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Hi John
I need some help with calculating the learning rate in this example. This is from ACCA website.
The first phase of production has now been completed for the new car seat. The first unit actually took 12.5 hours to make and the total time for the first eight units was 34.3 hours, at which point the learning effect came to an end. Chair Co are planning on adjusting the price to reflect the actual time it took to complete the eighth unit.
What was the actual rate of learning which occurred (to two decimal places)?
Their method is
Actual learning rate
Cumulative number of Cumulative total Cumulative average
seats produced hours hours per unit
1 12·5 12·5
2 ? 12·5 x r
4 ? 12·5 x r2
8 34·3 12·5 x r3
Using algebra: 34·3 = 8 x (12·5 x r3)
4·2875 = (12·5 x r3)
0·343 = r3
r = 0·70
Therefore the learning rate was 70%Would you do it differently? Normally your ways are better
Thanks
OksanaI do wish you the best of luck – I hope it all goes well for you (and that then I see you again on F9 before too long 🙂 )
Hi John,
I have a question its q142 in the bpp revision kit.
The question is:
The following statements have been made about learning curves.
(1) learning curves are easier to apply in companies with high labour turnover than those with lower rate of staff turnover
(2) learning rates are not affected by time gaps between the production of additional units of a product.
Which of the following statements are true?A. 1 only
B. 2 only
C. Neither 1 nor 2
D. Both 1 and 2Answer from BPP – D
But i do not understand the logic behinf the answer. Can you help me? Thank youBPP’s answer is a typing mistake – they have given an answer to a different question (if you look at the workings)!!
The correct answer is C.
If there is high labour turnover then new employees keep appearing and they have to start learning all over again.
Time gaps in production mean that workers forget and have to start learning again.Dear John
Please can you talk me through this example? I do not know how to calculate this formula.Appreciate your help
Regards
Walter
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