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Experience Curve Questions

a. Your group of technicians has a learning curve for a new task. They are seeing a 20% reduction in time whenever the number of units doubles. If it takes 50 minutes to complete the first item, then how long will it take to complete the 5th item?

b. You have a different group of technicians with a different learning curve. Their first item took 50 minutes and you went to lunch (very long) and didn't measure their 2nd or 3rd item's time. You did get the 4th item's time which was 25 minutes. What is this group's learning curve slope parameter? For +1, does your answer look like any other "sort of" common number you know?

c. Here is a new and different type of learning curve table. What is the value of n in the equation Zu = Ku^n for this table?

Number of Units Z/K
1 1
3 0.9
9 0.81

Solution Preview

See the attached excel file for the full solution.

2a. Your group of technicians has a learning curve for a new task. They are seeing a 20% reduction in time whenever the number of units doubles. If it takes 50 minutes to complete the first item, then how long will it take to complete the 5th item?
The formula for the learning curve is
Y(x) = Kxn
Where x = unit number 5
Y(x) = time to produce xth unit
K= time to produce the first unit 50 minutes
n = ...

Solution Summary

The following posting helps with cost-benefit analysis problems.

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