Setup Time for a Product Is 12 Hours

question 31

Multiple Choice

Setup time for a product is 12 hours.A firm that uses JIT and produces the same product has reduced setup time by 1 hour.Setup labour is $20 per hour.What would be the currently attainable standard for setup time if the company wants to reduce non-value-added costs by 40 percent next year?

• A)7.6 hours
• B)7.2 hours
• C)6.6 hours
• D)4.8 hours

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Definitions:

Recall

The mental process of retrieving information from the past, often without the aid of explicit cues.

Events

Occurrences or happenings that are significant in some way to the environment or individuals.

Mood-congruent Memory

The tendency to recall experiences that are consistent with one's current mood.

State-dependent Memory

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.