Deck 21: Learning Curves

Question 1

The fact that human activities typically improve when they are done on a repetitive basis is described by a:

A) normal distribution curve.
B) binomial distribution curve.
C) learning curve.
D) Poisson distribution curve.
E) repetition curve.

Answer 1

C

Question 2

An 80% learning curve means that with each unit increase in production, labor requirements fall by 20%.

Answer 2

False

Question 3

Experience curves are the opposite of learning curves-as one rises, the other falls.

Answer 3

False

Question 4

If the learning curve for a process is 100 percent, then each unit in a series of units will have the same labor requirements.

Question 5

A job with a 90% learning curve required 20 hours for the initial unit. The eighth unit should require approximately how many hours?

A) 14.6
B) 16.2
C) 18.0
D) 20.0
E) 54.2

Question 6

A job requires 20 hours for the initial unit and 12.8 hours for the fourth unit. What is the learning rate?

A) 70%
B) 75%
C) 80%
D) 85%
E) 90%

Question 7

A 100% learning curve implies that:

A) learning is taking place for all products and workers.
B) learning is taking place at the best possible level.
C) a 100% reduction in the direct labor time takes place each time the production is doubled.
D) no learning is taking place.
E) None of these is true.

Question 8

Learning curves can only be applied to labor.

Question 9

Experience curves may be valid for industrial applications, but have no role in services such as health care procedures.

Question 10

A learning curve:

A) plots man-hours per dollar versus time.
B) is mathematically described by a parabola.
C) should be plotted on polar coordinate graph paper.
D) is based on the premise that organizations learn from experience.
E) follows a normal distribution.

Question 11

Which of the following BEST conveys the essence of learning curves?

A) As the number of repetitions increases, time per unit increases.
B) As the number of repetitions decreases, time per unit increases.
C) As the number of repetitions increases, time per unit decreases.
D) As the number of repetitions increases, time per unit remains constant.
E) As the number of repetitions increases, time per unit doubles.

Question 12

Which one of the following statements about learning curves is TRUE?

A) A learning curve assumes that the direct labor requirements per unit will DECREASE at an INCREASING rate as cumulative production increases.
B) A larger learning curve rate implies faster (greater) learning.
C) A learning curve graph usually follows a negative exponential curve.
D) Learning curves can be used only for individuals, not for the whole organization.
E) The formula describing the learning curve principle of doubling is computed differently when computing unit cost as opposed to unit time.

Question 13

A 90% learning curve implies that each time the production volume is doubled, the direct time per unit is reduced to 90% of its previous value.

Question 14

Learning curves (or experience curves) were first applied to industry by ________ who was studying ________.

A) Frank Lloyd Wright; architecture
B) Frank Gilbreth; worker efficiency
C) T. P. Wright; air frame manufacture
D) Lilian Gilbreth; factory efficiency
E) Frederick W. Taylor; scientific management

Question 15

The learning curve rate is:

A) the percentage of time it will take to make each unit when the production rate doubles.
B) the log-log of the annual rate change divided by the average unit cost.
C) always based on constant value dollars.
D) only considered valid after one year of data is accumulated.
E) equal to at least 75%.

Question 16

If the first unit in a series of units takes 200 days to complete, and the learning curve is 80%, then the second unit will take 160 days.

Question 17

The fundamental premise underlying learning curve analysis is that:

A) tasks can be easily learned in organizations.
B) organizations and people become better at their tasks as the tasks are repeated.
C) learning takes place when people in organizations change.
D) total labor costs decrease as the number of production units increases.
E) doubling output cuts labor requirements per unit in half.

Question 18

Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated.

Question 19

Which of the following statements is MOST appropriate with respect to a 70% learning curve?

A) There will be a 70% decrease in direct labor per unit each time the production volume doubles.
B) Each successive unit of production will take 70% of the direct labor of the previous unit.
C) There will be a 30% decrease in direct labor per unit each time production volume doubles.
D) Thirty percent of the production will be defective until full learning takes place.
E) None of these is true.

