Based on a careful work study in the Hofstetter Corp., the results shown in the

Question

Based on a careful work study in the Hofstetter Corp., the results shown in the following table have been observed:

a) The normal time for the "prepare daily reports" operation = ___ minutes (round your response to two decimal places).

The normal time for the "photocopy results" operation = ___ minutes (round your response to two decimal places).

The normal time for the "label and package reports" operation = ___ minutes (round your response to two decimal places).

The normal time for the "distribute reports" operation = ___ minutes (round your response to two decimal places).

The normal time for the overall process = ___ minutes (round your response to two decimal places).

B) the standard time for this process = ___ minutes

c) the number of observations that are required for a 95% confidence level within a 5% accuracy = __

Based on a careful work study in the Hofstetter Corp., the results shown in the following table have been observed Performance Rating 115% 105% 90% 80 % Observation (minutes per cycle) Element 2 4 32 36* Prepare daily reports Photocopy results Label and package reports Distribute reports 35 39 4 18 15 4 17 3 45A 16 21 Photocopying machine broken; included as delay in the allowance factor A Power outage; included as delay in the allowance factor The allowance factor for this type of work is given to be 15%. (Round all intermediate calculations to two decimal places before proceeding with further calculations.)

Explanation / Answer

First, we will calculate the average times without considering the unusual or non-recurring observations.

Average time for Prepare daily reports: = (35+41+32+42+39)/5 = 37.8 min
Average time for Photocopy results: = (11+11+15+14)/4 = 12.75 min
Average time for Label and package reports: = (3+4+5+4+3)/5 = 3.8 min
Average time for Distribute reports: = (16+18+21+17)/4 = 18 min

Normal time = Average observed time x performance rating

So,

Normal time for Prepare daily reports: = 37.8 x 1.15 = 43.47 min
Normal time for Photocopy results: = 12.75 x 1.05 = 13.39 min
Normal time for Label and package reports: = 3.8 x 0.90 = 3.42 min
Normal time for Distribute reports: = 18 x 0.80 = 14.4 min

The Normal time for the over all process is thus = 43.47+13.39+3.42+14.4 = 74.68 min

Standard time = Normal time / (1 - AF) = 74.68 / (1 - 0.15) = 87.86 min

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