As an example, consider a situation where the first unit requires 812 hours and the company is performing on a 75 percent learning curve. The man-hours required for the 250th unit would be:
This agrees with the data in Table 18-1.
Sometimes companies do not know the time for the first unit. Instead, they assume a target unit and accompanying target man-hours. As an example, consider a company that assumes that the standard for performance will be the 100th unit, which is targeted for 120 man-hours, and performs on a 75 percent learning curve. Solving for T1 we have:
This is in approximate agreement with the data in Table 18-1. The cumulative average number of labor hours can be approximated from the expression
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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.