Question 20

The earliest application of learning curves appears in the work of architect Frank Lloyd Wright.

Question 21

A job with a 95% learning curve required 19 hours for the second unit. The first unit should require approximately how many hours?

A) 20.0
B) 19.5
C) 19.9
D) 18.0
E) 18.1

Question 22

Learning curves have a variety of purposes. Which three broad categories does the text place them into?

A) services, industry, and military
B) internal, external, and strategic
C) wholesale, distribution, and retail
D) doubling, formula, and learning curve table
E) positive learning, neutral learning, and negative learning

Question 23

In addition to labor, to which other variables have learning curves been applied?

Question 24

Learning curves can be used to establish budgets.

Question 25

The learning curve may not be permanent; it can be disrupted by changes in process, personnel, or product.

Question 26

Learning curves can be applied to a variety of purposes internal to a firm, including:

A) labor forecasting.
B) scheduling.
C) establishing costs.
D) establishing budgets.
E) all of these

Question 27

Learning curves are:

A) the same for all products but different for different organizations.
B) the same for all organizations but different for different products.
C) the same for all organizations and all products.
D) different for different organizations and different products.
E) appropriate in services but not in manufacturing.

Question 28

Which of the following statements regarding the usefulness of learning curves is FALSE?

A) An external use of learning curves is in supply chain negotiations.
B) A strategic use of learning curves is in evaluating company and industry performance.
C) An external use of learning curves is in establishing costs.
D) An internal use of learning curves is in labor forecasting.
E) An internal use of learning curves is in establishing budgets.

Question 29

When comparing a 70% learning curve versus a 90% learning curve, which one results in a more rapid reduction in labor requirements? Why?

Question 30

If the learning curve for a process is 80 percent, that same process has a 20 percent ________.

Question 31

A project manager bases his time and labor estimates on a learning curve of 86%. The actual learning curve turns out to be 84%. The manager, because of the decreased learning, will complete his project in more time and with more labor use than his estimate suggested.

Question 32

What problems in scheduling can arise if adjustments for learning curve effects in operations are not made?

Question 33

Failure to consider the effects of learning can lead to ________ of labor needs.

Question 34

Why do different organizations have different learning curves?

Question 35

Describe the earliest application of learning curve concepts to industry.

Question 36

Which of the following statements comparing learning curve rates (L) to improvement rates is TRUE?

A) The learning curve rate is the same as the improvement rate.
B) The learning curve rate is a decimal value while the improvement rate is a percentage.
C) A 90 percent learning curve corresponds to a 10 percent rate of improvement.
D) Learning curve rates apply to labor only, while improvement rates apply to all resources.
E) "Learning curve rates" is American usage, while "improvement rates" is British.

Question 37

What is the basic premise underlying the learning curve?

Question 38

The earliest industrial application of learning curves came from a report by ________.

Question 39

The learning curve in the steel industry and the learning curve in disk memory drives have both been estimated at 79 percent.

Question 40

________ are based on the premise that people and organizations get better at their tasks as the tasks are repeated.

Question 41

The first unit of a product took 832 hours to build, and the learning curve is 75%. How long will it take to make the 30th unit? (Use at least three decimals in the exponent if you use the formula approach.)

A) less than 200 hours
B) from 200 to 225 hours
C) from 225 to 250 hours
D) from 2501 to 275 hours
E) 275 or more hours

Question 42

Explain how learning curves might be applied in a bid preparation application.

Question 43

The fourth unit of production took 9 hours. If the learning curve is 90%, how long did the first unit take?

A) 9.0 hours
B) 10.0 hours
C) 11.1 hours
D) 8.5 hours
E) 32.0 hours

Question 44

The formula approach to learning curve calculations allows us to determine the hours required for any unit.

Question 45

The doubling approach to learning curve calculations allows us to determine the hours required for any unit.

