Learning curve is a theory that provides that the more a particular task is done over time, the effort and time to complete the task becomes lesser.
a. Time required for the very first unit
It is represented in the equation as Tn=T1nb
where,n = the unit number (1 for the first unit, 2 for the second unit, etc.)
T1 = the amount of time to produce the first unit, lets assume this as X
Tn = the amount of time to produce unit n = 3.5 minutes it took for 125th unit
b = the learning curve factor, calculated as In (p)/ln(2) = LN(0.8)/LN(2) = -0.22314/0.69315 = -0.32193 (this is found from the excel function =LN; this can also be found using 'LOG' excel function as =LOG(0.8,2)
Applying this in the equation,
3.5 = X * 125^-0.32193
3.5 = X*0.211323
X = 3.5/0.211323 = 16.56
Thus, the time required for the very first unit = 16.56 minutes
b. Time required for the 220th unit
Applying the same above equation, Tn=T1nb
where,n = the unit number = 220
T1 = the amount of time to produce the first unit = 16.56 minutes (as above)
b = the learning curve factor, calculated as In (p)/ln(2) = LN(0.8)/LN(2) = -0.22314/0.69315 = -0.32193 (this is found from the excel function =LN; this can also be found using 'LOG' excel function as =LOG(0.8,2)
Thus,
Tn = 16.56 * 220^-0.32193
Tn = 16.56*0.211323
Tn = 2.92 minutes
Thus, the time required for the 220th unit = 2.92 minutes
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