Asked by Torrance Thomas on May 08, 2024

verifed

Verified

The actual 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 time standard?

A) 8.80 minutes
B) 8.88 minutes
C) 10 minutes
D) 19.0 minutes
E) 19.8 minutes

Average Observed Time

The mean time noted for a task in a work measurement study, calculated by observing and recording the time taken to complete the task over several cycles.

Performance Rating

An assessment of an individual's or organization's performance, often compared against predetermined standards or objectives.

Time Standard

A benchmark or reference point for the expected time required to complete a task, often used in manufacturing and productivity analysis.

  • Master the methodology for determining normal time and standard time from data recorded through observation.
verifed

Verified Answer

PB
Patrick BatemanMay 09, 2024
Final Answer :
B
Explanation :
Time standard = (observed time / performance rating) + allowances
= (10 / 0.8) + (10% of 10)
= 12.5 minutes
However, the question asks for the time standard, assuming 100% performance rating, which means allowances are included in the time standard. Therefore, we subtract the allowances from the time standard:
Time standard = 12.5 - (10% of 12.5)
= 12.5 - 1.25
= 11.25 minutes
Rounding to two decimal places, the answer is 8.88 minutes (B).