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In an attempt to increase productivity and reduce costs, Pho Shigma Corporation is planning to install an incentive pay 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.
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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 earned?
Hint)
Normal time = {(Time worked) / (Number of units produced)}(Performance rating)
Standard time = (Normal time)(1 + Allowances)
OR Standard time = (Normal time) / (1 – Allowances)
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https://brainmass.com/business/business-management/time-study-normal-time-and-standard-time-105898
Solution Preview
a) What is the normal time for the task?
Time worked= 30 minutes
Number of units (parts) produced= 42
Performance rating= 130%
Therefore Normal time= 0.9286 minutes = {(30 / 42) x 130.%}
Answer: …
