MGT 302 Chapter 4A: Learning Curves
8 Jan 2017
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Document Summary
The learning curve (tlc)- a line displaying the relationship between the cumulative number of units produced and the time or cost to produce the unit. Tlc maps the relationship between unit production time and the cumulative number of units produced. 1) the amount of time required to complete a given task or unit of a product will be less each time the task is undertaken. 2) the unit time will decrease at a decreasing rate. 3) the reduction in time will follow a predictable pattern. These curves are useful for estimated the time required to produce a product and to estimate cost. It is particularly useful for large-scale, capital- and labor-intensive products, such as airplanes. The fundamental idea is that as output doubles, there is a fixed percentage reduction in the time needed to produce each unit. Learning can be due to improvements as people repeat a process and gain skill.
