Sunday, January 29, 2017

MBA Operations Management - Test Bank - Chapter 10

Operations Management, 12e (Heizer/Render/Munson)
Chapter 10  Human Resources, Job Design, and Work Measurement

Section 1   Human Resource Strategy for Competitive Advantage

1) The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized.
Answer:  TRUE
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

2) Equitable pay alone cannot achieve a reasonable quality of work life in an organization.
Answer:  TRUE
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

3) Mutual trust means that both management and employee strive to meet common objectives.
Answer:  FALSE
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

4) Technology, location, and layout decisions are all possible constraints on human resource strategy.
Answer:  TRUE
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

5) A NASCAR pit crew consists of how many members?
  1. A) 7
  2. B) 5
  3. C) 9
  4. D) 10
  5. E) 4
Answer:  A
Diff: 3

6) Most pit crew members have background experience in what area?
  1. A) mechanical engineering
  2. B) athletics
  3. C) car mechanics
  4. D) automobile race driving
  5. E) No specific area—crew members come from all sorts of backgrounds.
Answer:  B
Diff: 2

7) Which of the following best describes mutual commitment in an organization?
  1. A) an instance in which management is committed to the employees and the employees are committed to management
  2. B) both management and the employees are committed to the same objective
  3. C) both management and the employees are committed, but to different objectives
  4. D) management obtains the commitment of the employees to a stated objective
  5. E) both management and the employees can rely on each other
Answer:  B
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

8) Mutual trust is:
  1. A) when employees have gained the trust of management.
  2. B) reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employee.
  3. C) when management has gained the trust of the employees.
  4. D) when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product.
  5. E) when management and the employees both agree on common objectives.
Answer:  B
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

9) The objective of a human resource strategy is to:
  1. A) produce the demand forecast at the lowest possible labor cost.
  2. B) match employment levels with demand.
  3. C) achieve a reasonable quality of work life at low cost.
  4. D) manage labor and design jobs so people are effectively and efficiently utilized.
  5. E) hire the most diversified workforce possible.
Answer:  D
Diff: 2
Key Term:  Human resource strategy for competitive advantage

10) ________ means a job that is not only reasonably safe and for which the pay is equitable but that also achieves an appropriate level of both physical and psychological requirements.
Answer:  Quality of work life
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

11) What is quality of work life? What is its relation to a firm's human resource strategy?
Answer:  Quality of work life means a job that is not only reasonably safe and for which the pay is equitable but that also achieves an appropriate level of both physical and psychological requirements. Quality of work life is one of the two primary goals of a human resource strategy, the other of which is efficient utilization of people.
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

12) What is mutual trust? What is its link to a firm's human resource strategy?
Answer:  Mutual trust is reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employee. One of the two primary goals of a human resource strategy is to ensure a reasonable quality of life in an atmosphere of mutual commitment and trust.
Diff: 2
Objective:  LO 10.1 Describe labor-planning policies

Section 2   Labor Planning

1) Labor planning determines employment stability.
Answer:  TRUE
Diff: 1
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

2) The two extremes of employment stability policy are "follow demand exactly" and "keep demand constant."
Answer:  FALSE
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

3) Maintaining a stable workforce generally results in the firm paying higher wages than a firm that varies workforce level with demand.
Answer:  FALSE
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

4) Flextime is a system that allows employees, within limits, to determine their own work schedules.
Answer:  TRUE
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

5) The two most basic policies associated with employment stability are:
  1. A) job enrichment and job enlargement.
  2. B) employment for life and guaranteed minimum wage.
  3. C) follow demand exactly and hold employment constant.
  4. D) incentive plans and piece-rate plans.
  5. E) full-time and part-time.
Answer:  C
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

6) A manufacturing plant allows its engineers to come in at 7 A.M. plus or minus an hour but still requires them to work 8-hour days. Which of the following scheduling techniques is the firm employing?
  1. A) flextime
  2. B) constant employment
  3. C) part-time status
  4. D) flexible workweek
  5. E) compressed workweek
Answer:  A
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

7) Working four shifts of ten hours each instead of five shifts of eight hours each is known as which of the following?
  1. A) flextime
  2. B) constant employment
  3. C) part-time status
  4. D) flexible workweek
  5. E) flexwork
Answer:  D
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

8) ________ is a means of determining staffing policies dealing with employment stability, work schedules, and work rules.
Answer:  Labor planning
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

9) ________ refers to a work schedule that deviates from the normal or standard five 8-hour days.
Answer:  Flexible workweek
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

10) What are the advantages and the disadvantages of the employment-stability policy of "hold employment constant?"
Answer:  Holding employment levels constant maintains a trained workforce and keeps hiring, layoff, and unemployment costs to a minimum. But when demand is low, people may be underutilized; and when demand is high, the firm may not have the human resources it needs to be able to respond.
Diff: 2
Key Term:  Labor planning
Objective:  LO 10.1 Describe labor-planning policies

Section 3   Job Design

1) An enlarged job has more responsibility than the same job enriched.
Answer:  FALSE
Diff: 2
Key Term:  Job enlargement
Objective:  LO 10.2 Identify the major issues in job design

2) Job rotation is a version of job enlargement.
Answer:  TRUE
Diff: 2
Key Term:  Job rotation
Objective:  LO 10.2 Identify the major issues in job design

3) Fredrick W. Taylor is credited with introducing psychology into the workplace.
Answer:  FALSE
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

4) Psychological factors have little relevance in the design of assembly line jobs because those jobs involve physical products and production technology.
Answer:  FALSE
Diff: 1
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

5) The Hawthorne studies, which showed that there is a dynamic social system in the workplace, took place in the 1960s.
Answer:  FALSE
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

6) Hackman and Oldham's five desirable characteristics of job design include job significance and autonomy.
Answer:  TRUE
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

7) Job expansion can lead to increased labor cost because of the extra workers hired in the expansion.
Answer:  FALSE
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design


8) Profit-sharing is a motivation and incentive system where executives receive stock options.
Answer:  FALSE
Diff: 3
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design
9) Four of the components of job design are:
  1. A) employment stability, work schedules, work sampling, and motivation & incentive systems.
  2. B) job specialization, job expansion, psychological components, and self-directed teams.
  3. C) labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling.
  4. D) ergonomics and work methods, method time measurement, work schedules, and incentive systems.
  5. E) labor specialization, time studies, work sampling, and pre-determined time standards.
Answer:  B
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

