Normo-hour and its calculation

In the process of planning its activities, the enterprise takes into account various factors and indicators. At the same time, their number directly depends on the type of activity of the organization. For example, companies engaged in the production of a product or providing a variety of services include an order of magnitude more in the business plan than other enterprises. One of the most important is the norm-hour. This indicator is the basis for the labor intensity of products, which is established normatively, has a direct connection with the volume of the goods produced. In addition, it is in close interaction with the productivity of labor.

Normo-hour is an indicator that characterizes the amount of time needed to perform a job, provide a service, or release a unit of output. In this case, its value is limited by the regulatory framework. It is worth noting that this indicator has an effect on the final cost of the product and, as a consequence, on the amount of revenue and net profit.

Calculation of the norm-hour occurs using a well-known index, such as the total number of working hours. This indicator can be determined in the following way: the number of employees of the organization engaged in the production of a certain type of product is multiplied by the amount of working time. However, the result obtained can not be a standard for determining such a value as the norm-hour. This is because the given man-hours were not used with equal intensive efforts.

It should be understood that a certain amount of time was spent on regulated and unregulated breaks. Depending on the type of activity of the enterprise, the number of minutes of rest is established in accordance with regulatory documents. Therefore, out of the total number of man-hours, it is necessary to subtract the value of this indicator.

In addition, there are also downtime, absenteeism and disability. In accordance with various forms of statistical reporting, this amount of time can also be calculated and subtracted from its calculated amount of man-hours. You should also take into account some more indicators. Do not forget about the time to prepare for work, as well as to complete the workflow and bring the workplace in order. Knowing these indicators and the effectiveness of people, you can calculate such a value as the norm-hour.

Let's consider an example. The production of the product involved 5 people. The number of working hours for each of them is 8. According to the regulations, each employee has a legitimate lunch break - 1 hour, and two small breaks of 10 minutes each. In addition, at the beginning of the working day, 10 minutes are taken for the cleaning up of its place in the working state, and at the end of the shift it takes 10 minutes, that is, in the amount of 20 minutes. For the month of March, none of the workers took compensatory time off, no one was sick, and no downtime also happened. The efficiency of the production process is 115%. The cost of normo-hour is 2000 rubles. Calculate the number of hours per month and determine their monetary value.

Decision:

The total number of man hours is:

5 people * 8 hours * 20 days = 800 man-hours.

The amount of time for regulated breaks, lunch, workplace preparation:

10 minutes + 10 minutes + 1 hour + 10 minutes + 10 minutes = 1 hour 40 minutes or 1.67 hours

The amount of time that is not used during production is equal to:

5 people * 20 days * 1.67 hours = 167 man-hours per month

Other idle times are absent, therefore the number of norm-hours will be equal to:

800 people / hour - 167 people / hour = 633 people / hour

At the same time, employees use their time with greater efficiency, i.e. 633 person / hour turns into:

633 people / hour * 115% = 727.95 people / hour - this is the required number of standard hours.

At the same time, their cost is:

727.95 people / hour * 2000 rubles. = 1,455,900 rubles.