Time and Motion Study Guidelines by DOLE

Revised Guidelines on the Conduct of Time and Motion Study (TMS). Department Order No. 125-13. Department of Labor and Employment, Philippines (DOLE). April 1, 2013.

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REVISEDGUIDELINES ONTHECONDUCT OFTIMEANDMOTIONSTUDY
(TMS)
PursuanttoAdministrativeOrderNo.357,Seriesof2010,DOLE
RationalizationPlan,ExecutiveOrderNo.366,andArticle121(b)inrelationto
Article101oftheLaborCodeofthePhilippines,asamendedbyRepublicActNo.
6727,thisGuidelinesshallgoverntheproceduresandstandardsfortheconductof
TimeandMotionStudy-WorkImprovementandMeasurement.
RULEI
GENERAL PROVISIONS
Section1.Title.ThisGuidelinesshallbeknownastheRevisedGuidelinesonthe
ConductofTimeandMotionStudies(TMS).
Section2.Construction.ThisGuidelinesshallbeliberallyconstruedtocarryout
theobjectivesofAdministrativeOrderNo.357,Seriesof2010,DOLERationalization
P!an,ExecutiveOrderNo.366,andArticles101and121(b)oftheLaborCodeof
thePhilippines,asamendedbyRepublicActNo.6727.
Section3.Scope.ThisGuidelinesshallgoverntheconductofTimeandMotion
StudybytheRegionalTripartiteWagesandProductivityBoards.
Section4.Coverage.Thisguidelinesshallcoverworkersofmicro,smalland
mediumenterpriseswhoarepaidbyresult,includingpakyao,pieceworkandother
non-timeworkpursuanttoArticle101oftheLaborCodebutshaliexclude
enterpriseswherenoemployer-employeerelationshipexist.Dailyrateworkersrnav
alsobecoveredbutonlyforpurposesofsettingstandardsforworkimprovement
andproductivity.

2. Section5.DefinitionofTermsasusedinthisGuidelines:
1."Basictime"meansthenormaltimetakentodoajob,establishedbywork
study.
2."DOLE-RO" meanstheDepartmentofLaborandEmployment-Regional
Office.
3."Element"meansadistinctpartofaspecifiedjobselectedforconvenience
ofobservation,measurementandanalysis.
4."Employee"referstoanyindividualemployedbyanemployer.
5."Employer"referstoanypersonactingdirectlyorindirectlyintheinterestof
anemployerinrelationtoanemployee.
6."Establishment"referstomicro,smallandmediumbusinessentities
engagedinanyeconomicactivitywhoseworkersarepaidbyresult
includingpakyaw,piecework,commissionoranyothernon-timework.
7."Micro,small,andmediumenterprises(MSMEs)"referstoanybusiness
activity/enterpriseengagedinindustry,agri-business/services,whether
singleproprietorship,cooperative,partnership,orcorporationwhosetotal
assets,inclusiveofthosearisingfromloansbutexclusiveofthelandon
whichtheparticularbusinessentity'soffice,plantandequipmentare
situated,musthavevaluefallingunderthefollowingcategories:
a.ByAssetSize
Micro:
Small:
Medium:
Large:
UptoP3,000,000
P3,000,001-P15,000,000
P15,000,001-P100,000,000
aboveP100,000,000
b.Alternatively,theymayalsobecategorizedbasedonthenumberof
employees:
Micro:
Small:
Medium:
Large:
1--9employees
10--99employees
100--199employees
Morethan200employees
8."NWPC"meanstheNationalWagesandProductivityCommission.
9."NormalTime"meanstheaveragetimeittakesanaverageworkerto
performtheelementinanidealcondition.
10."Order"meansPieceRateOrderorProductionStandardOrderissuedbythe
DOLERegionalDirector,inhiscapacityasDOLEChairpersonbasedonthe
2