10) What is the behavioral approach to job design that involves giving the worker more tasks requiring similar skills?
  1. A) job enlargement
  2. B) job enrichment
  3. C) job enhancement
  4. D) job rotation
  5. E) job involvement
Answer:  A
Diff: 2
Key Term:  Job design

11) Which of Hackman and Oldham's five job characteristics refers to providing a worker a say in the work methods that he/she wishes to utilize?
  1. A) skill variety
  2. B) job identity
  3. C) job significance
  4. D) feedback
  5. E) autonomy
Answer:  E
Diff: 2
Key Term:  Job design
AACSB:  Reflective thinking
Objective:  LO 10.2 Identify the major issues in job design


12) Which of the following terms implies an increase in responsibility and control in the vertical direction?
  1. A) job rotation
  2. B) job enrichment
  3. C) job re-design
  4. D) job enlargement
  5. E) job satisfaction
Answer:  B
Diff: 2
Key Term:  Job enrichment
Objective:  LO 10.2 Identify the major issues in job design
13) Which of the following statements describes job rotation?
  1. A) The job contains a larger number of similar tasks.
  2. B) The job includes some planning and control necessary for job accomplishment.
  3. C) The operator works on different shifts on a regular basis.
  4. D) The operator's schedule is flexible.
  5. E) The operator is allowed to move, for example, from one type of CNC machine to another.
Answer:  E
Diff: 2
Key Term:  Job rotation
Objective:  LO 10.2 Identify the major issues in job design

14) The difference between job enrichment and job enlargement is that:
  1. A) enlarged jobs involve vertical expansion, while enriched jobs involve horizontal expansion.
  2. B) enriched jobs enable an employee to do a number of boring jobs instead of just one.
  3. C) job enlargement is more psychologically satisfying than job enrichment.
  4. D) job enrichment is suitable for all employees, whereas job enlargement is not.
  5. E) enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion.
Answer:  E
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

15) When a worker obtains clear and timely information about his/her performance, his/her job includes which of the following characteristics?
  1. A) feedback
  2. B) skill variety
  3. C) job identity
  4. D) job significance
  5. E) autonomy
Answer:  A
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design


16) Which of the following is not a limitation of job expansion?
  1. A) higher capital cost
  2. B) higher wage rates
  3. C) smaller labor pool
  4. D) higher training costs
  5. E) All of the above are limitations of job expansion.
Answer:  E
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design
17) Management and labor share the labor cost reductions in which of these compensation schemes?
  1. A) bonus system
  2. B) quota system
  3. C) Gilbreth plan
  4. D) Scanlon plan
  5. E) measured day work plan
Answer:  D
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

18) Which of the following statements regarding incentive systems is FALSE?
  1. A) Bonuses are often used at the executive levels.
  2. B) About half of all American manufacturing firms use productivity incentives.
  3. C) Profit-sharing systems provide some part of the profit for distribution to employees.
  4. D) The Scanlon plan is based on individual productivity.
  5. E) Increasing use of cross-training has led to increasing use of knowledge-based pay systems.
Answer:  D
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

19) ________ is an approach that specifies the tasks that constitute a job for an individual or a group.
Answer:  Job design
Diff: 1
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

20) ________ is the grouping of a variety of tasks using the same approximate skill level.
Answer:  Job enlargement
Diff: 2
Key Term:  Job enlargement
Objective:  LO 10.2 Identify the major issues in job design

21) ________ is a method of giving an employee more responsibility that includes some of the planning and control necessary for job accomplishment.
Answer:  Job enrichment
Diff: 2
Key Term:  Job enrichment
Objective:  LO 10.2 Identify the major issues in job design

22) The ________ studies showed that there is a dynamic social system in the workplace.
Answer:  Hawthorne
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design
23) ________ involves enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization.
Answer:  Employee empowerment
Diff: 2
Key Term:  Employee empowerment
Objective:  LO 10.2 Identify the major issues in job design

24) A(n) ________ is a group of empowered individuals working together to reach a common goal.
Answer:  self-directed team
Diff: 2
Key Term:  Self-directed team
Objective:  LO 10.2 Identify the major issues in job design

25) ________ systems provide some portion of any profit for distribution to employees.
Answer:  Profit-sharing
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

26) Provide at least three examples of nonmonetary incentives.
Answer:  Awards, recognition, and certain preferences such as a preferred work schedule.
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

27) How does labor specialization assist in reducing labor costs? (List three ways.)
Answer:  (1) development of dexterity and faster learning by the employee because of repetition; (2) less loss of time because the employee would not be changing jobs or tools; (3) development of specialized tools and the reduction of investment because each employee has only a few tools needed for a particular task
Diff: 2
Key Term:  Labor specialization (or job specialization)
Objective:  LO 10.2 Identify the major issues in job design

28) Identify five limitations of job expansion.
Answer:  (1) higher capital cost; (2) individual differences (some individuals prefer simpler jobs); (3) higher wage rates; (4) smaller labor pool; (5) higher training costs
Diff: 3
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design


29) It is said that job expansion has both a vertical component and a horizontal component. Explain, with reference to such terms as job enrichment, job rotation, and job enlargement.
Answer:  Vertical expansion gives employees more planning and/or control over their work, which is job enrichment. Horizontal expansion adds tasks, through job rotation or job enlargement. Job enrichment relates primarily to increasing the cognitive or intellectual requirements for the job. Job enlargement relates primarily to an increase in the number of tasks to be performed. Job rotation implies a formal arrangement for job switching among a particular group of workers within a specific set of jobs.
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design
30) What impact did the Hawthorne studies have on human resource strategy?
Answer:  The Hawthorne studies introduced psychology into the workplace. They showed that there is a dynamic social system in the workplace and that this social system can be more important than physical working conditions.
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

31) Identify the five components of job design.
Answer:  (1) job specialization; (2) job expansion; (3) psychological components; (4) self-directed teams; (5) motivation and incentive systems
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