Question 46

The learning rate for a product is 85 percent. The first unit took 10 hours to complete. The manufacturer wants to determine how many hours the fourth unit will take by using the formula approach. What is the coefficient b for that calculation?

A) −.234
B) −.152
C) −.322
D) )693
E) 8.1

Question 47

"By tradition, learning curves are defined in terms of the complements of their improvement rates." Explain.

Question 48

The learning curve for a product is 70 percent. The first unit took 100 hours to complete. The manufacturer wants to determine how many hours the fifth unit will take by using the formula approach. What is the coefficient b for that calculation?

A) −.097
B) −.515
C) −.322
D) )80
E) 1.90

Question 49

Explain how learning curves might be applied in a scheduling application.

Question 50

The first unit took 10 hours and the fourth unit took 8.1 hours to complete. What is the learning curve?

A) 100%
B) 99%
C) 95%
D) 90%
E) 80%

Question 51

It took 18 hours to complete the first two products with an 80% learning curve. How long did the second product take?

A) 8.0 hours
B) 10.0 hours
C) 18.0 hours
D) 8.1 hours
E) F none of these

Question 52

The first unit of a product took 832 hours to build, and the learning curve is 70%. How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the formula approach.)

A) less than 250 hours
B) from 251 to 275 hours
C) from 276 to 300 hours
D) from 301 to 325 hours
E) 325 or more hours

Question 53

The learning-curve table approach may be simpler to use than the formula approach, but it requires the presence of a table of learning-curve coefficients.

Question 54

The first unit of production took 10 hours with a 90% learning curve. How long will it take to complete both the first and second units?

A) 19 hours
B) 8 hours
C) 18 hours
D) 15.7 hours
E) There is not enough information to solve the problem.

Question 55

The first unit took 10 hours and the eighth unit took 5.12 hours. What is the learning curve?

A) 50%
B) 90%
C) 80%
D) 12.5%
E) none of these

Question 56

The first unit took 10 hours and the fourth unit 8.1 hours. What is the improvement rate?

A) 99%
B) 95%
C) 90%
D) 15%
E) 10%

Question 57

The first unit took 10 hours and the third unit took 5.68 hours. What is the improvement rate?

A) 70%
B) 30%
C) 50%
D) 90%
E) 10%

Question 58

In the formula to compute the time for the Nth unit, T_N = T₁₍N^b), the exponent b is the learning curve rate L, expressed as a decimal.

Question 59

The first product took 10 hours to build and the learning curve is estimated to be 90%. How long will it take to make the eighth unit?

A) 10 hours
B) 9 hours
C) 8.1 hours
D) 7.29 hours
E) none of these

Question 60

If it took 1000 hours to produce the first unit of a product, and the learning curve is 80%, how long will it take to produce units 26 through 50?

A) 14,429 hours
B) 7,813 hours
C) 134 hours
D) 3,903 hours
E) 20,122 hours

Question 61

Suppose that there are two products with the same first product time. However, product A has an improvement rate of 10% while product B has an improvement rate of 15%. How much longer will it take to make the 10th unit of product A compared to product B?

A) Both will have the identical time for the 10th unit.
B) A will take 33% more time.
C) A will take 33% less time.
D) A will take 21% more time.
E) A will take 21% less time.

Question 62

The first unit of a product took 832 hours to build, and the learning curve is 90%. How long will it take to make the 25th unit? (Use at least three decimals in the exponent if you use the formula approach.)

A) time ≤ 500 hours
B) 500 < time ≤ 525
C) 525 < time ≤ 530
D) 530 < time ≤ 550
E) time > 550

Question 63

A defense contractor has just started producing turbines for a new government contract. The first turbine took 7000 hours to produce. If the learning curve is 90%, how long will it take to produce the 10th turbine? (Use at least three decimals in the exponent if you use the formula approach.)

