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    Calculating Learning Rate

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    5. You have just completed a pilot run of 10 units of a major product and found the processing time for each unit was as follows:

    UNIT NUMBER TIME (HOURS )
    1 970
    2 640
    3 420
    4 380
    5 320
    6 250
    7 220
    8 207
    9 190
    10 190

    a. According to the pilot run, what would you estimate the learning rate to be?

    b. Based on a , how much time would it take for the next 190 units, assuming no loss of learning?

    c. How much time would it take to make the 1,000th unit?

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    Solution Preview

    a. According to the pilot run, what would you estimate the learning rate to be?

    Learning rate can be determined by calculating learning rate at each doubling of output.

    Time taken to produce first unit = 970 hours
    Time taken to produce second unit = 640 hours
    Learning rate between first and second unit= 640/970= 65.98%

    Time taken to produce fourth unit = 380 ...

    Solution Summary

    Solution describes the steps to calculate learning rate. It also calculates time required to process next 190 units without loss of learning. 232 words with calculations fully displayed.

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