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Calculating Standard Time, Normal Time and Observed Time

Frank's Fabricators has collected the following information to develop a standard time for producing their high-volume Navigator III, a universal remote control. All of the times are in minutes.

Element (in Minutes)

Observations
1
2
3
4
5
6

Cycle 1
1.10 3.00 0.92 1.23 1.46 1.80
Cycle 2
1.08 0.88 1.30 1.64 1.78
Cycle 3
1.15 3.20 0.85 1.26 1.55 1.76
Cycle 4
1.16 0.88 1.33 1.52 1.80
Cycle 5
1.07 3.10 0.90 1.28 1.62 1.82
Cycle 6
1.10 0.94 1.30 1.60 1.82
Rating Factor
0.95 0.90 1.05 1.0 0.85 1.10
Frequency
1.00 0.50 1.0 1.0 1.0 1.0

Calculate the mean observed time for each element.

(Round your answers to 3 decimal places, the tolerance is +/-0.001.)

Element
Mean Observed Time

1
2
3
4
5
6

Calculate the normal time for each element.

(Round your answers to 3 decimal places, the tolerance is +/-0.001. Do not round your intermediate computations.)

Normal Time element 1 = minutes
Normal Time element 2 = minutes
Normal Time element 3 = minutes
Normal Time element 4 = minutes
Normal Time element 5 = minutes
Normal Time element 6 = minutes

Using an allowance factor of 15 percent of job time, calculate the standard time for each element.

(Round your answers to 3 decimal places, the tolerance is +/-0.001. Do not round your intermediate computations.)

ST element 1 = minutes
ST element 2 = minutes
ST element 3 = minutes
ST element 4 = minutes
ST element 5 = minutes
ST element 6 = minutes

Calculate the standard time for completing one Navigator III.

(Use your answer from the previous part to answer this question. Round your answer to 3 decimal places, the tolerance is +/-0.006. )

If an employee is able to produce at a rate equal to the standard (100 percent efficiency), how many units should she produce each hour?

(Round your answer to 2 decimal places, the tolerance is +/-0.01.)

If an employee is working at 90 percent efficiency, how many units should she complete in one hour?

(Round your answer to 2 decimal places, the tolerance is +/-0.01.)

If a process improvement has changed the mean observed time for element 6 to 1.50 minutes, what is the new standard time for the Navigator III?

(Round your answer to 2 decimal places, the tolerance is +/-0.01.)

If the company builds 20,000 Navigator IIIs each month, how much less time does it require using the new process?

minutes (Round your answer to the nearest whole number. Do not round your intermediate computations.)

Solution Preview

Please see the attachment for solution properly formatted. See the Excel file for the computation.

Solution

A) Calculate the mean observed time for each element. (Round your answers to 3 decimal places, the tolerance is +/-0.001.)

Element Mean Observed Time
1 1.110
2 3.100
3 0.895
4 1.283
5 1.565
6 1.797

B) Calculate the normal time for each element. (Round your answers to 3 decimal places, the tolerance is +/-0.001. Do not round your intermediate computations.)

We have, Normal Time = (Mean observed time)(Performance rating factor)(Frequency)

Normal Time element 1 = (1.110)(0.95)(1.00) = 1.055 minutes
Normal Time element 2 = (3.100)(0.90)(0.50) = 1.395 minutes
Normal Time element 3 = (0.895)(1.05)(1.00) = 0.940 ...

Solution Summary

The expert calculates the standard time, normal time and observed times.

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