Toledo Plastics has developed a product which incorporates new features with a standard product design. A production prototype has been built and the Methods Department has developed a job design for the production of the new product. Elemental times were taken from the Standard Data System and then checked with a stop-watch study. Toledo Plastics runs one 8 hour shift per day, 5 days a week and provides workers a 90 minute daily allowance for personal time and other contingencies. Daily standards are calculated as the normal time for the job divided by 1 - % Allowance. Production workers earn $25.00 per hour.
Below is a summary of the methods Department’s stop-watch study.
Product #4356 150 cycles timed
Timed on 6-4-20 all time in seconds
Element Average Time (sec) Performance Rating
1 200 1.20
2 70 1.00
3 100 .90
4 200* .85
5 70 1.25
6 80 . 90
Three cycles thrown out of calculation due to machine slippage. Average based on 147 cycles.
A. Using the time study data collected, develop a standard time for this job. State the standard in parts per hour. (carry your answer out to two decimal places)
B. What is the current weekly nominal capacity for a production worker who works at 112% of standard with an average scrap rate of 2%.
C. Assuming there are 15 workers producing this product, what rate of efficiency must the workers average if they are to meet a weekly demand of 2,600 units given an average scrap rate is 5%?