BASIC (03-86)

DI 39503.240 Fiscal Year 1975 Facts

The letters and numbers in this narrative correspond to those on Exhibit A of DI 39503.235

A. Dispositions

The actuary estimates 165,535 dispositions for fiscal year 1975. This is an 18 percent increase over fiscal year 1974 (140,284) or 25,251 more cases processed.

B. Work-years used (prior year)

432

C. Work-years changes due to

1. Workload count:

165,535 minus 140,284
325 (PPWY FY 1974)
=77.69

2. Workload mix

a. CE rate

The estimated fiscal year 1975 rate is 20 percent. Since the fiscal year 1974 rate was 21.5 percent, the rate has decreased by 1.5 percent. Each CE case requires 130 minutes additional processing time.

165,535 cases ×.015 = 2,483 cases

-2,483 ×130 minutes = -322,790 minutes

-322,790 minutes ÷60 = 5,380 hours

-5,380 hours ÷1,750 = 3.07 work-years

b. GPE rate

General physical examinations began in July 1974 (fiscal year 1975). The estimated rate is 16 percent and each GPE case requires 90 minutes additional processing time.

165,535 cases ×.16 = 26,486 cases

26,486 cases ×90 minutes = 2,383,704 minutes

2,383,704 minutes ÷60 = 39,728 hours

39,728 hours ÷1,750 = +22.70 work-years

c. MER rate

The purchase of medical evidence of record takes 15 minutes additional processing time per case. The rate was 17 percent in fiscal year 1974 and is estimated at 22 percent in fiscal year 1975. Therefore, there is a +5 percent difference.

165,535 cases ×.05 = 8,277 cases

8,277 cases ×15 minutes = 124,155 minutes

124,155 minutes ÷60 = 2,069 hours

2,069 hours ÷1,750 = 1.18 work-years

This illustration reflects changes by total program. Make separate computations for title II and title XVI where significant differences are evident.

3. Substance

a. Denial letter

In order to provide the public with better service, the State agency types denial letters on initial claims. The denial rate in fiscal year 1974 was 49 percent and is estimated to be 50 percent in fiscal year 1975. An additional 12.5 minutes per case processing time results.

165,535 cases ×.01 = 1,655 cases

1,655 cases ×12.5 minutes = 20,688 minutes

20,688 minutes ÷60 = 345 hours

345 hours ÷1,750 = +.19 work-years

b. Upgrade recon process

The State agency started making personal and telephone contacts with claimants denied at the reconsideration level beginning fiscal year 1975. The intent was to clarify the denial decision, while at the same time giving better service to the public. The fiscal year 1975 affirmation rate is estimated at 52 percent. An additional 94 minutes per case processing time results and an estimated 26,402 case will be affected.

26,402 ×.52 = 13,729 cases

13,729 cases ×94 minutes = 1,290,530 minutes

1,290,530 minutes ÷60 = 21,509 hours

21,509 hours ÷1,750 = +12.29 work-years

c. Quality assurance

Beginning in fiscal year 1975 the State agency began reviewing sample DA&A cases for technical accuracy and medical evidence completeness. This was done to improve the final product. An estimated 2,100 DA&A cases will be sampled during fiscal year 1975. Each case sampled requires 105 minutes additional processing time.

2,100 cases ×105 minutes = 220,500 minutes

220,500 minutes ÷60 = 3,675 hours

3,675 hours ÷1,750 = +2.10 work-years

d. ARS

The advanced record system was set up in the State agency in June 1974 (fiscal year 1974) to improve communication between the DDS's and central office. Implementation of this system increased State agency costs substantially. It was estimated that the ARS would require 2.50 work-years to operate but that 1.75 work-years would be saved as a result of the time saved in manual preparation of workload and similar reports requiring manual development.

FY 1974 = 1/12 of the year ×2.50 = +.20 work-years for operating the system.

FY 1974 = 1/12 of the year ×1.75 = +.14 work-years saved on manual development.

Therefore: .20 - .14 = .06 work-years total for fiscal year 1974.

FY 1975 = 2.50 - .20 = 2.30 work-years for operating system.

FY 1975 = 1.75 - .14 = 1.61 work-years saved on manual development.