A) less than 4800 hours
B) from 4800 to 4900 hours
C) from 4900 to 5000 hours
D) from 5000 to 5100 hours
E) over 5100 hours

Question 64

In the Learning-Curve Coefficients table for 80 percent learning, the seventh unit has a unit time value of 0.534. Verify that table entry by use of the formula approach. Use five decimals in your work.

Question 65

To use the table of learning-curve coefficients, you must specify ________ and ________.

Question 66

A defense contractor has just started producing engines for a new government contract. The first engine took 800 hours to produce. If the learning curve is 80%, approximately how long will it take to produce the first 20 engines?

A) 8388 hours
B) 665 hours
C) 8083 hours
D) 310 hours
E) 10,000 or more hours

Question 67

The first unit of a product took 1,000 hours to build and the learning curve is 80%. Approximately how long will it take to make the next five units?

A) 4299 hours
B) 3738 hours
C) 3299 hours
D) 2738 hours
E) 562 hours

Question 68

In the formula approach to learning curve calculations, you have used the formula T_N = T₁ (N^b). For a problem with a 92 percent learning curve, what is b?

Question 69

In the formula approach to learning curve calculations, T_N = T₁ (N^b). For a problem with an 88 percent learning curve, what is b?

A) −0.184
B) 0.184
C) 0.88
D) −0.88
E) −0.120

Question 70

In the formula approach to learning curve calculations, you have used the formula T_N = T₁ (N^b). Your manager shows you a problem for which b is specified as −.18443. What learning curve does that value represent?

Question 71

The Learning-Curve Coefficients table reports that for 90 percent learning, the sixteenth unit has a unit time value of 0.656. Verify that table entry by use of the doubling method.

Question 72

It took 60 hours to make the first unit of a product. After the second and third units were made, the learning curve was estimated to be 80%. At $10 per hour, estimate the labor bill for the fourth unit. (Use at least three decimals in the exponent if you use the formula approach.)

A) $400 or less
B) from $400 to $420
C) from $420 to $440
D) from $1800 to $2000
E) over $2000

Question 73

The first unit of a product took 900 hours to build and the learning curve is 90%. How long will it take to make the first 3 units?

A) less than or equal to 2,470 hours
B) from 2,470 to 2,472 hours
C) from 2,472 to 2,475 hours
D) from 2,475 to 2,478 hours
E) from 2,478 to 2,481 hours

Question 74

The first unit of a product took 80 work days. The learning curve is estimated to be 90%. The time for the fifth unit will be about ________ work days and the time for the first five units will be about ________ work days.

A) 63; 347
B) 250; 51
C) 65; 285
D) 51; cannot be determined
E) 65; cannot be determined

Question 75

Identify one advantage and one disadvantage of the doubling approach over the formula approach to learning curve calculations.

Question 76

The first unit of a product took 50 hours to build, and the learning curve is 85%. How long will it take to make the 20th unit? (Use at least three decimals in the exponent if you use the formula approach.)

A) less than 25 hours
B) from 25 to 30 hours
C) from 30 to 35 hours
D) from 35 to 40 hours
E) more than 40 hours

Question 77

A company negotiates a price for two aircraft that includes a reduction in labor on the second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100 hours. If the improvement rate changes to 40%, how will the total time to complete both aircraft change?

A) no change
B) −10 hours
C) +10 hours
D) −30 hours
E) +30 hours

Question 78

The first unit of a product took 50 hours to build, and the learning curve is 80%. How long will it take to make the third unit? (Use at least three decimals in the exponent if you use the formula approach.)

A) under 30 hours
B) about 32 hours
C) about 35 hours
D) about 50 hours
E) about 75 hours

Question 79

A manager is trying to estimate the appropriate learning curve for a certain job. The manager notes that the first four units had a total time of 25 minutes. Which learning curve would yield approximately this result if the first unit took 9 minutes?

A) 0.70
B) 0.75
C) 0.80
D) 0.85
E) 0.90

Question 80

The ________ is the simplest approach to learning curve problems.