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Quantitative analysis

Example 3

The first unit of a new product is expected to take 100 hours. An 80% learning
curve is known to apply.

Calculate:

(a) The average time per unit for the first 16 units

a = 100 b = –.03219 x = 16

Y = 100 × 16 –.0329

Y = 40.96 hours
(b) The average time per unit for the first 25 units

x = 25

Y = 100 × 25 –.0329

Y = 35.48 hours

(c) The time it takes to make the 20th unit

x = 20 Y = 100 × 20 –.0329 Y = 38.12 hours
Total time for 20 units = 38.12 × 20 = 762.42 hours

x = 19 Y = 100 × 19 –.0329 Y = 38.76 hours

Total time for 19 units = 38.76 × 19. = 736.50 hours

So, to make the 20th unit, 762.42 – 736.35 = 26.07 hours

Illustrations and further practice

Now try TYUs 4, 5, 6, 7 and 8 from Chapter 9.

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