Asked by Kevin Patel on Apr 28, 2024
Verified
Truweight Ltd has introduced a new line of weight machines for the catering industry which has required additional steps in the production line. During the first two months of production the labour time for the weight machines was as follows:
The learning curve percentage is
A) 10 per cent.
B) 90 per cent.
C) 100 per cent.
D) 110 per cent.
Learning Curve Percentage
The rate at which productivity improves as a result of increased efficiency and skill gained from repeated tasks.
- Elucidate the influence of the learning curve on forecasting expenses.
Verified Answer
HP
Hriday PatelApr 29, 2024
Final Answer :
B
Explanation :
The learning curve percentage can be calculated by finding the slope of the line graphed in a log-log plot of the time per unit versus the cumulative production. Using the data given, the log of time per unit for each subsequent doubling of production is increasing by approximately 0.15 (log(12)/log(6) ≈ 0.15), which translates to a learning curve percentage of 90%. Therefore, choice B is the correct answer.
Learning Objectives
- Elucidate the influence of the learning curve on forecasting expenses.
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