EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 10, Problem 23P

Virginia College promotes a wide variety of executive- training courses for firms in the Arlington, Virginia, region. Director Wendy Tate believes that individually written letters add a personal touch to marketing. To prepare letters for mailing, she conducts a time study of her secretaries. On the basis of the observations shown in the following table, she wishes to develop a time standard for the whole job.

  The college uses a total allowance factor of 12%. Tate decides to delete all unusual observations from the time study. What is the standard time?

Chapter 10, Problem 23P, Virginia College promotes a wide variety of executive- training courses for firms in the Arlington,

aDisregard–secretary stopped to answer the phone.

bDisregard–interruption by supervisor.

Expert Solution & Answer
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Summary Introduction

To determine: The standard time for the operation.

Introduction: Time study is the basis that helps set the standard time; it would time a sample of the performance of the worker.

Answer to Problem 23P

Thestandard time is calculated as 5.4 minutes.

Explanation of Solution

Given information:

The allowance factor is given as 12%. The observed time and performance rating for each element is given as follows:

Element Performance rating Observation (minutes)
1 2 3 4 5 6
Typing letter 85 2.5 3.5 2.8 2.1 2.6 3.3
Typing envelope 100 0.8 0.8 0.6 0.8 3.1a 0.7
Stuffing envelope 95 0.4 0.5 1.9a 0.3 0.6 0.5
Sealing and sorting 125 1 2.9b 0.9 1 4.4b 0.9

a refers to the secretary stopping to answer the phone

b refers to the interruption by a supervisor

Formulae to calculate standard time:

Average time=Observationsn

Normal time=Average time×Performance rating

Standard time=Normal time1Allowance factor

Calculate standard time:

Element Performance rating Observation (minutes) Average time Normal time
1 2 3 4 5 6
Typing letter 85% 2.5 3.5 2.8 2.1 2.6 3.3 2.8 2.38
Typing envelope 100% 0.8 0.8 0.6 0.8 3.1a 0.7 0.74 0.74
Stuffing envelope 95% 0.4 0.5 1.9a 0.3 0.6 0.5 0.46 0.437
Sealing and sorting 125% 1 2.9b 0.9 1 4.4b 0.9 0.95 1.1875

Excel worksheet:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 10, Problem 23P

Calculate the average time for typing letters:

The average time is calculated by taking an average of the observation given, which is summation of 2.5, 3.5, 2.8, 2.1, 2.6, and 3.3 and dividing the result by 6. Hence, the average is 2.8 minutes.

Average time=Observationn=2.5+3.5+2.8+2.1+2.6+3.36=16.86=2.8 minutes

Calculate the average time for typing envelope:

The average time is calculated by taking an average of the observation given, which is summation of 0.8, 0.8, 0.6, 0.8, and 0.7 and dividing the result by 5. Hence, the average is 0.74 minutes.

Average time=Observationn=0.8+0.8+0.6+0.8+0.75=3.75=0.74 minutes

Note: The observation with (Xa) should not be considered while calculating the average time.

Calculate the average time for stuffing envelope:

Average time=Observationn=0.4+0.5+0.3+0.6+0.55=2.35=0.46 minutes

The average time is calculated by taking an average of the observation given, which is summation of 0.4, 0.5, 0.3, 0.6, and 0.5 and dividing the result by 5. Hence, the average is 0.46 minutes.

Note: The observation with (Xa) should not be considered while calculating average time.

Calculate average time for sealing and sorting:

Average time=Observationn=1.0+0.9+1.0+0.94=3.84=0.95 minutes

The average time is calculated by taking an average of the observation given, which is summation of 1.0, 0.9, 1.0, and 0.9 and dividing the result by 4. Hence, the average is 0.95 minutes.

Note: The observation with (Xa and Xb) should not be considered while calculating average time.

Calculate normal time for typing letter:

Normal time=Average time×Performance rating=2.8×85%=2.8×0.85=2.38 minutes

Normal time is calculated by multiplying the average time and performance rating. The average time is calculated as 2.8 minutes, and performance rating is given as 85%. Hence, the normal time is 2.38 minutes.

Calculate normal time for typing envelope:

The normal time is calculated by multiplying the average time and performance rating. The average time is calculated as 0.74 minutes, and performance rating is given as 100%. Hence, the normal time is 0.74 minutes.

Normal time=Average time×Performance rating=0.74×100%=0.74×1=0.74 minutes

Calculate normal time for stuffing envelope:

The normal time is calculated by multiplying the average time and performance rating. The average time is calculated as 0.46 minutes, and performance rating is given as 95%. Hence, the normal time is 0.437 minutes.

Normal time=Average time×Performance rating=0.46×95%=0.46×0.95=0.437 minutes

Calculate normal time for sealing and sorting:

The normal time is calculated by multiplying the average time and performance rating. The average time is calculated as 0.95 minutes, and performance rating is given as 125%. Hence, the normal time is 1.1875 minutes.

Normal time=Average time×Performance rating=0.95×125%=0.95×1.25=1.1875 minutes

Calculate the total normal time:

The normal time is calculated by adding the normal time for typing letter, typing envelope, stuffing envelope, and sealing and sorting.

Normal time=Sum of normal times=2.38+0.74+0.437+1.1875=4.75 minutes

Hence, the total normal time is 4.75 minutes.

Calculate the standard time:

The standard time is calculated by dividing the normal time with the value attained by subtracting the allowance factor from 1. The normal time is calculated as 4.75 minutes and the allowance factor is calculated as 12%

Standard time=Normal time1Allowance factor=4.75 minutes10.12=4.75 minutes0.88=5.4 minutes

Hence, the standard time is 5.4 minutes.

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