TM 362- Leading Project Teams Assignment 2 (15 points) Learning Curve & Project
ID: 351522 • Letter: T
Question
TM 362- Leading Project Teams Assignment 2 (15 points) Learning Curve & Project Network 1. Learning Curve (6 pts) Nello Corporation is a leading Manufacturer communication Towers (self-supporting towers, guyed tower, and monopoles) has a contract to produce ten towers to support communication worldwide. Suppose Nello Corps has estimated that the R&D; costs will be $2,000,000. Material costs are expected to be $10,000,000. They have estimated the design and production of the first tower will require 80,000 labor hours and a 75 percent improvement curve is expected. Skilled labor cost is S100 per hour. Desired profit for all projects is 30 percent of total costs. A. How many labor hours should the tenth tower require? (1 pt.) labor hours x ( -- )-(X labor hours for the 10th unit Hints: use Table A5.1 (page 156) Learning Curves Unit Values B. How many labor hours for the whole project of ten tower? (1 pt.) labor hours x ( -) -() total for 10 units Hints: use Table A5.2 (page 156) Learning Curves Unit Values C. What total price would Nello Corps ask for the project (with 75% learning curve)? (2 pts.) Labor (X, hrs x S100)- S R&D; Material Total Project CostXx 1.30 profit (including 30% profit)Explanation / Answer
PLEASE FIND BELOW ANSWER TO FIRST QUESTION :
We will use Learning curve table to answer the questions .
Time required for first tower = 80,000 hours
Learning curve = 75 percent
Using learning curve table , number of labour hours tenth tower requires = 30764.69 hours
Material cost = $10,000,000
R&D cost = $2,000,000
Therefore , total cost = $44,708,436 + $10,000,000 + $2,000,000 = $56708436
Considering 30% mark up on total cost, price should be asked for by Nello Corps
= $56708436 x 1.30
NELLO CORP SHOULD QUOTE FOR A PRICE = $737209668
i)As per learning curve table, total hours for 15 units for 75% learning curve = 585523.69
Therefore additional labour hours for additional 5 units beyond 10 units
= Total time for 15 units – Total time for 10 units
= 138439.33 hours
Therefore , additional labour cost ( @ $100 / hour ) = $ 138439.33 x 100 = $13843933
ii) Material cost for additional 5 units ( basis $10,000,000 for 10 units ) = $5000000
Total additional cost = Additional labour cost + Additional material cost = $13843933 + $5000000 = $18843933
Additional price ( basis 30 % mark up ) = $18843933 x 1.3 = $24497113
PRICE FOR ADDITIONAL 5 TOWERS = $24497113
NELLO CORP SHOULD QUOTE FOR A PRICE = $737209668
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.