Mazoo's Learning Blog

Learning curves reflect the increased rate at which people perform task as they gain experience. Ordinarily, the curve is expressed as percentage of reduced time to complete a task for each doubling of cumulative production.

Common assumption is that the cumulative average time per unit is reduced by a certain percentage each time production doubles.

If the average time for 80 units is 56 hours per unit, the total time is 4 480. At an average time of 42 hours for 160 units, the total time is 6 720 hours. Hence the additional 80 units (from 81 to 160) required only 2 240 hours, or 2 240/80 = 28 hours per unit.

From the table above we are able to get learning curve formula. It shows how total time depends on total output:

The alternative assumption is that incremental unit time (time to produce the last unit) is reduced when production doubled. But it occurs more rarely than the common assumption in the test prep questions.

am asking about more example of learning curve

what the consept of learning curve

Learning curve - a graphic representation of the fact that, in repetitive activities, there is a constant and predictable rate of productivity improvement each time the number of units produced is doubled. Therefore, the learning curve is function that shows how labor-hours per unit decline as units of production increase.

There are two assumptions to estimate declining rate of labor-hours per unit (and hence labor-cost per unit):

1. Cumulative average time per unit is reduced each time production doubled by a certain percentage.
If it takes 100 hours to produce 1 unit, then (for 80% learning curve) cumulative average time per unit for producing 2 units is 100-20%=80 hours. Then total time to produce 2 units is 80*2=160 hours. Hence, the second unit requires only 160-100=60 hours.

Example 1:
Units         Total labor cost
10                 $120
20                 $192

Let's find the learning rate:
Cumulative average cost per unit for 10 units is 120/10=12;
Cumulative average cost per unit for 20 units is 192/20=9.6;

Let learning rate is x:
12*x=9.6
x=0.8 (or 80%)
Hence, this company experienced 80% learning curve according first assumption.

2. Incremental unit time (time to produce the last unit) is reduced by a certain percentage when production doubled. If it takes 100 hours to produce 1 unit, then (for 80% learning curve) the time to produce the second unit is 100-20%=80 hours. Then total time to produce 2 units is 100+80=180 hours.

Example 2:
Units         Total labor cost
10                 $120
20                 $192

Let's find the learning rate:

Labor cost to produce the first bid of 10 units is 120;
Labor cost to produce the second bid of 10 units is 192-120=72;
Let learning rate is x:
120*x=72
x=0.6 (60%)
Hence, this company experienced 60% learning curve according second assumption.

Can somebody help me to solve the following:

Lake Corporation manufactures specialty components for the electronics industry in a highly labor intensive environment. Arc Electronics has asked Lake to bid on a component that Lake made for Arc last month. The previous order was for 80 units and required 120 hours of direct labor to manufacture. Arc would now like 240 additional components. Lake experiences an 80 percent learning curve on all of its jobs. The number of direct labor hours needed for Lake to complete the 240 additional components is
A. 187.2.
B. 256.0.
C. 288.0.
D. 307.2.

for Samira question I think the correct answer would be 288