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    Project Management Homework Learning Curves

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    diamondfield
    The document provides two examples of learning curve analyses: 1) Boeing's costs for its first 8 business jets showed an average 80% learning rate. Estimated costs for the 1,000th jet were $10.82 million based on the first unit costing $100 million. 2) Johnson Industries' costs to produce 4 receivers showed a 90% learning rate for labor hours and an 84.99% learning rate for parts costs. Estimated labor hours for an additional dozen units were 11,556 hours at a cost of $330,876 in parts.

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    Project Management Homework Learning Curves

    Uploaded by

    diamondfield
    2K views1 page
    The document provides two examples of learning curve analyses: 1) Boeing's costs for its first 8 business jets showed an average 80% learning rate. Estimated costs for the 1,000th jet were $10.82 million based on the first unit costing $100 million. 2) Johnson Industries' costs to produce 4 receivers showed a 90% learning rate for labor hours and an 84.99% learning rate for parts costs. Estimated labor hours for an additional dozen units were 11,556 hours at a cost of $330,876 in parts.

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    The document provides two examples of learning curve analyses: 1) Boeing's costs for its first 8 business jets showed an average 80% learning rate. Estimated costs for the 1,000th jet were $10.82 million based on the first unit costing $100 million. 2) Johnson Industries' costs to produce 4 receivers showed a 90% learning rate for labor hours and an 84.99% learning rate for parts costs. Estimated labor hours for an additional dozen units were 11,556 hours at a cost of $330,876 in parts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    2K views1 page

    Project Management Homework Learning Curves

    Uploaded by

    diamondfield
    The document provides two examples of learning curve analyses: 1) Boeing's costs for its first 8 business jets showed an average 80% learning rate. Estimated costs for the 1,000th jet were $10.82 million based on the first unit costing $100 million. 2) Johnson Industries' costs to produce 4 receivers showed a 90% learning rate for labor hours and an 84.99% learning rate for parts costs. Estimated labor hours for an additional dozen units were 11,556 hours at a cost of $330,876 in parts.

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    of 1

    Learning Curve Examples. 1.

    Boeing Aircraft collected the following cost data on the first 8 units of its new business jet. Cost ($ millions) $100 83 73 62 Unit Number 5 6 7 8 Cost ($ millions) 60 57 53 51

    Unit Number 1 2 3 4

    a. Estimate the learning curve for the new business jet. Find the 4 learning rates and add them up and average them. 3.180/4 = .795 or 80% b. Estimate the average cost for the first 1,000 units of the jet. T sub 1000 = 100M X (158.7)2nd page 80% = $15,870M c. Estimate the cost to produce the 1,000th jet. T sub 1000 = 100M X (.1082) first page 80% = $10.82 M

    2.

    Johnson Industries received a contract to develop and produce four highintensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 worth of purchased and manufactured parts; the second took 1,500 labor hours and $37, 050 in parts; the third took 1,450 labor hours and $31,000 in parts; and the fourth took 1,275 labor hours and $31,492 in parts. Learning curve Labor / T sub 1 = 2000 learning curve cost $/ tsub1 = $39000 graph 1-------4-5--------16 T2/t1 = 1500/2000 = . 75 learning rate 80% for labor t4/t2= 1275/1500=.85 avg them =

    .95 .8499 = .8999 or .9 learning rate for cost. T sub 16 = 2000X 8.920 = 17,840 hours T 4 = 2000 X 3.142 = 6,284 subtracted from 17840 = 11556 labor hours to do the last dozen Cost = T16 39000 X 12.04 = $ 469,560 T4 39000 X 3.556 =138684 subtracted from 469560 = 330,876 Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, what should Johnson estimate time and parts costs to be for the dozen units. (hint: there are 2 learning curves-one for labor and one for parts.)

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