LABOR STANDARDS

Labor standards is the amount of time required to perform a job or part of a job. Properly set labor
standards represent the amount of time that it should take an employee to perform specific job
activities under normal working conditions. Labor standard are set in four ways:

1. Historical experience
2. Time studies
3. Predetermined time standards
4. Work sampling

In this paper, we will focus on TIME STUDIES.

Basically, time study is the act of timing a sample of a worker’s performance and using it as a basis
for setting a standard time. This is the most widely used labor standards. The standard time can be
established by using the following 8 steps:

1. Define the task to be studied

2. Divide the task into precise element

3. Decide how many times to measure the task(number of job cycles or sample needed)

In order to find the proper sample size for a time study, three items must be considered:

i. How accurate we want it to be

ii. The desired level of confidence

iii. How much variations exists within a job elements

2
 zs 
Required Samle Size, n   
 h 
h  accuracy level (acceptabl e error) desired in percent of the job element expressed as a decimal
z  number of standard deviations required for the desired level of confidence
s  standard deviation of the initial sample
  mean of the initial sample
n  required sample size

4. Time and record elemental times and ratings of performance

5. Compute the average observed (actual) time. The average observed time is the arithmetic
mean of the time for each element measured, adjusted for unusual influence for each
element.

Sum of the times recorded to performed each element

Average observed time 
Number of observatio ns
6. Determine the performance rating (work pace) and then compute the normal time for each
element. Performance rating rating adjusts the average observed time to what a trained
worker could expect to accomplish working at a normal pace.
 Normal Time  Average observed time  Performanc e rating factor

7. Add normal times for each element to develop a total normal time for the task.

8. Compute the standard time. This adjustment to the total time provides for allowances such
as personal needs, unavoidable work delays and worker fatigue.

Total normal time

Standard Time 
1 - Allowance factor
 ANALYSIS

1. Define the task to be studied

To study the standard time of producing a unit of printed T-shirt

2. Divide the task into precise element

 Set up design

 Digital printing

 Heat transfer printing onto fabric

 Cut, sewing, thread cutting and ironing

 QC inspection

 Packing

3. Decide how many times to measure the task(number of job cycles or sample needed)

In order to find the proper sample size for a time study, three items must be considered:

 Accuracy of the is to be within  5%

 The desired level of confidence level is assumed as 95%

 variations exists within a job elements

 The number of sample size is 5.

4. Time and record elemental times and ratings of performance

Observations (minutes) Performance Rating

Job elements
1 2 3 4 5 (%)
Set up design 15 18 16 20 15 105
Digital printing 10 12 9 *20 11 100
Heat transfer printing onto
15 13 16 15 12 95
fabric
Cut, sewing, thread cutting
30 35 38 37 32 95
and ironing
QC inspection 5 4 5 6 7 100
Packing 2 1 3 2 *10 110

5. Compute the average observed (actual) time. The average observed time is the arithmetic
mean of the time for each element measured, adjusted for unusual influence for each
element.
 Sum of the times recorded to performed each element
Average observed time 
Number of observatio ns
15  18  16  20  15
Average observed time 
5
Average observed time  16.8 min

6. Determine the performance rating (work pace) and then compute the normal time for each
element. Performance rating rating adjusts the average observed time to what a trained
worker could expect to accomplish working at a normal pace.

Normal Time  Average observed time  Performanc e rating factor

Normal Time  16.8 1.05
Normal Time  17.64 mins

7. Add normal times for each element to develop a total normal time for the task.

Total Normal Time  17.64  10.50  13.49  32.68  5.4  2.2

Total Normal Time  81.91 min

8. Compute the standard time.

Allowances: personal needs 5%, unavoidable work delays 11% and worker fatigue 4%.

Total normal time

Standard Time 
1 - Allowance factor
81.91
Standard Time 
1  0.2
Standard Time  102.40 min
 Observations (minutes) Average
Performance Normal Time Standard
Job elements observed
1 2 3 4 5 Rating (%) (min) Time (min)
time (min)
Set up design 15 18 16 20 15 16.8 105 17.64
Digital printing 10 12 9 *20 11 10.5 100 10.50
Heat transfer printing
15 13 16 15 12 14.2 95 13.49
onto fabric 102.40
Cut, sewing, thread
30 35 38 37 32 34.4 95 32.68
cutting and ironing
QC inspection 5 4 5 6 7 5.4 100 5.40
Packing 2 1 3 2 *10 2.0 110 2.20
 1. Define the task to be studied

To study the standard time of producing a unit Banner printing

2. Divide the task into precise element

Take order

Image preparation

Ink management

Platemaking

Make ready and printing

QC inspection

Binding and finishing

3. Decide how many times to measure the task(number of job cycles or sample needed)

In order to find the proper sample size for a time study, three items must be considered:

 Accuracy of the is to be within  5%

 The desired level of confidence level is assumed as 95%
 variations exists within a job elements
 number of sample size is 5

4. Time and record elemental times and ratings of performance

Observations (minutes) Performance Rating

Job elements
1 2 3 4 5 (%)
Take order 5 7 10 9 6 105
Image preparation 10 12 9 13 11 100
Ink management 5 4 7 9 6 95
Platemaking 10 12 13 10 14 95
Make ready and printing 5 4 5 6 7 100
QC inspection 2 1 3 2 3 110
Binding and finishing 5 7 10 8 6 105

5. Compute the average observed (actual) time. The average observed time is the arithmetic
mean of the time for each element measured, adjusted for unusual influence for each
element.
 Sum of the times recorded to performed each element
Average observed time 
Number of observatio ns
5  7  10  9  6
Average observed time 
5
Average observed time  7.4 min

6. Determine the performance rating (work pace) and then compute the normal time for each
element. Performance rating rating adjusts the average observed time to what a trained
worker could expect to accomplish working at a normal pace.

Normal Time  Average observed time  Performanc e rating factor

Normal Time  7.4 1.05
Normal Time  7.77 min
7. Add normal times for each element to develop a total normal time for the task.

Total Normal Time  7.77  11.00  5.89  11.21  5.40  2.42  7.56
Total Normal Time  51.25 min

8. Compute the standard time.

Allowances personal needs 5%, unavoidable work delays 11% and worker fatigue 4%.

Total normal time

Standard Time 
1 - Allowance factor
51.25
Standard Time 
1  0.2
Standard Time  64.06 min
 Observations (minutes) Average
Performance Normal Time Standard
Job elements observed
1 2 3 4 5 Rating (%) (min) Time (min)
time (min)
Take order 5 7 10 9 6 7.4 105 7.77
Image preparation 10 12 9 13 11 11.0 100 11
Ink management 5 4 7 9 6 6.2 95 5.89
Platemaking 10 12 13 10 14 11.8 95 11.21 64.06
Make ready and
5 4 5 6 7 5.4 100 5.4
printing
QC inspection 2 1 3 2 3 2.2 110 2.42
Binding and finishing 5 7 10 8 6 7.2 105 7.56