Question

A company that manufactures turbines of different sizes has been ordered to manufacture 30 large turbines. According to this order, within the next 5 months, the company should produce 2, 3, 5, 8 and 12 turbines respectively. 30,000 man hours of direct labor were used for the production of the first turbine. Based on past experiences from similar productions, the learning rate was determined to be 90%. Accordingly, it is estimated that 27,000 man-hours of direct labour is required for the manufacture of the second turbine. A worker works an average of 150 hours a month. Accordingly, during the next 5 months, estimate the number of workers to be employed for each month in order to grow the order.The distribution of order quantities by month is given in Table 1.

Months	The amount of turbine that needs to be produced every month	Cumulative Production Amount (N)
1	2	2
2	3	5
3	5	10
4	8	18
5	12	30

Answer 1

This table is made for learning rate of 90%

n is the no. Of commutative product or units made for example in month 1 commutative units made are 2 so factor would be 0.9500, for example no. Of commutative units made till month 2 is 5 so factor would be 0.86784

We willl calculate total time to make 2 units then to make 5 units and then 10, 18, 30

After that in order to find out time taken to make unit 3 which is produced in second month, we will subtract time taken to make 5 units with time taken to make 2 units and continue the same process further

See the solution