Q: A computer company’s cost function, which relates its average cost
A computer company’s cost function, which relates its average cost of production AC to its cumulative output in thousands of computers Q and its plant size in terms of thousands of computers produced...
See AnswerQ: Assume that Whee, Cheatham, and Howe is an auditing firm
Assume that Whee, Cheatham, and Howe is an auditing firm that has found that its summer interns are subject to a 90 percent learning curve for one of its important tasks, proofreading financial statem...
See AnswerQ: You need to develop a labor time estimate for a customer order
You need to develop a labor time estimate for a customer order of 20 network installations. It is estimated that the first installation will require 60 hours of labor, and a learning curve of 90 perce...
See AnswerQ: The learning curve phenomenon has been shown in practice to be widely
The learning curve phenomenon has been shown in practice to be widely applicable. Once a company has established a learning rate for a process, they can use it to predict future system performance. Wo...
See AnswerQ: Do you think learning curve analysis has application in a service business
Do you think learning curve analysis has application in a service business like a restaurant? Why or why not?
See AnswerQ: Patti Smith looked up at the bright blue Carolina sky before she
Patti Smith looked up at the bright blue Carolina sky before she entered the offices of Horizon Consulting. Today was Friday, which meant she needed to prepare for the weekly status report meeting. Ho...
See AnswerQ: Northern Defense manufactures radar systems. It has just completed the manufacture
Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow: Required: Calculate the total va...
See AnswerQ: Assume the same information for Northern Defense as in Exercise 10-
Assume the same information for Northern Defense as in Exercise 10-33, except that Northern Defense uses an 85% incremental unit-time learning model as a basis for predicting direct manufacturing labo...
See AnswerQ: The Emerson Corporation, a manufacturer of airplane landing gear equipment,
The Emerson Corporation, a manufacturer of airplane landing gear equipment, is trying to develop a learning curve model to help forecast labor costs for successive units of one of its products. From p...
See AnswerQ: The Pacific Boat Company, which is under contract to the U
The Pacific Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. As part of its research program, it completes the assembly of the first of a new model (PT109) of...
See AnswerQ: Assume the same information for the Pacific Boat Company as in Problem
Assume the same information for the Pacific Boat Company as in Problem 10-40 with one exception. This exception is that Pacific Boat uses a 90% incremental unit-time learning model as a basis for pred...
See AnswerQ: Would you expect a task in a manufacturing plant that uses lots
Would you expect a task in a manufacturing plant that uses lots of complex equipment to have a learning curve closer to 70 percent or 95 percent?
See AnswerQ: You are the marketing manager for a small company located in the
You are the marketing manager for a small company located in the United States that manufactures specialized parts for high-end ink-jet printers. The company’s largest customer (Hewlett Packard) has...
See AnswerQ: Let P(t) be the performance level of someone learning
Let P(t) be the performance level of someone learning a skill as a function of the training time t. The graph of P is called a learning curve. In Exercise 9.1.15 we proposed the differenti...
See AnswerQ: Psychologists interested in learning theory study learning curves. A learning curve
Psychologists interested in learning theory study learning curves. A learning curve is the graph of a function P(t), the performance of someone learning a skill as a function of the training time t. T...
See AnswerQ: Global Defense manufactures radar systems. It has just completed the manufacture
Global Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow: Required: Calculate the total var...
See AnswerQ: Assume the same information for Global Defense as in Exercise 10-
Assume the same information for Global Defense as in Exercise 10-29, except that Global Defense uses an 85% incremental unit-time learning model as a basis for predicting direct manufacturing labor-ho...
See AnswerQ: The Nautilus Company, which is under contract to the U.
The Nautilus Company, which is under contract to the U.S. Navy, assembles troop deployment boats. As part of its research program, it completes the assembly of the first of a new model (PT109) of depl...
See AnswerQ: Assume the same information for the Nautilus Company as in Problem 10
Assume the same information for the Nautilus Company as in Problem 10-36 with one exception. This exception is that Nautilus uses a 90% incremental unit-time learning model as a basis for predicting d...
