The business world today is extremely fast-paced and constantly on the lookout for ways to improve productivity, remove unnecessary redundancies and ultimately enhance productivity. While maintaining cost effectiveness from day to day.
The time-study analysis was first introduced by Fredrick Taylor and Frank and Lilian Gilbreth early on in the 20th Century. It has emerged today as one of the most effective ways to improve productivity in an ideal workplace. It consists of the systematic observation, recording and analysis of the different work processes in the business place to establish time standards and give room for improvement (Taylor, 1911)
In this essay, we will discuss why a company should invest in time study analysis, the different benefits it is capable of offering in the increment of productivity levels, reduction of operation costs, improvement of the performance of the average worker and its aid in proper decision making.
In essence, we will demonstrate the relevance of the time-study analysis in the modern business world.
Why A Company Should Invest In A Time-Study Analysis
1. Improvement of Productivity Levels
Why a company should invest in time study analysis is because of the ability of the analysis to improve the overall productivity levels in the workplace. This technique facilitates workplaces, associations and organizations to identify the loopholes in the workplace which delay processes and possibly allow for redundancies that ultimately increase time consumption per unit task. Through an extensive study or analysis of time, the organization can effectively find out and target ways to significantly improve productivity of the workers and the equipment of work, among others.
In 1911, Taylor emphasized, “the primary and principal object of management should ideally be able to secure the maximum prosperity for the employer coupled with the maximum prosperity for each employee” (p.9) That is to say, the highest level of product is achieved through increased productivity.
If a company working room has few tools or materials, take, for instance, a few staples or blank sheets. The time analysis may easily reveal that the workers in the workplace in question spend a reasonable amount of time moving from workstation to workstation to retrieve tools and other materials. An organization of the workplace will easily solve this issue, reduce time waste and increase production speed. This productivity will spiral into the socioeconomics and improve societal outputs.
Sometime ago, the brand- “Toyota” used time-study analysis to broaden it’s manufacturer’s principles. This is the way it has been able to continuously maintain, define and improve it’s production over time, while remaining one of the most effective and profitable automotive companies in the world.
Famously termed “The Toyota Production System”, it has fostered the elimination of waste (muda) and has ensured that every single process inputs value to the final product (Ohno, 1988), and this is all due to the principles built from time-study analysis.
Toyota has managed to stay very relevant in the automotive market by buying into time-analysis and continually ensuring remarkable levels of productivity.
2. Reduction of The Costs of Operation
When loopholes in waste management, labor and resource utilization are found out through time-study analysis, inefficiencies and operational costs can be extensively reduced. This is another important reason why a company should invest in time study analysis.
For example, in a transport company, a time-study analysis can easily reveal that there are some routes which take longer to travel through, due to congestion in traffic or even poor scheduling.
If these routes can be restructured or the travel schedules adjusted, the company in question can drastically reduce fuel consumption, prevent potential wear and tears in the vehicle, and bring down labor costs.
The company, through time-study analysis, can save money, transport more people with less time and overall improve profits.
In the early 2000s, a company called “Tesco”, which is a supermarket chain, invested enormously in a time-study analysis in order to upscale and increase profits. Through the analysis, they were able to manage their inventory properly, pick orders efficiently, an effectively schedule deliveries.
It was later reported that the company was able to reduce its supply chain by 10%, which was considered a very significant amount (Jones & Clarke, 2002). The consumers also benefited from the time-study analysis, as the savings on cost enabled the company to provide better and lower prices to these customers. Furthermore, as one may predict, all of this culminated in the rapid growth of the company. This was one of the reasons why Tesco rose up to dominate the UK retail market.
Furthermore, due to advancements in technology, many manual tasks which were time-consuming in the past can now be automated.
If the company can correctly identify opportunities which can reduce time waste and improve productivity, it will help increase yield overtime
Why a company should invest in time study analysis is because it can help them identify opportunities for automation. As technology advances, many manual tasks that were previously time-consuming and labor-intensive can now be automated. By analyzing work processes and identifying tasks that can be automated, companies can reduce labor costs and improve efficiency.
