Question 1

The first unit took 12 hours to produce and the learning rate is expected to be 85 percent.How long will it take to produce the tenth unit?
A) Fewer than or equal to 7.0 hours
B) Greater than 7.0 hours but fewer than or equal to 7.5
C) Greater than 7.5 but fewer than or equal to 8.0
D) Greater than 8.0

Accepted Answer

The learning rate is 85%, which means that each unit takes 85% of the time of the previous unit. So, the second unit will take 0.85 * 12 = 10.2 hours, the third unit will take 0.85 * 10.2 = 8.67 hours, and so on. The tenth unit will take 0.85^9 * 12 = 6.97 hours, which is less than or equal to 7.0 hours.

Question 2

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) Learning at a capital-intensive operation usually will be less than it is for a labor-intensive operation.
C) Learning for a simple product will usually be greater than it is for complex products.
D) Learning curves can be used only for individuals, not for the whole organization.

Accepted Answer

Learning at a capital-intensive operation is typically less than at a labor-intensive operation because there is less opportunity for workers to improve efficiency through practice and experience.

Question 3

Under learning curve theory,with a learning rate of 70 percent
A) the time to produce the second unit will be 70 percent less than the time to produce the first unit.
B) the time to produce the second unit will be 30 percent less than the time to produce the first unit.
C) the cumulative average time per unit after producing the first 100 units will be 70 percent less than the average time per unit of the first 50 units.
D) the average time per unit will be cut in half for every 70 units.

Accepted Answer

The learning rate of 70 percent means that for each unit produced, the time to produce the next unit will be reduced by 30 percent. So, the time to produce the second unit will be 30 percent less than the time to produce the first unit.

Question 4

Which one of the following statements is NOT a typical assumption related to developing learning curves?
A) The total direct labor hours needed to produce the first 100 units will be double the amount of hours needed to build the first 50 units.
B) The direct labor needed per unit will decrease at a declining rate as cumulative production increases.
C) The direct labor hours per unit will decrease according to an exponential curve as cumulative production increases.
D) The direct labor needed to produce the 50th unit will always be more than the direct labor needed to produce the 51st unit.

Accepted Answer

The answer of Which one of the following statements is...

Question 5

Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-The fifth unit of a long production run was produced in 15 hours.The process has an estimated learning rate of 90 percent.What is the lowest level of output at which the average production time per unit falls below 15 hours? Refer to the copy of Table G.1 above.
A) Fewer than or equal to 8 units
B) Greater than 8 units but fewer than or equal to 11 units
C) Greater than 11 units but fewer than or equal to 14 units
D) Greater than 14 units

Accepted Answer

Using the data from the table for 90% learning rate, we can find the cumulative average number of direct labor hours per unit after producing the 5th unit.

For the 5th unit, the time taken is 15 hours, so the cumulative number of direct labor hours for the first 5 units is 1+1+0.9154+0.88905+0.86784=4.67229 hours.

Using the conversion factor for cumulative average number of direct labor hours per unit:

$n=5$ has a conversion factor of 0.71651
$n=6$ has a conversion factor of 0.70013
$n=7$ has a conversion factor of 0.68455
$n=8$ has a conversion factor of 0.66969
$n=9$ has a conversion factor of 0.65549

Multiplying the cumulative average number of direct labor hours per unit by the cumulative number of direct labor hours for the first 5 units, we get the cumulative number of direct labor hours for each of the next units:

$n=5$ has a cumulative number of direct labor hours of 4.67229
$n=6$ has a cumulative number of direct labor hours of $4.67229 	imes 0.71651 = 3.34998$
$n=7$ has a cumulative number of direct labor hours of $4.67229 	imes 0.71651 	imes 0.70013 = 2.34627$
$n=8$ has a cumulative number of direct labor hours of $4.67229 	imes 0.71651 	imes 0.70013 	imes 0.68455 = 1.60367$
$n=9$ has a cumulative number of direct labor hours of $4.67229 	imes 0.71651 	imes 0.70013 	imes 0.68455 	imes 0.66969 = 1.05393$

We can see that the cumulative number of direct labor hours per unit falls below 15 hours for the first time at $n=14$. Therefore, the lowest level of output at which the average production time per unit falls below 15 hours is greater than 11 units but fewer than or equal to 14 units. So the answer is C.