See AnswerQ: Learning curves are used in production operations to estimate the time required
Learning curves are used in production operations to estimate the time required to complete a repetitive task as an operator gains experience. Suppose a production manager has compiled 30 time values...
See AnswerQ: Limitation plc commenced the manufacture and sale of a new product in
Limitation plc commenced the manufacture and sale of a new product in the fourth quarter of the previous year. In order to facilitate the budgeting process for quarters 1 and 2 of the next year, the f...
See AnswerQ: Leano plc is investigating the financial viability of a new product X
Leano plc is investigating the financial viability of a new product X. Product X is a short life product for which a market has been identified at an agreed design specification. It is not yet clear w...
See AnswerQ: Modern day aircraft are complex pieces of engineering, increasingly using more
Modern day aircraft are complex pieces of engineering, increasingly using more technology, composite materials and more efficient engines. Aircraft engines are in particular improving not only in fuel...
See AnswerQ: Psychologists interested in learning theory study learning curves. A learning curve
Psychologists interested in learning theory study learning curves. A learning curve is the graph of a function P (t), the performance of someone learning a skill as a function of the training time t....
See AnswerQ: Some companies use production learning curves to set pricing strategies. They
Some companies use production learning curves to set pricing strategies. They price their product lower than the initial cost of making the product; after some period of time, the learning curve takes...
See AnswerQ: Ellington Company manufactures a line of motorbikes and dirt bikes under the
Ellington Company manufactures a line of motorbikes and dirt bikes under the trade name CrossCountry. The company has been in business for almost 20 years and has maintained a profitable share of the...
See AnswerQ: Weathereye Inc. manufactures weather satellites. The final assembly and testing
Weathereye Inc. manufactures weather satellites. The final assembly and testing of the satellites is a largely manual operation involving dozens of highly trained electronics technicians. The followin...
See AnswerQ: The better students at Providence Assessment Center have an 80% learning
The better students at Providence Assessment Center have an 80% learning curve and can do a task in 20 minutes after just six times. You would like to weed out the weak students’ sooner and decide to...
See AnswerQ: Suad Alwan, the purchasing agent for Dubai Airlines, is interested
Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number 4 if the third plane took 20,000 hours to produce. What would Alwan expe...
See AnswerQ: Using the data from Problem E.14, how long will
Using the data from Problem E.14, how long will it take to complete the 12th plane? The 15th plane? How long will it take to complete planes 12 through 15 inclusive? At $40 per hour, what can Alwan, a...
See AnswerQ: Central Electronics Corp. produces semiconductors and has a learning curve of
Central Electronics Corp. produces semiconductors and has a learning curve of .7. The price per bit is 100 Millicent’s when the volume is .7 × 1012 bits. What is the expected price at 1.4 × 1012 bits?...
See AnswerQ: Regional Power owns 25 small power generating plants. It has contracted
Regional Power owns 25 small power generating plants. It has contracted with Genco Services to overhaul the power turbines of each of the plants. The number of hours that Genco billed Regional to comp...
See AnswerQ: As the estimator for Rajendra Tibrewala Enterprises, your job is to
As the estimator for Rajendra Tibrewala Enterprises, your job is to prepare an estimate for a potential customer service contract. The contract is for the service of diesel locomotive cylinder heads....
See AnswerQ: The service times for a new data entry clerk have been measured
The service times for a new data entry clerk have been measured and sequentially recorded as shown below: a) What is the learning curve rate, based on this information? b) Using an 85% learning curve...
See AnswerQ: An aircraft engine manufacturing company spent 68,000 man-hours
An aircraft engine manufacturing company spent 68,000 man-hours to produce the first unit of a turbo engine; 40,000 man-hours were spent on the 27th production. Calculate the learning curve rate using...
See AnswerQ: Manceville Air has just produced the first unit of large industrial compressor
Manceville Air has just produced the first unit of large industrial compressor that incorporated new technology in the control circuits and a new internal venting system. The first unit took 112 hours...
See AnswerQ: IBM asked SMT and one other, much larger company to bid
IBM asked SMT and one other, much larger company to bid on 80 more units of a particular computer product. The request for quote (RFQ) asked that the overall bid be broken down to show the hourly rate...
