Estimating learning rate
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You've 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 Summary
Solution describes the steps to estimate learning rate in the given case. It also calculates the time needed to manufacture 1000th unit.
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Please refer attached file for better clarity of formulas.
a: According to the pilot run, what would you estimate the learning rate to be?
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 hours
Learning rate between second and fourth unit= ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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