A company uses learning curves for initial labor estimates with replicated deliverables. For this particular type of project, they determinethat a 90% learning curve applies (improvement rate of 10%). The initial (first) unit takes 624 thousand hours. Determine the time(estimate) required for unit 4 and then compute the resulting labor cost for that unit based on a labor rate of $30 per hour. Round yourfinal cost answer to the nearest dollar (if applicable) and omit the $ symbol in your answer. Carry all intermediate calculations to at least 5decimal places if performing calculations by hand and use the table provided in the file. (Caution: Watch your dimensions. Enter youranswer in dollars, NOT thousands of dollars)Click to oper

I will determine the time required for unit 4, The rest of the answers are shown below,

Answered: A company uses learning curves for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Suppose a manufacturer of copiers has concluded that a 70 percent learning curve applies to the time a beginning service technician takes to install copy machines. Use the Learning Curve Excel template to answer the following questions: If the time required to install the first copy machine is estimated to be five hours, what is an estimate of the time required by a new technician to install the second and third copiers? Round your answers to one decimal place. For x = 2 it takes hours For x = 3 it takes hours If the learning rate changes to 65 or 95 percent, what is an estimate of the time required by a new technician to install the second and third copiers? Round your answers to one decimal place. For x = 2 and a 65% LC, it takes hours For x = 3 and a 65% LC, it takes hours For x = 2 and a 95% LC, it takes hours For x = 3 and a 95% LC, it takes hours
A contractor is preparing a bid to install swimming pools at a new housing addition. The estimated time to build the first pool is 38 hours. The contractor estimates an 80 percent learning rate. Using POM for Windows or OM Explorer, how long do you estimate the time required to install the sixth pool? The time required to install the sixth pool is enter your response herehours. (Enter your response rounded to two decimal places.) Part 2 What is your estimate of the total time for all six pools? The total time for all six pools is enter your response here hours. (Enter your response rounded to two decimal places.)
You are setting up a new production line for a new type of delivery drones. You observed that the cost for the 10th unit was $6296.33 and the cost for the 80th unit was $4146.15. a) What is the K for the learning curve model of this production line? b) What is the s for the learning curve model of this production line? c) At which unit does its production cost start to be less than $1500?
Suppose a manufacturer of copiers has concluded that a 70 percent learning curve applies to the time a new service technician takes to install copy machines. Use the Learning Curve Excel template in MindTap to answer the following questions: a. If the time required to install the first copy machine is estimated to be three hours, what is an estimate of the time required by a new technician to install the third and fourth copiers? Round your answers to one decimal place. For x = 3 it takes hours For x = 4 it takes hours b. If the learning rate changes to 60 or 90 percent, what is an estimate of the time required by a new technician to install the third and fourth copiers? Round your answers to one decimal place. For x = 3 and a 60% LC, it takes For x = 4 and a 60% LC, it takes For x = 3 and a 90% LC, it takes For x = 4 and a 90% LC, it takes hours hours hours hours
The personnel manager of Powerwest Inc. wants to estimate the direct and cumulative average direct labor hours for producing 30 locomotive train units during the next year. He estimates from past experience that the learning rate is 90 percent. The production department estimate that manufacturing the first unit will take 30,000 hours. Each employee averages 200 hours per month. The production rate forecast is as follows: Month Production Rate (units) Month Production Rate (units) January 2 July 2 February 3 August 4 March 2 September 3 April 4 October 3 May 3 November 1 June 2 December 1 Show/explain step by step, so I fully understand the process. How many direct hours are required to produce the 30th unit? How many total hours are needed to produce all 30 units? What is the maximum number of employees required next year? If the learning rate were to change to 0.85, what would be the impact on the total hours…
National Company is planning to introduce a new product with an 90 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning. What is the total labor cost for the cumulative total time using the incremental unit-time learning curve to produce 2,000 units?
You have been asked to estimate the selling price per unit of a new production line of a certain product. Pertinent data are as follows: Direct labor rate Production material Factory overhead Packing costs Desired profit RO 15.00 per hour RO 375 per 100 items 125% of direct labor 25% of direct cost 30% of total manufacturing cost Past experience has shown that 83% learning curve applies to the labor required for production these items. The time to complete the first item has been estimated to be 1.86 hours. Use the estimated time to complete the 50h item as your standard time for the purpose of estimating the unit selling price.
Cumulative Average-Time Learning CurvePohlman Company makes aircraft engines. Pohlman has noticed that, in general, each new engine design is subject to an 80 percent learning rate. Assume that the first unit produced takes500 hours, and direct labor is paid an average of $30 per hour. Required:1. Set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, and cumulative total time in hours. Show results by row for total pro-duction of: one engine, two engines, four engines, eight engines, sixteen engines, and thirty-two engines. (Round hour answers to two significant digits.) 2. What is the total labor cost if Pohlman manufactures the following number of engines: one,four, or sixteen? What is the average cost per engine for the following number of engines:one, four, or sixteen? (Round your answers to the nearest dollar.)3. What if Pohlman is preparing a bid to build 16 engines? Calculate budgeted labor cost for anengine design which…
The personnel manager of Powerwest Inc. want to estimate the direct and cumulative average direct labor hours for producing 30 locomotive train units during then next year. He estimates from past experience that the learning rate is 90 percent. The production department estimate that manufacturing the first unit will take 30,000 hours. Each employee average 200 hours per month. The production rate forecast is as follows: Month Production Rate (units) Month Production Rate (units) January 2 July 2 February 3 August 4 March 2 September 3 April 4 October 3 May 3 November 1 June 2 December 1 How many direct hours are required to produce the 30th unit? How many total hours are needed to produce all 30 units? What is the maximum number of employees required next year? If the learning rate were to change to 0.85, what would be the impact on the total hours and the number of employees needed to product 30 units?
Suppose in a production run of a certain product it is observed that the cumulative hours required to produce 100 units is 100,000 h with a learning curve effect of 85%. For project planning purposes, an analyst needs to calculate the number of hours spent in producing the fiftieth unit.
Consider two processes, A and B, with an initial cost of c(1) = 20. Process A has alearning rate of LR = 0.95 and process B has a learning rate of LR = 0.8. After 20 units:a. process A is cheaper.b. process B is cheaper.c. the two processes will have the same cost.d. cannot be determined from the given information
The most important factor(s) effecting the learning curve rate include(s): Select one: A. Complexity of the task B. Percentage of mechanical input C. Percentage of human input D. Only A and C Yield management, also known as revenue management is the amount of output of acceptable quality emerging from a production system compared with the amount that entered it. Select one: True False Obtaining lower unit costs through the use of larger facilities is called economies of scope. Select one: True False It is not unusual for fire departments to use “slack months” for building inspections, conducting prevention programs and giving talks as a way to have anticyclic outputs. Select one: True False In addition to showing time schedules, Gantt charts can also be used for capacities of facilities, workers, jobs,activities, and so forth. Select one: True False

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