GMS 401 - TEST 2 || 100% Accurate Answers.
Learning Curves correct answers The premise that people and
organizations get better at their
tasks as the tasks are repeated;
sometimes called experience
curves.
Major Roles in Learning Curves correct answers employment levels, costs, capacity, and pricing.
Doubling of Production correct answers when production doubles, the decrease in time per unit
affects the rate of the learning curve.
T x L^n= time required for the nth unit
The Rate of Learning correct answers depends on the the quality management and the potential
of the process and product.
What Disrupts the Learning Curve correct answers Any change in process, product, or personnel
disrupts the learning curve.
The steeper the slope of learning curve correct answers the faster the drop in costs
(75% learning rate is better than 85%)
products that decline more steeply than others correct answers Stable, standardized products and
processes
Learning Curves are useful for correct answers 1. Internal: Labour forecasting, scheduling,
establishing costs and budgets
2. External: Supply Chain Negotiations
3. Strategic: Evaluation of a Company and industry performance, including costs and pricing.
If Learning Curves are Ignored correct answers Problems such as
Scheduling Mismatches - Leading to idle labour and productive efficiencies
Refusal to accept new orders because capacity is assumed to be full
Missing and opportunity to negotiate with suppliers for lower purchase prices as a result of large
orders.
Three Ways to Approach the Mathematics of Learning Curves correct answers 1. Arithmetic
Analysis
, 2. Logarithmic Analysis
3. Learning Curve Coefficients
Arithmetic Approach correct answers uses the production doubling equation
T x L^n = time required for nth unit
Logarithmic Approach correct answers Allows us to determine the labour for any unit
Tn = T1(N^b)
where:
Tn = time for the nth unit
T1 = hours to produce the first unit
b = (log of the learning rate/log 2) = slope of the learning rate
Learning Curve Coefficient Approach correct answers Tn= T1 x C
Tn = time for the nth unit
T1 = hours to produce the first unit
C = learning curve coefficient found in "unit time coefficient"
A firm can persue a learning cost steeper than industry average by: correct answers 1. Following
an aggressive pricing policy
2. Focusing on continuing cost reduction and productivity improvement
3. Building on a shared experience
4. Keeping capacity growing ahead of demand
Two ways that quality improves profitability are correct answers Sales gain via improved
response, price flexibility, increased market share, and/or improved reputation.
Reduced costs via increased productivity, lower rework and scrap costs, and/or lower warranty
costs.
An operations manager's job is to: correct answers build a total quality management system that
identifies and satisfies customer need.
Quality correct answers the ability of a product or service to meet customer needs
American Society for Quality defines quality as: correct answers the totality of features and
characteristics of a product or service that bears on its ability to satisfy stated or implied needs.
Cost of Quality (COQ) correct answers the cost of doing things wrong - that is, the price of non
conformance
Learning Curves correct answers The premise that people and
organizations get better at their
tasks as the tasks are repeated;
sometimes called experience
curves.
Major Roles in Learning Curves correct answers employment levels, costs, capacity, and pricing.
Doubling of Production correct answers when production doubles, the decrease in time per unit
affects the rate of the learning curve.
T x L^n= time required for the nth unit
The Rate of Learning correct answers depends on the the quality management and the potential
of the process and product.
What Disrupts the Learning Curve correct answers Any change in process, product, or personnel
disrupts the learning curve.
The steeper the slope of learning curve correct answers the faster the drop in costs
(75% learning rate is better than 85%)
products that decline more steeply than others correct answers Stable, standardized products and
processes
Learning Curves are useful for correct answers 1. Internal: Labour forecasting, scheduling,
establishing costs and budgets
2. External: Supply Chain Negotiations
3. Strategic: Evaluation of a Company and industry performance, including costs and pricing.
If Learning Curves are Ignored correct answers Problems such as
Scheduling Mismatches - Leading to idle labour and productive efficiencies
Refusal to accept new orders because capacity is assumed to be full
Missing and opportunity to negotiate with suppliers for lower purchase prices as a result of large
orders.
Three Ways to Approach the Mathematics of Learning Curves correct answers 1. Arithmetic
Analysis
, 2. Logarithmic Analysis
3. Learning Curve Coefficients
Arithmetic Approach correct answers uses the production doubling equation
T x L^n = time required for nth unit
Logarithmic Approach correct answers Allows us to determine the labour for any unit
Tn = T1(N^b)
where:
Tn = time for the nth unit
T1 = hours to produce the first unit
b = (log of the learning rate/log 2) = slope of the learning rate
Learning Curve Coefficient Approach correct answers Tn= T1 x C
Tn = time for the nth unit
T1 = hours to produce the first unit
C = learning curve coefficient found in "unit time coefficient"
A firm can persue a learning cost steeper than industry average by: correct answers 1. Following
an aggressive pricing policy
2. Focusing on continuing cost reduction and productivity improvement
3. Building on a shared experience
4. Keeping capacity growing ahead of demand
Two ways that quality improves profitability are correct answers Sales gain via improved
response, price flexibility, increased market share, and/or improved reputation.
Reduced costs via increased productivity, lower rework and scrap costs, and/or lower warranty
costs.
An operations manager's job is to: correct answers build a total quality management system that
identifies and satisfies customer need.
Quality correct answers the ability of a product or service to meet customer needs
American Society for Quality defines quality as: correct answers the totality of features and
characteristics of a product or service that bears on its ability to satisfy stated or implied needs.
Cost of Quality (COQ) correct answers the cost of doing things wrong - that is, the price of non
conformance
