Razzle Dazzle Inc. was asked to produce 6 prototype disco lighting systems for a
ID: 447189 • Letter: R
Question
Razzle Dazzle Inc. was asked to produce 6 prototype disco lighting systems for a new “That’s 70’s” theme restaurant chain. The time to produce each of the systems is shown in the following table.
System
Time (Minutes)
1
46
2
39
3
35
4
33
5
32
6
30
Estimate the learning coefficient.
-0.1394
Based on initial customer reaction, RD’s customer expects the T70’s chain to “go national” requiring a total of 200 systems to be delivered. How much time would you expect the 200th unit to take to produce?
Sales wants a time estimate for a quote for the remaining 194 units. What is the total time for these units and what is the average time for the next 194 units?
System
Time (Minutes)
1
46
2
39
3
35
4
33
5
32
6
30
Explanation / Answer
According to the theory time per unit decreases at a constant rate each time the output doubles (e.g unit 1 to 2, 2 to 4, and 3 to 6) The ratio of these observed times will give us an approx. rate. Thus
Unit 2/Unit 1 = 39/46 = 0.848
Unit 4/Unit 2 = 33/39 = 0.846
Unit 6/ Unit 3 = 30/35 = 0.857
Based on the above ratios it is clear the learning rate is 85 %.
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