Exam 21: Learning Curves

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The learning curve may not be permanent; it can be disrupted by changes in process, personnel, or product.

(True/False)
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A product was priced assuming a 75% learning curve. How much extra labor (in $) will be required on the 4th product if the learning curve is actually 85%? Assume that the first unit cost $100 to produce.

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A defense contractor has just started producing turbines for a new government contract. The first turbine took 7000 hours to produce. If the learning curve is 90%, how long will it take to produce the 10th turbine? (Use at least three decimals in the exponent if you use the formula approach.)

(Multiple Choice)
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The earliest industrial application of learning curves came from a report by ________.

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Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated.

(True/False)
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Learning curves (or experience curves) were first applied to industry by ________ who was studying ________.

(Multiple Choice)
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The first unit of a product took 832 hours to build, and the learning curve is 70%. How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the formula approach.)

(Multiple Choice)
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________ are based on the premise that people and organizations get better at their tasks as the tasks are repeated.

(Short Answer)
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Joe's Manufacturing is considering bidding on a small order for 5 units. Based on similar products that they have made in the past, they believe that the first unit will take 500 labor hours. They also believe that there will be an 80% learning curve. How many hours of labor should Joe include for his bid?

(Essay)
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Learning curves can be used to establish budgets.

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Experience curves are the opposite of learning curves-as one rises, the other falls.

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On an ordinary graph, unit times for a learning curve decrease at a decreasing rate, but on a log-log graph, the learning "curve" appears as a straight line.

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Companies pursuing a learning curve strategy MUST increase which of the following?

(Multiple Choice)
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The seventh unit of production took 63.423 minutes while the ninth unit of production took 59.8 minutes. What is the improvement rate?

(Short Answer)
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