Concept explainers
To prepare: A list of questions which are needed to be answered to analyze the situation.
Introduction:
An automobile manufacturer is making a product recall due to a defect in the steering mechanism, which would make the automobile to go out of control. The company pays a fair amount to its dealers. After discussion, the engineers came to a conclusion to fix the defect for $88 per repair at an hourly rate of $22 and their learning rate is 90%.
The company received complaints from its dealers related to the rate fixed by the engineers. The dealers claimed that their employees suggested a rate of $110 per repair. Each of three mechanics completed two repairs. Average time taken for repairing the first unit was 9.6 hours and average time for second unit was 7.2 hours.
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Operations Management
- HOW ARE LEARNING CURVES MODELED?arrow_forwardOnly typed explanation otherwise leave it United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 3,750 hours and cost $19,500 in materials and equipment usage. Labor cost is charged at $25 per hour. The company expects “learning” to occur relative to labor and also the pricing of parts from suppliers. The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls. a. What will the last unit cost to build? (Round your answer to the nearest dollar amount.) b. What will be the average time for the 20 missile guidance controls? (Round your answer to the nearest whole number.) c. What will the average cost be for guidance control for the 20 in the contract? (Round your answer to the nearest dollar amount.)arrow_forwardList and briefly describe some of the main applications of learning curves.arrow_forward
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- Please don't provide handwriting solutionarrow_forwardAre Learning Objectives important? Why or Why not?arrow_forwardMaxera 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?arrow_forward
- “Users of learning curves sometimes fail to include carryover effects; previous experience with similar activities can reduce initial activity times, although it should be noted that the learning rate remains the same.” What is the implication of this item from the list of cautions and criticisms?arrow_forwardA contractor intends to bid on a job installing 30 airport security systems. Because this will be a new line of work for the contractor, he believes there will be a learning effect for the job. After reviewing time records from a similar type of activity, the contractor is convinced that an 85 percent curve is appropriate. He estimates that the first job will take his crew eight days to install. Use the following table for calculation. Learning curve coefficients 70% 75% 80% 85% 90% UnitNumber UnitTime TotalTime UnitTime TotalTime UnitTime TotalTime UnitTime TotalTime UnitTime TotalTime 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 .700 1.700 .750 1.750 .800 1.800 .850 1.850 .900 1.900 3 .568 2.268 .634 2.384 .702 2.502 .773 2.623 .846 2.746 4 .490 2.758 .562 2.946 .640 3.142 .723 3.345 .810 3.556 5 .437 3.195 .513 3.459 .596 3.738 .686 4.031 .783 4.339 6 .398 3.593 .475 3.934 .562 4.299 .657 4.688 .762 5.101 7 .367 3.960 .446 4.380 .534 4.834…arrow_forwardYou are asked to do a learning curve analysis as part of your internship project, but you discover that the data is pretty slim. Unfortunately you don't have time to do more field work and you have to come up with the best estimate based on the available data. Here's what you know: It took 98.71 minutes to complete the seventh unit and only 89.35 minutes to complete the twelfth unit. What is your best estimate of the Learning Rate for this process?arrow_forward
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