Sonichi Electronics manufactures small electronic consumer items such as portable clocks, calculators, and radios. The company is concerned about the high cost of its product-inspection operation. As a result, it had its industrial engineering department conduct a time study of an inspector who inspects portable radios.
The operation consists of seven elements, as follows:
(1) The package is opened and the radio is removed;
(2) The battery casing cover is removed;
(3) Two AA batteries are inserted;
(4) The radio is turned on, and the inspector tunes to a station and listens briefly to at least two stations;
(5) The radio is turned off and the batteries are removed;
(6) The battery cover is replaced;
(7) The radio is repackaged.
The time-study observations (in minutes) for 10 cycles are shown in the following table.
a. The allowance factor for this job is 15%. Determine the standard time.
b. If management wants the estimate of the average cycle time to be within ±0.03 minute with a 95% level of confidence, how many job cycles should be observed?
c. Management is considering putting inspectors on a piece-rate wage system in order to provide them with greater incentive to inspect more items. What effect might this have on the quality-inspectionfunction?
This question was answered on: Jul 11, 2017
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