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Sun Valley CPA-1. Receptionists at a medical clinic are estimated to spend approximately 5%




Question;1. Receptionists at a medical clinic are estimated to spend approximately 5% of the time during each shift in answering telephone calls. A work-sampling study of the receptionists? jobs is proposed to determine more precisely how much time is actually spent on the telephone. If a 95% confidence interval and ? 2% absolute error are acceptable, how many observations are required?2. A work-sampling study was performed on an electronic assembly operation at OK Instruments. The study covered an 8 hour shift with a single worker. The results of the study were:ActivityPercent of worker?s timeAssemble units80Allowance20If the worker received a performance rating of 1.20 on the assemble units activity and 400 units were produced during the study, what is the labor standard for this operation?3. John Morton, design engineer at the corporate R&D center of Computer Products Corporation (CPC) in San Jose, is a member of a new product development team. The team is near the end of the of the new product development process and is working on manufacturing cost estimates for the new product so that themarketing staff can set the price of the product to CPC?s customers. The new product is a new bubble memory unit to be incorporated into personal and small-business computers. The team produced one of the units in their model shop and it took 22.5 labor-hours. If the manufacture of the new product is expected to conform to a 90% learning rate and the marketing staff estimates that the firm should be able to sell 4.096 units in its introductory year, use the arithmetic analysis method to estimate the labor-hours required to produce a memory at the end of the first year.4. A repair facility is beginning to repair a group of 35 identical machines with identical malfunctions. It is estimated that the first unit will require 190 labor-hours and an 85% learning rate is expected.a. How many labor-hours will be required to repair the thirty-fifth machine?b. How many labor-hours will be required to repair all 35 machines?Phonograph Corporation of American (PCA) is a company specializing in the manufacturing of phonograph records on a subcontracting basis. For such companies as Music Corporation of American (MCA), Columbia Records, Motown Record:, and Radio Corporation of American (RCA). The company is located in Fort Wayne, Indiana and has been in business for 35 years. At present, 300O local employees work at PCA.Phonograph records are manufactured by molding hot plastic resin in hydraulic presses. The ?stumpers? or molds are furnished by the customer for each order to be pressed. The plastic resin is prepared in batches as needed and maintained in supply tanks in the press floor area. Record labels are printed by an outside printer (usually arranged for by the customer) and are maintained in a small supply room off the press floor. As needed, an appropriate supply of labels is held on a small ?spindle? next to the press where the label is being used. The steps in making the records are not complicated. The press operator must:Obtain a premeasured amount of resin *about 2 cubic inches) from the holding tank adjacent to the press.Center the lower side label on the lower moldCenter the resin on the lower moldCenter the upper label on the resinEngage the press (for about 12 seconds)Release the pressRemove the pressed recordInspect the record for major flawsPlace the record on a finished goods holding spindleThe press operator can work two presses at the same time. In addition the operator has related duties associated with materials handling of raw materials and finished goods.After pressing, the records proceed to sampling inspection and then to the packaging and shipping department which is under the supervision of the packaging supervisor. The packaging supervisor reports directly to the Vice President for Operations.The Press Department (consisting of 150 presses) is managed by a production superintend who has been with the company for 32 years. He is responsible for the present operations design as well as the operation procedures, most of which are not documented in writing. However the procedures are generally well understood by the press room employees. There are about 175 employees in the Press Department, although new presses (10 employees) were added last year and 10 new presses (11 employees) will be added this year. The production superintends reports directly to the Vice President for Operations.The company recently established a Methods and Work Measurement Unit which also reports directly to Vice President for Operations. The unit was established in order to quantify measures of work content in the various jobs in the organization, including the press floor, materials handling, resin production, and even office operations. The Vice President had felt for some time that improvements were needed in the work methods and measurement area. He felt that through the unit, improvement would result in the company?s job cost bidding procedures and general production control procedures. The V. P. has always had a high level of confidence in the production superintendent but recognized the fact that line employees need specialized staff assistance. The line employees could simply not be expected to do an adequate job of work measurement and methods analysis since they have more important primary missions, e. g., met production goals.The concerns of V.P. were heightened recently by a consulting report which showed PCA losing several major contacts to other record subcontractors who are using the same basic technology as PCA. The V.P. simply felt that improvements could be made throughout the organization.The Methods and Work Measurement Unit is headed by John Raymond, a 35 year old graduate of The Industrial Engineering Technology program at Southern Tech in Atlanta. Raymond has 14 years experience in methods and work measurement but has not heretofore worked in the phonograph record manufacturing industry.The first major task undertaken by the Unit was to establish specific standards for the pressing of 33 and 45 PRM records, including packaging. Raymond informed the production superintendent that a brief methods study would firs be performed. The production superintendent became furious, complaining directly to the V. P.:?Why do we need a method study of the press operation? I agree that we do have an immediate need for standards so that our sales people can bid jobs more effectively and we can implement a wage incentive system. The process we are using is fine however. You and I set that process ourselves together the two of us have over 50 years experience in this business while Raymond has 2 weeks experience. Do you trust our collective judgment or his? If those college kids in the Methods and Work Measurement Unit want to waste time on a methods study, let them do if after we?ve got the standards in place. I?m in charge of production on the press floor and therefore assume that I will continue to have responsibility for production methods. You can?t let the staff people circumvent my line authority. When we set up the unit, I thought that it was going to be a ?support? unit for the line. Now I find out that Raymond thinks he has the run of the place around here so that he can initiate any study he wants. That kind of practice is going to undermine my relationship with my supervisors and employees. After all, I am the line manager am I not? I manage the bread and butter, money making end of this organization. As such I should have control of my operation. The Unit should undertake studies of my operation at my invitation, not at their election. As a matter of fact, my press floor operation is by far the largest organization unit reporting to you as V.P. Maybe the Methods and Work Measurement Unit should report to me since 75% of their work will be done for me. That would resolve our conflict.?Questions:What is the major issue in this case?What created the major problem described in this case?What course of action should be taken?


Paper#51906 | Written in 18-Jul-2015

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