PHYSICAL STANDARDS

Physical Standards

Physical standards refer to expression of standards in units or hours. At this stage standard quantity and standard hours are determined for a particular product or ser- vice. The purpose of setting standards is to secure economies in scale of production and to set selling price for quotation purpose.

In manufacturing organisations, the task of setting physical standards is assigned to the industrial engineering department. While setting standards consideration is given to the

· Company’s operating plan i.e. budgets

· Final output to be produced

· Material specification, in both quantity and quality provided by the engineering department.

· Proportion of material to be used in case of multiple inputs.

· Method of production i.e. fully automated, semi-automated or manual.

· Skill set of workers and availability of workers.

· Working conditions and internal factors.

· External factors (such as Labour Law, Factories Act, Govt. policy etc.).