Deck 15: Appendix: Quality Management

Question 1

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

Answer 1

False

Question 2

The people best suited to set work standards are managers with input from industrial engineers.

Answer 2

False

Question 3

Job and process analysis should follow work measurement.

Answer 3

False

Question 4

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

Question 5

The learning curve does not apply to supervisory personnel, some skilled craftspeople, or jobs that have non-repetitive job tasks.

Question 6

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

A) standard time; normal time
B) standard time; desired time
C) normal time; desired time
D) normal time; standard time

Question 7

Unavoidable delays should not be included in time studies.

Question 8

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

Question 9

A performance rating factor (PRF) of 130 percent means that a worker is slow and needs 30 percent more time.

Question 10

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

Question 11

Predetermined time standards are advantageous since they avoid needing multiple performance ratings.

Question 12

In the sample size for work sampling, "p" will never be known exactly since it is the population parameter that is being estimated.

Question 13

A 90 percent learning curve implies faster learning than an 80 percent learning curve.

Question 14

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

Question 15

Allowances include time for all of the following EXCEPT:

A) fatigue.
B) equipment breakdowns.
C) rest periods.
D) poor scheduling.

Question 16

A performance rating factor (PRF) of 1.15 means:

A) a worker is working at a pace that is 15 percent faster than normal.
B) a worker is working at a pace that is 15 percent slower than normal.
C) a worker is working at a pace that is 15 percent faster than standard time.
D) a worker needs to add 15 percent to the standard time.

Question 17

The outputs from a work measurement study lead to the development of labor and equipment standards that are used for all of the following EXCEPT:

A) estimating workforce capacity.
B) determining fatigue and personal need allowances.
C) determining the cost of new work procedures.
D) providing accurate information for scheduling and sequencing.

Question 18

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.

Question 19

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

Question 20

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

A) Define and evaluate each task and activity.
B) Measure and record the time needed to perform each activity over a number of cycles.
C) Randomly observe work over a period of time to obtain a distribution of activities.
D) Determine the allowance factor for the work activity.

Question 21

Work standards _____.

A) improve motivation if set by managers
B) increase variability if set by workers
C) are best set informally
D) work best when designed by workers

Question 22

Define and relate normal time and standard time.

Question 23

A method of randomly observing work over a period of time to obtain a distribution of the activities that an individual or a group of employees performs is called _____.

A) learning curve analysis
B) time study
C) work sampling
D) work measurement

Question 24

The _____ states that the cost of doing any repetitive task, work activity, or project decreases as the accumulated experience of doing the job increases.

A) learning curve
B) experience curve
C) Deming philosophy
D) regression method

Question 25

Work sampling _____.

A) is based on normal distribution
B) is used for repetitive work activities
C) determines the proportion of time spent doing certain activities
D) requires a systematic (non-random) sample to obtain a distribution of activities

Question 26

Discuss several factors that can affect the applicability of the learning curve or experience curve and/or the amount of learning that occurs.

Question 27

Which of the following is NOT a practical issue when using learning curves?

A) Incentive systems and bonus plans may increase learning.
B) Complex, intellectual learning will be faster than learning simple tasks.
C) A contract phaseout may result in a lengthening of process times.
D) Keeping groups of employees together reaps a productivity benefit.

Question 28

All of following are true of learning curves EXCEPT:

A) they are not used for a pricing strategy.
B) they are affected by the ratio of manual to machine work.
C) 80 percent learning curves exhibit a step initial decline and then level off.
D) they are used in defense industries.

Question 29

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

A) a smaller cycle time.
B) the assumption of additive task times.
C) statistically significant variables.
D) confidence intervals for the prediction.

Question 30

Define work sampling. Give examples of both manufacturing and service applications.

Question 31

How are predetermined time standards useful?

Question 32

Describe an experience curve.

Question 33

Define work measurement and what it leads to from an operations perspective.

Question 34

Explain the use of regression analysis in establishing standard times with an example.

Question 35

Explain the concept of learning curves using an 80 percent learning curve as an example.

Question 36

Define time study and describe the basic procedures for conducting a time study.

Question 37

A job had a normal time of 2.43 minutes, an allowance of 20 percent, and a forecast demand of 120 units per day. How long should it take to produce one day's output?

Question 38

Predetermined time standards are _____.

A) macromovements
B) available in books and electronic tables
C) a quick way to directly add up and get standard time
D) best suited for old and stable manufactured goods

Question 39

Discuss the two different sides of the debate over work standards.

Question 40

Consider the following time study data.
a. If the performance rating factor for A = 1.15, B = 1.0, and C = 0.85, determine the normal time for the job.
b. If personal allowance is 7 percent, fatigue allowance is 12 percent, personal delay allowance is 9 percent, and avoidable delay is 4 minutes, determine the standard time for the job.

Question 41

For a work-sampling study, there is a 95 percent probability that the processing time of an activity has an error of less than 0.06 minutes. The best estimate we have for "p" is 0.30. Determine the sample size needed for a work-sampling study if no estimate of "p" is available.