3. recommendationoftheBoard'sSecretariatasaresultofTMSconductedin
anapplicant-firm.
11."Piece-Rate"meansthemodeofpaymentwherebyanemployeeispaidon
thebasisofhisproduction,i.e.ontheamountorquantityofworkdone
ratherthantimeemployed.
12."ProductionStandard"meansthequalitylevelsrelatingtoproduction.
13."RTWPB"meanstheRegionalTripartiteWagesandProductivityBoard.
14."StandardTime"meansthetimerequiredbyanaverageworkertoperform
theprescribedandstandardizedworkinprevailingconditions.
15."TimeandMotionStudy"meansthesystematicdeterminationofwork
methodsandtimestandardsusingvarioustools/technologies.
16."Wages"meansremunerationorearnings,howeverdesignated,capableof
beingexpressedintermsofmoney,whetherfixedorascertainedonatime,
task,pieceorcommissionbasisorothermethodofcalculatingthesame,
whichispayablebyanemployertoanemployeeunderawrittenor
unwrittencontractofemploymentforworkdoneortobedone,orfor
servicesrenderedortoberenderedandincludesthefairandreasonable
value,asdeterminedbytheSecretaryofLaborandEmployment,ofboard,
lodgingorotherfacilitiescustomarilyfurnishedbytheemployertothe
employee.
17."Work"meansanyactivityperformedforafee.
18."WorkCycle"meansthecompletesequenceofelementsnecessaryto
performaspecifiedjobtoyieldaunitofoutput.
19."WorkImprovement"meansasystemofdesigningabettermethodof
doingwork.
20."WorkMeasurement"meansasystemofdeterminingtheperiodoftimea
machineoranaverageworkerneedstoperformspecificjobatadefined
levelofperformance.
Section6.AssessmentandAccreditation.TheNWPCshalldevelopasystem
ofassessmentandaccreditationofthosewhowillconducttimeandmotionstudy.
Accreditedtrainorsshallcomplywiththeproceduralrequirementsconsistentwith
RulesIIandIIIofthisGuidelines.NWPCshallalsoprovidecontinuouscapacity
buildingforitspersonnel.
Section7.TechnicalAssistance.TheconductofTMSisaformoftechnical
assistanceconductedbytheRTWPBsfreeofchargeoratnocosttoapplicants.
3

4. RULEII
CONDUCTOFTIMEANDMOTIONSTUDY
Section1.FilingofApplicationfortheconductoftimeandmotionstudy
a.Howfiled.Applicationmaybefiledpersonallyorbyregisteredmailusing
theprescribedform(NWPC-TMSForm-Ol)andshallbeaccompaniedbythe
followingdocumentaryrequirements:
1.Businesspermitforthecurrentyearissuedbytheappropriate
governmentagency;
2.Listofthecompany'semployeeswiththeircorrespondingwages;
3.Jobactivitieswiththeirexistingwagerates;
4.Methodofpaymentofwages(e.g.pakyaw,takay,commission);and
5.Proofofnoticeoffilingofapplicationforthedeterminationofpiece
rateorproductionstandardsetting.
Applicationswithincompletedocumentaryrequirementsshallnotbe
accepted.Iftheapplicationwassentthroughregisteredmailore-mail,itshall
bereturneduponreceiptusingtheReplyFormNWPC-TMSForm-02withall
thesubmitteddocuments,indicatingthereason/sfordenyingtheapplication.
b.Bywhomfiled.Theapplicationmaybefiledbytheunion,aworkeror
owner/managerorthedulyauthorizedrepresentativeofamicro,small,or
mediumestablishmentsinpersonorbyregisteredmail.Incasethe
applicationisfiledbyaunionorworker,mereapplicationwillsufficeandthe
RTWPBshallimmediatelynotifytheowner/managerwhoshallberequiredto
submitthedocumentaryrequirements.
c.Wheretofile.Theapplicationforthedeterminationorapprovalofpiece
ratesand/orproductionstandardsettingwiththeappropriateRTWPBhaving
jurisdictionovertheworkplaceusingtheprescribedform(NWPC-TMSForm-
01).ApplicationsfiledwiththeDOLE-ROandfieldofficesshallimmediatelybe
forwardedtotheappropriateRTWPB.
d.Whentofile.Theapplicationforthedeterminationofpieceratesshallbe
filedbeforesuchratesaregiveneffect.Applicationsfortheapprovalof
existingpiecerates,ontheotherhand,maybefiledatanytimeatthe
discretionoftherequestingparty,withoutprejudicetotherightofthe
workersconcernedtorecoverthedifferencebetweentheamounttowhich
4

