with various books, research articles in journals and
newspapers, internet, reports etc. thus the chapter reviews the available literature
briefly and identifies certain gaps in the earlier literature. To fulfill the above cited
purposes, the available literature on the research topic selected for the purpose of the
study, is classified as under and reviewed accordingly.
2.2 Literature review on optimization of material,
2.3 Literature review on optimization of Human resources,
2.4 Literature review on improvement of productivity,
2.5 Literature review on work measurement,
2.6 Literature review on Maynard Operation Sequence Technique (MOST),
2.7 Research gaps in earlier studies,
2.2 Literature review on optimization of material:
Materials management plays a vital role in the success of any manufacturing
company. A significant amount (sometimes about 80%) of the capital is invested in
materials. Therefore well planned and well designed material planning, organizing,
coordinating, handling, controlling and effective management operation can lead to
29
considerable saving in the capital expenditure and can result in reduction of per unit
cost and to that extent price of consumer. Material management is necessary to ensure
smooth flow of proper quality material in required quantity when needed at a
minimum cost. Product’s quality, quantity, process size, delivery time depends on
material. Hence optimization of material is one of the most influencing study areas to
researcher. Various techniques and tools are found out by the researchers to study and
know optimum material needs. There are many studies conducted on material
management and issues concerned in this respect. In this section some of the studies
on optimization of material that are linked to time and productivity are reviewed as
follows.
Optimization of resources in service as well as manufacturing was studied by
Kumar1, where he applied MOST to measure time and human resource requirement.
He compared the results of MOST with time study- Watch Method. Economic order
quantity using group technology, scrap reduction, job analysis was studied and
optimum human resource and raw material required was measured. MOST was
applied and performance measurement report was analyzed. The study is based on
primary and secondary data. Steering Engine is studied which consist of 58
component. Each component is analyzed in detail with the help of process sheets. The
study was performed on five criteria namely complexity, number of setups, cycle
time, tolerance, material and size.
The very important part of this research study is that MOST measurement
technique was applied to identify optimum utilization of human resource as per
economic order quantity of the material and optimum time required to handle this
material. This determined manpower saving. Measure of performance plays an
important role to determine results on daily basis as well as for longer periods. Thus
the aim of the study was to analyze manpower utilization and give recommendations
whose implementation will improve working methods and reduce the non value added
time. Application of MOST would lead to reduction in manpower. The results showed
that six individuals were deployed resulting in manpower saving. The study is
performed on manufacturing and service industries. However, study lost its unity in
command as management principle. There is no comparison done for two sectors as
30
manufacturing and service industries differ in nature. Demand and supply pattern of
manufacturing and service industry is also different. Therefore such type of combined
study is not very useful at large scale in giant automobile industries like Mahindra and
Mahindra Limited, SKODA Auto, TELCO etc.
Material is one of most important resource for any industry. There are many
industries in which the cost of raw material represents 60 percent or more of the cost
of finished product. Remaining 40 percent is divided between labour and overhead
costs 2. The relative importance of each of the resources is shown in Figure. 2.1.
Figure: 2.1
Role of Management in coordinating the resources of an enterprise
Source: International Labour Organization, ‘Introduction to Work Study’, Universal
Book Corporation, ILO, Geneva, 1986, PP. 10-11.
Land and
Buildings
Materials Plant Machines
Equipment
The services
of Man
The management obtains
the facts, Plans, Directs,
Coordinates, Controls,
Motivates in order to
produce
Goods and
Services
R E S O U R C E S
P R O D U C T S
31
Material as an important resource, consumes lot of capital and time. Money is
also consumed in handling and holding of materials. Therefore, industries are looking
for new methodology and techniques for the efficient use of material to reduce cost
and time and improve productivity. Initial concept of inventory gradually changed to
group technology, logistics, supply chain, lean manufacturing, total quality
management etc. accordingly work and time study also changed.
There is positive relationship between material and productivity as well as
time and motion activity.
Robert Davis and Norman Gaithar3
developed optimum order quantities for
firms that offered one time opportunity to delay payment for an order of commodity.
Federgruen and Zipkin4 considered a single item, periodic review inventory model
with uncertain demands. They assumed a finite production capacity in each period
with stationary data, a convex one period cost function and a continuous demand
distribution. They showed that a modified basic stock policy is optimal under the
discounted cost criteria, both for finite and infinite planning horizons. ABC technique
was applied to perform the study.
Flores and Whybark5 addressed the need to consider many criteria in
classifying each item and the lack of specificity in the guidelines for managing each
classification. The specific procedures were developed to manage the items in each
category. The results indicates that ABC theory can be expanded to incorporate
multiple criteria and the specific treatment rules for managing the inventory items can
be developed.
Dobson6
recognized that he EOQ formula was quite robust and the optimal
inventory policy was rather insensitive to variations in model parameters. The control
and maintenance of inventories of physical goods is cause of common problem in all
the enterprises across all the sectors. A very popular inventory model is (S,S) policy
where ‘S’ is reorder level and ‘S’ is order up to level and it is known that such
policies are optimal in fairly general settings. In (S,S) policy whenever inventory
reaches or drops below the level ‘S’ an order is placed to increase the inventory
32
position to the level ‘S’. Here S and S are integers. Hence optimization of material
and time to adjust with S and S level, proper study is required.
Cohel7 et.al.
modeled an (S, S) inventory system with two priority demand
classes. Assuming, demand that cannot be satisfied from stock is lost and no stock is
reserved to meet future demand of high priority customers. They developed a
heuristic for computing (S,S) policy that minimizes expected costs to a service level
constraint and time for it.
Hung-Po Chao8
generalized Bather’s EOQ model with stochastic demand to
the case with discounting. They considered two cases, one with demand backlogging
and other without demand backlogging. They showed that without discounting the
stochastic variability of demand had no impact on the optimal order quantity, whereas
with discounting the optimal order quantity increases with the demand variance
parameter. This clearly shows time and quantity must be matched in order to run the
production process and improve productivity. The equation identified by them is
identical to the well known EOQ formula for the case without back logging. Thus,
this study shows that the objective value would depend on the distribution of the
timing of purchase orders and demand uncertainty which had a significant impact.
Anupindi9
analysed a situation where a buyer commits to buying a given
amount of inventory from the supplier in the beginning of the planning horizon, but
had the option to dynamically adjust quantities. The focus of study was on the buyer
who has to solve the problem like what amount of quantity to commit to and how
much to adjust in each period.
Kleywegt and Papastavrous10
investigated a problem in the transportation
industry, where common carriers carry loads for many different clients. The carriers
receive transportation request for different sized loads randomly overtime and prices
were offered or negotiated for transporting the loads. If a load was accepted, costs
were incurred for picking up and handling the load and the negotiated price was
received. If a load was rejected, some customer goodwill and possible future sales
would be lost, represented by a penalty for rejecting loads. Some carriers had a fixed
33
scheduled for moving vehicles and thus a deadline after which loads could not be
accepted for a specific shipment. There was also a holding cost per unit time;
representing actual warehousing costs as well as the quality customer service, which
was incurred until the shipment was dispatched. The study was based on observation
and interview of important personnel.
