You\'ve just completed a pilot run of 10 units of a major product and found the

Question

You've just completed a pilot run of 10 units of a major product and found the processing time for each unit was as follows: Use Exhibit 4A.5 and Exhibit 4A.6 UNIT NUMBER (HOURS) TIME 860 580 490 410 380 340 320 300 280 270 10 a. According to the pilot run, what would you estimate the learning rate to be? (Do not round intermediate calculations. Round your answer to the nearest whole percent. Estimated learning rate ( 0 % b. Based on (a), how much time would it take for the next 190 units, assuming no loss of learning? (Round your answer to the nearest whole number.) Time taken hours c. How much time would it take to make the 1,000th unit? (Round your answer to the nearest whole number.) Time taken hours

Explanation / Answer

A)

You can estimate the learning percentage by averaging thelearning between the first and second units, the second andfourth units, and the fourth and eighth units.In this case that would be: (580/860+ 410/580 + 300/410)/3 =70.4%.

B) .You can figure this out by using the cumulative factors in Exhibit4A.5. You want to find the time needed for the 11ththrough190thunits. That is equal to the time for all 190 units minus thetime for the first 10. So take the cumulative factor for 190 units,subtract off the cumulative factor for 10 units, and multiply theresult by the first unit’s production time.

c.)You can figure this out by using the unit factors in Exhibit 4A .6 simply take the unit factor for the 1,000thunit and multiply by thetime for the first unit

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