32) Identify Hackman and Oldham's five desirable characteristics of job design.
Answer:  (1) skill variety; (2) job identity; (3) job significance; (4) autonomy; (5) feedback
Diff: 2
Key Term:  Job design
Objective:  LO 10.2 Identify the major issues in job design

Section 4   Ergonomics and the Work Environment

1) The physical environment in which employees work may affect the quality of work life, but it does not affect their performance and safety.
Answer:  FALSE
Diff: 1
Objective:  LO 10.3 Identify major ergonomic and work environment issues

2) Ergonomics is a branch of economics that deals with costs of scheduling workers.
Answer:  FALSE
Diff: 2
Key Term:  Ergonomics
Objective:  LO 10.3 Identify major ergonomic and work environment issues


3) One of the elements of ergonomics is:
  1. A) allocating work time based on economic studies.
  2. B) the cost justification of technology.
  3. C) designing tools and machines that facilitate human work.
  4. D) assembly line balancing.
  5. E) the establishment of time standards.
Answer:  C
Diff: 2
Key Term:  Ergonomics
Objective:  LO 10.3 Identify major ergonomic and work environment issues
4) As tool using animals, human performance is affected by:
  1. A) noise, illumination, and vibration.
  2. B) temperature, humidity, and air quality.
  3. C) strength, reflexes, perception.
  4. D) deign of pedals, levers, buttons.
  5. E) all of the above
Answer:  E
Diff: 2
Key Term:  Ergonomics
Objective:  LO 10.3 Identify major ergonomic and work environment issues

5) Extended periods of exposure to decibel levels above ________ has been judged to be permanently damaging.
  1. A) 85 dB
  2. B) 90 dB
  3. C) 95 dB
  4. D) 100 dB
  5. E) none of the above
Answer:  A
Diff: 2
Key Term:  Ergonomics
Objective:  LO 10.3 Identify major ergonomic and work environment issues

6) In a perfectly fitting chair, and you are a male in the 50th percentile, your chair should be:
  1. A) 15.7 inches high.
  2. B) 16.7 inches high.
  3. C) 17.7 inches high.
  4. D) 18.7 inches high.
  5. E) none of the above
Answer:  E
Diff: 3
Objective:  LO 10.3 Identify major ergonomic and work environment issues


7) The 50th percentile female is 62.9 inches tall and should have a chair:
  1. A) 15.7 inches high.
  2. B) 16.7 inches high.
  3. C) 17.7 inches high.
  4. D) 18.7 inches high.
  5. E) none of the above
Answer:  A
Diff: 3
Objective:  LO 10.3 Identify major ergonomic and work environment issues

8) Often called human factors, the study of work is known as ________.
Answer:  ergonomics
Diff: 2
Key Term:  Ergonomics
Objective:  LO 10.3 Identify major ergonomic and work environment issues
9) Describe some impacts of noise in the workplace.
Answer:  Specific answers will vary, but should include some of the following. High levels of sound will damage hearing. Extended periods of exposure to decibel levels above 85 dB are permanently damaging. OSHA requires ear protection if exposure to 85 dB equals or exceeds 8 hours. Even at low levels, noise and vibration can be distracting and can raise a person's blood pressure, so managers make substantial effort to reduce noise and vibration through good machine design, enclosures, or insulation.
Diff: 3
Objective:  LO 10.3 Identify major ergonomic and work environment issues

Section 5   Methods Analysis

1) An operations chart, or right-hand/left-hand chart, points out wasted motion and idle time.
Answer:  TRUE
Diff: 2
Key Term:  Operations chart
Objective:  LO 10.4 Use the tools of methods analysis

2) Which of the following is not analyzed using methods techniques?
  1. A) movement of capital
  2. B) body movement
  3. C) movement of individuals
  4. D) movement of material
  5. E) crew activity
Answer:  A
Diff: 2
Key Term:  Methods analysis
Objective:  LO 10.4 Use the tools of methods analysis


3) Methods analysis focuses on:
  1. A) the design of the machines used to perform a task.
  2. B) establishing time standards.
  3. C) reducing the number of skills needed for the completion of a task.
  4. D) issues such as the movement of individuals or material.
  5. E) evaluating training programs to see if they are efficient.
Answer:  D
Diff: 2
Key Term:  Methods analysis
Objective:  LO 10.4 Use the tools of methods analysis

4) Which of the following is used by methods analysis in analyzing body movement at the workstation level?
  1. A) MTM chart
  2. B) flow diagram
  3. C) operations chart
  4. D) process chart
  5. E) improvement chart
Answer:  C
Diff: 2
Key Term:  Operations chart
Objective:  LO 10.4 Use the tools of methods analysis
5) The phrase, "designed to show economy of motion by pointing out wasted motion and idle time (delay)," describes which of the following?
  1. A) a flow diagram
  2. B) an activity chart
  3. C) an operations chart
  4. D) a process chart
  5. E) a work sample
Answer:  C
Diff: 2
Key Term:  Operations chart
Objective:  LO 10.4 Use the tools of methods analysis

6) Methods analysis employs which of the following charts in its analysis of the movement of workers and materials?
  1. A) micro-motion chart
  2. B) flow diagram
  3. C) activity chart
  4. D) man-machine chart
  5. E) movement chart
Answer:  B
Diff: 2
Key Term:  Flow diagram
Objective:  LO 10.4 Use the tools of methods analysis


7) Flow diagrams are used to analyze:
  1. A) movement of people or material.
  2. B) utilization of an operator and machine.
  3. C) body movements.
  4. D) time taken by various activities.
  5. E) unnecessary micro-motions.
Answer:  A
Diff: 2
Key Term:  Flow diagram
Objective:  LO 10.4 Use the tools of methods analysis

8) Activity charts help analyze:
  1. A) movement of people or material.
  2. B) utilization of an operator and machine.
  3. C) body movements.
  4. D) activities that can cause injuries.
  5. E) unnecessary micro-motions.
Answer:  B
Diff: 2
Key Term:  Activity chart
Objective:  LO 10.4 Use the tools of methods analysis

9) ________ are drawings used to analyze movement of people or material.
Answer:  Flow diagrams
Diff: 2
Key Term:  Flow diagram
Objective:  LO 10.4 Use the tools of methods analysis
10) What is methods analysis?
Answer:  Methods analysis focuses on how a task is accomplished. It involves developing work procedures that are safe and produce quality products efficiently.
Diff: 2
Key Term:  Methods analysis
Objective:  LO 10.4 Use the tools of methods analysis

