GB 320 Chapter 6: GB CHAPTER 6
2 Mar 2017
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Learning curve: line displaying the relationship between unit production time and the cumulative number of units produced. Learning curve theory has a wide range of application in the business world. In manufacturing, a learning curve can be used to estimate time for production design and production, as well as costs. Learning curves are an integral part in corporate strategy, such as decisions concerning pricing, capital investments, and operating costs based on experience curves. Learning curves can be applied to individuals or organizations. Individual learning: improvements that results when people repeat a process over and over again and gain skill or efficiency from experience practice makes perfect . Organizational learning does not only come from practice, but comes from changes in administration, equipment, and product design. In organizational settings, we expect to see both kinds of learning curves happening simultaneously and often describe the combined effect with a single learning curve.
