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Labor Standards Auditing & Evaluation Labor
Standards deteriorate for reasons such as engineering design changes,
improved methods ( by operator or by departmental supervision
that may or may not be reported), misapplication of standard data,
errors in setting original standard, methods engineering analysis
resulting in improved methods, changes in techniques or frequency
of quality requirements or material handling or tooling, and in
general, a lack of notification of Industrial Engineering of any
or all changes. If notified, the legitimate methods changes could
then be kept up with by Industrial Engineering.
However, even this would allow for the "creeping changes" to still occur. Only a formal and active standards auditing program will keep the original program from total deterioration. Auditing procedures should allow for a qualified and unbiased person not necessarily from the IE department but with an Industrial Engineering background to conduct the audit. The primary audit function is to establish the accuracy of the existing standards, methods, labor reporting and operation of the Industrial Engineering department. The frequency of audits and tolerance level of standards is established by the desired accuracy level as well as time and cost restraints. The cost of establishing and implementing a standards program requires the use of an audit function to maintain control of product costs. |
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