Forums › ACCA Forums › ACCA PM Performance Management Forums › Calculating Learning rate
- This topic has 3 replies, 3 voices, and was last updated 7 years ago by emilyphoenix.
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- December 6, 2016 at 7:54 pm #354719
Total time for first 16 batches of units was 8500 hours. What was the actual learning rate closest to(to the nearest %)
** How to relate r4
May 31, 2017 at 5:26 pm #389276To answer this question can you provide time taken to make the first batch
June 1, 2017 at 2:41 pm #389469How you can use r*4
##The major rule to master is the learning rate comes into play when production is doubled
##The Average time to make a batch unit or whatever is reduced by learning rate when production doubles
Therefore this is how production doubles
1st batch
2nd batch
4th batch
8th batch
16th batch
You did not mention what the time taken to make first batch was so l will use x
Therefore
First batch Average time = xhrs/1unit
Second Batch Average time =xhrs multiplied by learning rate (r)
4th Batch Average time = xhrs multiplied by learning rate (r)^2(r^2 means r to the power2)
8th Batch Average time = xhrs multiplied by learning rate (r)^3
16th Batch Average time =xhrs multiplied by learning rate (r)^4
From the question total time to make 16 batches is 8500hrs
So average time is 8500hrs/16 batches=531.25
Using our formulae of the 16th batch average time is equal to
xhrs (r)^4
and we know that our average time for the 16th batch is 531.25
hence we equate the two
so xhrs (r)^4 =531.25
June 5, 2017 at 10:34 am #390477assuming that the first batch takes a total of 750 hrs
your answer would be: 8500= 16 x 750 r4
: 8500/ (16 x750) = r4
:r= 91.7% or 92%r4 is computed as [4[2ndF] yx] depending on your calculator.
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