If the Values in a Control Chart Follow a Pattern

question 88

Multiple Choice

If the values in a control chart follow a pattern (instead of being random) ,then ______.

• A)we can say that a special cause is present
• B)the process is within control
• C)the operator is out of control
• D)there is excessive common cause variation

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Definitions:

Standard Hours Allowed

The amount of time that should be taken to complete a specific amount of work, according to predefined standards.

Labour Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the standard rate per hour.

Standard Cost Per Mip

Standard cost per MIP refers to the benchmark or predetermined cost assigned to manufacturing one unit of measurement or milepost in production, used for budgeting and performance evaluation.

Direct Labour

Compensation for employees who are directly involved in manufacturing products or providing services.