Correct Answer - Option 4 : 1.26
Concept:
Mathematically, Normal time can be calculated by:
Normal time = Basic time × Rating factor
Standard time can be calculated by:
Standard time = Normal time × Allowances Factor
where,
\(Allowance\;factor = \;\frac{{100}}{{\left( {100 - allowance\;in\;\% } \right)}}\)
Calculation:
Given:
Observed/Basic time = 1 minute, Performance rating = 120, Allowance = 5%
\(Normal\;time = 1 × \frac{{120}}{{100}} = 1.2\)
\(Allowance\;factor = \;\frac{{100}}{{100 - 5}} = 1.053\)
Standard Time = 1.2 × 1.053 = 1.26
Normal time: Normal time also called as the base time or levelled time is the time that a trained worker needs to complete the task at a normal pace
Standard time: The Standard time is the time taken by an employee to complete the work with 100% efficiency having some unavoidable situations leading to delays.
Allowance factor: Allowances in time study can be defined as the extra time figures which are to be added to the basic time of an operation to account for personnel desires, delays, the fatigue of operators, any special situation and the policies of the firm or organization
