Deck 25: Learning Curves

Question 1

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

Answer 1

True

Question 2

The logarithmic approach to learning curve calculations allows us to determine the hours required for any unit.

Answer 2

True

Question 3

A firm that successfully pursues a steeper-than-industry-average learning curve and manages costs down may still fail if, by underestimating a strong competitor, it fails to gain the added volume necessary for the learning curve to exist.

Answer 3

True

Question 4

If the first unit in a series of units takes 200 days to complete, and the learning curve is 80%, then the second unit will take 160 days.

Question 5

Learning curves can be used to establish budgets.

Question 6

A project manager bases his time and labor estimates on a learning curve of 86%. The actual learning curve turns out to be 89%. The manager, because of the decreased learning, will complete his project in more time and with more labor use.

Question 7

In the logarithmic approach formula to compute the time for the Nth unit, TN = T₁Nᵇ, the exponent b is the learning curve rate L, expressed as a decimal.

Question 8

Learning curves can only be applied to labor.

Question 9

Experience curves are the opposite of learning curves-as one rises, the other falls.

Question 10

Reevaluation of learning curves is inappropriate.

Question 11

Experience curves may be valid for industrial applications, but have no role in services such as health care procedures.

Question 12

A 90% learning curve implies that each time the production volume is doubled the direct time per unit is reduced to 90% of its previous value.

Question 13

An 80% learning curve means that with each unit increase in production, labor requirements fall by 20%.

Question 14

The arithmetic approach (or successive doubling approach) to learning curve calculations allows us to determine the hours required for any unit.

Question 15

If the learning curve for a process is 100 percent, then each unit in a series of units will have the same labor requirements.

Question 16

The earliest application of learning curves appears in the work of architect Frank Lloyd Wright.

Question 17

On an ordinary graph, unit times decrease at a decreasing rate, but on a log-log graph, the learning "curve" appears as a straight line.

Question 18

The learning curve in the steel industry and the learning curve in heart surgery have both been estimated at 79 percent.

Question 19

Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated.

Question 20

The learning curve coefficient approach may be simpler to use than the logarithmic approach, but it requires the presence of a table of learning coefficients.

Question 21

The first unit of a product took 832 hours to build, and the learning curve is 75%. How long will it take to make the 30th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

A) less than 200 hours
B) from 200 to 225 hours
C) from 225 to 250 hours
D) from 2501 to 275 hours
E) 275 or more hours

Question 22

A learning curve

A) plots man-hours per dollar versus time
B) is mathematically described by a parabola
C) should be plotted on polar coordinate graph paper
D) is based on the premise that organizations learn from experience
E) follows a normal distribution

Question 23

The learning curve for a product is 80 percent. The first unit took 100 hours to complete. The manufacturer wants to determine how many hours the fifth unit will take by using the logarithmic method. The coefficient b for that calculation is approximately

A) -.0969
B) -.2231
C) -.3219
D) )80
E) 1.903

Question 24

The learning curve for a product is 90 percent. The first unit took 10 hours to complete. The manufacturer wants to determine how many hours the fourth unit will take by using the logarithmic method. The coefficient b for that calculation is approximately

A) -.1053
B) -.1520
C) -.3219
D) )6931
E) 8.1

Question 25

The first unit of a product took 832 hours to build, and the learning curve is 75%. How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

A) less than 250 hours
B) from 251 to 275 hours
C) from 276 to 300 hours
D) from 301 to 325 hours
E) 325 or more hours

Question 26

Which one of the following statements about learning curves is true?

A) A learning curve assumes that the direct labor requirements per unit will DECREASE at an INCREASING rate as cumulative production increases.
B) A larger learning curve rate implies faster (greater) learning.
C) A learning curve graph usually follows a negative exponential curve.
D) Learning curves can be used only for individuals, not for the whole organization
E) None of the above is true.

Question 27

Which of the following best conveys the essence of learning curves?

