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Q. Work study model of forecasting techniques?
These can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required. The starting point in a manufacturing company is the production budget. Prepared in the terms of volume of sales able products for the company as a whole, or volumes of output for the individuals departments. The budget of productive hours is then compiled using standard hours for the direct labour. The standard hours per unit of the output are then multiplied by the planned volume of units to be produced to give the total number of planned hours for the period. This is then divided by the number of actual working hours for an individual operator to show the number of operators required. Allowance will have to be made for idle time. Following is a highly simplified example of this procedure:
a. Planned output for next year 0000 unit
b. Standard hours per unit: 5
c. Planned hours of the year: 100000
d. Productive hours per man or year: 2000
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