The manager of an insurance company has approached you to carry out a rated activity sampling study in the claims processing department. He believes that the four claims processing employees are not achieving their targets. The insurance company measures its output in the number of claims filed and processed. During the past year which had 250 working days, the insurance company processed 30 000 claims. The company employs 4 full time claims administrators who are responsible for the processing of all claims. The company allocated additional tasks to these administrators and believe that the administrators will be able to achieve their targets and perform their new tasks. The employees and the union are adamant that this idea is currently not working and have argued the point that in order for them to achieve 40 claims per day per person means that no other work is to be done but processing claims. Management argues that this is not true and can be achieved. In order to resolve the issue, management requested a rated activity sampling study be carried out. Thus, a pilot study has been completed and was summarized as follows (per working day for one person): Activity Description % of total time Total of No of activity observations ratings A Work on claims 60% 2660 28 B Answer 14% 700 7 telephones C Converse with 10% 425 5 customers D Wait on 10% 375 5 researchers E Idle 6% 270 3 Additional Information: Contingency Allowance = 5.25% The compensatory rest allowance = 15.75% The company utilities a confidence level of 95% with a 5% margin of error. The study conducted between 08h00 and 16h30 The employees are entitled to a 30 minutes lunch break. Determine the following: 2.1 The p-values for each activity. (5) 2.2 The average rating for each activity. (5) 2.3 Calculate the basic time for each activity per person. (6) 2.4 Calculate the basic work content per activity. (4) 2.5 Calculate the total basic work content. (2) 2.6 Calculate the standard time per claim. (3) 2.7 Based on the result of 2.6, determine the target per day. (3) 2.8 Compare and conclude recommendation to management. (2) The manager of an insurance company has approached you to carry out a rated activity sampling study in the claims processing department. He believes that the four claims processing employees are not achieving their targets. The insurance company measures its output in the number of claims filed and processed. During the past year which had 250 working days, the insurance company processed 30 000 claims. The company employs 4 full time claims administrators who are responsible for the processing of all claims. The company allocated additional tasks to these administrators and believe that the administrators will be able to achieve their targets and perform their new tasks. The employees and the union are adamant that this idea is currently not working and have argued the point that in order for them to achieve 40 claims per day per person means that no other work is to be done but processing claims. Management argues that this is not true and can be achieved. In order to resolve the issue, management requested a rated activity sampling study be carried out. Thus, a pilot study has been completed and was summarized as follows (per working day for one person): Activity Description % of total time Total of No of activity observations ratings A Work on claims 60% 2660 28 B Answer 14% 700 7 telephones C Converse with 10% 425 5 customers D Wait on 10% 375 5 researchers E Idle 6% 270 3 Additional Information: Contingency Allowance = 5.25% The compensatory rest allowance = 15.75% The company utilities a confidence level of 95% with a 5% margin of error. The study conducted between 08h00 and 16h30 The employees are entitled to a 30 minutes lunch break. Determine the following: 2.1 The p-values for each activity. (5) 2.2 The average rating for each activity. (5) 2.3 Calculate the basic time for each activity per person. (6) 2.4 Calculate the basic work content per activity. (4) 2.5 Calculate the total basic work content. (2) 2.6 Calculate the standard time per claim. (3) 2.7 Based on the result of 2.6, determine the target per day. (3) 2.8 Compare and conclude recommendation to management. (2)