5. theyareentitledtoreceiveunderthestandardsorratesasdeterminedbythe
RTWPBandthatactuallypaidtothem.
Section2.ActionsonApplication.TheRTWPBsecretariatshall,within30days
fromthedeterminationofthecompletenessoftheapplication,actonthesameas
follows:
1.SecureAuthoritytoConductTMSfromtheRTWPBChairperson/DOLE
RegionalDirectorandsetthescheduleandpreparetheagendafortheInitial
Conferenceensuringtheattendanceandparticipationofunion/workers'and
rnanaqernent'srepresentatives.
2.ConducttheinitialconferencewiththeRTWPBBoardSecretaryasChair,to
discusstherulesofengagement,suchasdetailsoftheapplication,termsof
referencefortheconductoftheTMSandcoverageofthestudy,among
others.
TheRTWPBSecretariatshallpreparetheminutesofthemeetingwhichneed
tobeapprovedbytherepresentativespresentthereatusingtheNWPC-TMS
Form-03forTMStobeconducted.
3.ConductofTMS.(NWPC-TMSForms-04and05)
a.Observe,obtainandrecordinformationaboutthejob,theoperator,
theoperation,thesurroundingsandworkingconditionsandother
factors/observationslikelytoaffecttheaccomplishmentofthework.
b.Studytheactivity/ieswhichwillbethesubjectofaTMS(Referto
processflowchart,ifany).
c.Examinethedetailedbreakdownofthejoboperation/activity.(classify
ifcyclicalornoncyclicalelements).
d.Usingthetoolsandtimingtechniques,measureandrecordthetime
takentoperformeach"element"oftheoperation,i.e.average,
normal,basicandstandardtimebyusingastopwatch,videoorany
similardevice.
e.Aftergatheringthenecessaryinformation,re-convenetheparticipants
intheinitialconferencetodiscusstheprocessconductedand
succeedingactivitiestobeundertakenwithcorrespondingtimelines.
f.Computeandanalyzetheinformationgatheredfromthe
establishment.
5

6. g.ConductexitconferencetodiscusstheresultsoftheTMSand
correspondingrecommendations.
h.SubmittotheDOLERegionalDirectorasR1WPBChairmanforhis
considerationandapproval,areporttoincludetheagreementsandthe
recommendedstandardratesasstatedintheTimeStudySummary
Sheet(NWPC-TMSForm-OS,whicheverisapplicable)togetherwiththe
followingdocuments:
1.ApplicationorRequestForm(NWPC-TMS Form-01)
2.InitialConference(NWPC-TMSForm-03)
3.TimeStudyObservationSheet(NWPC-TMSForm-04)
4.TimeStudySummarySheet(NWPC-TMSForm-OS)concurredbythe
workers'andemployers'authorizedrepresentatives
5.Minutesofthepreandpostconferenceandallrecordspertinentto
thenarrativereport.
RULEIII
PIECERATEAND/ORPRODUCTION STANDARDORDER
Section1.IssuanceofPieceRateand/orProductionStandardOrder.
Withinfive(S)workingdaysfromreceiptoftheR1WPB'sresolution,theRegional
DirectorasR1WPBChairpersonshallissueaPieceRateand/orProductionStandard
Order.
AnypartyaggrievedbyaPieceRateand/orProductionStandardOrdermay
appealtotheNWPCbyfilingaverifiedappealwiththeR1WPBthereinthegrounds
reliedupon,intwo(2)printedandlegiblecopies,withinten(10)daysfromreceipt
ofthePieceRateorProductionStandardOrder.Theappealmaybefiledbasedon
violationsoftheproceduressetinRuleII,Section2hereof.
Section2.Contents.ThePieceRateOrder(NWPC-TMSForm-06)orProduction
StandardOrder(NWPC-TMSForm-Dz)shallincludethefollowing:
a.Recitaloffacts;
b.Listofjoboperationoractivltvstudiedandthecorrespondingrateperunit
inthecompanyincaseofPieceRateOrderorquotaperdayincaseof
ProductionStandardOrder;and
c.Issuesinvolvedanddiscussionwhereapplicable.
6

