Exam 15: Appendix: Quality Management

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How are predetermined time standards useful?

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When timing a work activity with multiple tasks, the general rule is to take the largest sample size estimate and use it for all activities or tasks.

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After developing a predetermined standard, stopwatch or work-sampling time studies need not be performed.

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For a time study, it is assumed that distribution of task times follows a Poisson distribution.

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A performance rating factor (PRF) of 1.15 means:

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Normal time needs to be adjusted for personal time and avoidable delays.

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Personal fatigue and delay allowances are added to _____ to arrive at _____.

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Work standards _____.

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Predetermined time standards are _____.

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Regression analysis is used to predict times based on different attributes of work.

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A company manufactures computer parts. They have received an order for 100 custom disc drives. It is estimated that the first drive will take 20 hours of shop time and an 80 percent learning curve is expected. The labor rate is $15.00, and the pricing policy is to charge 3 times the labor cost. a. How many hours will the 100th disc drive take? b. How many hours will the entire order take? c. What is the price of the entire order? d. What is the price per unit?

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Which of the following is NOT part of the general approach to time study?

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All of the following are advantages of using regression analysis to determine standard time EXCEPT:

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The performance rating factor and allowances are based on human judgment.

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Define and relate normal time and standard time.

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For an 80 percent learning rate, if the first unit requires 100 labor-hours, the 8th unit will require 64 hours.

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