Operations Management: Why Zimbabwean SMEs Need to Rediscover Work Measurement

For decades, work measurement carried an unfashionable image. It belonged to the world of the “efficiency expert”, the “time-and-motion man” or the rate fixer walking around a factory with a stopwatch, measuring workers and searching for a few seconds that could be converted into a few cents of savings. As management thinking moved towards quality, […]

The post Operations Management: Why Zimbabwean SMEs Need to Rediscover Work Measurement appeared first on The Zimbabwe Mail.

For decades, work measurement carried an unfashionable image. It belonged to the world of the “efficiency expert”, the “time-and-motion man” or the rate fixer walking around a factory with a stopwatch, measuring workers and searching for a few seconds that could be converted into a few cents of savings. As management thinking moved towards quality, employee empowerment, automation and knowledge-based work, the language of work measurement gradually disappeared from everyday business conversation.

By Brighton Musonza

The stopwatch may have disappeared, but the management problem has not.

For Zimbabwean companies, particularly the new SMEs being established and the large informal economy gradually being pushed towards formalisation, knowing how long work actually takes is becoming a strategic necessity. Zimbabwe’s first Economic Census found 204,798 operational establishments, of which 76.1% were informal, while 87.9% were micro businesses. Only 18.9% of the country’s 180,073 micro establishments were formal.

Those numbers tell a much bigger story than registration status. They describe an economy in which thousands of enterprises are moving, or need to move, from owner-driven trading into organisations capable of producing consistently, costing accurately, employing people productively and scaling beyond the founder.

That transition requires something more fundamental than a company registration certificate. It requires the formalisation of the work itself.

From entrepreneurial instinct to operational discipline

An informal business can survive largely on instinct. The owner knows how much stock to buy, how long it takes to make something, which employee is reliable, which customer pays quickly and which supplier can be trusted. Much of the business’s operating knowledge exists in the owner’s memory.

That model becomes increasingly fragile as the enterprise grows.

The moment a business employs ten people instead of two, serves several customers instead of a handful and begins carrying meaningful inventory, informal knowledge starts becoming an operational liability. The owner cannot remain the purchasing department, production manager, sales manager, quality controller and accountant indefinitely.

The business therefore has to convert individual experience into organisational knowledge.

This is where work measurement becomes relevant. The International Labour Organisation defines work study as the detailed examination of how a particular job is performed with the objective of rationalising its execution and increasing productivity.

In modern terms, the question is not how aggressively management can make employees work. The question is how intelligently the organisation can design the work.

Time is an economic resource

For an SME, time is not simply a measure on a clock. It is a cost.

If an employee spends three hours producing ten units, management needs to understand the labour content of those units. If a machine is available for eight hours but operates for only five, the business needs to know what happened to the other three hours. If a customer order takes two days to process but only four hours of actual work, the remaining time represents a process problem somewhere in the organisation.

This is why the basic time for a job remains important.

Time study establishes the time required to perform defined work under specified conditions and at an agreed level of performance. Properly conducted, it breaks a job into elements, observes those elements and uses the resulting information to establish a reasonable time standard.

That standard can then feed into production planning, labour scheduling, costing, pricing, capacity planning and delivery commitments.

For Zimbabwean SMEs, this has immediate commercial significance. A company that does not know its labour content cannot properly calculate its unit cost. A company that cannot calculate its unit cost cannot confidently establish margins. And a business that does not understand its margins can easily confuse high turnover with profitability.

The real value of time study is not the stopwatch

Time study is often misunderstood because the stopwatch has become its most recognisable symbol.

The stopwatch is merely a measurement instrument. The real value lies in understanding the work cycle.

Consider a small furniture manufacturer producing standard dining chairs. Management may believe that one chair takes 45 minutes because that is roughly how long an employee appears to spend making it. A proper study could reveal that only 30 minutes is productive manufacturing time, while the remainder is consumed by collecting timber, searching for tools, moving between workstations, waiting for glue, adjusting machinery and correcting defects.

The management question then changes completely.

The problem is no longer that employees are “slow”. The problem is that the production system contains unnecessary movement, waiting and interruptions.

This is an important distinction for Zimbabwean businesses because productivity improvements do not necessarily require more capital. Sometimes the cheapest productivity investment is simply removing wasted time from an existing process.

Five techniques, five different management questions

Work measurement is not one technique. The traditional discipline contains several approaches, each suited to different types of work. Manufacturing-operations curricula still identify time study, activity sampling, synthetic timing, predetermined motion-time systems and analytical estimating as established work-measurement methods.

For a growing Zimbabwean business, understanding the difference matters because not every job should be measured with a stopwatch.

Time study: measuring repetitive work

Time study is most useful where work is repetitive and reasonably well defined.