11) What are operations charts used for?
Answer:  Operations charts are used to analyze body movement. They are designed to show economy of motion by pointing out wasted motion and idle time.
Diff: 2
Key Term:  Operations chart
Objective:  LO 10.4 Use the tools of methods analysis

Section 6   The Visual Workplace

1) Kanbans and andons are both elements of the visual workplace, because they are visual signals that replace printouts and paperwork.
Answer:  TRUE
Diff: 2
Key Term:  Visual workplace
AACSB:  Written and oral communication

2) "Visual workplace" is a term coined by Hawthorne, and it refers to the need for proper lighting at employee workstations.
Answer:  FALSE
Diff: 2
Key Term:  Visual workplace
AACSB:  Written and oral communication

3) The visual workplace:
  1. A) uses low-cost visual devices to share information.
  2. B) is an effective means of rapid communication in a dynamic workplace.
  3. C) replaces difficult-to-understand paperwork.
  4. D) eliminates non-value-added activities by making problems and standards visual.
  5. E) All of the above describe the visual workplace.
Answer:  E
Diff: 1
Key Term:  Visual workplace
AACSB:  Written and oral communication

4) The visual workplace:
  1. A) uses low-cost visual devices to share information.
  2. B) may use andons.
  3. C) may use clocks to remind employees of the goal.
  4. D) may use kanbans to reduce inventory.
  5. E) All of the above describe the visual workplace.
Answer:  E
Diff: 1
Key Term:  Visual workplace
AACSB:  Written and oral communication
5) Which of the following is a visual signal at a machine that notifies support personnel about the machine's status?
  1. A) Andon
  2. B) Endon
  3. C) Indon
  4. D) Ondon
  5. E) Undon
Answer:  A
Diff: 3
Key Term:  Visual workplace
AACSB:  Written and oral communication


6) Describe how the visual workplace can increase information flow, improve efficiency, and eliminate non-value-adding activities. Support your argument with a few examples.
Answer:  Visuals reduce the time spent sharing information, especially in signaling hazards, low-stock conditions, poor quality, etc. Time spent reading instructions or taking measurements are non-value-adding if a simple visual can replace them. Examples include graphs of stock conditions, painted warnings, markers, kanbans, andons, and others.
Diff: 2
Key Term:  Visual workplace
AACSB:  Written and oral communication

Section 7   Labor Standards

1) The purpose of labor standards is to accurately define the skills required to complete a job.
Answer:  FALSE
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

2) Two uses of labor standards are to determine the labor content of items produced and to determine staffing needs.
Answer:  TRUE
Diff: 1
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

3) One use of labor standards is to determine what constitutes a fair day's work.
Answer:  TRUE
Diff: 1
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

4) Labor standards based on historical experience are relatively inexpensive to obtain.
Answer:  TRUE
Diff: 1
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards
5) The preferred method of choice for setting labor standards is to base them on historical experience.
Answer:  FALSE
Diff: 1
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

6) Standard time may be less than average observed time.
Answer:  TRUE
Diff: 3
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study


7) The classical stopwatch study, or time study, was originally proposed by Western Electric's Hawthorne Commission in the 1920s.
Answer:  FALSE
Diff: 2
Key Term:  Time study
Objective:  LO 10.6 Compute the normal and standard times in a time study

8) A time-study procedure involves timing a sample of a worker's performance and using it as a basis for setting a standard time.
Answer:  TRUE
Diff: 2
Key Term:  Time study
Objective:  LO 10.6 Compute the normal and standard times in a time study

9) The allowance factor that increases normal time to standard time compensates for inadequate worker training and lack of worker dexterity.
Answer:  FALSE
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study

10) Normal time is always less than the average observed time.
Answer:  FALSE
Diff: 2
Key Term:  Normal time
Objective:  LO 10.6 Compute the normal and standard times in a time study

11) Standard time is always greater than normal time, due to the inclusion of allowances for personal time, delay, and fatigue.
Answer:  TRUE
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study

12) Personal and fatigue allowances can include amounts for the effects of lighting, heat and humidity, and noise.
Answer:  TRUE
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study
13) The allowances that convert normal time to standard time have three components: personal time allowances, delay allowances, and fatigue allowances.
Answer:  TRUE
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study


14) If a manager conducting a time study needed an accuracy of ±0.1 minutes, rather than ±0.2 minutes, the adequate sample size would have to be twice as large.
Answer:  FALSE
Diff: 3
Key Term:  Time study
Objective:  LO 10.7 Find the proper sample size for a time study

15) Work sampling and time studies are similar in that the analyst in both cases records the time taken by the worker to accomplish each step of the task.
Answer:  FALSE
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

16) A therblig is a very small amount of time: one hundred-thousandth of an hour.
Answer:  FALSE
Diff: 2
Key Term:  Therbligs
Objective:  LO 10.5 Identify four ways of establishing labor standards

17) An advantage of predetermined time standards is that the standard can be set before a task is actually performed.
Answer:  TRUE
Diff: 2
Key Term:  Predetermined time standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

18) Most unions do not accept the use of predetermined time standards.
Answer:  FALSE
Diff: 2
Key Term:  Predetermined time standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

19) Work sampling estimates the percent of time that a worker spends on various tasks.
Answer:  TRUE
Diff: 1
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

20) An advantage of work sampling is that it completely breaks down work elements.
Answer:  FALSE
Diff: 2
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards
21) Normal time equals the average observed time multiplied by the allowance factor.
Answer:  FALSE
Diff: 2
Key Term:  Normal time
Objective:  LO 10.6 Compute the normal and standard times in a time study

22) Suppose that the allowance factor for a job is 0.10, and the normal time is 5 hours. What is the standard time?
  1. A) 5.6 hours
  2. B) 50.0 hours
  3. C) 4.9 hours
  4. D) 5.1 hours
  5. E) 4.5 hours
Answer:  A
Diff: 2
Key Term:  Standard time
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

