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A Methods and Measurements Analyst needs to develop a time standard for a certain task. The task involves use of 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 perform this task five times. The observations were made in an air-conditioned, well-lighted training facility, at ground level, with all tools and equipment clean and readily available.
a. What is the actual average time for this task?
b. What is the normal time for this task if the employee worked at a 20% faster pace than is typical for adequately trained workers?
c. What is standard time for this task if allowances are 8% constant and 6% variable?
d. If the analyst then thought more carefully about his experiment, and decided that the variable allowances needed to be increased to match the real (outside, unair-conditioned) work environment, and that the proper variable allowance was not 6% but 12%, what is the revised standard time?
Production
The process of creating goods and services, from the input of resources to the output of finished products.
Price Level
The average of the current prices of goods and services in the economy, often compared over time to assess inflation.
Equilibrium GDP
The level of real GDP at which aggregate supply equals aggregate demand, resulting in a stable economy without tendencies to change.
Recession
A fleeting period of economic diminution, involving a dip in trade and industry work, usually defined by a decrease in GDP over two following quarters.
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