MODULE E - MODULE E: LEARNIN G CURVES 4. The earliest...

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MODULE E: LEARNIN G CURVES 1. Experi ence curves may be valid for industr ial applic ations, but have no role in service s such as health care proced ures. False (Introducti on, easy) 2. Experience curves are the opposite of learning curves— as one rises, the other falls. False (Introducti on, easy) 3. Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated. True (Introduction, moderate) 4. The earliest application of learning curves appears in the work of architect Frank Lloyd Wright. False (Introduction, easy) 5. Learning curves can only be applied to labor. False (Introduction, moderate) 6. If the learning rate for a process is 100 percent, then each unit in a series of units will have the same labor requirements. True (Introduction, moderate) 7. If the first unit in a series of units takes 200 days to complete, and the learning rate is 80%, then the second unit will take 160 days. True (Introduction, easy) {AACSB: Analytic Skills} 8. An 80% learning curve means that with each unit increase in production, labor requirements fall by 20%. False (Introduction, moderate) 9. A 90% learning curve implies that each time the production volume is doubled the direct time per unit is reduced to 90% of its previous value. True (Introduction, easy) 10. The learning rate in the steel industry and the learning rate in heart surgery have both been estimated at 79 percent. True (Introduction, and Learning curves in services and manufacturing, moderate) 11. A project manager bases his time and labor estimates on a learning rate of 86%. The actual learning rate turns out to be 89%. The manager, because of the decreased learning, will complete his project in more time and with more labor use. True (Learning curves in manufacturing and services, moderate) 12. The learning curve may not be permanent; it can be disrupted by changes in process, personnel, or product. True (Learning curves in services and manufacturing, moderate) 5 6 5
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13. Learning curves can be used to establish budgets. True (Learning curves in services and manufacturing, moderate) 14. The arithmetic approach (or successive doubling approach) to learning curve calculations allows us to determine the hours required for any unit. False (Applying the learning curve, moderate) 15. The logarithmic approach to learning curve calculations allows us to determine the hours required for any unit. True (Applying the learning curve, moderate) 16. The learning curve coefficient approach may be simpler to use than the logarithmic approach, but it requires the presence of a table of learning coefficients. True (Applying the learning curve, moderate) 17. In the formula T N =T 1 N b for the learning curve, the exponent b is the learning rate, expressed as a decimal. False
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MODULE E - MODULE E: LEARNIN G CURVES 4. The earliest...

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