Learning Curve A B Answers

Learning Curve A B Answers - Case Discussion: Learning...

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This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 1 Case Discussion: Learning Curve “A” This material applies to the Learning Curve A and B cases. Learning curves are mathematically devised curves used to adjust work time estimates to reflect the reduction of time needed to complete a job as workers gain experience. As individuals repeat a task, they gain experience from ± Familiarity with the basic task ± Familiarity with procedures ± Improved manual dexterity ± Familiarity with co-workers ± Establishment of a rhythm ± Reduction in errors Learning curve analysis is based on the logic that organizations (and individuals within those organizations) learn how to reduce unnecessary movement, use of tools, and materials as volumes increase. These workers generally learn easier and more efficient ways of doing jobs. Learning curve focuses primarily on the direct labor component of production. Three assumptions underlie the use of learning curves: (1) The time required to complete a given task or unit of a product will be less each time the task is undertaken (2) The unit time will decrease at a decreasing rate (improvement is not steady unit to unit) (3) Reduction in time will follow a predictable pattern. Because it is predictable, we can develop estimates. Learning curves exhibit the “doubling effect.” Whenever the total quantity of units produced doubles, the cumulative average time per unit declines by a constant percentage, which is the learning rate. Two popular ways to think about improved performance that comes with learning curves: (1) Time per unit -- this shows the decrease in time required to produce a successive unit. For example, a buyer purchases a piece of capital equipment. While this may be the buyer’s first purchase of this equipment, it is not necessarily the producer’s. Therefore the buyer wants to estimate, using the appropriate learning rate, the cost at the producer’s xth unit.
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This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 2 (2) Cumulative average time -- shows the cumulative average performance times as the total number of units increases. For example, a buyer sources a new component with a supplier (the supplier has never produce that component). As production volumes increase, learning is taking place, resulting in a cumulative lower rate. This is the approach used in case “A” and “B.” Knowing when and where to apply learning curves is important. Learning curve theory is applicable when used for new products or processes that have a high potential for improvement. Learning curve probably offers limited use for standard times that a supplier has produced
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This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.

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Learning Curve A B Answers - Case Discussion: Learning...

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