Exam 26: Learning Curves

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?

In the formula approach to learning curve calculations,you have used the formula TN = T1 (Nb).Your manager shows you a problem for which b is specified as -.18443.What learning curve does that value represent?

Reevaluation of learning curves is inappropriate.

In the formula approach to learning curve calculations,you have used the formula TN = T1 (Nb).For a problem with a 92 percent learning curve,what is b?

A contractor builds large ships for the Department of Defense.A recent contract called for 12 amphibious landing platforms.It was originally estimated that the first of these would cost $1 billion and that 80 percent learning would be appropriate.In fact,the first ship cost $1.6 billion and the second $1.12 billion.What is the revised learning curve? What will be the total cost of the twelve ships? Is it higher or lower than the original estimate? If the defense department cuts the contract from 12 ships to 9,what happens to the average cost per ship?

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.

The learning curve for a product is 80 percent.The first unit took 100 hours to complete.The manufacturer wants to determine how many hours the fifth unit will take by using the formula approach.What is the coefficient b for that calculation?

The learning curve may not be permanent;it can be disrupted by changes in process,personnel,or product.

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?

Which of the following is NOT a limitation of the use of learning curves?

Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated.

If the first unit in a series of units takes 200 days to complete,and the learning curve is 80%,then the second unit will take 160 days.

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

Your firm has expertise with a special type of hand-finished furniture.The learning curve is known to be 82%.If the first piece of furniture took 6 hours,use the formula approach to determine how long it will take to make the third unit.

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?

The doubling approach to learning curve calculations allows us to determine the hours required for any unit.

Which of the following is representative of a firm pursuing a learning-curve strategy?

The first unit of a product took 50 hours to build,and the learning curve is 85%.How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the formula approach. )

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?

Which of the following best conveys the essence of learning curves?