CUMULATIVE AVERAGE TIME

80% Learning courve

y=ax^b a = 100 x = 1, 2, 3, 4 b = ln0.8/ln2 -0.321928
Cumulative Cumulative Cumulative Individual
number of average time (Y): 80% total time time for x-th
units (X) Labor hours (A*B) unit (E7-E6)
1 100.00 100.00 100.00
2 80.00 =100 * 2^-0.32193 160.00 60.00
3 70.21 =100 * 3^-0.32193 210.63 50.63
4 64.00 =100 * 4^-0.32193 256.00 45.37
5 59.56 =100 * 5^-0.32193 297.82 41.82
6 56.17 =100 * 6^-0.32193 337.01 39.19
7 53.45 374.14 37.13
8 51.20 409.60 35.46
9 49.29 443.65 34.05
10 47.65 476.51 32.86
11 46.21 508.32 31.81
12 44.93 539.22 30.89
13 43.79 569.29 30.07
14 42.76 598.63 29.34
15 41.82 627.30 28.67
16 40.96 655.36 28.06

INCREMENTAL AVERAGE TIME

80% Learning courve
y=ax^b a = 100 x = 1, 2, 3, 4 b = ln0.8/ln2 -0.321928
Cumulative Individual Unit Cumulative Cumulative
number of time (Y): Labor 80% total hours average time
units (X) hours (E28+B29) (E28:A28)
1 100.00 100.00 100.00
2 80.00 =100 * 2^-0.32193 180.00 90.00
3 70.21 =100 * 3^-0.32193 250.21 83.40
4 64.00 =100 * 4^-0.32193 314.21 78.55
5 59.56 =100 * 5^-0.32193 373.77 74.75
6 56.17 =100 * 6^-0.32193 429.94 71.66
7 53.45 53.45 483.39 69.06
8 51.20 51.20 534.59 66.82
9 49.29 583.89 64.88
10 47.65 631.54 63.15
11 46.21 677.75 61.61
12 44.93 722.68 60.22
13 43.79 766.47 58.96
14 42.76 809.23 57.80
15 41.82 851.05 56.74
16 40.96 892.01 55.75
 TOTAL COST

Cumulative Cumulative Cumulative Additions to

Average Time Total Time:
Number of Cumulative costs at 50$ Cumulative
Units per Unit: Labor- Labor - Costs
Hours Hours

1 100.00 100 $ 5,000.00 (100*50) $ 5,000.00

2 80.00 160 $ 8,000.00 (160*50) $ 3,000.00
4 64.00 256 $ 12,800.00 $ 4,800.00
8 51.20 409.6 $ 20,480.00 $ 7,680.00
16 40.96 655.36 $ 32,768.00 $ 12,288.00
 CUMULATIVE AVERAGE TIME
85% Learning courve
y=ax^b a = 2,000 x = 1, 2, 3, 4 b = ln0.85/ln2 -0.234465
Cumulative Cumulative Cumulative Individual
number of average time (Y): 85% total time time for x-th
units (X) Labor hours (A*B) unit (E7-E6)
1 2,000.00 2,000.00 2,000.00
2 1,700.00 =2000 * 2^-0.23447 3,400.00 1,400.00 $ 1,700
3 1,545.83 =2000 * 3^-0.23447 4,637.49 1,237.49 1,545.82
4 1,445.00 =2000 * 4^-0.24447 5,780.00 1,142.51 1,445.00
5 1,371.34 =2000 * 5^-0.25447 6,856.71 1,076.71 1,371.34
6 1,313.96 =2000 * 6^-0.26447 7,883.73 1,027.02 1,313.96
7 1,267.31 =2000 * 7^-0.27447 8,871.19 987.46 1,267.31
8 1,228.25 =2000 * 8^-0.28447 9,826.00 954.81 1,228.25

INCREMENTAL AVERAGE TIME

90% Learning courve
y=ax^b a = 2,000 x = 1, 2, 3, 4 b = ln0.8/ln2 -0.152003
Cumulative Individual Unit Cumulative Cumulative
number of time (Y): Labor 90% total hours average time
units (X) hours (E28+B29) (E28:A28)
1 800.00 800.00 800.00
2 720.00 =800 * 2^-0.152 1,520.00 760.00
3 676.96 2,196.96 732.32
4 648.00 2,844.96 711.24
5 626.39 3,471.35 694.27
6 609.27 4,080.62 680.10
7 595.16 4,675.78 667.97
8 583.20 5,258.98 657.37

TOTAL COST
Machine-
Labor-Intensive Intensive
assembly method assembly
(from 1a) method (from
1a)
Direct materials
8 helicopters x 40,000$ or 36,000$ $ 320,000.00 $ 288,000.00
Direct-assembly labor
9,826 hrs or 5,258 hours x 30$ $ 294,780.00 $ 157,740.00
Indirect manufacturing costs
Equipment related
9,826 hrs x 12$ or 5,258 hours x 45$ $ 117,912.00 $ 236,610.00
Machine-handling related
0.5 x 320,000 or 0.5*288,000 $ 160,000.00 $ 144,000.00
TOTAL ASSEMBLY Cost $ 892,692.00 $ 826,350.00
 CUMULATIVE AVERAGE TIME
85% Learning courve
y=ax^b a = 2,000 x = 1, 2, 3, 4 b = ln0.85/ln2 -0.234465
Cumulative Cumulative Cumulative Individual
number of average time (Y): 85% total time time for x-th
units (X) Labor hours (A*B) unit (E7-E6)
1 6,000.00 6,000.00 6,000.00
2 5,100.00 =6000 * 2^-0.23447 10,200.00 4,200.00
3 4,637.49 13,912.47 3,712.47
4 4,335.00 17,340.00 3,427.53
5 4,114.03 20,570.13 3,230.13
6 3,941.87 23,651.19 3,081.06
7 3,801.94 26,613.57 2,962.38
8 3,684.75 29,478.00 2,864.43

INCREMENTAL AVERAGE TIME

90% Learning courve
y=ax^b a = 2,000 x = 1, 2, 3, 4 b = ln0.8/ln2 -0.152003
Cumulative Individual Unit Cumulative Cumulative
number of time (Y): Labor 80% total hours average time
units (X) hours (E28+B29) (E28:A28)
1 800.00 800.00 800.00
2 720.00 =800 * 2^-0.152 1,520.00 760.00
3 676.96 2,196.96 732.32
4 648.00 2,844.96 711.24
5 626.39 3,471.35 694.27
6 609.27 4,080.62 680.10
7 595.16 4,675.78 667.97
8 583.20 5,258.98 657.37

TOTAL COST
Labor-Intensive
assembly method
(from 1a)
Direct materials
8 systems x 30$ $ 1,280,000.00
Direct-manufactoring cost
3,685 hrs x 30$ $ 110,550.00
Overheads

3,685 hrs x 20$ $ 73,700.00

TOTAL Cost $ 1,464,250.00

TOTAL COST
 Cumulative Cumulative
Cumulative Additions to
Average Time Total Time:
Number of per Unit: Labor- Labor - Cumulative costs at 30$ Cumulative
Units Costs
Hours Hours
1 6,000.00 6,000.00 $ 180,000.00 (6,000*30) $ 180,000.00
2 5,100.00 10,200.00 $ 306,000.00 (10,000*30) $ 126,000.00
4 4,335.00 17,340.00 $ 520,200.00 (17,340*30) $ 214,200.00
8 3,684.75 29,478.00 $ 884,340.00 (29,478*30) $ 364,140.00