Exam 17: Learning Curve Analysis

Table G.1 -The production for a new product follows: 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.

Table G.1 -The fifth unit of a long production run was produced in 15 hours.The process has an estimated learning rate of 90 percent.What is the lowest level of output at which the average production time per unit falls below 15 hours? Refer to the copy of Table G.1 above.

Two contract labor companies are competing for work being outsourced by Febrero SpA.One contractor,Terza,has a learning rate governed by a tripling of output at a 90% rate and the other contractor,Segundo,has a learning rate governed by the conventional doubling of output at a 90% rate.Both Terza and Segundo take 20 minutes to complete the first unit they are given for bid estimation purposes.How many more units must Terza make than Segundo before their time per unit drops below 15 minutes?

Table G.1 -A company is introducing a new product.The first unit took 1,000 hours to complete,and the fourth unit took 750 hours to complete.What is the rate of learning for this product?