Question 6

Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-The fourth unit took 10 hours to produce and the learning rate is expected to be 80 percent.How long will it take to produce the tenth unit? Refer to the copy of Table G.1 above.
A) Fewer than or equal to 7.0 hours
B) Greater than 7.0 hours but fewer than or equal to 8.0
C) Greater than 8.0 hours but fewer than or equal to 9.0
D) Greater than 9.0

Accepted Answer

The answer of Conversion Factors for the Cumulative Average Number...

Question 7

Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-How long will it take to make 25 units if the first one took 8 hours and there is a 90 percent learning rate? Refer to the copy of Table G.1 above.
A) Fewer than or equal to 130 hours
B) Greater than 130 hours but fewer than or equal to 140 hours
C) Greater than 140 hours but fewer than or equal to 150 hours
D) Greater than 150 hours

Accepted Answer

The answer of Conversion Factors for the Cumulative Average Number...

Question 8

The fifth unit took 10 hours to produce and the learning rate is expected to be 85 percent.How long will it take to produce the tenth unit?
A) Fewer than or equal to 8.0 hours
B) Greater than 8.0 hours but fewer than or equal to 8.5
C) Greater than 8.5 hours but fewer than or equal to 9.0
D) Greater than 9.0

Accepted Answer

The answer of The fifth unit took 10 hours to...

Question 9

Learning curves provide their greatest advantage in the early stages of new service or product production.

Accepted Answer

Learning curves demonstrate how the cost of producing a unit decreases as more units are produced due to increased efficiency and experience. This is particularly helpful in the early stages of production when there is less experience and efficiency, and therefore potential for improvement. As production continues, the learning curve becomes less steep and the cost savings per unit become less significant.

Question 10

Which one of the following statements about learning curves is FALSE?
A) The direct labor for the n+1st unit will always be less than the direct labor required for the nth unit.
B) The reduction in time will follow an exponential curve.
C) A benefit of learning curves is that they are unaffected by factors such as product complexity and the rate of capital additions.
D) The cumulative average number of direct labor hours per unit for a given product after the tenth unit with an 80 percent learning rate will be less than that for the same product with a 70 percent learning rate.

Accepted Answer

This statement is false. Learning curves can be affected by a variety of factors, including product complexity and the rate of capital additions.

Question 11

The first learning curve was developed by the aircraft industry.

Accepted Answer

The first learning curve was developed by the aircraft industry in the early 20th century, specifically by airplane manufacturer Henry Ford during World War I to measure workers' productivity in the production of military planes.

Question 12

Which one of the following statements is TRUE about the relationship between learning curves and competitive strategy?
A) Knowing where your process is on the learning curve will enable you to make frequent product modifications.
B) Firms that emphasize low cost in their competitive strategy strive to move down the learning curve by increasing volume.
C) Learning curves enable managers to project fixed manufacturing costs for future production quantities.
D) Projecting the impact of learning curves into the future is one effective way of reducing the impact of environmental uncertainty.

Accepted Answer

Learning curves describe the relationship between the cumulative production of a product and the average cost incurred per unit. Firms that emphasize low cost in their competitive strategy strive to move down the learning curve by increasing volume. This enables them to take advantage of economies of scale and reduce per-unit costs. The other options are not true about the relationship between learning curves and competitive strategy.

Question 13

The learning effect can be represented by a line called a learning curve.

Accepted Answer

The learning effect can indeed be represented by a line called a learning curve. This curve shows the relationship between experience (or time spent on a task) and performance improvement. As experience increases, performance tends to improve, typically at a decreasing rate until a plateau is reached.

Question 14

The simpler the product,the more pronounced the learning rate.

Accepted Answer

The learning rate refers to the speed at which production costs decrease as a result of gaining experience in production. It is not directly related to the simplicity of the product but rather to the cumulative production experience, process improvements, and efficiencies gained over time.

Question 15

Which one of the following is an assumption of learning curves?
A) The cumulative time of production decreases as production increases.
B) Time reduction per unit increases as cumulative production increases.
C) The same learning curve should be used when a company increases its level of automation.
D) The reduction in time per unit follows an exponential curve.

Accepted Answer

Learning curves are based on the assumption that the time required to produce each unit decreases at a decreasing rate as production increases, which is represented by an exponential curve. This reflects the idea that workers become more efficient over time, but the rate of improvement decreases.

Question 16

Which of the following statements about learning curves is generally TRUE?
A) Management can decide to achieve a certain rate of learning.
B) Learning curves were first quantified by the U.S. Postal Service.
C) Using the "doubling" model, a learning curve with a rate of learning of 70 percent means the tenth unit takes 70 percent of the time that the twentieth unit will take.
D) Learning curves are recognition of the concept that the time a task takes usually decreases with experience.

