EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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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: The cost per unit for the task in direct labor cost.
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Chapter 10 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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