Question 1

Which statement regarding the effect of automating some of the direct labor in a process is best?

Accepted Answer

A) The overall learning rate should be unaffected. 
B) The overall learning rate will probably decrease. 
C) The overall learning rate will probably increase. 
D) The learning rate for the automated portion of the process should be higher than the learning rate for the portion that is not automated. 
A) The overall learning rate should be unaffected. 
B) The overall learning rate will probably decrease. 
C) The overall learning rate will probably increase. 
D) The learning rate for the automated portion of the process should be higher than the learning rate for the portion that is not automated.

Question 2

Table G.1  
-The seventh unit of a long production run was produced in 3 hours.The process has an estimated learning rate of 90 percent.At what level of output will the cumulative production time exceed 40 hours? Refer to the copy of Table G.1 above.

Accepted Answer

A) Fewer than or equal to 8 units 
B) Greater than 8 units but fewer than or equal to 10 units 
C) Greater than 10 units but fewer than or equal to 12 units 
D) Greater than 12 units 
A) Fewer than or equal to 8 units 
B) Greater than 8 units but fewer than or equal to 10 units 
C) Greater than 10 units but fewer than or equal to 12 units 
D) Greater than 12 units

Question 3

The learning effect can be represented by a line called a learning curve.

Accepted Answer

A) True 
 B)False

Question 4

How are learning curves useful in financial planning?

Accepted Answer

Learning curves help the financial plann

Question 5

Table G.1  
-As the cumulative number of units produced becomes large

Accepted Answer

A) the learning effect is more noticeable. 
B) the learning effect increases. 
C) the learning effect is less noticeable. 
D) the learning effect decreases. 
A) the learning effect is more noticeable. 
B) the learning effect increases. 
C) the learning effect is less noticeable. 
D) the learning effect decreases.

Question 6

Table G.1  
-It took 100 hours to produce the first unit and the learning rate is 80 percent.How much time will it take to produce units 16 through 20? Refer to the copy of Table G.1 above.

Accepted Answer

A) Fewer than or equal to 160 hours 
B) Greater than 160 but fewer than or equal to 170 hours 
C) Greater than 170 but fewer than or equal to 180 hours 
D) Greater than 180 hours 
A) Fewer than or equal to 160 hours 
B) Greater than 160 but fewer than or equal to 170 hours 
C) Greater than 170 but fewer than or equal to 180 hours 
D) Greater than 180 hours

Question 7

Which statement regarding learning rates is best?

Accepted Answer

A) A more complicated process offers more room for improvement. 
B) A simpler process has a more pronounced learning rate. 
C) Typically,the effect of each capital addition on the learning curve is significant. 
D) Regardless of output volume.the estimate for the time required to produce the first unit is less important than the estimate of the learning rate. 
A) A more complicated process offers more room for improvement. 
B) A simpler process has a more pronounced learning rate. 
C) Typically,the effect of each capital addition on the learning curve is significant. 
D) Regardless of output volume.the estimate for the time required to produce the first unit is less important than the estimate of the learning rate.

Question 8

The simpler the product,the more pronounced the learning rate.

Accepted Answer

A) True 
 B)False

Question 9

Learning curves provide their greatest advantage in the early stages of new service or product production.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following statements about learning curves is FALSE?

Accepted Answer

A) The direct labor for the n+1st unit will always be less than the direct labor required for the nth unit. 
B) The reduction in time will follow an exponential curve. 
C) A benefit of learning curves is that they are unaffected by factors such as product complexity and the rate of capital additions. 
D) The cumulative average number of direct labor hours per unit for a given product after the tenth unit with an 80 percent learning rate will be less than that for the same product with a 70 percent learning rate. 
A) The direct labor for the n+1st unit will always be less than the direct labor required for the nth unit. 
B) The reduction in time will follow an exponential curve. 
C) A benefit of learning curves is that they are unaffected by factors such as product complexity and the rate of capital additions. 
D) The cumulative average number of direct labor hours per unit for a given product after the tenth unit with an 80 percent learning rate will be less than that for the same product with a 70 percent learning rate.

Question 11

Table G.1  
-A contractor is preparing a bid to install swimming pools at a new housing addition.The estimated time to build the first pool is 35 hours.The contractor estimates a 90 percent learning rate;what is the estimated time to install all 30 pools? Refer to the copy of Table G.1 above.

Accepted Answer

Using Table G.1,the coefficien

Question 12

Table G.1  
-How long will it take to make 25 units if the first one took 8 hours and there is a 90 percent learning rate? Refer to the copy of Table G.1 above.