Sahay and Gupta11
stressed that SCM practices in Indian FMCG sector has
started gaining importance and attention. Corporate are considering a review and
redesign in existing supply chain network and management that would estimate
savings of over 30 percent. If third party logistics are used, inventory would be
reduced considerably. Under uncertain delivery times, third party logistics providers
became more important in management of supply chains, planning and control.
Transportation companies provides logistics service incur costs due to making
deliveries earlier or later than specified dates, and therefore they had to come up with
a good dispatching schedule to minimize sum of operating and penalty costs. Hence
there is potential for improving supply chain efficiencies by redefining the company
strategies to provide better customer service and gain business advantage.
Aviv12
developed a unified time series framework for joint forecasting and
inventory control in supply chains that are rich with demand information. This
framework can be used as a tool for their inventory control systems, as well as a
building block for the study of the potential benefits of forecasting and inventory
control in their supply chains. For scholars, this work provides a framework for
studying information rich multi echelon inventory systems, as well as method for
assessment of cost performance.
2.3 Literature review on optimization of Human Resource:
Human resource management influence employees’ skill and time through
acquisition and development of firm human capital. Recruiting procedures and time
that provide a large pool of qualified applicants, paired with a reliable and valid
selection regimen will have a substantial influence over the quality and type of skill
new employee possess. Providing formal and informal training experiences such as
34
basic training, on the job experience, coach mentoring and management development
can further influence employees’ development. Therefore, time and motion (work)
studies of human resource are very significant.
Frank13
et.al. considered a periodic review system with two types of demand –
deterministic and stochastic. In this system, the deterministic demand must be
satisfied immediately, while the units of stochastic demand that were not met in the
same period were lost. Therefore time and motion study is significant in such types of
material demand. Human planning is different in these two systems. Therefore this
study is very useful to know the human resource and time estimate.
Chandrasekar14
et.al. studied a problem of timing of price promotions and
inventory control of a perishable product which was going to be withdrawn from the
market after a finite horizon. Time study problem was observed in the industries
where new technological innovation replace old products and in highly competitive
sections of markets. This is required to calculate optimal time for promotion of
product and to decide the optimal ordering quantity in every period so as to maximize
the profit for manufacturer. This will forecast optimization of human resource.
The concept in optimization of material further advanced with the linking of
manufacturers, retailers and customers. This new concept was called supply chain
management (SCM) which required trained manpower planning. It is a mechanism to
improve the total productivity of companies by optimizing the time, location and
quantity of material flow from the raw material provider to the consumer of the final
products. In this context, Hicks (1997) pointed out that implementation of supply
chain software technology was not a technology issue but it was people issue.
The value addition chain in India is characterized by low margin and
consequently, the cost of the end product is also low. Though the Indian industry is
appreciated as a low cost supplier, it is not popular due to its poor delivery
performance and long lead times. In this context, Manickam and et.al. analyzed the
issues and developed a comprehensive supply chain metric to measure the
performance of the entire supply chain human resource and time required to complete
35
the process. Analytic hierarchy processing (AHP) technique is applied to measure the
performance.
Ebert15
incorporates the learning curve into productivity calculations for an
aggregate planning in a single stage manufacturing system.
Charnes.et.al.
16 utilized goal programming approach with embedded mark or
processes in modeling for a flexible equal employment opportunity.
Catcher-Gershen feld17
found that firms adopting ‘transformational’ labour
relations- those emphasizing cooperation and dispute resolution had lower costs, less
scrap, higher productivity and a greater return towards direct labour hours than the
firms those adopt traditional adversarial labour relations practices.
Ichniowsi et.al.18
presented new evidence on the productivity effects of
employment practices. The evidence derived from unique monthly panel data on
productivity and human resource management practices in a homogenous sample of
production lines showed that innovative human resource management practices raise
worker productivity. Moreover, systems of innovative human resource management
practices had large effects on production workers’ performance, while changes in
individual employment practices had little or no effect. He developed a model that
takes account of the fact that the investment in information technology for one set of
task contributes to the output of others through the enhancement of worker
knowledge.
Oded et.al.19
focused on the development of a model to schedule both workers
and their work through a complex high volume factors. They executed an object
oriented liner programming (OOLP) model.
According to Weinstein and Oblog20
, the introduction of HRM at company
level was result of both managerial choice and economic pressure. Notably, these
changes were made in a shorter period of time as compared to western countries.
‘Optimization of Human resource through Job rotation and learning at work
placed’ is studied by Sanjay Kumar et.al. based on observations and interview
36
method. The survey has revealed that job rotation is used by a significant and
increasing number of companies in the United States and other countries. Therefore
researcher studied the job rotation patterns and learning attitude of faculties in various
disciplines of engineering colleges. He assumed that job rotation is possible
frequently in lower semester and specialized in higher semester. A mathematical
model was used to implement the job rotation policy in educational institutes. It was
observed that results are poor in lower semester as compared to higher semesters. The
study concluded that it is more profitable for the firm to rotate employees with low
rather than high tenure and rotation is more profitable in more innovative, employee
would learn a lot even if they do not change jobs.
2.4 Literature review on improvement of Productivity:
Productivity is a key to prosperity. All the developed countries have higher
productivity. Rise in productivity results in higher production, which has direct
impact on standard of living. It reduces cost per unit and enables reduction in sale
price. It increases wages for workers and increased profit for organization. Higher
demand creates more employment opportunities. Therefore, improvement in
productivity is important for country like India because it can minimize level of
poverty and unemployment. Labour, material, machine, capital are the indices of
factor productivity. Models such as Craig and Harris, Taylor Devis and APC are well
known in the field of manufacturing. There are 8 factors affecting productivity and
ways to improve the productivity, pointed by Patil and Hukeri. Human resources,
technology, physical facilities, product, production, management policies, material
and working conditions etc. are key factors that are influencing productivity. Since
research topic is concerned with improvement of productivity using MOST work
measurement technique, a survey of literature on productivity is essential. Hence, in
this section an attempt is made to review some of the studies those are related to
productivity.
Jalwadi and Patil21
in their article ‘Productivity Improvement in an
Engineering Firm through Computer Applications’ contributed to enhance
productivity of design process in a Engineering company located at western
37
Maharashtra. The efforts were towards least amount of time to be taken by design
process so that sufficient time is made available for manufacturing process. This will
lead to lesser cycle time of product and services that provides competitive edge to the
organization. They assumed that the repetition of the design process and the time
period involved is eliminated by adopting a standard design approach for all types of
best conveyor systems to be delivered by the company. They developed ‘C’
programme in 7 modules. The study was based on observations, experiments, survey
and personal interviews. The study found that use of the program in the company
resulted in design lead time reduction i.e. from few days (2 to 3 days) to few hours (2
to 3 hours). They concluded that simple applications may save valuable time for the
company and improve the productivity. This approach is not feasible for giant
manufacturing industry but only for small scale industry.
A study on ‘Quality and Productivity improvement in Automotive Component
Manufacturing Company using Kaizen’ was undertaken by RajenthiraKumar and
Thyla22.
