Learning curve theory

Question 1

relationship between the number of units produced and the time taken to produce individual units

Answer 1

the cumulative average time per unit produced falls by a constraint percentage every total output of the product doubles

Question 2

formula for b (in y=ax^b)

Answer 2

log ( leaning rate ) / log ( 2 )

Question 3

limitations of learning curve

Answer 3

• may have limited observations to use to calculate the learning rate. this may not be sufficient to predict higher numbers of units.
• learning rate may not be constant and thus an average calculated in this way will not be accurate.
• staffer working practices may change during the production process and alter the learning rate.