Learning Curve

What & Why of Learning Curve?

Advantages of Learning Curve?
Inferences & Conclusions
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Learning Curve
Learning Curve
Cumulative Production
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Example
Consider a product with the following data about the hours of
labor required to produce a unit:
Hours required to produce 1-st unit: 100
Hours required to produce 10-th unit: 48
Hours required to produce 25-th unit: 35
Hours required to produce 75-th unit: 25
Hours required to produce 200-th unit: 18
As more and more units are produced, the hours of labor
required to produce the most recent unit is lower and lower.
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Typical Learning Curve
Typical Learning Curve
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Confusion
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Typical Learning Curve
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Clarity
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Typical Learning Curve
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Competence
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Typical Learning Curve
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Confidence
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will assist in planning for personnel both in terms of number
and the cost.
will assist in product pricing by providing better-cost
estimates.
is used for budgeting.
can assist in cost control.
can assist in setting labour standards &
reduce labour variances.
can ensure better work scheduling & lead to
accurate delivery schedules.

ADVANTAGES OF LEARNING CURVE