Wednesday, September 27, 2017

Time study: Allowances, Calculation of allowances, Types of allowances

Time study: Allowances

It is very difficult to determine precisely the allowances needed for a given job

  • Factors related to the individual (physical condition)
  • Factors related to the nature of the work (sitting down, posture during work)
  • Factors related to the environment (heat, humidity, noise, dirt, vibration)

Calculation of allowances

Relaxation allowances

Addition to the basic time intended to provide the worker with the opportunity to recover from the physiological and psychological effect

  • Fatigue allowances are normally added element by element
  • Allowances for climatic conditions applied by working shift or working day
Relaxation allowances are the only essential part of the time added to the basic time

Relaxation allowances have two major components:
  • Fixed allowances
- Allowances for personal needs (washing, drink)
- Commonly applied by many enterprises range from 5 to 7 percent
  • Variable allowances
- Allowances for basic fatigue (energy expended while carrying out work)
- Always a constant
- Common figure is 4 per cent of basic time

Relaxation allowances can be taken in the form of Rest pauses (10 to 15 minute break at mid morning and mid-afternoon)

  • Break up the monotony

Other allowances

  • Contingency allowances (small unavoidable delays)
- Always very small
- Express as a percentage of the total repetitive basic minutes
- Should not be greater than 5 percent
  • Policy allowances (an increment, other than bonus increment)
- Not a genuine part of time study
- Line up standard times with the requirements of wage agreements
- Set at a level that average qualified worker can earn a bonus of 33% of the basic time rate if standard performance is achieved
  • Special allowances (activity are not normally part of the operation cycle)
- Start-up allowance
- Shut-down allowance- Cleaning allowance
- Tool allowance- Change-over allowance
- Reject allowance- Excess work allowance
- Learning allowances- Training allowance
- Implementation allowance- Small batch allowance

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