A bakery making standard products, a small manufacturer assembling components, a repair business performing routine services or a warehouse preparing standard orders can observe repeated cycles and establish representative times.

The important word is representative.

Management should not take the fastest observed worker performing the best possible cycle and turn that into a target for everybody. A credible standard has to recognise normal working conditions, appropriate performance and reasonable allowances.

The purpose is to establish what the process should normally require, not to manufacture an impossible target.

Synthesis: using what the business has already learned

Synthesis from elemental data becomes particularly useful when a business has accumulated reliable information about individual activities.

Suppose a manufacturer already knows the standard times for cutting, drilling, sanding and assembling several components. When a new product combines those familiar elements, management does not necessarily need to start another complete stopwatch study.

The known elemental times can be combined to construct the expected time for the new job.

This is potentially valuable for SMEs because business growth produces repetition. Once an organisation has accumulated reliable operating data, that information becomes an asset.

The business begins developing its own library of work standards. That is a major step away from informality.

Instead of the owner saying, “This job usually takes about half a day,” the organisation can say, “The standard work content is 3.8 hours under these operating conditions.”

The second statement is management information.

Predetermined motion-time systems: designing work before production begins

Predetermined motion-time systems take the idea further by establishing times for basic human movements and using them to construct the expected time for a job. Methods-Time Measurement, or MTM, is one of the best-known examples. Research into PMTS has also led to computerised systems designed to make the technique faster and reduce subjective judgement in establishing standards.

For a Zimbabwean SME, the greatest value may not be in applying sophisticated PMTS to every existing operation. Its greater strategic value can emerge when designing a new production process.

Before purchasing equipment, designing a workstation or committing to a large order, management can ask how much human movement the proposed process requires.

Where does the worker reach? Where does the worker walk? How many times must a component be picked up? How far must materials travel? Can two movements be eliminated by changing the workstation layout?

This turns work measurement from an accounting exercise into a design discipline.

Analytical estimating: useful where the work is not repetitive

Not every business performs repetitive factory work.

Maintenance, construction, professional services, repairs and project-based activities often involve work that cannot realistically be timed hundreds of times.

Analytical estimating addresses this problem by using knowledge and practical experience to estimate the time required for the constituent elements of a job. It is particularly useful where work is non-repetitive, although its estimates are inherently less precise than measurements based on repeated observation.

A Zimbabwean engineering company, for example, may not know exactly how long a new maintenance contract will take because each machine has different problems. It can nevertheless break the work into inspection, diagnosis, dismantling, repair, testing and reassembly, then estimate each component using historical knowledge.

That produces a much stronger quotation than simply saying, “We normally charge US$500 for this type of job.”

Activity sampling: discovering where the working day goes

Activity sampling is particularly powerful for businesses whose employees do not perform one repetitive task throughout the day.

Instead of continuously timing an individual, the organisation makes a large number of observations over a period and records what is happening at those moments. The resulting pattern can reveal how much time is being spent on productive work, waiting, administration, movement, meetings, machine downtime or other activities.

This can expose some uncomfortable truths.

A company may believe that its sales representatives spend most of their day selling when activity sampling shows that a significant proportion of their time is consumed by administration. A warehouse may appear understaffed when the real problem is poor stock organisation. An accounts department may appear inefficient when employees are actually spending hours waiting for supporting documents from other departments.

The measurement therefore shifts the management conversation from personalities to processes. Zimbabwe’s SMEs should measure the process before measuring the employee

This is perhaps the most important lesson.

Work measurement becomes destructive when management uses it simply to monitor employees and impose arbitrary production targets. It becomes productive when management uses it to understand the entire operating system.

A worker cannot manufacture goods when materials have not arrived. A cashier cannot process customers when the point-of-sale system is offline. A mechanic cannot complete a repair while waiting for imported parts. An accounts clerk cannot close a transaction when another department has failed to provide documentation.

Measuring the worker without measuring those constraints produces bad management information.

The correct question is therefore not, “Why is this employee taking so long?” It is, “What is consuming the time required to complete this process?”

That distinction is fundamental to modern operations management.

The hidden enemy is often waiting

For Zimbabwean businesses, this is particularly important because operational delays can arise outside the immediate control of employees.

Materials can be delayed. Electricity interruptions can disrupt production. Transport can affect deliveries. Foreign-currency constraints can complicate procurement. Suppliers can change prices or availability. Customers can delay payments.

An employee who spends two hours waiting for a machine or material has not necessarily demonstrated poor productivity. The organisation has lost two hours of productive capacity.

That lost capacity has a financial value.

