Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 6, Problem 4PA
Summary Introduction
To determine: The unit cost for the 128th unit.
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Recall from the lecture that the functional form for a learning curve (LC) is y = axb where y is time to produce the most recent unit and x is the cumulative production. Here, the coefficient a is the time required to produce the first unit. The exponent (b), which is negative value, represents the learning rate. Consider a production system that needs to produce its main product based on 75% learning curve. It was measured that it took 180 minutes to produce the first unit from this production system.
A. How much time would it take to produce the 20th unit? Show your work.
B. Suppose the 20th unit was just produced and customer placed order of 10 more units. How much time would it take to produce those 10 more units? Use definite integral method with adjusted range. Show your work.
C. What is the production rate for producing 10 units in the above question (#1.B) in the dimension of [parts/hour]? Show your work.
An engineer at KBR wants to predict the cost per
unit for KBR Construction to build 175 field-ready
office/storage units in their plant. The Red Cross
uses the units in international relief efforts. Plot
the learning curves on arithmetic and log-log
scales for a 95% learning rate applied to costs if
the first unit costs $3000.
The power law can be used to represent a common form of a learning curve
that uses __________ as a dependent variable and __________ as the independent?
variable?
Chapter 6 Solutions
Operations Management
Ch. 6 - Prob. 1CQCh. 6 - Prob. 2CQCh. 6 - Prob. 3CQCh. 6 - Prob. 4CQCh. 6 - Prob. 5CQCh. 6 - Prob. 6CQCh. 6 - Prob. 7CQCh. 6 - A learning curve following the power law has what...Ch. 6 - Prob. 9CQCh. 6 - Prob. 10CQ
Ch. 6 - Prob. 11CQCh. 6 - The learning curve coefficient LCC(10, 0.8)...Ch. 6 - Prob. 13CQCh. 6 - Instead of using the learning curve coefficient...Ch. 6 - Prob. 15CQCh. 6 - Prob. 16CQCh. 6 - Prob. 17CQCh. 6 - Prob. 18CQCh. 6 - Prob. 19CQCh. 6 - Prob. 20CQCh. 6 - Prob. 21CQCh. 6 - Prob. 22CQCh. 6 - Prob. 23CQCh. 6 - Prob. 24CQCh. 6 - Prob. 25CQCh. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 6PACh. 6 - Prob. 7PACh. 6 - Prob. 8PACh. 6 - Prob. 9PACh. 6 - Prob. 10PACh. 6 - A company has 2200 employees, on average, and it...Ch. 6 - Prob. 12PACh. 6 - Prob. 13PACh. 6 - Prob. 14PACh. 6 - In October 1908, just prior to the launch of his...Ch. 6 - Prob. 2CCh. 6 - Prob. 3C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Ma1. DRILL is a company specialized in the design and fabrication of oil drilling rigs. The sales department just received two orders from two companies A and B. The production manager of DRILL decided to deliver the first 3 fabricated rigs to Company A and the next 4 fabricated rigs (rigs 4 to 7) to company B. It took DRILL company 50,000 labor-hours to manufacture the first oil drilling rig. Assume that DRILL experiences a learning rate of 90%. At a labor rate of $100 per hour, what is the labor cost that should be charged to each company (A&B)?arrow_forwardThe fifth unit of a 10-unit job took five hours to complete. The sixth unit has been worked on fortwo hours, but is not yet finished. Estimate the additional amount of time needed to finish the10-unit job if the work has a 75 percent learning ratearrow_forwardWhich kind of device is probably more likely to have one highly automated or labor intensive learning rate with a mostly highly automated equipment?arrow_forward
- I submitted this question for answering yesterday,but I can't figure out how the learning rate was calculated as =70%arrow_forwardIf 315 labor hours were required to produce the 1st unit in a production run and 137 labor hours were required to produce the 9th unit, what was the learning-curve rate during production?arrow_forwardNUBD, is beginning the production of a new product. Management believes that 500 labor hours will be required to complete the new unit. An 85 percent incremental unit-time learning curve model for direct labor hours is assumed to be valid. Assume the q = -0.2345. What is the total hours for 3 units?arrow_forward
- A learning curve of 80% assumes that production unit costs are reduced by 20% for each doubling of output. What is the cost of the sixteenth unit produced as an approximate percent of the first unit produced? 30% 51% 40.96% 64%arrow_forwardConsider the trajectory showing the percentage of customer orders in a restaurant thatwere handled correctly. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growtharrow_forward. A lower learning rate corresponds to a steeper slope in a log-log graph of the learningcurve. True or false?a. Trueb. Falsearrow_forward
- Maxera Corporation has designed a new video game controller. It took the company 52 minutes to produce the first unit. If the company uses a 75% learning rate for this task, how long should it take the company to produce the 6th unit? the 18th unit? the 30th unit? the first 6 units? the first 18 units? the first 30 units? the units 7th through 18th? the units 19th through 30th?arrow_forwardAssume a learning curve following the power law. If you double the initial cost c(1) of aproduct, the cost of the 21st unit, c(21), will:a. stay the same.b. be reduced by 50 percent.c. be doubled.d. increase by a factor of ln(2).arrow_forwardAcme Batteries is introducing a new line of batteries for electric vehicles. The first battery cell costs $120 with a learning rate of 0.80. How much does the 100th battery cost? Create an Excel spreadsheet based on the model in part a, change the number of units and compute the cost per cell repeatedly to experimentally determine at what number of units of production the cost comes down to $8 per battery cell. Copy and paste a screenshot of the spreadsheet below. Provide an explanation. All info is included.arrow_forward
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