📘 Definition: Lost Man Hours are the total hours of productivity lost due to various inefficiencies, delays, or disruptions in work processes. In audits, this term is often used to quantify the impact of absenteeism, idle time, strikes, system failures, poor planning, or bottlenecks on workforce efficiency.
🧾 Relevance in Audit: Performance Audits by CAG of India and internal audit departments often measure Lost Man Hours to evaluate:
Labour productivity
Operational inefficiency
Impact of disruptions on output
Effectiveness of manpower planning
It is especially relevant in sectors like:
Railways
Factories/Workshops
Construction/Infrastructure projects
Public utilities
📊 Example in Indian Railways Audit:
If a workshop has 1,000 employees and 10% are absent on a working day (say 100 employees), and each works 8 hours:
Lost Man Hours = 100 × 8 = 800 man-hours per day
Similarly, if a machinery breakdown causes 200 workers to remain idle for 3 hours:
Lost Man Hours = 200 × 3 = 600 man-hours
📝 Audit Findings May Include:
Number of man-hours lost due to absenteeism
Idle labour cost due to poor resource planning
Delay in projects due to non-availability of skilled manpower
Lost hours due to workplace accidents or disputes
✅ Why It Matters in Audit Reports:
Helps in cost-benefit analysis
Indicates wastage of public resources
Forms the basis for recommendations on manpower optimization