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APPENDIX 1

TRUE/FALSE

1. Job and process analysis should follow work measurement.

ANS: F

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

ANS: T

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

ANS: T

4. Unavoidable delays should not be included in time studies.

ANS: F

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

ANS: F

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

ANS: F

7. 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.

ANS: T

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

ANS: T

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

ANS: T

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

ANS: F

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

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engineers.

ANS: F

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

ANS: T

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

ANS: F

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

ANS: T

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

ANS: F

MULTIPLE CHOICE

1. 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.

ANS: B

2. 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.

ANS: A

3. Allowances include time for all of the following EXCEPT:

a. fatigue.
b. equipment breakdowns.
c. rest periods.
d. poor scheduling.

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ANS: D

4. 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

ANS: D

5. 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.

ANS: C

6. 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.

ANS: A

7. 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

ANS: B

8. 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

ANS: D

9. 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

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ANS: C

10. 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

ANS: C

11. 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.

ANS: A

12. 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

ANS: B

13. 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.

ANS: B

SHORT ANSWER

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

ANS:
Work measurement is a systematic procedure for the analysis of work and determination of times
required to perform key tasks in processes. Work measurement leads to the development of
labor and equipment time standards that are used for estimating workforce and equipment
capacity, establishing budgets, determining what new work procedures will cost, evaluating time
and cost tradeoffs among process design alternatives, establishing wage-incentive systems,
monitoring and evaluating employee performance and productivity, and providing accurate
information for scheduling and sequencing.
Without accurate time standards, it is impossible to perform these tasks. Standard times are

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management's anchor in an uncertain operating environment.

2. Define and relate normal time and standard time.

ANS:
Normal time = Observed Time x Performance Rating Factor or, OT x PRF

Normal time is the expected time required to perform some work activity at a normal pace,
under normal operating conditions, and using a prescribed method. A normal pace is a pace that
can be consistently performed by the average employee without undue fatigue under normal
operating conditions. Typically, three or more highly trained work-study analysts make these
independent judgments about "normal" performance and the average PRF.
Standard time = Normal Time (1 + Allowance Factor)
Standard time is the normal time adjusted for allowances. Allowances include time for labor
fatigue and personal needs, equipment breakdowns, rest periods, information delays, etc. Most
allowance factors are in the range of 10 to 20 percent.

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

ANS:
Regression analysis is used to predict times based on different attributes of the work rather than
by adding up individual task times. Consider the problem on developing standard time estimates
for installing electrical power lines. The regression model obtained from this analysis is:
Time = 0.237 + 2.804(Poles) + 0.514(Wire) + 1.09(Cross Arms) + 0.170(Insulators) + 1.50(Guy
Wires)
If the utility faces a situation in which they estimate installation of 4 poles, 1,500 feet of wire, 7
cross arms, 12 insulators and no guy wires, the predicted time for the job would be:
Time + 0.237 + 2.804(4) + 0.514(1,500) + 1.09(7) + 0.170(12) + 1.50(0) = 792.123 hours

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

ANS:
Time study is the development of a standard time by observing a task and analyzing it
with the use of a stopwatch. The general approach to time study can be described as
follows:
1. Define and evaluate each task and activity.
2. Measure and record the time needed to perform each task or activity over a number of
cycles.
3. Rate the employee's performance of each task or activity.
4. Use the performance rating to determine the normal task time.
5. Determine the allowance factor for the work activity.
6. Determine the standard time.

5. How are predetermined time standards useful?

ANS:
Predetermined time standards describe the amount of time necessary to accomplish specific
movements (called micromotions), such as moving a human hand a certain distance or lifting a
one-pound part. These small time estimates have been documented and are available in books

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and electronic tables. If a job, work activity, or task can be broken down into such elemental
tasks, an estimate of the normal time is made by adding up these predetermined times. This
approach is especially appealing for developing standard times for new manufactured goods and
some service tasks. Predetermined time standards were originally developed for labor-intensive
use but data sets exist for machine micromovements such as an automated drill press.

