Cost Estimation & Control

Work Measurement

Work Measurement: The Foundation of Accurate Cost Estimation and Control

In the realm of cost estimation and control, understanding the time required to complete specific tasks is crucial. Work measurement, a systematic approach to analyzing and quantifying labor requirements, serves as a vital tool in this process. It involves developing labor-time standards, which are benchmarks representing the time needed by a skilled worker to perform a particular task or group of tasks under defined conditions.

The Essence of Work Measurement

Work measurement delves into the intricacies of work processes, identifying the most efficient methods and establishing precise time allocations for each step. This process offers numerous benefits:

  • Accurate Cost Estimation: By accurately predicting labor hours, businesses can generate realistic cost estimates for projects, bids, and production runs, promoting profitability.
  • Effective Labor Control: Work standards act as a control mechanism, allowing for monitoring and improvement of worker productivity and efficiency.
  • Fairer Incentive Schemes: Labor-time standards form the basis for performance-based compensation schemes, ensuring that employees are fairly rewarded for their effort and output.
  • Enhanced Planning and Scheduling: Reliable work time estimates enable better project planning, resource allocation, and scheduling, leading to smoother operations.
  • Improved Productivity: By identifying bottlenecks and inefficiencies, work measurement helps to streamline processes and increase overall productivity.

Methods of Work Measurement

Several established techniques are commonly employed for work measurement:

  • Time Study: This traditional method involves observing a skilled worker performing a task multiple times, recording the time taken for each element, and analyzing the data to establish a standard time.
  • Work Sampling: This method involves observing a worker at random intervals throughout the day to capture a representative sample of their activities. This data is then used to calculate the percentage of time spent on different tasks and establish time standards.
  • Predetermined Time Systems (PTS): These systems utilize pre-established time values for basic work elements, such as reaching, grasping, and moving objects. These pre-determined values are then combined to estimate the time required for specific tasks.
  • Historical Data Analysis: Leveraging past records of completed work can provide valuable insights into time required for similar tasks. This method is most effective when past data is reliable and representative of current conditions.

Challenges and Considerations

While work measurement offers significant advantages, it's essential to address potential challenges:

  • Subjectivity: Time study and work sampling can be influenced by the observer's judgment and the worker's performance during the observation period.
  • Complexity: Establishing accurate time standards for complex tasks, involving multiple steps and variables, can be challenging.
  • Resistance to Change: Workers may resist changes in work methods introduced by work measurement, potentially affecting its effectiveness.

Conclusion

Work measurement is a critical component of effective cost estimation and control. By accurately quantifying labor requirements, it empowers businesses to make informed decisions, manage costs effectively, and ensure fair compensation for their employees. By choosing the appropriate work measurement techniques and addressing potential challenges, organizations can leverage this powerful tool to enhance efficiency, productivity, and profitability.


Test Your Knowledge

Work Measurement Quiz

Instructions: Choose the best answer for each question.

1. Which of the following is NOT a benefit of work measurement?

a) Accurate cost estimation

Answer

This is a benefit of work measurement.

b) Effective labor control

Answer

This is a benefit of work measurement.

c) Increased employee morale

Answer

While work measurement can contribute to a fair work environment, it's not directly focused on increasing employee morale.

d) Enhanced planning and scheduling

Answer

This is a benefit of work measurement.

2. What is the primary objective of work measurement?

a) To identify the most skilled workers in a company.

Answer

This is not the primary objective of work measurement.

b) To establish labor-time standards for specific tasks.

Answer

This is the primary objective of work measurement.

c) To eliminate all inefficiencies from work processes.

Answer

While work measurement aims to improve efficiency, it doesn't aim to eliminate all inefficiencies.

d) To increase worker productivity by setting unrealistic targets.

Answer

This is not a valid objective of work measurement.

3. Which of the following methods involves observing a worker at random intervals throughout the day?

a) Time Study

Answer

Time study involves continuous observation.

b) Work Sampling

Answer

This is the correct method.

c) Predetermined Time Systems (PTS)

Answer

PTS uses pre-established time values, not random observation.

d) Historical Data Analysis

Answer

Historical data analysis relies on past records, not real-time observation.

4. What is a potential challenge associated with work measurement?

a) The ability to establish clear and concise time standards.

Answer

While establishing clear time standards can be challenging, this is not a potential challenge specifically associated with work measurement.

b) Resistance to change from workers.

Answer

This is a potential challenge of work measurement.

c) The lack of reliable historical data for analysis.

Answer

This is a potential challenge of work measurement, specifically for historical data analysis.

d) All of the above.

Answer

This is the correct answer.

5. Which of the following best describes the role of work measurement in cost control?

a) It helps identify the most expensive tasks.