7. Section3.DurationofPieceRateand/orProductionStandardOrder.The
durationofaPieceRateand/orProductionStandardOrdershallremainvalidand
effectiveunlesssoonerrevokedorsuspendedorrevisedorreviewed.
Section4.PostingofOrder.Theunion/workersandemployershalleachbe
furnishedacopyoftheOrder.TheemployershallpostacopyoftheOrderina
bulletinboardorinaconspicuousplaceinitsestablishmentandshallsubmita
certificateofpostingtotheRTWPB.Thepostingshallformpartofthemonitoring
activityoftheDOLERO.
Section5.ValidationforLargeEstablishments.Largeestablishmentswith
existingpieceratesmayapplyforvalidationofthesamewhichshallalsobethe
subjectofaPieceRateOrder.
RULEIV
ENFORCEMENT
Section1.EnforcementofPieceRateand/orProductionStandardOrder.
CompliancewiththePieceRateand/orProductionStandardOrderissuedbythe
RTWPBshallbeenforcedbytheappropriateDOLE-RO,inaccordancewith
enforcementproceduresunderArt.128and129oftheLaborCode,asamended.
Section2.AnyviolationoftheOrdermayresultinrevocationorsuspensionthereof
bytheDOLERegionalDirectorafterdueprocess.
RULEV
SUBMISSIONOFREPORTS
Section1.SubmissionofReports.TheRTWPBsshallsubmittotheNWPCwithin
ten(10)workingdaysafterthereferencemonth,amonthlyreport(NWPC-TMS
Form-08)ontheconductofTimeandMotion,forpurposesofprogrammonitoring
andevaluation.
AllOrdersandtheircorrespondingTMSdocumentationshouldbefiledatthe
RTWPB.OnecompletecopyshallbesenttoNWPC,whoshallmaintainadatabase
ofallTMS.TheNWPCshallconductrandomdocumentationand/orsiteauditson
TMS.CopyoftheresultsoftheauditshallbefurnishedtheconcernedBoard
Chairperson.
7

8. RULEVI
REPEALANDSEPARABILITY
Section1.RepealandSeparability.Allexistingrules,regulationsorordersor
anypartthereofinconsistentwiththisrevisedGuidelinesareherebyamendedor
modified.IfanypartorprovisionofthisGuidelinesisdeclaredunconstitutionalor
illegal,theotherpartsorprovisionsshallremainvalid.
RULEVII
EFFECTIVITY
Section1.Effectivitv.ThisGuidelinesshalltakeeffectfifteen(15)daysafterits
publicationinone(1)newspaperofgeneralcirculation.
Manila,Philippines,__o---C.../_4;?~"'_t'! 2013.
ROSALIN1A~~MA~IiaS-BALDOZ
Secretary
8

9. NWPC-TMSForm-Ol
NationalWagesandProductivityCommission
RTWPB
NameofEstablishment:
Telephone:
Address:
Fax/Ifany:
_._-.-..-
NatureofIndustry(Pls.Check)
--'
Manufacturing AgricultureLService Others(Specify)
--
NameofOwner/Manager:
DescriptionofEconomicActivity:_
Union CBA NameofUnionPresident:
With
I
With
L- ~
~
----'
Without
1---,Without
Capitalization
Status BasisofPayment
TotalNo.ofEmployees
Regular
Non- TimeUnit OutputRate
Regular Hourly Daily Monthly OthersPieceRatePakyawOthers
ProductivityOver2Years Decreasing/I
FlatD IncreasingD---.J
ReasonforRequest RequirementbyPrincipaltosetstd.timeorrate
-
Management-LabordesputeoverstandardTimeorRate
-
Others(Specify):
WorkScheduleofWorkers Shift1
BreakPeriod1
to to to to, , , ,
BreakPeriod2
to to to to, , , ,
BreakPeriod3
to to to to
r , , ,
JobOperations/Activities
No.of
PresentDaily
JobCode PieceRate Quota/Average Remarks
(Useadd'isheets,ifneeded)
Workers
Output
NameofCompany:
Representative:
Designation:
NameandSignatureofApplicant DateRequested:
TobefilledoutbyRTWPB
DateReceived Receivedby DocketNo. BoardSecretary'sSignature
Revised81S11crtr

