A time study is a structured method for observing and measuring the amount of time required to perform a specific task. It is a practice in industrial engineering and operations management used by organizations to analyze work processes. At its core, this analysis involves a trained observer timing a worker as they complete a task to establish a standard. This data-driven approach provides a baseline for understanding and improving how work is done, forming a basis for enhancing efficiency and productivity.
The Purpose of a Time Study
The primary purpose of conducting a time study is to establish an objective and reliable standard time for a task. This standard time is the average time it takes a properly trained employee to complete a specific job at a normal pace. Businesses use this benchmark as a metric for a variety of operational functions. It moves beyond simple guesswork, providing quantitative data that informs strategic decisions and helps in managing resources more effectively.
This data is instrumental for production planning and scheduling. Knowing how long each step in a process takes allows managers to create realistic production timelines, allocate labor effectively, and anticipate output levels with greater accuracy. It ensures a balanced distribution of work among employees and helps in designing facility layouts that support a smooth workflow. This level of insight helps prevent bottlenecks and ensures that production targets are attainable.
Time studies are also directly linked to financial planning by enabling accurate labor cost calculation. By understanding the precise time involved in creating a product or delivering a service, a company can determine the direct labor cost with high precision. This information feeds into pricing strategies, budget forecasting, and overall profitability analysis. It also provides the foundation for creating fair wage incentive programs where employees can be rewarded for performance that exceeds the established standard.
How a Time Study is Conducted
Selecting and Breaking Down the Task
The first step in a time study is to select a specific task for analysis, often a repetitive job where efficiency improvements can have a significant impact. Once the task is chosen, it is broken down into its smallest individual components, known as elements. For example, assembling a product might be broken down into elements like “pick up part A,” “insert into fixture,” “fasten with tool,” and “place finished unit aside.”
This deconstruction allows the observer to time each part of the job separately. This detailed approach makes it easier to identify small, inefficient movements or delays within the larger task that might otherwise go unnoticed. Each element should have a clear start and end point to ensure that the timing is consistent and accurate across multiple observations.
Observing and Timing the Task
With the task broken into elements, an analyst begins the observation and timing phase. Using a stopwatch or specialized software, the analyst times each element as a worker performs the task over numerous cycles. Recording multiple cycles is necessary to obtain a representative average time, as a single observation could be skewed. Modern approaches may use video cameras to record the process for more detailed analysis away from the production floor.
The observer records the time for each element to complete, which is known as the observed time. This raw data reflects the actual time it took for that specific worker to perform that element during the study. The number of cycles observed depends on the variability of the task; more inconsistent tasks require a larger sample size to ensure the data is statistically reliable.
Applying Performance Ratings
After recording the observed times, the analyst applies a performance rating. This step involves the analyst using professional judgment to assess the pace and effort of the worker relative to a concept of “normal” performance. This normal performance is defined as 100% and represents a sustainable pace for an average, qualified worker.
If the worker is observed working faster than this standard, their performance might be rated at 110%, while a slower pace could be 90%. This rating is then used to adjust the observed time, converting it into what is called the normal time. The formula for this is: Normal Time = Observed Time × (Performance Rating / 100). This step normalizes the data to ensure the final standard is based on a fair and achievable standard.
Calculating Standard Time with Allowances
The final step is to calculate the standard time, which is the time an average worker needs to complete the task under typical conditions. This is done by adding allowances to the normal time. These allowances account for time that is not directly productive but is a necessary part of the workday, such as personal needs, fatigue, and unavoidable delays.
These allowances are expressed as a percentage of the normal time. For instance, a 15% allowance might be added to account for personal needs, fatigue, and minor delays. The final calculation is: Standard Time = Normal Time × (1 + Allowance Percentage). The resulting standard time becomes the official benchmark for the task, used for planning, costing, and evaluation.
Key Benefits for Businesses
A primary benefit of implementing time studies is an increase in operational productivity. By meticulously measuring tasks, businesses can identify non-value-added activities and inefficiencies that slow down production. Eliminating these wasteful steps, whether it’s unnecessary movement by a worker or a delay caused by poor workstation layout, allows work to be completed more quickly. This optimization of workflow directly translates to higher output without requiring additional resources.
Another benefit is improved resource management. Accurate task times allow for better scheduling of jobs, personnel, and equipment, leading to a more balanced distribution of labor. This insight also helps managers identify and address production bottlenecks before they disrupt the entire operation.
These studies also help establish clear and fair performance standards for employees. When goals are based on objective data rather than arbitrary expectations, they are more likely to be perceived as equitable. This can improve employee morale and provide a transparent basis for performance reviews and incentive programs. Workers understand what is expected of them, and managers have a consistent benchmark for evaluating performance.
Common Challenges and Criticisms
One of the most significant challenges in time studies is the human element. The act of being observed and timed can cause anxiety and stress among employees, leading them to alter their normal behavior. This phenomenon, often referred to as the Hawthorne effect, can skew the results of the study, as workers may perform either faster or slower than they typically would. This can lead to an inaccurate or unfair standard time.
Time studies also face criticism for oversimplifying complex tasks. By breaking work down into discrete, measurable elements, the process can ignore the nuances, creativity, and problem-solving skills that are part of many jobs. This focus on speed and efficiency might inadvertently discourage workers from focusing on quality or finding innovative ways to perform their tasks.
Another point of contention is the risk of inaccuracy if the study is not conducted properly. The process relies on the skill and judgment of the analyst, particularly during the performance rating stage. An inexperienced or biased observer can misjudge a worker’s pace, leading to a standard time that is either too tight or too loose, which can cause friction and undermine the system’s credibility.