Therefore: 2.30 - 1.61 = +.69 work-years total for fiscal year 1975.

e. Medical reports gathering

Beginning fiscal year 1975, the State agency started sending paraprofessionals to hospitals and physicians' offices in order to gather medical reports. This was done to speed up case processing time and to improve the quality of the finished product. As a result, travel costs went up. A total of 4 paraprofessionals were used, resulting in a need for a +4 work-years.

The process of spreading changes affecting different fiscal years as done above is known as annualizing of workpower changes.

4. Procedures

a. Short form

Beginning fiscal year 1974, the State agency condensed the narrative portion used on one of the medical forms. This was done to save workpower without increasing costs. A total of 10.02 work-years was saved during fiscal year 1974. No changes are anticipated for fiscal year 1975, fiscal year 1976, and fiscal year 1977.

b. Checklist elimination

Beginning fiscal year 1975 the State agency eliminated a checklist procedure performed by clerks. The procedure involved reviewing case folders for appropriate medical forms and then taking an inventory by filling out a checklist. This resulted in 15 additional minutes processing time per case. The State agency eliminated the checklist in order to save workpower without increasing costs. No changes are anticipated for fiscal year 1976 and fiscal year 1977.

165,535 ×15 minutes = 2,483,025 minutes

-2,483,025 minutes ÷60 = 41,384 hours

-41,384 hours - ÷1,750 = -23.64 work-years

c. Routing form elimination

The State agency eliminated a routing form used by their mailroom clerks. This was done beginning fiscal year 1975 and saved 6 minutes per case. An estimated 60 percent of the dispositions during fiscal year 1975 will be affected. The form was eliminated to save workpower without increasing costs. No changes are anticipated for fiscal year 1976 and fiscal year 1977.

165,535 ×.60 = 99,321 cases

99,321 cases ×6 minutes = 595,926 minutes

595,926 minutes ÷60 = 9,932 hours

9,932 hours ÷1,750 = -5.67 work-years

5. Indirect time

Indirect time categories in the workpower analysis table (summation) do not relate specifically to case volume; that is they do not expand and contract proportionately with the workload count. Consequently, all indirect time categories except for supervisory ratio changes must be converted or adjusted to direct time. A method of indexing indirect time follows this section of facts for 1975.

Based on previous experience it takes 200 hours to train each clerk and 520 hours of formal classroom time to train each examiner. Moreover, examiner trainees require 12 months of on-the-job training after formal classroom time before they become 100 percent productive. This fiscal year 1975 training schedule is as follows:

a. Training-clericals

It is anticipated that 58 new clerical employees will be trained in fiscal year 1975. On November 1, 1974, 40 will enter on duty and on June 7, 1975, another 18 will begin training.

November group:40 ×200 hours = 8,000 hours
8,000 hours ÷1,750 = +4.75 work-years
1 instructor ×200 hours ÷1,750 = +.11 work-years
June 7th group:18 clerks ×120 hours (last 3 weeks of June 1975) = 2,160 hours for fiscal year 1975.
2,160 hours ÷1,750 = + 1.23 work-years
1 instructor ×120 hours ÷1,750 = + .06 work-years

Total clerical training time-fiscal year 1975:

4.57November classroom time
.11November instructor time
1.23June 7th classroom time
.06June 7th instructor time
+5.97work-years

b. Training-examiners

  1. 1975-TRAINING

    It is anticipated that 37 new examiners will be trained in fiscal year 1975. Twenty-seven will enter on duty July 1, 1974, and 10 on June 1, 1975. Experience has indicated two factors which affect computation of costs in addition to classroom and on-the-job training previously mentioned. Trainee productivity level after the first 6 months of classroom training time is 50 percent compared to the journeyman examiner level and is up to 75 percent of journeyman examiner level after the second 6 months of classroom training time. These factors are included in the computation of training costs.

