Concept explainers
To prepare: A list of observations regarding the information provided in this case.
Introduction:
An automobile manufacturer is making a product recall due to a defect in the steering mechanism, which would make the automobile to go out of control. The company pays a fair amount to its dealers. After discussion, the engineers came to a conclusion to fix the defect for $88 per repair at an hourly rate of $22 and their learning rate is 90%.
The company received complaints from its dealers related to the rate fixed by the engineers. The dealers claimed that their employees suggested a rate of $110 per repair. Each of the three mechanics completed two repairs. Average time taken for repairing the first unit was 9.6 hours and average time for the second unit was 7.2 hours.
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OPERATIONS MANAGEMENT LOOSELEAF W/ CONN
- Explain how changes in a process will trigger scallops in a learning curve once it's started.arrow_forwardOnly typed explanation otherwise leave it United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 3,750 hours and cost $19,500 in materials and equipment usage. Labor cost is charged at $25 per hour. The company expects “learning” to occur relative to labor and also the pricing of parts from suppliers. The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls. a. What will the last unit cost to build? (Round your answer to the nearest dollar amount.) b. What will be the average time for the 20 missile guidance controls? (Round your answer to the nearest whole number.) c. What will the average cost be for guidance control for the 20 in the contract? (Round your answer to the nearest dollar amount.)arrow_forwardHOW ARE LEARNING CURVES MODELED?arrow_forward
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