The tasks required to complete one unit of a product is shown in table below: Wi

Question

The tasks required to complete one unit of a product is shown in table below: With an allowance factor of 20% to cover P (personal), F (fatigue), and 1) (delay), find the following What are the normal minutes per unit? ( --- ) minutes / unit What are the standard minutes per unit? Percent PFAD = 20% a 100% / (100% - 20%) The number of hours needed to produce 500 units? If the performance against the standard has averaged 110%. Standard minutes / unit = ( ) minutes / unit Standard rate / hour: ( ) 47 units / hour Performance = ( ) units / hour What is the incentive hourly if day work is paid at $20 per hour? Hourly incentive pay - S ( ) / unit Incentive rate = S ( ) / hour similar to problem 2.7 (Slide 33,34) (Labor Analysis, part A).

Explanation / Answer

(i)CALCULATION OF NORMAL MINUTES PER UNIT

=0.030+0.040+0.050+0.150+0.200+0.180+0.030+20%ALLOWANCE FOR PERSONAL,FATIGUE AND DELAY=0.68+0.136=0.816

(ii)CALCULATION OF STANDARD MINUTES PER UNIT

(iii)HOURS NEEDED TO PRODUCE 500 UNITS=0.816*500=408

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