Honda Motor Company has discovered a problem in the exhaust system of one of its automobile lines and has voluntarily agreed to make the necessary modifications to conform to government safety requirements. Standard procedure is for the firm to pay a flat fee to dealers for each modification completed. Honda is trying to establish a fair amount of compensation to pay dealers and has decided to choose a number of randomly selected mechanics and observe their performance and learning rate. Based on the results of this test, Honda decided to pay a $60 fee for each repair (3 hours × $20 per flat-rate hour). Southwest Honda, Inc., is considering whether to participate in the program. If they can average three hours or less on each repair (what Honda is willing to pay them for), it will make sense for them to agree. They performed their own test repairs to help in their decision process. Six mechanics, working Independently, have completed two modifications each. On average, the mechanics took 9 hours to do the first unit and 6.3 hours to do the second. The dealership expects to perform 300 such modifications, which works out to 50 modifications per mechanic, Including the first two units already built. Use Exhibit 6.5. On average, how many hours will it take Southwest Honda to perform each modification using all six mechanics as planned? (Round your answer to 1 decimal place.) Average hours for each modification

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Ch. 6 Q9
Honda Motor Company has discovered a problem in the exhaust system of one of its automobile lines and has voluntarily agreed to
make the necessary modifications to conform to government safety requirements. Standard procedure is for the firm to pay a flat fee
to dealers for each modification completed. Honda is trying to establish a fair amount of compensation to pay dealers and has decided
to choose a number of randomly selected mechanics and observe their performance and learning rate. Based on the results of this
test, Honda decided to pay a $60 fee for each repair (3 hours $20 per flat-rate hour).
Southwest Honda, Inc., Is considering whether to participate in the program. If they can average three hours or less on each repair
(what Honda is willing to pay them for). It will make sense for them to agree. They performed their own test repairs to help in their
decision process. Six mechanics, working independently, have completed two modifications each. On average, the mechanics took 9
hours to do the first unit and 6.3 hours to do the second. The dealership expects to perform 300 such modifications, which works out
to 50 modifications per mechanic, Including the first two units already built. Use Exhibit 6.5.
On average, how many hours will It take Southwest Honda to perform each modification using all six mechanics as planned? (Round
your answer to 1 decimal place.)
Average hours for each modification
