13.8 Work Measurement

Work measurement, like many other performance measurement tools is a major element of scientific management or Taylorism. It's roots come from time (Frederick Taylor) and motion (Frank and Lillian Gilbreth) studies that sprang up in the early days of the industrial revolution as managers attempted to understand, measure, and improve factory floor performance. Time studies looked at establishing standard times for work activities. Motion studies looked at the processes or motions used to conduct work methods. These two techniques eventually became integrated into time and motion studies.

A Work Measurement System evolved from time and motion studies and is an industrial engineering term used to describe a technique for establishing how much time it should take to complete a task or series of tasks that has well defined work content. Work measurement is designed to:

• Analyze the touch labor content of an operation;
• Establish labor standards for that operation;
• Measure and analyze variances from those standards; and
• Continuously improve both the operation and the labor standards used in that operation.

Work measurement and the reporting of labor performance are not considered ends in themselves, but a means to more effective management. When properly understood and used by management, the benefits described in Table 13-1 typically accrue from an effective WMS.

Table 13-1 Benefits of Work Measurement

Work measurement within the DOD is a system often used to measure and control the time required to perform production tasks at contractor facilities or maintenance, repair and overhaul tasks at depots. Work measurement is an important tool which can be of great value in cost estimating, production planning, and contract management. A work measurement system uses one of two types of labor standards in most phases of the manufacturing operation (engineered standards and non-engineered standards). A labor standard describes the time allowed for a normally skilled or qualified operator following a prescribed method, working at a normal level of effort, to complete a defined task with acceptable quality.

• An engineered standard is one established using a recognized technique, such as time and motion study, predetermined time system, standard data, or work sampling to derive to least 90 percent of the total time associated with the labor effort covered by the standard.
• Non-engineered standard are those not meeting the above criteria and are usually determined by estimates or based on historical data.

An engineered standard is composed of three components or elements: leveled time; a personal, fatigue, and delay (PF&D) allowance; and any applicable special allowances. Figure 13-7 depicts some of the factors that should be considered in each element of the engineered standard as it is developed.

Figure 13-7 Work Measurement Components

Leveled time is the time that a worker of average skill, making an average effort, under average conditions, would take to complete the required task. After the leveled time is developed, estimators must consider a personal, fatigue, and delay (PF&D) allowance. Be careful when contractors use predetermined time systems. Some predetermined time systems include a partial or complete allowance for PF&D. If the contractor uses such standards, additional PF&D consideration may not be appropriate. Any proposed special allowance must be supported by detailed engineering analysis. An appropriate study should be conducted in each shop or functional area to ascertain any requirement for a separate delay allowance. The analyst should assure that there is no duplication between cycle time elements and allowance elements and that the Special Allowance does not become a dumping ground for operation activity that is not an integral part of shop work load.

Standards represent goals for efficient operation. Tasks are rarely completed in the allowed standard time. Work Measurement Systems commonly use realization or efficiency factors to evaluate how the actual time required to complete a task compares with the standard time for that task. Analysts can then use these measures to identify tasks that require special analysis to identify and correct inefficient operations.

Work measurement standards provide information on what it should cost to complete an operation or series of operations in product production. Managers can use this information to identify areas requiring particular management emphasis and focus on improvements in productivity. For each standard, offerors should be required to provide information on internal analyses of the variance between the actual time required to complete the work and the standard time to determine the causes for the variance and identify ways of managing performance improvement.

Variance analysis should identify, categorize, and develop plans to control all variances from standard. Plans will typically concentrate on the operations with the largest variances from standard, because these operations present the greatest opportunity for cost reduction.

Contractors should consider the use of labor standards whenever contractor employees will be performing the same tasks repetitively over an extended period of time. Labor standard development requires extensive detailed effort. The time and cost required for standards development are prohibitive unless the task will be performed repetitively. On the other hand, when an operation will be performed repetitively, the cost visibility provided by labor standards permits detailed cost evaluation and control that can result in significant savings to the government. To be of real value, labor standards must be considered in making key management decisions (e.g., budgeting, estimating, production planning, and performance evaluation).