July group:27 ×520 hours formal classroom training = 14,040 hours.
14,040 hours ÷1,750 = +8.02 work-years.
1 instructor ×520 ÷1,750 = +.29 work-years
27 ×1,040 hours (1st 6 months after classroom training or October-March) = 28,080 hours
28,080 hours ×.50 (only one-half as productive as journeyman examiner) = 14,040 hours
14,040 ÷ 1,750 = 8.02 work-years
27 ×520 hours (balance of the fiscal year 1975 or April-June) = 14,040 hours
14,040 hours ×.25 (75% as productive as the journeyman examiner) = 3,510 hours
3,510 hours ÷1,750 = +2.00 work-years
June group:.10 ×160 hours (4 weeks of June 1975) = 1,600 hours
1,600 hours ÷1,750 = +.91 work-years
1 instructor ×160 ÷1,750 = +.09 work-years
  Total Examiner Training Time-Fiscal Year 1975
8.02July classroom time
.29July instructor time
8.02July (first 6 months) on-the-job training
2.00July (third quarter) on-the-job training
.91June classroom time
.09June instructor time
+19.33work-years

These classes of examiners will still be in training in 1976 and 1977 so listed below are their training costs projected into those years.

  1. 1976 TRAINING-EXAMINERS

July FY 1975 group:27 ×520 hours (July-September FY 1976) = 14,040 hours
14,040 hours ×.25 (75% as productive on the journeyman level) = 3,510 hours
3,510 hours ÷1,750 = +2.00 work-years
June FY 1975 group:10 ×360 (classroom time carried over from FY 1975-first 9 weeks in FY 1976) = 3,600 hours
3,600 hours ÷ 1,750 = +2.05 work-years
1 ×360 ÷1,750 = +.20 work-years (instructor time)

(We are assuming that July 1975, has 5 weeks and August 1975 had 4 weeks.)

10 ×1,040 hours (first 6 months after classroom training or September-February FY 1976) = 10,400

10,400 ×.50 (only one-half as productive as journeyman examiner) = 5,200 hours

5,200 hours ÷1,750 = +2.97 work-years

10 ×720 hours (balance of FY 1976 or March-June assuming a total of 18 weeks at 40 hours per week = 7,200 hours

7,200 hours ×.25 (75% as productive as the journeyman level) = 1,800 hours

1,800 hours ÷1,750 = +1.02 work-years

Total Examiner Training Time-Fiscal Year 1976

2.00July on-the-job training
2.05June classroom time
.20June instructor time
2.97June (first 6 months) on-the-job training
1.02June (second 6 months) on-the-job training
+8.24work-years
  1. FY 1977 TRAINING-EXAMINERS

    10 ×320 hours (first 8 weeks of fiscal year 1977 representing June fiscal year 1975 group-balance of second 6 months after classroom training) = 3,200 hours

    3,200 hours ×.25 (75% as productive as the journeyman level) = 800 hours

    800 hours ÷1,750 = +.45 work-years

    NOTE: The method of indexing indirect time changes will only be used when major changes in workload volume result from one year to the next. Generally, these computations will not be required of most agencies and a close control and analysis of indirect time usage during each fiscal year will enable a valid computation of projected increases or decreases from year to year.

    The “adjustment” process involves three variables-total training time, the percent change in disposition from fiscal year to fiscal year, and the training time adjustment. The adjustment process is as follows:

First:Determine the total training time based on the above calculations.
Second:Determine the percentage change in disposition from year to year and then add or subtract the change to or from 1.00.
Third:Multiply the prior fiscal year training time total times the current fiscal year percentage change in dispositions.

Thus, using the figures given in the workpower analysis table illustration we would have the following:

  1. Total training time

Clerical 
19731.25 (given)
19749.50 (given)
19755.97
1976.82
19770
Examiners 
19734.45 (given)
19742.21 (given)
197519.33
19768.24
1977.45
  1. Index-Clericals and Examiners

19731.00 (given)
19741.06 (+6% from 1973 to 1974, given)
19751.18 (+18% from 1974 to 1975) see FY 1975 “Disposition” facts
1976.94 (- 6% from 1975 to 1976) see FY 1976 “Disposition” facts
19771.08 (+8% from 1976 to 1977) see FY 1977 “Disposition” facts
  1. Adjustment

Clericals 
19731.25 (given)
19741.32 (1.25 ×1.06)
197511.21 (9.50 ×1.18)
19765.61 (5.97 ×.94)
1977.89 (.82 ×1.08)
Examiners 
19734.45 (given)
19744.72 (4.45 ×1.06)
19752.61 (2.21 ×1.18)
197618.17 (19.33 ×.94)
19778.90 (8.24 ×1.08)

Therefore:

 Total Training TimeIndexAdjusted
19731.251.001.25
19749.501.061.32
19755.971.1811.21
1976.82.945.61

