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5) Problem 4 identified how long it should take to complete the fifth oil drilling platform that Natural Resources plans to purchase. How long should all five oil- drilling rigs take to complete? 2 PROJECT MANAGEMENT Solution: We can look at the total time column in the table associated with a learning rate of 80%. The multiplier is listed as 3.738. Using this value, the total time necessary to complete the five rigs is calculated as: T5 - (100,000) (3.738) = 373,800 hours to complete all five oil-drilling rigs 6) Suppose that you are the assigning costs to a major project to be undertaken by your firm, Dyno Soft Applications, this year. One particular coding process involves many labor hours, but highly redundant work. You anticipate a total of 200,000 labor hours to complete the first iteration of the coding and a learning curve rate of 70%. You are attempting to estimate the cost of the twentieth iteration of this coding sequence. Based on the above information and at a $60 per hour labor rate, what would you expect to budget as the cost of the twentieth iteration? The fortieth iteration? Solution: T20 T.C (200,000) (214) 42,800 hours T1C (200,000) (150) 30,000 hours The costs for the 20th and 13" iterations are found as: 20" iteration: (42,800 hours) ($60 per hour) = $2,568,000 40 iteration: (30,000 hours) ($60 per hour) = $1,800,000 5a. As Q5, what is the total time needed for the first 10 units? 5b. As Q5, what is the total time needed for the 6th to 10th units ? 6a. As Q6, the budget if learning curve rate is now 85%