Answer (B) is correct . The learning curve reflects the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. Ordinarily, the curve is expressed in a percentage of reduced time to complete a task for each doubling of cumulative production. One common assumption in a learning curve model is that the cumulative average time (and labor cost) per unit is reduced by a certain percentage each time production doubles. Thus, an 80% learning curve indicates that a doubling of production will reduce the cumulative average unit completion time by 20%. For example, if the first unit required 50 hours to complete, the average completion time after two units will be 40?hours (50 hours ¡Á 80%). If production is again doubled (to four units), the average completion time will be 32 hours (40?hours ¡Á 80%). When production is doubled again to eight units, the cumulative average completion time will be 25.6 hours (32?hours ¡Á 80%).<
Answer (A) is incorrect because The figure of 20.0 hours assumes three successive reductions of 10 hours [50 – (50 × 80%)] each.
Answer (C) is incorrect because The average completion time after four units have been produced is 32 hours.
Answer (D) is incorrect because The average time after two units have been produced is 40 hours.
|
