# Beta Corporation is in the process of completing a contract to produce 150 units for a given…

Beta Corporation is in the process of completing a contract to produce 150 units for a given customer. The contract consisted of R&D, testing and qualification, and full production. The industrial engineering department had determined that the following number of hours were required to produce certain units:

a. Plot the data points on regular graph paper with the Y-axis as hours and the X-axis as number of units produced.

b. Plot the data points on log–log paper and determine the slope of the line.

c. Compare parts a and b. What are your conclusions?

d. How much time should it take to manufacture the 150th unit?

e. How much time should it take to manufacture the 1,000th unit? Explain your answer. Is it realistic? If not, why?

f. As you are producing the 150th unit, you receive an immediate follow-on contract for another 150 units. How many manufacturing hours should you estimate for the follow-on effort (using only the learning curves)?

g. Let’s assume that industrial engineering determines that the optimum number of hours (for 100 percent efficiency) of manufacturing is forty-five. At what efficiency factor are you now performing at the completion of unit number 150? After how many units in the follow-on contract will you reach the optimum level?

h. At the end of the first follow-on contract, your team and personnel are still together and performing at a 100 percent efficiency position (of part g). You have been awarded a second follow-on contract, but the work will not begin until six months from now. Assuming that you can assemble the same team, how many man-hours/unit will you estimate for the next 150-unit follow-on?