ACT 530-01, Fall 2020 Learning Curve Analysis How It Works? 80% Learning Curve (for example) Let's say it takes 10 direct labor hours to produce 1 unit of product, and let's assume 80% learning curve. Under 80% learning curve, when the production is doubled, which means another unit (total 2 units) is produced. The average time per unit in manufacturing the two units is 80% of the first unit (80% of 10 hours per unit = 8 hours per unit); therefore, total time to manufacture the two units is 8 hours per unit times 2 total units, which equals 16 hours total to manufacture the two units. But, remember that the first unit took 10 direct labor hours. (It doesn't change because it already took the time.) Instead, when another unit is produced (production is doubled), it gets efficient as experience is gained. So, the time it took to manufacture the second unit is just 6 hours (It takes total 16 direct labor hours for two units, the first unit takes 10 direct labor hours, leaving 6 hours for the second unit.) This is how learning curve works. Use this learning curve analysis for Assignment 6. Assignment 10 (16 Points) Name: (first name middle name, last name) Learning Curve Analysis Example: 60% Learning Curve Unies in Currem Comulative Units Average Time per Total Time for Time fue Current Awerage Time per Batch tait for Camatie Comtative tits Hatch Laiti Cart its 300 01 - 200 2001-200 121-140340-201 - 40 4-1 - 0 1+1+1-4 724-28 288-3048 453-34 1+1+1 72412 1338-3456 3456-788-576 5764-144 114.73 - 16 09.12 Every next batch (production run) doubles 'cumulative # units" from 1 to 2. from 2 to 4, from 4 to 8, and from 8 to 16. Average time per unit for cumulative #units decreases by multiplying by 6 every time production is doubled, Total time for cumulative # units" is the product of cumulative # units" and average time per unit for cumulative #units. Time for current batch' is current total time for cumulative # units' minus previous 'total time for cumulative units. Average time per unit in current batch' is time for current batch" divided by # units in current batch Fill out the tables below as in the example for 60% learning curve. 80% Learning Curve Units Current Cumulathe Units Average Timer Total Time for Time for Curral Average Time per Batch tait for Cumulative Camslative Units Bath L'itin Care Units 200 200 2001-200 1.1.-4 1+1+3+4+*- 90% Learning Curve Umies la Current Cumulative Units Average Time per Total Time for Time for Current Are The per L'nit for Cumulative Cum sative Laits Barth siti Curra 4 1.1.1-4 1.1.2.- 1+1+1+4+3 16
