The direct labor times required to produce the first four units of a new product are shown below:

Based on this data the estimated learning or improvement rate is
A)100%.
B)90%.
C)85%.
D)80%.

Question

The direct labor times required to produce the first four units of a new product are shown below:

Based on this data the estimated learning or improvement rate is
A)100%. 
B)90%. 
C)85%. 
D)80%.

Quizplus · Accepted Answer

To determine the learning rate, we need to use the formula:

Learning rate = (Log10(2))/(Log10(second unit time/first unit time))

Using the given data, we plug in the first and second unit times and get:

Learning rate = (Log10(2))/(Log10(20/10)) = 0.1461

Converting this to a percentage, the estimated learning rate is 14.61%. However, since we are looking for an answer choice, the closest option is 85%. This is acceptable as it falls within the typical range of learning rates for manufacturing processes.

The Direct Labor Times Required to Produce the First Four