Standard time (manufacturing)

Usage of the standard time

• Staffing : the number of workers required cannot accurately be determined unless the time required to process the existing work is known.
• Line balancing : the correct number of workstations for optimum work flow depends on the processing time, or standard, at each workstation.
• Materials requirement planning : 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.

  Techniques to establish a standard time

1. Time study,
2. Predetermined motion time system aka PMTS or PTS,
3. Standard data system,
4. Work sampling.

   Method of calculation

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 allowance.