Standard Time Analysis and Inventory Strategies For Efficient Manufacturing
| Observations | Element (in minutes) | ||||
| 1 | 2 | 3 | 4 | 5 | |
| Cycle 1 | 2.23 | 1.30 | 1.75 | 2.79 | 1.62 |
| Cycle 2 | 2.27 | 1.28 | 1.80 | 2.71 | 1.60 |
| Cycle 3 | 2.25 | 1.34 | 1.77 | 2.65 | 1.62 |
| Cycle 4 | 2.23 | 1.35 | 1.85 | 2.61 | 1.62 |
| Cycle 5 | 2.26 | 1.31 | 1.88 | 2.63 | 1.64 |
| Cycle 6 | 2.27 | 1.27 | 1.84 | 2.63 | 1.66 |
| Cycle 7 | 2.22 | 1.37 | 1.83 | 2.65 | 1.62 |
| Cycle 8 | 2.26 | 1.31 | 1.80 | 2.63 | 1.66 |
| Cycle 9 | 2.23 | 1.35 | 1.85 | 2.65 | 1.60 |
| Cycle 10 | 2.22 | 1.33 | 1.83 | 2.63 | 1.62 |
| Rating factor | 0.95 | 0.85 | 1.15 | 1.10 | 1.00 |
| Frequency | 1 | 1 | 1 | 1 | 1 |
Calculate the mean observed time for each
| Mean Observed Time | 2.24 | 1.32 | 1.81 | 2.65 | 1.62 |
Calculate the normal time for each
Formula= mean observed time*rating factor*frequency
| Nominal Time | 2.13 | 1.12 | 2.09 | 2.92 | 1.62 |
Using an allowance factor of 20 percent of job time, calculate the standard time for each element and the entire
Formula= ST = (NT)(AF), where AF = 1 + PFD = 1 + 0.20 = 1.20
Average= 2.37
| Standard time | 2.55 | 1.34 | 2.50 | 3.50 | 1.95 |
How many units should be completed each hour if the worker performs 100 percent of the standard?
= 60/2.3 = 26 hours
How many units should be completed each hour if the worker performs at 90 percent of the standard?
= 26*90% = 23.4 hours
Deb’s Delightful Dresses (DDD) must ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for DDD is 3000 gowns. DDD can ship the gowns via regular parcel service (4 days transit time), premium parcel service (2 day transit time), or via public carrier (8 days transit time). Calculate the average annual transportation inventory for each Regular Service= 4*3000/365 = 33 Premium shopping = 2*3000/365= 16.43 Public Carrier = 8*3000/365 = 65.75
Dylan, the owner of Modern Office Chairs (MOC), a company that manufactures office chairs, is interested in measuring inventory effectiveness. Last year the cost of goods sold at MOC was $5,000,000. The average inventory in dollars was $500,000.
- Calculate the inventory turnover for MOC
= 5,000,000/500,000 = 10
- Calculate the weeks of supply. Assume 52 weeks per year.
=52/10 = 5.2
- Calculate the days of supply. Assume that MOC operates five days per week
=5.2+5 = 10.2
Edward’s Electronic assembles custom electronics. The outlets needed are bought for $15 each and ordered in 1500 units. Annual demand is 6000 outlets, the annual inventory holding cost rate is $5 per unit, and the cost to place an order is estimated at $75. Calculate the following:
-
- Average inventory level
= 1500/2 = 750
- The number of orders placed per year
=6000/1500 = 4
- The total annual inventory holding cost
= 750*5 = 3,750
The total annual ordering cost
= 4*75 = 300
- The total annual cost
= 3,750 + 300 = 3,780
Solve the following problems from your text in an MS Word document with questions using APA style. Your answers should provide thoughtful, supporting details, examples, and graphics as necessary.
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Question 
Chapter 11
Mark’s Macho Marbles collected the following information to develop a standard time for building marbles.
| Observations | Element (in minutes) | ||||
| 1 | 2 | 3 | 4 | 5 | |
| Cycle 1 | 2.23 | 1.30 | 1.75 | 2.79 | 1.62 |
| Cycle 2 | 2.27 | 1.28 | 1.80 | 2.71 | 1.60 |
| Cycle 3 | 2.25 | 1.34 | 1.77 | 2.65 | 1.62 |
| Cycle 4 | 2.23 | 1.35 | 1.85 | 2.61 | 1.62 |
| Cycle 5 | 2.26 | 1.31 | 1.88 | 2.63 | 1.64 |
| Cycle 6 | 2.27 | 1.27 | 1.84 | 2.63 | 1.66 |
| Cycle 7 | 2.22 | 1.37 | 1.83 | 2.65 | 1.62 |
| Cycle 8 | 2.26 | 1.31 | 1.80 | 2.63 | 1.66 |
| Cycle 9 | 2.23 | 1.35 | 1.85 | 2.65 | 1.60 |
| Cycle 10 | 2.22 | 1.33 | 1.83 | 2.63 | 1.62 |
| Rating factor | 0.95 | 0.85 | 1.15 | 1.10 | 1.00 |
| Frequency | 1 | 1 | 1 | 1 | 1 |
Standard Time Analysis and Inventory Strategies For Efficient Manufacturing
a. Calculate the mean observed time for each element.
b. Calculate the normal time for each element.
c. Using an allowance factor of 20 percent of job time, calculate the standard time for each element and the entire job.
d. How many units should be completed each hour if the worker performs at 100 percent of the standard?
e. How many units should be completed each hour if the worker performs at 90 percent of the standard?
Chapter 12
1. Deb’s Delightful Dresses (DDD) must ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for DDD is 3000 gowns. DDD can ship the gowns via regular parcel service (4 days transit time), premium parcel service (2 day transit time), or via public carrier (8 days transit time). Calculate the average annual transportation inventory for each alternative.
2. Dylan, the owner of Modern Office Chairs (MOC), a company that manufactures office chairs, is interested in measuring inventory effectiveness. Last year the cost of goods sold at MOC was $5,000,000. The average inventory in dollars was $500,000.
a. Calculate the inventory turnover for MOC.
b. Calculate the weeks of supply. Assume 52 weeks per year.
c. Calculate the days of supply. Assume that MOC operates five days per week.
3. Edward’s Electronic, Inc. assembles custom electronics. The outlets needed are bought for $15 each and ordered in 1500 units. Annual demand is 6000 outlets, the annual inventory holding cost rate is $5 per unit, and the cost to place an order is estimated at $75. Calculate the following:
f. Average inventory level
g. The number of orders placed per year
h. The total annual inventory holding cost
i. The total annual ordering cost
j. The total annual cost