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23-Ind-A2 Analysis and Design of Work · December 2018

Question 3 of 7: Multiple-Machine Assignment Cost, and Rating/Allowances in Stopwatch Time Study

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Notes on this paper

National Exams — December 2018 — 17-Ind-A2 Analysis and Design of Work. Three-hour, closed-book exam (approved Casio/Sharp calculator only); any five of the seven questions constitute a complete paper and only the first five answered in the answer book are marked — all seven are solved below for completeness.

Reference texts: Niebel & Freivalds, Niebel’s Methods, Standards, and Work Design (13th ed.) — operations analysis and process charting, principles of motion economy, multiple-machine assignment, stopwatch time study, performance rating and allowances, predetermined time systems (MTM/MOST), work sampling, and job evaluation / wage-incentive systems.

Question 3: Multiple-Machine Assignment Cost, and Rating/Allowances in Stopwatch Time Study (20 marks)

Question text not reproduced: the examination questions are © Engineers and Geoscientists BC. Open the official past paper (linked at the top of this page) to read the question, then follow the worked solution below.

Check — sub-part labelsThe marking-scheme table prints sub-parts (ii) and (iii) both labelled “(ii)”, and the question text labels them both “(iii)”; they are taken here in the question text's own (i)/(ii)/(iii) order.

(i) Expected Unit Cost — Operator Assigned Four Machines

This is a multiple-machine (interference) assignment problem of the type charted in Question 1(ii)/2(iii): the operator services each machine (loads/unloads/adjusts) for a fixed time, then the machine runs automatically while the operator moves on to the next machine.

Given.

Multiple-machine assignment data
QuantitySymbolValue
Operator rate$R_o$$12.00/hr
Machine rate$R_m$$20.00/hr
Average machine downtime$d$6 min per 60 min scheduled
Servicing (load/unload) time per unit$l$12 min
Machine running time per unit$m$45 min
Machines assigned$n$4

Find. The expected unit cost of output for the four-machine assignment.

Check: the exam gives machine downtime as a rate (“6 min per machine per hour”) rather than folding it directly into $l$ or $m$. It is treated here as an availability loss on the machine’s running time, read as 6 min of downtime per hour of machine running time and added to $m$ the same way the personal/fatigue/delay allowances of Question 4(i) are added to normal time: the effective running time per unit is $m_{eff}=m(1+d/60)=49.5$ min rather than the nominal 45 min (4.5 min of downtime in each 61.5-min cycle, i.e. 7.3% of elapsed time, not 10%). The exam does not say which hour it means, so state the assumption. If instead the 6 min is taken per clock hour (the machine is available 54 of every 60 min), the cycle becomes $T_c=(l+m)/(1-d/60)=57/0.9=63.33$ min, the cost per cycle $(63.33/60)(12+4\times20)=$ $97.11, and the unit cost $24.28/unit (about 3% higher). Either answer is acceptable when its assumption is stated.

Approach. Inflate the machine running time for downtime, find the theoretical break-even number of machines $n'=(l+m_{eff})/l$, confirm the assigned $n=4$ machines fall on the machine-limited side of that break-even point ($n\lt n'$), then price one full cycle (operator + all four machines) and divide by the units the cycle produces.

