Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Question
Chapter E, Problem 22P
a)
Summary Introduction
To determine: The number of boats, the firm can make in 1 year.
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.
b)
Summary Introduction
To determine: The number of boats, the firm can make in 1 year.
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.
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Students have asked these similar questions
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
Omega Technology is starting production of a new supercomputer for use in large research universities. It has just completed the first unit, which took 120 labor hours to produce. Based on its experience, it estimates its learning percentage to be 80 percent. How many labor hours should it expect in manufacturing the second unit?
1
2
3
4
5
6
7
8
Manceville Air has just produced the first unit of a large industrial compressor that incorporated new technology in
the control circuits and a new internal venting system. The first unit took 112 hours of labor to manufacture. The
company knows from past experience that this labor content will decrease significantly as more units are produced.
In reviewing past production data, it appears that the company has experienced a 85% learning curve when producing
similar designs. The company is interested in estimating the total time to complete the next 7 units.
Your job as the production cost estimator is to prepare the estimate. Refer to Table E.3.
Total manufacturing time for the:
first 8 units
Learning Curve Coefficients
Unit Number (N)
8
Unit
Time
.512
80%
Total
Time
5.346
hours
Unit
Time
.614
85%
(round your response to the nearest whole number).
Total
Time
5.936
Unit
Time
.729
90%
Total
Time
6.574
-
X
Chapter E Solutions
Operations Management
Ch. E - Prob. 1DQCh. E - Prob. 2DQCh. E - Prob. 3DQCh. E - Prob. 4DQCh. E - Prob. 5DQCh. E - Prob. 6DQCh. E - Prob. 7DQCh. E - Prob. 8DQCh. E - Prob. 1PCh. E - Prob. 2P
Ch. E - Prob. 3PCh. E - Prob. 4PCh. E - Prob. 5PCh. E - Prob. 6PCh. E - Prob. 7PCh. E - Prob. 8PCh. E - Prob. 9PCh. E - Prob. 10PCh. E - Prob. 11PCh. E - Prob. 12PCh. E - Prob. 13PCh. E - Suad Alwan, the purchasing agent for Dubai...Ch. E - Prob. 15PCh. E - Prob. 16PCh. E - Regional Power owns 25 small power generating...Ch. E - Prob. 18PCh. E - Prob. 19PCh. E - Prob. 20PCh. E - Prob. 21PCh. E - Prob. 22PCh. E - Prob. 23PCh. E - Prob. 24PCh. E - Using the accompanying log-log graph, answer the...Ch. E - Prob. 26PCh. E - Prob. 1CSCh. E - Prob. 2CSCh. E - Prob. 3CS
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Similar questions
- A manufacturer of diesel locomotives needs 50,000 hours to produce the first unit. Based on past experience with similar products, the rate of learning is 80 percent. a. Use the logarithmic model to estimate the direct labor required for the 40th diesel locomotive and the cumulative average number of labor hours per unit for the first 40 units. b. Draw a learning curve for this situation.arrow_forwardPlease don't provide handwriting solutionarrow_forwardOmega Technology is starting production of a new supercomputer for use in large research universities It has just completed the first unit, which took 120 labor hours to produce. Based on its experience, it estimates its learning percentage to be 80 percent How many labor hours should it expect the second unit to require to manufacture?arrow_forward
- 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 hoursarrow_forwardScenario: You are a project manager overseeing the production of a new product. The production team is using a new manufacturing process, and you want to estimate the total cost for producing 100 units of the product based on the learning curve effect. Given Information: The learning curve slope (learning rate) is 80%. This means that for every doubling of production quantity, the time required for production decreases by 20%. The cost for producing the first unit is $1,000. Question: What will be the estimated total cost for producing 100 units of the product?arrow_forwardYour work for Double 9 Enterprises involves the manufacture of new magnesium parts for a particulate capture system. No matter the changes you make, your learning curve is standard at 89% because you do a good job at employee retention and most have been with the company for many years. You typically reach steady state by the 37th unit within the first 120 hours of the production run. Your new process has an estimated 96% learning curve, but it is producing at a much faster rate than expected. With steady state being reached now for the 29th unit in 99 hours, what is your estimated time for the 1st unit in this run in hours?arrow_forward
- The labor cost to produce a certain item is $8.50 per hour. Job setup costs $50 and material costsare $20 per unit. The item can be purchased for $88.50 per unit. The learning rate is 90 percent.Overhead is charged at a rate of 50 percent of labor, materials, and setup costs.a. Determine the unit cost for 20 units, given that the first unit took 5 hours to complete.b. What is the minimum production quantity necessary to make production cost less than purchasecost?arrow_forwardA company uses learning curves for initial labor estimates with replicated deliverables. For this particular type of project, they determine that 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 your final cost answer to the nearest dollar (if applicable) and omit the $ symbol in your answer. Carry all intermediate calculations to at least 5 decimal places if performing calculations by hand and use the table provided in the file. (Caution: Watch your dimensions. Enter your answer in dollars, NOT thousands of dollars) Click to operarrow_forwardMcDonald's, the fast-food restaurant, is known for high employee turnover, high quality, and low costs. Using your knowledge of the learning phenomenon, how does McDonald's get high quality and low costs when it has so much employee turnover?arrow_forward
- National Co. has developed a new production process to manufacture its product. The new process is complex and requires a high degree of technical skill. However, management believes there is a good opportunity for the employees to improve as they become more familiar with the production process. The production of the first unit requires 100 direct labor hours. If a 70% learning curve is used, the cumulative direct labor hours required to produce a total of eight units would bearrow_forwardYour company has received an order for 60 units of a product. The labor cost to produce the item is $22 per hour. The setup cost for the item is $1200 and material costs are $80 per unit. The learning rate is 80 percent. Overhead costs are charged at a rate of 60 percent of material cost. Determine the average production unit cost for the 60 units if the first unit takes 12 hours. The item is sold for $219.99 per unit. Should your company take this order? Why or why not? Determine the minimum number of units that need to be made before it makes sense to accept the order. Show breakdown of workarrow_forwardLearning Curves 1. Mass Balance Company is manufacturing a new digital scale for use by a large chemical company. The order is for 40 units. The first scale took 60 hours of direct labor. The second unit took 54 hours to complete. a) What is the learning rate? b) What is the estimated time for the 40th unit? c) What is the estimated total time for producing all 40 units? d) What is the average time per unit for producing the last 10 units (#30 - #40)?arrow_forward
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