An initial time study was done on a process with the following results (in minutes). Based on the data obtained so far, assuming an allowance of 14 percent of the normal time, what do you estimate for the time per customer served, based on this preliminary sample? (Round all intermediate calculations to two decimal places.)

Element

Performance

Rating

Obs

1

Obs

2

Obs

3

Obs

4

Obs

5

Element 1

70

3

4

4

3

3

Element 2

110

9

8

10

11

10

Element 3

120

7

8

6

7

8

The time per unit customer served is minutes.(Enter your response rounded to two decimal places.)

24.60 minutes (2dp)

Explanation:

The question is essentially asking that we find the Standard Time it takes to serve a customer.

To do this we would have to calculate the averages of the different elements and then use this to find the normal time which we can then use to find the Standard Time.

Element 1

= (3 + 4 + 4 + 3 + 3)/5

= 3.4

Element 2

= ( 9 + 8 + 10 + 11 + 10)/5

= 9.6

Element 3

= ( 7 + 8 + 6 + 7 + 8)/5

= 7.2

We then calculate the normal times by multiplying each of the individual means with their performance ratings.

That would be,

Element A

= 3.4 * 70%

= 2.38

Element B

= 9.6 * 110%

= 10.56

Element C

= 7.2 * 120%

= 8.64

We then add up the normal times to get the total normal time

= 2.38 + 10.56 + 8.64

= 21.58 minutes

Now we can solve for the standard time using this formula,

Standard time = Normal time (1+Allowance factor)

= 21.58 ( 1 + 0.14)

= 24.6012 minutes

= 24.60 minutes (2dp)

The time per unit customer served is 24.60 minutes.

If you need any clarification please do comment. Cheers.

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