Om Module III
Om Module III
Module III: Work Study, Time and Method Study, Definition- Importance-Aims and Procedure-Implications on productivity-Work
measurement- Work Sampling-work Environment- Industrial Safety- Value Analysis.
WORK DESIGN
Work design is a systematic investigation of
METHOD STUDY
WORK MEASUREMENT
maintain
RESULTING IN HIGHER
PRODUCTIVITY
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
Method Study: Is the systematic recording and critical examination of existing and
proposed ways of doing work as to develop / apply easier/ more effective methods and
to reduce costs. It investigates how jobs are done and how the method of doing them
can be improved.
Work Measurement: Is application of techniques designed to establish the time for a
qualified worker to carry out a specified job at a defined level of performance. It tries to
estimate how long jobs should take once method is decided.
Basic Work Study Procedure
Work study consists of eight basic steps, some of which are common to both method
Study and Work measurement.
Sl
No.
1
2
3
4
5
6
7
8
Basic Step
Method Study
Work Measurement
SELECT
RECORD
EXAMINE
DEVELOP
MEASURE
DEFINE
INSTALL
MAINTAIN
9
9
9
9
-
9
9
9
9
9
-
9
9
Thus, method study has six steps ( SREDIM will help you remember this)
1. SELECT : The job to be studied.
2. RECORD: How the job is performed right now
3. EXAMINE: The existing method critically.
4. DEVELOP: An improved method
5. INSTALL: The improved method
6. MAINTAIN: It in practice.
Module III
Technical considerations
Human considerations
Charting Symbols
Record facts
relating to the
existing method
Charting Conventions
Examine facts
critically but
impartially
Purpose
Place
Sequence
Person
Means
Develop
Alternatives to the
existing method
Module III
I
c. Huma
an conside
eration: Workers
W
com
mplaining of fatigue, Poor mo
orale
amon
ng the workkers, Repea
ated cases of accidentts and healtth hazards.
2. RECORDIN
R
G OF FAC
CTS: Systematic reccording is the most crucial ste
ep in
m
method
improvement. Long descrriptive reco
ording has its limitation
ns and hence is
not recomm
mended forr use in method
m
stud
dy. Instead
d five symbols and eight
e
charting con
nventions are used to record the facts relate
ed to the job
b under study is
used.
UNIVER
RSAL
AC
CTIVITY
ACTIVITY
Y DESCRIP
PTION
OP
PERATION
WORKING
G ON A JOB TO ADD SO
OME
SYMBO
OL
VALUE. IT
T INCLUDE
ES CHANG
GE OF SHA
APE,
CHARACT
TERISTICS
S
PH
HYSICAL
OR
CHEMICA
AL), ASSEM
MBLY ETC
INS
SPECTION
CHECKIN
NG THE PR
RODUCT FOR
F
QUAL
LITY
AND
CONF
FORMANC
CE
PREDETE
ERMINED
TO
SPECIF
FIED
CHARACT
TERISTICS
S.
STORAGE
KEEPING
G THE PR
RODUCT AT A PREP
DECIDED
D AND SAFE PLACE
TRANSPORT
TATION
CHANGIN
NG THE PL
LACE OF THE PRODU
UCT
FROM ON
NE POINT TO
T ANOTH
HER
Operations Management
M
Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SC
CMS Cochin
Module III
I
UNIVER
RSAL
AC
CTIVITY
ACTIVITY
Y DESCRIP
PTION
DE
ELAY
SOMETIM
MES, THE PRODUCT
P
OR MACH
HINE
SYMBO
OL
HAS TO WAIT
W
FOR
R NEXT OP
PERATION OR
NEXT JOB
B.
Charting
g Symbols
Charting
g conventio
ons concern the com
mposition of
o charts, reject rew
work, repetition,
change of state, introduction
n of new material, combined
c
e
events
and
d numberin
ng of
events. The docum
ment on which
w
details of the process
p
are
e recorded
d by the above
referred symbols and conve
entions is called cha
art. Flow process chart,
c
Multiple
activity charts, Trravel chartss, String dia
agrams etcc are some of the examples of ch
harts
used in method stu
udy. ( Detailed descrip
ption of Flo
ow process chart and multiple acctivity
chart givven at the end
e of this section)
s
CRITICA
AL EXAMIN
NATION: Critical
C
exam
mination aim
ms to analyse the faccts and the
ereby
give rise
e to alternatives which
h form the basis
b
of sellection an developmen
d
nt of easierr and
effective
e methods
s. Critical examinatio
on is cond
ducted thrrough a systematic
s
and
methodical questio
oning processs, Each acctivity recorrded in the chart, whetther it relate
es to
processing, or insp
pection or material
m
han
ndling or to any other aspect,
a
is picked
p
up on
ne at
a
is exa
amined min
nutely. The questionin
ng process is conside
ered underr five
a time and
major he
eads, name
ely the purp
pose, the place,
p
the se
equence, th
he person and
a the me
eans.
