Gnash Motor Cars, Inc., employs a robotic spray booth to paint automobile bodies in its Flintstone plant. The robotic spray booth is capable of painting five cars per hour. Thus, its weekly theoretical capacity is 840 cars. Company engineers have set the rated speed of the spray booth at four cars per hour to allow for unavoidable downtime for maintenance and process irregularities.
-The output sacrificed based on the assumption that this spray booth can operate effectively 80% of the time is termed:

Question

Gnash Motor Cars, Inc., employs a robotic spray booth to paint automobile bodies in its Flintstone plant. The robotic spray booth is capable of painting five cars per hour. Thus, its weekly theoretical capacity is 840 cars. Company engineers have set the rated speed of the spray booth at four cars per hour to allow for unavoidable downtime for maintenance and process irregularities. 
-The output sacrificed based on the assumption that this spray booth can operate effectively 80% of the time is termed:

Quizplus · Accepted Answer

The output sacrificed due to setting the rated speed lower than the maximum capacity to account for maintenance and process irregularities, while assuming the booth operates effectively 80% of the time, is referred to as rate-based waste. This is because the waste is based on the rate at which the engineers have decided to operate the machinery, which is lower than its theoretical maximum capacity.