Week 8 – Assignment
Tracey Tanner
ACG 4010
Instructor – Donald Frey
March 1, 2015
Week 8 – Assignment Labor Intensive Assembly Method
Machine Intensive Assembly Method
Direct Materials Per Car
$20,000
$18,000
Direct Assembly Labor time for first car
1,000 labor hours
400 labor hours
Learning curve for assembly labor time per car
85% cum avg time
90% incr unit time
Direct assembly labor cost
$15 per hour
$15 per hour
Equipment related indirect manufacturing cost
$6 per direct assembly labor hr
$22.5 per direct assembly labor hr
Material handling related indirect manufacturing cost
50% of direct material cost
50% of direct material cost
Crawford model
Cumulative assembly labor time
Labor Intensive Assembly Method
Machine Intensive Assembly Method
nth unit
Learning curve log
Initial unit
Time taken for nth unit
Cumulative Total Time
Cumulative Avg. Time Per Unit
Method
Wright model
Crawford model
Direct Assembly Labor hours for first car (a)
1,000
400
1
-0.152004
400
400.00
400.00
400.00
Learning curve for assembly labor time per car
85%
90%
2
-0.152004
400
360.00
760.00
380.00
Learning curve method cumulative avg. time incremental unit time
3
-0.152004
400
338.48
1098.48
366.16
No. of units to be manufactured (X)
16
16
4
-0.152004
400
324.00
1422.48
355.62
Cumulative assembly labor time (total direct assembly labor hours)
522.01
4815.92
5
-0.152004
400
313.19
1735.68
347.14
No. of cars to be manufactured
16
16
