Question

Your boss formed a new company for making pre-stressed concrete structures for bridge segments. She expects to have an 85% learning curve, and the first 100 structures took 220 labor hours. Construct a table showing the estimated labor hours by 100 units constructed needed to construct the first 1,000 pre-stressed concrete structures. Include columns for cumulative total and cumulative average in your table.​

Answer 1

85% Learning Curve:

This means Cumulative Average Production time per unit will be reduced by (100-85) =15% as the cumulative production quantity doubles

A

B

C=B/A

Cumulative

Cumulative

Production

Average

Cumulative Quantity

Time(labor hour)

Time per unit

100

220

2.2

200

374

1.87

(0.85*2.2)

400

635.8

1.5895

(0.85*1.87)

800

1080.86

1.351075

(0.85*1.6895)

A

Production Time For Cumulative quantity of 800

1080.86

B

Time Required for additional 200 quantity

270.215

(200*1.351075)

C=A+B

Time Required for 1000 quantity

1351.075

(It is assumed there is no change in average time per unit for production of additional 200 units beyond 800 cumulative quantity

Because the range is much lower than cumulative quantity of(800*2)=1600

Labor hours required for 1000 quantity

1351

Average labor hour per unit

1.351