BCE Module 8 Learning Curve.pdf - Learning Curves Learning Curves index | page 1 of 39 Module 8 title screen with three photos a learning curve graph a

# BCE Module 8 Learning Curve.pdf - Learning Curves Learning...

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Learning Curves Learning Curves index | page 1 of 39 Module 8 title screen with three photos: a learning curve graph, a calculator, and a historical learning curve graph. Module Overview lcurves_010 | page 2 of 39 As employees perform a task over and over, they may get better at it and become more efficient. Employees may become more physically adept, find a better way to organize the task, use better tools, or simply learn from mistakes. That’s the basic concept of the learning curve. To print this module, select print *.

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Module Objectives lcurves_015 | page 3 of 39 In this module, Learning Curves , you will learn the concepts of applying the learning curve theory to cost estimating. At the completion of this module, you will be able to: Describe the effects of quantity on the estimating process Interpret the components of the unit learning curve equation and how they are calculated Calculate the cost of a unit using the unit learning curve formulation Develop the equation of a learning curve from a data set Calculate the total cost or average cost of a lot using a unit formulation table Your Task: Develop a Learning Curve lcurves_025 | page 4 of 39 There is a lot of interest from different communities in the capabilities of the Optical Wide-Angle Lens Surveillance (OWLS) System and additional systems may soon be needed to meet their requirements. You have been tasked with taking on the role of the cost estimator and have been asked to develop a learning curve using systems components and assembly hours. This will assist the Program Manager (PM) in determining the impact of purchasing additional systems on the yearly budget. Let's take a look at some possible methodologies used in determining learning curves.
Topic Introduction: Learning Curves lcurves_030 | page 5 of 39 Consumers generally believe that buying goods or services in bulk will increase the total cost, but decrease the cost per unit. This may result from fixed costs being amortized over a larger number of units, or simply from changes in the manufacturing process. Whether this is due to learning, improvement, progress, or experience, the basic premise is that, under the right conditions, the recurring costs will decrease in some type of a regular pattern. This is usually due to the application of repetitive actions or processes, such as those directly tied to producing an item again and again. As learning is applied, unit cost decreases in a predictable way and the reduced cost can then be passed onto the consumer. This idea or expectation forms the basis of the learning curve theory. In this topic, you will learn: The basic concept of learning curve theory The two formulations of learning curve theory: unit formulation and cumulative average formulation Learning curve effects on quantity

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Learning Curve Theory lcurves_040 | page 6 of 39 When we estimate the cost or price of an item, whether it is based on a detailed cost build-up, an analogy, catalog price, or a cost estimating relationship, the cost or price may also not address the effect of quantity. One
• Fall '18
• Learning curve, Experience curve effects, Unit Formulation

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