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Virginia College promotes a wide variety of executive training courses for firms

ID: 345515 • Letter: V

Question

Virginia College promotes a wide variety of executive training courses for firms in the Arlington, Virginia, region. Director Wendy Tate believes that individually typed letters add a personal touch to marketing. To prepare letters for mailing, she conducts a time study of her secretaries. On the basis of the observations shown in the following table, she wishes to develop a time standard for the whole job.

Performance

Observation (minutes per cycle)

Element

Rating

1

2

3

4

5

6

Typing letter

8080

%

2.62.6

3.63.6

2.82.8

2.12.1

2.52.5

3.33.3

Typing envelope

105105

%

0.80.8

0.90.9

0.70.7

0.90.9

3.13.1

*

0.60.6

Stuffing envelope

9090

%

0.30.3

0.50.5

1.81.8

*

0.20.2

0.60.6

0.50.5

Sealing, sorting

120120

%

1.01.0

2.92.9

^

1.01.0

1.11.1

4.34.3

^

0.90.9

*Disregardlong dash—secretary stopped to answer the phone

^ Disregardlong dash—interruption by supervisor

The college uses a total allowance factor of 12%. Tate decides to delete all unusual observations from the time study. The standard time for this process = ___ minutes (round your response to two decimal places).

Performance

Observation (minutes per cycle)

Element

Rating

1

2

3

4

5

6

Typing letter

8080

%

2.62.6

3.63.6

2.82.8

2.12.1

2.52.5

3.33.3

Typing envelope

105105

%

0.80.8

0.90.9

0.70.7

0.90.9

3.13.1

*

0.60.6

Stuffing envelope

9090

%

0.30.3

0.50.5

1.81.8

*

0.20.2

0.60.6

0.50.5

Sealing, sorting

120120

%

1.01.0

2.92.9

^

1.01.0

1.11.1

4.34.3

^

0.90.9

Explanation / Answer

To be calculated:

Standard time for the process (in minutes)

Given values:

Performance ratings of four elements

Observations in minutes per cycle

Allowance factor = 12% = 0.12

Solution:

Standard time is calculated as;

Standard time = Normal time / (1 - Allowance factor)

and,

Normal time = Average observed time x Performance rating

Element-1: Typing letter

Performance rating = 80% = 0.80

Average observed time = (2.62 + 3.63 + 2.82 + 2.12 + 2.52 + 3.33) / 6 = 17.04 / 6 = 2.84

Normal time = 2.84 x 0.80 = 2.27

Element-2: Typing envelope

Performance rating = 105% = 1.05

Average observed time = (0.80 + 0.90 + 0.70 + 0.90 + 3.13 + 0.60) / 6 = 7.03 / 6 = 1.17

Normal time = 1.17 x 1.05 = 1.23

Element-3: Stuffing envelope

Performance rating = 90% = 0.90

Average observed time = (0.30 + 0.50 + 1.81 + 0.20 + 0.60 + 0.50) / 6 = 3.91 / 6 = 0.65

Normal time = 0.65 x 0.90 = 0.59

Element-4: Sealing, Sorting

Performance rating = 120% = 1.20

Average observed time = (1.01 + 2.92 + 1.01 + 1.11 + 4.34 + 0.90) / 6 = 11.29 / 6 = 1.88

Normal time = 1.88 x 1.20 = 2.26

Total Normal time = Sum of Normal time of all elements

Total Normal time = 2.27 + 1.23 + 0.59 + 2.26

Total Normal time = 6.35 minutes

Now, Standard time can be calculated as;

Standard time = Normal time / (1 - Allowance factor)

Standard time = 6.35 / (1 - 0.12) = 6.35 / 0.88 = 7.22

The Standard time for the process = 7.22 minutes