Idle Time

AAA

DEFINITION of 'Idle Time'

Unproductive time on the part of employees or machines as a result of factors beyond their control. Idle time is the time associated with waiting, or when a piece of machinery is not being used but could be. Idle time could also be associated with computing, and in that case refers to processing time.

INVESTOPEDIA EXPLAINS 'Idle Time'

Time management is extremely important in any business. This includes timing the completion of one project to coordinate with the beginning of another to reduce idle time. For example, if department A is unable to work on assembly because department B has not finished creating the parts required, the two departments need to be synchronized so that this handoff can go more smoothly, thus reducing idle time.

RELATED TERMS
  1. Activity-Based Management - ABM

    A procedure that originated in the 1980s for analyzing the processes ...
  2. Idle Funds

    Money that is not invested and, therefore, earning no interest ...
  3. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  4. Lead Time

    The amount of time that elapses between when a process starts ...
  5. Revenue Per User - RPU

    A ratio used to express the profitability of a company on a per-user ...
  6. Revenue Per Employee

    An important ratio that looks at a company's sales in relation ...
Related Articles
  1. Doing More With Less: The Sales-Per-Employee ...
    Investing

    Doing More With Less: The Sales-Per-Employee ...

  2. The Impact Of Recession On Businesses
    Entrepreneurship

    The Impact Of Recession On Businesses

  3. Capital Structure
    Investing

    Capital Structure

  4. Variable Costs
    Investing

    Variable Costs

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center