Scenario During your analysis of the labor hours proposed to produce 50 units of the OMP-2000, you find that O'Shea Enterprises has experienced an improvement curve rate of 80% in assembly operations over two years of continuous production. A total of 550 units have been produced. The last complete lot averaged 90 assembly labor-hours per unit. However, O'Shea Enterprises did not use improvement curve theory to estimate the assembly labor-hours required to produce the 50 units of the proposed contract. Instead, the proposal describes O'Shea's efforts in automation. As part of a new investment program, O'Shea will automate OMP-2000 assembly. Using the labor standards developed for the new equipment and projected production inefficiencies, O'Shea has estimated 5,500 labor hours for the proposed production. The proposal also states that labor-hour requirements per unit are expected to remain relatively constant for future production of the OMP-2000. 2. What additional information would be useful in your analysis?

Answer rating: 100% (QA)

Heres some additional information that would be useful in your analysis 1 Historical Data Breakdown Lot Sizes Understanding the breakdown of the 550 u... View the full answer