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Generally idle time means that time for which the employer pays, but from which he obtains no production. Otherwise it is the difference between the time for which workers are paid but the workers do not work. So it is a loss to the organisation. It can be minimized but, cannot be controlled during idle time, the workers remain due and contribute nothing towards production. It is the difference between actual hour and actual hour worked. There are two types of idle times:
- Normal idle time: The normal idle time is that idle time which cannot be fully avoided but effective effort should be made to reduce it.
- Abnormal idle time: Abnormal idle time arises due to various causes which can be avoided. Abnormal idle time can be avoided if proper precautions are taken. Thus the factors which are responsible for controlling and avoiding idle time must be taken care of.
Normal idle time is permitted but abnormal idle time should be avoided.
ANSWER:
Idle time indicates that time for which wages are paid to the workers but no production is obtained during that time. Following are the causes of idle time:
- Due to machine break down
- Power failures
- Waiting for instructions
- Waiting for tools or raw materials to start the production
- Economic Causes includes: Seasonal, cyclical or industrial nature
this is unproductive time spent by employees due to factors beyond their control
The above explanation is true as far as an industry or business centre is concerned.
The true definition of idle time is the time utilized for non productive action. This has of two effects. One is useful effect, as certain engines/machines/equipments are advised to run a particular time idle immediately after its first start of a day, before putting in to full pludged utilization. To attain certain safe operating condition an idle time running is essential. The second is counter productive idle time which financially, ethically, functionally and ideologically negative to its envisaged scope.
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These terms are normally used in Cost Accounting. Idle time means the time for which labor is paid but no production is made.Avoidable idle time means the idle time which could be avoided by the management. For example due to shortage of raw material, due to insufficient job schedules.Unavoidable idle time means the idle time which could not be avoided by the management. For example due to sudden breakdown of machine, due to strike by suppliers causing shortage of raw material.Treatment:The cost of avoidable idle time becomes the part of indirect cost and the cost of avoidable idle time becomes the part of direct cost.
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