Dse

where Tc _ cumulative average labor hours for the Xth unit.

X _ cumulative units produced T1 _ direct labor hours for first unit

For the 250th unit,

From Table 18-1, the cumulative average for the 250th unit is 34,170 man-hours divided by 250, or 137 hours. We must remember that the above expression is merely an approximation. Significant errors can occur using this expression for fewer than 100 units. For large values of X, the error becomes insignificant.

It is possible to use the learning curve equation to develop Table 18-2, which shows typical cost reductions due to increased experience. Suppose that the production level is quadrupled and you are performing on an 80 percent learning curve. Using Table 18-2, the costs will be reduced by 36 percent.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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