CASTILLO, RAMM RAVEN D.

A-334
What have you learned from design work system?

I have learned from the design work system that it creates the framework for the
company's performance. This involves work environment, assessment of jobs, and
payment for employees. The company establishes the function of each job, what the
work requires of, and its employees' expense of performing the job. A work has to
contribute positively and help companies to accomplish its goals. There are two types of
compensation of the employees which are time-base system and output-based system.
Standard time is the period of time a skilled worker should have to perform a particular
job and stopwatch time study is based on observation.

THE FORMULA IN DETERMINING SAMPLE SIZE

n = ( zs / aX ) ^ 2

Where: Z = no. of normal standard deviations needed for desired confidence;

S = sample a standard deviation; a = desired accuracy percentage; X= sample mean

The Alternate formula, if a is express in amount

N= ( zs / e ) ^ 2 Where: e = maximum acceptable error

THE FORMULAS FOR DEVELOPMENT OF TIME STANDARD

1. Observed time (OT) = ∑ Xi / n

2. Normal Time (NT) = OT * PR WHERE: PR = performance rating

3. Standard Time (ST) = NT* AF WHERE: AF = allowance factor

Types of AF:

AF job = 1 + A WHERE: A = allowance percentage based on job time

AF day = 1 / 1- A WHERE: A = allowance percentage based on workday