Transcribed Image Text:Honda Motor Company has discovered a problem in the exhaust system of one of its automobile lines and has voluntarily agreed to make the necessary modifications to conform to government safety requirements. Standard procedure is for the firm to pay a flat fee to dealers for each modification completed. Honda is trying to establish a fair amount of compensation to pay dealers and has decided to choose a number of randomly selected mechanics and observe their performance and learning rate. Based on the results of this test, Honda decided to pay a $60 fee for each repair (3 hours $20 per flat-rate hour). Southwest Honda, Inc., Is considering whether to participate in the program. If they can average three hours or less on each repair (what Honda is willing to pay them for). It will make sense for them to agree. They performed their own test repairs to help in their decision process. Six mechanics, working independently, have completed two modifications each. On average, the mechanics took 9 hours to do the first unit and 6.3 hours to do the second. The dealership expects to perform 300 such modifications, which works out to 50 modifications per mechanic, Including the first two units already built. Use Exhibit 6.5. On average, how many hours will It take Southwest Honda to perform each modification using all six mechanics as planned? (Round your answer to 1 decimal place.) Average hours for each modification
Exhibit 6.5
Unit
1
2
3
4
5
6
7
8
9
10
12
14
16
18
20
22
24
25
30
35
40
45
50
60
70
80
90
100
120
60%
1.000
1.600
2.045
2.405
2.710
2.977
3216
3.432
3.630
140
160
180
200
250
300
350
3813
4.144
4.438
4.704
4.946
5.171
5.379
400
450
500
5574
5.668
6.097
6478
6.821
7.134
7.422
7.941
8.401
8.814
9.191
9.539
10.16
1072
11.21
11.67
Improvement Curves: Table of Cumulative Values
65%
1.000
1.650
2.155
2.578
2946
3.274
3572
3.847
4.102
12.09
13.01
13.81
14.51
15.14
15.72
16.26
17.21
18.06
600
700
800
900
1,000
1,200
1,400
1,600
23.23
1,800
24.06
2,000 24.83
2.500
26.53
3,000
27.99
4.341
4.780
5.177
6.026
5.541 6.514
5.879
6.972
6.195
7.407
6.492
7.819
6.773
6.909
18.82
19.51
20.15
Cumulative Improvement Factor
70%
75%
80%
1.000
1,000 1.000
1.700
1.750
1.800
2.384
2.502
2.946
3.142
3459 3738
3.934
4.299
4.380
4.834
4802
5.204
5.589
6.315
6.994
7.635
8.245
8828
9.388
7.540
8.109
8.631
9.114
9.565
10.39
11.13
11.82
12.45
13.03
14.11
15.06
15.97
2.268
2.758
3.195
3.593
3.960
16.79
17.55
19.28
20.81
22.18
23.44
24.60
4.303
4.626
4.931
5.501
25.68
27,67
29.45
31.09
32.60
8.213
8.404
44.84
48.97
52.62
9.305
10.13
10.90
11.62
12.31
13.57
1474
15.82
1683
17.79
19.57
21.20
22.72
24 14
25.48
28.56
31.34
33.89
36.26
38.48
40.58
4447
48.04
51.36
54.46
57.40
62.85
67.85
31.01
36.59
21.30
22.32
38.92
41.04
43.00
72.49
76.85
80.96
90.39
98.90
9928
10.19
11.45
1272
34.54
36.80
42.05
46.94
51.48
55.75
59.80
63.68
70.97
77.77
84.18
14.02 17.09
15.64
19.29
13.72
17.19
21.43
1477
18.68
23.50
15.78
20.12
25.51
17.67
22.87
29.41
19.43
25.47
33.17
21.09
27.96
36.80
2267
30.35
24.18
32.65
27.02
37,05
2967
41 22
32.17 45.20
49.03
90.26
96.07
107.0
117.2
126.8
135.9
144.7
165.0
1837
5.346
5.839
EL
6.315
7.227
8.092
8.920
9.716
10.48
11.23
11.95
12.31
52.72
61.47
69.66
77.43
85%
1.000
1.850
2.623
3.345
4031
4.688
5.322
84.85
91.97
98.85
112.0
124.4
136.3
1473
158.7
179.7
199.6
218.6
236.8
254.4
296.1
335.2
5.936
6.533
7.116
8.244
9.331
10.38
11.41
1240
13.38
14.33
14.80
40.32
43.75
50.39
56.78
62.95
68.95
74.79
88.83
102.2
115.1
127.6
139.7
151.5
174.2
196.1
217.3
237.9
257.9
296.6
333.9
369.9
404.9
438.9
520.8
598.9
90%
1.000
1900
2746
3556
4339
5.101
5845
6.574
7:290
7.994
9.374
10.72
12.04
13.33
14.61
15.86
17.10
17.71
20.73
2367
29.37
32.14
37.57
42.87
48.05
53.14
58.14
67.93
7746
86.90
95.96
105.0
126.9
148.2
169.0
189.3
209.2
