Chapter 4 - Learning Curves

Question 1

Learning curves

Answer 1

mathematical expression of the commonly observed effect that as procedures are repeated unit labour times tend to decrease

Learning improves until the steady state
Std cost setting should only take place with steady state
Work scheduling should consider learning curve effects

Required conditions:

• labour intensive
• repetitive
• low labour turnover

Experience curves include labour PLUS material, overheads, fixed overheads

Question 2

Learning curve formula

Answer 2

Y = a*x^b

y = average labour hours per unit
a = number of labour hours for first unit
x = cumulative