The contingency allowance is the time allocated during planning for unscheduled events. Technical and personal disruptions result in changes in the indirect production costs. The contingency allowance is calculated in special
contingency time studies, the results of which yield rates for indirect production costs.
[Poeschel, Frank: Verteilzeit. In: Landau, Kurt (Hrsg.): Lexikon Arbeitsgestaltung : Best Practise im Arbeitsprozess. Stuttgart: Genter, 2007. - . P. 1292.] The time is usually added to the pure operations time to form a
standard time in manufacturing Standard time is the amount of time that should be allowed for an average worker to process one work unit using the standard method and working at a normal pace. The standard time includes some additional time, called the contingency allowance, to ...
.
The concept was developed by
Charles Bedaux
Charles Eugène Bedaux (10 October 1886 – 18 February 1944) was a French-American millionaire who made his fortune developing and implementing the work measurement aspect of scientific management, notably the Bedaux System. Bedaux was friends wi ...
.
References
Production planning
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