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PM Presentation

1. The document is a group presentation that discusses learning curves and calculating costs and production times for different batch sizes. 2. It analyzes the costs and production times for an initial special order of 10 units and a follow-up order of 10 more units. 3. For a mass production run of 140 additional units after the first 20 units for special orders, the total production time is calculated to be 495.36 hours.

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Jeremiah Ncube
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32 views12 pages

PM Presentation

1. The document is a group presentation that discusses learning curves and calculating costs and production times for different batch sizes. 2. It analyzes the costs and production times for an initial special order of 10 units and a follow-up order of 10 more units. 3. For a mass production run of 140 additional units after the first 20 units for special orders, the total production time is calculated to be 495.36 hours.

Uploaded by

Jeremiah Ncube
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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GROUP PRESENTATION

QUESTION 10- LEARNING CURVES


GROUP MEMBERS
1. GOROMBE BION C20141989X
2. KATSANDE KEITH P. C20141668F
3. NYAUNZVI WINSTON R. C20142616P
4. SIMOYI TAKUNDA D. C20141558F
5. MUTAMBUDZI ABIGAIL C20142300V
6. DZIKIRA MITCHELL T. C20142016R
7. MAUNGWA KUDZAI C20141335N
8. DONONO PANASHE M. C20143103H
9. ZIMONDI GIFT C20142105V
10. SIBANDA TINEVIMBONASHE C18134491G
PERFOMANCE MANAGEMENT
ACCOUNTING
PART A

Note: If there is no guarantee of a follow-up order, the setup costs must be recovered on the
initial order
PART B
FOLLOWING ORDER
UNIT TOTAL CUMULATIVE TOTAL AVERAGE HOURS
OUTPUT TIME HOURS

1 1 100 100 100

1 2 (0.8X100)=80 (80X2)=160 (160-100)=60


CONTINUED

Following order
If production increases to 20 machines (2 batches) then the cumulative
average time per batch is 80.00 hours

i.e. cumulative time for 20 machines (2 batches) = 160 hours


Therefore, the time taken for the second batch of ten machines = 160-100 =
60 hours.
CONTINUED
• Costs are therefore:

Note: the set up costs have been recovered on the initial order and can therefore be ignored.
PART C

for both orders together total costs are

Note: This is the mean of the two previous prices.


PART D
from (b)

UNIT TOTAL OUTPUT CUMULATIVE TOTAL HOURS AVERAGE TIME


TIME
1 2 80 160 60
2 4 (0.8X80)=64 (4X64)=256 (256-60)=196
4 8 (0.8X64)=51.2 (8X51.2)=409.6 (409.6-196)=213.6

8 16 (0.8X51.2)=40.96 (16X40.96)=655.36 (655.36213.6)=441.76


CONTINUED
(d) Mass production
Total production = 20 machines for the special order + 140 machines for mass production = 160 machines or 16
batches.
Average time/batch for first 2 batches (i.e. first 20 MACHINES) = 60 hours
Total time for first 2 batches = 160 hours (as before).
Cumulative time per batch for first 16 batches (i.e. first 160 machines) = 40.96 hours.
Total time for first 16 batches = 655.36 hours.
Hence total time for batches 3 to 16 (i.e. the 140 mass-produced units) = (655.36 -160) hours = 495.36 hours.
CONTINUED
NOW-COST OF 140 MACHINES
THE END

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