A) As the number of repetitions increases, time per unit increases.
B) As the number of repetitions decreases, time per unit increases.
C) As the number of repetitions increases, time per unit decreases.
D) As the number of repetitions increases, time per unit remains constant.
E) As the number of repetitions increases, time per unit doubles.

Question 28

A 100% learning curve implies that

A) learning is taking place for all products and workers
B) learning is taking place at the best possible level
C) a 100% reduction in the direct labor time takes place each time the production is doubled
D) no learning is taking place
E) None of the above is true.

Question 29

The learning curve rate is

A) the percentage of time it will take to make each unit when the production rate doubles
B) the log-log of the annual rate change divided by the average unit cost
C) always based on constant value dollars
D) only considered valid after one year of data is accumulated
E) always equal to at least 75%

Question 30

Which of the following statements regarding the usefulness of learning curves is False?

A) An external use of learning curves is in supply-chain negotiations.
B) A strategic use of learning curves is in evaluating company and industry performance.
C) An internal use of learning curves is in establishing costs.
D) An internal use of learning curves is in labor forecasting.
E) A strategic use of learning curves is in establishing budgets.

Question 31

The fundamental premise underlying learning curve analysis is that

A) tasks can be easily learned in organizations
B) organizations and people become better at their tasks as the tasks are repeated
C) learning takes place when people in organizations change
D) total labor costs decrease as the number of production units increases
E) doubling output cuts labor requirements per unit in half

Question 32

If it took 1000 hours to produce the first unit of a product, and the learning curve is 70%, how long will it take to produce units 26 through 50?

A) 12,307 hours
B) 8,404 hours
C) 134 hours
D) 3,903 hours
E) none of the above

Question 33

The fact that human activities typically improve when they are done on a repetitive basis is described by a

A) normal distribution curve
B) binomial distribution curve
C) learning curve
D) Poisson distribution curve
E) repetition curve

Question 34

Learning curves can be applied to a variety of purposes internal to a firm, including

A) labor forecasting
B) scheduling
C) establishing costs
D) establishing budgets
E) all of these

Question 35

Which of the following statements comparing learning curve rates (L) to improvement rates is true?

A) The learning rate is the same as the improvement rate.
B) The learning rate is a decimal value while the improvement rate is a percentage.
C) A 90 percent learning curve corresponds to a 10 percent rate of improvement.
D) Learning rates apply to labor only, while improvement rates apply to all resources.
E) "Learning rates" is American usage, while "improvement rates" is British.

Question 36

Learning curves are

A) the same for all products but different for different organizations
B) the same for all organizations but different for different products
C) the same for all organizations and all products
D) different for different organizations and different products
E) appropriate in services but not in manufacturing

Question 37

Which of the following statements is most appropriate with respect to a 70% learning curve?

A) There will be a 70% decrease in direct labor per unit each time the production volume doubles.
B) Each successive unit of production will take 70% of the direct labor of the previous unit.
C) There will be a 30% decrease in direct labor per unit each time production volume doubles.
D) Thirty percent of the production will be defective until full learning takes place.
E) None of the above is true.

Question 38

Learning curves have a variety of purposes, which can be placed into these broad categories:

A) services, industry, and military
B) internal, external, and strategic
C) wholesale, distribution, and retail
D) arithmetic, logarithmic, and learning coefficients
E) positive learning, neutral learning, and negative learning

Question 39

Learning curves (or experience curves) were first applied to industry by __________ who was studying __________.

A) Frank Lloyd Wright; architecture
B) Frank Gilbreth; worker efficiency
C) T. P. Wright; air frame manufacture
D) Lilian Gilbreth; factory efficiency
E) Frederick W. Taylor; scientific management

Question 40

A job with a 90% learning curve required 20 hours for the initial unit. The fourth unit should require approximately how many hours?

