IL-Heung Shipbuilding & Engineering Co., Ltd, was established in April 1988. The company started as as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
IL-Heung Shipbuilding & Engineering Co., Ltd, was established in April 1988. The company started as as a small company and has since established itself as a major shipyard in the ship-building industry. The company is based in Mokpo, south-west coast of South Korea. The Korean government at the time had the vision to make Korea a world leader in ship building and transform the Korean economy. IL-Heung took the opportunity to develop its competences from small fishing boats to larger vessels. Williams Shipping Ltd, based in Southampton, continually assesses and modernises their extensive fleet of vessels. As part of the modernisation, Williams Shipping needs four new bespoke tugboats to support the company operation. You have been tasked to act as an agent for Williams to select a supplier and monitor the effectiveness of the supplier and you recommended IL-Heung to Williams Shipping Ltd to monitor the progression of the contract. It took IL-Heung 125,000 labour-hours to produce the first of several tugboats (Figure 1). The second and third boats were produced by IL-Heung with a learning factor of 85%. The overall cost per hour is £40 per hour. (a) Using the above information, explain to Williams Shipping Ltd how much you expect them to pay for the fourth boat. RICHA Figure 1 Tugboat (creative common licence) 6 marks (b) What is the time required to complete the build of all fourth tugboat that Williams Shipping Ltd plans to buy? 2 marks (c) Philip Williams, managing director of Williams Shipping Ltd marine division believes that "unusual circumstances in producing the first boat imply that the time estimate of 125,000 hours is not as valid a base as the time required to produce the third boat. The third boat was completed in 100,000 hours". Justify Philip Williams statement. 2 marks (d) Using suitable examples discuss four limitations while using "learning curves". 10 marks IL-Heung Shipbuilding & Engineering Co., Ltd, was established in April 1988. The company started as as a small company and has since established itself as a major shipyard in the ship-building industry. The company is based in Mokpo, south-west coast of South Korea. The Korean government at the time had the vision to make Korea a world leader in ship building and transform the Korean economy. IL-Heung took the opportunity to develop its competences from small fishing boats to larger vessels. Williams Shipping Ltd, based in Southampton, continually assesses and modernises their extensive fleet of vessels. As part of the modernisation, Williams Shipping needs four new bespoke tugboats to support the company operation. You have been tasked to act as an agent for Williams to select a supplier and monitor the effectiveness of the supplier and you recommended IL-Heung to Williams Shipping Ltd to monitor the progression of the contract. It took IL-Heung 125,000 labour-hours to produce the first of several tugboats (Figure 1). The second and third boats were produced by IL-Heung with a learning factor of 85%. The overall cost per hour is £40 per hour. (a) Using the above information, explain to Williams Shipping Ltd how much you expect them to pay for the fourth boat. RICHA Figure 1 Tugboat (creative common licence) 6 marks (b) What is the time required to complete the build of all fourth tugboat that Williams Shipping Ltd plans to buy? 2 marks (c) Philip Williams, managing director of Williams Shipping Ltd marine division believes that "unusual circumstances in producing the first boat imply that the time estimate of 125,000 hours is not as valid a base as the time required to produce the third boat. The third boat was completed in 100,000 hours". Justify Philip Williams statement. 2 marks (d) Using suitable examples discuss four limitations while using "learning curves". 10 marks
Expert Answer:
Answer rating: 100% (QA)
Answer d Estimated for each organization needs to be developed individually since each industry and ... View the full answer
Related Book For
Posted Date:
Students also viewed these banking questions
-
Engineers observe that about 90% of graphite samples fracture within five hours when subjected to a certain stress. (a) If the time to fracture is modeled with an exponential distribution, what would...
-
Geneva Co. reports the following information for July: Sales........................................................$750,000 Variable costs.............................................225,000 Fixed...
-
Comparative statement of financial position accounts of Marcus AG are presented below. Additional data (ignoring taxes): 1. Net income for the year was ¬42,500. 2. Cash dividends declared and...
-
On a Sunday afternoon in 2005 at a busy hospital in the Pacific Northwest, computers started running slower and documents would not print. By Monday morning, the situation became worse as more...
-
M. M. Sprout, a catalog mail order retailer, has one customer service representative (CSR) to take orders at an 800 telephone number. If the CSR is busy, the next caller is put on hold. For...
-
1. Given the following relationship between two stocks, Tx and ry: rx = 3-5ry (1) Find the minimum variance portfolio (MVP) by investing stocks x and y. (10%) (2) Calculate the expected return and...
-
. Venture Inc. is sitting on $100 million in liquidity and considering investing in two different start-ups: Company A and Company B. After 3 years, Venture plans to sell their stake in both...
-
Colour Ltd.'s accounting profit for the year ended 31/12/2021 was $1,500,000. The following items of expenses have been charged in the profit and loss account in arriving at $1,500,000: Research and...
-
In June 2015, Gillian was given shares with a market value at that time of 6,000. In November 2022 she made a successful claim to the effect that these shares now had a negligible value of only 80....
-
What are some of the sources of tension between senior staff and the board in a nonprofit? How can these issues be addressed to create a true partnership between the two elements of the leadership...
-
Do you subscribe to the technocratic view or the democratic view of nonprofit boards (see Kramer, 1985)? Support your position.
-
What are some of the ways of educating board members about their roles and responsibilities? Why are both board members and executives directors sometimes ambivalent about board education and...
-
What are the most important steps a nonprofit should take to manage diversity effectively? How would you apply these strategies to women in the workplace? To ethnic and cultural groups?
-
Alvin is 5 years older than Elga. The sum of their ages is 49. What is Elga's age?
-
List four items of financial information you consider to be important to a manager of a business that has been operating for a year.
-
On January 1, 2010, Excelate acquired all the share capital of Tryon for $300,000. The equity of Tryon at January 1, 2010, was: Share capital............ $200,000 Retained earnings......... 70,000...
-
Identifying the entities to be included in the reporting entity is a critical part of public sector financial reporting. Required (a) Explain some inherent challenges faced in defining the reporting...
-
What is the effect when a company that uses FIFO inventory costing acquires an affiliate that uses average costing for the same type of inventory?
-
Objections to monopolies do not include which of the following? a. They reduce output below the efficient level of output that would be produced in perfect competition. b. They reduce the price below...
-
If regulators set a price according to marginal cost pricing, the firm will a. earn positive economic profits. b. make zero economic profits. c. suffer an economic loss. d. earn the same level of...
-
What is the objective of antitrust policy?
Study smarter with the SolutionInn App