Example Learning Curve

Q. 1. The pilot run for the production of 10 units of a major product gave
the results as given in the following table:

Unit Number Production Time (Hours)

I 970
II 640
III 420
IV 380
V 320
VI 250
VII 220
VIII 207
IX 190
X 190

(a) According to the pilot run, what would your estimate of the
learning rate?
(b) How much time would it take to make the 1,000th unit?

(c) Based on your answer in (a), how much time would it take for the
next 190 units, assuming no loss of learning?

Q. 2. A computer company has just started its operations of assembling

the computers. The assembly of computers is having a similar pattern and
sequence of operations even with the diversified configurations. The
company has analyzed the time taken to assemble the computers and
believes that it is having a learning rate of 90%. The 200 th unit required
3.0 labour hours for the assembly.

(a). Estimate the time required to assemble the 400th unit

(b). Estimate the time required to assemble the 1000th unit

(c). List the assumptions, if any, made in answering the above questions.