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Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › p5 course notes chapter 4 example 1
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
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)
thank you for your help.
John Moffat,thanks, I have also learnt from your explanation,I was behind in learning curves. Leihong8, thanks for asking this question.
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
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
