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    Calculating Standard Time, Normal Time and Observed Time

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    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.)

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    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.

    $2.19

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