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A worker-machine operation was found to involve 3.5 minutes of machine time per cycle in the course of 40 cycles of stopwatch study. The worker's time averaged 2.7 minutes per cycle, and the worker was given a rating of 120 percent (machine rating is 100 percent). Midway through the study, the worker took a 10-minute rest break. Assuming an allowance factor of 14 percent of work time which is appliedonly to the worker element (not the machine element), determine the standard time for this job. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Assume a population standard deviation of $2.40 per hour and compute the p-value. c. With a = .05 as the level of significance, what is your conclusion? d. Repeat the preceding hypothesis test using the critical value approach.
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If the process makes one unit each hour on average and each unit is worth $1,500, illustrate what is the reduction in work-in-process value?
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