Lets assume standard time its 10 hours of a particular work.
If employee is working at 125% speed this means he is completing task , earlier than 10 hours.
125% is efficiency
efficiency ratio is standard hours / actual hours
125% = 10 / actual hours
Actual hours = 8 hours
So there is a saving of 2 hours less than standard
In percentage savings 10-8/10 = 20 percent
So ACTUAL TIME IS 20% LESS THAN ACTUAL TIME. OR STANDARD TIME 25% MORE THAN ACTUAL TIME
So Timed time will reduce less than standard . This is because worker is performing better than standard which leads to less time consumption then standard hours. hence saving in time.
Get Answers For Free
Most questions answered within 1 hours.