Question 1

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 2

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 in the text. )

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 3

Learning curves have a variety of purposes,which can be placed into which of these broad categories?

Accepted Answer

A) services,industry,and military 
B) internal,external,and strategic 
C) wholesale,distribution,and retail 
D) arithmetic,logarithmic,and learning coefficients 
E) positive learning,neutral learning,and negative learning 
A) services,industry,and military 
B) internal,external,and strategic 
C) wholesale,distribution,and retail 
D) arithmetic,logarithmic,and learning coefficients 
E) positive learning,neutral learning,and negative learning

Question 4

You are a cost accountant for a firm that specializes in "small" (under 10 billion dollars)defence 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 Defence 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 rate.All costs of the project (machine purchase,machine time,direct and indirect labour,and materials)have been bundled (allocated)into an hourly labour rate of $172 per hour.Determine the total project cost using the provided data.

Accepted Answer

From Table E.3 in the text,235

Question 5

The learning curve rate is

Accepted Answer

A) the percentage of time it will take to make each unit when the production rate doubles. 
B) the log-log of the annual rate change divided by the average unit cost. 
C) always based on constant value dollars. 
D) only considered valid after one year of data is accumulated. 
E) always equal to at least 75%. 
A) the percentage of time it will take to make each unit when the production rate doubles. 
B) the log-log of the annual rate change divided by the average unit cost. 
C) always based on constant value dollars. 
D) only considered valid after one year of data is accumulated. 
E) always equal to at least 75%.

Question 6

In the logarithmic 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 -.18442.What learning rate does that value represent?

Accepted Answer

The easiest way to answer is to assume T

Question 7

The seventh unit of production took 63.423 minutes while the ninth unit of production took 59.8 minutes.What is the improvement rate?

Accepted Answer

T(1)= 63.423/(7^b)= 59.8/(9^b)
b = -.234

Question 8

What can cause a learning curve to vary from a smooth downward slope?

Accepted Answer

Several factors can affect the

Question 9

The Learning-Curve Coefficients table reports that for 70% learning,the eighth unit has a unit time value of 0.343.Verify that table entry by use of the arithmetic method.

Accepted Answer

Successive doubling at 70% lea

Question 10

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 factor 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 11

Two manufacturers have very different learning rates;one is under 70% while the other is over 80%.What factors might lead to such a gap?

Accepted Answer

The two firms might not have the same la

Question 12

The fundamental premise underlying learning curve analysis is that

Accepted Answer

A) tasks can be easily learned in organizations. 
B) organizations and people become better at their tasks as the tasks are repeated. 
C) learning takes place when people in organizations change. 
D) total labour costs decrease as the number of production units increases. 
E) doubling output cuts labour requirements per unit in half. 
A) tasks can be easily learned in organizations. 
B) organizations and people become better at their tasks as the tasks are repeated. 
C) learning takes place when people in organizations change. 
D) total labour costs decrease as the number of production units increases. 
E) doubling output cuts labour requirements per unit in half.

Question 13

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

Accepted Answer

Using the arithmetic approach,the second

Question 14

Which of the following is false regarding learning curves?

Accepted Answer

A) Learning curves differ from company to company. 
B) Learning curves can always be used for indirect labour. 
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) Learning curves help to focus on productivity. 
A) Learning curves differ from company to company. 
B) Learning curves can always be used for indirect labour. 
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) Learning curves help to focus on productivity.

Question 15

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

Accepted Answer

The answer of ________ are based on the premise that...

Question 16

Companies pursuing a learning curve strategy must increase

Accepted Answer

A) employee training. 
B) costs. 
C) quality. 
D) volume. 
E) staffing levels. 
A) employee training. 
B) costs. 
C) quality. 
D) volume. 
E) staffing levels.

Question 17

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 labour hours.They also believe that there will be an 80% learning rate.How many hours of labour should Joe include for his bid?

Accepted Answer

From Table E.3 in the text,the

Question 18

A product was priced assuming an 80% learning rate.How much extra labour (in %)will be required on the 4th product if the learning rate is actually 90%?

Accepted Answer

4^-.322 = .64 4^-.15

Question 19

The first unit took 10 hours and the third unit took 5.7 hours.What is the improvement rate?

Accepted Answer

A) 70% 
B) 30% 
C) 50% 
D) 90% 
E) 10% 
A) 70% 
B) 30% 
C) 50% 
D) 90% 
E) 10%

Question 20

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 logarithmic approach. )

Accepted Answer

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

Exam 25: Learning Curves

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 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 in the text. )

Learning curves have a variety of purposes,which can be placed into which of these broad categories?

The learning curve rate is

In the logarithmic 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 -.18442.What learning rate does that value represent?

The seventh unit of production took 63.423 minutes while the ninth unit of production took 59.8 minutes.What is the improvement rate?

What can cause a learning curve to vary from a smooth downward slope?

The Learning-Curve Coefficients table reports that for 70% learning,the eighth unit has a unit time value of 0.343.Verify that table entry by use of the arithmetic method.

Two manufacturers have very different learning rates;one is under 70% while the other is over 80%.What factors might lead to such a gap?

The fundamental premise underlying learning curve analysis is that

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

Which of the following is false regarding learning curves?

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

Companies pursuing a learning curve strategy must increase

A product was priced assuming an 80% learning rate.How much extra labour (in %)will be required on the 4th product if the learning rate is actually 90%?

The first unit took 10 hours and the third unit took 5.7 hours.What is the improvement rate?

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 logarithmic approach. )

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