23) Labor standards are defined as the:
  1. A) preset activities required to perform a job.
  2. B) amount of space required by a specific crew to perform the job.
  3. C) standard set of procedures to perform the job.
  4. D) standard labor agreements.
  5. E) amount of time required to perform a job or part of a job.
Answer:  E
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

24) Labor standards can help to determine which of the following?
  1. A) labor content of a product
  2. B) staffing needs
  3. C) incentive plans
  4. D) efficiency
  5. E) all of the above
Answer:  E
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

25) Labor standards were pioneered by Frank and Lillian Gilbreth and:
  1. A) Frederick Taylor.
  2. B) Eli Whitney.
  3. C) Henry Ford.
  4. D) Alan Smith.
  5. E) GE.
Answer:  A
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

26) Which of the following is not a method used to set labor standards?
  1. A) historical experience
  2. B) time studies
  3. C) predetermined time standards
  4. D) work sampling
  5. E) government laws and regulations
Answer:  E
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

27) Normal time for a stopwatch study is equal to which of the following?
  1. A) Average observed time × Performance rating factor
  2. B) Average observed time + Performance rating factor
  3. C) Average observed time / Performance rating factor
  4. D) Average observed time - Performance rating factor
  5. E) Performance rating factor / Average observed time
Answer:  A
Diff: 2
Key Term:  Normal time
Objective:  LO 10.6 Compute the normal and standard times in a time study

28) Suppose that the allowance factor for a job is 0.5 and the normal time is 5 hours. What is the standard time?
  1. A) 5 hours
  2. B) 2.5 hours
  3. C) 10 hours
  4. D) 7.5 hours
  5. E) cannot determine with the given information
Answer:  C
Diff: 2
Key Term:  Standard time
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

29) A worker completed a task 10 times during a period in which a typical trained employee completes the task 8 times. What is the worker's performance rating?
  1. A) 125%
  2. B) 150%
  3. C) 100%
  4. D) 112.5%
  5. E) cannot be determined with the given information
Answer:  A
Diff: 3
Key Term:  Normal time
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

30) Which of the following is NOT a use of labor standards?
  1. A) labor content of items produced
  2. B) cost and time estimates prior to production
  3. C) crew size and work balance
  4. D) basis of wage-incentive plans
  5. E) All of the above are uses of labor standards.
Answer:  E
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

31) Which of the following techniques may NOT provide reliable and accurate labor standards?
  1. A) historical experience
  2. B) methods time measurement (MTM)
  3. C) time studies
  4. D) work sampling
  5. E) predetermined time standards
Answer:  A
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

32) Timing a sample of a worker's performance and using it as a basis for setting a standard time describes which of the following?
  1. A) predetermined time standards
  2. B) time studies
  3. C) work sampling
  4. D) methods time measurement
  5. E) left-hand, right-hand charting
Answer:  B
Diff: 2
Key Term:  Time study
Objective:  LO 10.6 Compute the normal and standard times in a time study

33) A manager who is conducting a time study now needs an accuracy of ±0.1 minutes, rather than ±0.2 minutes as in the past. Because of this change in accuracy, the new required sample size becomes:
  1. A) one-fourth as large.
  2. B) one-half as large.
  3. C) twice as large.
  4. D) four times as large.
  5. E) one-tenth larger.
Answer:  D
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.7 Find the proper sample size for a time study

34) In time studies, normal time is:
  1. A) average observed time multiplied by a performance rating factor.
  2. B) larger than standard time.
  3. C) determined by historical experience.
  4. D) converted to standard time by the performance rating factor.
  5. E) one hour later during the summer months.
Answer:  A
Diff: 2
Key Term:  Normal time
Objective:  LO 10.6 Compute the normal and standard times in a time study

35) The smaller the percentage established for allowances:
  1. A) the closer is normal time to standard time.
  2. B) the closer is average observed time to normal time.
  3. C) the larger is the performance rating factor.
  4. D) the larger is the required sample size.
  5. E) the larger is the number of observations in the work sampling.
Answer:  A
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

36) In time studies, personal time allowances are often established in which of the following ranges?
  1. A) 0 - 2%
  2. B) 3 - 5%
  3. C) 4 - 7%
  4. D) 6 - 10%
  5. E) 10 -15%
Answer:  C
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study

37) The average observed time for a given job is 10 minutes. The performance rating is 80%, and allowances are set by contract at 10%. What is the standard time?
  1. A) 8.80 minutes
  2. B) 8.88 minutes
  3. C) 10.00 minutes
  4. D) 19.00 minutes
  5. E) 19.80 minutes
Answer:  B
Diff: 2
Key Term:  Standard time
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

38) The data below represent time study observations for an assembly operation. Assume a 7% allowance factor. What is the normal time for element 3?

Observations (times in minutes)
Element Performance Rating 1 2 3 4 5
1 100% 1.5 1.6 1.4 1.5 1.5
2 90% 2.3 2.2 2.1 2.2 2.4
3 115% 1.7 1.9 1.9 1.4 1.6
4 100% 3.5 3.6 3.6 3.6 3.2

  1. A) 1.7 min.
  2. B) 1.96 min.
  3. C) 2.11 min.
  4. D) 10.1 min.
  5. E) 11.2 min.
Answer:  B
Diff: 2
Key Term:  Normal time
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

39) The accuracy of a labor standard is to be within ± 5%, and the confidence level is 95%. The standard deviation of the sample is 2 and the mean is 8. What sample size should be used?
  1. A) 8
  2. B) 10
  3. C) 96
  4. D) 127
  5. E) 68
Answer:  C
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.7 Find the proper sample size for a time study

40) Which of these is the most common predetermined time standard?
  1. A) CSD
  2. B) TMU
  3. C) RCH
  4. D) SAE
  5. E) MTM
Answer:  E
Diff: 2
Key Term:  Predetermined time standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

41) A work sampling study requires an acceptable error level of 10 percent and z = 2 for 95.45 percent confidence. The adequate sample size is ________ if the sample proportion is thought to be as large as 50 percent, but ________ if the sample proportion is thought to be about 20 percent.
  1. A) 50; 20
  2. B) 100; 64
  3. C) 100; 16
  4. D) 20; 50
  5. E) 200; 80
Answer:  B
Diff: 2
Key Term:  Work sampling
AACSB:  Analytical thinking
Objective:  LO 10.5 Identify four ways of establishing labor standards