228.8
267.1
304.5
341.0
376.9
4122
481.2
548.4
26.54 32.68
36.47
40.22
47.65
54.99
62.25
69.45
76.59
90.71
104.7
118.5
6142
678.8
7423
897.0
1047
95%
1.000
1.950
O
2.872
3.774
4662
5.538
6.404
7.261
8111
8.955
10.62
1227
13.91
15.52
17.13
18.72
20.31
21.10
25.00
28.86
132.1
145.7
179.2
212.2
244.8
277.0
309.0
340.6
403.3
465.3
526.5
587.2
647.4
766.6
884.2
1001
1116
1230
1513
1791
M
Transcribed Image Text:Exhibit 6.5 Unit 1 2 3 4 5 6 7 8 9 10 12 14 16 18 20 22 24 25 30 35 40 45 50 60 70 80 90 100 120 60% 1.000 1.600 2.045 2.405 2.710 2.977 3216 3.432 3.630 140 160 180 200 250 300 350 3813 4.144 4.438 4.704 4.946 5.171 5.379 400 450 500 5574 5.668 6.097 6478 6.821 7.134 7.422 7.941 8.401 8.814 9.191 9.539 10.16 1072 11.21 11.67 Improvement Curves: Table of Cumulative Values 65% 1.000 1.650 2.155 2.578 2946 3.274 3572 3.847 4.102 12.09 13.01 13.81 14.51 15.14 15.72 16.26 17.21 18.06 600 700 800 900 1,000 1,200 1,400 1,600 23.23 1,800 24.06 2,000 24.83 2.500 26.53 3,000 27.99 4.341 4.780 5.177 6.026 5.541 6.514 5.879 6.972 6.195 7.407 6.492 7.819 6.773 6.909 18.82 19.51 20.15 Cumulative Improvement Factor 70% 75% 80% 1.000 1,000 1.000 1.700 1.750 1.800 2.384 2.502 2.946 3.142 3459 3738 3.934 4.299 4.380 4.834 4802 5.204 5.589 6.315 6.994 7.635 8.245 8828 9.388 7.540 8.109 8.631 9.114 9.565 10.39 11.13 11.82 12.45 13.03 14.11 15.06 15.97 2.268 2.758 3.195 3.593 3.960 16.79 17.55 19.28 20.81 22.18 23.44 24.60 4.303 4.626 4.931 5.501 25.68 27,67 29.45 31.09 32.60 8.213 8.404 44.84 48.97 52.62 9.305 10.13 10.90 11.62 12.31 13.57 1474 15.82 1683 17.79 19.57 21.20 22.72 24 14 25.48 28.56 31.34 33.89 36.26 38.48 40.58 4447 48.04 51.36 54.46 57.40 62.85 67.85 31.01 36.59 21.30 22.32 38.92 41.04 43.00 72.49 76.85 80.96 90.39 98.90 9928 10.19 11.45 1272 34.54 36.80 42.05 46.94 51.48 55.75 59.80 63.68 70.97 77.77 84.18 14.02 17.09 15.64 19.29 13.72 17.19 21.43 1477 18.68 23.50 15.78 20.12 25.51 17.67 22.87 29.41 19.43 25.47 33.17 21.09 27.96 36.80 2267 30.35 24.18 32.65 27.02 37,05 2967 41 22 32.17 45.20 49.03 90.26 96.07 107.0 117.2 126.8 135.9 144.7 165.0 1837 5.346 5.839 EL 6.315 7.227 8.092 8.920 9.716 10.48 11.23 11.95 12.31 52.72 61.47 69.66 77.43 85% 1.000 1.850 2.623 3.345 4031 4.688 5.322 84.85 91.97 98.85 112.0 124.4 136.3 1473 158.7 179.7 199.6 218.6 236.8 254.4 296.1 335.2 5.936 6.533 7.116 8.244 9.331 10.38 11.41 1240 13.38 14.33 14.80 40.32 43.75 50.39 56.78 62.95 68.95 74.79 88.83 102.2 115.1 127.6 139.7 151.5 174.2 196.1 217.3 237.9 257.9 296.6 333.9 369.9 404.9 438.9 520.8 598.9 90% 1.000 1900 2746 3556 4339 5.101 5845 6.574 7:290 7.994 9.374 10.72 12.04 13.33 14.61 15.86 17.10 17.71 20.73 2367 29.37 32.14 37.57 42.87 48.05 53.14 58.14 67.93 7746 86.90 95.96 105.0 126.9 148.2 169.0 189.3 209.2 228.8 267.1 304.5 341.0 376.9 4122 481.2 548.4 26.54 32.68 36.47 40.22 47.65 54.99 62.25 69.45 76.59 90.71 104.7 118.5 6142 678.8 7423 897.0 1047 95% 1.000 1.950 O 2.872 3.774 4662 5.538 6.404 7.261 8111 8.955 10.62 1227 13.91 15.52 17.13 18.72 20.31 21.10 25.00 28.86 132.1 145.7 179.2 212.2 244.8 277.0 309.0 340.6 403.3 465.3 526.5 587.2 647.4 766.6 884.2 1001 1116 1230 1513 1791 M
Expert Solution
Step 1

Time taken for the first unit (T1)= 9 hoursTime taken for the second unit (T2) = 6.3 hoursTotal modifications done by 6 mechanics = 300

 

 

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