Jay Bole Is in the Process of Developing a Standard

question 101

Multiple Choice

Jay Bole is in the process of developing a standard for the labour cost of one unit of Product X. According to the design manual, it takes a skilled worker 30 minutes to produce one unit of Product X when the workshop is operating at peak condition. However, Product X is quite complex and even a skilled worker operating in high efficiency often needs another 5 minutes to adjust the tools, re-oil the machine and rework some aspects of the product. A skilled worker is paid $30 per hour, while the company pays 20 per cent on-costs on top of this.
Jay decides to develop a perfection standard. The standard labour cost for one unit of Product X is

• A) $15.
• B) $17.50.
• C) $18.
• D) $21.

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Definitions:

Limited Open-door Policy

A policy where managers encourage employees to come forward with their concerns, questions, or suggestions, but with certain restrictions or scheduled times.

Interruptions

Unplanned events that break continuity or focus in tasks, conversations, or workflow.

Open-door Policy

A management approach where executives are approachable and available to employees for consultation, fostering a culture of openness and communication.

Workplace E-mail Systems

Workplace E-mail Systems are digital platforms used within organizations to facilitate communication and information exchange among employees.