42) Sample observations of a claims processor made over a 160-hour work month reveal that the worker produced a total of 384 completed claims forms. The performance rating was 80%. The worker was idle 20% of the time (so that idle time should be subtracted from the total time when computing the average observed time). The allowance factor is 8%. What is the normal time per unit?
  1. A) 0.42 minutes
  2. B) 16.0 minutes
  3. C) 17.4 minutes
  4. D) 20.0 minutes
  5. E) 21.7 minutes
Answer:  B
Diff: 3
Key Term:  Normal time
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

43) Sample observations of a claims processor made over a 160-hour work month reveal that the worker produced a total of 384 completed claims forms. The performance rating was 80%. The worker was idle 20% of the time (so that idle time should be subtracted from the total time when computing the average observed time). The allowance factor is 8%. What is the standard time per unit?
  1. A) 0.42 minutes
  2. B) 16.0 minutes
  3. C) 17.4 minutes
  4. D) 20.0 minutes
  5. E) 21.7 minutes
Answer:  C
Diff: 3
Key Term:  Standard time
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

44) A time measurement unit, or TMU, is:
  1. A) the same as a Therblig.
  2. B) 0.00001 minute.
  3. C) 0.00001 hour.
  4. D) the duration of the easiest GET motion.
  5. E) an historical experience standard.
Answer:  C
Diff: 2
Key Term:  Time measurement units (TMUs)
Objective:  LO 10.5 Identify four ways of establishing labor standards

45) Therbligs:
  1. A) were invented by Frederick W. Taylor.
  2. B) were used during the scientific management era, and are no longer in use.
  3. C) are hyperactive rodent-like pets, whose name is associated with time standards.
  4. D) were named by Frank Gilbreth.
  5. E) are .0006 minutes in length.
Answer:  D
Diff: 2
Key Term:  Therbligs
Objective:  LO 10.5 Identify four ways of establishing labor standards

46) Therbligs are:
  1. A) the smallest unit of time used in methods time measurement exercises.
  2. B) the largest unit of time used in methods time measurement exercises.
  3. C) basic physical elements of motion as used in methods time measurement exercises.
  4. D) the full range of motions required to complete a job as used in methods time measurement exercises.
  5. E) the smallest amount of time required to complete a job.
Answer:  C
Diff: 2
Key Term:  Therbligs
Objective:  LO 10.5 Identify four ways of establishing labor standards

47) Predetermined time standards are an outgrowth of basic motions called:
  1. A) mini-movements.
  2. B) micro-motions.
  3. C) SAE standards.
  4. D) TMUs.
  5. E) therbligs.
Answer:  E
Diff: 2
Key Term:  Therbligs
Objective:  LO 10.5 Identify four ways of establishing labor standards

48) Among the advantages of predetermined time standards are all EXCEPT which of the following?
  1. A) Unions accept them as fair.
  2. B) They are available before a task is actually performed.
  3. C) They can only be determined after work actually takes place.
  4. D) They can be established in a laboratory setting.
  5. E) No performance ratings are necessary.
Answer:  C
Diff: 2
Key Term:  Predetermined time standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

49) What is a technique for estimating the percent of time a worker spends on various tasks?
  1. A) stopwatch time study
  2. B) simultaneous motion study
  3. C) work sampling
  4. D) standard elemental (historical) times
  5. E) predetermined (published) time standards
Answer:  C
Diff: 2
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

50) A bank manager wants to determine the percent of time the bank's tellers are working and idle. He decides to use work sampling, and his initial estimate is that the tellers are idle 20% of the time. Approximately how many observations should be taken to be 95% confident that the results will not be more than 5% away from the true result?
  1. A) 6
  2. B) 16
  3. C) 44
  4. D) 210
  5. E) 246
Answer:  E
Diff: 2
Key Term:  Work sampling
AACSB:  Analytical thinking
Objective:  LO 10.5 Identify four ways of establishing labor standards

51) The tally sheet data from a work sampling study provides information regarding:
  1. A) the number of wasted motions.
  2. B) the level of difficulty in a motion.
  3. C) the percent of time spent on various tasks.
  4. D) the quality of the work environment.
  5. E) the number of micro-motions involved.
Answer:  C
Diff: 2
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

52) An advantage of work sampling is that:
  1. A) no observation is required.
  2. B) it involves study of the equipment only.
  3. C) a performance rating is necessary.
  4. D) the time spent observing the employee is relatively short.
  5. E) it is more effective than time studies when task times are short.
Answer:  D
Diff: 2
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

53) A disadvantage of work sampling is that:
  1. A) it tends to be less accurate, particularly when task times are short.
  2. B) it observes several workers simultaneously.
  3. C) it is more expensive than time-study methods.
  4. D) it is more intrusive than time-study methods, and therefore generates more complaints.
  5. E) All of the above are disadvantages of work sampling.
Answer:  A
Diff: 2
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

54) ________ allowances are those that account for the distance from employees to restrooms, water fountains, and other facilities.
Answer:  Personal time
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study

55) A(n) ________ involves timing a sample of a worker's performance and using it as a basis for setting a standard time.
Answer:  time study
Diff: 1
Key Term:  Time study
Objective:  LO 10.6 Compute the normal and standard times in a time study

56) ________ divide(s) manual work into small basic elements that have established and widely accepted times.
Answer:  Predetermined time standards
Diff: 2
Key Term:  Predetermined time standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

57) ________ estimates the percent of time that a worker spends on various tasks.
Answer:  Work sampling
Diff: 1
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

58) Explain in broad terms, using a sentence or two, what is meant by the "classical stopwatch study." To what extent is it still in use today?
Answer:  The classical stopwatch study, or time study, involves timing a sample of a worker's performance and using it to set a standard. Stopwatch studies are the most widely used labor standard method today.
Diff: 2
Key Term:  Time study
Objective:  LO 10.6 Compute the normal and standard times in a time study

59) List the eight steps used to develop a time study-based labor standard.
Answer:  (1) Define the task to be studied. (2) Divide the task into precise elements. (3) Decide how many times to measure the task. (4) Time and record elemental times and ratings of performance.
(5) Compute the average observed (actual) time. (6) Determine performance rating (work pace) and then compute the normal time for each element. (7) Add the normal times for each element to develop a total normal time for the task. (8) Compute the standard time.
Diff: 3
Key Term:  Time study
Objective:  LO 10.6 Compute the normal and standard times in a time study

