Work Measurement Dilemma at Tharun Motors
On October 2014, Ravikanth Rao (Rao), Founder at Tharun Motors, received a Request For Quote (RFQ) from one of his customers – Original Equipment Manufacturers (OEMs) for installing 400 units of mufflers per week. Rao had to estimate the cost involved.
Tharun Motors, a Bangalore-based manufacturer of automobile mufflers, was established by Rao in 2010. Rao had a rich work experience of more than 10 years, with TVS Motors as a Production Manager. With his technical abilities, managerial qualities and networking skills he made Tharun motors one of the major suppliers of mufflers to well-known auto manufacturers within 3 years. Apart from supplying mufflers, Tharun motors also worked on certain subassemblies like – installing mufflers, installing batteries, etc.
On October 24th 2014, Rao received a RFQ for installing mufflers from one of his customers. The components were standard and simple and could be accommodated into the existing production schedule or even readily available from established suppliers on a JIT (Just-In-Time) basis..............
Assignment Questions
I. According to you what should be the sample size for a statistically accurate standard (at say, 99.73% confidence level and accuracy of 5%)?
II. In your opinion how many units could be produced at this workstation per day?
III. ...............
Exhibit
Exhibit I: Observed Actual Times