  1. Effective machine time including downtime. $m_{eff}=m\left(1+\dfrac{d}{60}\right)=45(1+0.10)=\boxed{49.5\text{ min}}$.
  2. Theoretical (break-even) number of machines. $n'=\dfrac{l+m_{eff}}{l}=\dfrac{12+49.5}{12}=\boxed{5.125\text{ machines}}$. Since the assigned $n=4\lt n'=5.125$, the machines are the fully-utilized resource (machine idle $=0$) and the operator carries the resulting idle time.
  3. Cycle time. With $n\lt n'$, cycle time equals one machine’s own load-plus-run time: $T_c=l+m_{eff}=12+49.5=\boxed{61.5\text{ min}}$, producing one finished unit from each of the 4 machines every cycle, i.e. 4 units per 61.5 min. Operator busy time per cycle $=nl=4(12)=48$ min, so operator idle time $=61.5-48=13.5$ min.
  4. Cost per cycle. Both the operator and all four machines are paid for the full cycle time, whether working or idle: $C_{op}=\dfrac{T_c}{60}R_o=\dfrac{61.5}{60}(12.00)=\$12.30$; $C_{mc}=n\dfrac{T_c}{60}R_m=4\left(\dfrac{61.5}{60}\right)(20.00)=\$82.00$. Total cost per cycle $=12.30+82.00=\boxed{\$94.30}$.
  5. Unit cost. $\text{Unit cost}=\dfrac{\text{Cost per cycle}}{\text{Units per cycle}}=\dfrac{94.30}{4}=\boxed{\$23.575/\text{unit}}$.
Question 3(i) — final results
QuantityValue
Effective machine time, $m_{eff}$49.5 min
Break-even machine count, $n'$5.125 (machine-limited at $n=4$)
Cycle time, $T_c$61.5 min (4 units/cycle)
Operator idle time per cycle13.5 min (machine idle = 0)
Cost per cycle$94.30
Expected unit cost$23.575/unit (running-hour downtime reading; $24.28 on the clock-hour reading)

(ii) Why Performance Rating and Allowances Matter in Stopwatch Time Study

A stopwatch records only the OBSERVED time of whichever operator happens to be on the job at the moment of the study, at whatever pace that individual actually worked — a mixture of true task content and the observed operator’s personal speed, skill, effort and any watch-consciousness distortion. Performance rating is the mechanism that removes the operator-specific component: the analyst judges the observed pace against an internalized concept of “100% normal” (a standard, sustainable, well-trained pace) and multiplies the observed time by that rating to obtain a normal time that is, in principle, independent of which individual was timed. Without rating, a standard set from a fast operator would be unachievable by an average worker, and one set from a slow operator would pay a premium for ordinary performance — either error destroys the fairness and the incentive value of the standard.

Allowances matter for a complementary reason: even a perfectly rated normal time describes only the pure work content of the cycle, with the operator working continuously at a sustainable pace and nothing else happening. In reality operators need personal time (washroom, water), experience unavoidable delays (waiting on material, minor equipment stoppages) beyond their control, and accumulate fatigue that a sustainable pace cannot fully absorb over a full shift. Allowances add a percentage for each of these categories so the resulting standard time is one a worker can meet, shift after shift, without being either impossibly rushed or systematically over-paid — exactly the personal/fatigue/delay allowances applied in Question 4(i). Rating and allowances are therefore the two corrections that turn a raw stopwatch reading, tied to one person on one day, into a defensible, repeatable standard.

(iii) Overcoming the Problems of Rating and Allowances in Industry

Because performance rating is a subjective judgement, industry has developed several complementary approaches to control and reduce its error rather than eliminate the judgement entirely: (1) rating training and certification — analysts practice on rating films of known, independently verified paces (often via a rating clinic/synthetic-film program) until their individual ratings converge within a tight tolerance of the accepted value, and are periodically re-certified; (2) group/consensus rating — averaging the independent ratings of two or more trained analysts on the same observation reduces the effect of any one analyst’s bias; (3) predetermined motion-time systems (MTM, MOST — Question 5) bypass subjective rating altogether by assigning a fixed time to each basic motion from motion-picture studies of many experienced operators, so the resulting normal time carries no analyst-to-analyst variation; (4) statistical control of rating consistency — plotting an analyst’s ratings over time (or against a reference standard) on a control chart to detect drift toward looseness before it contaminates new standards; and (5) for allowances specifically, replacing a single blanket percentage with empirically measured allowances from work sampling (Question 6), which observes actual personal/delay/fatigue time directly across many random instants rather than assuming a fixed traditional percentage.