Increase Manufacturing Through-Put with Time and Motion Standard Data:



Develop incentive based labor standard data to increase efficiency 50% and for use to estimate labor cost for changes to existing and new product introduction.

1. Define parameters of standard data coverage such as machine capability, workplace layout, crew size, material specificationscovered in the data, exceptions to data  coverage.
2. Observe operations and establish standard times using predetermined time standards or classic stopwatch time and motion study to
   determine the constant and variable elements of work.
3. Use linear regression to establish time value formulas for ease of application.
   for variable elements based on variation of weight, size or other variable.
4. Define different classes of work from the linear regression analysis.
5. Identify outliers and their causes and decide if causes can be corrected and if not handle as special rates if necessary.
6. Establish unavoidable delay allowance as a
   percent of work using three to five all-day studies observing and recording
   reasons for delays.

                        a. Study unavoidable delays to determine better methods to   reduce or 

                            eliminate them.

                b. Record avoidable delays to define areas of process improvement.

Participation

1. Report to operators and management on avoidable delays for use to eliminate their occurrence.
2. Define acceptable quality levels and rework procedure for deducting incentive earnings for producing poor quality work,
3. Establish easy-to-use form for future clerical and/or electronic application of standard data based on defined algorithms.
4. Develop standard form to track output including clear definition of downtime activities not covered by the standards and their necessary approvals

a. Elements not included in the unavoidable delay allowance

b. Examples include: machine breakdown, out of or waiting on material, meetings and clean-up.

Test the Data

1. Test data for application, accurate measurement output and resultant process improvement thru reduced labor cost. Use several
   weeks of actual production after methods improvements have stabalized.
2. Meet with operators and management to explain
   the standard data application, define elements included and not included,
   explain how production is reported.

a. All production sheets are reviewed and approved/corrected by direct supervision.

Maintain Standards

1. Maintain the standards by increasing or reducing them for process changes due to equipment speeds, fixture changes and all other process changes (any change +/- 3-5%).

a. Make periodic reviews of the processes to determine any shift in the process.

b. This is fair to the operators as well as the company as equipment gets older and may
slow down as well as process improvements that are introduced

Share the Gains

1. Pay operators an incentive for performing over 100% baseline.
   1. An operator works 30% over the 100% level would be paid a bonus of 30% greater than their base rate.
   2. If the base rate is $8.00 per hour the bonus is 30% more than base or $2.40 bonus per hour or a total of $10.40 per hour.

Benefits

1. This does not include additional benefits of: less overtime, additional floorspace for larger workforce, additional equipment and work stations.

Summary