This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 1460.78 73.04 Coefficient, A--> Exponent, B--> Improvement Rate--> Learning Rate--> <--Note: Everytime the quantity doubles, the previous doubled unit cost is multiplied by the learning rate. Typical Learning Rates are 96% for raw materials to 75% for repetitive electrical operations with most values around 80-90% Unit Number (quantity produced, pieces) Unit Cost (hrs/pc) Cum Total Cost (hrs) Cum Average Cost (hrs/pc) http://www.barringer1.com/pdf/PredictFutureFailures.pdf R--> The beta value < 1 tells you fewer hours/piece are being expended R^2 = 0.989 for goodness of fit...
View Full Document
This note was uploaded on 12/28/2011 for the course SCM 372 taught by Professor Cook during the Fall '11 term at Michigan State University.
- Fall '11