They addressed the implementation of the lean tool ‘Kaizen’ in an automotive
component manufacturing company with a focus on tube sub assembly line. The
study describes how the value stream mapping (VSM) and other suite of lean tools
such as Kaizen can be used to measure the current state of production line and design
desired future state. The study results shows significant increase in quality and
productivity on sub assembly line and the production flow was smoothened by
elimination of several non value added activities. The objective of the study was to
use a case based method to demonstrate how lean tools like Kaizen, if used
appropriately, can help the industry to eliminate waste, improve productivity and
product quality. The data was collected through observations, surveys, interviews
method. Primary as well as secondary data was collected and used for research
purpose. Procedure of kaizen implementation is also presented in the study in a simple
manner. The study shows that as compared to time watch method, productivity and
quality was improved due to implementation of Kaizen. However, a comparison of
productivity and quality of product between Kaizen and MOST work measurement
technique along with time watch method will be very interesting and is not done so
far. The implementation of lean manufacturing strategy strengthens the phase
38
sequence that leads to operational excellence, a continuous improvement and
elimination of non value added activities23
and influence of these practices contributes
substantially with the operating performance of plants24, 25
and use of lean tools allows
the improvement of results26
. It has been increasingly adopted as a potential solution
for many organizations, particularly within the automotive27
, aerospace28, 29
and
manufacturing industries. Applications have spanned many sectors including
automotive, electronics, white goods and consumer products manufacturing30.
Then it
is valuable to apply MOST in these industries and assess the results to know the state
of affair. With traditional techniques such as quality circles and management circles,
Kaizen may turn a profitless company into a profitable one without an enormous
investment in equipment31.
The successful application of Kaizen and various lean
tools had a profound impact in a variety of industries such as aerospace, computer and
electronics manufacturing forging company32
, process industry (e.g. steel) and
automotive manufacturing33
.
In the study,’ Area of Lean Manufacturing for productivity improvement in a
manufacturing unit’, Hudli and Inamdar34
highlighted implementation of lean
manufacturing practices and its level of adoption. This case study of an assembly line
set up whose production line target is to manufacture 3200 pumps sets/ months on two
shift basis. The study shows that lean production method is an effective way to
improve manufacturing product, management and enhance the international
competitiveness. Production of the pump set has increased from 3200 to 8000. Toyota
production system (TPS) which is known for lean manufacturing in their book,’ The
machine that changed the world’, has influenced the manufacturing practice around
the world35
. The fundamental of TPS is to eliminate waste and produce only the items
needed at the required time and in the required quantities. Principles of lean are
universal as they are broadly accepted by many manufacturing operations and have
been applied successfully across many disciplines. It has become an integrated system
composed of highly interrelated elements and a wide variety of management practices
including Just-in-time, Quality system, work teams, Cellular manufacturing etc.36
The aim of the article titled,’ Implementation of Productivity improvement
strategies in a small Company’ by Gunasekaran and Cecille37
is to represent some of
39
the experiences in the implementation of various productivity improvement strategies
and methods. The details of the productivity problems and strategies in SMEs, the
steps of implementation and the lessons learned are discussed to improve productivity
in SMEs. For this purpose, Just-in-Time measurement technique was implemented
which resulted into productivity improvement.
Oxford Holt and Company38
provides performance and productivity
improvement consultancy to a wide range of businesses and industrial sectors. The
Company ensures that clients obtain the best possible performance by consistently
improving effectiveness and efficiency, leading to enhanced and
sustained profitability. Case studies for productivity improvement are as follows:
1) Productivity improvement at line was achieved for a client who had recently
opened a new production facility and invested upwards of £12m in plant and
machinery in UK. The manufacturing process consisted of several work centers,
linked by conveyers. Essentially, this was a production line where components
and raw materials were fed onto the line and finished products came off the end.
Site Management wished to optimize the performance of the line. The objectives
of the project were (i) Calculate the optimum speed of the line for the various
products (ii) Highlight areas where bottlenecks were present and suggest how they
could be removed (iii) Recommend the correct manning levels (iv) Devise KPI's
for costing and planning purposes. The approach used was to perform a series of
time studies covering all the operations, both manual and machine controlled. The
data was then analysed to derive spreadsheets that were compatible with in-house
systems. In-house staff was trained to use new data and assisted them with the
build-up of their product costing. The line balancing project was delivered on
time, within budget and with savings of 10-15% using the same manpower.
2) Productivity was improved by capacity planning in warehouse and dispatch
function for medium-sized engineering company. Management observed problem
in capacity planning and the control of manpower levels. The objective of the
project was to (i) investigate into how time was being spent and to recommend
upon staffing levels and departmental capacity (ii) to highlight where the
40
processes and operations could be improved. To achieve these objectives, an
activity sampling exercise was conducted covering a complete shift for the entire
completent. This defined the manpower levels for the various delivery volumes
and enabled Management to plan resources accordingly. The exercise also helped
to highlight any waste within the processes. The project yielded labour savings of
around 15% due to enhanced capacity planning and productivity improvement of
10% as a result of improved ways of working.
3) FTSE 250 plc having operations throughout the World, there was no reliable data
available to monitor and control the normal production routines. The objective of
the project was to train number of staff in the rudiments of Lean standards, plus
the derivation and application of time standards. With regard to the outcome, the
line was balanced; working methods improved and KPI's were introduced. The
result was 43 percent improvement in the productivity.
4) For an engineering operated company which supplies products to world’s top
manufacturer, inefficiencies in the supply chain were resulting in customers being
consistently let-down by late deliveries. Cash flow was also suffering as a result
of outstanding orders at the month end that could not be invoiced. The goal was to
improve the efficiency of supply chain process. To achieve this goal, all aspects of
supply chain were examined from order input to dispatch and action plan
prepared to eliminate inefficiency. Key staff was involved throughout the process,
including a number of suppliers. 36 recommendations that spanned seven parts of
the supply chain were adopted and implemented. In terms of savings, there was
a productivity gain of 10% and reduction of £500,000 in working capital.
5) Another Manufacturing client was experiencing difficulties in meeting orders and
labour was in short supply locally. There were frequent stock-outs and excessive
amounts of overtime were being worked. Weekend working was also the norm,
leading to adverse cost variances. To overcome the situation following solutions
were recommended: (i) Revising the factory layout to ensure that production
flowed smoothly (ii) Reorganizing the raw materials stores allowing stocks to be
reduced and parts located (iii) Devising a system of "kitting-up" so that each job
41
could be prepared in advance and processed accurately (iv) Producing a series of
key performance indicators and reports to monitor and control labour productivity.
As a result, factory efficiency improved from 52 to around 85 performances and
productivity was improved by 60 Percent.
6) For a long-established manufacturer from a traditional UK industry, during the
past few years sales turnover had been static and profits declining, mainly due
to an influx of cheaper products from the Far East. Although several new
machines had been installed, the operations and processes from within the
remainder of the production facility had not been examined for many years. The
goal was to review all aspects of manufacturing and raise productivity. To
achieve this goal following changes were recommended: i) Changing shift
patterns ii) Re-deploying surplus manpower iii) Improvements in working
methods iv) Devising a series of KPI's. The client is now operating at the same
level of output, but with fewer staff and less overtime and shift premiums thus
resulting into overall productivity improvement.
