Physical standards:

The first step in manufacturing a product is to determine standard
quantity of different materials to be used under the manufacturing process; various subassemblies,
components, other small parts, etc. Besides this the length of time an average
worker should take to complete a job. These standards so determined are known as physicalstandards. The purposes of setting physical standards are:
(a) To secure economies in manufacture, and
(b) Set selling prices in advance to make it possible to estimate the cost. In printing
industry, for example, the standards relating to the printed output are necessary in submitting
quotations, for proposed jobs.
In manufacturing organisations, the task of setting physical standards is assigned to the
industrial engineering department.