Learning Curve Analysis

Correct Answer: As cumulative units increase, unit cost decreases at a predictable rate

Learning Curve Analysis demonstrates that as workers repeatedly perform a task, they become more efficient, resulting in decreased unit costs. The relationship follows a predictable, non-linear pattern where the rate of improvement diminishes over time but continues to show incremental gains. The learning curve typically shows that each time cumulative production doubles, the unit cost decreases by a constant percentage. This is known as the learning rate. The other answers are incorrect because: - A linear decrease would suggest constant improvement, which is unrealistic as the rate of learning slows over time - There is no evidence supporting a plateau at the midpoint of production; improvements continue though at a diminishing rate - The pattern is not random but follows a predictable curve based on documented learning principles and empirical evidence from numerous studies

Correct Answer: 80% learning curve

In Learning Curve Analysis, when production time decreases by 20% each time production quantity doubles, this precisely defines an 80% learning curve. Here's why: - The learning curve percentage represents the remaining time after the reduction - When production quantity doubles, time reduces by 20% - Therefore, the remaining time is 80% of the original time - This makes it an 80% learning curve The other answers are incorrect because: - A 90% learning curve would mean only a 10% reduction in time - An 85% learning curve would mean a 15% reduction in time - A 75% learning curve would mean a 25% reduction in time Since we are specifically told there is a 20% reduction, the 80% learning curve is the only correct answer.

Correct Answer: Performance improves at a predictable rate as tasks are repeated

Learning Curve Analysis operates on the fundamental principle that performance improves at a predictable rate when tasks are repeated over time. This is based on the established theory that workers become more efficient through repetition and familiarity. The correct answer captures the core essence of Learning Curve Analysis - the predictable rate of improvement. This predictability allows project managers to accurately forecast future performance and schedule activities. The other answers are incorrect because: - Performance improvements do not vary based on team experience levels in Learning Curve Analysis; the rate follows a predictable pattern - The decrease in task duration is not a fixed percentage but follows a logarithmic curve - The improvement pattern is not linear but follows a curved pattern, with steeper improvements initially that gradually level off