Manceville Air has just produced the first unit of a large industrial compressor

Question

Manceville Air has just produced the first unit of a large industrial compressor that incorporated new technology in the control circuits and a new internal venting system. The first unit took 108 hours of labor to manufacture. The company knows from past experience that this labor content will decrease significantly as more units are produced. Your job as the production cost estimator is to prepare the estimate. Refer to Table below. In reviewing past production data, it appears that the company has experienced a 85% learning curve when producing similar designs.

The company is interested in estimating the total time to complete the next 7 units.

Total manufacturing time for the: First 8 units _______ hours (round your response to the nearest whole number)

Manufacturing time for the last 7 units(i.e., units 2 thru 8) = _____ hours (round your response to the nearest whole number)

@85% Unit total: .614/ Total time: 5.936

Explanation / Answer

We have to use data from standard learning curve table to arrive at required answers :

Following data are provided :

Learning rate = 85 %

Time required to first unit = 108 hours

Therefore,

Total manufacturing time for first 8 units = 641.07 hours ( 641 hours rounded to nearest whole number )

Manufacturing time for last 7 units

= total manufacturing time for first 8 units – time required for first unit

= 641 – 108

= 533 hours

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.