Accepted Answer

A) Fewer than or equal to 130 hours 
B) Greater than 130 hours but fewer than or equal to 140 hours 
C) Greater than 140 hours but fewer than or equal to 150 hours 
D) Greater than 150 hours 
A) Fewer than or equal to 130 hours 
B) Greater than 130 hours but fewer than or equal to 140 hours 
C) Greater than 140 hours but fewer than or equal to 150 hours 
D) Greater than 150 hours

Question 13

A manager of a company producing computer chips knows that in the early stages of production for a new product,the expenditures exceed receipts,whereas in the latter stages,the reverse is true.Give an explanation for this phenomenon.

Accepted Answer

The learning curve theory states that th

Question 14

What are the three major assumptions of the learning curve?

Accepted Answer

(1)Direct labor required for the n+1st u

Question 15

Table G.1  
-How long will it take to make units 11 through 20 if the first one took 8 hours and there is a 90 percent learning rate? Refer to the copy of Table G.1 above.

Accepted Answer

A) Fewer than or equal to 50 hours 
B) Greater than 50 hours but fewer than or equal to 55 hours 
C) Greater than 55 hours but fewer than or equal to 60 hours 
D) Greater than 60 hours 
A) Fewer than or equal to 50 hours 
B) Greater than 50 hours but fewer than or equal to 55 hours 
C) Greater than 55 hours but fewer than or equal to 60 hours 
D) Greater than 60 hours

Question 16

The learning rate depends on factors such as ________ and ________.

Accepted Answer

complexity

Question 17

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

Accepted Answer

Complex products off

Question 18

The mathematical model that is used to generate a learning curve is ________.

Accepted Answer

The answer of The mathematical model that is used to...

Question 19

Which one of the following statements about learning curves is TRUE?

Accepted Answer

A) A learning curve assumes that the direct labor requirements per unit will decrease at an increasing rate as cumulative production increases. 
B) Learning at a capital-intensive operation usually will be less than it is for a labor-intensive operation. 
C) Learning for a simple product will usually be greater than it is for complex products. 
D) Learning curves can be used only for individuals,not for the whole organization. 
A) A learning curve assumes that the direct labor requirements per unit will decrease at an increasing rate as cumulative production increases. 
B) Learning at a capital-intensive operation usually will be less than it is for a labor-intensive operation. 
C) Learning for a simple product will usually be greater than it is for complex products. 
D) Learning curves can be used only for individuals,not for the whole organization.

Question 20

The estimated time to produce the first unit is 100 hours.If a 90 percent learning rate is applicable,what is the estimated time of producing the tenth unit? Refer to the copy of Table G.1 above.

Accepted Answer

Learning rate 90.0%
Time for f

Exam 17: Learning Curve Analysis

Which statement regarding the effect of automating some of the direct labor in a process is best?

Table G.1 -The seventh unit of a long production run was produced in 3 hours.The process has an estimated learning rate of 90 percent.At what level of output will the cumulative production time exceed 40 hours? Refer to the copy of Table G.1 above.

The learning effect can be represented by a line called a learning curve.

How are learning curves useful in financial planning?

Table G.1 -As the cumulative number of units produced becomes large

Table G.1 -It took 100 hours to produce the first unit and the learning rate is 80 percent.How much time will it take to produce units 16 through 20? Refer to the copy of Table G.1 above.

Which statement regarding learning rates is best?

The simpler the product,the more pronounced the learning rate.

Learning curves provide their greatest advantage in the early stages of new service or product production.

Which one of the following statements about learning curves is FALSE?

Table G.1 -A contractor is preparing a bid to install swimming pools at a new housing addition.The estimated time to build the first pool is 35 hours.The contractor estimates a 90 percent learning rate;what is the estimated time to install all 30 pools? Refer to the copy of Table G.1 above.

Table G.1 -How long will it take to make 25 units if the first one took 8 hours and there is a 90 percent learning rate? Refer to the copy of Table G.1 above.

A manager of a company producing computer chips knows that in the early stages of production for a new product,the expenditures exceed receipts,whereas in the latter stages,the reverse is true.Give an explanation for this phenomenon.

What are the three major assumptions of the learning curve?

Table G.1 -How long will it take to make units 11 through 20 if the first one took 8 hours and there is a 90 percent learning rate? Refer to the copy of Table G.1 above.

The learning rate depends on factors such as ________ and ________.

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

The mathematical model that is used to generate a learning curve is ________.

Which one of the following statements about learning curves is TRUE?

The estimated time to produce the first unit is 100 hours.If a 90 percent learning rate is applicable,what is the estimated time of producing the tenth unit? Refer to the copy of Table G.1 above.

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The learning rate depends on factors such as and .