CPIM Practice Exam

Which formula is used to calculate operation time per work order?

1. Setup time + (quantity × standard time per unit)

2. Standard time + actual labor hours

3. Inventory count × average time per item

4. Run time - downtime

The correct answer is: Setup time + (quantity × standard time per unit)

The formula used to calculate operation time per work order is indeed the sum of setup time and the product of the quantity of items and the standard time per unit. This means that you first account for any setup time, which is the time required to prepare equipment or systems for the production run. Then, you calculate the run time based on the number of units being produced and how long it takes to produce each unit as defined by the standard time. This approach provides a comprehensive overview of all the time allocated for completing a work order, including both the initial setup and the time to manufacture each piece. By breaking it down in this way, one can get a precise measure of the operation time, allowing for more accurate scheduling, planning, and resource allocation in the production process. Understanding this formula is crucial for efficient operations management, ensuring that production targets are met while minimizing waste.