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Time Standards and Learning Curve Theory

The document discusses time standards and learning curve theory. It defines a time standard as a specification for measuring time and a learning curve as showing how a learner's performance improves with practice. Learning curve models are often used in manufacturing to improve workforce performance. Two common models are the cumulative average time model, where time decreases by a fixed percentage each time production doubles, and the incremental unit time model, where each additional unit takes less time. Examples are provided to illustrate how to use the formulas for each model.

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Patrick Lance
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249 views33 pages

Time Standards and Learning Curve Theory

The document discusses time standards and learning curve theory. It defines a time standard as a specification for measuring time and a learning curve as showing how a learner's performance improves with practice. Learning curve models are often used in manufacturing to improve workforce performance. Two common models are the cumulative average time model, where time decreases by a fixed percentage each time production doubles, and the incremental unit time model, where each additional unit takes less time. Examples are provided to illustrate how to use the formulas for each model.

Uploaded by

Patrick Lance
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TIME STANDARDS

AND
LEARNING CURVE THEORY
BY:
AIRA NILL L. MANIEGO
WHAT IS TIME STANDARD?

It is a specification for measuring time,


either the rate which time passes or
points in time or both.
WHAT IS LEARNING CURVE THEORY?

A learning curve is a correlation between a


learner's performance on a task and the number
of attempts or time required to complete the
task.
It proposes that a learner’s efficiency in a task
improves over time the more the learner
performs the task.
WHERE IS LEARNING CURVE MODEL IS
OFTENLY USED?

The learning curve model is used most


commonly in organizational or industrial
management to improve output by way
of improving the performance of the
human workforce.
WHERE IS LEARNING CURVE MODEL IS OFTENLY USED?

FACTORY WORKER
MANUFACTURING
COMPANY
CARRIER COMPANY
MODELS

• Cumulative Average Time Learning


Model ( Wright’s Model)
• Incremental Unit Time Learning Model
( Crawford’s Model)
Cumulative Average Time Learning Model

• Learning increase with a fixed percentage every time


when production becomes double.

FORMULA:
Total Time= Initial Time x (2 x LC) x (2 x LC) x (2 x LC) ….
Using the cumulative-average time model, the table will show
us the effect of 80% learning curve. Assuming 10 direct labor
hours are required to produce the first unit.
SOLUTION
FORMULA:
Total Time= Initial Time x (2 x LC) x (2 x LC) x (2 x LC) ….
Incremental Unit Time Learning Model

Every incremental unit takes less time at a fixed


percentage due to the effect of learning curve.
Assumption:
Time declines by a constant percentage each
time cumulative quantity doubles ( i.e. 1st, 2nd,
4th, 8th, 16th… unit)
Formula:
Total time= Initial time x LC x LC x LC….
Suppose the first units takes 20 hours to be
produced. The learning rate is rate 90%.
2nd unit = 20 x .9 = 18 hours
4th unit = 18 x .9 = 16.2 hours
8th unit = 16.2 x .9 = 14.58 hours
16th unit = 14.58 x .9 = 13.12 hours
SOLUTION
Formula:
Total time= Initial time x LC x LC x LC….
ADDITIONAL PROBLEMS
1.) If the first time you took a job takes 60
minutes, how long will the eighth job take if you
are on an 80% learning curve?

1st time= 60 minutes


2nd time= 48 minutes (60 x .80)
4th time= 38.4 minutes (48 x .80)
8th time =30.72 minutes (38.4 x .80)

ANSWER: 30.72 minutes


2.) The ABC Company has just been given the following
production schedule for ski-lift gondola cars. This product
is considerably different from any others the company has
produced. Historically, the company’s learning rate has
been 80% on large projects. The first unit took 1,000 hours
to produce.

Requirements:
A.) Using the Cumulative Average Time Model, calculate
the time required for the 8th unit.
B.) Using the Incremental Unit Time Model, calculate the
time required for the 16th unit.
SOLUTION

A.)
Formula: Total Time= Initial Time x (2 x LC) x (2 x LC) x (2 x LC) ….

1 Unit = 1,000 hours


2 Unit = 1,600 hours 1,000 x (2 x .80)
4 Unit = 2,560 hours 1,000 x (2 x .80) x (2 x .80)
8 Unit = 4,096 hours 1,000 x (2 x .80) x (2 x .80) x (2 x .80)
ANSWER : 4,096 HOURS
B.)
Formula: Total time= Initial time x LC x LC x LC….

1st Unit = 1,000 hours


2nd Unit = 800 hours (1,000 x .80)
4th Unit = 640 hours (1,000 x .80 x .80)
8th Unit = 512 hours (1,000 x .80 x .80 x .80)
16th Unit = 409.6 hours (1,000 x .80 x .80 x .80 x .80)

ANSWER: 409.6 HOURS


3.) A former construction company executive just
started a new company called Cookie-Cutter
Homes. The company only makes one home type,
so as to maximize the learning curve effect. The
entrepreneur assumes that his company will realize
75% learning curve effect. The first home took 200
days to complete. Using Incremental unit time
learning model, how long will it take to produce
the 2nd home? How about 4th home? And what
about the 8th home?
SOLUTION
Formula: Total time= Initial time x LC x LC x LC….

2ND HOME
200 X .75 = 150 days
4th HOME
200 X .75 X .75 = 113 days
8TH HOME
200 x .75 x .75 x .75 = 84 days
THANK YOU FOR LISTENING !!!
Using the cumulative-average time model, the table will show
us the effect of 80% learning curve. Assuming 10 direct labor
hours are required to produce the first unit.
Unit 2 Unit 16
10.0 x .80 = 8.0 5.1 x .80 = 4.1
2 x 8.0 = 16.0 4.1 x 16 = 65.6

Unit 4 Unit 32
8.0 x .80 = 6.4 4.1 x .80 = 3.3
6.4 x 4 = 25.6 3.3 x 32 = 105.6

Unit 8
Unit 64
6.4 x .80 = 5.1
3.3 x .80 = 2.6
5.1 x 8 = 40.8 2.6 x 64 = 166.4
166.4 – 105.6 = 60.8 hours

which is predicted
to be the total time required for the
last 32 units
EXAMPLE
With a 50% learning curve and assuming the time required
for the first unit is 100 minutes, the average time per unit
for a total of two units is?

Two units = 100 minutes x 50% = 50 minutes


THANK YOU FOR LISTENING !!!

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