Question 42

The Chester Table Company mass produces quality end tables for motels. They produce 5,000 end tables per week. The owner is trying to determine how many workers he needs. The workers work 40 hours per week but are idle about three percent of the time because of the cleaning of their area. Their performance rating is equal to one. The owner has developed these time standards for operations per table:
Transporting the table through the plant = 2 minutes
Table top = 10 minutes
One leg = 4 minutes
Finishing = 5 minutes
a. How long does it take (in minutes) to produce one table?
b. What is the labor standard (in minutes) for this operation?
c. What is the minimum number of workers needed to produce 5000 tables in one week?

Question 43

Determine the sample size for the following time study given a standard deviation of four minutes and a 98 percent probability that the value of the sample mean is within 1.5 minutes?

Question 44

Consider the work sampling information below.
a. If the performance rating factor for Q = 0.80, R = 1.10, and S = 1.10 and the total allowance is 17 percent, determine the normal time for the job.
b. With the allowance of 17 percent, determine the output per hour.

Question 45

A yacht manufacturer signed a contract to build five sailboats for a California resort. Assuming an 85 percent learning curve, how many labor-hours will it take to build all five sailboats if it took 7,000 standard hours to build the original sailboat?

Question 46

An employee was observed over an extended period of time for a work-sampling study with the following results:
While doing her job in a 40-hour workweek, the employee helped 120 face-to-face, walk-in customers. Determine the standard time in minutes that it took her to help each customer.

Question 47

A fast-food stand has a thriving business in downtown Portland. They serve 3,500 burgers; 3,000 orders of fries; and 4,000 soft drinks per week. The workers work 40 hours per week but are idle two percent of the time. The manager wants to try to become more efficient. He has done a time study and found:
It takes 1 additional minute per additional item. The average order size is 3 items.
a. What is the average number of orders per week?
b. What is the average cycle time (in minutes) per order?
c. What is the labor standard (in minutes) per order?
d. How many workers does the manager need per week?

Question 48

The manager at a sewing factory uses a piece?rate pay system. She has just received an order for 600 dresses from a discount house downtown. She is trying to figure out what her costs are for the project. She has conducted a time study and found the following times for operations:
2 minutes to sew one sleeve
3 minutes to sew body of the dress
3.5 minutes to hem all unfinished edges
1 minute to attach the collar
3 minutes to attach all buttons
The workers must sit idle while they wait for supplies on the conveyor belt for an average of 30 seconds. Their performance rating is equal to one. She pays the workers $6.00 per hour.
a. What is the allowance factor for the operation?
b. What is the labor standard (in minutes) per dress?
c. What is the labor cost per dress?
d. What is the labor cost for the entire order of 600 dresses?

Question 49

A manufacturer made a commitment to supply 20 units of a product. The first unit took 1,200 hours to make, the second unit took 900 hours, and the third unit took 768 hours. Determine the total number of hours required to make the first ten (10) items.

Question 50

Determine the sample size for the following time study given a standard deviation of three ounces and a 92 percent probability that the value of the sample mean is within two ounces?

Question 51

A manufacturer made a commitment to supply 20 units of a product. The first unit took 1,200 hours to make, the second unit took 900 hours, and the third unit took 768 hours. How many hours should it take to make the 20th unit?

Question 52

A company manufactures tractors and lawnmowers. They have received an order for six deluxe custom riding lawnmowers for a local golf course. They must develop a cost estimate for the order. It is estimated that the first lawnmower will take 90 hours of shop time and a 75 per-cent learning curve is expected. The labor rate is $18.00 per hour, and the pricing policy of the company is to charge 2.5 times the cost of labor for the order.
a. How many hours should the sixth lawnmower take?
b. How many labor-hours should the whole order take?
c. What is the customer's price for the whole order?
d. What is the price per lawnmower?
e. If the original time estimate for the first lawnmower is too low, and it actually takes 80 hours for the third lawnmower, what is the labor hour estimate for the first unit?
f. If it actually really takes 80 hours for the third lawnmower, what is the new total labor cost for the entire order?

Question 53

Locksmith Inc. has an order from a bank for 50 specially designed safes, one for each branch. It is estimated that the first safe will require 75 hours of shop time and a 90 percent learning curve is expected. The labor rate is $15.00 per hour and the pricing policy of the company is to triple the labor cost of the order.
a. How many labor-hours should the 50th unit require?
b. How many labor-hours will the whole order require?
c. What is the customer's price for each safe?

Question 54

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?

Question 55

Based on data from a work-sampling study, an office worker spends 21.5 percent of his time filing. Over the work-sampling period, he was idle 12 percent of the time. If the worker filed 420 items in a 40-hour workweek while performing other activities, and if his performance rating factor for filing was 0.95, determine the standard time, in minutes, he took to file an item.

Question 56

A furniture manufacturer has an order for 20 custom wine cabinets for a large hotel in Hawaii. It is estimated that the first cabinet will take 100 hours of shop time. An 85 percent learning curve is expected. The labor rate is $12.00 per hour. The pricing policy is to charge two times the labor cost for the order.
a. How many hours will the 20th wine cabinet take?
b. How many hours should the whole order take?
c. What is the price of each cabinet?