Asked by Jared Allen on May 04, 2024
Verified
Your firm has expertise with a special type of hand-finished furniture. The learning rate is known to be 82%. If the first piece of furniture took 6 hours, estimate how long it will take to complete the third unit.
Learning Rate
The speed at which learning is acquired, often used in the context of the decreasing cost of production as experience increases.
- Determine learning rates and project upcoming productivity or labor demands by analyzing learning curves.
- Utilize the concepts of learning curve theory in practical situations, focusing on productions that are labor-intensive.
Verified Answer
ML
Manish LimbuMay 06, 2024
Final Answer :
Using the arithmetic approach, the second unit will take 0.82 ∗ 6 = 4.92 hours and the fourth unit will take 0.82 ∗ 0.82 ∗ 6 = 4.03 hours. The third unit must take an amount of labour between these two values, but not exactly halfway. There is more absolute improvement from unit 2 to unit 3 than from unit 3 to unit 4. A reasonable estimate would be about 4.4 or 4.5 hours (the answer from Excel OM is 4.38 hours).
Learning Objectives
- Determine learning rates and project upcoming productivity or labor demands by analyzing learning curves.
- Utilize the concepts of learning curve theory in practical situations, focusing on productions that are labor-intensive.