TABLE 12-10 One Criterion Used to Evaluate Employees in the Assembly Section

question 47

Multiple Choice

TABLE 12-10
One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced. The quality control department wants to find out whether there is a relationship between years of experience and defect rate. Since the job is repetitious, after the initial training period any improvement due to a learning effect might be offset by a loss of motivation. A defect rate is calculated for each worker in a yearly evaluation. The results for 100 workers are given in the table below.

-Referring to Table 12-10, what is the expected number of employees with less than 1 year of training time and a high defect rate?

• A) 4.17
• B) 4.60
• C) 5.28
• D) 9.17

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Definitions:

Cost Leadership Strategy

A business strategy focused on gaining a competitive advantage by being the lowest cost producer in the industry.

Gains In Productivity

Increases in output per unit of input, often realized through improvements in efficiency, technology, or methods of work.

Employee Benefits

Various types of non-wage compensation provided to employees in addition to their normal salaries or wages.

Organizational Structure

The way in which the work, authority, and systems of communication are organized within a company or institution.