Question 1

Which of the following is FALSE regarding learning curves?

Accepted Answer

A) Learning curves differ from company to company. 
B) The same learning curves are used for indirect labor as are used for direct labor. 
C) Changes in personnel can change the learning curve. 
D) The learning curve may spike for a short time even if it is going to drop in the long run. 
E) All of the above are false. 
A) Learning curves differ from company to company. 
B) The same learning curves are used for indirect labor as are used for direct labor. 
C) Changes in personnel can change the learning curve. 
D) The learning curve may spike for a short time even if it is going to drop in the long run. 
E) All of the above are false.

Question 2

Learning curves can be used to establish budgets.

Accepted Answer

A) True 
 B)False

Question 3

A firm that successfully pursues a steeper-than-industry-average learning curve and manages costs down may still fail if,by underestimating a strong competitor,it fails to gain the added volume necessary for the learning curve to exist.

Accepted Answer

A) True 
 B)False

Question 4

A small manufacturer that offers "hand crafted" furniture has developed a new style of desk that they believe will be very successful in the marketplace.It is expected that the first desk will take about 60 hours of craftsmen's time to complete.They expect a 90% learning curve for this desk.
How long will it take to make the 20th desk? The firm is considering accepting an order for 25 desks.How many hours of labor will this require for all 25?

Accepted Answer

The 20th desk will r

Question 5

The first unit took 10 hours and the fourth unit took 8.1 hours to complete.What is the learning curve?

Accepted Answer

A) 100% 
B) 99% 
C) 95% 
D) 90% 
E) 80% 
A) 100% 
B) 99% 
C) 95% 
D) 90% 
E) 80%

Question 6

A job with a 90% learning curve required 20 hours for the initial unit.The fourth unit should require approximately how many hours?

Accepted Answer

A) 16.0 
B) 16.2 
C) 18.0 
D) 20.0 
E) 54.2 
A) 16.0 
B) 16.2 
C) 18.0 
D) 20.0 
E) 54.2

Question 7

The first unit of a product took 1,000 hours to build and the learning curve is 85%.How long will it take to make the first 5 units? (Use Table E.3)

Accepted Answer

A) less than 4,005 hours 
B) from 4,005 to 4,015 hours 
C) from 4,015 to 4,025 hours 
D) from 4,025 to 4,035 hours 
E) from 4,035 to 4,045 hours 
A) less than 4,005 hours 
B) from 4,005 to 4,015 hours 
C) from 4,015 to 4,025 hours 
D) from 4,025 to 4,035 hours 
E) from 4,035 to 4,045 hours

Question 8

What problems in scheduling can arise if adjustments for learning curve effects in operations are not made?

Accepted Answer

Labor and productive facilitie

Question 9

It took 60 hours to make the first unit of a product.After the second and third units were made,the learning curve was estimated to be 80%.At $10 per hour,estimate the labor bill for the fourth unit.(Use at least three decimals in the exponent if you use the formula approach.)

Accepted Answer

A) $400 or less 
B) from $400 to $420 
C) from $420 to $440 
D) from $1800 to $2000 
E) over $2000 
A) $400 or less 
B) from $400 to $420 
C) from $420 to $440 
D) from $1800 to $2000 
E) over $2000

Question 10

The first product took 10 hours to build and the learning curve is estimated to be 90%.How long will it take to make the fourth unit?

Accepted Answer

A) 10 hours 
B) 9 hours 
C) 8.1 hours 
D) 7.5 hours 
E) none of the above 
A) 10 hours 
B) 9 hours 
C) 8.1 hours 
D) 7.5 hours 
E) none of the above

Question 11

Your company is making experimental turbochargers for a new design of high-powered farm tractors.The production schedule for these new components is contained in the table below.
   The first turbocharger,a trial unit,took 900 hours to produce.Based on your experience with similar products,the learning curve is 85%.You have 20 employees,and each employee works 160 hours per month.How many hours will be required in each month? In which month(s)will overtime be required to meet the production schedule?

Accepted Answer

Use the Total Time column of the 85% sec

Question 12

A metal works fabricator is about to release a new model of his firm's copper sculpture and fountain.The operations manager estimates that this product is subject to a 90 percent learning curve on labor only-the material bill is not affected by experience.The firm prices its work based on cost-the sum of materials plus 30 percent and labor plus 50 percent.(This allows the firm to practice a form of "demand management" for its very popular works.)The first item has already been finished; the material bill was $800 and labor totaled 40 hours.The firm pays its metalworking artisans an average of $18 per hour.What should be the asking price of the first unit? The second?