7) For renowned cottage industry the manufacturing function was coping with
current requirements, but demand for the products was escalating. The goal was to
improve the productivity within a Lean Manufacturing framework. Initial
diagnostic studies revealed the flow of work was irregular restricted by
bottlenecks and excessive WIP. After mapping the processes an improved factory
layout encompassing a Pull system of production that moved towards Single Piece
Flow was prepared. A 5S approach to housekeeping was instigated to ensure that
the improvements would be sustained. As a result, labour productivity
was increased by 12 Percent.
2.5 Literature review on Work Measurement:
The pioneering advocates of the application of scientific method to the
planning, organizing and control of industrial production recognized the need for
analytical techniques to measure the cost of manufacturing operations , determine
operation times on which these costs could be based and enable production to be
42
planned in advance with some disagree of precision. American scientific management
pioneer, F.W Taylor (1856-1915) who is commonly acknowledged as the originator
of Time study and it is from his work or rather from Charles E. Bedaux’s (1884-1944)
refinement of Taylor’s work, that most modern work measurement technique system
is in existence.
‘Elementary Time Study’ was first developed by Taylor 39
who multiplied the
sum of the average element times’ by a factor which allows for rest and other
necessary delays’.
‘The Theory and Practice of Time Study’ 40
focused on following topics-(i)
history of time study (ii) Purpose and scope of time study (iii) introductory and
routine phase of work study (iv) job breakdown into elements, rating and time
determining procedures (v) Basic time with contingency allowances and case study
application. The study adopted systematic and scientific method to employ time study
and demonstrates it in a procedural sequence. Calculation methodology is used to
apply time study and an attempt is made to implement time study in manufacturing
company. For this purpose, work of company was distributed in two stages:
preparatory stage and principal stage. He observed reduction in manpower, improved
productivity and increased workers earnings. However, a comprehensive history is
traced upto F.W.Taylor only and to some extent upto World War II. These studies
consist of information on application of time study method, but no case or evidence
for the application is traced.
Merrick41
recommended that the operator studied should be a first class
worker, and that fatigue and other allowances added to the measured times should be
such as to bring the resulting rates within the range ability of the average worker.
Bedaux developed his own method of time study, in which the observer rates each
element for speed and effort and awards an appropriate Compensating Relaxation
allowance. Much has been written on the Bedaux system, described by Schlesinger42
,
and its comprehensive tables of Compensating Relaxation, but little information has
actually been revealed regarding the values, and less concerning the means by which
they were derived.
43
Morrow43
observes that it was by using Bedaux’s principal laws during the
five years 1911-16 that Bedaux established relaxation allowances for different task,
allowances which vary from 15 to 210 percent of the working time. On the other
hand, Standing44
states that the ‘the approximate relaxation allowance for all tasks is
obtained from tables which have been calculated by Bedaux experts’.
Barnes 45
writes,’ the problem of determining the amount of time to be allowed
for rest is very complex. Time needed for rest varies with the individual, with the
length of the interval in the cycle during which the person is under load, with the
conditions under which the work is done, and with many other factors. Some
companies have from long experience arrived at fatigue allowances which seem to be
satisfactory.’ And Barnes publishes a list of personal and fatigue allowances used by
one company as an example.
The pioneer work on fatigue measurement was done by Mosso46
, who
invented the ergograph apparatus to record the work done by a few muscles of the
body. McDougall47
advanced the view that well fixed habits or simple tasks were
useless as measuring rods except in extreme cases of fatigue and that a process late in
development and more sensitive to change should be selected. He consequently
devised a test to provide the subject with a task demanding for its execution a
continued maximal voluntary concentration of attention. The apparatus which is used
widely is described by Smith 48
. A modified and portable version of this apparatus
known as Dr. Schuster’s disc-dotting Machine’ has been used in some industrial
experiments. A weakness of such psycho-Motor tests is that the novelty of doing the
test tends to mask the fatigue effects of the activity on which the subject has been
engaged. Further examples of physiological measurements in work study is reviewed
by Williams 49
while research findings published by Floyd and Welford
50 and in
Ergonomics, the quarterly Journal of the Ergonomics Research Society, includes work
which is directly related to this subject.
It was conjectured in a paper by Wiberg51
that the shape of frequency
diagrams of operation time might give an indication of the skill, motivation and
general level of performance of workers. The paper was an entirely notional one.
44
Although the idea seemed to be reasonable and stimulated number of researchers,
there was little evidence at that time to substantiate its tentative suggestions.
Seymour52
in his study found that the time occupied by individual motion elements
did not vary proportionately with operation element and cycle times. He concluded
from his study that ‘as the speed of performance is increased, the individual therbligs
(motion elements) do not improve consistently.
It is claimed that for most systems of predetermined motion times, original
data was determined as a result of normalizing or leveling many thousands of
industrial tasks recorded on cine film and by other means. The times thus recorded
were adjusted by the application of some performance rating factor, in order to arrive
at the required performance standard. For example, Maynard et.al.53
in their study
‘Methods-Time measurement ‘, focused on their use of leveling technique developed
by their organization some 20 to 30 years previously and tested over the intervening
years.
Vernon states in his ‘Law of maximum production with minimum effort,’ that
experienced industrial workers unconsciously adopt habits of work which tend to the
production of a maximum output with a minimum effort54
.
Siddall’s study was performed for workers on a conveyor belt, that is, paced
workers, and it was this apparent difference between unpaced and paced performance,
he found a markedly unstable pattern of motion times55
.
Tippett56
who first introduced the snap reading technique, later known as the
ratio delay57
or activity ratio technique and more recently as work sampling58
has
given an account of the circumstances in round 1927’ in which its use first occurred.
Faced with the task to maintain service in weaving sheds to discover the causes and
durations of loom stoppages with a view to establish how much productive capacity
was lost for various causes. He sought a method of observation that would be less
informative than timing with a stop watch or recording stoppages electro-
mechanically.
45
One of the most complete studies based on statistical measure to time study is
in article by John M.Allderige59
. He explored the entire question of mathematical
procedures and statistical tools to develop recommended five steps approach that
deserves wide usage for improving time study. This study attempted to answer the
following questions:
1. How many time study observations are required for each element or cycle?
2. Are the readings obtained consistent?
3. What is the precision of the final prorated cycle time?
It is important to note that these are the frequently asked questions by time
study analysts and answers to these questions will help greatly to ensure that the
measurement aspect of time study is properly accomplished. To answer the above
cited questions researcher provided 5 step methodology in which the first question is
answered by steps I, II and III. Constructing and analyzing a control chart in step IV
answers the second question. Third question is answered by step V. Thus this study
makes it possible to lift time study from realm of controversy and make it a
substantially more powerful tool for management.
When more than two variables influence the final time then, a multivariable
chart can be employed. Multivariable charting is well described in an article by
Snakenberge60
. The multiple monograph technique is another means of relating
several variables in concentrated form.
