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Operations Management Case Studies Jackson Manufacturing Company Kathleen McFadden, vice president of operations at Jackson Manufacturing Company,

The worker had a 115% performance rating. The task can be performed in a sitting position at a well-designed ergonomic work-station in an air-conditioned facility. Although the armature itself weighs 10.5 pounds, there is a carrier that holds it so that the operator need only rotate the armature. But the detail work remains high; therefore, the fatigue allowance should be 8%. The company has an established personal allowance of 6%. Delay should be very low. Previous studies of delay in this department average 2%. This standard is to use the same figure.

The workday is 7.5 hours, but operators are paid for 8 hours at an average of $12.50 per hour.

Discussion Questions

In your report to Ms. McFadden, you realize you will want to address several factors:

  1. How big should the sample be for a statistically accurate standard (at, say, the 99.73% confidence level and accuracy of ±5%)?
  2. Is the sample size adequate?
  3. How many units should be produced at this workstation per day?
  4. What is the cost per unit for this task in direct labor cost?
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