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    CASE: The Navigator III

    Uploaded by

    Genner Raz

    Copyright:

    © All Rights Reserved
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    CASE: The Navigator III

    Uploaded by

    Genner Raz
    6 views2 pages

    Original Title

    CASE study

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    Copyright:

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    Download as docx, pdf, or txt
    6 views2 pages

    CASE: The Navigator III

    Uploaded by

    Genner Raz

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CASE: The Navigator III

    Frank Jones, the owner of Frank's Fabricators, has collected the following information to
    develop a standard time for producing the Navigator III, a universal remote control. All of
    the times are in minutes.

    Frank has noticed that one of his senior operators, Sam, is able to consistently produce
    the Navigator III much quicker than other employees. However, Sam always produces
    exactly what the standard requires each day. Sam insists that he does everything
    according to the job directions. He offers no additional insight into how quickly he
    achieves the standard output levels.

    During casual observations, Frank noticed that Sam appears to be doing element 6
    much quicker than anyone else. Because of this, he asks Susan, a time-study analyst,
    to observe how Sam is doing element 6. After observing Sam, she determined that his
    mean observed time for element 6 was 1.50 minutes, and she rated his performance at
    100 percent. This suggests that his output is not being accomplished by unusual effort
    on his part. Since Sam was significantly quicker than the standard but was only working
    at 100 percent, Susan suggested that he had developed a new method for doing
    element 6.

    Questions

    1. Based on Susan's observations, determine how long it actually takes Sam to produce
    a Navigator III.

    2. If direct labor is assessed at $18 per hour, what would the labor savings per
    Navigator III be if all the employees used the same method that Sam uses?

    3. If Frank's Fabricators produces 20,000 Navigator IIIs each month, what are the
    potential annual savings by using Sam's method for element 6?
    4. Why do you think Sam is reluctant to share his method improvement for element 6
    with the company?

    5. Do standard times inhibit process improvement?

    6. How can you ensure that employees will share time- saving improvements?

    7. From an employee's perspective, why wouldn't you share a process improvement


    with the company?

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