a)
To determine: The time required for the fourth and eighth installation for a learning rate of 92%.
Introduction:
Learning curve:
Learning curve is based on the premise that when a person is repeating a task or job again and again, the performance of the person on that job or task will improve. It will depict relationship between cost and output over a definitive period of time.
Doubling effect:
The concept is that each time when an output is doubled, the time it took to develop the doubled unit will be x% of the time it took to produce the base unit. Here ’x’ is the learning curve rate.
b)
To determine: The time required for the fourth and eighth installation for a learning rate of 84%.
Introduction:
Learning curve:
Learning curve is based on the premise that when a person is repeating a task or job again and again, the performance of the person on that job or task will improve. It will depict relationship between cost and output over a definitive period of time.
Doubling effect:
The concept is that each time when an output is doubled, the time it took to develop the doubled unit will be x% of the time it took to produce the base unit. Here ’x’ is the learning curve rate.
c)
To determine: The time required for the fourth and eighth installation for a learning rate of 77%.
Introduction:
Learning curve:
Learning curve is based on the premise that when a person is repeating a task or job again and again, the performance of the person on that job or task will improve. It will depict relationship between cost and output over a definitive period of time.
Doubling effect:
The concept is that each time when an output is doubled, the time it took to develop the doubled unit will be x% of the time it took to produce the base unit. Here ’x’ is the learning curve rate.
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Operations Management
- Only 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_forwardBerringer Designs hired a graphic artist. It is estimated that the artist's learning rate is at 70% and her first quarter's output amounted to 300 relatively equal job outputs, which took her a total of 50 hours to complete. Output is expected to double in every succeeding quarter. By the 5th quarter, based on learning curve estimates, what should the artist's average time (in hours) be for the units of output? Multiple Choice 17.15 hours 3.5 hours 12.005 hours 6.9 hours None of the answers is correctarrow_forwardRichard Dulski's firm is about to bid on a new radar system. Although the product uses new technology, Dulski believes that a learning rate of 90% is appropriate. The first unit is expected to take 780 hrs, and the contract is for 14 units a) The total amount of hours to build the 14 units= ____ hrs b) what is the average time to build each of the 14 units= _____ c)Assume that the worker works 2080 hrs per year. How many workers should be assigned to this control to complete in a year?arrow_forward
- HOW ARE LEARNING CURVES MODELED?arrow_forwardnote: answer all items .. 10. The preliminary work sample of an operation indicates the following; what is the required samplesize for a three (3) sigma with 4% accuracy. No. of times operator working 60No. of times operator idle 40 11. PJ Sumeguin, Inc. produces telephone system with built in TV screens. Its learning rate is 80%.a. If the first one took 56hrs, how long will it take the company to complete the 11th unit?b. How long will the 1st 11 systems take in total?c. If you are the purchasing agent, you are expected to buy units 12 through 15 of the newphone systems. What would be your expected cost for the units if company charges $30for each labor hour? 12. Margarette Tire shop simulated the following data below. How much is his expected dailydemand? Demand for Tires Frequency0 101 202 403 604 405 30arrow_forwardPlease don't provide handwriting solutionarrow_forward
- Outline some of the cautions and criticisms of learning curves.arrow_forwardPlot and analyze learning curves?arrow_forwardA contractor intends to bid on a job installing 30 airport security systems. Because this will be a new line of work for the contractor, he believes there will be a learning effect for the job. After reviewing time records from a similar type of activity, the contractor is convinced that an 85 percent curve is appropriate. He estimates that the first job will take his crew eight days to install. Use the following table for calculation. Learning curve coefficients 70% 75% 80% 85% 90% UnitNumber UnitTime TotalTime UnitTime TotalTime UnitTime TotalTime UnitTime TotalTime UnitTime TotalTime 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 .700 1.700 .750 1.750 .800 1.800 .850 1.850 .900 1.900 3 .568 2.268 .634 2.384 .702 2.502 .773 2.623 .846 2.746 4 .490 2.758 .562 2.946 .640 3.142 .723 3.345 .810 3.556 5 .437 3.195 .513 3.459 .596 3.738 .686 4.031 .783 4.339 6 .398 3.593 .475 3.934 .562 4.299 .657 4.688 .762 5.101 7 .367 3.960 .446 4.380 .534 4.834…arrow_forward
- Richard Dulski's firm is about to bid on a new radar system. Although the product uses new technology, Dulski believes that a learning rate of 85% is appropriate. The first unit is expected to take 760 hours, and the contract is for 13 units. a) The total amount of hours to build the 13 units = hours (round your response to the nearest whole number).arrow_forwardA contractor intends to bid on a job installing 30 airport security systems. Because this will be a new line of work for the contractor, he believes there will be a learning effect for the job. After reviewing time records from a similar type of activity, the contractor is convinced that an 85 percent curve is appropriate. He estimates that the first job will take his crew eight days to install. How many days should the contractor budget fora. The first 10 installations?b. The second 10 installations?c. The final 10 installations?arrow_forwardRichard Dulski's firm is about to bid on a new radar system. Although the product uses new technology, Dulski believes that a learning rate of 90% is appropriate. The first unit is expected to take 780 hours, and the contract is for 14 units. a) The total amount of hours to build the 14 units = hours (round your response to the nearest whole number).arrow_forward
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