Learning Objectives
E-1: Define the concept of learning curves.
The phenomenon of reduction in time required to perform an activity when that activity is repeatedly performed by a worker is called the concept of learning curves.
E-2: Identify the various ways to apply learning curves for operations processes.
Applications of the concept of learning curves are prevalent in both manufacturing and service organizations. In addition, learning curves can be applied in operations and supply chain processes such as workforce planning and scheduling, cost estimation and budgeting, procurement negotiations in supply chains, and new product pricing.
E-3: Apply various approaches to solving learning curve problems.
Problems involving learning curves can be solved using three approaches. These are the arithmetic approach, the logarithmic formula approach, or by using a table of learning curve coefficient values.
E-4: Implement learning curves for cost estimation problems.
In many business processes and projects, the learning curve effect shows savings in time as a function of the sheer repetition of activities. Therefore, cost estimates of activities and budgets can be revised to account for savings as a result of learning curve effects.
E-5: Discuss the advantages and limitations of learning curves.
Although learning curves can be applied to a wide variety of business processes in both manufacturing and service organizations, they do have some limitations. Some of these limitations include the need to estimate learning rates using empirical data, the accuracy of activity time estimates, changes in learning due job redesign, and so forth.