Question: Refer to Example E2 (Page 780). If the learning factor improved to 70%, How would the cost change? It would drop to $_________________________ What would

  1. Refer to Example E2 (Page 780). If the learning factor improved to 70%,
    1. How would the cost change?
      1. It would drop to $_________________________
    2. What would be the total cost to make all four boats? Show calculation.
      1. $___________________________________________
  2. (5 points) Briefly explain the concept of the doubling effect in learning curves.
  3. (15 points) Providence Assessment Center screens and trains employees for a computer assembly firm in Boston. The progress of all trainees is tracked, and those not showing the proper progress are moved to less demanding programs. By the tenth repetition, trainees must be able to complete the assembly task in 1 hour or less. Susan has just spent 5 hours on the fourth unit and 4 hours completing her eighth unit, while another trainee, Julie took 4 hours on the third and 3 hours on the sixth unit. Should you encourage either or both of the trainees to continue? Why? Show calculation. [Hint: For each trainee, 1) Determine the learning rate (%) use doubling concept. 2) Calculate time for the 1st unit (T1) use table, 3) Calculate time for the 10th Unit (T10) use table]
  4. (5 points) Identify the concerns of suppliers on a JIT environment when moving to supplier partnerships?
  5. (5 points) Does lean production work in the service sector? Provide an example.

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