LEARNING CURVE

REPEAT
HUMAN
EXPERTS

LC- TABULAR APPROACH

NO OF OUTPUT PER(UNITS) CUM-AVG/TIME PER UNIT TOTAL HR

1 100 100
2 80 160
4 64 256

1ST UNIT TAKE 100 HOURS 80% LEARNING EFFECT

CALCULATE CUMMILATIVE AVG TIME UPTO 8 UNITS UNDER TABULAR APPROACH FROM FOLLOWING INFORMATION

NO OF OUTPUT PER(UNITS) CUM-AVG/TIME PER UNIT TOTAL HR

1 40 40
2 36 72
4 32.4 129.6
8 29.16 233.28

LOWER LEARNING RATE WILL RESULT HIGHER LEARNING THAT IS LOWER TIME WILL BE TAKEN

CALCULATE TIME TAKEN FOR SECOND UNIT FROM ABOVE PRODUCTION

TOTAL TIME FOR TWO UNITS-TIME FOR FIRST UNIT

24

CALCULATE TIME TAKEN FOR THIRD AND FOURTH UNIT FROM THE ABOVE QUESTION

TOTAL TIME FOR FOUR UNIT- TIME FOR TWO UNITS

38.4
NOTES 2

OTHER WORKER

1 30 30
2 27 54
4 24.3 97.2

4082.4
1020.6
5103

EXPERIENCED HR 60
EXP MAN 80
4800

WE SHOULD CHOOSE EXPERIENCED WORKER EXPERIENCED EMPLOYEE

NOTES:3

1 10 10
2 8 16
4 6.4 25.6
8 5.12 40.96
16 4.096 65.536
32 3.2768 104.8576
LABOUR COST 491.52

CRUSH CO

1 1500 1500
2 1275 2550
4 1083.75 4335
8 921.1875 7369.5
16 783.009375 12528.15
32 665.55796875 21297.855
64 565.7242734375 36206.3535
HOW TO CALCULATE LEARNING RATE

CUM AVG TIME FOR 2 UNITS/CUM AVG TIME OF 1 UNITS

TIME FOR 1ST UNIT 1500

AVG TIME FOR 2 UNITS 1275
CALCULATE LEARNING RATE
85

CALCULATE LEARNING RATE

CUM AVG TIME FOR 32 UNITS 665.558

CUM AVG TIME FOR 16 UNITS 783

CALCULATE LEARING RATE 85%

CALCULATE LEARING RATE

1ST UNIT TAKE 1500 HOURS

CUM AVG TIME FOR 16 UNITS 783

0.522

85%

217

0.375

78.25%

222 531.25

0.708333333333333
91.74%
ALGEBRAIC MODEL-LR
Y=AX^B

B=LEARNING COEFFICIENT

CALCULATE CUMMILATIVE AVG TIME FOR 64 BATCHES

1ST UNIT 200 HRS

LEARNING RATE 90%

1 200 200
2 180 360
4 162 648
8 145.8 1166.4
16 131.22 2099.52
32 118.098 3779.136
64 106.2882 6802.4448

Y=AX^B

B -0.15200309344505

X^B 0.531441
AX^B 106.2882

CALCULATE TOTAL TIME FOR 23 RD UNIT

IST UNIT 40HRS

LEARNING RATE 85%
X^B 0.479426612408377
AX^B 19.1770644963351 TOTAL TIME

B -0.234465253637023

TIME FOR 1ST UNIT 800 HRS

1ST Unit IS a demonstration piece not for sale

first order of 20 units received

time for 20 units of sale= total time for 21 machine -time for 1st machine

1 800
lr 80%

x^b 0.375299174392697
ax^b 300.239339514157 total time
timefor first unit

time required for 20 machine

note:time for demonstration piece excluded for calculation of selling

calculation of 20 machine order selling price

particular
material
labor
variable overhead
fixed overhead

add:profit
selling price
sp per unit

1 800
lr 80%

x^b 0.282054582679068
ax^b 225.643666143254
WING INFORMATION

40 40
32 64
25.6 102.4
20.48 163.84
TIME FOR REPEAT 24 UNITS 63.8976

TOTAL LABOUR COST 766.7712

562.5
 441.072483415706

6305.0261297973
800

5505.0261297973

cluded for calculation of selling price for 20 machine in order

$
320000
110100.52
137625.653244933
220201.045191892

787927.22
196981.804609206
984909.02
49245.4511523015

total time 11507.826973306

timefor 21 unit 6305.0261297973
time required for 50 machine 5202.8008435087

calculation of 20 machine order selling price

particular $
material 480000
labor 104056.01687017
variable overhead 130070.02108772
fixed overhead 208112.03374035

922238.07
add:profit 230559.51792456
selling price 1152797.59
sp per unit 38426.58632076