The fivve aspects
s in criticcal examin
nations are referred
d to as five goverrning
considerrations.
DEVELO
OPMENT AND
A
SELEC
CTION: De
evelopmentt and selecction stage concerns short
s
listing off ideas generated at th
he critical examination
e
n stage, tessting each short
s
listed idea
for its te
echnical an
nd economiic feasibilityy and making selectio
on among the
t
alterna
atives
wheneve
er choice exists.
e
Vario
ous techniques availab
ble for the developmen
d
nt and selection
Operations Management
M
Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SC
CMS Cochin
Module III
purposes are: Cost benefit analysis, break even analysis, investment analysis, and
critical path analysis.
INSTALLATION: Or implementation of the proposed method involves preparation of the
project report on recommendation, making an oral presentation to the top management,
securing the approval of the decision maker, assisting line management during
implementation, arranging and training of workmen and getting jobs ( operations)
retimed after implementation.
MAINTENANCE: Maintenance phase is the follow up phase after the implementation
which serves as the monitoring and control mechanism. It helps to ensure that revised
methods are set firmly in concrete and workmen do not revert back to old methods.
FLOW PROCESS CHARTS
Flow process chart is a chart which sets out the sequence of flow of work of a product,
or any part of it through the section or department or factory by recording the events
under review using appropriate symbols. It gives a detailed picture of the process by
showing all the activities in sequence. A single flow process chart refers to only
activities of the particular subject under study. If the subject in the chart is men then only
the activities of men is recorded in a single chart, if the subject is material only the
activities pertaining to the material is recorded and in case the subject is machine only
activities of the equipment are recorded in a single chart. This we have Men type,
Material type and Machine type flow charts.
Module III
An illustration of Material type process flow chart is shown below
Sl. Activity
No.
1
Lying in ware house
2
Moves to Drilling machine
3
4
5
6
7
8
Remark
Material
handling
used
for 25 mins
A multiple activity chart consists of bars ( columns) placed against a common time
scale. One separate bar is allotted for each subject ( man or machine) and activities
related to the subjects are represented in this bar. Each bar is further split into three
columns: one bigger column to record the description of activities of the subject and two
small columns to record time and the state of working or non working ( symbol). The
columns are placed against a common time scale which starts with zero and terminates
at cycle time of the job. The task to be recorded is broken into smaller activities and
time for each activity is measured with the help of either a wrist watch or a stop watch.
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
Symbols used in making multiple activity chart representing working , (hatched bar) and
Idle ( Shaded bar).
IDLE
WORKING
Illustration of Multiple activity chart for the task of making organge juice
MAN
DESCRIPTION
0
Put peeled orange in mixie
Add sugar
Close lid
Push the start button of mixie
IDLE
IDLE
IDLE
Push stop button of mixie
Transfer orange juice to Glass
Insert straw in the glass
SUMMARY
Subject under study
MACHINE
TIME
0
5
10
15
20
25
30 - 170
175
180
185
190
Workman
Machine
IDLE
IDLE
IDLE
IDLE
IDLE
Mixie in operation
Mixie in operation
Mixie in operation
TIME
0
5
10
15
20
25
30 - 175
175
Precentage
worked
16%
84%
WORK MEASUREMENT
Work measurement a scientific method of fixing the standard time to perform a job. The
formal definitions is
Module III
Work measurement is the application of a set of techniques intended to establish the
time for a qualified operator to carry out a specified task under specified condition and
at a predefined level of performance.
The objectives ( uses) of Work measurement are
1. To assist in method study by comparison of times for alternative methods.
2. To prepare realistic schedules
3. As a basis for realistic and fair incentive schemes
4. To assist in the organization of labour by enabling a daily comparison to be made
between actual time and target time.
5. As a basis for labour budgeting and budgetary control systems.
6. To enable estimates to be prepared of future labour requirements and costs
Comparison between method Study and Work measurement
METHOD STUDY
Method study is a technique for reducing
work
by
eliminating
unnecessary
movements of materials or men
Method study substitutes good methods
for poor ones
Method study can reveal shortcomings of
design, materials and methods of
manufacture hence affects technical
people
WORK MEASUREMENT
Work measurement is concerned with
investigation reduction and subsequently
elimination of ineffective time.
Work measurement sets standard time for
carrying out a job
Work measurement is more likely to show
up the Management itself and the
behaviour of the workers.
