Answer:
65 %
Explanation:
Efficiency increases as the same task is performed repeatedly and thus the time required to complete the task reduces. The percentage reduction in the time required to complete the task is known as the learning-curve rate.
Step 1
Determine the Cumulative Production Quantity
This is the total number of units made since the first unit
1st unit = 1 unit
7th unit = 8 units
Step 2
Determine the Cumulative Time per unit
This is the the total of the individual time per unit of all made to date
1st unit = 200 hours
7th unit = 200 + 60 = 260 hours
Step 3
Determine the average time per unit
This is the cumulative time per unit divided by cumulative production quantity
1st unit = 200 hours ÷ 1 = 200 hours
7th unit = 260 hours ÷ 2 = 130 hours
Step 4
Calculate Learning curve rate
130 hours / 200 hours × 100 = 65 %
Conclusion :
Therefore, the learning-curve rate during production is 65 %