time keeping time booking

time keeping time booking

1. TIME KEEPING TIME BOOKING TIME TREATMENTS FOR IDLE TIME AND OVER TIME Presentation by, Athira PV MBA (FT) Batch B

2. METHODS OF WAGES PAYMENT 1. Time wage rate system Workers paid on the basis of time spent in the factory 2. Piece wage rate system Workers are paid on the basis of work done irrespective of time taken. 3. Incentive wage rate system Not only wages at normal rate but also receives bonus or premium for his efficiency.

3. TIME KEEPING Time keeping is concerned with the recording of time of workers for the purpose of attendance and wage calculations. Preparation of payrolls. Keep a time keeping for both time paid and piece paid workers. To ensure discipline. To distinguish between normal time, over time, late attendance and early leaving.

4. Methods 1. Manual methods a) Attendance register method A employee known as time keeper note time of arrival and departure of employees in attendance register. Register contains employees name, workers number, department, arrival departure, normal time, overtime. b) Metal disc method A board is kept at the gate with pegs on it. Each worker is allotted a metal disc or token with a hole bearing his identification number. When they enter factory gate, they remove their respective discs or tokens and place them in a box or tray kept near board. Box will be removed by the time keeper, immediately after the scheduled time of arrival. In such case worker has to give token directly to time keeper, then time keepr will record everything in a attendance register ( Daily muster roll ).

5. 2. Mechanical methods a) Time recording clocks Mechanical method, mainly used when workers are more. A time card is given to employees which are serially arranged in tray near factory. He picks up his card from the tray and puts it in the time recording clock. This machine will print the time of arrival in the space against the particular day. Used to record arrival, departure, lunch break etc and late arrivals are printed in red. b) Dial time records Dial time recorder is a machine having dial around the clock and has a no: of holes (150) to the identification number of the worker. There is one radial arm at the centre of the dial, each worker has to press the radial arm after placing it at the hole of his number. Time will be automatically recorded on roll of paper inside it. This machine can also calculate the wages of the workers based on time worked.

6. TIME BOOKING Time booking is concerned with the time spent by a worker on each job, process or operation. To ensure time paid or according to time keeping is properly utilised on different jobs. To calculate labour cost. To ascertain unproductive time. To find the efficiency of workers.

7. Methods a) Daily time sheets Gives in detail the activities of the worker and time spent in each job. One sheet is allotted to each worker and a daily record is made and submitted. Suitable for small organizations. b) Weekly time sheets Each worker is given a time sheet wherein jobs done in a week are recorded. It reflects the consolidation of total hours worked during a particular week. c) Job cards or Job tickets A separate job card for each job or operation is prepared. This card is allotted to each worker whenever a worker takes up a particular job. Time commencement of work and finishing time is recorded by the worker with the help of machines like time recording clock.

8. TIME TREATMENTS FOR IDLE TIME AND OVERTIME Idle time Idle time is that time for which the employer pays, but from which he obtains no production. a) Normal idle time Unavoidable by management. Examples : Tea break, lunch break, fatigue after work etc. Treatment of normal idle time 1. The labour cost of normal idle time may be treated as an item of factory expenses and recovered as an indirect charge. Example : Charge per hour = Rs. 1 / hr Worker engagement = 8 hrs Hours utilised for production = 7 hrs , treated as direct expenditure and charged as wages to the production Idle time = 1 hr, Rs. 1 of this 1 hr is debited to factory expenses

9. 2. It may be charged direct to production at a grossed up rate to include normal idle time. Example : normal idle time is included as a part of production. Charge per hour = Rs. 1 / hr Worker engagement = 8 hrs Hours utilised for production = 7 hrs, So Rs. 8 per day is taken as direct expense for production. b) Abnormal idle time 1. Idle time which can be avoided or controlled by management Examples : Breakdown of machine, raw material shortage, power failure etc 2. Idle time which cannot be controlled by anyone Examples : Fire, Flood etc Treatment of Abnormal idle time Wages paid for abnormal idle time should not form part of the cost of production. It should be debited to costing profit and loss account and it’s a loss.

10. Over time Over time is the work done by employees beyond the normal work period. Overtime is not encouraged because of following reasons High rate Efficiency of worker will be less during over time Habit of postponing by workers Expenses like lightning, wear and tear of machinery etc. Treatment of overtime Example : Normal work period = 40 hrs per week ; Extra hours worked = 10 hrs Normal charge per hour = Rs. 12 ; (1) 50 hrs x Rs .12 = Rs. 600 ------  Direct labour cost ( sequence of jobs is required ) (2) Overtime premium is charged : Charge per extra hour = Rs. 15 instead of Rs. 12 ( 15 – 12 = Rs. 3) Overtime premium = 10 hrs x Rs.3 = Rs . 30 --- Indirect cost ie , treated as overhead cost ( Urgent job)