Module III
Technique
Time study
Work sampling
PMTS
Analytical estimation
Synthetic Data
Suitable for
Short-cycle-repetitive jobs
Long
cycle
jobs/
Heterogeneous
operations( office, stores etc) / operations
involving team
Manual operations ( confined to one work
center)
Short cycle non repetitive jobs
Short cycle repetitive jobs
TIME STUDY
Time study is one of the techniques of work measurement to establish the time for a
qualified worker to carry out a specified task under specified condition and at the
defined level of performance.
Time study procedure
Basic steps in the time study procedure are
1. Select the task to be timed
2. Standardize the method
3. Select the operator to be studied
4. Record the details of the job
5. Break the task into elements
6. Measure the duration of each element and assess the pace of working ( Rating)
7. Establish the representative time of elements.
8. Extend observed time into normal time ( basic time)
9. Assess relaxation allowance and other allowances
10. Calculate standard time.
1. Select the job to be timed: If no work measurement studied have been conducted
in the past, selection of the job for time study should be made on the basis of
some priority. The clear choices are
a. Botttleneck operations on account of which subsequent operations are
held up.
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
b. Repetitive jobs involving longer runs and liable to run over and over again.
c. Job using a great deal of manual labour.
d. Job with longer cycle time
e. Sections frequently working on overtime to meet schedules.
2. Standardize the method: The accuracy of performance standards depends on
the correctness of method employed by the workmen. Wrong methods and
untrained workmen should never be timed.
3. Select the operator: Selection means choosing the operator among the many
doing the job under study. The person selected must be skilled and a steady
man. This is important because assessment of the operative speed or pace of
working is difficult and liable for mistakes if the operator is exceptionally faster or
slower or unskilled.
4. Record details: Absolutely nothing should be left to the memory. Necessary facts
must be recorded before commencing the study. The following details should be
recorded.
a. Identification details which include part name, part number, machine
speed, feed , materials operators name, observers name etc.
b. Work variations such as fit hardness of material, shape of job and others
which influence time of the job.
c. Conditions surrounding the job such as presence of disagreeable
elements such as dust, heat, smoke vibrations noise etc.
d. Working conditions to indicate posture ( standing, sitting, bending etc)
Weight handlie, protective clothing worn etc.
5. Break the task into elements : The task under work measurement is never timed
as a whole but part by part. This process of splitting an operation ( or task) into
parts is called job breakdown.
6. Measure the duration of each element an assess the pace of performance
(Performance rating) : Time study is a study with the help of stop watch. Each
element of the job is timed with the help of stop watch. While recording time fo
the element, operators spped of working is assessed and entered on the
observation sheet as rating. Rating is used as the levelling factor that converts
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
the observed time ( the worker working as any pace) of element to the normal
time ( Worker working at normal pace)
7. Establish the representative time of each element: Sufficient reading of the
element should be taken to arrive at the representative time of each element.
Once sufficient cycles have been time the representative time is calculated from
the observed data. Arithmetic mean is the most commonly used method of
selecting the representative time value.
8. Extend Observed time into normal time: The representative time established is
the time which an operator has taken while working at a certain pace. Since this
time may not be normal the observed time requires to be extended into normal
time. Normal time is the time the worker would consume if he works at a normal
pace. Normal time is also called the basic time.
%
9. Assess relaxation and other allowances: Sum of the normal times of the
elements give the normal time ( or the basic time ) of the job. But the same can
not be equated to the standard time. This is because nobody can work
continuously. Some additional time needs to be added to the normal time to
arrive at the standard time( the time to be allowed for the job). Additional time is
needed to
a. Provide operator an opportunity to attend to personal needs and recover
from fatigue ( RELAXATING ALLOWANCE)
b. Compensate the operator for the time lost due to simultaneous stoppage
of more than one machine being manned by him( INTERFERENCE
ALLOWANCE)
c. Compensate the operator for the time lost due to unavoidable delays and
interruptions ( CONTINGENCY ALLOWANCE)
d. Provide the workers an opportunity to increase their earnings ( POLICY
ALLOWANCE)
Allowances normally are picked from Standard books giving the table of
relaxation allowance published by International bodies like ILO.
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
2.
3.
4.
if
Allowances are expressed as a percentage of the normal time. If allowance is
given in units of time then
Module III
3. Fixing output standards : Output standards for shor-cycle-repetitive jobs can
economically be set with time study and allied work measurement techniques. This
technique is also used to measure the work load of certain category of workmen
such as personal assistants, stores clerks, crib clerks, maintenance crew and in
general those engage in heterogeneous activities.
4. Testing the accuracy of the output standards: Work sampling can also be used to
check the accuracy of output standards set by using other work measurement
techniques.
Advantages of Work Sampling over Time study
1. Less costly
2. Several operators can be simultaneously studied by a single observer
3. Can be studied for a long period of time which can reduce the chance of the
results being affected by short term fluctuations.
