Question

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

4. 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:

T_N= T₁C

Where T_N       = Time needed to produce the N^thunit

            T₁        = Time needed to produce the first unit

                        C         = Learning curve coefficient

5. 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?

Answer 1