Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 10, Problem 4CS
Summary Introduction

Case summary:

Person K is the vice-president of operations at Company J, which received a request for quote of supplying 400 units per week. Employee must be permitted to perform the task for 17 times. The actual times observed were given below:

Number Actual time (minutes)
1 2.05
2 1.92
3 2.01
4 1.89
5 1.77
6 1.8
7 1.86
8 1.83
9 1.93
10 1.96
11 1.95
12 2.05
13 1.79
14 1.82
15 1.85
16 1.85
17 1.99

Performance rating is 115%, fatigue allowance is given as 8%, personal allowance is 6%, and delay allowance is 2%. Workday hour is 7.5 hours and the operators would be paid $12.50 per hour for 8 hours.

To determine: Thecost per unit for the task in direct labor cost.

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