If a production line capable of generating US$1,000 of contribution per day loses 20% of its available production time, management should not merely record “20% downtime”. It should understand the financial consequence and determine whether eliminating the constraint is economically worthwhile.

This is where operations management meets management accounting.

The operations manager identifies the bottleneck. The accountant calculates its financial effect. The entrepreneur decides whether the corrective investment produces an acceptable return.

Work measurement can improve SME pricing

One of the most important applications for Zimbabwean SMEs is pricing.

Many small businesses price by looking at what competitors charge and adding what they believe is an acceptable margin. That approach can work temporarily, but it becomes dangerous when input costs, labour costs and operating conditions change.

A business needs to know how much labour is contained in a product or service.

If a job requires four productive labour hours, consumes US$30 of materials and generates additional overheads of US$20, management has a foundation for understanding its cost. If another competitor sells the same product below that apparent cost, the business can investigate whether the competitor has a lower labour content, better procurement, higher productivity, lower overheads or simply an unsustainable price.

Without measurement, management is guessing.

With measurement, it can investigate.

Formalisation should therefore include operational formalisation

Zimbabwe’s formalisation debate often concentrates on registration, taxation, licensing and regulatory compliance. Those issues matter, but formalisation has another dimension that receives much less attention.

A business becomes formal in a managerial sense when its processes become reproducible.

The founder’s knowledge must become documented knowledge. Personal judgement must gradually become organisational procedure. Individual memory must become business records. Informal costing must become standard costing. “About a day” must become a measurable work standard.

This matters because Zimbabwe’s micro-enterprise sector is overwhelmingly informal. ZIMSTAT’s census found that only 18.9% of micro establishments were formal, while 81.1% remained informal.

Bringing these businesses into the formal economy without helping them acquire basic management systems risks creating formally registered businesses that remain operationally informal.

The certificate changes.

The business does not.

The SME that measures itself can scale

Scaling a business is fundamentally a capacity problem.

An entrepreneur may be capable of producing 50 units personally, but investors, banks and larger customers need to know whether the organisation can produce 500 units consistently without the founder personally supervising every stage.

That requires standards.

Management needs to know how many workers are required, how much machine time is available, how much material is consumed, where bottlenecks emerge and how much output can realistically be achieved within a given period.

This is where work measurement becomes part of growth strategy rather than an old-fashioned industrial-engineering exercise.

It provides the bridge between having a business and operating a business.

Data will eventually replace the stopwatch

The modern Zimbabwean SME also has an advantage that the traditional time-and-motion engineer did not.

The smartphone, accounting system, point-of-sale terminal, inventory application and enterprise resource planning system can all generate operational data. A business does not necessarily need an industrial engineer standing beside every workstation.

A retailer can analyse transaction times. A warehouse can measure order fulfilment. A manufacturer can monitor machine utilisation. An accounting practice can measure invoice-processing cycles. A transport company can analyse turnaround times.

The stopwatch is therefore being replaced, not because measurement has become irrelevant, but because measurement has become easier.

The next generation of Zimbabwean SMEs should be building operational databases almost from the beginning. From measurement to continuous improvement. Measurement on its own does not improve productivity. It merely tells management what is happening.

The value emerges when the information is used to redesign the process, remove unnecessary movement, reduce waiting, improve layout, change staffing, automate repetitive activities, improve procurement or eliminate defects.

That is why work measurement should sit alongside method study, process mapping, quality management and lean-thinking techniques. Pearson’s manufacturing-operations framework, for example, places work measurement alongside method study, process mapping, value-stream mapping, standardised operations and waste reduction.

The sequence is straightforward: understand the work, measure it, identify waste, redesign the method, establish a better standard and measure again.

That is continuous improvement.

Zimbabwe needs productive SMEs, not merely more SMEs

The central challenge for Zimbabwe is therefore not simply to create more businesses. It is to create businesses capable of becoming productive, scalable and resilient.

The informal sector has demonstrated extraordinary entrepreneurial adaptability, but adaptability alone does not create industrial productivity. The next stage requires businesses to develop systems that allow knowledge to survive beyond the founder, workers to understand what is expected, managers to identify bottlenecks and accountants to connect operational performance with financial results.

Work measurement is one of the oldest tools available for achieving that transition, but it remains surprisingly relevant.

The old efficiency expert used the stopwatch to ask how much faster a worker could perform a task. The modern operations manager should ask a better question: why does the task take as long as it does? That difference captures the evolution of operations management.

The objective is no longer to squeeze another minute from the worker. It is to remove the unnecessary minute from the system.

For Zimbabwean SMEs entering a more formal economy, that could be one of the most valuable management disciplines they acquire.

The post Operations Management: Why Zimbabwean SMEs Need to Rediscover Work Measurement appeared first on The Zimbabwe Mail.