Skip to content

Ask the Tutor ACCA PM

Learning curve effect june 2016 examiner report question section a

KKanan5y ago
A company has started production of a new product and has found that the first 10 units of production took 120 hours. the next 30 units produced took a further 150 hours dear tutor need help
John MoffatJohn MoffatTutor5y ago#1
The first batch of 10 units took 120 hours. When they make an extra 30 units, then will have made 40 units which is 4 batches of 10 units. The total time for 4 batches is 120 + 150 = 270 and therefore the average time per batch is 270 / 4 = 67.5 hours. Going from 1 batch to 4 batches means doubling twice. Therefore learning rate is the square root of 67.5/120 = 0.75 (or 75%)
KKanan5y ago#2
Dear Tutor let us do in this way C.P.U------------C.A.T.p.u----------C.T.Hours-----Incr.num.units-----Incr.total hours 1---------------------120-----------------120-------------------1------------------120 2---------------------??????------------------??????1-------------------????????? 4------------------------67.5----------------270------------2--------------------150 in the question section I became stuck
John MoffatJohn MoffatTutor5y ago#3
But I have explained how to do it in my previous reply and it is the same way that I do it in my lectures!
Sign in to reply to this topic.