Cumulative Average-Time Learning Model

Learning Curve 0.9

LC Factor: -0.15200309344505
Cum. # Units Cum. Avg Time/Unit Cumulative Total Time Time for the Xth Unit
1 10 10 8 Cum.
2 9 18 7.38617958937025
12
3 8.46205986312342 25.3861795893703 7.01382041062975
4 8.1 32.4 6.74933608401921 10
5 7.82986721680384 39.1493360840192 6.54578717684725
6 7.61585387681108 45.6951232608665 6.38122511789048 8
7 7.43947833982242 52.0763483787569 6.24365162124306
6
8 7.29 58.32 6.1258114143759
9 7.16064571270843 64.4458114143759 6.02299353685869 4
10 7.04688049512346 70.4688049512346
2

0
0 2 4

Incremental Unit-Time Learning Model

Learning Curve 0.9
LC Factor: -0.15200309344505
Cum. # Units Time for the Xth Unit Cumulative Total Time Cum. Avg Time/Unit Cum.
1 10 10 10 12
2 9 19 9.5
3 8.46205986312342 27.4620598631234 9.15401995437447 10
4 8.1 35.5620598631234 8.89051496578086
5 7.82986721680384 43.3919270799273 8.67838541598545 8
6 7.61585387681108 51.0077809567383 8.50129682612306
7 7.43947833982242 58.4472592965608 8.34960847093725 6
8 7.29 65.7372592965608 8.2171574120701
4
9 7.16064571270843 72.8979050092692 8.09976722325213
10 7.04688049512346 79.9447855043927
2

0
0 2 4
 Cum. Avg Time/Unit

0 2 4 6 8 10 12

Cum. Avg Time/Unit

Cum. Avg Time/Unit

2 4 6 8 10 12
Northern Defense manufactures radar systems
Learning curve 0.85
LC Factor -0.23446525363702
Cum. # Units Cum. Avg Time/Unit Cumulative Total Time DM
1 4400
2 3740
3 3401
4 3179
5 3017
6 2891
7 2788
8 2702
DL MOH Total VC
4400 84000 118800 57200 260000
7480 168000 201960 97240 467200
10202 252000 275466.8 132632.2 660099
12716 336000 343332 165308 844640
15085 420000 407288.6 196101.9 1023391
17344 504000 468293.6 225474.7 1197768
19517 588000 526948.7 253716.1 1368665
21617 672000 583664.4 281023.6 1536688

Direct Material cost per unit 84000

Director labor cost per hour 27
Variable MOH cost per hour 13