Good post on Jeff Sutherland blog about the purpose of time sheets.

To sum it up:

  • They demotivate developers
  • 10-15% loss of productivity is the minimum
  • Developers have to fake the time to fill them out properly
  • Erroneous data is used for reporting and management makes bad decisions
  • Customers are deceived
  • They have nothing to do with quality code production
  • They focus the whole organization on phony data instead of production 
Even better, take a look at its graph.  High quality work are on the X axis and number of hours worked during a week are on the Y axis.  Even if your people work 20 hours a week, you get the same quality score as those putting 40 hours per week.