Exam 26: Learning Curves

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)

When comparing a 70% learning curve versus a 90% learning curve,which one results in a more rapid reduction in labor requirements? Why?

The earliest application of learning curves appears in the work of architect Frank Lloyd Wright.

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

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

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?

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.

A 100% learning curve implies that:

The learning curve in the steel industry and the learning curve in heart transplants have both been estimated at 79 percent.

Learning curves can be used to establish budgets.

When learning curves are plotted on ________ scales,the "curves" become straight lines.

The ________ is the simplest approach to learning curve problems.

The first unit took 79 hours;the tenth took 46 hours.What learning curve is implied by the data?

Learning curves have a variety of purposes.Your text places them into which three broad categories?

You are a cost accountant for a firm that specializes in "small" (under 10 billion dollars)defense contracts for specialty electronics products,such as fully portable,miniaturized CD-ROM imaging stations and global positioning transmitters/transponders.Your company is well respected in this field.One project up for competitive bids is a Field Service,Hands-Free,Individual Multi-Protocol Secure Communicator (a battlefield version of a cellular telephone,but built into each soldier's helmet,and containing necessary encryption technology).The Department of Defense wants 8 of these experimental devices to test their practicality.You have reviewed the contract specifications,and estimated that the first FSHFIMPSC should require 2350 hours,and that the product is subject to a 75% learning curve.All costs of the project (machine purchase,machine time,direct and indirect labor,and materials)have been bundled (allocated)into an hourly labor rate of $172 per hour.Determine the total project cost using the provided data.

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. )

A defense contractor has just started producing engines for a new government contract.The first engine took 800 hours to produce.If the learning curve is 80%,how long will it take to produce the first 20 engines?

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. )

Which of the following statements regarding the usefulness of learning curves is FALSE?

Suppose that there are two products with the same first product time.However,product A has an improvement rate of 10% while product B has an improvement rate of 20%.How much longer will it take to make the 10th unit of product A compared to product B?