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What is Time Study

Time study is the method of measurement of laborers' work. In time study, we determine the time for completing the work. There are many activities are included in time study. For calculating time for doing work, we include the average time of normal laborer. We also care of rest time and other spare time for drinking water and refreshment.

In time study, first of all we analyze all the works of company. After this, all work's methods are convert in standard form. In end, we note the actual time of work which has to be done by worker.

Aims of Time Study :

Main aim of time study is to increase the productivity in limited working time. It can be used for calculating wages and other incentives. It also increases the efficiency of worker. Time study can be utilized for making labor cost budgets.

For Example

A time study was carried out in a company for 10 hrs and the following information was generated :

Produced units  350

Waste time  15%

Performance rating 120%

Allowance time 10%

What is standard time for the task?

solution :

unit produced 350

time spent 10 hrs

idle time 15%

observed time per unit in minutes

10 X 60 X 85 % ( Work time) / 350 = 1.457

Time per unit is 1.457 minutes when performance rating is 120%. Therefore normal time per unit at 100% performance rating is :

Normal time = 1.457 x 120 /100 = 1.748 minutes

allowance time = 10% of standard time

Therefore, standard time = 1.748 X 110/100 = 1.923 minutes

Alternatively, standard time may be calculated as follows :

1.748 X 100 /90 = 1.942

From above example, we understand that with historical data, we can calculate standard time for doing any work. So, it is very necessary to record each and every activity of laborers on the basis of time.

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Accounting Education: What is Time Study
What is Time Study
Accounting Education
https://www.svtuition.org/2010/08/what-is-time-study.html
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