10. NWPC-TMSForm-02
REPLYFORM
ThefollowingdocumentswerefoundlackinginyourapplicationforTMS-WIMS
1)
2)
3)
Inthisregard,wearereturningyourapplicationwithallitssupportingdocuments
withoutprejudicetotherefilingofthesameuponcompletionofalldocumentary
requirements.
'I

11. NWPC-TMSForm-03
RepublicofthePhilippines
DepartmentofLaborandEmployment
NATIONALWAGESANDPRODUCTIVITYCOMMISSION
REGIONALTRIPARTITEWAGESANDPRODUCTIVITY BOARD
INITIALCONFERENCE
Date
Time
Venue
Agenda
1)RulesofEngagement
2)TermsofReferencefortheconductofTMS
3)CoverageoftheStudy
Minutes/Highlights:
Preparedby: Notedby:
BoardSecretary
Conforme:
ManagementRepresentative Workers'Representative

12. TIMESTUDYSHEET COMPANY Name:
JOB DATE/SOBSERVED
POSITION&NAMEOFWORKER OBSERVER
OUTPUT PERCYCLE LAYOUT SCALE:: Conf Z
MATERIALS &SPECIFICATIONS 900 165
950 196
955 2.00
MACHINES 980 2.33
990 2.58
TOOLS/SUPPLIES USED
a-VALUE 0.1 Z-VALUE 2.00
CyclicalActivity Cycle 1234567891011 ATe Var n' S E NT n-ZlXr'(sIx)
1 CT(rnin)n
2 Ifz=2a=0.1 <:0.5 i:::j0
3 n'=400(S2/X2) 0.5 bU
4 GEGuide 1 3u
5 L ?[J
6 5 ·15
7 >5 10
8
9
10
UDA PFA ST
UnavoidableDelay Cycle1234567891011 0.00" ~i
1.
ModifiedVVestinqhouseRatinq
2.
Oescrition Skill Effort
3.
4. Suer/Excess O.'14 U.12
5. Excellent 0.1 O.O~
6. Good 0.05 0.04
7.
.A.veraqe 0 0
8.
Fair -0.07 -U.06
9
10
Poor -U.19 -0.15
AvoidableDelay Cycle 1234567891011 0 «TotaIUDAverage
1 ObservedUDA= UDAverage
2 AT
3 =t'.ilDIV/O!~"J
4 OtherUDA= . .,J
5 UDA= r.#DIV/01';:,
6 ST= NT/(1-Allowances)
Remarks
BasicPersonal&Fatiue MentalStrain
Standingallowance Monoton
Abnormalpositionallowance Tediousness
UseofForce PERSONAL&FATIGUEALLOWANCE
,"~
DesignedbyRVAtienza
NWPC·TMSFcrm-Os

13. NWPC-TMSForm-OS
TIMESTUDYSUMMARY COMPANY Name:
JOB DATE/SOBSERVED
POSITION &NAMEOFWORKER OBSERVER
Ifworkersworkautonomously Ifworkersworkasteam
CycleActivity NT A ST CT EffT StdCap Wage PcRate Men EffTStdCapWage PcRate Men
1
2
3
4
5
6
7
8
MinNo.ofworkersifautonomously working» ifworkinginteam»
TotalofSTs Term Code Formula/Remarks
Less:*STofman-lessactivities NormalTime NT
STofmannedactivities Allowance A
Div.byCT StandardTime ST NT/(l-A)
Min.No.ofWorkersifworkinginteam» CycleTime CT akaControllingtime;expectedtimetoproduce1unit
Remarks (Often,timeoftheslowestmachinetoproduce1unit)
EffectiveTime EffT Workingtimeinshift-Timeforbreaks
StandardCapacityStdCapEffT*3600/ST(Ifautonomous)
EffT*3600/CT(Ifinteam)
.'
DailyWage Wage
PieceRate PcRateWage/StdCap
ManpowerrequiremMen Roundup(ST/CT)ifworkersworkautonomously
(ST/CT)ifworkersworkinteam

