Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › p5 course notes chapter 4 example 1
- This topic has 5 replies, 4 voices, and was last updated 13 years ago by mohamedhassan.
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- April 7, 2011 at 10:31 am #48026
unit 1, average time is 100
unit 2, averge time is 75I thought with 75% learning curve, unit3, average time should be 56.25. Why unit 4, the average time turn out to be 56.25.
Does anyone know why? thanksApril 7, 2011 at 11:36 am #80678The learning curve rule is that every time production doubles, the average time per unit falls to the percentage of what it was before.
So…in the example, if we make 1 unit then the time is 100 hours and so the average time is 100 hours per unit.
If we double production by making a second unit (so now 2 in total) then the average time per unit becomes 75% of 100 hours = 75 hours.
If we double production again by making 2 more units (so now 4 in total) then the average time per unit becomes 75% of 75 hours = 56.25 hours.
(This is the average time per unit when we make 4 – not the time for any one of the units)
April 8, 2011 at 7:56 am #80679thank you for your help.
April 8, 2011 at 8:17 am #80680John Moffat,thanks, I have also learnt from your explanation,I was behind in learning curves. Leihong8, thanks for asking this question.
April 8, 2011 at 8:32 pm #80681Hi All
I need to join the group so could someone tell me the time table for P5 and which chapter the group is doing?
Please see below my email
faisal661@hotmail.comApril 8, 2011 at 8:32 pm #80682Hi All
I need to join the group so could someone tell me the time table for P5 and which chapter the group is doing?
Please see below my email
faisal661@hotmail.com - AuthorPosts
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