60) If historical experience data are so widely available and so easy to obtain, why aren't they more widely used to set labor standards?
Answer:  These data are not objective and have unknown levels of accuracy. It is unknown whether they represent a reasonable work pace or not, or whether unusual occurrences are included.
Diff: 2
Key Term:  Labor standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

61) Define standard time.
Answer:  The standard time for a task provides an adjustment to the total normal time by allowing for personal needs, unavoidable work delays, and fatigue. The standard time is determined by dividing the normal time for a task by the quantity (1 - allowance factor).
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study

62) In time studies, what are the three broad categories of allowances?
Answer:  (1) personal time allowances; (2) delay allowances; (3) fatigue allowances
Diff: 2
Key Term:  Standard time
Objective:  LO 10.6 Compute the normal and standard times in a time study

63) What are predetermined time standards?
Answer:  Predetermined time standards divide manual work into small basic elements that already have established times (based on very large samples of workers).
Diff: 2
Key Term:  Predetermined time standards
Objective:  LO 10.5 Identify four ways of establishing labor standards

64) Identify the five steps of the work-sampling procedure.
Answer:  (1) Take a preliminary sample to obtain an estimate of the parameter value (e.g., percent of time a worker is busy). (2) Compute the sample size required. (3) Prepare a schedule for observing the worker at appropriate times. (4) Observe and record worker activities. (5) Determine how workers spend their time (usually as a percentage).
Diff: 3
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

65) What are five advantages of work sampling over time-study methods?
Answer:  (1) Because a single observer can observe several workers simultaneously, it is less expensive. (2) Observers usually do not require much training, and no timing devices are needed. (3) The study can be temporarily delayed at any time with little impact on the results. (4) Because work sampling uses instantaneous observations over a long period, the worker has little chance of affecting the study's outcome. (5) The procedure is less intrusive and therefore less likely to generate objections.
Diff: 3
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

66) What are three disadvantages of work sampling?
Answer:  (1) It does not divide work elements as completely as time studies. (2) It can yield biased or incorrect results if the observer does not follow random routes of travel and observation. (3) Because it is less intrusive, it tends to be less accurate; this is particularly true when job content times are short.
Diff: 2
Key Term:  Work sampling
Objective:  LO 10.5 Identify four ways of establishing labor standards

67) A time study of a certain service task found an average time of 15 minutes, with a standard deviation of 5 minutes. These figures were based on a sample of 100 measurements. Is the sample large enough that we are 95% confident that standard time is within ±5% of its true value?
Answer:
n =  =  = 170.74 or 171

No, the sample was too small.
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.7 Find the proper sample size for a time study
68) How many observations would be necessary for a time studies analyst to be 99% confident that the average time is within ± .1 minutes of the true value, if the average time is 10.5 minutes and the standard deviation is 3 minutes?
Answer:
n =  =  = 5990.76 or 5991 samples
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.7 Find the proper sample size for a time study

69) A work sampling study requires an acceptable error level of ± 10 percent and 95 percent confidence.
  1. What is the required sample size if the sample proportion busy is as large as 50 percent?
  2. What is the required sample size if the sample proportion busy is estimated to be about 20 percent?
Answer:
  1. (1.962× .5 ×.5) / .12= .9604 / .01 = 96.04 (96 should be fine, or can round up to 97)
  2. (1.962× .2 ×.8) / .12= .6147 / .01 = 61.47 or 62
Diff: 2
Key Term:  Work sampling
AACSB:  Analytical thinking
Objective:  LO 10.5 Identify four ways of establishing labor standards

70) In a preliminary work sample of an operation, out of 50 observations the operator was observed idle in 5 observations. What sample size is required for a work sampling study if the desired confidence level is 99% and the desired accuracy level is ± 5%?
Answer:
n =  =  = 239.63 or 240 samples
Diff: 2
Key Term:  Work sampling
AACSB:  Analytical thinking

71) A brake system installer in an auto factory has an actual average time of 10 minutes on her task. The performance rating of the worker timed was estimated at 110%. Practice in this department is to allow 9% for allowances.
  1. Find the normal time for the operation.
  2. Compute the standard time for the operation.
Answer:
  1. Normal time = (10 minutes)(1.10) = 11 minutes

  1. Standard time = =  = 12.09 minutes
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

72) A Methods and Measurements Analyst needs to develop a time standard for a certain task. The task involves use of a ruler, square, and portable electric saw to mark and cut the "notch" in a rafter (a standard carpentry task of home construction). In a preliminary study, he observed one of his workers performing this task five times. The observations were made in an air-conditioned, well-lit training facility, at ground level, with all tools and equipment clean and readily available.

Observation: 1 2 3 4 5
Task time (seconds): 82 74 80 83 76

  1. What is the actual average time for this task?
  2. What is the normal time for this task if the employee worked at a 20% faster pace than is typical for adequately trained workers?
  3. What is standard time for this task if allowances sum to 14%?
  4. If the analyst then thought more carefully about his experiment and decided that the allowances needed to be increased to match the real (outside, not air-conditioned) work environment, and that the proper allowance was not 14% but 20%, what is the revised standard time?
Answer:
  1. Actual average time is 79 seconds.
  2. Normal time is (79)(1.20) = 94.8 seconds.
  3. Standard time is 94.8 / (1 - .14) = 110.23 seconds.
  4. The revised standard time is 94.8/(1 - .20) = 118.5 seconds.
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

73) A task involves positioning two metal parts with a rubber gasket sandwiched between them, inserting two bolts into predrilled holes, threading a nut onto each bolt, and tightening each bolt with a pneumatic wrench. In a preliminary study, the manager observed one of his workers performing this task five times. The observations were made in an air-conditioned, well-lit training facility, at ground level, with all tools and equipment clean and readily available.

