Companies set standards at one of two levels: ideal & normal standards.
Ideal standards represent optimum levels of performance under perfect operating conditions.
Normal standards represent efficient levels of performance that are attainable under expected operating conditions.
“Ideal standards-Standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage; also called theoretical standards. Currently attainable standards sometimes called normal standards, Standards that represent levels of operation that can be attained with reasonable effort.”
Some managers believe ideal standards will stimulate workers to ever-increasing improvement. However, most managers believe that these standards lower the morale of the entire workforce because they are difficult, if not impossible, to meet. Very few companies use ideal standards.
Most companies that use standards set them at a normal level. Properly set, normal standards should be rigorous but attainable. Normal standards allow for rest periods, machine breakdowns, and other “normal” contingencies in the production process.
Use of the term in Sentences:
• Mainly, companies have two options for setting standards: ideal & normal standards.
• The teacher asked the student to differentiate between ideal & normal standards.