This is a question about Learning Curves. Solve the problem using either the unit table on p. 133 and 144 or the cumulative table on p. 134 and 135 (Choose the most appropriate one between the two). Remember there are two learning curves, labor hours and parts. To calculate the learning rates of the two curves, we want to consider only logarithmic orders. That means, even though you are given the first four sets of numbers, you will consider only the first, second, and fourth (20=1, 21=2, 22=4). Learning rates should be the average of the differences between 1st and 2nd and between 2nd and 4th. The goal is to find the costs for another 12 products from 5th to 16th. Shall we use the unit table or the cumulative table? Which one is more efficient way - Do you want to calculate the costs of 12 individual products and sum them up or do you want to simply calculate the cumulative factor differences between 16th and 4th? It is important to decide an appropriate table to use depending on the question. Share your ideas freely with others.

10:44 Done Photo RRRR BASE WARTA 2010 5:06 PM Example Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 worth of purchased and manufactured parts, the second took 1,500 labor hours and $37,050 in parts; the third took 1.450 labor hours and $31,000 in parts, and the fourth took 1.275 labor hours and $31.492 in parts. Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, what should Johnson estimate time and parts costs to be for the dozen units? (Hint: There are two learning curves- one for labor and on for parts.) Q 4 1234) dx de DIL FI 76 8 10:44 Done Photo RRRR BASE WARTA 2010 5:06 PM Example Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 worth of purchased and manufactured parts, the second took 1,500 labor hours and $37,050 in parts; the third took 1.450 labor hours and $31,000 in parts, and the fourth took 1.275 labor hours and $31.492 in parts. Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, what should Johnson estimate time and parts costs to be for the dozen units? (Hint: There are two learning curves- one for labor and on for parts.) Q 4 1234) dx de DIL FI 76 8