7/31/2019 Session IV Learning Curve

1/21

7/31/2019 Session IV Learning Curve

2/21

A Learning curve shows the relationship between the cost of

producing an item or performing a task and the number of units

produced or task performed over time.

OR

The term learning curve refers to a graphical representation of

the changing rate of learning for a given activity or tool.

7/31/2019 Session IV Learning Curve

3/21

7/31/2019 Session IV Learning Curve

4/21

TIME

EFFICIENCY/SPEED

1 hr

45 mins

30 mins

1st task

2nd

task

3rd task

7/31/2019 Session IV Learning Curve

5/21

COST

(inthousand

rs)

EFFICIENCY

25

23

5

4

PIECE 1

PIECE 2

7/31/2019 Session IV Learning Curve

6/21

TIME

EFFICIENCY

2 hrs

1hrs 30 mins

1 hr

TASK 1

TASK 2

TASK 3

7/31/2019 Session IV Learning Curve

7/21

1885:German psychologist Hermann Ebbinghaus coined the termduring his research on memory and memorization.

1930:Learning curves were first used by the aircraft industry . TheBoeing Co. pioneered the discipline when it discovered thatthe cost to build new airplanes was highly predictable.

1936 :At Wright-Patterson Air Force Base in the United States, itwas determined that every time total aircraft productiondoubled, the required labour time decreased by 10 to 15percent.

7/31/2019 Session IV Learning Curve

8/21

Airplane Industry.

Theodore Paul Wright in 1936.

Number of Airplane Cost of production

First New Airplane $ 100 Million

Second Airplane $ 80 Million

Third Airplane $ 64 Million

Fourth Airplane $ 51 Million

The more the airplane produced, the lesser the cost of production

7/31/2019 Session IV Learning Curve

9/21

7/31/2019 Session IV Learning Curve

10/21

The learning curve effect states that the more often a task is

performed ,the less time will be required for each iteration.

Eg: Aircraft manufacturingShip building

Bridge construction

Chemical/cement projects

New product development

7/31/2019 Session IV Learning Curve

11/21

Application

Business

Service Manufacturing

Non-Business

7/31/2019 Session IV Learning Curve

12/21

Labour efficiency

Standardization, Specialization, and methods improvements

Technology-Driven Learning

Changes in the resource mix

Value chain effects

flat og gradual learning curveflat og gradual learning curve

7/31/2019 Session IV Learning Curve

13/21

LEARNING CURVE

STEEP

LEARNING

CURVE

FLAT OR

GRADUAL

LEARNING

CURVE

POSITIVE

LEARNING

CURVE

NEGATIVE

LEARNING

CURVE

.flat og gradual learning curve.flat og gradual learning curve

7/31/2019 Session IV Learning Curve

14/21

Faster learning rate

Large gain of knowledge in early stage

Rules are simple and

quickly learned

Examples: chess, Sports

7/31/2019 Session IV Learning Curve

15/21

Rate of knowledge is slowly spaced

Gives ample time to imprint procedure and skills

eg: a new entrepreneur or businessman

7/31/2019 Session IV Learning Curve

16/21

Learning slowly at first

Learning is accelerating

Low forgetting rate

Low employee turn-over

in company

7/31/2019 Session IV Learning Curve

17/21

Learning progresses at first and is slow later on.

Learning rate is slow.

High forgetting rate.

High employee

turn-over in company.

7/31/2019 Session IV Learning Curve

18/21

7/31/2019 Session IV Learning Curve

19/21

Labour learns as it works, and the more a worker

repeats a given task, the more efficient the worker willbecome

- Hartley(1965)

7/31/2019 Session IV Learning Curve

20/21

7/31/2019 Session IV Learning Curve

21/21