A) 16.0
B) 16.2
C) 18.0
D) 20.0
E) 54.2

Question 41

The first unit of a product took 50 hours to build, and the learning curve is 85%. How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

A) less than 24 hours
B) from 25 to 30 hours
C) from 30 to 35 hours
D) from 35 to 40 hours
E) more than 40 hours

Question 42

The first product took 10 hours to build and the learning curve is estimated to be 90%. How long with it take to make the fourth unit?

A) 10 hours
B) 9 hours
C) 8.1 hours
D) 7.5 hours
E) none of the above

Question 43

The first unit of a product took 1,000 hours to build and the learning curve is 85%. How long will it take to make the first 5 units?

A) less than 4,005 hours
B) from 4,005 to 4,015 hours
C) from 4,015 to 4,025 hours
D) from 4,025 to 4,035 hours
E) from 4,035 to 4,045 hours

Question 44

The first unit of a product took 832 hours to build, and the learning curve is 90%. How long will it take to make the 25th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

A) time ≤ 500 hours
B) 500 < time ≤ 525
C) 525 < time ≤ 530
D) 530 < time ≤ 550
E) time > 550

Question 45

A defense contractor has just started producing turbines for a new government contract. The first turbine took 7000 hours to produce. If the learning curve is 90%, how long will it take to produce the 10th turbine? (Use at least three decimals in the exponent if you use the logarithmic approach.)

A) less than 4800 hours
B) from 4800 to 4900 hours
C) from 4900 to 5000 hours
D) from 5000 to 5100 hours
E) over 5100 hours

Question 46

The first unit took 10 hours and the eighth unit took 1.25 hours. What is the learning curve?

A) 50%
B) 90%
C) 80%
D) 12.5%
E) none of the above

Question 47

The first unit took 10 hours and the fourth unit took 8.1 hours to complete. What is the learning curve?

A) 100%
B) 99%
C) 95%
D) 90%
E) 80%

Question 48

Suppose that there are two products with the same first product time. However, product A has an improvement rate of 10% while product B has an improvement rate of 20%. How much longer will it take to make the 10ᵗʰ unit of product A compared to product B?

A) Both will have the identical time for the 10ᵗʰ unit.
B) A will take 48% more time.
C) A will take 48% less time.
D) A will take 23% less time.
E) none of the above

Question 49

It took 60 hours to make the first unit of a product. After the second and third units were made, the learning curve was estimated to be 80%. At $10 per hour, estimate the labor bill for the fourth unit. (Use at least three decimals in the exponent if you use the logarithmic approach.)

A) $400 or less
B) from $400 to $420
C) from $420 to $440
D) from $1800 to $2000
E) over $2000

Question 50

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

A) 99%
B) 95%
C) 90%
D) 15%
E) none of the above

Question 51

A defense contractor has just started producing engines for a new government contract. The first engine took 800 hours to produce. If the learning curve is 80%, how long will it take to produce the first 20 engines?

A) less than or equal to 1000 hours
B) from 1000 to 8000 hours
C) from 8000 to 8500 hours
D) from 8500 to 10000 hours
E) 10,000 or more hours

Question 52

The first unit of production took 10 hours with an 80% learning curve. How long will it take to complete both the first and second units?

A) 10 hours
B) 8 hours
C) 18 hours
D) none of the above
E) There is not enough information to solve the problem.

Question 53

The second unit of production took 9 hours. If the learning curve is 90% how long did the first unit take?

A) 9 hours
B) 10 hours
C) 8.1 hours
D) 8.5 hours
E) none of the above

Question 54

The first unit of a product took 900 hours to build and the learning curve is 90%. How long will it take to make the first 3 units?

A) less than or equal to 2,470 hours
B) from 2,470 to 2,472 hours
C) from 2,472 to 2,475 hours
D) from 2,475 to 2,478 hours
E) from 2,478 to 2,481 hours

Question 55

It took 18 hours to complete the first two products with an 80% learning curve. How long did the second product take?

A) 8 hours
B) 10 hours
C) 18 hours
D) 8.1 hours
E) none of the above

Question 56

The first unit took 10 hours and the third unit took 5.7 hours. What is the improvement rate?

