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Lecture 6

GMS 401 Lecture 6: GMS 401 Lecture 6/ Powerpoint notes

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Department
Global Management Studies
Course Code
GMS 401
Professor
Payman Ahi

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GMS 401 Lecture 6
Outline
Learning Curves Concept
Learning-Curve Effect
Applying the Learning Curve
Strategic Implications of Learning Curves
Limitations of Learning Curves
Learning Curves Concept
Learning usually occurs when humans are involved
Basic Consideration in work/job design
Predict how learning will affect:
Task Times and Task Costs
Typical Scientific Management Approach in Designing
o Breaking Job to set of Tasks Breaking each Task into sequence of
Elements Breaking each Element into a sequence of Motions
Human Performance: improves when activities are done repetitively
Time: Required to perform a task decreases with increasing repetitions
= Learning Curves: Shows this phenomenon
Learning Curves: (Sometimes called Experience Curves)
The premise that people and organizations get Better at their tasks as the
tasks are repeated
Learning- Curve Effect
Time per repetition decreases as the number of repetition increases.
Takes less time to complete each addition unit a firm produces
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Learning-Curve Effect.
0 Number of repetitions (volume)
Hours required for unit 4= 10 x (0.7)2 = 4.9
Learning curves are useful for a variety of purposes. These include:
o Internal: Labour forecasting, scheduling, establishing costs and
budgets
o External: Supply- chain negotiations
o Strategic: Evaluation of company and industry performance,
including costs and pricing.
Factors Affecting Learning
o Actual worker learning
Increasing skills, reducing rework, etc.
o Actual worker learning
Increasing skills, reducing rework, etc.
o Pre-production factors
Selection of appropriate tooling and equipment
Proper design (product/service, and testing)
Amount of effort spent prior to the start of the work
(e.g., Appropriate instructions, guidelines, etc.)
o Changes after production has begun
Methods
Layout
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Tooling Support services
Design (product/service, and testing)
o Management input
Improvements in planning, scheduling, motivation, and
controlling
Basic of the Learning Curve Concept
o Every Doubling of Units Produced A constant percentage decrease
in the time per unit
o T x Ln = Time required for the nth unit.
o Where:
o T= Unit cost or unit time of the 1st unit
o L= Learning curve rate
o N= Number of times T is doubled
Learning-Curve Effect
o Example 1: An activity known to have 70% learning curve. It has
taken a worker 10 hours to produce 1st unit. Determine expected
completion times for the 2nd, 4th, 8th, and 16th units.
Unit
Unit Time
1
10
2
0.7(10)=7
4
0.7(7)=4.9
8
0.7 (4.9)=3.43
16
0.7(3.43)=2.4
o Time reduction per unit becomes smaller and smaller as the
Number of units produced increases
Learning-Curve Effect
70% Learning Curve: 30% decrease in unit time with each doubling of units
produced
90% Learning Curve: Corresponding 10% rate of improvement
Learning Percentage:  “lope of the Learning Cure (i.e., Loer the
number, the steeper the slope, and hence, the faster the drop in
time/costs)
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Description
GMS 401 Lecture 6 Outline Learning Curves Concept LearningCurve Effect Applying the Learning Curve Strategic Implications of Learning Curves Limitations of Learning Curves Learning Curves Concept Learning usually occurs when humans are involved Basic Consideration in workjob design Predict how learning will affect: Task Times and Task Costs Typical Scientific Management Approach in Designing o Breaking Job to set of Tasks Breaking each Task into sequence of Elements Breaking each Element into a sequence of Motions Human Performance: improves when activities are done repetitively Time: Required to perform a task decreases with increasing repetitions = Learning Curves: Shows this phenomenon Learning Curves: (Sometimes called Experience Curves) The premise that people and organizations get Better at their tasks as the tasks are repeated Learning Curve Effect Time per repetition decreases as the number of repetition increases. Takes less time to complete each addition unit a firm produces
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