Question

The direct labor times required to produce the first unit was 5 hours. The fourth unit...

The direct labor times required to produce the first unit was 5 hours. The fourth unit took 3.2 hours. what is the estimated learning or improvement rate?

Answers:

a. 68%

b.80%

c. 70%

D. 60%

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Answer #1

Let the estimated learning and improvement rate be z.

Then,

5 x z x z = 3.2

Or,

z x z = 3.2/5 = 0.64

Or,

z = 0.8

Therefore, the estimated learning or improvement rate is 80%.

The correct answer is b.

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