An activity is known to have an 80 percent learning curve. It has taken a worker 10 hours to produce the first unit. Determine expected completion times for these units: the 2nd, 4th, 8th, and 16th (note successive doubling of units).
Each time the cumulative output doubles, the time per unit for that amount should be approximately equal to the previous time multiplied by the learning percentage (80 percent in this case). Thus:
Unit | Unit Time (hours) |
1 | = 10 |
2 | .8(10) = 8 |
4 | .8(8) = 6.4 |
8 | .8(6.4) = 5.12 |
16 | .8(5.12) = 4.096 |