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

ANS:
Critics such as W. Edwards Deming have condemned work standards on the basis that they
destroy intrinsic motivation in jobs and rob workers of the creativity necessary for continuous
improvement. That is certainly true when managers dictate standards in an effort to meet
numerical goals set up by their superiors. However, the real culprit in that case is not the
standards themselves but managerial style. The old style of managing reflects Taylor's
philosophy: Managers and engineers think; workers do what they are told. A total quality
approach suggests that empowered workers can manage their own processes with help from
managers and professional staff.

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

ANS:
Work sampling is 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 perform. Work sampling
determines the proportion of time spent doing certain activities on a job. Work sampling is based
on statistics, and like all statistical procedures, it can suffer from sampling error and lead to
erroneous conclusions simply by chance. Work sampling has been used to evaluate the work of
nurses, production supervisors, doctors, secretaries, hotel maids, machinists, managers, package
delivery employees, and students.

8. Explain the concept of learning curves using an 80 percent learning curve as an example.
ANS:
The learning curve concept is that direct labor unit cost decreases in a predictable manner as the
experience in producing the unit increases. For most people, for example, the longer they play a
musical instrument or a video game, the better and faster they become. The same is true in
assembly operations, which was recognized in the 1920s at Wright-Patterson Air Force Base in the
assembly of aircraft. Studies showed that the number of labor-hours required to produce the
fourth plane was about 80 percent of the amount of time spent on the second; the eighth plane
took only 80 percent as much time as the fourth; the 16th plane, 80 percent of the time of the
eighth, and so on.

9. Describe an experience curve.

ANS:
A broader extension of the learning curve is the experience curve. The experience curve states
that the cost of doing any repetitive task, work activity, or project decreases as the accumulated
experience of doing the job increases. The terms "improvement curve," "experience curve," and
"manufacturing progress function" are often used to describe the learning phenomenon in the
aggregate context. Marketing research, software design, developing engineering specifications
for a water plant, accounting and financial auditing of the same client, and implementing a

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software integration project are examples of this broader view. The idea is that as each time
experience doubles, costs decline by 10 percent.

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

ANS:
The following are the factors that can affect the applicability of the learning curve:
1. The learning curve does not usually apply to supervisory personnel.
2. A change in the ratio of indirect labor to direct labor can alter the rate of learning.
3. The institution of incentive systems, bonus plans, and the like might increase learning.
4. Changes in product design, raw material usage, technology, and/or the process may alter the
learning rate.
5. Humans learn simple tasks quickly and reach a limit, this follows the exponential curve; for
complex intellectual tasks, learning is less limited and follows an S-shaped curve.
6. A contact phaseout might lengthen the processing time for the last units produced because
workers want to prolong their income period.
7. The lack of proper maintenance of tools and equipment can have a negative impact on
learning.
8. Keeping work groups together reaps a productivity benefit, but might stifle innovation.
9. The transfer of workers might cause an interruption or regression in learning.
10. Learning curves focus on direct labor and ignore the contribution to efficiency of indirect
labor.

PROBLEMS

1. Consider the following time study data.

Observation Cycles (Actual Time in Minutes)

Work
Task 1 2 3 4 5 6 7
A 0.12 0.17 0.19 0.11 0.15 0.16 0.20
B 0.91 0.95 0.97 0.88 0.86 0.80 0.94
C 1.52 1.48 1.40 1.60 1.65 1.52 1.47

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.

ANS: Normal time = Observed time × Performance rating factor, and Standard time = Normal time
(1 + Allowance factor).
a. 2.37 minutes
b. 3.04 minutes

2. 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?

ANS: Standard time = Normal time (1 + Allowance factor)

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349.9 minutes

3. Consider the work sampling information below.

Cycles (Actual Time in Seconds)

Work
Task 1 2 3 4 5 6
Q 25 30 27 31 22 20
R 40 52 35 42 47 38
S 60 62 50 55 62 58

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.

ANS: Normal time = Observed time × Performance rating factor, and Standard time = Normal
time (1 + Allowance factor).
a. 130.83 seconds
b. 23.5 units per hour

4. 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.

ANS: Normal time = Observed time × Performance rating factor, and Standard time = Normal time
(1 + Allowance factor).
Therefore, the worker takes 1.31 minutes to file an item.

