Answered: Define Typical allowance percentages…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Define Typical allowance percentages for working conditions?

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Allowances refer to the extra time that is added to the normal time allocated to any task. Allowances are given to workers to compensate for the delays that may occur during performing the task. Delays can occur due to various factors such as tea breaks, equipment wear and tear with time, water breaks, toilet breaks.

Following types of allowances can be considered while doing the time studies:

Relaxation allowances - Relaxation allowances are given to work so that he can recover from fatigue and generally the allowance percentage value is between 5-7 %. Other factors might include standing, mental stress, abnormal posture, light conditions, and visual strains.
Contingency allowances – These allowances are taken into consideration to cover for unexpected delays.
Other special types of allowances – These allowances consider few factors such as shutdown time, tooling time, setup and change over time, rework, training and implementation.

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