Learning Curves

Question 1

What are Learning Curves Concerned with?

Answer 1

Speed and efficiency works operate at.
The first time a new task is performed, labour is unfamiliar and is slow. Thereafter, labour becomes more familiar and faster, efficiency increases.
Labor unit cost reduces.
Rate of decline continues until a steady state is reached.

Question 2

What is the Learning Curve Phenomenon?

Answer 2

Concerns cumulative production overtime.
Recognises that each time no. units produced doubles, cumulative average time per unit reduced by a constant %.

Question 3

When is Learning Curve Applied?

Answer 3

Production of items where the following features apply:
* Process is largely a labour process
* New process or short-lived
* Process is complex and made in small quantities for special orders. (Simpler processes = less marked learning curve)
* Labour replaced with automation = altered learning cur

Question 4

Learning Curve Formula:

Answer 4

Y_x= aX^b

Y_x = average time per unit of cumulative production units
X = cumulative no. of units
a = time for first unit
b = ratio of logarithm of the learning curve/factor

Question 5

How to Calculate “b” From the Learning Curve Formula?

Answer 5

log of learning curve factor expressed as a decimal / log2