Observation: 1 2 3 4 5
Task time (seconds): 50 54 60 66 56

  1. What is the average observed time for this task?
  2. What is the normal time for this task if the employee worked at a 10% slower pace than is typical for adequately trained workers?
  3. What is standard time for this task if allowances sum to 14%?
Answer:
  1. Actual observed time is 286/5 = 57.2 seconds.
  2. Normal time is (57.2)( 0.90) = 51.48 seconds.
  3. Standard time is 51.48/(1 - .14) = 59.86 seconds.
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

74) An operation in a television factory has an average observed time of 6 minutes. The performance rating of the worker timed was estimated at 90%. Practice in this department is to provide 8% for allowances.
  1. Find the normal time for the operation.
  2. Compute the standard time for the operation.
  3. Recompute the standard time if an additional fatigue allowance of 8% is factored in.
Answer:
  1. Normal time = (6 minutes)(0.90) = 5.4 minutes

  1. Standard time = =  = 5.87 minutes

  1. New standard time = =  = 6.43 minutes
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

75) An initial analysis of a laboratory activity resulted in the first table below. After this analysis, the managers determined that their element descriptions were not as accurate as they should have been–they had left out an element, underestimated a distance, and understated the need for accuracy. They revised the table of element data, which appears in the second table.

Original Activity: Pouring tube specimen
Element description Element code TMU
Get tube from rack AA2 35
Get stopper, place on counter AA2 35
Get centrifuge, place at sample tube AD2 45
Pour (3 sec.) PT 83
Place tubes in rack (simo) PC2 40
TOTAL TMU


Revised Activity: Pouring tube specimen
Element description Element code TMU
Get tube from rack AC3 70
Get stopper, place on counter AA2 35
Get centrifuge, place at sample tube AD2 45
Pour (3 sec.) PT 83
Get stopper, place on tube AC1 40
Place tubes in rack (simo) PC2 40
TOTAL TMU

Calculate the total standard minutes for the original activity "pouring tube specimen." Calculate the total standard minutes for the revised activity "pouring tube specimen." What is the increase, in seconds, from the first version to the second? (Round calculations to four decimal places.)
Answer:  The elements of the original description add to 238 TMU. The total standard minutes for the original description is thus 238 × .0006 = 0.1428 minutes. After the elements were revised, the activity totals 313 TMU. Total standard minutes rises to 313 × .0006 = 0.1878 minutes. The increase is 0.0450 minutes or 2.7000 seconds.
Diff: 2
Key Term:  Predetermined time standards
AACSB:  Analytical thinking
Objective:  LO 10.5 Identify four ways of establishing labor standards

76) A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive program will pay $1 per unit produced above standard rates. A worker is timed at an average of 280 seconds per unit, with a performance rating of 105%. The plant has an allowance factor of 13%. If the worker later produces 100 units in an 8 hour shift, how much would he receive under the incentive plan?
Answer:
Standard time = (Average observed time × PF) / (1 - AF) = 280 ∗ 1.05/ (1 - .13) = 337.931 seconds.
Available time = (8 hours)(60 minutes/hr)(60 seconds/minute) = 28,800 seconds available.
Standard production = Available time / Standard time = 28,800 / 337.931 = 85.22 units
The worker produced 100 units, or ~15 more than standard (students may round up the standard production to 86, giving only 14 more units); thus, he would receive $15 (or $14) in incentive pay.
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.6 Compute the normal and standard times in a time study

77) In a time study, what is the required sample size to be 95% confident that the observed average time is within ± 2% of the actual value, if the process has a standard deviation of 1 minute and mean of 50 minutes?
Answer:  n = (zs/h)2 = [(1.96 × 1) / (0.02 × 50)]2 = 3.8416 = 4 samples
Diff: 2
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.7 Find the proper sample size for a time study

78) Suppose that a time study analyst takes a sample of size 60 observations. The process mean is 100 seconds, and the standard deviation is 3 seconds. If the max error can be no more than ± 1 second, how confident can the analyst be in the results?
Answer:  Apply equation n = (zs/e)2 to find z: 60 = [(z)(3) / 1]2, or 7.746 = 3z, or z = 2.582
From Table 10.2, the confidence is 99.0%.
Diff: 3
Key Term:  Time study
AACSB:  Analytical thinking
Objective:  LO 10.7 Find the proper sample size for a time study

Section 8   Ethics

1) Ethical work environment decisions by managers may be guided by which of the following?
  1. A) state agencies
  2. B) trade associations
  3. C) insurers
  4. D) employees
  5. E) all of the above
Answer:  E
Diff: 2
AACSB:  Ethical understanding and reasoning
Learning Outcome:  Discuss the role of operations management in corporate social responsibility and sustainability


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OPERATIONS MANAGEMENT - 2017 - COLLECTION
FREE DOWNLOAD
EBOOKS
Operations Management, 2015, 12th Edition, William J. Stevenson - Free Download Link
Operations Management, Sustainability and Supply Chain Management, 11th Edition, 2014, Jay Heizer, Barry Render - Free Download Link
Operations Management: Sustainability and Supply Chain Management, 12th Edition, Jay Heizer, Barry Render, Chuck Munson, 2017
Principles of Operations Management: Sustainability and Supply Chain Management, 10th Edition, 2017
Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
Introduction to Operations and Supply Chain Management, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 
Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman, 2016
Free Online Course Materials
1. Operations Management Ebooks - Free Downloads
2. Slides - 11th Edition - Free Downloads
3. Slides - 12nd Edition - Free Downloads
4. Full List of Videos Case Studies - Link
5. All articles about Operations Management
http://top20mba.com/mba-cases/94-mba-operation-management
2017 Updates
6. QUIZ, Multiple choice questions and answers
7. CASE STUDY GUIDES
8. Video Case study guides

For Test Bankz, Quiz Answers and Case study Guides, email to: wincapsimtips@gmail.com
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FREE DOWNLOADS:
1. Operations Management: Sustainability and SCM, 12th Edition, Jay Heizer, 2017
2. Operations Management, Sustainability and SCM, 11th Ed, 2014, Jay Heizer
3. Principles of Operations Management: Sustainability and SCM, 10th Ed, Jay Heizer, 2017
Free Download Link
4. Operations Management, 2017, 12th Edition, William J. Stevenson
Free Download Link
5. Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, 2016
6. Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
7. Introduction to Operations and SCM, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 
8. Hotel Operations Management, 3rd Edition, David K. Hayes, 2017Ebooks – Free Download Links
Videos – Youtube channel links


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