Under the cumulative average-time learning model, every time the total number of units produced doubles, the estimated cumulative (total) production time for all units produced decreases to a percentage of what it would have been if no learning had taken place. If no learning had taken place, the first four units of the new product would require 400 hours, since the first two units required 200 hours. With a 90% learning curve, the estimated total production time required to produce 400 units will be 90% of what it would have been if no learning had taken place, or 400 × .90, which is 360.
This is the 200 hours required for the first two units plus 90% of 200 hours for the second two units. This is not the way the cumulative average-time learning model works. Under the cumulative average-time learning model, every time the total number of units produced doubles, the estimated cumulative (total) production time for all units produced decreases to a percentage of what it would have been if no learning had taken place.
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Under the cumulative average-time learning model, every time the total number of units produced doubles, the estimated cumulative (total) production time for all units produced decreases to a percentage of what it would have been if no learning had taken place. If no learning had taken place, the first four units of the new product would require 400 hours, since the first two units required 200 hours. But since Langley is using a 90% learning curve, the estimated total time required to manufacture the first four units will be less than 400 hours.
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