# How To Calculate The Standard Hour

## Video: How To Calculate The Standard Hour

The efficient operation of any enterprise is impossible without planning. When drawing up a plan for the production of products or service, you need to know such a value as the standard hour. At its core, the standard hour is a temporary standard for the performance of a particular production operation and reflects its labor intensity and, ultimately, has a direct impact on the cost of products or services provided. You can calculate it yourself.

## Instructions

### Step 1

The gross number of working hours is equal to the number of employees of the enterprise employed in production, multiplied by the time that was spent on the manufacture of a product by the joint efforts of these workers. It will not be equal to the actually spent hours, which could serve as a standard. This is due to the fact that during the production process, every minute of working time was not used with an equal degree of intensity.

### Step 2

Please note that some of the time was used for rest breaks. Suppose you are calculating standard hours for a production unit that employs 10 people for 1 workweek for a total of 40 hours. During the day, they take two breaks of 10 minutes each. Thus, the total time that 10 workers spent on breaks during a five-day work week would be:

(10 minutes * 2 * 5 days) * 10 people = 1000 minutes or 16, 7 hours.

Therefore, taking into account the time spent on the break, the total time for manufacturing products was:

10 * 40 hours - 16, 7 = 383 hours.

### Step 3

To make your calculations more accurate, they should take into account the days of temporary disability and absenteeism. This figure can fluctuate depending on the season and holidays falling on different periods. As practice shows, on average for the year it is 4%. Refine the calculated values ​​taking into account this parameter, the number of spent man-hours will be equal to:

383 - (383 * 0.04) = 367.7 man-hours.

### Step 4

This indicator is also theoretical and needs to be clarified, since labor productivity during one working day is also different. At the beginning of the day, workers need time to get ready for work, and at the end - to get ready for home. In addition, some of the time can be lost due to lack of necessary materials, tool breakage. Such losses usually do not amount to more than 7% of working time. With this in mind, the potential number of man-hours will be:

367, 7 - (0, 07 * 367, 7) = 367, 7 - 27, 7 = 342 man-hours practically available.

### Step 5

Now calculate your normal hours. If the labor efficiency of this working group does not exceed the norm and is equal to 100%, then the number of standard hours will be 342, if the labor efficiency in this group is higher and equal to 110%, then you will have 342 * 1, 10 = 376, 2 standards -hour.

### Step 6

From these calculations, you can see that if this group is entrusted with a work order, the estimated execution time of which is 400 hours, then the workers will not have time to complete it in a week. Consider this and solve the problem by increasing the number of workers or transferring part of the order to another department.