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K3lly_1996_R3ne K3lly_1996_R3ne
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6 years ago
A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive program will pay 1 per unit produced above standard rates.
 
  A worker is timed at an average of 280 seconds per unit, with a performance rating of 105. The plant has an allowance factor of 13. If the worker later produces 100 units in an 8 hour shift, how much would he receive under the incentive plan?
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#1
6 years ago
Standard time = (Average observed time  PF) / (1 - AF) = 280  1.05/ (1 - .13 ) = 337.931 seconds.
Available time = (8 hours)(60 minutes/hr)(60 seconds/minute) = 28,800 seconds available.
Standard production = Available time / Standard time = 28,800 / 337.931 = 85.22 units
The worker produced 100 units, or 15 more than standard (students may round up the standard production to 86, giving only 14 more units); thus, he would receive 15 (or 14 ) in incentive pay.
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