5. An employee was observed over an extended period of time for a work-sampling study with
the following results:

Performance
Activity Percentage of Time Rating Factor
On the Phone 30 1.15
Filing 35 0.70
Face-to-Face with Customer 25 1.10
Idle 10 -----

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.

ANS: Standard time = Normal time (1 + Allowance factor)

Therefore, the employee needed 6.05 minutes for each face-to-face, walk-in customer.

6. 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?

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ANS: n ≥ (Zα/2)2 σ2 / E2,
Therefore, n = 38 units.

7. 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?

ANS: n ≥ (Zα/2)2 σ2 / E2,

Therefore, n = 7.

8. 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.

ANS: n ≥ (Zα/2)2 p (1-p) / E2,

Therefore, n = 224

9. 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?

ANS: Using the learning curve function, y = ax -b, the total labor-hours required is = 28,204.72
hours.

10. 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?

ANS: Using the learning curve function, y = ax -b, the total labor-hours required is = 457.44 hours.

11. 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.

ANS: Using the learning curve function, y = ax -b, the total labor-hours required is = 6721.08 hours.

12. 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?

ANS:
a. Labor-hours for the 50th safe = (75) (0.552) = 41.49 hours
b. Labor-hours for the whole project = (75) (32.14) = 2410.5 hours
c. Customer's price per safe = [(2410.5) ($15.00) (3)] / 50 = 108,472.5 / 50 = $2,169.45 per safe.

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13. 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?

ANS:
a. Hours for the 100th disc drive = (20) (0.227) = 4.54
b. Hours for the entire order = (20) (32.65) = 653
c. Cost of the total order = (653) ($15.00) (3) = $29,385
d. Price per disc drive = $29,385 / 100 = $293.85

14. 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
percent 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?

ANS:
a. Labor-hours for the sixth lawnmower = (90) (0.476) = 42.84 hours
b. Labor-hours for the entire order = (90) (3.934) = 354.06
c. Labor cost for the entire order = (354.06) ($18.00) = $6373.08
Customer's price for the entire order = ($6,373.08) (2.5) = $15,932.70
d. Price per lawnmower = [($6,373.08) (2.5)] / 6 = $15,932.70 / 6 = $2,655.45
e. (Labor-hours for the first unit) (0.634) = 80
Labor-hours for the first unit = 80 / 0.634 = 126.183 hours
f. New labor-hours for the entire order = (126.183) (3.934) = 496.404 hours
New labor cost for the entire order = (496.404) ($18.00) = $8,935.27

15. 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?

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c. What is the price of each cabinet?

ANS:
a. Labor-hours for the 20th wine cabinet = (100) (0.495) = 49.5 hours
b. Labor-hours for the total order = (100) (12.40) = 1,240
c. Price per wine cabinet = [(1,240) ($12.00) (2)] / 20 = $1,488

16. 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?

ANS:
a. Cycle time for one table = 2 + 10 + 4(4) + 5 = 33 minutes
b. Labor standard = 33 / (1 - 0.03) = 34.02 minutes
c. Number of workers needed
= (5000 tables / week) (34.02 min / table) / (2400 min / week) = 70.88 = 71 workers

17. 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:

Elements for One Item Minutes

Take order 2
Time taken for kitchen to fill 5
order
Pick up order & put in bag 1
Take customer’s money 2

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?

ANS:
a. Average number of orders per week = (3,500 + 3,000 + 4,000) / 3 = 10,500 / 3 = 3,500

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b. Average cycle time = 2 + 5 + 1 + 2 + 2(1) = 12 minutes
c. Labor standard = 12 / (1 - 0.02) = 12.24 minutes
d. Number of workers needed = (3500 orders / week) (12.24 min / order) / (2400 min / week) =
17.85 = 18

18. 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?

ANS:
a. Cycle time = 2(2) + 3 + 3.5 + 1 + 3 = 14.5 minutes
Idle time = 0.5 minutes
Allowance factor = 0.5 / (14.5 + 0.5) = 0.033
b. Labor standard = 14.5 / (1 - 0.033) = 15 minutes
c. Labor cost per dress = (15 min / dress) ($6.00 / hour) / (60 min / hour) = $1.50
d. Total order cost = (600 dresses) ($1.50 / dress) = $900

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