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Operations Management :Time study

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As a time-study analyst, you have observed that a worker has produced 40 parts in a one-hour period. From your experience, you rate the worker as performing slightly faster than 100%--so you estimate performance as 110%. The company allows 15% of job time for fatigue and delay. Use excel to show each problem.

A. What is the normal time?
B. What is the standard time?
C. If a worker produces 300 units per day and has a base rate of $10. Per hour, what would the day's wages be for this worker if the company operates on a piece-rate payment plan?

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Solution Summary

Solution contains calculations of normal time standard time and wages.

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Hi,
Please see the response to your posting as below:

A. What is the normal time?
Normal time =Observed time for each part *Performance rating
Observed time for each part = 60 minutes /40 parts =1.5 minute per part
Performance rating =110% ...

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