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Ira Grace B. De Castro.

ACN1 | CAED101

Learning Curve Activity

An operation has a 90% learning curve and the first unit produced took 28 minutes. The labor cost
is $20 per hour.

How long will the second unit take? How much should the second unit cost?

TN = T1 C Cost2 = T2 x Labor Cost


T2 = 28 mins. x 0.9 Cost2 = 25.2 mins x ($20 / 60 mins)
T2 = 25.2 minutes Cost2 = $8.4

Estimate the time it will take to complete the 4th unit of a 12-unit job involving a large assembly
if the initial unit requires approximately 80 hours. Assuming 72% learning curve.

TN = T1 (Nb)
T4 = 80 hours x 4log2 0.72
T4 = 41.47 hours

Zen Hospital has received initial certification from the state of California to become a center for
liver transplants. The hospital, however, must complete its first 18 transplants under great scrutiny
and at no cost to the patients. The very first transplant, just completed, required 30 hours. On the
basis of research at the hospital, Zen estimates that it will have an 80% learning curve.

Estimate the time it will take to complete the fifth liver transplant.
TN = T1 C
T5 = 30 hrs. x 0.596
T5 = 17.88 hours

Estimate the time it will take to complete all of the first 5 transplants.
TN = T1 C
T5 = 30 hrs. x 3.738
T5 = 112.14 hours

Estimate the time it will take to complete the eighteenth transplant.


TN = T1 C
T18 = 30 hrs. x 0.394
T18 = 11.82 hours

Estimate the time it will take to complete all 18 transplants.


TN = T1 C
T18 = 30 hrs. x 9.716
T18 = 291.48 hours

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