A time study analyst timed an assembly operation for 30 cycles, and then computed the average time per cycle, which was 18.75 minutes. The analyst assigned a performance rating of .96, and decided that an appropriate allowance was 15 percent. Assume the allowance factor is based on the workday. Determine the following: the observed time (OT), the normal time (NT), and the standard time (ST).
OT = Average time = 18.75 minutes
NT = OT × Performance rating = 18.75 minutes × .96 = 18 minutes