Question

In: Operations Management

1. The first unit took 10 hours and the fourth unit 8.1 hours. What is the...

1.

The first unit took 10 hours and the fourth unit 8.1 hours. What is the improvement rate?

2.

T1 = 1000, Learning rate = 80%.

It will take _____________ hours to make the first 15 units?

3. The learning curve may not be permanent; it can be disrupted by changes in process, personnel, or product.

TRUE OR FALSE

Solutions

Expert Solution

1)

Time taken by first unit, T1 = 10 hours

Time taken by fourth unit, T4 = 8.1 hours

Using learning curve equation, Tn = T1*r(ln(n)/ln(2)), where r is the improvement or learning rate

T4 = T1*r(ln(4)/ln(2))

T4/T1 = r(ln(4)/ln(2))

T4/T1 = r2

Improvement or learning rate, r = (T4/T1)^(1/2)

= (8.1/10)^(1/2)

= 90 %

---------------------------------------------------

2)

T1 = 1000

Learning rate , r = 80%

Time for each unit is computed by learning curve equation Tn = T1*r(ln(n)/ln(2)),

Calculations are shown in Excel as follows:

EXCEL FORMULA:

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3)

TRUE

The learning or improvement rate may be disrupted by changes in process, personnel, or product. These are subjective factors, which can influence the learning rate.


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