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    Continuous Method for Time Recording

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    When performing time study process insurance claims adjusting company doctors Triple R, Barney Rubble analyst applies the continuous method for time recording. The activity is divided into four work items. In Figure 7.3 (attached) are the rating factors (RF) performance and the times recorded by the continuous method, r for each work item.

    1. Calculate the normal time required for this activity
    2. Calculate the standard time for this activity, assuming that tolerance is 20% of the normal time
    3. What is the appropriate sample size to estimate the time corresponding to element 2 within ±10% of the true mean with 95% confidence?

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    Solution Preview

    See the attached file.
    1. To get the normal time for this job, we must first determine the observed time, t, for each
    work element for each cycle. We calculate the time for each observation by finding the difference between successive recorded times, r. For example, the time for the fifth observation of the first work element is the difference between the recorded time when that element was completed (at 10.85 minutes) ...

    Solution Summary

    The solution discusses continuous method for time recording and assists with calculating the normal time, standard time and appropriate sample size for this activity.