IL-Heung Shipbuilding & Engineering Co., Ltd, was established in April 1988. The company started as as...

 

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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

Answer rating: 100% (QA)

Answer d Estimated for each organization needs to be developed individually since each industry and ... View the full answer