What is the basis for customized standards?

Customized standards are based on detailed time or activity studies within a specific department because this method provides precise and tailored insights into how tasks are performed and how resources are utilized within that particular setting. By analyzing the actual time taken and resources used for specific activities, organizations can establish benchmarks that reflect their unique operational realities. This approach allows institutions to create standards that are relevant and realistic, ensuring they are aligned with their processes and objectives.

In contrast, historical data of the specific institution can provide useful insights, but it may not capture changes in efficiency or workload that current activity studies would reveal. Relative value scales established by industry groups are useful for standardization across similar organizations but may not reflect the specific circumstances of an individual institution. Predetermined standards set by external agencies often serve as guidelines but lack the granularity and tailored responsiveness that customized standards can achieve.