4. Not necessary to use trained observer ( unless performance sampling is
required)
5. WS can be interrupted any time without affecting the results
6. Technique more acceptable to workmen as mostly people generally dislike being
observed continuously for long period of time.
Disadvantage
1. Not economical for studying a single operator or machine or for studying
operators and machines located over wide areas.
2. Not as detailed as time study. Time study permits breakdown of activities and
delays than is possible with work sampling
3. Operator may change his or her work pattern as soon as he sees the observer in
which case the study result would be of Little value.
4. Since this is a statistical method (Not fully understood by management and
worker) acceptance would be less.
Work sampling Procedure
The following steps are generally followed while conducting a work sampling study
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
1. Define the problem
2. Estimate the proportion of time of the activity to the total time.
3. State the desired accuracy in the study, ie the confidence level and the accuracy
desired. Explanation on confidence level: 90% confidence level means 90 times
out of hundred the actual result would be same as the result predicted by the
study. Accuracy of 10 means the actual result would be predicted result plus or
minus 10 units.
4. Determine the specific time when each observation is to be made
5. At two or three intervals during the study period, re-compute the required
sample size by data collected and adjust number of observations if appropriate.
The formula for computing the sample size is
1
Module III
Position, Release, Disengage, Eye travel and eye focus etc are tabulated and published
as Motion time measurement tables or the MTM tables. The times are normally
expressed in Time measurement units or TMU, Where one TMU = 0.00001 hour.
When using this system, the analyst may either establish the sequence of motions for
the job by observation, or he may visualize what should take place and plan the best
sequence or motions. A chart using letter code is constructed for each category of
movement. Example R12ACD means Reach 12 inches, case A with change in direction.
Given this, the MTM tables can be reffered to and the relevant times calculated and
assigned to their sequence on the chart.
Advantages of PMTS
1. Evaluating time standards before the job is running
2. Comparing method alternatives with the minimum need for experimentation.
3. Aiding tool and product design.
4. Setting targets and motion pattern in operator training and so on.
Limitations
1. System can deal with only the manual content of the job.
2. Certain categories of movement are subject to restraint not catered for in the
data.
3. If certain article is to be moved with caution or a controlled movement is required
then it would be difficult to decide the sequence of finger movements that will act
on the job.
4. Analysis of the job into its very small constituents, calculate the times that apply,
find the necessary relaxation allowance ( RA) and add all the data to reach a
standard is very time consuming.
ANALYTICAL ESTIMATION
A work measurement technique whereby the time required to carryout elements
of a job at a defined level of performance is established from knowledge and
practical experience of the elements concerned
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
SYNTHESIS
A Work measurement technique for building up the time for a job at a defined
level of performance by totalling element times obtained previously from time
studies on other jobs containing the elements concerned, from synthetic data.
INDUSTRIAL SAFETY
Work Environment
Work environment is the place where work is performed office buildings, at the kitchen
table, inside a car or a truck, in a workshop etc are all examples of work environment.
The work environment consists of various factors related to physical facilities, noise,
ventilation, lighting, Social atmosphere. If the work environment is not good it is likely to
create fatigue, monotony and boredom.
Factors that affect work environment
1. Noise Pollution;
affects concentration and accuracy of work. The noise of roadside traffic, horns,
loud talking, shouting, arguments, slogan shouting, abnormal noise of machines
and vehicles creates noise pollution. Too much noise creates fatigue and the
quality, quantity of work will suffer. Efforts should be made to eradicate or
minimize the noise.
2. Lighting: As far as possible natural light should pas through windows, ventilators
for good work atmosphere. Only where specific more light is required the artificial
lighting to be provided. The effect of lighting( natural or artificial) should be
uniform through out the work place. Too much glare or pockets of darkness
should be carefully avoided.
3. Ventilation: It is necessary to have air circulation to avoid odour and discomfort.
Windows and Ventilation to be provided such that flow of natural air across is
possible. Where ever required ceiling fans, exhaust fans, pedestal fans to be
arranged for forced circulation of air. All this is essential to avoid fatigue to
employees.
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
4. Sociological: Friendly environment in a group of employees gives a sense of
belonging, identity and pride in a work place. Supervisors guidance and
leadership qualities improve the mental health condition of employees.
INDUSTRIAL SAFETY AND ITS IMPORTANCE
Industrial safety is the measures, techniques implement to reduce the risk of loss, injury
or danger to life, Property or environment in any industrial facility. Employee safety is
directly related to productivity, quality and consistency of quality. Safe working
conditions improve the morale of workers. This leads to sense of belongingness and
team work. Labour productivity is bound to be high wherever safety measures are well
taken care. Labour laws insist industry owners to take various safety measures. Despite
this some employees do not follow the laws as they see Safety as an expense and not
as a cost.
