Reliable indirect labor standards achieved through computerized computation of mean slot values of the gamma distribution

Abstract

Abstract The importance of reasonably accurate (within ± 10%) indirect labor standards is recognized by the vast majority of practicing industrial engineers. Traditional work measurement methodologies including stopwatch study, standard data, and fundamental motion data can do the job, but these techniques are often not cost effective because of the time required to develop fair standards in advance of the work being done. Slotting methods such as used in the technique referred to as “Universal Indirect Labor Standards” allow the relatively rapid assignment of standards in a very short time. A method of developing Universal Indirect Labor Standards that will give satisfactory results is to slot a sample of benchmark jobs in the form of the gamma distribution. The value of each slot is computed by calculating the expected value (mean) of the gamma distribution that characterizes each slot. The computer is an effective tool to make these laborious computation and arrive at good universal standard values for each slot in the distribution characterized by the benchmark jobs.