a) The effect of learning in each system eventually flattens out over time. At that point in the life of a system, learning still exists, though its effect continues to diminish. Beyond that point is it impossible to significantly reduce the time to produce a unit? What would it take to do that? (4) b) The learning curve phenomenon has been shown in practice to be widely applicable. Once a company has established a learning rate for a process, they can use it to predict future system performance. Would there be any reason to re-evaluate the process learning rate once it has been initially established? (3) c) As a manager, which learning percentage would you prefer (other things being equal), 110 percent or 60 percent? Explain. (3) 3.2 A high-tech company has produced a total of 40 high-power laser systems that could be used to destroy any approaching enemy missiles or aircraft. The 15 units that have been produced, were funded in part as private research within the research and development, but the bulk of the funding came from a contract with the SA Department of Defence (DoF). Testing of the laser units has shown that they are effective defence weapons, and through redesign to add portability and easier field maintenance, the units could be truck-mounted. DoF has asked the high-tech company to submit a bit for 400 units. The 40 units that the high tech company has built so far cost the following amounts and are listed in the order in which they were produced. Unit number 1 2 3 11 4 10.3 5 10.2 6 9.9 7 9.6 8 9.5 9 9.3 10 9.2 11 9 12 8.9 13 8.7 14 8.6 15 8.5 16 8.6 17 8.4 18 8.4 19 8.3 20 8.3 a) Based on past experience, what is the learning rate? (5) b) What bid should the high tech company submit for a total of 400 units, assuming that learning continues? (6) c) What is the expected cost for the last unit under the learning rate you estimated?