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YW is aware that there is a learning effect for the production of one of its new products, but is unsure about the degree of learning. The following date relate to the this product.
Time taken to produce the first unit 28 direct Labour hours
Production to date 15 UnitsCumulative time taken to date 104 direct Labour hours
what is the percentage effect ?
Please don’t simply set me a test – say what problem you are having and then I will try and help you. (Surely the book in which you found the question also has an answer in it anyway)
However the question as you have typed it could not possibly be asked in Paper F5.
You can certainly be asked to calculate a learning rate using the doubling rule (and you will have no doubt seen how to do it in the free lecture on Learning Curves).
However production of 15 units does not result from doubling.Have the question said that they had produced 15 units in addition to the first one (i.e a total of 16 units) then it would have been possible. (you would take the fourth root of (average time per unit when 16 are made)/(time for the first unit) )
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