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Business Studies · Ch 2 — Principles of Management

Time Study

2.4.2.5

Time Study

Time study is a technique used to determine the standard time required to complete a clearly defined job. The core idea is to measure how long a task should take under normal conditions, not how long it actually takes on any given day.

To do this, time measuring devices are used to record the time taken for each small element of the task. These readings are taken multiple times — not just once — and the standard time for the whole job is fixed by averaging or analysing these several readings.

The method of time study itself is not fixed. It depends on three factors:

  • the volume and frequency of the task (how often it is done)
  • the cycle time of the operation (how long one complete cycle takes)
  • the cost of taking the time measurements

Objectives of time study

The textbook gives three clear objectives:

  1. To determine the number of workers to be employed for a given volume of work.
  2. To frame suitable incentive schemes (for example, piece-rate wages or bonuses for exceeding the standard).
  3. To determine labour costs accurately.

Worked example from the textbook

The book illustrates this with a concrete example. Suppose, after several observations, it is found that the standard time for a worker to make one cardboard box is 20 minutes.

  • In one hour (60 minutes), the worker will make 3 boxes (60 ÷ 20 = 3).
  • A worker puts in 8 hours in a shift. From this, one hour is deducted for rest and lunch.
  • So effective working time is 7 hours.
  • In 7 hours, at 3 boxes per hour, the worker makes 21 boxes. …