A large cable company received a shipment of audio video cables with the wrong connectors. The error was made by the cable company’s specifications provided to the overseas supplier. The operations manager calculates that it would be cheaper to manually change the connectors rather than the supplier re-doing or fixing the cables. The manager observes the first set of workers pulled aside to change the cables and from these observations will set a standard time. The observations are as follows for workers to each change the connectors on sets of 20 cables:
Determine the standard time the manager will use to change the connectors from the link above.
Below is information to help:
In order to answer this question, we need to use the information from two of the links that you provided. First, we look here to find an explanation of how to figure a standard time. Second, we look here to find the information about the time it takes the workers to change the cables and the information about the allowance factor and the performance rating.
To find the standard time, we will first need to find two other figures. First, we need to find the average observed time. We do this by simply finding the mean amount of time that it took the workers to change the connectors. We add the ten times recorded here and we divide them by 10. The sum of the ten times is 71.76 minutes. If we divide that by 10, we get 7.176 minutes as our average observed time.
Next, we must find the normal time needed to change the connectors. We need to find the normal time because we expect that the workers will improve and become more skilled at changing the connectors. This means that the time they need will actually be shorter than the average observed time. We find the normal time by multiplying the observed time by a performance rating factor. The information you provided tells us that the performance rating factor is .95. Therefore, we find the normal time by multiplying 7.176 by .95. This gives us an answer of 6.82.
With this information in hand, we can figure the standard time. To find standard time, we must factor in an allowance factor. We need to do this because we cannot expect that the workers will work at 100% efficiency for a long period of time. We need to use the allowance factor as a way of estimating how much time they will lose to things like fatigue. The information you provided tells us that the allowance factor is .04. The equation for finding standard time is Normal Time/(1-allowance factor). In this case, the equation will be
Standard time = 6.82/(1-.04)
In this case, then, the standard time that the manager will use is 7.1 minutes per set of 20 cables.