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

In a time study at a Pune auto-component unit, the average observed time for an element is 2.00 minutes and the operator's performance rating is 120% against a standard rating of 100%. What is the basic (normal) time for the element?

The basic time is 2.40 minutes. Basic time equals observed time multiplied by the rating ratio, so 2.00 × 120/100 gives 2.40. Because the operator worked faster than the standard pace, the normalised time must be greater than the observed time.

  1. A1.67 minutes
  2. B2.40 minutesCorrect
  3. C2.00 minutes
  4. D2.20 minutes

Explanation

Basic time = observed time × rating/standard rating = 2.00 × 120/100 = 2.40 minutes. Dividing by 1.20 gives 1.67, which inverts the rating factor and is wrong. Rating above standard means the operator worked faster than normal, so basic time exceeds observed time.

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