A new training program at Arid Industries is intended to lower the learning-curve coefficient of a certain molding operation that currently costs $95.50/hour. The current coefficient is .87, and the program hopes to lower the coefficient by 10%. Assume that the time to mold the first product is 8 hours. If the program is successful, what cost savings will be realized when the 2000th piece is produced?

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Work measurement

Work measurement is an approach used by management to calculate and observe the time that employees dedicate to their work. Work measurement also determines an employee's behavior and how the individual performs a task in a given time frame. It also measures employee performance as compared to others in terms of time, usage of innovative ideas, presentation, etc.