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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Although the learning curve never completely levels off to a horizontal line, if work standards are to be developed, there must be a point at which, for all practical purposes, learning is said to be have stoppped. If we have an 80 percent learning curve and say that the learning effect will be masked by other variables when the improvement in successive units is less than 0.5 percent, at about what unit number can the standard be set?
Your 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 work
A civil engineering firm designs bridges to span great distances. Years ago, the firm's first design took approximately 1,000 hours to develop. It has subsequently been able to reduce the time, quite dramatically, and believes it is operating on a 70 percent learning curve. Its next bridge design is to span the peaks of Mount Kilimanjaro and will be the 331st bridge it will have designed. How long will it take to design this unique bridge?
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.
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?
In Tronys Inc the first unit takes around 57 hours for the production whereas the learning curve rate is 71%, calculate the time taken by 32nd unit with using crawford model ?
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A new training program at Arid Industries is intended to lower the learning-curve coefficient of a certain molding operation that currently costs $95.50/hour. The current coefficient is .87, and the program hopes to lower the coefficient by 10%. Assume that the time to mold the first product is 8 hours. If the program is successful, what cost savings will be realized when the 2000th piece is produced?
K Kelly-Lambing, Inc., a builder of government contracted small ships, has a steady work force of 10 very skilled craftspeople. These workers can supply 2,440 labor-hours each per year. Kelly-Lambing is about to undertake a new contract, building a new style of boat. The first boat is expected to take 6,100 hours to complete. The firm thinks that 75% is the expected learning rate. What is the firm's "capacity" to make these boats-that is, how many units can the firm make in 1 year? If the operations manager can increase the learning rate to 70% instead of 75%, how many units can the firm make? (Round all numerical responses in this exercise to the nearest whole number.) Total time available = hours.
A newly established electric car company estimates that the manufacturing time for their 4th car to be 77.0 hours. Given an 85.0 learning percentage and a labor/overhead cost of $650 per hour, what's the total labor/overhead cost for the first set of 10 cars of the run
Girish Shambu and Delores Reisel are teammates at a discount store; their new job is assembling bicycles for customers. Assembly of a bike has a learning rate of 75%. They forgot to time their effort on the first bike, but spent 5 hours on the second. They have 6 more bikes to do. Determine approximately how much time will be (was) required for: a) The 1st unit= hours (round your response to two decimal places). b) The 8th unit-hours (round your response to two decimal places). c) The total amount of hours to build the 8 units-hours (round your response to two decimal places).
Temple Trucking Co. just hired Ed Rosenthal to verify daily invoices and accounts payable. He took 7 hours and 42 minutes to complete his task on the first day. Prior employees in this job have tended to follow a 85% learning curve. The amount of time that Ed is going to take for the task at the end of: a) 2nd Day minutes (round your response to the nearest whole number).

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