14. NWPC-TMSForm-06
PIECERATEORDERNO. _
FOR
NameofApplicant
Address
Inresponsetotherequestofthemanagement/laborunionoftheabove-named
establishment,aWORKIMPROVEMENT ANDMEASUREMENT STUDYwasconductedbythe
RegionalTripartiteWagesandProductivityBoard__ todeterminethefairand
reasonablepiece-ratesfortheemployees/workersofthesaidenterprise.
WHEREFORE ,BYVIRTUEOFTHEAUTHORITY vestedinmebyDepartmentOrderNo.
__ andArticle101oftheLaborCodeofthePhilippines,asamendedandonthebasisof
theresultofthestudyconductedintheafore-mentionedestablishment,thepiecerateto
beprescribedfortheemployeesthereinshallbethosespecifiedbelow/intheattachment/s:
JOBOPERATION/ACTIVITY RATEPERUNIT
ThisORDERshallnotbarthepartiesfromenteringintoanagreementthatismore
beneficialtotheworkers;andshallbesubjecttoanystandardfavorabletotheworkersthat
maybeestablishedbylawortradeunionagreement;andsubjecttotheconditionthatan
increaseintheapplicableminimumwagerateshallalsoincreasetheoutputrates
establishedhereinatthesamerateofpercentage.
AcopyofthisORDERshallbepostedinaconspicuousplacefortheinformationand
guidanceoftheworkersconcernedandshallbereadyforinspectionbytheauthorized
representativeoftheDepartmentofLaborandEmployment.
ThisORDERtakeseffectimmediatelyandexpireson _
_______ -',2011.
BYTHEAUTHORITY OFTHESECRETARY
DOLE-__ RegionalDirector

15. NWPC-TMS Form-07
PRODUCTION STANDARD ORDERNO.
-----
FOR
NameofApplicant
Address
Inresponsetotherequestofthemanagement/laborunionoftheabove-named
establishment,aWORKIMPROVEMENT ANDMEASUREMENT STUDYwasconductedbythe
RegionalTripartiteWagesandProductivityBoard__ todeterminethefairand
reasonableproductionstandardratesfortheemployees/workersofthesaidenterprise.
WHEREFORE, BYVIRTUEOFTHEAUTHORITY vestedinmebyDepartmentOrderNo_
__ andArticle101oftheLaborCodeofthePhilippines,asamendedandonthebasisof
theresultofthestudyconductedintheafore-mentionedestablishment,theproduction
standardratetobeprescribedfortheemployeesthereinshallbethosespecifiedbelow/in
theattachment/s:
PRODUCTION (OPERATION/ACTIVITY) RATEPERUNIT
ThisORDERshallnotbarthepartiesfromenteringintoanagreementthatismore
beneficialtotheworkers;andshallbesubjecttoanystandardfavorabletotheworkersthat
maybeestablishedbylawortradeunionagreement;andsubjecttotheconditionthatan
increaseintheapplicableminimumwagerateshallalsoincreasetheoutputrates
establishedhereinatthesamerateofpercentage.
AcopyofthisORDERshallbepostedinaconspicuousplacefortheinformationand
guidanceoftheworkersconcernedandshallbereadyforinspectionbytheauthorized
representativeoftheDepartmentofLaborandEmployment.
ThisORDERtakeseffectimmediatelyandexpireson--,,-- _
________ -',2011.
BYTHEAUTHORITY OFTHESECRETARY
DOLE-__ RegionalDirector

16. NWPC-TMSForm-08
ApplicationsforTimeandMotionStudy
FortheMonthof
-----
Region _
NameofEstablishment DateFiled
DateofConduct DateofIssuance
ofTMS ofOrder
CertifiedCorrect:
BoardSecretary