A) 70%
B) 30%
C) 50%
D) 90%
E) 10%

Question 57

A manager is trying to estimate the appropriate learning curve for a certain job. The manager notes that the first four units had a total time of 30 minutes. Which learning curve would yield approximately this result if the first unit took 9 minutes?

A) 0.70
B) 0.75
C) 0.80
D) 0.85
E) 0.90

Question 58

A company negotiates a price for two aircraft that includes a reduction in labor on the second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100 hours. If the improvement rate changes to 20%, how will the total time to complete both aircraft change?

A) no change
B) -10 hours
C) + 10 hours
D) -50 hours
E) + 50 hours

Question 59

The first unit of a product took 50 hours to build, and the learning curve is 80%. How long will it take to make the third unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

A) under 30 hours
B) about 32 hours
C) about 35 hours
D) about 50 hours
E) about 75 hours

Question 60

The first unit of a product took 80 work days. The learning curve is estimated to be 90%. The time for the fourth unit will be about __________ work days and the time for the first four units will be about __________ work days.

A) 51; 250
B) 250; 51
C) 65; 285
D) 51; cannot be determined
E) 65; cannot be determined

Question 61

Why do different organizations have different learning curves?

Question 62

The __________ is the simplest approach to learning curve problems.

Question 63

What problems in scheduling can arise if adjustments for learning curve effects in operations are not made?

Question 64

The earliest industrial application of learning curves came from a report by __________.

Question 65

If the learning rate for a process is 80 percent, that same process has a 20 percent __________.

Question 66

Which of the following is False regarding learning curves?

A) Learning curves differ from company to company.
B) Learning curves can always be used for indirect labor.
C) Changes in personnel can change the learning curve.
D) The learning curve may spike for a short time even if it is going to drop in the long run.
E) All of the above are False.

Question 67

"By tradition, learning rates are defined in terms of the complements of their improvement rates." Explain.

Question 68

In addition to labor, to which other variables have learning curves been applied?

Question 69

Which of the following is a limitation of the use of learning curves?

A) Change in personnel, design, or procedure leave the learning curve unchanged.
B) Learning curves are applicable to services as well as to manufacturing.
C) The culture of the workplace may alter the learning curve.
D) Direct labor and indirect labor follow the same learning curves.
E) Applications of learning curves are of tactical, not strategic, importance.

Question 70

Which of the following is representative of a firm pursuing a learning curve strategy?

A) aggressive pricing policy
B) focus on productivity improvement
C) building on shared experience
D) keeping capacity growing ahead of demand
E) all of the above

Question 71

Describe the earliest application of learning curve concepts to industry.

Question 72

When learning curves are plotted on __________ scales, the "curves" become straight lines.

Question 73

Failure to consider the effects of learning can lead to __________ of labor needs.

Question 74

Companies pursuing a learning curve strategy must increase

A) employee training
B) costs
C) quality
D) volume
E) all of the above

Question 75

__________ are based on the premise that people and organizations get better at their tasks as the tasks are repeated.

Question 76

When comparing a 70% learning curve versus a 90% learning curve, which one results in a more rapid reduction in labor requirements?
Why?

Question 77

What is the basic premise underlying the learning curve?

Question 78

Which one of the following courses of actions would not be taken by a firm wanting to pursue a learning curve steeper than the industry average?

A) following an aggressive pricing policy
B) focusing on continuing cost reduction
C) keeping capacity equal to demand to control costs
D) focusing on productivity improvement
E) building on shared experience

Question 79

Which of the following is not a limitation of the use of learning curves?

A) Any change in personnel, design, or procedure can alter the learning curve.
B) Time measurements on early units completed must be accurate.
C) The culture of the workplace may alter the learning curve.
D) Direct labor and indirect labor may not follow the same learning curves.
E) All of these are limitations of learning curves.

Question 80

To use the table of learning curve coefficients, you must specify __________ and __________.