14. Steadman Electronics is introducing a remote pager model. The company works at continuous improvement and has
Question:
14. Steadman Electronics is introducing a remote pager model. The company works at continuous improvement and has achieved a 90 percent improvement rate on similar small electronic devices, so a 90 percent improvement rate is expected with the new pager. It is estimated that initial production of the pager will require about 28 minutes per unit.
a. How many cumulative hours of work would be expected to produce the first 1,000 units?
b. How many additional hours will be expected to produce the second 1,000 units?
c. What will be expected as the average minutes per unit when the company has produced 2,500 units?
d. What will be expected as the average minutes per unit when the company has produced the 5,000th unit?
Step by Step Answer:
Operations Management Providing Value In Goods And Services
ISBN: 9780030262074
3rd Edition
Authors: Dilworth, James B