Exam 22: Vehicle Routing and Scheduling

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The fundamental premise underlying learning curve analysis is that

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The first unit of a product took 832 hours to build, and the learning curve is 75%. How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

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A learning curve

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The first unit of a product took 50 hours to build, and the learning curve is 85%. How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

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The first product took 10 hours to build and the learning curve is estimated to be 90%. How long with it take to make the fourth unit?

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A contractor builds large ships for the Department of Defense. A recent contract called for 12 amphibious landing platforms. It was originally estimated that the first of these would cost $1 billion and that 80 percent learning would be appropriate. In fact, the first ship cost $1.6 billion and the second $1.12 billion. What is the revised learning rate? What will be the total cost of the twelve ships? Is it higher or lower than the original estimates? If the defense department cuts the contract from 12 ships to 9, what happens to the average cost per ship?

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Companies pursuing a learning curve strategy must increase

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The learning curve in the steel industry and the learning curve in heart surgery have both been estimated at 79 percent.

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When comparing a 70% learning curve versus a 90% learning curve, which one results in a more rapid reduction in labor requirements? Why?

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The first unit of a product took 832 hours to build, and the learning curve is 75%. How long will it take to make the 30th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

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In the Learning-Curve Coefficients table for 70 percent learning, the sixth unit has a unit time value of 0.398. Verify that table entry by use of the logarithmic formula. Use five decimals in your work.

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Why do different organizations have different learning curves?

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Your firm has expertise with a special type of hand-finished furniture. The learning rate is known to be 82%. If the first piece of furniture took 6 hours, use the logarithmic approach to determine how long it will take to do the third unit.

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Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated.

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Learning curves (or experience curves) were first applied to industry by __________ who was studying __________.

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The logarithmic approach to learning curve calculations allows us to determine the hours required for any unit.

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The learning curve for a product is 90 percent. The first unit took 10 hours to complete. The manufacturer wants to determine how many hours the fourth unit will take by using the logarithmic method. The coefficient b for that calculation is approximately

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A company negotiates a price for two aircraft that includes a reduction in labor on the second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100 hours. If the improvement rate changes to 20%, how will the total time to complete both aircraft change?

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Learning curves have a variety of purposes, which can be placed into these broad categories:

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You are a cost accountant for a firm that specializes in "small" (under 10 billion dollars) defense contracts for specialty electronics products, such as fully portable, miniaturized CD-ROM imaging stations and global positioning transmitters/transponders. Your company is well respected in this field. One project up for competitive bids is a Field Service, Hands-Free, Individual Multi-Protocol Secure Communicator (a battlefield version of a cellular telephone, but built into each soldier's helmet, and containing necessary encryption technology). The Department of Defense wants 8 of these experimental devices to test their practicality. You have reviewed the contract specifications, and estimated that the first FSHFIMPSC should require 2350 hours, and that the product is subject to a 75% learning rate. All costs of the project (machine purchase, machine time, direct and indirect labor, and materials) have been bundled (allocated) into an hourly labor rate of $172 per hour. Determine the total project cost using the provided data.

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