Followon Orders

Once the initial experience curve has been developed for either the initial order or production run, the values through the last unit on the cumulative average and unit curves can be determined. Follow-on orders and continuations of production runs, which are considered extensions of the original orders or runs, are plotted as extensions on the appropriate curve. However, the cumulative average value through the final point of the extended curve is not the cumulative average for the follow-on portion of that curve. It is the cumulative average for both portions of the curve, assuming no break in production. Thus estimating the cost for the follow-on effort only requires evaluation of the differences between cumulative average costs for the initial run and the follow-on. Likewise, the last-unit value for both portions of the unit curve would represent the last-unit value for the combined curve.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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