Accepted Answer

Based on the pricing formula,the first u

Question 13

What is the basic premise underlying the learning curve?

Accepted Answer

The basic premise underlying t

Question 14

The first unit of a product took 832 hours to build,and the learning curve is 75%.How long will it take to make the 30th unit? (Use at least three decimals in the exponent if you use the formula approach.)

Accepted Answer

A) less than 200 hours 
B) from 200 to 225 hours 
C) from 225 to 250 hours 
D) from 2501 to 275 hours 
E) 275 or more hours 
A) less than 200 hours 
B) from 200 to 225 hours 
C) from 225 to 250 hours 
D) from 2501 to 275 hours 
E) 275 or more hours

Question 15

Your firm has a contract to make 20 specialty lenses for night vision equipment.The first one took 40 hours.Learning is expected at the 85% learning curve.How long will it take to finish all 20 units?

Accepted Answer

The best solution method uses

Question 16

The learning rate for a product is 90 percent.The first unit took 10 hours to complete.The manufacturer wants to determine how many hours the fourth unit will take by using the formula approach.What is the coefficient b for that calculation?

Accepted Answer

A) -.1053 
B) -.1520 
C) -.3219 
D) .6931 
E) 8.1 
A) -.1053 
B) -.1520 
C) -.3219 
D) .6931 
E) 8.1

Question 17

Experience curves may be valid for industrial applications,but have no role in services such as health care procedures.

Accepted Answer

A) True 
 B)False

Question 18

The first unit of a product took 832 hours to build,and the learning curve is 90%.How long will it take to make the 25th unit? (Use at least three decimals in the exponent if you use the formula approach.)

Accepted Answer

A) time ≤ 500 hours 
B) 500  550 
A) time ≤ 500 hours 
B) 500  550

Question 19

In the Learning-Curve Coefficients table for 70 percent learning,the sixth unit has a unit time value of 0.398.Verify that table entry by use of the formula approach.Use five decimals in your work.

Accepted Answer

The factor b for 70 percent learning is

Question 20

"By tradition,learning curves are defined in terms of the complements of their improvement rates." Explain.

Accepted Answer

The improvement in labor usage might be

Exam 26: Learning Curves

Which of the following is FALSE regarding learning curves?

Learning curves can be used to establish budgets.

A firm that successfully pursues a steeper-than-industry-average learning curve and manages costs down may still fail if,by underestimating a strong competitor,it fails to gain the added volume necessary for the learning curve to exist.

The first unit took 10 hours and the fourth unit took 8.1 hours to complete.What is the learning curve?

A job with a 90% learning curve required 20 hours for the initial unit.The fourth unit should require approximately how many hours?

The first unit of a product took 1,000 hours to build and the learning curve is 85%.How long will it take to make the first 5 units? (Use Table E.3)

What problems in scheduling can arise if adjustments for learning curve effects in operations are not made?

It took 60 hours to make the first unit of a product.After the second and third units were made,the learning curve was estimated to be 80%.At $10 per hour,estimate the labor bill for the fourth unit.(Use at least three decimals in the exponent if you use the formula approach.)

The first product took 10 hours to build and the learning curve is estimated to be 90%.How long will it take to make the fourth unit?

What is the basic premise underlying the learning curve?

The first unit of a product took 832 hours to build,and the learning curve is 75%.How long will it take to make the 30th unit? (Use at least three decimals in the exponent if you use the formula approach.)

Your firm has a contract to make 20 specialty lenses for night vision equipment.The first one took 40 hours.Learning is expected at the 85% learning curve.How long will it take to finish all 20 units?

The learning rate for a product is 90 percent.The first unit took 10 hours to complete.The manufacturer wants to determine how many hours the fourth unit will take by using the formula approach.What is the coefficient b for that calculation?

Experience curves may be valid for industrial applications,but have no role in services such as health care procedures.

The first unit of a product took 832 hours to build,and the learning curve is 90%.How long will it take to make the 25th unit? (Use at least three decimals in the exponent if you use the formula approach.)

In the Learning-Curve Coefficients table for 70 percent learning,the sixth unit has a unit time value of 0.398.Verify that table entry by use of the formula approach.Use five decimals in your work.

"By tradition,learning curves are defined in terms of the complements of their improvement rates." Explain.

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