ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Question
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Chapter 2, Problem 63P
To determine

(a)

The time required for 5th installation.

Expert Solution
Check Mark

Answer to Problem 63P

The time required to the 5th installation is 58.7175hrs.

Explanation of Solution

Given information:

  • Time required to install 1st unit = 75 hours
  • Learning curve = 90%
  • 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(0.90)log2b=0.1520

Using the formula (1):

  • Calculating Time in the 5th installation
  • TN=Tinitial×NbT5=75×50.1520T5=75×0.7829T5=58.7175hours

Conclusion:

The time required to the 5th installation is 58.7175hrs.

To determine

(b)

The time required for 10th installation.

Expert Solution
Check Mark

Answer to Problem 63P

The time required to 10th installation is 52.85hrs.

Explanation of Solution

Given information:

  • Time required to install 1st unit = 75 hours
  • Learning curve = 90%
  • 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(0.90)log2b=0.1520

Using the formula (1):

  • Calculating Time in the 10th installation
  • TN=Tinitial×NbT10=75×100.1520T10=75×0.7046T10=52.85hours

Conclusion:

The time required to 10th installation is 52.85hrs.

To determine

(c)

The time required for 20th installation.

Expert Solution
Check Mark

Answer to Problem 63P

The time required to the 20th installation is 46.815hrs.

Explanation of Solution

Given information:

  • Time required to install 1st unit = 75 hours
  • Learning curve = 90%
  • 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(0.90)log2b=0.1520

Using the formula (1):

Calculating Time in the 20th installation

TN=Tinitial×NbT20=75×200.1520T20=75×0.6342T20=47.565hours.

Conclusion:

The time required to the 20th installation is 47.565hrs.

To determine

(d)

Research on AMCF and write down its similarities with the engineering code of ethics.

Expert Solution
Check Mark

Explanation of Solution

The AMFC stands for Association of Management Consulting firms. The members who are a part of this association are expected to adhere to the policies of integrity, collaboration, professionalism, accounting, dedication and respect. While in terms of values and practices both the code of ethics more or less remains the same, and is enforceable on the membership. However, AMFC is mostly for the Management Consulting Firms and may not be sometimes useful from the perceptive of the engineering.

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