Jake's Copy Center Hires a New Employee

question 60

Essay

Jake's Copy Center hires a new employee. Jake knows he has to be patient with the employee until the employee gains enough experience to meet production standards. Jake is unsure of the learning curve in his operation, but he knows the first job by a new employee averages 50 minutes and the second job averages 40 minutes. Assume all jobs to be equal in size.
Required:
a.What is the learning-curve percentage, assuming the cumulative average-time method?
b.What is the time for a new employee to do 32 jobs with this learning curve using the cumulative average-time method? You may use an index of ?0.1520.

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Definitions:

Handling And Storage

Activities involved in moving and placing products or materials in a warehouse or storage area.

Labour Hour

A measure of work effort, typically used in costing to allocate overhead based on the number of hours worked.

Competitive Bidding

The process where various suppliers or contractors submit their bids to win a contract, often used to ensure fairness and value in public and private procurement.

Sealed Bid

A method of bidding where all bids are submitted sealed and opened at an appointed time, ensuring that no bidder knows the amount of the other bids during the bidding process.