OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 6, Problem 7CQ
Summary Introduction
To determine: The cheaper process after 20 units.
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Consider two processes, A and B, with an initial cost of c(1) = 20. Process A has alearning rate of LR = 0.95 and process B has a learning rate of LR = 0.8. After 20 units:a. process A is cheaper.b. process B is cheaper.c. the two processes will have the same cost.d. cannot be determined from the given information
Consider the trajectory showing the percentage of customer orders in a restaurant thatwere handled correctly. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growth
Recall from the lecture that the functional form for a learning curve (LC) is y = axb where y is time to produce the most recent unit and x is the cumulative production. Here, the coefficient a is the time required to produce the first unit. The exponent (b), which is negative value, represents the learning rate. Consider a production system that needs to produce its main product based on 75% learning curve. It was measured that it took 180 minutes to produce the first unit from this production system.
A. How much time would it take to produce the 20th unit? Show your work.
B. Suppose the 20th unit was just produced and customer placed order of 10 more units. How much time would it take to produce those 10 more units? Use definite integral method with adjusted range. Show your work.
C. What is the production rate for producing 10 units in the above question (#1.B) in the dimension of [parts/hour]? Show your work.
Chapter 6 Solutions
OPERATION MANAGEMENT
Ch. 6 - Prob. 1CQCh. 6 - Prob. 2CQCh. 6 - Prob. 3CQCh. 6 - Prob. 4CQCh. 6 - Prob. 5CQCh. 6 - Prob. 6CQCh. 6 - Prob. 7CQCh. 6 - A learning curve following the power law has what...Ch. 6 - Prob. 9CQCh. 6 - Prob. 10CQ
Ch. 6 - Prob. 11CQCh. 6 - The learning curve coefficient LCC(10, 0.8)...Ch. 6 - Prob. 13CQCh. 6 - Instead of using the learning curve coefficient...Ch. 6 - Prob. 15CQCh. 6 - Prob. 16CQCh. 6 - Prob. 17CQCh. 6 - Prob. 18CQCh. 6 - Prob. 19CQCh. 6 - Prob. 20CQCh. 6 - Prob. 21CQCh. 6 - Prob. 22CQCh. 6 - Prob. 23CQCh. 6 - Prob. 24CQCh. 6 - Prob. 25CQCh. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 6PACh. 6 - Prob. 7PACh. 6 - Prob. 8PACh. 6 - Prob. 9PACh. 6 - Prob. 10PACh. 6 - A company has 2200 employees, on average, and it...Ch. 6 - Prob. 12PACh. 6 - Prob. 13PACh. 6 - Prob. 14PACh. 6 - In October 1908, just prior to the launch of his...Ch. 6 - Prob. 2CCh. 6 - Prob. 3C
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- Consider the trajectory showing the percentage of patient records entered correctly intoa computer by a typist. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growtharrow_forwardConsider the trajectory showing the number of photos that can be stored on a smartphone. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growtharrow_forward. The power law describes a learning process with exponential growth in performance.True or false?a. Trueb. Falsearrow_forward
- Ma1. DRILL is a company specialized in the design and fabrication of oil drilling rigs. The sales department just received two orders from two companies A and B. The production manager of DRILL decided to deliver the first 3 fabricated rigs to Company A and the next 4 fabricated rigs (rigs 4 to 7) to company B. It took DRILL company 50,000 labor-hours to manufacture the first oil drilling rig. Assume that DRILL experiences a learning rate of 90%. At a labor rate of $100 per hour, what is the labor cost that should be charged to each company (A&B)?arrow_forward. A lower learning rate corresponds to a steeper slope in a log-log graph of the learningcurve. True or false?a. Trueb. Falsearrow_forwardThe fifth unit of a 10-unit job took five hours to complete. The sixth unit has been worked on fortwo hours, but is not yet finished. Estimate the additional amount of time needed to finish the10-unit job if the work has a 75 percent learning ratearrow_forward
- Firm A typically sees a learning percentage of 85 percent in its processes. Firm B has a learning percentage of 80 percent. Which firm has the faster learning rate?arrow_forwardCumulative Average-Time Learning CurvePohlman Company makes aircraft engines. Pohlman has noticed that, in general, each new engine design is subject to an 80 percent learning rate. Assume that the first unit produced takes500 hours, and direct labor is paid an average of $30 per hour. Required:1. Set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, and cumulative total time in hours. Show results by row for total pro-duction of: one engine, two engines, four engines, eight engines, sixteen engines, and thirty-two engines. (Round hour answers to two significant digits.) 2. What is the total labor cost if Pohlman manufactures the following number of engines: one,four, or sixteen? What is the average cost per engine for the following number of engines:one, four, or sixteen? (Round your answers to the nearest dollar.)3. What if Pohlman is preparing a bid to build 16 engines? Calculate budgeted labor cost for anengine design which…arrow_forwardA manufacturer of diesel locomotives needs 50,000 hours to produce the first unit. Based on past experience with similar products, the rate of learning is 80 percent. a. Use the logarithmic model to estimate the direct labor required for the 40th diesel locomotive and the cumulative average number of labor hours per unit for the first 40 units. b. Draw a learning curve for this situation.arrow_forward
- Acme Batteries is introducing a new line of batteries for electric vehicles. The first battery cell costs $120 with a learning rate of 0.80. How much does the 100th battery cost? Create an Excel spreadsheet based on the model in part a, change the number of units and compute the cost per cell repeatedly to experimentally determine at what number of units of production the cost comes down to $8 per battery cell. Copy and paste a screenshot of the spreadsheet below. Provide an explanation. All info is included.arrow_forwardAn aircraft company has an order to refurbish the interiors of 18 jet aircraft. The work has a learning curve percentage of 80. On the basis of experience with similar jobs, the industrial engineering department estimates that the first plan will require 300 hours to refurbish. Estimate the amount of time needed to complete: The 5th plane, The first 5 planes, All 18 planes. For a, use logarithmic approach formula, for b and c, use learningcurve approach formula.arrow_forwardCompany, is beginning the production of a new product. Management believes that 500 labor hours will be required to complete the new unit. An 85 percent incremental unit-time learning curve model for direct labor hours is assumed to be valid. Assume the q = -0.2345. What is the total hours for 3 units?arrow_forward
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