Dudley61
studied performance of repetitive work and its procedure. Paced and
unpaced performance was measured and compared by researchers. He also studied
machine interference, activity ratio and perception techniques. Primary experimental
technique was used for data collection. He compared distribution of operation cycle
and operation element times recorded over different operators. He found that the
majority of the cycle time is not substantially greater than the minimum, but there will
be a certain number of greater longer times. The ratio of motion element times in
change from unpaced to paced performance, even when the mean paced speed of
working approximately to the mean of the unpaced speed. He also found that the
46
relationship between faults sustained and the speed was linear in nature in case of
mental task and it was logarithmic in nature in case of physical task.
Chart 2.1
No. of faults, paced and unpaced: Mental addition
Speed No. I II III IV V
Periodic time per digit
(seconds) 1.29 1.14 0.99 0.84 0.69
Observation a b A b A b a b a b
Operator
A 5 5 12 4 9 8 21 12 15 20
B 7 1 7 6 4 7 15 8 18 9
C 0 0 0 0 4 0 0 2 9 2
D 3 2 9 2 7 9 9 8 14 13
E 0 0 0 0 0 0 4 0 3 2
F 0 2 4 4 3 4 7 4 14 13
G 0 0 0 0 2 3 3 0 3 0
Source: Dudley Norman A.,’ Work Measurement: Some research Studies’,
Macmillan, London, 1968, Table 8.2, PP.92
In ‘Engineered Work Measurement: Karger and Bayha62
highlights basic work
measurement, MTM fundamentals, detail of motions and application of MTM in
engineering. Observations, interview, experiments controlling and surveys were
conducted for collecting data on MTM and its application in engineering. Turn,
Crank, Pressure, Grasp, Release, Positions, Disengage, Eye Usage, body, leg and foot
motions are examined and studied properly. In detail decision making model was
suggested for each and every motion. Motion economy as related to use of human
body, the arrangement of the workplace and the design of tools and equipment was
discussed. They concluded that:
47
i) Human factors abound in modern business and other organizations,
ii) The problems of fully utilizing human energy invade every realm of an
enterprise.
iii) Work study must be concerned with human body, based on new mechanics
and biological laws of life.
iv) Work measurement offers one of the most religious ways to achieve the
benefits of increased production at labour cost for the advantage of
everyone.
v) Due to variations from industry to industry practically, it is not possible to
apply one method of motion and time.
vi) Regardless of the amount and variety of time standard adjustments
normally applied in given industry, it is instructive to note that
management policy usually governs. Executives have the right to interpret
measurements and revise or overrule normal policy as determined by the
exigencies of production.
vii) MTM development, resources, system overviewed, MTM-1, etc is
discussed by author. Thus this study is means of guidelines for work time
measurement.
viii) This study also provides source publication for more than 33 reports,
articles, books, thesis etc.
In another study, Karger and Hancock63
extended the discussion of work
measurement beyond the fundamental found in conventional work measurement texts.
This next version of engineered work measurement more advanced areas of work
measurement knowledge was presented in chapter 1 to 5 and 13-14, whereas, more
advanced Methods-Time measurement (MTM) systems-MTM-1 is presented in
Advanced Work Measurement book. It also covers computer systems developed for
work measurement, especially those based upon MTM-1 along with advanced
(additional) work measurement material. MTM 1,2,3,5, MTM-M are discussed in
detail.
48
International Labour Organisation64
(ILO) studied work study, consisting of
productivity and work study, Method Study, Work measurement and new forms of
work organization. Method study according to ILO is the systematic recording and
critical examination of existing and proposed ways of doing work, as a means of
developing and applying easier and more effective method and reducing costs. Work
measurement is the application of techniques designed to establish the time for a
qualified worker to carry out specified job at a defined level of performance. They
concluded that Method study is concerned with the reduction of work content of a job
or operation, while work measurement is mostly concerned with the investigation and
reduction of any ineffective time associated with it, and with the subsequent
establishment of time standards for the operation when carried out in the improved
fashion, as determined by Method study.
Patil and Hukeri65
studied general aspect of productivity, Work study, Method
study, Quality Control, Work measurement and MOST technique.
Knowledge on implementation of industrial engineering is studied
theoretically through a time study in small and medium industries by Yong 66
. The
study is to find the standard times of the employee and find out a solution to
maximum the labour efficiency based on the knowledge of industrial engineering. The
study was mainly carried out by preparing the letter to industry, industry visit, process
listing, data collection analysis of the data, result and discussion of the data and
conclusion. WS Food trading industry was selected for study. The study showed that
the WS food trading does not have the knowledge about deriving standard times and
the knowledge on implementation of industrial engineering concepts in the industry.
There is review of literature chapter in the dissertation but not a single study is
reviewed. Only general information is provided by the researcher.
Sajjadi et.al.67
research article presents a data collection toolbox and
application of digital data collection system for health care improvement project.
Simulation model is a powerful tool which can capture a complex system but one of
the challenges for constructing a simulation model is data collection. They pointed ten
data collection system for healthcare; such as (i) Stopwatch and programmed data
49
sheet (ii) Staff interview (iii) Detailing the process using forms and /or VSM (iv)
Patient interview and/or satisfaction questionnaire (v) Reviewing clinic records (vi)
Conducting onsite observations (vii) Video recording (viii) Checklist/questionnaire
(ix) Barcode Scanner (x) RFID, PDA and other methods. There are various methods
which can be utilized to measure a process such as MTM MOST; discrete event
simulation etc. the collection of data for any technique application is very essential
but collection of data is a complex process. Considering that the data collection is a
key factor in successful simulation analysis, this article reviews data collection
methods that can be applied in healthcare system and examines how the digital data
collection is applicable in healthcare improvement. It is presented in systematic data
collection approach.
Racin and Davidso68
describes a time flow study at a pediatric clinic to
redesign the patient flow. They report reasonable improvement in the patient waiting
time, process time and resource utilization usage.
Meyer et.al69
studied a multi step ambulatory preoperative system. An
automatic tracking system tracks the tagged patient in the clinic. The process time at
each station of the clinic is automatically collected and this helps to analyse the
system and to determine the improvement opportunities.
2.6 Literature review on Maynard Operation Sequence Technique (MOST):
Zandin70
contribution is considered as pioneer to MOST Work Measurement
systems. Zandin in his book,’ MOST Work Measurement Systems’ has defined work
in terms of operation, sub operation, time standard, activity, method step, sequence
model, sub activity and MOST analysis. The concept of MOST and the basic MOST
sequence models are clearly discussed by focusing on MOST as a productivity
improvement technique. The basic MOST system, MOST family, the Mini MOST
system, the Maxi MOST system, MOST for critical Operations, systematic
development of engineered labour time standards and MOST Computer systems are
explained in simple and comprehensive manner. It helps an Industrial Engineer as a
tool to measure, document and control manufacturing methods and cost. The family
50
of techniques and system is based on strong support of its original member -the Basic
MOST work measurement system. He states that to satisfy some special work
measurement needs, Mini-MOST and Maxi-MOST have become members of the
MOST family during 1980s. He further states that MOST is a Method based system.
