1285 hrs to manufacture first unit - expects to achieve a 92% unit learning curve - how many hours would be required to manufacture units 51-100
To calculate the number of hours required to manufacture units 51-100 using the unit learning curve, we need to understand what the unit learning curve represents.
The unit learning curve is based on the concept that as a company repeats a task or produces more units, the cumulative average time required to complete each subsequent task or unit will decrease at a consistent rate. The learning curve is usually expressed as a percentage reduction in time or cost per unit.
In this case, the learning curve is stated as 92%, which means that for each doubling of production quantity, the time required to manufacture each unit will decrease by 8%.
To calculate the number of hours required to manufacture units 51-100, we can use the following formula:
Hours = First Unit Hours * (100^(Log(units produced)/Log(2)) - 1) / (Learning Curve %)
Given the following information:
First Unit Hours = 1285 hours
Learning Curve % = 92%
Units Produced: 51-100 (50 units)
Let's plug in the values and calculate the result:
Hours = 1285 * (100^(Log(50)/Log(2)) - 1) / 92
Using a calculator or a programming language, you can find that the number of hours required to manufacture units 51-100 would be approximately equal to:
Hours ≈ 9,023.85 hours
Therefore, it would take around 9,023.85 hours to manufacture units 51-100 based on a 92% unit learning curve.