Accepted Answer

Learning curves are based on the concept that the time required to complete a task decreases as experience with the task increases. The other statements are not generally true. Management can strive for a certain rate of learning, but it is not always achievable. The concept of learning curves was first seen in the aircraft industry, not the U.S. Postal Service. The doubling model is a specific way of calculating progress on a learning curve, but a 70 percent rate of learning does not necessarily mean that the time required for the tenth unit is 70 percent of the time required for the twentieth unit.

Question 17

The first unit produced in 15 hours has an estimated learning rate of 90 percent.At what level of output will the average production time per unit fall below 11 hours?
A) Fewer than or equal to 15 units
B) Greater than 15 units but fewer than or equal to 17 units
C) Greater than 17 units but fewer than or equal to 19 units
D) Greater than 19 units

Accepted Answer

The answer of The first unit produced in 15 hours...

Question 18

The annual report for Luddite Corporation boasted of their ERP implementation and noted that,"while there were initially some growing pains,our learning rate for this system has been calculated at 100%." What are the implications of this statement?
A) Luddite Corporation is twice as fast processing transactions now.
B) Luddite Corporation is twice as slow processing transactions now.
C) Luddite Corporation processes transactions at the same rate now.
D) Luddite Corporation processes transactions instantaneously (takes zero time) now.

Accepted Answer

The statement "our learning rate for this system has been calculated at 100%" means that Luddite Corporation has fully adapted to the ERP system and is processing transactions at the same rate as before. It does not indicate that their processing speed has either doubled or become instantaneous. Therefore, option C is the correct answer.

Question 19

Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-How long will it take to make 25 units if the third one took 6.5 hours and there is a 90 percent learning rate? Refer to the copy of Table G.1 above.
A) Fewer than or equal to 130 hours
B) Greater than 130 hours but fewer than or equal to 140 hours
C) Greater than 140 hours but fewer than or equal to 150 hours
D) Greater than 150 hours

Accepted Answer

Using the table for the 90% learning rate:

For the third unit:
Cumulative average number of direct labor hours per unit = 0.72559

For the 25th unit:
Estimated number of direct labor hours needed for the 25th unit = 0.72559 * (25^0.152) = 0.72559 * 0.8236 = 0.5974

Therefore, estimated total direct labor hours needed for 25 units = 25 * 0.5974 = 14.935

The closest range provided in the answer choices is B, which is greater than 130 hours but fewer than or equal to 140 hours.

Question 20

It took 100 hours to produce the first unit and 95 hours to produce the second unit.How many hours are required to produce the eighth unit?
A) Fewer than or equal to 60 hours
B) Greater than 60 hours but fewer than or equal to 75 hours
C) Greater than 75 hours but fewer than or equal to 90 hours
D) Greater than 90 hours

Accepted Answer

The time required to produce each unit is decreasing by 5 hours with each additional unit (100, 95, 90, 85, 80, 75, 70, 65). Therefore, the eighth unit will require between 75 and 90 hours to produce, so the best choice is C.

Quiz 16: Learning Curve Analysis

The first unit took 12 hours to produce and the learning rate is expected to be 85 percent.How long will it take to produce the tenth unit?

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

Under learning curve theory,with a learning rate of 70 percent

Which one of the following statements is NOT a typical assumption related to developing learning curves?

The fifth unit took 10 hours to produce and the learning rate is expected to be 85 percent.How long will it take to produce the tenth unit?

Learning curves provide their greatest advantage in the early stages of new service or product production.

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

The first learning curve was developed by the aircraft industry.

Which one of the following statements is TRUE about the relationship between learning curves and competitive strategy?

The learning effect can be represented by a line called a learning curve.

The simpler the product,the more pronounced the learning rate.

Which one of the following is an assumption of learning curves?

Which of the following statements about learning curves is generally TRUE?

The first unit produced in 15 hours has an estimated learning rate of 90 percent.At what level of output will the average production time per unit fall below 11 hours?

The annual report for Luddite Corporation boasted of their ERP implementation and noted that,"while there were initially some growing pains,our learning rate for this system has been calculated at 100%." What are the implications of this statement?

It took 100 hours to produce the first unit and 95 hours to produce the second unit.How many hours are required to produce the eighth unit?