In the process of developing the computerized version of MOST, the use of keyword
seemed to be a logical approach to solve the data input problem. The keyword
concept provides an appealing practice for the computer user and for the Manual
MOST user as well. A detail procedure of calculation and application of MOST is
provided by Zandin. The calculation of MOST is also illustrated in this research work.
Thus, work is really worth and notable contribution in the area of work measurement.
Malik71
studied productivity by applying MOST in two units at Mahindra and
Mahindra Ltd. by assuming that MOST improves productivity. For this purpose two
units namely Engine Product Unit and Body supplies Module were selected by
researcher. The object of the study was to access manpower utilization in different
cells using MOST for Engine Product Unit and Body supplies Module. Activity study
for individual was performed for Engine Product Unit whereas Activity study for
group of parts was performed for Body supplies Module. The study was based on
primary and secondary data. The primary data was collected by way of observations,
survey and interview technique. The study was carried out part wise in which
activities for washing each single part was captured. This data was then entered in a
sophisticated software tool namely ‘MOST Data Acquisition Tool (MDAT)’ which is
developed in-house by Mahindra and Limited. to give timings and index for activities.
On the basis of time indicated by MDAT, calculation is done to determine manpower
utilization and scope of improvement measures were suggested using ECRS technique
(Eliminate, combine, replace, simplify). The results of the study showed that (i)
manpower utilization was improved by 40.70 percent and productivity improved by
78 percent for GP Washing machine activity in Engine Product unit. (ii) Manpower
utilization improved by 16.07 percent and one person was deployed from the job in
Engine Quality assurance department at Engine Product unit. (iii) In Body Supplies
Module manpower utilization was reduced from 61.26 percent to 95.31 percent.
Hence, researcher concluded that MOST study definitely is a management job rather
51
than mere technical job as it involves working along with people, coordinating,
communicating and balancing workload for manpower.
Jadhav72
in his study ‘Manpower Optimization through MOST Study’
assessed optimization of manpower in Mahindra and Mahindra Limited by applying
MOST in Body Supplies module. In his study MOST is used as a tool for productivity
improvement. It was found that MOST enables better picture of working procedures
and thus leads to elimination of Non value added operations. He calculated actual
time required towards issuing parts to subassembly and single cab body. Time was
calculated by actually observing the activity and then using the MDAT software. It
was observed that the work content utilization factor was very less and considerable
amount of manpower remained unutilized. Hence, researcher concluded that company
can reduce manpower as some of the activities require both the operators. He
suggested balancing workload by assigning more work and improving productivity by
using MOST.
Gothey73
in his study,’ The Study of MOST D.P Contactors for
Standardisation’, has studied five types of contactors. It was two phase study carried
out to know and improve the existing operation procedures by application of MOST.
The study was carried out for operations in (i) Assembly (ii) testing (iii) Packaging at
Siemens India Limited., Mumbai. The focus was to calculate standard time required
to complete assembly type contactors. The study was based on observation, interview
and survey undertaken at Siemens India Limited. The study showed percent increase
in production -37.35 percent increase in production for type I operation, 33.33 percent
increase in production for type II operation, 31.30 percent increase in production for
type III operation, 36 percent increase in production for type IV operation and 44.06
percent increase in production for type V operation. The study also shows 29.37
percent increase in production for testing process and 60 percent increase in
production for packaging process. Thus study clearly shows that MOST is extremely
relevant and one of most important technique to improve the productivity. Hence he
suggested implementing MOST technique at Siemens India Limited., Mumbai.
52
In another study, Kothari74
brings out the effect of MOST application in
Siemens India Limited., Mumbai. In his study ‘Implementation of MOST on 8BK80-
800 Structure Assembly’ SAP was used to understand and implement MOST. To
increase the productivity of the assembly line, two layouts of workstations were
combined. According to the new layout, 3 workstations are assigned for 8BK80-800
and 3 workstations for 8BK80-600. New layout increased the flexibility and common
area for storage as per demand. Hence with the new plant layout space is saved and
flexibility is increased. Thus, productivity is improved. Study is based on experiment
undertaken for 8BK80-800 structure assembly at Siemens India Limited. This time
study gives exact idea about the steps followed in assembly of the panel and optimum
time required for assembly structure. Thus it will be interesting to negotiate MOST
study with workers and implement in other companies.
‘Productivity Improvement through Application of MOST in Switchgear
Company’, was studied by Sirdeshmukh at.el.75
Predetermined Motion Time systems
(PMTS) have become attractive and a useful evaluation tool for manpower utilization
and productivity improvement. Basic MOST and MiniMOST, as examples of PMTS
systems were applied to the assembly of 4P RCCB product. Using results from MOST
study sheet lean principle were applied such as work balance, suggesting workstation
wise improvements and the differences between present MOST and Lean MOST
output are presented by the researcher in the study. At the 4P RCCB line operations
are analyzed by using MiniMOST and BasicMOST applications. Comparisons of
present output, MOST output and lean MOST output are shown in results by
researcher. It was found that time standards used were not appropriate for current
processes followed in switchgear company. The current production data showed
effective work time is 222 minutes as compared to available 460 Minutes. Thus
researcher concluded that to utilize current resources effectively, it is required to
implement MOST standards.
To use MOST for optimum utilization of manpower, a case study was carried
out in transmission supply product unit of a leading automobile industry by Kumar76
.
The optimization of material and human resource was studied and MOST
measurement technique was applied by researcher for this purpose. He compared the
53
results of MOST with traditional work measurement technique that is watch method.
Screen view of MDAT_supplyss main was used for MOST purpose. Sample MOST
sheets routing MOP link, performance report was used for result purpose. The study
shows that implementation of MOST saved 6 manpower individuals.
Mahajan77
examined the reduction in tool changeover time by implementation
of Single Minute Exchange of Dies (SMED) through MOST for Legrand (India) Pvt.
Ltd., Jalgaon. The SMED technique is implemented assuming that it leads to save
process time and MOST is used to calculate the new improved time for the process
with the help of standard sequence chart for the movements. He reviewed MOST
technique and compared it with traditional time study application method. Results
showed that Stopwatch Method takes 31 Minutes for tool changeover whereas by
using MOST for SMED it took only 17 Minutes to perform same action. Thus tool
changeover time is successfully reduced by 14 Minutes. He concluded that by
application of other MOST methods tool changeover time can be further reduced in to
single digit minutes.
Kumar Sanjay and Mantha S.78
implemented the MOST for optimum
utilization of manpower in a leading automobile industry. The study was carried in
Engine Product Unit. The objective of the study was to carry out an activity study on
the job to analyze utilization of manpower and give suggestion for working methods.
The study was carried out part wise in which, activities for washing each single part
was captured. Timing for each activity was calculated by entering the data in a
software tool ‘MOST DATA ACQUISTION TOOL (MDAT). On the basis of time
indicated by MDAT manpower utilization was calculated. Out of 15 manpower in
existence only nine manpower utilization was proposed based on the results obtained.
It was suggested that, the extra manpower in Engine product unit can be utilized for
some other activity. The study is an excellent case of manpower utilization through
application of MOST technique.
