A large cable company received a shipment of audio video cables with the wrong c

Question

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.

The manager will use a performance rating factor of .95 and an allowance factor of .04.

Observation

Time (min)

1

7.17

2

7.23

3

6.98

4

7.05

5

7.54

6

7.33

7

7.11

8

7.27

9

7.09

10

6.99

Determine the standard time the manager will use to change the connectors.

Observation

Time (min)

1

7.17

2

7.23

3

6.98

4

7.05

5

7.54

6

7.33

7

7.11

8

7.27

9

7.09

10

6.99

Explanation / Answer

Performance rating factor = .95 , Allowance factor = .04

Average observation time from above table = 7.176 minutes

Normal cycle time = Average observation time* Rating factor = 7.176*0.95 = 6.8172 minutes

Standard time = Normal cycle time*(1+allowance factor) = 6.8172*1.04=7.089 minutes

So,the standard time the manager will use to change the connectors = 7.089 minutes

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