Lab$-2$

Time Study

A company has just received a request from an Electric Supplier for $400$ units per week of an electric component.

Four tasks must be performed to assemble the component. One of them has been conducted in the past many times. However, three of them are new to the company. You are asked to conduct a time study on the task to determine the standard time. Then an estimate can be made of the cost to assemble the component. This information, combined with other cost data, will allow the firm to put together the information needed for the supplier.

To determine a standard time for the task, an employee from an existing assembly station was trained in the new assembly process. Once proficient, the employee was then asked to perform the task $17$ times so a standard could be determined. The actual times observed $($in minutes$)$ were as follows:

Task$-1$

$\backslash$table$[[1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17],[2\mathrm{.}05,1\mathrm{.}92,2\mathrm{.}01,1\mathrm{.}89,1\mathrm{.}77,1\mathrm{.}80,1\mathrm{.}86,1\mathrm{.}83,1\mathrm{.}93,1\mathrm{.}96,1\mathrm{.}95,2\mathrm{.}05,1\mathrm{.}79,1\mathrm{.}82,1\mathrm{.}85,1\mathrm{.}85,1\mathrm{.}99]]$

Task$-2$

$\backslash$table$[[1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17],[2\mathrm{.}24,2\mathrm{.}03,1\mathrm{.}87,1\mathrm{.}99,2\mathrm{.}08,1\mathrm{.}81,1\mathrm{.}97,2\mathrm{.}07,1\mathrm{.}89,1\mathrm{.}94,1\mathrm{.}79,1\mathrm{.}93,1\mathrm{.}84,2\mathrm{.}07,2\mathrm{.}21,1\mathrm{.}96,2\mathrm{.}00]]$

Task$-3$

$\backslash$table$[[1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17],[2\mathrm{.}08,1\mathrm{.}81,1\mathrm{.}97,2\mathrm{.}07,1\mathrm{.}89,1\mathrm{.}94,1\mathrm{.}79,2\mathrm{.}05,1\mathrm{.}79,1\mathrm{.}82,1\mathrm{.}85,1\mathrm{.}85,1\mathrm{.}99,2\mathrm{.}05,1\mathrm{.}79,1\mathrm{.}92,2\mathrm{.}01]]$

The worker had a $115\%$ performance rating. The fatigue allowance is assumed to be $8\%.$ The company has an established personal allowance or Delay should be very low. Previous studies of delay in this department average $2\%.$ The work day is $7\mathrm{.}5$ hours, but operators are paid for $8$ hours at an average of $$12\mathrm{.}50$ per hour.

Conduct a time study.

How big should the sample be for a statistically accurate standard time for the task, say, the $99\mathrm{.}73\%$ confidence level and accuracy?

$3.$ Is the sample size adequate?

How many units should be produced at this workstation per day

What is the cost per unit for this task in direct labor cost?