5. You have received the following data involving milling of a part by a worker
ID: 355255 • Letter: 5
Question
5. You have received the following data involving milling of a part by a worker in your department. The data are expressed in minutes: Work Element observation observation observation observation Average Perf. Rating 4 48 23 68 .56 .30 50 90 80 1.2 Your department is scheduled for one 8-hour shift, 5 days per week and workers are given a 45 27 68 53 31 57 26 67 .54 29 .50 25 68 70 57 30 4 .30 daily allowance of 72 minutes for personal time and other contingencies. Contractually daily standards are calculated as the normal time divided by 1-90 allowance. Assembly workers are paid $10.50 per hour. Historically scrap on this part has been averaging 8%. A. Calculate the standard time to produce on part based on the above time study information. B. You are told that the schedule calls for 550 units per day in the foreseeable future. How m any workers are needed to achieve this schedule?Explanation / Answer
Work Element
Obs 1
Obs 2
Obs 3
Obs 4
Average
Perf Rating
At normal performance, time taken
1
0.5
0.45
0.57
0.48
0.5
0.9
0.56
2
0.24
0.27
0.26
0.23
0.25
1.1
0.23
3
0.7
0.68
0.67
0.68
0.68
0.8
0.85
4
0.57
0.53
0.54
0.56
0.55
1.1
0.50
5
0.3
0.31
0.29
0.3
0.3
1.2
0.25
2.28
2.39
A. Standard time to produce the part is 2.39 minutes. Based on the formula –
B.
Total Time available during the day = 8 hours – allowances = 480 – 72 = 408 mins
To produce 550 units per day, actual production should be 594 units (including 8% scrap)
we need 1417.3 man-minutes (594 X 2.39)
408 man-minutes are available for 1 worker in a day, so we will need 3.47, i.e. 4 workers to meet the schedule
C. Worker with efficiency of 110% will take 2.17 minutes to make a part
So in a day he will make (408/2.17) parts = 188.1, or, 188 parts. But with 4% scrap rate he is actually making 180 usable parts (96% of 188, rounded down)
His capacity in a week = 180 X 5 = 900 parts
D.
Standard time to produce 1 part = 2.39 mins
In 408 available minutes, 1 worker produces = 408/2.39 parts = 171 parts
Effective production (8% scrap) = 157.32, or, 157 parts
Payment to a worker for a 8 hour shift = 10.5 X 8 = $ 84
Direct labor cost for 1 part = 84/157 = $ 0.54
Direct Material Cost = $ 2.15
Total direct material + labor cost = $ 2.69
Overheads = 120% of 2.69 = $ 3.22
Standard cost of the product = 2.15 + 3.22 = $ 5.37
Work Element
Obs 1
Obs 2
Obs 3
Obs 4
Average
Perf Rating
At normal performance, time taken
1
0.5
0.45
0.57
0.48
0.5
0.9
0.56
2
0.24
0.27
0.26
0.23
0.25
1.1
0.23
3
0.7
0.68
0.67
0.68
0.68
0.8
0.85
4
0.57
0.53
0.54
0.56
0.55
1.1
0.50
5
0.3
0.31
0.29
0.3
0.3
1.2
0.25
Total2.28
Total2.39
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