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Advantages of Work Measurement:
1. It serves as a basis for methods analysis by comparing the efficiency of alternative work method. Other conditions beings the same the method requiring minimum time will be the test method.
2. Work measurement enables preparation of realistic work schedules through accurate assessment human work in relation to plant capacity for production and maintenance planning .
3. It is helpful balancing the work of different workers so that each one has a task that takes equal time to perform.
4. Work measurement provides an objective basis for wage incentive plans by setting standards of machine utilization and labor performance.
5. It provide information on the basis of which estimates for tenders selling prices and delivery schedules may be prepared.
6. It facilitates manpower planning through comparison of actual time with standard time. Estimates for future labor requirements and costs can be prepared. It serves as bases for labor budgeting and budgetary control system.
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Item Cost - $7.00 Order Cost - $283.00 Annual Hold - 32% of item cost Annual Demand - 22,100 Average Demand - 442 per week Standard deviation of weekly demand 20 per week lead time
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