Safety is not an expense but a cost because
1. Safety saves on the Cost of medical aid and Insurance premium.
2. Safety reduces the amount of compensation that is payable to workmen.
3. Prevent loss to the organization
a. Due to stoppage of work
b. Machine breakdown.
c. Poor quality output.
4. Safety boosts the Employee Morale.
5. Leads to higher productivity
6. Results in happy individuals and happy Families.
Causes of Industrial Accidents
There are two main casuse of industrial accidents
1. Unsafe conditions
2. Unsafe acts
1. Unsafe conditions
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
The following is the list of some unsafe conditons
a. Not providing guards to moving parts like belts chains and wheels
b. Inadequate light, poor ventilation, in and around work place.
c. Moving cranes and trolleys having inherent problems of accidents
compared to other facilities. This creates more problems if layout is poor.
d. Poor house keeping, wrong storage of materials and congestion in
movement passages.
e. Not providing or not using safety gadget like safety shoes, aprons,
goggles, hand gloves, and helmets etc as per the work spot needs.
f. Unsafe conditions due to temperature, electrical circuit, chemical and
scrap storage.
g. Old outdated machineries giving frequent troubles.
h. Over loading of cranes, trolleys trucks beyond specified capacity
i.
Usage of poor quality or under rated capacity screws, nuts bolts bearing
gears etc.
j.
2. Unsafe acts
a. Working in higher speeds than specified and failure to use safety devices.
b. Operating new-type machinery without knowledge and training.
c. Unsafe and inconvenient posture while handling the materials and
machinery.
d. Talking, arguing, teasing, or harassing co workers thus distracting
attention from work.
e. Not wearing or using the safety attire for work.
f. Keeping materials scraps etc in employee passages.
g. Repairing, oiling, and greasing machinery when it is working.
h. Fatigue tiredness, working continuously without a break.
i. Casual way of working
j. Not observance of safety rules and regulations.
k. Not reporting problems on time to the management.
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
Remedial measures for safety
1. Safety Engineering and methods: Safety aspects to be taken care while installing
machineries, cranes and layout of factory to be such that movement of men and
materials are unhindered. Work space and setting to be such that adequate
space for movement of operator, tools space and material space is available.
2. Provision of guards: As per the factory rule it is compulsory to provide fence,
guards and put danger boards where moving parts like motor shafts, belts
pulleys are operative.
3. Material handling: Material handling is a major source of accidents due to
frequent movement. Proper training, lighting and minimum use of cranes during
night shift are some of the measures to be taken to prevent accidents.
4. Storage: Hazardous materials like industrial gases, inflammable liquids scrap
materials should be kept separately and safely.
5. Safety Device: Employees working near high temperature zones. Chemical areas
, fire zone etc must be provided with masks helmet apron gloves, goggles, ear
plugs etc as appropriate for safety.
6. Ergonomics: Natural, Physiological and anatomical approach of humans to be
adapted to work system, this helps to improve man-machine system of working.
7. Maintenance: Planned and preventive maintenance of all machineries and
handling equipments is of the essential factors to minimize accidents. The safety
officer of the company should periodically inspect the machines, vehicles and
handling equipments to ensure safer working.
8. Good House keeping: Discipline in keeping the materials and tools at right place
keeping the passages clean from scrap, wastes etc.
9. Top management Involvement: Top management concern and care of safety in
turn makes all the down line employees involved in safety care. The
management should formulate safety policy and arrange safety committees. The
committee should identify hazardous areas, accident zones and take remedial
measures. Proper records of all accidents should be maintained in each
department and when both management and employees combine effectively the
occurrence of accidents minimizes.
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
Module III
10. Safety Campaigns: The management and union can actively involve in safety
propaganda. One important activity is training of employees in usage of safety
devices, fire fighting methods, first aid methods. Films, seminars to be arranged
to give examples for better understanding of causes and losses.
11. Governments role: National safety Council (NSC) set up by the government
promotes safety awareness and conducts safety training. Sense of safety in
industry is promoted by setting up safety awards for industrial establishments for
good safety performance.
12. Factories acts 1948 lays down various practices and procedures to be followed
in industrial units for safety measures.
HAZARD
Hazard is a situation that posses a threat to life property or environment.
