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

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

Quizplus · Accepted Answer

To calculate the learning or improvement rate, we need to use the formula:

Learning rate = (log (2) / log (unit 2 time / unit 1 time)) * 100%

Using the data provided, we can calculate the improvement rate for the first two units as follows:

Learning rate = (log (2) / log (24 / 16)) * 100% = 85%

Therefore, the estimated learning or improvement rate is 85%.

The Direct Labor Times Required to Produce the First Four