CHAPTER 2

REVIEW OF LITERATURE

Sr.No Title Page

No.

2.1 Introduction 27

2.2 Literature review on optimization of material 28

2.3 Literature review on optimization of Human

resources 33

2.4 Literature review on improvement of productivity 36

2.5 Literature review on work measurement 41

2.6 Literature review on Maynard Operation Sequence

Technique (MOST) 49

2.7 Research gaps in earlier studies 60

27

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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