Toledo Plastics has developed a product which incorporates new features with a standard product design. A production prototype has been built and the Methods Department has developed a job design for the production of the new product. Elemental times were taken from the Standard Data System and then checked with a stop-watch study.

Toledo Plastics runs one 8 hour shift per day, 5 days a week and provides workers a 90 minute daily allowance for personal time and other contingencies. Daily standards are calculated as the normal time for the job divided by 1 - % Allowance. Production workers earn $25.00 per hour.

Below is a summary of the methods Departments stop-watch study.

Product #4356 150 cycles timed

Timed on 6-4-20 all time in seconds

Element Average Time (sec) Performance Rating

1 200 1.20

2 70 1.00

3 100 .90

4 200* .85

5 70 1.25

6 80 . 90

*Three cycles thrown out of calculation due to machine slippage. Average based on 147 cycles.

A. Using the time study data collected, develop a standard time for this job. State

the standard in parts per hour. (carry your answer out to two decimal places)

B. What is the current weekly nominal capacity for a production worker who works at 112% of standard with an average scrap rate of 2%.

C. Assuming there are 15 workers producing this product, what rate of efficiency must the workers average if they are to meet a weekly demand of 2,600 units given an average scrap rate is 5%?