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2 Problems

1. An initial pilot run of 10 units produces the following times:
Unit Number Time(Minutes)
1 39.00
2 37.05
3 35.95
4 35.20
5 34.62
6 34.16
7 33.77
8 33.44
9 33.14
10 32.89

a According to this pilot run, what is your estimate of the learning rate using the learning curve equation.
b. How much time will it take to produce the next 90 units?
c. How much time will it take to make the 100th unit?

2. In an attempt to increase productivity and reduce costs, Rho Sigma Corporation is planning to install an incentive pay plan in its manufacturing plant. In developing standards for one operation, time study analysts observed a worker for 30 minutes. During that time the worker completed 42 parts. The analysts rated the worker as producing at 130 percent. The base wage rate of the worker is $5 per hour. The firm has established 15 percent as a fatigue and personal time allowance.
a. What is the normal time for the task?
b. What is the standard time for the task?
c. If the worker produced 500 units during an eight-hour day, what wages would the worker have earned?