Abdullah and Bahiyah79
in their study, ‘Labour Utilization and Man to
Machine Ratio study at a Semiconductor facility’, attempted to improve productivity
and reduce operational cost in MNC semiconductor industry using Maynard
54
Operation Sequence technique (MOST). The study was performed at inspection
section of Quad Flat No-Lead department. They worked to achieve following
objectives: (i) Perform Work Study on Operator’s activities (ii) Determine the current
utilization of the operator (iii) Propose the ideal man to machine ratio. To achieve
these objectives each activity performed by operator was mapped using process
mapping technique. The activity time was determined using MOST technique and
value added and non value added activities were categorized. Results showed that the
current utilization of operator was as low as 47.43 Percent for cell 1 and 41.22% for
cell 2 whereas management targeted operator utilization to be at 75 Percent.
Therefore, it was recommended to increase the current man to machine ratio from 1
operator to 3 machines to 1 operator to 5 machines so as to achieve 75 Percent
operator utilization. Elimination of Non value added activities and improve machine
performance resulted in operator productivity to be improved by 22 Percent. Thus, the
study concludes that by improving man to machine ratio through work study and by
establishing a standard operating procedure productivity can be improved.
Nor Diana Hashim80
in the study, ‘Time Study method implementation in
Manufacturing Industry’, has applied stop watch time study method for the project
Goodrich V2500 (Tourque Ring Cone Fairing Panel) in company called CTRM Aero
Composites Sdn.Bhd. the study mentioned stop watch time study method as means to
improve productivity and efficiency. The objective of the study was to find the rating
factor and allowance for each process in order to conduct the stopwatch time study
for the panel produced by the company and to develop a time study database which
will be used as a single source of reference by the company as well as to establish
cycle time for process. The effective stop watch time study method resulted in the
development of standard time database for further process improvement of the
project.
Marovic Ivan et.al.81
in their study, ‘Application of Chronometry Method
towards Calculation of Regulation’, focused on application of snap back chronometry
method which is one of the time study methods, to cyclic construction machine for the
process of loading material with hydraulic excavator into transport vehicle. The
snapback requires a stopwatch to measure the time at the end of work operation. The
55
objective of the study was to compare the standard time of cyclic construction
machine determined in realistic conditions by application of snapback chronometry
method to the calculation of regulation based on standard methodology. The result
showed that regulation that was calculated by standard methodology was 30 percent
higher than the regulation determined by snapback method. The study tried to identify
the gap as time study method are designed to measure work in ideal surrounding,
whereas, construction sites are far from the ideal. The study also mentioned drawback
associated with time study by mentioning time study as subjective method that relies
heavily on experience of the time study analyst that can results in inaccuracy of output
Deshpande Chaitanya82
in his study titled, ‘Study of Supply Chain
management of Skoda Auto’, has studied in detail the complete supply chain process
of Skoda Auto India Private Limited, Aurangabad. The study shows the process of
supply chain right from the supplier in MB to the end customer. It includes the
material and information flow of the entire supply chain. Information flow from
mother plant in MB according to the production plan, MPO, BOM/ECN, logistic
planning, unloading, stores, final product, dispatch to dealers and customer care
process was studied in detail. The study ends with the suggestion in several areas to
improve supply chain at Skoda Auto India Private Limited.
In the study, ‘Measuring Competitiveness and Labour Productivity in
Cambodia’s Garment Industry’, published by USAID83
, discusses about the scope to
increase labour productivity through improved management systems and training. The
main purpose of the report is to highlight strategies to improve cambodia’s garment
industry and at the same time to maintain labour standards. The research study
mentions the strength and weakness of cambodia’s garment manufacturers by
comparing it with other garment industries elsewhere. The econometric analysis of
determinants of labour productivity in sample factories was conducted to arrive at the
results. The findings showed wide variation in degree of technological and managerial
sophistication. Only 7 percent of the surveyed industries can be considered as world
class enterprises whereas rest have either potential to upgrade or are lagging far
behind the global competition. The study found that lack of training along with weak
capability of midlevel managers that resulted in poor understanding of optimal work
56
flow. The study focuses on need for technical and managerial training to most of the
factories with the help of sufficient interest, efforts and resources. This can improve
the productivity of Cambodia garment industry upto 15 to 20 Percent.
Best Tom84
in his study, ‘Work Measurement in Skilled Labour Environment’,
highlights the social and technical barriers associated with the traditional time study,
or process of measuring the labour with stopwatch time study method. The study
shows the modern work measurement techniques such as MTM which overcomes the
barriers associated with the traditional time study method. To get accurate and quicker
results the labours should be trained and skilled employees should be able to measure
their own work. The study concludes that traditional time study method should be
avoided and effective modern methods should be adopted by industries to measure the
work
H.B.Maynard and Company Inc85
is international consulting, software, and
training business dedicated to providing innovative solutions to improve workforce
performance and eliminate waste. Below case studies represent solution implemented
by Maynard Inc. by application of MOST.
1) Lithonia Lighting is the largest manufacturer of lighting equipment for
commercial, industrial, outdoor and residential applications in North America. A
division of Acuity Brands, the company has 15 manufacturing facilities in the
U.S., Canada and Mexico. Lithonia Lighting wanted to improve profitability in its
manufacturing operations. The company had very good metrics for managing
plant and assembly operations. The problem was that each facility used different
methodologies for standards development and line balancing. While these
techniques had resulted in productivity gains, management believed more
significant and consistent results could be achieved using a proven, consistent
methodology. The goal was to create a manufacturing platform to ensure that
product costs were the same at each facility. It was recommended to develop
standard data and engineered standards to provide a consistent methodology to
measure plant productivity. MOST system was used to identify each task
performed on an assembly line and the amount of time taken to complete each
57
task. From this information, best methods and standard practices were developed
that would be implemented across all manufacturing facilities. Also, inputs from
the individuals working on the assembly line contributed to productivity
improvement as they are the real experts. Through the improvement initiative,
productivity increased significantly at all three plants. Lithonia saw productivity
improve by 25 percent at its Georgia facility, by 20 percent in its Ohio plant, and
by 15 percent in its Indiana facility. An overall cost was reduced by 20 percent
among the three plants. Speed at which the savings were achieved was also very
high. In one year about five years worth of work was accomplished. Thus,
Lithonia changed not only the technical side of its manufacturing process, but also
the company culture by applying MOST standard practices.
2) Cardinal Health, Inc. is a leading provider of products and services supporting the
health-care industry. Cardinal Health companies develop, manufacture package
and market products for patient care; develop drug-delivery technologies;
distribute pharmaceuticals, medical-surgical and laboratory supplies; and offer
consulting and other services that improve quality and efficiency in health care.
