Question

# For the next two problems (5. and 6.) you may refer to the below chart of...

For the next two problems (5. and 6.) you may refer to the below chart of learning curve coefficients and multipliers or you can calculate the coefficients using the formulas discussed in the lectures. You will arrive at the same answer regardless of which path you choose.

 70% 75% 80% 85% Unit Unit Time Total Time Unit Time Total Time Unit Time Total Time Unit Time Total Time 5 .437 3.195 .513 3.459 .596 3.738 .686 4.031 10 .306 4.932 .385 5.589 .477 6.315 .583 7.116 15 .248 6.274 .325 7.319 .418 8.511 530 9.861 20 .214 7.407 .288 8.828 .381 10.485 .495 12.402 25 .191 8.404 .263 10.191 .355 12.309 .470 14.801 30 .174 9.305 .244 11.446 .335 14.020 .450 17.091 35 .160 10.133 .229 12.618 .318 15.643 .434 19.294 40 .150 10.902 .216 13.723 .305 17.193 .421 21.425
1. It took your company 100,000 labor-hours to produce the first of several oil drilling rigs for offshore exploration.  Your company has agreed to purchase the fifth oil drilling rig from their manufacturing yard. Assume that your company experiences a learning rate of 75%.  At a labor rate of \$45 per hour, what should you, as the purchasing agent expect to pay for the fifth unit?  Remember, the simplified formula for calculating learning rate time is given as:

TN= T1C

Where TN       = Time needed to produce the Nthunit

T1        = Time needed to produce the first unit

C         = Learning curve coefficient

1. Problem 5 identified how long it should take to complete the fifth oil drilling platform that your company plans to purchase.  How long (in hours) should all five offshore oil-drilling rigs take to complete?