PMP 2homework
lt4408
PMP2.docx
Learning Curves
Shown below is manually calculated data for a 75% learning curve used in a manufacturing company.
|
(1) Cumulative Units |
(2) Cost for this Unit ($) |
(3) Cumulative Cost ($) |
(4) Cost for this Unit ($) from on-line calculator |
(5) Cumulative Average Cost ($) from on-line calculator |
(6) Cumulative Cost ($) from on-line calculator |
|
1 |
616 |
616 |
|
|
|
|
2 |
462 |
1,078 |
|
|
|
|
40 |
134 |
8,467 |
|
|
|
|
100 |
92 |
14,932 |
|
|
|
|
200 |
69 |
22,751 |
|
|
|
|
300 |
58 |
29,043 |
|
|
|
|
400 |
52 |
34,513 |
|
|
|
|
500 |
47 |
39,442 |
|
|
|
|
600 |
44 |
43,980 |
|
|
|
|
700 |
41 |
48,217 |
|
|
|
|
800 |
39 |
52,212 |
|
|
|
Fill in the columns (4), (5), and (6) using the on-line calculator (as shown in the class) using the Crawford Learning Curve Model. Observe and compare the costs shown in columns (2) and (3) with your calculated costs in columns (4) and (6) using the Crawford Model.
What is the average cost per unit for the first 100 units? Show both - from the manual table and your on-line calculator.
How much did it cost to produce the 100th unit?
From the learning curve theory, if production doubles to 200 units, the 200th unit should require only 75% of the 100th unit. Is that correct? Verify from the values shown in the manual table.
If you have already produced 100 units and you have a customer who wants to purchase another 100 units, what is the average cost per unit for that customer for the next 100 units (i.e. units 101-200)?
Sometimes, companies prefer to use hours rather than dollars. Assume in the table that the columns (2) and (3) represent hours rather than dollars. If the company has 1,500 hours of manufacturing available per month to go from 101 to 200 units of production, how many months will be required?
As they say in management: The steeper the curve, the easier the learning. Elaborate on this.
