After the age of the craftsmen, when the Industrial Revolution began to pump out products in mass, time became a critical issue with regards to production in manufacturing. No longer could products be made according to an arbitrary or infinite timeframe for production.
With the introduction of mass manufacturing, production mandates and quotas were increasingly created according to the notion of how much time it should take to make x number of items. The idea gave rise to business efficiency theories and models such as Frederick Taylor’s time-motion studies in the early 1900’s, and Frank Gilbreth’s one best way production mode of scientific management in the 1950’s.
The notion of standards- or estimate-based labor performance measurements has continued through the years in one form or fashion, and continues today in our new Twenty First Century industrial revolution. In short, performance measurement is a way to manage and benchmark performance in order to identify areas for continuous lean improvements.
However, what has changed over time has been the means by which labor performance data has been gathered, interpreted, and reported. Rather than just simply counting parts produced by any single worker in relation to the time they used to produce the lot, employee direct labor performance measurements are packaged with a variety of criteria including performance data such as competency scores, trending, goal progress, and several other factors to assess the actual labor utilized in production as a direct cost factored into pricing. (more…)