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Answers

Example 2

Consider the following example of the time taken to make the first four units of
a new product:

Serial number of units Time to make the units
concerned (hours)

01 10 hours
02 8 hours

03 7.386 hours
04 7.014 hours

A pattern emerges when we look at the cumulative average time per unit:

Serial Time to make the Total Cumulative
number of units concerned cumulative average time
units (hours) time to make per unit
all units so far
90%
01 10 hours 10.000 10.00
90%
02 8 hours 18.000 9.000

03 7.386 hours 25.386 8.462

04 7.014 hours 32.400 8.100

The process demonstrates a 90% learning rate.

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