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# Observed Time, Normal Time, and Standard Time

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Exercises: 6.2 and 6.5 6235 (Wk 3)
The following exercises are required and cover topics in this week's required reading. Review the instructions carefully before completing and submitting the exercises.

Complete Exercises 6.2 and 6.5 on pages 156 and 158 in Quantitative Methods in Health Care Management. Use the Excel document below to record your answers. Save the template to your desktop before using.
Excel template for Exercises 6.2 and 6.5

Page 156- Exercise 6.2
Pre- and post-examination processing of patients in an outpatient clinic involves various tasks performed by clerks and nurses. A time study conducted by the decision support department is shown in Table ex 6.2.
A. Determine the observed time for the pre-post exam process.
B. Determine the normal time for the pre-post exam process.
C. Determine the standard time for the pre-post exam process, using the basic-moderate allowance for the job.
D. Calculate the standard time for the exam process. Do you think the time spent in the outpatient clinic, without including the exam time, is reasonable? If not, what improvements would you recommend?
Page 158-Exercise 6.5
An initial work sampling survey to estimate the percentage of time that MRI equipment is idle between 8:00 am and 8:00pm, found that the MRI was idle in 9 of the 120 observations.
A. Determine the percentage of idle time.
B. From the initial results, approximately how many observations would it require to estimate the actual percentage of idle time to within 4 percent, with confidence of 95 percent?

See attached file for data.

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#### Solution Summary

The solution gives detailed steps on finding the observed time, normal time and standard time of the pre-post exam process and standard time for the exam process using excel.

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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.)

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