Learning Curve A

# Learning Curve A - labor hours provided. 2. Calculate the...

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UNDERSTANDING LEARNING CURVES Jenny Wilson is a buyer at Flextron, a manufacturer of large industrial pumps. She has a requirement for a customized subassembly that a preferred supplier, Vistral, is building for the first time. She is preparing for negotiation with Vistral, where a key issue will be the price of the subassembly. Given the unique nature of this subassembly, Jenny expects to incorporate into the contract price reduction targets based on learning curve estimates. While Jenny does not have specific data for Vistral, she has accumulated data for a subassembly that was similar in design and manufacturing complexity. Total Labor Average Labor Learning Units Hours per Unit Rate 1 6 ——— ****** 2 10.8 ——— ——— 4 19.2 ——— ——— 8 35.2 ——— ——— 16 64 ——— ——— 32 115.2 ——— ——— 64 211.2 ——— ——— 128 384 ——— ——— Overall average improvement rate: ——— Applicable learning curve: ——— Assignment Questions 1. Given the above data, calculate the average labor per unit given the cumulative total

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Unformatted text preview: labor hours provided. 2. Calculate the appropriate learning rate and the overall average improvement rate for this data set. 3. Plot the data on an X-Y chart. Label the X axis Units Produced and the Y axis Average Labor per Unit. 4. Are gains from learning realized early in production or at a later point? 5. A learning curve applies to improvements in the direct labor portion of a process. How does the learning curve differ from the experience curve? 6. What are some factors that might prohibit a supplier from realizing learning curve gains? 7. This case describes Vistral as a preferred supplier. What is a preferred supplier? What are the advantages of maintaining a preferred supplier list? 8. What type of supply chain relationship supports a buyer and seller working together to identify possible learning curve benefits?...
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## This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.

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Learning Curve A - labor hours provided. 2. Calculate the...

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