ACCA PM · Chapter 11 · Question 2 of 10
The first unit of a product took 50 hours. An 85% learning curve applies, and the learning index is b = log 0.85 / log 2 = -0.2345 (to four decimal places). How long will the 20th unit take to produce (to one decimal place)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 19.1 hours
Explanation
Using y = ax^b: cumulative average for 20 units = 50 x 20^-0.2345 = 24.767 hours, so total time = 20 x 24.767 = 495.35 hours. Cumulative average for 19 units = 50 x 19^-0.2345 = 25.067 hours, so total = 19 x 25.067 = 476.27 hours. Time for the 20th unit = 495.35 - 476.27 = 19.08, which is 19.1 hours to one decimal place (the unrounded index gives 19.08 as well). 24.8 hours is the cumulative average, 495.4 hours the cumulative total, and 26.1 hours the 16-unit average (50 x 0.85^4).
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