A time study analyst observes a worker over a period of time and calculates that

Question

A time study analyst observes a worker over a period of time and calculates that the worker required 30.0 minutes per unit produced. The worker was rated by the analyst at a 120 percent performance rating, and a  10 percent allowance for personal time and fatigue applies. (1) What is the standard time for this task? (2) If a worker managed to produce 16 units in an eight-hour day, what would their day's pay be if the base rate is $14 per hour, and the premium payment system paid on a 100 percent basis?

Explanation / Answer

1. Given the performance rating was 130% when a worker produces 1 unit in 30 min. Hence at 100% efficiency 1 unit will require 39 min (130*30/100) to complete 1 unit. Hence std time is 39 min.

2. AT 100% efficiency 1 unit requires 39 min. hence 16 unit will need 16*39= 624 min= 10.4 hr. Hence the pay at $14 per hour will be 10.4*14= $145.6.

This worker is working at an efficiency of 130% ((10.4-8)/8)

The amount of $145.6 is equivalent to the worker working at 130% efficiency for 8 hrs.

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