Let's revisit the calculation to determine the correct number of labor hours Khatri should plan for the next three units.

Step 1: Reconfirm Learning Rate and Cumulative Improvement Factor

Given dataLet's revisit the calculation to determine the correct number of labor hours Khatri should plan for the next three units.

Step 1: Reconfirm Learning Rate and Cumulative Improvement Factor

Given

• 1st unit: 3,000 hours
• 2nd unit: 2,700 hours
• 3rd unit: 2,540 hours

From this, the learning rate appears to be approximately 90%. However, since you mentioned Exhibit 6.5, let's focus on using the cumulative improvement factor from the table directly.

Step 2: Calculate Total Hours for the First 3 Units

The total number of hours for the first three units:

$\text{Total hours for first 3 units} = 3000 + 2700 + 2540 = 8240 \text{ hours}$

Step 3: Use the Cumulative Improvement Factor for 90% Learning Curve

The cumulative improvement factor for 3 units at 90% is 2.746.

The cumulative improvement factor for 6 units (including the next 3 units) at 90% is 5.101.

Step 4: Estimate Total Labor Hours for 6 Units

The total labor hours for 6 units can be estimated by scaling up using the cumulative improvement factor:

$\text{Total hours for 6 units} = \frac{5.101}{2.746} \times \text{Total hours for first 3 units}$

$\text{Total hours for 6 units} = \frac{5.101}{2.746} \times 8240 \approx 15296.6 \text{ hours}$

Step 5: Calculate Hours for the Next 3 Units

Subtract the hours for the first 3 units from the total for 6 units to get the labor hours for the next 3 units:

$\text{Labor hours for next 3 units} = 15296.6 - 8240 = 7056.6 \text{ hours}$

This result is approximately 7,057 hours as previously calculated, which aligns with the previous estimate. However, if this answer seems incorrect, it's crucial to consider whether another method or factor should be applied.

Re-check and Re-calculate

Let's consider that rounding errors or misinterpretation of the factor may have occurred. Instead, use the total cumulative factor to directly estimate new hours.

Use Direct Calculation Approach

$\text{Planned Hours for Next 3 Units} = \text{Labor Hours for First 3 Units} \times \frac{\text{Cumulative Factor for 6 Units}}{\text{Cumulative Factor for 3 Units}}$

The final check would be as follows: $7057 \text{ was rounded from 7056.6 hours}$

If there are specific corrections needed from any table corrections or interpretations, please share or we can directly re-calculate as needed.

Would you prefer any details on the other factors or a different estimate that was envisioned?

Tip: It's always useful to double-check data and recalibrate with another look at assumptions or recalculated terms.