Types of Hazards
Physical
Pollution
Chemical
HAZARDS
Electrical
Biological
Mechanical
Module III
Physical Hazards
HEAT&
COLD
RADIATION
PHYSICAL
HAZARD
NOISE
PHYSICAL HAZARD
NOISE HAZARD
Noise causes
1. Physiological and Psychological health problems
2. High blood pressure
3. Sleep disorders
4. Hearing loss
5. Productivity loss
6. Memory loss
7. Panic attack
Operations Management Notes ( Pvt Circulation Only)
Compiled by Santhosh.S, Associate Professor, SCMS Cochin
FIREAND
EXPLOSION
Module III
8. Depression.
Prevention of Noise
1. Provide sound proof enclosures
2. Proper maintenance of machinery
3. Providing adequate distance between source and employees
4. Provide Personal protection devices
HEAT AND COLD HAZARD
Heat causes skin irritation, restlessness, irritation and anger. It can also lead to loss of
coordination. Similarly cold can lead to numbness, frost bite, sleepiness and joint pains.
Proper heating and cooling provisions can be provided in the work place to prevent this
hazard.
RADIATION HAZARD
Radiation can lead to cancer, skin irritation, loss of bodilty functions and can also lead to
long term genetic disorders. The hazard can best be controlled by housing the radiation
sources in shielded enclosures, provide periodic medical check up to employees likely
to be exposed to radiation. Providing lead aprons and shields as personal protection
devices.
FIRE AND EXPLOSION
The major causes of fire in industrial establishes is unauthorized smoking in factory
premises, sparking electrical fittings, leakage of explosive gases, defective machinery,
working without proper hot work permits.
BIOLOGICAL HAZARD
Can cause problem locally or by inhalation, or by ingestion.
Prevention
Module III
Management to provide
o First aid facilities
o Initial examinations
o Facility for vaccination
o Routine sanitation programmes
MECHANICAL HAZARD
Accidents are caused by unsafe conditions or unsafe acts.
( Refer to the section causes of Industrial accidents above)
ELECTRICAL HAZARDS
Caused by
Shocks, Sparkings, Fire, Wiring Faults.
Preventive Measures
Proper maintenance of electrical equipments
High voltage equipments should be properly enclosed and grounded
Good House keeping
Water should not be used for dousing electrical fires
Prevent workers from working on electrical equipments wearing wet clothes or aprons.
POLLUTION HAZARDS
Types: Air, Water, Thermal pollution, Sound pollution
Prevention:
Use proper ventilation, Air purifying equipments, Water treatment facility, Wet or dry
cooling towers, cooling ponds, Spray ponds etc.
VALUE ANALYSIS
Value Analysis is a management tool or technique, developed by Lawrence D. Miles in
1947, used to identify and eliminate unnecessary costs. While reducing or eliminating
cost it takes into account that there is no deterioration of quality parameters and tries to
fulfil the need,want, and desire of the customers.
There are various definitions for Value analysis
1. Value Analysis is an organized procedure for efficient identification or
unnecessary cost. ( Simple Definition)
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2. Value Analysis the study of the relationship of design, function and cost of any
product, material or service with the objective of reducing cost through
modification of design or material specification manufactured by more efficient
process, change in source of supply or possible elimination/ incorporation in a
related item.
3. Value analysis is defined as a process of systematic review that is applied to an
existing product design in order to compare the function of the product required
by the customer to meet their requirement at the lowest cost consistent with the
specified performance and reliability needed
The term Value analysis, Value engineering, value Assurance, and Value management
are often used interchangeably to indicate the technique to reduce cost without
hampering its quality or performance. However Value analysis is used when the object
of cost reduction is an existing product and Value engineering is generally used when
the techniques is applied to a new product.
Value analysis Existing product
Value Engineering New Product
Relevance or importance of Value Analysis Today:
Earlier industries earned or enhanced profit merely by modifying the selling price,
but now change in selling price needs to be effected by a systematic process of
cost reduction of products, service and system.
Customers, given the market situation today decide the price payable for a
product and are extremely critical of the quality of goods and services and also
demanding lowest cost.
Value engineering is the only concept which accepts these demands and does not
reduce cost of product services or systems by mere slashing of price heads, but
enhances their value through cost Avoidance and improvement of functions.
Value
The dictionary meaning of value are worth, Utility, and price. Economists define value
as the ration of exchange of commodities. Aristotle thought of seven types of values
1. Political value
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2. Social value
3. Economic Value
4. Religious value
5. Ethical value
6. Aesthetic Value
7. Judicial value
The value of an item varies from place to place. The value of a refrigerator will be
nothing if it is shited to Arctic region. Film cameras of yesteryears are worthless against
the digital cameras of today. So the value changes with changing environment and with
changing times.
Economic Value
The various components of Economic value are
1. Cost value: The cost value is the monetary unit required to product a product or
service. It consists of three basic elements: Material, Labour, Overhead.
