Krajewski SN Supplement G - Supplement G Learning Curve...

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Supplement G Learning Curve Analysis A. The Learning Effect 1. Organizational learning 2. Learning effect 3. Background 4. Learning curves and competitive strategy a. Can project the manufacturing cost per unit for a given cumulative production quantity. b. Product design changes disrupt the learning effect. c. Using volume to quickly move down the learning curve, discouraging competitors from entering the market. B. Developing Learning Curves 1. The direct labor required for the n th unit k n , is b n n k k 1 = where k 1 = direct labor hours for the 1 st unit n = cumulative number of units produced 2 log log r b = r = learning rate Example G.1 SN:G-1
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SN:G-2 Supplement G: Learning Curve Analysis 2. Assumptions a. b. c. 3. Application G.1: Estimating Direct Labor Requirements The first unit of a new product is expected to take 1000 hours to complete. If the rate of learning is 80 percent, how much time should the 50th unit take? C. Using Learning Curves
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This note was uploaded on 12/19/2009 for the course MANAGEMENT 00123 taught by Professor Ahmed during the Spring '09 term at Albany College of Pharmacy and Health Sciences.

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Krajewski SN Supplement G - Supplement G Learning Curve...

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