In the cumulative average-time learning model, cumulative average time per unit declines by a constant percentage each time the cumulative quantity of units produced doubles. Consider Rayburn Corporation, a radar systems manufacturer. Rayburn has an 80% learning curve. This means that when Rayburn doubles the quantity of units produced, from X to 2X, the cumulative average time per unit for 2X units is 80% of the cumulative average time per unit for X units. In other words, the average time per unit drops by Exhibit 10-11 shows the calculations for the cumulative average-time learning model for Rayburn Corporation. Note that as the number of units produced doubles from 1 to 2 in column A, the cumulative average time per unit declines from 100 hours to 80% of 100 hours in column B. As the number of units doubles from 2 to 4, the cumulative average time per unit declines to 80% of and so on. To obtain the cumulative total time in column D, multiply the cumulative average time per unit by the cumulative number of units produced. For example, to produce 4 cumulative units would require 256 labor-hours .

Details of the spreadsheet are as follows:
Cumulative number of units (X): 1
(A) Cumulative average time per unit–Labor-hours: 100.00
(B) Cumulative total time–Labor hours: 100.00
(C) Individual unit time for 1st unit–Labor-hours: 100.00
Cumulative number of units (X): 2
(A) Cumulative average time per unit–Labor-hours: 80.00 (product of 100 and 0.8)
(B) Cumulative total time–Labor hours: 160.00
(C) Individual unit time for 2nd unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 60.00
Cumulative number of units (X): 3
(A) Cumulative average time per unit–Labor-hours: 70.21
(B) Cumulative total time–Labor hours: 210.63
(C) Individual unit time for 3rd unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 50.63
Cumulative number of units (X): 4
(A) Cumulative average time per unit–Labor-hours: 64.00 (product of 80 and 0.8)
(B) Cumulative total time–Labor hours: 256.00
(C) Individual unit time for 4th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 45.37
Cumulative number of units (X): 5
(A) Cumulative average time per unit–Labor-hours: 59.56
(B) Cumulative total time–Labor hours: 297.82
(C) Individual unit time for 5th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 41.82
Cumulative number of units (X): 6
(A) Cumulative average time per unit–Labor-hours: 56.17
(B) Cumulative total time–Labor hours: 337.01
(C) Individual unit time for 6th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 39.19
Cumulative number of units (X): 7
(A) Cumulative average time per unit–Labor-hours: 53.45
(B) Cumulative total time–Labor hours: 374.14
(C) Individual unit time for 7th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 37.13
Cumulative number of units (X): 8
(A) Cumulative average time per unit–Labor-hours: 51.20 (product of 64 and 0.8)
(B) Cumulative total time–Labor hours: 409.60
(C) Individual unit time for 8th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 35.46
Cumulative number of units (X): 9
(A) Cumulative average time per unit–Labor-hours: 49.29
(B) Cumulative total time–Labor hours: 443.65
(C) Individual unit time for 9th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 34.05
Cumulative number of units (X): 10
Cumulative average time per unit–Labor-hours: 47.65
(A) Cumulative total time–Labor hours: 476.51
(B) Individual unit time for 10th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 32.86
Cumulative number of units (X): 11
(A) Cumulative average time per unit–Labor-hours: 46.21
(B) Cumulative total time–Labor hours: 508.32
(C) Individual unit time for 11th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 31.81
Cumulative number of units (X): 12
(A) Cumulative average time per unit–Labor-hours: 44.93
(B) Cumulative total time–Labor hours: 539.22
(C) Individual unit time for 12th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 30.89
Cumulative number of units (X): 13
(A) Cumulative average time per unit–Labor-hours: 43.79
(B) Cumulative total time–Labor hours: 569.29
(C) Individual unit time for 13th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 30.07
Cumulative number of units (X): 14
(A) Cumulative average time per unit–Labor-hours: 42.76
(B) Cumulative total time–Labor hours: 598.63
(C) Individual unit time for 14th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 29.34
Cumulative number of units (X): 15
(A) Cumulative average time per unit–Labor-hours: 41.82
(B) Cumulative total time–Labor hours: 627.30
(C) Individual unit time for 15th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 28.67
Cumulative number of units (X): 16
(A) Cumulative average time per unit–Labor-hours: 40.96 (product of 51.20 and 0.08)
(B) Cumulative total time–Labor hours: 655.36
(C) Individual unit time for 16th unit–Labor-hours (calculated by subtracting the cumulative total time with the previous): 28.06
Note: The mathematical relationship underlying the cumulative average-time learning model is as follows:
y equals a times X superscript b
where y equals Cumulative average time (labor-hours) per unit
X equals Cumulative number of units produced
a equals Time (labor-hours) required to produce the first unit
b equals Factor used to calculate cumulative average time to produce units
The value of b is calculated as
The quotient of log natural (learning-curve % in decimal form) and log natural (2)
For an 80% learning curve, b equals log natural 0.8 divided by log natural (2) which equals negative 0.2231 divided by 0.6931 which equal negative 0.3219,
For example, when X equals 3, a equals 100, b equals negative 0.3219,
y equals 100 times 3 raised to (0.3219) which equals 70.21 labor-hours
The cumulative total time when X equals 3 is 70.21 times 3 which equals 210.63 labor-hours.
Numbers in table may not be exact because of rounding.