Since 1993, Cardinal Health’s Medical Products and Services Division has
manufactured modules that make picking supplies for a procedure faster, easier
and more accurate, allowing hospitals to improve patient care while reducing
labor costs and supply waste. Each Procedure Based Delivery System® (PBDS)
module provides a collection of supplies that are essential to specific surgical
procedures, with a majority of supplies for one procedure contained in a pre-
assembled case. However, in the late 1990s the healthcare industry was
bombarded with several issues, causing hospitals to re-evaluate their budgets and
spending habits. Cardinal Health knew that it was necessary to establish
quantifiable evidence to demonstrate how the PBDS program would positively
influence a hospital’s bottom line. The goal was to quantify and validate the labor
savings. In order to do this, it was necessary to analyze the price of supply items
sold in bulk and the cost of labor involved in preparing for a procedure following
the traditional pick list methods and compares that to necessary PBDS labor. The
resulting savings would be used to help sell PBDS to hospitals. The MOST
58
allowed Cardinal Health to identify the paid labor hours that the PBDS program
would eliminate from a hospital’s operating budget. MOST is a revolutionary
work measurement tool designed to simplify and speed up the process of setting
engineered time standards. MOST focuses on the amount of time it takes to
complete specified activities, with standard method description formats created for
each sequence model. Once the data was compiled, a MOST database of the
specific tasks was developed that were affected by the PBDS program. This
allowed Logistics Managers to accurately assess the paid labor impact the PBDS
program had on the surgical supply chain, and gave them the ability to quantify
this impact into a solid cost savings. The data demonstrated that PBDS modules
reduced the surgical case pick from 18-25 minutes to less than five minutes per
procedure. Fewer picks resulted in less labor and fewer errors as well as less user
administration, ordering and tracking. Logistics Managers were also able to
determine a cost savings in the time necessary to prepare the back table in the
surgical suite. What once took a Circulating Nurse 12-15 minutes to accomplish
now dropped to less than five minutes for each procedure using a PBDS module.
Because many items in a PBDS module are sterilized and enclosed in one pouch,
much less time was needed to open and arrange the items. Thus, Applying MOST
Cardinal Health was able to partner with its customers, assisting them in reducing
labor costs, enhancing efficiency in the OR and ultimately improving patient care.
3) Inkorus Company for one of its client was able to achieve cost savings by
application of MOST. The client was one of the leading manufacturing firms.
Firm was facing problem of higher manpower costs for it manufacturing facility.
The goal was to achieve reduction in manpower cost for manufacturing facility.
After problem analysis it was observed that there was improper work distribution,
poor manpower planning, roles and responsibilities of individuals were not
defined properly. MOST was applied to measure work in direct areas viz.
Machining lines, Assembly lines, Painting, Fabrication, Welding, Packaging &
Indirect areas of stores, accounts & other clerical work at the site. This resulted to
streamline the process and division of individual roles and responsibilities. The
end result was that client was able to achieve cost reduction of around 10%.
59
4) Dana Corporation was successful in improving productivity of the process by
implementing standard process practices. Dana Corporation is one of the world's
largest manufacturer and suppliers of components, modules, and complete
systems to a wide variety of car makers. Dana’s driveshaft component
manufacturing plant in Pottstown, Pennsylvania, produces six product lines,
including a variety of bearings, yokes and shafts. The plant’s primary operations
include heavy machinery, testing and assembly. The goal was to implement new
productivity standards in order to better estimate manufacturing product costs and
to gain higher operational benefit. New standards would help the plant to more
accurately estimate costs, reduce product costs and improve its equipment and
labor capacities. With the guidance of consulting company, Dana Corporation
successfully communicated and educated its employees about the implementation
of new standards as it was essential to include the union throughout the entire
process. Analysis of the work performed in the plant’s 11 departments was
performed. Existing work conditions, layouts and work methods were reviewed to
serve as the basis to develop new standards. Current work methods were evaluated
identified and the best method for each task was documented. The best methods
for each task were measured by application of MOST. The technical team
developed, validated and documented the standards data, which defined employee
responsibilities for each task. As standards were being developed, employees
discovered more efficient ways to perform their jobs. To increase efficiency, work
layouts were redesigned so employees could easily access equipment. The layout
changes helped employees’ complete work more quickly and improved
ergonomics and plant safety. Savings were also achieved on product changeovers
which helped to save processing time and in turn saved money. In addition to cost
savings, Dana has realized several operational benefits as company can now more
accurately plan and schedule labor and improve product throughput. This end
result improved productivity by 15 – 20%.
5) Ashworth, Inc. achieved operational efficiencies in its distribution center as
management team believed the distribution center could benefit from consistent
methods, leading to increased productivity. Ashworth, Inc. is a leading designer of
60
men’s and women’s golf-inspired sportswear. The improvement project had four
major objectives: (i)Improve output by 25 percent (ii) Reduce overtime costs (iii)
Reduce the labor cost per unit (iv) Maintain or improve quality levels. To meet
these goals, Maynard provided the company with an employee communication
plan and trained key teams of employees to develop and evaluate Best Methods
and Engineered Standards. Opportunities were identified to simplify work and
reduce the time needed to perform operations. Using MOST work measurement
system, Ashworth gauged best method ideas to determine which methods were
most efficient to accomplish more work in the same amount of time in the Fold
and Bag, Scan and Box, and Embroidery areas. The standardization of these
methods provided a baseline for measuring performance, simplified the training
process for new hires and eliminated inconsistent processes that reduced
productivity. Many best methods ideas provided by Ashworth employees helped
to increase efficiencies and improve productivity. With Best Methods in place,
data was created to develop Engineered Standards that involved measuring the
amount of time it takes employees to complete a task, and using that data to create
the standard. After implementing Best Methods and Workforce Training, the
garments per operator hour increased by nearly 35 percent, decreasing labor costs
by 27 percent. The results nearly doubled the project goal of a 20 percent increase
in garments per operator hour. At the same time, the quality and consistency of the
fold was raised across all stations. In the Scan and Box area, output increased by
15 percent, decreasing labor costs by 15 percent. There was 10% improvement in
the Embroidery area. Thus, with new standards and a new culture in place,
Ashworth improved productivity and paved the way for further improvements.
2.7 Research gaps in earlier studies:
1. Lot of studies are carried out on general productivity improvement techniques
particularly, using Japanese productivity improvement techniques but least
research studies are conducted on method study using MOST work measurement
techniques.
61
2. Various researchers attempted to study productivity improvement with respect to
optimization of materials, specially using EOQ. However, productivity
improvement through application of MOST for material and labour optimization
is not addressed by researchers.
3. Lot of literature is available on optimization of human resource by implementing
of various productivity techniques but MOST application for effective human
resource study is not very common among researchers.
4. Work measurement literature review shows that various experts have emphasized
on the work related improvements majorly till 1930. The attention towards
improvement in work related improvement techniques decreased further till
Second World War. After Second World War outlook of experts and
manufacturers has changed completely as major focus shifted towards
productivity improvement in terms of increasing output rather than quality of the
product. Improvement in Work measurement related techniques was just limited
to time study method till MOST came into development. Hence, less literature
review is available on MOST work measurement technique.
5. As per productivity improvement literature studies, Japanese productivity
improvement techniques are largely practiced and implemented worldwide,
whereas, work measurement studies to improve productivity specifically related to
MOST technique are comparatively less practiced.
6. Literature review on either time study practice or MOST practice is performed
individually, but no study shows the comparison of results for implementation of
time study and MOST work measurement technique.
62
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