Determine the standard time, Operation Management

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An 8 hours work measurement  study  in a plant reveals the following : Units  produced= 320 nos. Idle  time = 15%  performance rating-= 120% . allowances  = 12% of normal  time. Determine the  standard time  per unit  produced.

 Solution

Observed  time for 320 unit s= working time - idle time

                                             = 8-8-X0.15= 8-1.2

                             = 6.8 hours

                             = 6.8X 60 = 480 minutes.

Observed  time per unit = 408/320 = 1.275 minutes.

Normal  time per  unit = Observed time / Unit  X observed rating / standard rating

= observed time / unit X performance rating

             =             1.275X 120/ 100

             = 1.53 minutes.

Standard  time/ unit = Normal time/ Unit+  Allowances

             = 1.53 Minutes + 12% of 1.53 minutes

             = 1.53 + 1.2 /100 X 1.53

             = ( 1.53 + 0.184) minutes

             = 1.714 minutes


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