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p5 course notes chapter 4 example 1

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 14 years ago by mohamedhassan.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • April 7, 2011 at 10:31 am #48026
    leihong8
    Member
    • Topics: 6
    • Replies: 4
    • ☆

    unit 1, average time is 100
    unit 2, averge time is 75

    I 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? thanks

    April 7, 2011 at 11:36 am #80678
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    The 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 #80679
    leihong8
    Member
    • Topics: 6
    • Replies: 4
    • ☆

    thank you for your help.

    April 8, 2011 at 8:17 am #80680
    catalina
    Member
    • Topics: 3
    • Replies: 21
    • ☆

    John 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 #80681
    mohamedhassan
    Member
    • Topics: 1
    • Replies: 7
    • ☆

    Hi 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

    April 8, 2011 at 8:32 pm #80682
    mohamedhassan
    Member
    • Topics: 1
    • Replies: 7
    • ☆

    Hi 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

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