Krajewski IN Supplement G - Supplement G Learning Curve...

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Supplement G Learning Curve Analysis A. The Learning Effect 1. Organizational learning a. Automation b. Productivity improvements Better processes Individual learning 2. Learning effect a. Learning curve displays the relationship between the total direct labor per unit and the cumulative quantity of product or service produced. b. Sometimes called manufacturing process function or experience curve , but principles are the same 3. Background a. First developed in aircraft industry. Each doubling of quantity reduced per-unit production time by 20%. b. Rate of learning may be different for different products and different companies. 4. Learning curves and competitive strategy a. Learning curves enable managers to project the manufacturing cost per unit for a given cumulative production quantity. b. Product design changes disrupt the learning effect. c. Firms making standardized services or products compete on low cost, and use high volume to quickly move costs down the learning curve. Low
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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 IN Supplement G - Supplement G Learning Curve...

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