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1. A Co. is starting to produce a new product. The first unit takes 25 hours to produce. The Co. has identifieda learning rate of 75%. How long will it take the Co. to produce an additional 7 units?
2. A Co. is intending to produce a new product. They have made two test units – the first of them took 8 hours to make and the second one took 6 hours. What is the learning rate?
Note: Please show the calculation for the above mentioned questions.
Dear Sir / Madam,
Can you please solve the learning curve questions? Would appreciate your help in advance.
Thanks
Debajyoti1. If they produce another 7 units that will have made 8 units in total.
Average time per unit if they make 8 units = 25 x 0.75^3 = 10.55 hours
Total time for 8 units = 8 x 10.55 = 84.4 hours
Therefore time for the next 7 = 84.4 – 25 = 59.4 hours.
2. Average time per unit if they make 2 = (8 + 6) / 2 = 7 hours.
Therefore learning rate = 7/8 = 87.5%I do suggest that you watch our free lectures – both of these type of questions are explained in detail in the lecture on learning curves.
First unit of product:
Material $200
Labour (30 Hours x $20/hr)
Overhead (30 Hours x $8/hr)
Profit mark up 50%
Price per unit $1560An 80% learning curve
A) cost of second unit
B) calculate the cost per unit if the customer would place the order based on 2 units now and 2 units later
C) calculate the selling price of 8 units
There is no point in setting me a test question and expecting me to provide a full answer.
You must have an answer in the same book in which you found the question. Ask about whatever it is in the answer and then I will help you.
If you have watched my free lectures, then you should actually find this a very simple question. I do suggest that you watch the lectures.
The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
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