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Crush Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Crush Co

  • This topic has 5 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • May 9, 2018 at 10:50 am #450842
    khanumishq
    Member
    • Topics: 46
    • Replies: 21
    • ☆☆

    The first batch of 100 units will take 1,500 labour hours to produce. Crush
    Co has estimated that there will be an 85% learning curve that will continue until 6,400 units have been produced.
    Batches after this level will each take the same amount of time as the 64th batch. The batch size will always be 100
    units.
    Note: The learning index for an 85% learning curve is -0.2345

    b)The total time for the first 16 batches of 100 units was 9,000 hours. What was the actual learning rate
    closest to (to the nearest %)?
    A 80%
    B 75%
    C 78%
    D 73%

    I tried to answer this using the method you have taught but in the bpp kit they have solved it in some other way.

    Shouldn’t it be like this:
    1500+9000 = 10500/16= 656.25

    656.25 = 1500 x r4??

    May 9, 2018 at 5:54 pm #450913
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    That is not the way I taught it!!

    Since the total time for the first 16 batches is 9,000 hours, the average time per batch when they make 16 is 9,000/16 = 562.5 hours

    Therefore 562.5 = 1,500 x r^4

    Therefore r = 0.78 or 78%

    (There is no point in trying to get an average by adding 1500 + 9000 and dividing by 2. That is not how we get an average!!!)

    May 19, 2018 at 10:10 pm #452894
    khanumishq
    Member
    • Topics: 46
    • Replies: 21
    • ☆☆

    A company is intending to produce a new product.
    They have produced two test units, the first of which took 18 hours to make whereas second took only 10 hrs.

    What is the learning rate?
    a.18%
    b.28%
    c.78%
    d.56%

    why 78%??

    May 20, 2018 at 9:55 am #452947
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    You have obviously not watched my free lectures on this, because I work through an almost identical example! You cannot expect me to type out all my lectures here!!

    The average time per unit to make two units is (18+10)/2 = 14 hours.

    Therefore the learning rate is 14/18 = 0.78 0r 78%

    May 20, 2018 at 10:46 am #452962
    khanumishq
    Member
    • Topics: 46
    • Replies: 21
    • ☆☆

    I did watch all your lectures but I am still having problem. 🙁

    May 20, 2018 at 4:30 pm #452994
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Well I hope you are now clear about this example 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Crush Co’ is closed to new replies.

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