Exam 26: Learning Curves

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Which of the following statements comparing learning curve rates (L)to improvement rates is TRUE?

(Multiple Choice)
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In the formula to compute the time for the Nth unit,TN = T1(Nb),the exponent b is the learning curve rate L,expressed as a decimal.

(True/False)
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A company negotiates a price for two aircraft that includes a reduction in labor on the second aircraft consistent with a 70% learning curve.Suppose the first aircraft took 100 hours.If the improvement rate changes to 20%,how will the total time to complete both aircraft change?

(Multiple Choice)
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The learning curve rate is:

(Multiple Choice)
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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?

(Essay)
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The first unit of a product took 80 work days.The learning curve is estimated to be 90%.The time for the fourth unit will be about ________ work days and the time for the first four units will be about ________ work days.(Use Table E.3)

(Multiple Choice)
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The fact that human activities typically improve when they are done on a repetitive basis is described by a:

(Multiple Choice)
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If the learning curve for a process is 100 percent,then each unit in a series of units will have the same labor requirements.

(True/False)
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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?

(Essay)
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In addition to labor,to which other variables have learning curves been applied?

(Essay)
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The Learning-Curve Coefficients table reports that for 70 percent learning,the eighth unit has a unit time value of 0.343.Verify that table entry by use of the doubling method.

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

(True/False)
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The fundamental premise underlying learning curve analysis is that:

(Multiple Choice)
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Explain how learning curves might be applied in a bid preparation application.

(Essay)
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Using the doubling approach,determine how long it will take to make the 64th unit of a product if it took 1 hour to complete the first product with a 50% learning curve.

(Essay)
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Learning curves can be applied to a variety of purposes internal to a firm,including:

(Multiple Choice)
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A learning curve:

(Multiple Choice)
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Which of the following statements is most appropriate with respect to a 70% learning curve?

(Multiple Choice)
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What cautions are in order when using learning curves?

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

(Multiple Choice)
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