Wednesday, 16 December 2015

Advantages of Labour Hours Saved Calculation

Advantages of Labour Hours Saved Calculation

Advantages of Labour hours saved includes the following

1.    Efficiency of Employee
Labour hours saved shows the efficiency or performance of the employees. Therefore labour hour saved is important controlling tool of performance.

2.    Reward Announcement
Labour hours saved calculation may be used to determine the rewards for employees. Labor Hours saved can be calculated by the following formula

Hour Saved= Expected Hour > Actual Hour
Hour Saved = Expected Hour – Actual Hours

Example
Hours of Labour for a unit produced= 8 Hrs
Unit produced during the week =2000
Actual Labour during the week = 4000
Calculate hour saved on project?

Solution
Expected Hours = units x hour required per unit
=2000 x8
= 16000

Actual Labour hours on project= 12,000
Hour saved= Standard hours – actual hours
= 16000-12000

=4000 Hours Saved

No comments:

Post a Comment

Note: only a member of this blog may post a comment.