OBSERVATIONS (MINUTES) 1 2 3 4 5 PERFORMANCE RATING (%) ELEMENT Prepare daily reports 35 40 33 42 39 Photocopy results Label and package reports 3 3 Distribute reports aphotocopying machine broken; included as delay in the allowance factor. bPower outage; included as delay in the allowance factor. 120 12 10 36a 15 13 110 5 5. 4 90 15 18 21 17 45b 85

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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Question
Based on a careful work study in the Hofstetter Corp., the results shown in the following table have been observed:                                                                                                                                    a) Compute the normal time for each work element.
b) If the allowance for this type of work is 15%, what is the standard time?
c) How many observations are needed for a 95% confidence level within ±5% accuracy?  (Hint: Calculate the sample size of each element.)
OBSERVATIONS (MINUTES)
1 2 3 4 5
PERFORMANCE
RATING (%)
ELEMENT
Prepare daily reports 35 40 33 42 39
Photocopy results
Label and package reports 3 3
Distribute reports
aphotocopying machine broken; included as delay in the allowance factor.
bPower outage; included as delay in the allowance factor.
120
12 10 36a 15 13
110
5
5.
4
90
15 18 21
17 45b
85
Transcribed Image Text:OBSERVATIONS (MINUTES) 1 2 3 4 5 PERFORMANCE RATING (%) ELEMENT Prepare daily reports 35 40 33 42 39 Photocopy results Label and package reports 3 3 Distribute reports aphotocopying machine broken; included as delay in the allowance factor. bPower outage; included as delay in the allowance factor. 120 12 10 36a 15 13 110 5 5. 4 90 15 18 21 17 45b 85
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