See AnswerQ: Modern day aircraft are complex pieces of engineering, increasingly using more
Modern day aircraft are complex pieces of engineering, increasingly using more technology, composite materials and more efficient engines. Aircraft engines are in particular improving not only in fue...
See AnswerQ: SVC is a car manufacturer. SVC is planning the development of
SVC is a car manufacturer. SVC is planning the development of a prototype hydrogen-powered car, the Model Q. The prototype Model Q car will have a limited production run of 250 cars. Toensure that the...
See AnswerQ: Genève Défense Systèmes manufactures radar systems. It has just completed the
Genève Défense Systèmes manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. It took 3000 direct manufacturing labor-hours (DMLH) to produce thi...
See AnswerQ: Assume the same information for Genève Défense Systèmes as in Exercise 9
Assume the same information for Genève Défense Systèmes as in Exercise 9.17 except that Genève Défense Systèmes uses a 90% incremental unit-time learning curve as a basis for forecasting direct manuf...
See AnswerQ: People assigned to assemble circuit boards for a computer manufacturing company undergo
People assigned to assemble circuit boards for a computer manufacturing company undergo on-the-job training. From past experience, the learning curve for the average employee is given by N = 40 ( 1...
See AnswerQ: Patti Smith looked up at the bright blue Carolina sky before she
Patti Smith looked up at the bright blue Carolina sky before she entered the offices of Horizon Consulting. It was Friday, which meant she needed to prepare for the weekly status report meeting. Horiz...
See AnswerQ: Anyone who has been involved with designing and constructing video games will
Anyone who has been involved with designing and constructing video games will tell you that game development never goes as planned. I sometimes think that it is a miracle that any game gets developed....
See AnswerQ: Operating at an 80 percent learning rate, the first unit took
Operating at an 80 percent learning rate, the first unit took 72 hours to produce. Use the Learning Curve Excel template to determine how long the 32nd unit will take. What is the cumulative average t...
See AnswerQ: Suppose a manufacturer of copiers has concluded that a 75 percent learning
Suppose a manufacturer of copiers has concluded that a 75 percent learning curve applies to the time a beginning service technician takes to install copy machines. Use the Learning Curve Excel templat...
See AnswerQ: Yacht Superior manufactures boats for a yacht rental firm. They are
Yacht Superior manufactures boats for a yacht rental firm. They are in negotiation for the total price for 50 Model C314 yachts. Based on past experience, the learning rate for their employees and sys...
See AnswerQ: A manufacturer has committed to supply 16 units of a particular product
A manufacturer has committed to supply 16 units of a particular product in four months (i.e., 16 weeks) at a price of $30,000 each. The first unit took 1,000 hours to produce. Even though the second u...
See AnswerQ: Linda Bryant recently started a small home-construction company. In
Linda Bryant recently started a small home-construction company. In an effort to foster high quality, rather than subcontracting individual work, she has formed teams of employees who are responsible...
See AnswerQ: Harriman Industries manufactures engines for the aerospace industry. It has completed
Harriman Industries manufactures engines for the aerospace industry. It has completed manufacturing the first unit of the new ZX-9 engine design. Management believes that the 1,000 labor hours require...
See AnswerQ: Thames Assurance Company sells a variety of life and health insurance products
Thames Assurance Company sells a variety of life and health insurance products. Recently, Thames developed a long-term care policy for sale to members of university and college alumni associations. Th...
See AnswerQ: Arthur sat back in his chair and looked at the other accountants
Arthur sat back in his chair and looked at the other accountants who were working on their laptops. How had he gotten himself into this situation? It began last year when he was hired by Castor Gotlie...
See AnswerQ: It is now May 1 of year 0, and GM is
It is now May 1 of year 0, and GM is deciding whether to produce a new car. The following information is relevant. ■ The fixed cost of developing the car is incurred on January 1 of year 1 and is assu...
See AnswerQ: The Blue Seas Company, which is under contract to the Navy
The Blue Seas Company, which is under contract to the Navy, assembles troop deployment boats. As part of its research program, it completes the assembly of the first of a new model (PT109) of deployme...
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