Question

A new product made from recycled bio-plastics needs 25 labor hours to complete the build for the first unit. If production operates at a 67% learning curve rate, calculate the average labor hours required per unit to produce five units.

Answer 1

166.25 hours

Step-by-step explanation:

It take 25 hours if the production is going at 100% capacity, but the production is only going at 67%, therefore, 33% of the capacity is under utilized. It takes 8.25 more hours to finish the unit since the capacity is only at 67%. Finally, it takes 25+8.25 hours to finish a single product, hence taking 166.25 hours for 5 units.

We do this like this:

--> 25 ------ 100

--> X ------ 33

--> 33*25 = 100*X

--> 825/100

--> X=8.25

Hope this clears everything. Thankyou.