Question

A company in College Station is just starting to make a brand new product it has never made before. It has completed two units so far. The first unit took 32 hours to complete and the next unit took 26 hours. Based only on this information, what would be the estimate of the learning percentage in this process

Answer 1

81.25%

Step-by-step explanation:

the learning percentage = 26 hours / 32 hours = 0.8125 = 81.25%

The learning percentage is useful in order to calculate the cumulative average time and cost. Based on the information above and using a cumulative improvement factor table, we can estimate the number of hours required to manufacture a larger number of units.