Exam 16: Learning Curve Analysis

Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit 80\% Learning Rate ( n= cumulative production) n n n 1 1.00000 19 0.53718 37 0.43976 2 0.90000 20 0.52425 38 0.43634 3 0.83403 21 0.51715 39 0.43304 4 0.78553 22 0.51045 40 0.42984 5 0.74755 23 0.50410 64 0.37382 6 0.71657 24 0.49808 128 0.30269 7 0.69056 25 0.49234 256 0.24405 8 0.66824 26 0.48688 512 0.19622 9 0.64876 27 0.48167 600 0.18661 10 0.63154 28 0.47668 700 0.17771 11 0.61613 29 0.47191 800 0.17034 12 0.60224 30 0.46733 900 0.16408 13 0.58960 31 0.46293 1,000 0.15867 14 0.57802 32 0.45871 1,200 0.14972 15 0.56737 33 0.46464 1,400 0.14254 16 0.55751 34 0.45072 1,600 0.13660 17 0.54834 35 0.44694 1,800 0.13155 18 0.53979 36 0.44329 2,000 0.12720 90\% Learning Rate ( n= cumulative production) n n n 1 1.00000 19 0.73545 37 0.67091 2 0.95000 20 0.73039 38 0.66839 3 0.91540 21 0.72559 39 0.66595 4 0.88905 22 0.72102 40 0.66357 5 0.86784 23 0.71666 64 0.62043 6 0.85013 24 0.71251 128 0.56069 7 0.83496 25 0.70853 256 0.50586 8 0.82172 26 0.70472 512 0.45594 9 0.80998 27 0.70106 600 0.44519 10 0.79945 28 0.69754 700 0.43496 11 0.78991 29 0.69416 800 0.42629 12 0.78120 30 0.69090 900 0.41878 13 0.77320 31 0.68775 1,000 0.41217 14 0.76580 32 0.67471 1,200 0.40097 15 0.75891 33 0.68177 1,400 0.39173 16 0.75249 34 0.67893 1,600 0.38390 17 0.74646 35 0.67617 1,800 0.37711 18 0.74080 36 0.67350 2,000 0.37114 -The production for a new product follows: Month Units 1 4 2 5 3 6 4 7 The first unit will take 2,000 hours to produce and the learning rate is 90 percent.Currently,the company employs 40 workers,who each work 200 hours regular time per month.In which months will overtime be needed for the production schedule shown? Refer to the copy of Table G.1 above.

The production schedule for a new product follows Month No Units 1 15 2 20 3 40 4 35 The first unit took 100 hours to complete, and the rate of learning is 80 percent. Each employee works 40 hours per month. Refer to the copy of Table G.1 below. Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit 80\% Learning Rate ( n= cumulative production) n n n 1 1.00000 19 0.53718 37 0.43976 2 0.90000 20 0.52425 38 0.43634 3 0.83403 21 0.51715 39 0.43304 4 0.78553 22 0.51045 40 0.42984 5 0.74755 23 0.50410 64 0.37382 6 0.71657 24 0.49808 128 0.30269 7 0.69056 25 0.49234 256 0.24405 8 0.66824 26 0.48688 512 0.19622 9 0.64876 27 0.48167 600 0.18661 10 0.63154 28 0.47668 700 0.17771 11 0.61613 29 0.47191 800 0.17034 12 0.60224 30 0.46733 900 0.16408 13 0.58960 31 0.46293 1,000 0.15867 14 0.57802 32 0.45871 1,200 0.14972 15 0.56737 33 0.46464 1,400 0.14254 16 0.55751 34 0.45072 1,600 0.13660 17 0.54834 35 0.44694 1,800 0.13155 18 0.53979 36 0.44329 2,000 0.12720 90\% Learning Rate ( n= cumulative production) n n n 1 1.00000 19 0.73545 37 0.67091 2 0.95000 20 0.73039 38 0.66839 3 0.91540 21 0.72559 39 0.66595 4 0.88905 22 0.72102 40 0.66357 5 0.86784 23 0.71666 64 0.62043 6 0.85013 24 0.71251 128 0.56069 7 0.83496 25 0.70853 256 0.50586 8 0.82172 26 0.70472 512 0.45594 9 0.80998 27 0.70106 600 0.44519 10 0.79945 28 0.69754 700 0.43496 11 0.78991 29 0.69416 800 0.42629 12 0.78120 30 0.69090 900 0.41878 13 0.77320 31 0.68775 1,000 0.41217 14 0.76580 32 0.67471 1,200 0.40097 15 0.75891 33 0.68177 1,400 0.39173 16 0.75249 34 0.67893 1,600 0.38390 17 0.74646 35 0.67617 1,800 0.37711 18 0.74080 36 0.67350 2,000 0.37114 -Using the information in Case G.1,how much time will it take to produce the units in month 1?

Why is the learning rate more pronounced for complex products than for simple products?

It took 100 hours to produce the first unit and 95 hours to produce the second unit.How many hours are required to produce the eighth unit?