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?
aDisregard–secretary stopped to answer the phone.
bDisregard–interruption by supervisor.
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:
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:
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.
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.
Note: The observation with (Xa) should not be considered while calculating the average time.
Calculate the average time for stuffing envelope:
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:
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 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.
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.
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.
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.
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%
Hence, the standard time is 5.4 minutes.
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Chapter 10 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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