Standard time is the total time allowed to an operator to perform a specific task at a defined level of performance. It is calculated through several layers of adjustments to the raw data collected during a time study.
1. Step 1: Observed Time (OT):
This is the raw, actual time recorded by a stop-watch while timing an operator performing a task.
2. Step 2: Normal Time (NT):
Since every worker operates at a different speed, the observed time must be adjusted by a "Performance Rating Factor" (RF) to represent the time an average, qualified worker would take.
$$\text{Normal Time} = \text{Observed Time} \times \text{Rating Factor}$$
3. Step 3: Standard Time (ST):
Workers require time for personal needs, fatigue, and unavoidable delays. These "Allowances" are added to the normal time. Allowances are typically expressed as a percentage of the normal time.
$$\text{Standard Time} = \text{Normal Time} + \text{Allowances}$$
$$\text{Standard Time} = \text{Normal Time} \times (1 + \text{Allowance \%})$$
4. The Combined Formula:
By substituting the formula for Normal Time into the final equation, we arrive at:
$$\text{Standard Time} = \text{Observed Time} \times \text{Rating Factor} \times (1 + \text{Allowances})$$