7 In an attempt to increase productivity and reduce costs, Rho Sigma Corporation is planning to install
Question:
7 In an attempt to increase productivity and reduce costs, Rho Sigma Corporation is planning to install an incentive pay plan in its manufacturing plant. In developing standards for one op- eration, time-study analysts observed a worker for 30 minutes. During that time the worker.com- pleted 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.
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 eamed?
Step by Step Answer:
Operations Management For Competitive Advantage
ISBN: 1572
11th Edition
Authors: Richard B. Chase, F. Robert Jacobs