Standard time (manufacturing)

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In industrial engineering, the standard time is the time required by an average skilled operator,
working at a normal pace, to perform a specified task using a prescribed method[1]. It includes
appropriate allowances to allow the person to recover from fatigue and, where necessary, an
additional allowance to cover contingent elements which may occur but have not been observed.

Contents
[hide]
• 1 Usage of the standard time
• 2 Techniques to establish a standard time
• 3 Method of calculation
• 4 See also
• 5 Notes
• 6 References

[edit] Usage of the standard time

Time standards are critical pieces of management information that are essential for the successful
operation of an organization. There are many common and practical uses and benefits of time
standards. Generally, time standards are used in one or more of the following three ways to
directly or indirectly benefit an organization:[2]
• Planning
• Costing
• Performance management
Examples of common applications of time standards are:[3][4]
• Scheduling for production planning purpose: production schedules cannot be set, nor can
delivery dates be promised, unless times for all operations are known.
• Staffing (or workforce planning): the number of workers required cannot accurately be
determined unless the time required to process the existing work is known.
• Line balancing (or production leveling): the correct number of workstations for optimum
work flow depends on the processing time, or standard, at each workstation.
• Materials requirement planning (MRP): MRP systems cannot operate properly without
accurate work standards.
• System simulation: simulation models cannot accurately simulate operation unless times
for all operations are known.
 • Wage payment: comparing expected performance with actual performance requires the
use of work standards.
• Cost accounting: work standards are necessary for determining not only the labor
component of costs, but also the correct allocation of production costs to specific
products.
• Employee evaluation: in order to assess whether individual employees are performing as
well as they should, a performance standard is necessary against which to measure the
level of performance.
[edit] Techniques to establish a standard time
The standard time can be determined using the following techniques[5]:
1. Time study,
2. Predetermined motion time systems,
3. Standard data system,
4. Work sampling.

[edit] Method of calculation

The Standard Time is the product of three factors:
1. Observed time: The time measured to complete the task.
2. Performance rating factor: The pace the person is working at. 90% is working slower
than normal, 110% is working faster than normal, 100% is normal. This factor is
calculated by an experienced worker who is trained to observe and determine the rating.
3. Personal, fatigue, and delay (PFD) allowance.
The standard time can then be calculated by using[6]:
Standard Time = (Observed Time)(Rating Factor)(1 + PFD Allowance)

[edit] See also

• Time and motion study
• Methods-time measurement
• Work sampling
[edit] Notes
1. ^ Zandin 2001, Section X, Chapter 5.1
2. ^ Zandin 2001, Section X, Chapter 5.7
3. ^ Zandin 2001, Section X, Chapter 5.1
4. ^ Salvendy 2001, Section IV.C, Chapter 54
5. ^ Groover 2007
6. ^ Groover 2007

[edit] References
 • Groover, M. P. (2007). Work systems: the methods, measurement and management of
work, Prentice Hall, ISBN 9780131406506
• Salvendy, G. (Ed.) (2001). Handbook of Industrial Engineering: Technology and
Operations Management, third edition, John Wiley & Sons, Hoboken, NJ.
• Zandin, K. (Ed.) (2001). Maynard's Industrial Engineering Handbook, fifth edition,
McGraw-Hill, New York, NY.

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