ENGINEERING ECONOMIC ENHANCED EBOOK
ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
Question
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Chapter 2, Problem 61P
To determine

(a)

The time required to build the 5th house.

Expert Solution
Check Mark

Answer to Problem 61P

The time required to the 5th House is 2,833.65.

Explanation of Solution

Given information:

  • Time required to produce 1st unit = 3500 manual labor hours
  • Learning curve = 92%
  • Learning Curve: The learning curve captures the relationship between the task performance and task repetition

For estimating the time for repetitive tasks is given by following formula:

TN=Tinitial×Nb

Where:

TN− time required for Nth production

Tinitial − time required for 1st production

N − number of completed units

b − learning curve exponent

The learning curve exponent is calculated as

b=log(LC)log2

Where: LC − Learning Curve.

Calculation:

We can now calculate the value of b (using the formula 2)

Using the formula (2):

b=log(LC)log2b=log(0.92)log2b=0.1203

Using the formula (1):

  • Calculating Time in Manual labor hours for constructing the 5th house

TN=Tinitial×NbT5=3500×50.1203T5=3500×0.8239T5=2,883.65.

Conclusion:

The time required to the 5th House is 2,833.65.

To determine

(b)

The time required to build the 10th house.

Expert Solution
Check Mark

Answer to Problem 61P

The time required to build the 10th house is 2,653.

Explanation of Solution

Given information:

  • Time required to produce 1st unit = 3500 manual labor hours
  • Learning curve = 92%
  • Learning Curve: The learning curve captures the relationship between the task performance and task repetition

For estimating the time for repetitive tasks is given by following formula:

TN=Tinitial×Nb

Where:

TN− time required for Nth production

Tinitial − time required for 1st production

N − number of completed units

b − learning curve exponent

The learning curve exponent is calculated as

b=log(LC)log2

Where: LC − Learning Curve.

Calculation:

We can now calculate the value of b (using the formula 2)

Using the formula (2):

b=log(LC)log2b=log(0.92)log2b=0.1203

Using the formula (1):

  • Calculating Time in Person-hours for constructing the 10th house

TN=Tinitial×NbT5=3500×100.1203T5=3500×0.7580T5=2,653.

Conclusion:

The time required to build the 10th house is 2,653.

To determine

(c)

The time required to build the 18th house.

Expert Solution
Check Mark

Answer to Problem 61P

The time required to the construct the 18th house is 2472.05.

Explanation of Solution

Given information:

  • Time required to produce 1st unit = 3500 manual labor hours
  • Learning curve = 92%
  • Learning Curve: The learning curve captures the relationship between the task performance and task repetition

For estimating the time for repetitive tasks is given by following formula:

TN=Tinitial×Nb

Where:

TN− time required for Nth production

Tinitial − time required for 1st production

N − number of completed units

b − learning curve exponent

The learning curve exponent is calculated as

b=log(LC)log2

Where: LC − Learning Curve.

Calculation:

We can now calculate the value of b (using the formula 2)

Using the formula (2):

b=log(LC)log2b=log(0.92)log2b=0.1203

Using the formula (1):

  • Calculating Time in Person-hours for constructing the 18th house

TN=Tinitial×NbT5=3500×180.1203T5=3500×0.7063T5=2,472.05.

Conclusion:

The time required to the construct the 18th house is 2472.05.

To determine

(d)

The time required to build the 18th house with 70% learning curve.

Expert Solution
Check Mark

Answer to Problem 61P

The time required to the 18th House with 70% learning curve is 790.65.

Explanation of Solution

Given information:

  • Time required to produce 1st unit = 3500 manual labor hours.
  • Learning curve = 70%
  • Learning Curve: The learning curve captures the relationship between the task performance and task repetition.

For estimating the time for repetitive tasks is given by following formula:

TN=Tinitial×Nb

where:

TN− time required for Nth production.

Tinitial − time required for 1st production.

N − number of completed units.

b − learning curve exponent.

The learning curve exponent is calculated as

b=log(LC)log2

where: LC − Learning Curve.

Calculation:

  • Learning Curve - 70%
  • We can now calculate the value of b (using the formula 2)

    Using the formula (2):

b=log(LC)log2b=log(0.70)log2b=0.5146

Using the formula (1):

  • Calculating Time in Manual labor hours for constructing the 18th house

TN=Tinitial×NbT5=3500×180.5146T5=3500×0.2259T5=790.65.

Conclusion:

The time required to the 18th House with 70% learning curve is 790.65.

To determine

(e)

The time required to build the 18th house with 75% learning curve.

Expert Solution
Check Mark

Answer to Problem 61P

The time required to the 18th House with 75% learning curve is1054.55.

Explanation of Solution

Given information:

  • Time required to produce 1st unit = 3500 manual labor hours
  • Learning curve = 75%
  • Learning Curve: The learning curve captures the relationship between the task performance and task repetition

For estimating the time for repetitive tasks is given by following formula:

TN=Tinitial×Nb

where:

TN− time required for Nth production

Tinitial − time required for 1st production

N − number of completed units

b − learning curve exponent

The learning curve exponent is calculated as

b=log(LC)log2

where: LC − Learning Curve.

Calculation:

  • Learning Curve - 75%
  • We can now calculate the value of b (using the formula 2)

    Using the formula (2):

b=log(LC)log2b=log(0.75)log2b=0.4150

Using the formula (1):

  • Calculating Time in Manual labor hours for constructing the 18th house

TN=Tinitial×NbT5=3500×180.4150T5=3500×0.3013T5=1054.55.

Conclusion:

The time required to the 18th House with 75% learning curve is1054.55.

To determine

(f)

The time required to build the 18th house with 80% learning curve.

Expert Solution
Check Mark

Answer to Problem 61P

The time required to the 18th House with 80% learning curve is 1380.05.

Explanation of Solution

Given information:

  • Time required to produce 1st unit = 3500 manual labor hours
  • Learning curve = 80%
  • Learning Curve: The learning curve captures the relationship between the task performance and task repetition

For estimating the time for repetitive tasks is given by following formula:

TN=Tinitial×Nb

where:

TN− time required for Nth production

Tinitial − time required for 1st production

N − number of completed units

b − learning curve exponent

The learning curve exponent is calculated as

b=log(LC)log2

where: LC − Learning Curve.

Calculation:

  • Learning Curve - 80%
  • We can now calculate the value of b (using the formula 2)

    Using the formula (2):

b=log(LC)log2b=log(0.80)log2b=0.3219

Using the formula (1):

  • Calculating Time in Manual labor hours for constructing the 18th house

TN=Tinitial×NbT5=3500×180.3219T5=3500×0.3943T5=1380.05.

Conclusion:

The time required to the 18th House with 80% learning curve is 1380.05.

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