Exam 25: Learning Curve Analysis

The learning effect can be represented by a line called a learning curve.

When production time standards are being developed for a brand new process for several of the hand assembly components of the production line,what are the implications of learning effects on the time standards and the line balance? What could be done to address this situation?

Which one of the following is an assumption of learning curves?

It took 100 hours to produce the first unit and 95 hours to produce the second unit.How many hours are required to produce the eighth unit? [Note: a calculator is required to answer this question.]

The learning rate depends on factors such as ________ and ________.

The annual report for Luddite Corporation boasted of their ERP implementation and noted that,"while there were initially some growing pains,our learning rate for this system has been calculated at 100%." What are the implications of this statement?

As the cumulative number of units produced becomes large,the:

Case I.1 The production schedule for a new product follows. The first unit took 100 hours to complete,and the rate of learning is 80 percent.Each employee works 40 hours per month.Refer to the copy of Table I.1 appended to this exam. -Using the information in Case I.1,what is the minimum number of employees needed in month 3?

Given that the fifth unit took 10 hours to build and the learning rate is 90 percent,how much time will it take to build units 11 through 15? Refer to the copy of Table I.1 appended to this exam.

Which statement regarding the effect of automating some of the direct labor in a process is best?

A contractor is preparing a bid to install swimming pools at a new housing addition.The estimated time to build the first pool is 35 hours.The contractor estimates a 90 percent learning rate;what is the estimated time to install all 30 pools? Refer to the copy of Table I.1 appended to this exam.

A business that relies on learning effects to achieve their strategic objectives is most likely in a ________ volume ________ variety production sector.

The fifth unit took 10 hours to produce and the learning rate is expected to be 85 percent.How long will it take to produce the tenth unit?

One assumption about learning curves is that the reduction in time will increase as output increases.

Which one of the following statements is TRUE about the relationship between learning curves and competitive strategy?

One assumption about learning curves is that the reduction in time obeys a normal distribution.

What are the three major assumptions of the learning curve?

The estimated time to produce the first unit is 100 hours.If a 90 percent learning rate is applicable,what is the estimated time of producing the first ten units? Refer to the copy of Table I.1 appended to this exam.

In Troix City,the learning rate is based on a tripling of output instead of the traditional doubling.The first unit of a long production run was produced in 25 hours.The process has an estimated learning rate of 90 percent.At what level of output will the cumulative production time exceed 200 hours?

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 cumulative average production time per unit falls below 15 hours?