Learning Curves The Air Force Museum Foundation has commissioned the purchase of 16 FourF Sixes, pre–World War II aircraft. They will be built completely from scratch to the exact specifications used for the originals. As further authentication, the aircraft will be made using the technologyand manufacturing processes available when the originals were built. Each of the 16 airplanes will beflown to Air Force and aviation museums throughout the country for exhibition. Aviation enthusiastscan also visit the production facility to see exactly how such aircraft were built in 1938.Soren Industries wants to bid on the aircraft contract and asked for and received certain costinformation about the Four F Sixes from the Air Force. The information includes some of the oldcost data from the builders of the original aircraft. The available information is for the total accumulated time as the 1st, 8th, and 32nd aircraft, respectively, were completed. The data reflect a learningrate of 90%.[LO 8-3][LO 8-5]Final PDF to printerChapter 8 Cost Estimation 305blo17029_ch08_267-313.indd 305 02/19/18 09:07 AMOutput Total Hours1 2508 1,45832 4,724Required1. If Soren Industries expects that the manufacturing time and learning rate will be the same as it wasin 1938, how many hours will it take to build the 16 aircraft for the Air Force Museum Foundation?Assume also that the learning that took place in the 1930s is no longer applicable, and that learningbegins anew at 250 hours for the first unit.2. What is the role of learning curves in Soren Industries’s business for contracts such as this?
Learning
F Sixes, pre–World War II aircraft. They will be built completely from scratch to the exact specifications used for the originals. As further authentication, the aircraft will be made using the technology
and manufacturing processes available when the originals were built. Each of the 16 airplanes will be
flown to Air Force and aviation museums throughout the country for exhibition. Aviation enthusiasts
can also visit the production facility to see exactly how such aircraft were built in 1938.
Soren Industries wants to bid on the aircraft contract and asked for and received certain cost
information about the Four F Sixes from the Air Force. The information includes some of the old
cost data from the builders of the original aircraft. The available information is for the total accumulated time as the 1st, 8th, and 32nd aircraft, respectively, were completed. The data reflect a learning
rate of 90%.
[LO 8-3]
[LO 8-5]
Final PDF to printer
Chapter 8 Cost Estimation 305
blo17029_ch08_267-313.indd 305 02/19/18 09:07 AM
Output Total Hours
1 250
8 1,458
32 4,724
Required
1. If Soren Industries expects that the manufacturing time and learning rate will be the same as it was
in 1938, how many hours will it take to build the 16 aircraft for the Air Force Museum Foundation?
Assume also that the learning that took place in the 1930s is no longer applicable, and that learning
begins anew at 250 hours for the first unit.
2. What is the role of learning curves in Soren Industries’s business for contracts such as this?
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