For example, in a time-study analysis conducted by a pharmaceutical company, it was discovered that the manual labeling of products was a major bottleneck in the production process. By investing in automated labeling machines, the company was able to significantly reduce labor costs and increase production speed.
3. Improvement of the Worker Performance and Job Satisfaction
Investing in time-study analysis not only benefits companies but also has positive implications for workers. By identifying and eliminating inefficiencies, companies can create a more organized and manageable work environment, which can improve worker performance and job satisfaction.
It helps companies know how long it takes to complete specific tasks and, using that data, gauge the time that it would typically take to complete a specific tasks for the future.
Time-study analysis helps companies analyze how long it should take to complete specific tasks and sets realistic performance standards for workers. This fostered clarity, motivation and engaged workforce.
For example, in a study conducted by the Institute of Labor Economics (IZA), researchers found that when workers were provided with clear time standards and well-structured tasks, their productivity increased by 20% (Bauer & Vorell, 2010). Furthermore, the study found that workers reported higher levels of job satisfaction because they felt more in control of their work and less stressed by ambiguous expectations.
4. Helps Support Employee Development and Training
By finding out the best ways to perform tasks, the company can restructure their employee design training. In
Time-study analysis can also play a vital role in employee development and training. By identifying the most efficient ways to perform equipped with the skills and knowledge necessary to perform their jobs well.
Some time ago, a time-study analysis conducted by a financial services company discovered that new employees were taking significantly longer to process. They learn new practices and due to this, they become better and more experienced counterparts. By analyzing the work processes of the most efficient employees.
5. Enhancing Supply Chain Efficiency
If there are any inadequacies in order processing, transport or management of inventory, time-study analysis can fix this.
Supply chain management is a place where time-study analysis can have a significant impact. By analyzing the time required for various activities within the supply chain, such as order processing and inventory management.
For example, a time-study analysis conducted years ago showed that delays in order processing were leading to late deliveries and customer dissatisfaction.
Because of the processing workflow and automation, the company was able to reduce order processing time by over 40%, leading to faster deliveries and improved customer satisfaction (Christopher, 2016).
In 2017, A large food manufacturer used time-study analysis to upscale her food network and identify the best times to deliver products to retail stores. By reducing delivery times and minimizing transportation costs, the company was able to increase its profit margins and improve its competitive position in the market (Rushton, Croucher, & Baker, 2017).
In 2015, Supply chain expert John Gattorna said, “Supply chains are not just a way to get products to market; they are a key competitive weapon” (Gattorna, 2015).
This has made the chains as efficient and responsive as possible.
6. Supporting Sustainability Initiatives
Why do companies invest in time-study analysis? They do so in order to support our sustainability initiatives like the reduction of waste due to the environmental impact of its operations.
Resources such as energy, water, and raw materials, can be saved, contributing to a more sustainable and better business model.
For example, a time-study analysis conducted by a manufacturing company revealed that its production processes were consuming more energy than necessary.
And this was because of old equipment and bad workflows. However, once they upgraded their equipment and optimized its production processes, the company was able to reduce its energy consumption by 20%, leading to lower cost savings and a reduced carbon footprint (Porter & Kramer, 2011).
Time study analysis will not only reduce the company’s environmental impact but also lower production costs, which will also save the consumers some money (Lovins, Lovins, & Hawken, 2000).
Conclusion
In conclusion, time-study analysis offers a multitude of benefits for companies, as we have viewed. This helps in enhancing productivity, reducing operational costs to improve worker performance and support good decision-making.
Time-study analysis is a powerful tool that can drive significant improvements in business.
As sustainability expert Amory Lovins once said, “Efficiency is the one energy resource that is completely free, has no environmental impact, and lasts forever” (Lovins, 1996). By investing in time-study analysis, companies can tap into this resource, achieving both environmental and economic benefits.
