What is Standard Hours Earned (SAH) in Garment Manufacturing?

Standard Hours Earned term is not much known in garment factories. Here, Work-Study officers or Industrial Engineers working in garment manufacturing factories (Export house or domestic garment manufacturing) don't use 'Standard Hours Earned' instead engineers use Standard Minutes produced or Standard Minutes earned. So when we heard this term first time, we think it might be a different measure.

Let me explain what does ‘Standard Hours Earned’ mean.

This is similar to Standard Minute Produced by workers. Instead of minutes, it is presented in hours. To get Standard hours earned value, standard minutes are divided by 60. Like, if an operator works for 8 hours a day and produces garment equivalent to 360 minutes then the operator’s standard hours earned would be 6 hours (This is derived from 360 minutes/60).

The formula for calculating standard hours earned:

Standard hours Earned = (SAM of operation X Garments produced)/60

This term is also called as Earned Hours because the operator has earned that many hours by his/her effort.

The benefit of using Standard Earned Hours

- Easy to compare produced hours against available hours in a day (efficiency)
- Secondly, calculating the earning amount (in Dollar) of an operator from earning hours is easy as you know the standard hourly rate of your operators.

Also See: How to Calculate Standard Hours Earned, Operator Efficiency and Labour Cost?

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