An easier/alternative way to think about it would be this way:
the learning curve applies to each doubling in production (1, 2, 4, 8, etc.).
it takes 800 hours for the first batch of 4 units.
it should take on average 720 (800*.9) hours for the first 2 batches (total 8 units).
it should then take 648 (720*.9) hours on average for the first 4 batches (16 units).
648 hours*4 batches = 2,592 total hours for the first 4 batches or 16 units.
"the next 12 units" basically asks how long it would take to produce the next 3 batches, above the first batch.
2,592-800 hours for the first batch = 1,792 additional hours
that is the way I remember how it works, hopefully it eases your concerns. The way they provided the answer was a little more confusing.
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Nicholas Tsirigos
United States
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Original Message:
Sent: 06-12-2019 09:22 PM
From: Jenny Turnham
Subject: Learning Curve Calculation
I find difficulty every time I try to solve this problem, although I see the answer but still I don't get it. This is about learning curve. Please anyone will explain to me in different way.
A mfg company required 800 DLH to produce the first lot of four units of a new motor.Management believes that a 90% Learning Curve will be experienced over the next four lots of production. How many DLH will be required to manufacture the next 12 units?
The answer is:
Batch 1 = 800/ 4 units = 200 DLH per unit
Batch 2 = ( 800 x.9)/ 4 units =180 DLH per unit
Batch 4 = (1440 x .9)/ 8 units = 162 DLH per unit
Hours for next 12 units = (162 x16)- 800 for the first of 4 units
=1792 hours
The ones I don't get it are batch 4 and hours for next 12 units.
Thank you!
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Jenny Turnham
Student
Brooklyn Park MN
United States
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