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CMA Intermediate · Operations Management and Strategic Management · Control Measures - Time and Motion Study, Method Study, Work Study

A time study gives a basic time of 4.00 minutes per piece for a task. The company allows relaxation and other allowances totalling 20% of the standard time (i.e., allowances are expressed as a percentage of the standard time, not of basic time). What is the standard time per piece?

The standard time is 5.00 minutes per piece. Since the allowance is 20% of standard time, basic time forms 80% of it, so 4.00 divided by 0.80 gives 5.00. Adding 20% to basic time would wrongly give 4.80 minutes.

  1. A4.80 minutes
  2. B3.20 minutes
  3. C5.00 minutesCorrect
  4. D4.20 minutes

Explanation

If allowances are 20% of standard time, basic time is 80% of standard time. Standard time = 4.00 / 0.80 = 5.00 minutes. Check: 20% of 5.00 = 1.00, and 4.00 + 1.00 = 5.00. The option 4.80 wrongly adds 20% on basic time.

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