Data for a new product that is very labor intensive introduced by Hicks Brothers

Question

Data for a new product that is very labor intensive introduced by Hicks Brothers in the operation in Hendersonville, TN is given below. The average labor cost including overhead expenses is about $20 per hour. Time for the second unit = 9 hours Time for the third unit = 8.462 hours. The learning curve percentage for this operation is ________.

A 75% B 85% C 90% D 95%

What is the cumulative (i.e. total) time for 200 units made? Assume the exponent, b= -0.1521.

A 1049.35 B 969.12 C 1121.15 D 761.84

Explanation / Answer

b=-0.1521

p= learning curve percentage

b = ln(p)/ln(2)

so ln(p) = -0.1521*0.6931 = -0.1054 so p=0.9 or 90%

b) T2 =T1*2^b i.e. 9 = T1 * 2^-0.1521 so T1 = 10

T1 = 10*1^-0.1521

T2 = 10*2^-0.1521

T3 = 10*3^-0.1521

So Cumulative time = T1+T2+T3+...........+T199+T22

So Ans is 1049.35

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