Answer

While work measurement can help identify tasks that consume more time and resources, it's not its primary role in cost control.

b) It allows for accurate prediction of labor costs.

Answer

This is the correct answer.

c) It ensures all tasks are completed within the shortest possible time.

Answer

While work measurement aims for efficiency, it doesn't always focus on completing tasks in the shortest time.

d) It eliminates all unnecessary costs associated with labor.

Answer

While work measurement helps to optimize labor costs, it doesn't eliminate all unnecessary costs.

Work Measurement Exercise

Scenario: A small manufacturing company produces custom-made wooden furniture. They are currently developing a new line of dining tables and want to estimate the time and cost required to produce each table.

Task: Using the information below, apply the concepts of work measurement to estimate the time required to build one dining table.

Information:

  • Tasks:
    • Cutting wood: 30 minutes
    • Sanding: 15 minutes
    • Assembly: 45 minutes
    • Finishing (staining, varnishing): 20 minutes
  • Method: Time study.
  • Observations: 5 observations were made of a skilled worker performing these tasks.
  • Average Times:
    • Cutting wood: 32 minutes
    • Sanding: 17 minutes
    • Assembly: 48 minutes
    • Finishing: 22 minutes

Exercise:

  1. Calculate the average time required for each task based on the observations.
  2. Consider the "allowance factor" for fatigue and personal needs, typically around 15% of the total work time.
  3. Calculate the standard time required to build one dining table.
  4. Discuss any potential challenges that might arise while applying work measurement in this scenario.

Exercise Correction

1. Average Time for Each Task: * Cutting wood: 32 minutes * Sanding: 17 minutes * Assembly: 48 minutes * Finishing: 22 minutes 2. Allowance Factor: * Total observed time: 32 + 17 + 48 + 22 = 119 minutes * Allowance factor: 119 minutes * 0.15 = 17.85 minutes 3. Standard Time: * Standard time: 119 minutes + 17.85 minutes = 136.85 minutes (approximately 2 hours and 17 minutes). 4. Potential Challenges: * **Variations in Wood Quality:** The time required for cutting and sanding might vary depending on the quality and hardness of the wood. * **Complexity of Designs:** If the table designs become more intricate, the assembly and finishing times may increase. * **Worker Skill Level:** Different workers may have varying levels of skill and efficiency, leading to inconsistencies in performance and time requirements. * **Subjectivity of Time Study:** The observer's judgment can influence the recorded times, potentially leading to biased results.


Books

  • Work Measurement by Ralph M. Barnes (This is a classic text covering fundamental concepts and techniques)
  • Work Measurement: A Practical Guide by James A. Taylor (Focuses on practical application and real-world examples)
  • Motion and Time Study by Marvin E. Mundel (Offers a detailed exploration of motion study and its role in work measurement)
  • Industrial Engineering: A Comprehensive Guide to Methods, Standards, and Applications by A.B. Windebank (A broad overview of industrial engineering, including work measurement)
  • Work Measurement: Principles, Techniques, and Applications by S.K. Goel (Covers various work measurement techniques and their applications in different industries)

Articles

  • "Work Measurement: An Overview" by R.A. Smith (A concise overview of the principles and techniques of work measurement)
  • "The Importance of Work Measurement in Modern Manufacturing" by K.J. Patel (Discusses the relevance of work measurement in today's competitive landscape)
  • "The Evolution of Work Measurement Techniques" by J.P. Moore (Explores the historical development and evolution of work measurement methods)
  • "Work Measurement and Productivity Improvement" by A.K. Gupta (Examines the link between work measurement and productivity enhancement)

Online Resources

  • ASME (American Society of Mechanical Engineers) - Offers resources and publications on work measurement and industrial engineering.
  • IIE (Institute of Industrial Engineers) - Provides information, training, and certification on work measurement and other industrial engineering topics.
  • NIST (National Institute of Standards and Technology) - Hosts a variety of resources on productivity, measurement, and engineering practices.

Search Tips

  • Use specific search terms like "work measurement techniques," "time study examples," or "work sampling application."
  • Include industry-specific terms (e.g., "work measurement in manufacturing," "work measurement in healthcare") to refine your search results.
  • Consider using advanced search operators like "site:" (to limit results to specific websites) or "filetype:" (to specify desired file formats).
  • Explore related terms like "motion study," "predetermined time systems," "labor standards," and "work simplification."

Techniques

Similar Terms
Cost Estimation & ControlContract & Scope ManagementPipeline ConstructionOil & Gas ProcessingHSE Management SystemsProject Planning & SchedulingOil & Gas Specific Terms
Most Viewed
Categories

Comments


No Comments
POST COMMENT
captcha
Back