Puff n Stuff Services is a small company that assembles mailings for clients in the Vancouver area.

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Puff €˜n€™ Stuff Services is a small company that assembles mailings for clients in the Vancouver area. Different-size envelopes are stuffed with various items such as coupons, advertisements, political messages, and so on, by a staff of workers, who are paid on a piece-rate basis. A time study of a job has been conducted by an engineering consulting firm using a subject stuffing manila envelopes. The observations from the time study for 10 cycles of the five-element job and the performance rating for each element are as follows.


Elemental Times (min) 4 5 6 7 Element 1 10 RF 0.09 0.10 0.12 0.09 0.08 0.07 0.09 0.06 0.10 0.09 1.10 0.08 0.09 0.08 0.07


a. Using an allowance factor of 10%, compute the standard time for this job.

b. If the firm pays workers a piece-rate of $0.03 per envelope for this job, what would the average worker make per hour, and what would the subject of the study make per hour?

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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