Standard Time , Rating factor and Types of Allowances

Now a day every organization is focused to improve operational processes based on measuring different parameters. As per lean manufacturing guidelines, one of the very best ways to monitor and measure equipment, product, or process output is based on a time basis rather than an output basis. output is considered a by-product if we minimize time losses. Now many organizations can develop time standards based on different time studies. So in this article, we understood what is standard time and how it is calculated.

Content

• Formula of Standard time
• What is Time study?
• What is Rating factor?
• What is work content?
• What are the types of Allowances?

Formula for Standard Time

Standard Time = (Observed time * Rating factor) + Relaxation Allowances + Other Allowances

What is Time study?

Time study is basically one of the lean manufacturing tool to measure activity on time basis. In standard time formula observed time is calculated based on time study. Overall time study is widely used to identify opportunity for improvement in operational processes.

What are the purpose for conducting time study?

• To developing time standard.
• To measure individual activity and identify waste on time basis.
• To improve productivity.
• To understand ground reality of operational processes.
• To calculating utilization of manpower of equipment.
• To bifurcate total time into value added, non-value added and necessary but non-value added activities.
• To monitor process set up and changeover activities.

What is rating factor?

Rating factor is basically performance comparison based on standard data. Generally, for standard time calculation rating factor is used to compare performance of manpower. For rating factor category generally rating will be given to manpower in three categories such as working as per normal performance, working as per more than normal performance and working as per less than normal performance.

Formula for calculating rating factor.

Rating factor = Observed performance of manpower / Normal performance of manpower

In general case normal performance of manpower is calculated based on taking numbers of reading of manpower and calculate average readings. But observing manpower performance there are several methods as per mention below.

1. Pace rating

Pace rating is basically measure the manpower performance based on completion of work. In pace rating compare actual work completion and normal work completion and calculate rating factor for manpower. Pace rating is very simple and useful method for calculating rating factors.

2. Westinghouse system for rating

In Westinghouse system rating factor is calculating based on considering 4 factors such as skill, efforts, condition and consistency.

• Skill – skill is mainly considering as per usage of mind with hands on completion of task. Manpower skill improved as per increasing on job experience. Skill evaluation is done based on certain 4 to 5 rating such as good, excellence, average and many more.
• Efforts – efforts are monitor based on how manpower physically engage with the completion of job.
• Condition – Environment condition is very important for calculating rating factors like seasonal effect and other parameters.
• Consistency – consistency is basically shown same performance certain period of time.

3. Objective rating

Objective rating is mainly calculated based on two different factors such as speed of movement and job difficulty. There are also focusing several factors for are review for calculating ratings based on objective rating methods as per mention below.

• Foot pedals
• Bimanual ness
• Eye and hand co-ordination
• Handling requirements
• Fatigue handle

Review below attached formula for calculating manpower rating based on objective rating method.

R = P * D
Where,
R = Rating factor
P = Pace rating factor
D = Job difficulty.

4. Synthetic rating

Synthetic rating method is able to decide rating factor based on pre-determined motion time system. Actual manpower working condition data will be taken from PMTS study and compare with normal data for calculating rating factor with synthetic rating method. Review below attached formula for calculating rating factor for synthetic rating methods.

R = P / A
Where,
R = Rating factor
P = manpower movement as per PMTS standard
A = manpower movement as per average actual observed time.

What is work content?

Work content is basically representing activity completion with respect to time period. There are three basic elements includes for calculating work content such as observed time, rating factor and relaxation allowance. Observed time and rating factor are generally calculated based on time study and allowances to be decided based on certain parameters.

Basically there are two types of work content as per mention below.

Basic work content

Basic work content is representing the observed time based on time study as well as pre-planned relaxation activities. In short for basic work content includes observed man hours and machine hours. One of the important parameters required to focused while calculating basic work content is considering process or equipment used in standard or design condition

Excess work content

Excess work content depends on many parameters as per mention below. In short considering each time losses for calculating excess work content and observed time based on time study.

Time loss due to imperfect design or variation in product.
Time loss due to imperfection process design.
Time loss due to improper resources availability.
Time loss due to absenteeism and equipment downtime.
Time loss due to improper planning and scheduling.

Types of allowances

Allowances are the essential part for calculating time standard. Generally, allowances are the given to the manpower for fulfilling basic requirements as per nature as well as fulfilling special requirements as per the nature of product, process or organizational requirements. Allowances are categorized into four basic parts as per mention below.

Relaxation allowance

Relaxation allowance is a basically categorized into two major parts. The main purpose for providing relaxation allowances in basic time to fulfilling natural and organizational requirement. Each and every person working in organization, they required some relaxation due to continuous working pressure.

Fixed allowance: – fixed allowance are the same for each and every people working within organization and it is also categorized into two parts.

• Personal need allowances: – For fulfilling personal needs as per nature, the allowances to be given for man 5% and for women 7%.
• Basic fatigue allowances: – For fulfilling organization work requirements basic fatigue allowances are also given to everyone 4%.

Variable allowances: – variable allowances is mainly depends on several parameters based on operational requirements. It varies as per the task given to perform. Revie below attached parameters for better clarity for providing variable allowances.

• Work on standing – 2%
• Work on bending posture – 2%
• Work on lying down position – 7%
• For pulling, pushing or lifting – 3 to 17% as per the load carrying.
• Hot and moisture environment – 0 to 10%
• Noisy environment – 2 to 5%

Review above mention different category of variable allowances and as per the actual performance or behavior of the operation add the variable allowances element into basic time.

Interference allowance

Interference allowance is providing to manpower where one manpower operating more than one equipment or more than one process at same time. The main purpose for giving interference allowance is to sometimes chances of time delay due to operating more than one entities same time.

Contingency allowance

Contingency allowance is providing to manpower for delay due to managing critical work or performing critical operation. The allowances % depends upon the criticality of operation and its varies industry to industry.

Policy allowance

The main purpose for providing policy allowance in normal time due to some special activity performance. Policy allowance is not part of routine activity, its added on special task performing. The allowances percentage decide by the organization based on nature of work. In majority cases policy allowances to be provide due to fulfil imperfections or abnormalities of operational processes.