Ask Question
1 June, 03:23

A new product made from recycled bio-plastics needs 17 labor hours to complete the build for the first unit.

If production operates at an 87% learning curve rate, calculate the average labor hours required per unit to produce five units.

+2
Answers (1)
  1. 1 June, 03:47
    0
    12.3 hours

    Explanation:

    The formula that is used to calculate the average time to produce a unit:

    y = aQ^b

    y = Average time to produce one unit.

    a = Time necessary to produce the first unit.

    Q = Cumulative production in units.

    b = Learning rate which is calculated using: log (percentage learning rate) / log 2.

    In this case, we have to start by calculating b:

    b = Log0,87/log2 = - 0.139/0.693 = - 0.200

    Then, we have that a = 17 and Q=5 and replace this on the formula for the average time to produce one unit:

    y = 17 * 5^-0.200

    y = 17*0,724 = 12,3

    According to this, the average labor hours required per unit to produce five units is 12.3 hours.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A new product made from recycled bio-plastics needs 17 labor hours to complete the build for the first unit. If production operates at an ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers