Experience Curve
Experience Curve
Experience Curve
promise to be many unit. If management defines the learning period as the time it takes to reduce the
per unit assembly time by 20%, how many hours of continuous production will it take before the
company emerges from the learning period
Lisa observes the members of her department and develops a learning curve that calculates
b=log(r)/log(3) instead of the traditional way. Which statement below is best?
If both departments have a learning rate of 90% and take 10 hours for the first unit, the time
required for the 27th unit made by Lisa’s department is the same as the 8th unit produced by a
department that learns in a more traditional fashion.a
This method is not valid since learning curves traditionally work with a log(2) in the
denominator.
If both departments take 10 hours for the first unit, the time required for the 30th unit
produced by Lisa’s department is lower than the time required by other departments.
A builder planned to complete four houses of similar design in a small community. The initial house
requires 4,000 hours to complete. The experienced crew has a learning rate of 80 percent. What is the
estimated labor cost for the fourth house, assuming an average labor rate of $18.00 per hour? (Use at
least three decimal places in the exponent if the logarithmic model is used.)
$35,000 – $40,000
$30,000 – $35,000
$45,000 – $50,000.
$40,000 – $45,000
End of Question 5
Question 6.
A builder requires 4,000 hours to complete his first house. The experienced crew has a learning rate of
80 percent. How much time (hours) would be required to complete the tenth house? (Use at least three
decimal places in the exponent if the logarithmic model is used.)
1,900 – 2,000.
2,000 – 2,100
2,100 – 2,200
2,200 – 2,300
End of Question 6
Question 7.
A builder requires 4,000 hours to complete his first house. The experienced crew has a learning rate of
80 percent. What is the total time (hours) required to complete the first four houses? (Use at least three
decimal places in the exponent if the logarithmic model is used.)
Your Answer:
If the third unit of a series of eight units took 13 hours to produce, how long will it take to produce the
fifth unit if an 85% learning curve is in effect?
Correct Answer:
11.5 hours
Worker 1 has an 80% learning curve and assembles his first item in 12 hours. Worker 2 has a 90%
learning curve and assembles his first item in 8 hours. If they both continue assembling units and the
learning curve is not disrupted, at what number unit will Worker 1 be faster?
Your Answer:
An industrial engineer uses a stopwatch that is 10% slow to time workers doing a basic assembly task.
Based on these times, he determines their learning curve. Which of the following statements best
describes this situation?
Your Answer:
A schedule to build 25 units based on these calculations will have 10% too much time built into it.