2. Use Value: The monetary measure of the functional properties of a product or
service which reliably accomplishes the needs of the user, is the use value. The
use value is also called the function value. The use value can be improved either
by elimination /reduction of unnecessary functions or by addition of new
functions. Eg. Addition of one more head at the bottom of spanner improved its
use value.
3. Esteem value; The monetary sum that a user is willing to pay for the functionthose that provide prestige, appearance and/or other non quantifiable benefits, or
in other words delight the user, is the esteem value. This is also known as the
Aesthetic Value. It does not improve the performance but induces interest in the
user to own it. This value will help to market the product service or system. Eg.
Everybody possess a pen in order to make a mark. The gold capped pen also
performs the same function, but its special feature induce the interest of the
customer to own it.
4. Exchange Value: The exchange value, also known as the Market value, is the
monetary sum of the product, service or system at which it can be traded.
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Example is old commemorative stamp- The cost value of the stamp may be very
less but because of its uniqueness they can be traded at a very high cost.
Mathematical Model of Value
Value of a product is directly proportional to its Function and inversely proportional to
its cost.
Value
, Value =
Value =
( K=1)
On analysis of the equation, it can be concluded that Value can improve under the
following conditions
1. Enhancement of function when cost is kept constant
2. When function remains same, while the cost reduces
3. There is improvement in function and there is a reduction in cost
4. Function improves at a greater rate than the increase in cost.
To understand Value Analysis methodology you should be familiar with a few terms
used in VA.
Function
The purpose for which a product is created is called the function of the product. There
are 2 types of functions
1. Use function the purpose for which the customer needs the item is the use
function. The use function of a cup is to hold liquid. If the cup has a hole at the
bottom, the liquid will flow out and it will not be able to perform its function.
2. Sell function The function that fulfils the want of the customer is termed the sell
function. It is those features of the item that provide aesthetic appeal to the item
and help in selling the item.
Levels of functions
Functions are categorized into two levels
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1. Basic function or primary function The function for which the item has come
into existence. Eg. The basic function of a bulb is to provide light If that function
is eliminated there is no reason for the existence of bulb hence provide light is
the basic function of the bulb.
2. Secondary function- Are those functions which support the basic function. These
functions are generated because of the specific design or the process that is
adopted in order to achieve the basic function. To identify a secondary function,
eliminate this function from the product, if the component still exists, it is a
secondary function. Eg. Bulbs in addition to providing light provide heat . But
when the function of producing heat is eliminated, the component still exists.
Hence provide heat is a secondary function.
Cost
Cost id an important component in the mathematical model of value. Value engineering
is all about finding out unnecessary costs. To identify these elements, the product ,
service or system costs have to be transformed into the function cost. Because of the
specific design of the product service or system there exists a number of unnecessary
functions along with the basic and secondary functions. When the costs are all allocated
to all the functions, the elimination/ reduction of unnecessary functions will automatically
reduce the cost of product service or system and will therefore increase the value.
Worth
Worth is the minimum cost of achieving a function. Finding worth of a function is difficult
but is very important step in VA. The determination of worth is subjective issue and
varies from person to person. Also worth varies with the information available with the
team hence worth varies from team to team.
Example : finding the worth of a function
A. ITEM: A bone china plate ; Cost : Rs 200
Basic function : Hold food
Function cost : Rs 100
Alternate Item 1 : Stainless steel plate : Cost : Rs 100
Basic function : Hold food
Function cost : Rs 50
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Alternate item 2 : Paper Plate : Cost : Rs 15
Basic function : Hold food
Function cost : Rs 5
Alternate item 3: Leaf plate Cost Rs. 2
Basic Function : Hold food
Function Cost : Rs 1
Hence the worth of a bone china plate is Rs 1, Which is the lowest cost at which
the same basic function of Hold food can be accomplished
Techniques used in solving Value Analysis Problems
GENERAL TECHNIQUES
Brainstorming technique
Gordon technique
SPECIAL TECHNIQUES
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1. FCWA ; Function Cost worth analysis
Function cost worth analysis tool is a unique tool in Value Engineering
methodology. This tool helps the VE team to pinpoint the unnecessary cost areas
as well as the method of eliminating or reducing the same. It also indicates the
present situation and the idealistic situation the two ends of the scale. This acts
as a guide for the team to set their target The Steps in FCWA are as follows
STEP
1. The
product/sevice
/system
should
be
divided
into
components/
activities/procedures.
2. The functions of each components/ activity/ procedure should be defined in
two words- an active verb and a measurable noun. If there are more than one
function, then the different types of functions, that is basic and secondary
functions, should be identified
3. The cost of each components/activity /procedure have to be ascertained. If
there is a price, it has to be reduced to bring done the cost assuming a
reasonable percentage of profit over cost.
4. The cost of the component/activity/ procedure has to be transformed into
functions.
