GMS 401 - TEST 2 Questions and
Already Passed Answers.
Learning Curves - Answer 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 - Answer employment levels, costs, capacity, and pricing.
Doubling of Production - Answer 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 - Answer depends on the the quality management and the potential of
the process and product.
What Disrupts the Learning Curve - Answer Any change in process, product, or personnel
disrupts the learning curve.
The steeper the slope of learning curve - Answer the faster the drop in costs
(75% learning rate is better than 85%)
products that decline more steeply than others - Answer Stable, standardized products and
processes
Learning Curves are useful for - Answer 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 - Answer 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 - Answer 1. Arithmetic Analysis
2. Logarithmic Analysis
3. Learning Curve Coefficients
Arithmetic Approach - Answer uses the production doubling equation
T x L^n = time required for nth unit
Logarithmic Approach - Answer 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 - Answer 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: - Answer 1. Following an
aggressive pricing policy
Already Passed Answers.
Learning Curves - Answer 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 - Answer employment levels, costs, capacity, and pricing.
Doubling of Production - Answer 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 - Answer depends on the the quality management and the potential of
the process and product.
What Disrupts the Learning Curve - Answer Any change in process, product, or personnel
disrupts the learning curve.
The steeper the slope of learning curve - Answer the faster the drop in costs
(75% learning rate is better than 85%)
products that decline more steeply than others - Answer Stable, standardized products and
processes
Learning Curves are useful for - Answer 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 - Answer 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 - Answer 1. Arithmetic Analysis
2. Logarithmic Analysis
3. Learning Curve Coefficients
Arithmetic Approach - Answer uses the production doubling equation
T x L^n = time required for nth unit
Logarithmic Approach - Answer 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 - Answer 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: - Answer 1. Following an
aggressive pricing policy
