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    Learning Curve: Management Science

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    giezele ballatan
    A learning curve, or experience curve, models how unit costs decrease as cumulative production doubles due to efficiencies gained from experience. An 80% learning curve means time required is reduced by 20% each time cumulative production doubles. For example, if the first car took 100 hours, the time would be 80 hours for 2 cars, 64 hours for 4 cars, and so on. Given an 80% curve, if 100 units took 3 minutes each, or 300 minutes total, the time required would decrease by 20% each subsequent doubling of units up to the 8th batch.

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    Learning Curve: Management Science

    Uploaded by

    giezele ballatan
    116 views7 pages
    A learning curve, or experience curve, models how unit costs decrease as cumulative production doubles due to efficiencies gained from experience. An 80% learning curve means time required is reduced by 20% each time cumulative production doubles. For example, if the first car took 100 hours, the time would be 80 hours for 2 cars, 64 hours for 4 cars, and so on. Given an 80% curve, if 100 units took 3 minutes each, or 300 minutes total, the time required would decrease by 20% each subsequent doubling of units up to the 8th batch.

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    Learning-Curve

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    A learning curve, or experience curve, models how unit costs decrease as cumulative production doubles due to efficiencies gained from experience. An 80% learning curve means time required is reduced by 20% each time cumulative production doubles. For example, if the first car took 100 hours, the time would be 80 hours for 2 cars, 64 hours for 4 cars, and so on. Given an 80% curve, if 100 units took 3 minutes each, or 300 minutes total, the time required would decrease by 20% each subsequent doubling of units up to the 8th batch.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    116 views7 pages

    Learning Curve: Management Science

    Uploaded by

    giezele ballatan
    A learning curve, or experience curve, models how unit costs decrease as cumulative production doubles due to efficiencies gained from experience. An 80% learning curve means time required is reduced by 20% each time cumulative production doubles. For example, if the first car took 100 hours, the time would be 80 hours for 2 cars, 64 hours for 4 cars, and so on. Given an 80% curve, if 100 units took 3 minutes each, or 300 minutes total, the time required would decrease by 20% each subsequent doubling of units up to the 8th batch.

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    of 7

    Learning

    Curve

    Management Science
    Learning Curve/Experience Curve
    - A mathematical expression of the phenomenon that
    incremental unit costs to produce (or incremental unit
    time used to produce) decrease as managers and labor
    gain experience from practice

    - The learning curve model shows a constant


    percentage reduction (usually from 20% to 40%) in
    the average direct labor direct labor input time
    required per unit as the cumulative output doubles
    Illustrative Problem 1
    An 80% learning curve means that each time
    cumulative production is doubled, the time required to
    produce is reduced by 20%. Assume that the first unit
    (production of 1 car) takes 100 hours to finish. Each
    time cumulative production is doubled, the average
    time required will be as follows:
    Illustrative Problem 2
    Given an 80% learning curve model, if the average
    time for 100 units (1 batch) were 3 minutes per unit,
    the total time would be 300 minutes. Prepare the
    schedule of average time required up to 8th batch.

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