Units Total Labor Hours Question 1 Average labor Learning Rate per unit Question 2- 10.8 5.4 10% 19.2 4.8 11.1% 35.2 4.4 8.3% 16 64 4.0 9.1% 32 115.2 3.6 10% 64 211.2 3.3 8.3% 128 384 3.0 9.1% Overall Average mprovement Rate Applicable Learning Curve 2 Calculate the appropriate learning rate and the overall average improvement rate for this data set. Jsbora

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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2. Calculate the appropriate learning rate and the overall average improvement rate for this data set. (Hint: Subtract Average labor/unit of previous lower production level from the Average labor/unit of the production level for which you are trying to figure out the learning rate, then divide by the previous production level average labor/unit. See example above 6-5.4/6=10%)

 

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1. Given the above data, calculate the average labor per unit given the cumulative total labor hours provided (this is
already given to you below, but please spend some time analyzing it with the information you learned from the book
All you are doing here is dividing the number of total labor hours by the number of units. L.e. 2 units/ 10.8 of total labor
hours it took = 5.4 average labor per unit).
Total Labor
Hours
Question 1
Average labor Leaming Rate
Units
Question 2-
per unit
...
12
10.8
5.4
10%
4
19.2
4.8
11.1%
35.2
4.4
8.3%
16
64
4.0
9.1%
32
115.2
3.6
10%
64
211.2
3.3
8.3%
128
384
3.0
9.1%
Overall Average
improvement
Rate
Applicable
Learning Curve
2. Calculate the appropriate learning rate and the overall average improvement rate for this data set. (Hint: Subtract
Average labor/unit of previous lower production level from the Average labor/unit of the production level for which you
are trying to figure out the learning rate, then divide by the previous production level average labor/unit. See example
above 6-5.4/6-10%)
3. Are gains from learning realized early in production or at a later point?
4. A learning curve applies to improvements in the direct labor portion of a process. How does the learning curve
differ from the experience curve?
Transcribed Image Text:1. Given the above data, calculate the average labor per unit given the cumulative total labor hours provided (this is already given to you below, but please spend some time analyzing it with the information you learned from the book All you are doing here is dividing the number of total labor hours by the number of units. L.e. 2 units/ 10.8 of total labor hours it took = 5.4 average labor per unit). Total Labor Hours Question 1 Average labor Leaming Rate Units Question 2- per unit ... 12 10.8 5.4 10% 4 19.2 4.8 11.1% 35.2 4.4 8.3% 16 64 4.0 9.1% 32 115.2 3.6 10% 64 211.2 3.3 8.3% 128 384 3.0 9.1% Overall Average improvement Rate Applicable Learning Curve 2. Calculate the appropriate learning rate and the overall average improvement rate for this data set. (Hint: Subtract Average labor/unit of previous lower production level from the Average labor/unit of the production level for which you are trying to figure out the learning rate, then divide by the previous production level average labor/unit. See example above 6-5.4/6-10%) 3. Are gains from learning realized early in production or at a later point? 4. A learning curve applies to improvements in the direct labor portion of a process. How does the learning curve differ from the experience curve?
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