5. Ascertain the worth of the functions. While mentioning the worth, the team
should mention the method of achieving the worth.
6. Value gap = Existing cost of the function Worth, Value index = Existing cost
of function divided by Worth. Calculate the value gap / Value index.
7. Rank the value gap/ indices in descending order.
8. Team has to pinpoint the function where emphasis has to be given.
VALUE ENGINEERING JOB PLAN
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3. Function phase
4. Creative phase
5. Evaluation phase
6. Recommendation phase
7. Implementation phase
8. Audit Phase
1. ORIENTATION PHASE
This is also known as the general phase and the most demanding phase of a VA
job plan. It creates the right environment for successful VA. In this phase the
emphasis is placed on human interactions to seek co-operation of the team to
implement VA. Work is done on specifics, rather than on the generalities. The
resistance to change is overcome
2. INFORMATION PHASE
The Information phase is the back bone of of the whole exercise. There is certain
information that is very obvious and certain other information that may not be so
obvious yet very critical to the project. Those information that are not so obvious
should be collected from reliable sources. Other wise there could be sub optimal
solution or wrong conclusions.
It is well known that the more one knows about the existing conditions, the better
the alternatives would be. This is the phase where team members should put
their expertise together in order to get the information form the correct/ reliable
source.
3. FUNCTION PHASE
Function phase is the heart of the concept of VE. This particular phase
differentiates VE from all other cost reduction techniques. During this phase, the
team members should define the functions of the product, process or system.
The method used to describe the function is the two word method the functions
are defined in two words ; an active verb and a measurable noun.
Egs of Active Verbs : Absorb, Allow, Apply, Amplify, Bake, Change, Convey,
Compress, Cut, Create, Dry, Drive, Establish, Extrude, Form, Filter, Finish,
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Grind, Hold, Insulate, lift, Modify, Prevent, Provide, Restrict, Remove, Reduce,
Support, Store, Shape.
Measurable Nouns: Corrosion, current, Circuit, Damage, Energy, Electricity,
Force, Flow, Fluid, Heat, Insulation, Light, Liquid, Motion, Material, Protection,
Power, Spin, Weld, Waste, Weight etc.
This method of defining the function is done so that each member of the VE team
identically visualizes the function of the product, system process or system.
The four basic questions that should be asked about the product process or
system are:
a. What does it do?
b. What must it do?
c. What does it cost?
d. What must it cost?
What does it do? The team should find out the main function or the purpose of
the product process or system. The main idea is to transform the product process
or system to a function activity or procedure.
What must it do?- The team has to pinpoint the basic function of the product or
system as a whole as well as its component activity or procedure. At this stage
the various types of functions like required secondary functions, simultaneous
functions and one time functions are to be identified.
What does it cost? Product service or system always has some cost. The team
has to allocate the cost to the function activity or procedure.
What must it cost? What is the worth of the function? Worth is the least cost to
accomplish a function. The team should assign the worth of each function activity
or procedure. At the end of this phase the team should be aware of the functions
activities or procedures which have more value gap ( existing cost- worth)
4. CREATIVE PHASE
The creative phase divides the existing concept from the proposed concept. This
is the line where the existing project ends and the proposed one begins. This is
the time when the team dwells on the areas where there is potential for
improvement. The tools used are
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Brainstorming Technique
Gordon Technique
5. EVALUATION PHASE
During the creative phase the VE team comes up with the alternatives. This
phase of the job plan deals with the process which helps to find out the best
alternative. The processes have been given below
6. RECOMMENDATION PHASE
On the basis of evaluation the VE team should come out with their
recommendations. This can be done in two phases.
First the VE team should finalize their decision based on the evaluation matrix
and cost benefit analysis. Second the VE team has to present their
recommendation to the decision makers in the language that they understand. By
the language that they understand it is meant that Engineering language refers to
performance, product life , meeting the customers requirements etc, In
manufacturing the words that are used are build to drawing , On-time delivery In
etc, In the area of management the language used is return on sales, return on
investment etc. So the value engineer should learn the language of the listener
and use them effectively or else he will have to face non acceptance frustration
and anger.
7. IMPLEMENTATION PHASE
The acceptance of recommendation will have no meaning unless it is
implemented. Some times the decision maker may impose some conditions
before implementation. The conditions may be
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8. AUDIT PHASE
Normally this phase is not mentioned in most of the text books but in Indian
context this phase too is important. Two types of audit are necessary
Operational audit
Financial audit
Operational audit ensures that the value engineering change proposals have
been implemented and the benefits have started accruing. The financial audit
ensures that the company has started accruing the financial benefits and it
becomes part of the financial accounts that include both profit and loss
account as well as the balance sheet.