Examiners

197701.08.89
19734.451.004.45
19742.211.064.72
197519.331.182.61
19768.24.9418.17
1977.451.088.907

Finally, the adjusted figure is subtracted from the total training time figure to yield the fiscal year training time posted in the workpower analysis table. (Exhibit A, items 5a and 5b)

Clericals 
19730 (1.25 - 1.25)
1974+8.18 (9.50 - 1.32)
1975-5.24 (5.97 - 11.21)
1976-4.79 (.82 - 5.61)
1977-.89 (0 - .89)
Examiners 
19730 (4.45 - 4.45)
1974-2.51 (2.21 - 4.72)
1975+16.72 (19.33 - 2.61)
1976-9.93 (8.24 - 18.17)
1977-8.45 (.45 - 8.90)

c. Increase in staff positions

Before fiscal year 1975, the State agency had two methods and procedures analysts. However, due to the increase in staff type work (budget, accounting, and medical liaison), 12 more were added in fiscal year 1975. No changes are anticipated for fiscal years 1976 and 1977.

 Cumulative WorkpowerIndexAdjusted
19731 (given)1.0011.12
19742 (given)1.06 (1 ×1.06)1.06
197514(2 +12)1.18(2 ×1.18)2.36
197614(14 +0).94(14 ×.94)13.16
197714(14 +0)1.08(14 ×1.08)15.12

Therefore:

Clericals 
19730 (1 - 1)
1974+.94 (2 - 1.06)
1975+11.64 (14 - 2.36)
1976+.84 (14 - 13.16)
1977-1.12 (14 - 15.12)

d. Supervision staff increase

Before fiscal year 1975, the State agency supervisory ratio was 1 to 10. Because of the complexity of staff type work, particularly in the budget and medical liaison areas, the staff supervisory ratio was increased from 1 to 10; to 1 to 5. The nonstaff supervisory ratio remained the same. This was effective July 1974 (fiscal year 1975). During fiscal year 1974, staff workpower accounted for 20 percent of the total State agency's workpower.

432 work-years ×20%=86 staff
432 work-years ×80%= 346 nonstaff
432 total FY 1974 work-years
432= 43.2 total supervisors (as of June 30, 1974)
10 
86= 17.20 supervisors (FY 1975) staff
5 
346= 34.6 supervisors (FY 1975) nonstaff
10 
17.20 
+34.60 

Since the prior fiscal year (1974), total supervisory amount was 1 to 10 or;

=51.80total supervisors (FY 1975)
432= 4.32
10 

An increase of 8.60 work-years is required (51.80 - 43.20)

6. Other productivity

a. Nonrecurring decentralization

In order to effectuate decentralization, the State agency had to engage in the following work activities: site planning, site selection, site preparation, and personnel relocation. These tasks were of a nonrecurring nature and also represented one-time or nonrecurring costs. The State agency determined that these nonrecurring work activities resulted in 1.75 work-years in fiscal year 1974 and estimated 3.25 work-years in fiscal year 1975 and .15 work-years in fiscal year 1976. A +1.50 is posted for fiscal year 1975 (1.75 fiscal year 1974 compared to 3.25 fiscal year 1975 = 1.50 increase).

b. Forced productivity

In an effort to decrease the number of pending cases, the State agency took some expedient measures which reduced processing time by 29.5 minutes. This was started beginning fiscal year 1975 and an estimated 55,000 cases were effected.

55,000 cases ×29.5 minutes = 1,622,500 minutes

÷= 27,041 hours ÷1,750 = 15.47 work-years

c. IBM sorter experiment

The State agencies experimented with an automatic paper sorter during fiscal year 1975. This was a one-time experiment which also ended in fiscal year 1975. A total of 1,500 cases were affected, each case requiring 50 minutes.

1,500 cases ×50 minutes = 75,000 minutes

75,000 minutes ÷60 = 1,250

1,250 hours ÷1,750 = +.71 work-years

d. Productivity improvement

None is estimated for fiscal year 1975.

 

State/Region

Example--Workpower Analysis Summation--All Programs

Graphic Unavailable: ID G-DI_39503.240C.6.d


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DI 39503.240 - Fiscal Year 1975 Facts - 03/11/2013
Batch run: 03/11/2013
Rev:03/11/2013