2. Idle Time
When the work is measured on the basis of the time spent by the laborer, the concept of idle time has to be given significance, since it is a factor that affects the cost of production to a greater extent. Idle time represents time lost by ‘time workers’. When workers are paid on time basis, there may arise a difference between the time for which they are paid and that which they actually spend on production. The difference between the time they spend on the work and the time for which they are paid represents idle time. Example: Time lost between the factory gate to the production department, Tea breaks, Machine maintenance etc
- Production causes of idle time: The human resources are wasted to a greater level at the production point, due to many reasons. When there is a breakdown of machine, then there is idle time of workers for which they are paid. Power failure is also another reason for idle time in which the wastage is caused by frequent power failure. This problem could be managed by installing electric power generators. Sometimes the workers have to be idle for want of instructions from the foreman or factory engineer. They may also wait for tools or for the arrival of raw materials. Idle time can be reduced by the strict supervision and proper maintenance of plant and machinery.
- Administrative causes of idle time: Idle time may also be caused by administrative decisions. When there is a surplus capacity of plant and machinery which the
management decides not to utilize there may be idle time due to administrative reason. This will happen during depression period in which some machines are used below capacity and the regular workers are paid full amount of wages. This type of idle time arises out of abnormal situations and is generally not controllable by the management. - Economic causes of idle time: Idle time may also be caused when there is a fall in demand for the product, seasonal nature of certain industries etc., in which production can’t be engaged, and the surplus labor (permanent) ought to be utilized for doing some other jobs. If the management is not utilizing the manpower in alternative employment, then there will be idle time.
Types of Idle Time
- Normal idle time: Here the wastage of human resources cannot be avoided and has to be borne by the employer. For example, when the engineering department takes time for setting the machine when it goes out of order, the laborers have to wait for which time they have to be paid. As a first method of treating idle time, it may be charged to factory overhead. Wage rate may be inflated so as to make allowance for normal loss of labor time.
- Abnormal idle time: Here the idle time arises due to reasons which are beyond the control of management. Time lost due to breakdown of machinery, time lost in waiting for raw materials and tools and accidents are some of the examples of abnormal idle time and it is adjusted through costing profit and loss account. The following table is the specimen of an idle time card useful in accounting for idle time.
Control of Idle Time
- Controllable causes for idle time should be properly analyzed and responsibility should be fixed on appropriate individuals.
- Production ought to be planned in proper manner so that imbalances in production are avoided or reduced.
- Repairs and maintenance of plant and machinery should be regularly undertaken to avoid their breakdown.
- There should not be any interruption in the supply of raw materials.
- Right tools along with work instruction at the right time will avoid idle time.
- There must be rigid control and strict supervisory measures to make the work to move without idle time.