You are a commercial shipyard analyst, working for the Navy, examining a relatively new program. A recent program review has provided the following values:

 

There's no question that actual costs have exceeded planned costs, however, your production supervisor is interested in whether this review provides evidence of a fundamental change to the anticipated production learning that was supposed to take place for this system. Answer the questions below considering costs from the government's desired position. 

a) (5 points) Determine whether or not there has been a change to the learning anticipated for this program. Support your claim with specific calculations based on the data above.

b) (5 points) What would you anticipate the actual cost to be for a proposed fifth lot of 40 units? 

Transcribed Image Text:

Lot 1 2 3 4 Units in Lot 2 12 17 32 F Expected Lot Cost 512 2350 3179 5036 Actual Lot Cost 562 2672 3691 5363 Lot 1 2 3 4 Units in Lot 2 12 17 32 F Expected Lot Cost 512 2350 3179 5036 Actual Lot Cost 562 2672 3691 5363

Answer rating: 100% (QA)

To determine whether there has been a change in the anticipated production learning for this program we need to analyze the cost behavior and assess w... View the full answer