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Normal Time, Standard Time for a Task; Incentive Plan

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2. A time study was made of an existing job to develop new time standards. A worker was observed for 45 minutes. During that period, 30 units were produced. The analyst rated the worker as performing at a 90 percent performance rate. Allowances in the firm for rest and personal time are 12 percent.

a. What is the normal time for the task?
b. What is the standard time for the task?

6. In an attempt to increase productivity and reduce costs, Rho Sigma Corporation is planning to install an incentive plan in its manufacturing plant. In developing standards for one operation, time-study analysts observed a worker for 30 minutes. During that time, the worker completed 42 parts. The analysts rated the worker as producing at 130 percent. The base wage rate of the worker is $5 per hour. The firm has established 15 percent as a fatigue and personal time allowance.

a. What is the normal time for the task?
b. What is the standard time for the task?
c. If the worker produced 500 units during an eight-hour day, what wages would the worker have?

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The solution discusses normal time, standard time for a task and incentive plan.

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Question 2A
Normal time = 45 minutes/90%/30 units = 1.67 minutes per ...

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