Performance Improvement Learning (Improvement of Performance) = Reduced Production Time and/or Reduced Errors Learning = Individual + Organizational (Manufacturing Progress)
Learning Curves Theory As people gain experience performing a task, the time it takes to complete the task decreases. Specifically, as the accumulated number of units doubles, the time required to produce a unit declines at a constant rate. Note: Cognitive Learning > Manual Learning
Learning Curve Equations Hyperbolic Yx = KXN Logarithmic log Yx = log K + N log X Yx K X N = = Cumulative Average Time to Produce X Units Time Required to Produce the First Unit Cumulative Total Number of Units Produced Exponent of the Learning Curve Slope (tan q)
Notes LC % = 2 N where N = tan q New Production Time (Cost) = LC % x Old As total number of production units increases and/ or average production time per unit decreases, q (tan q) decreases which implies LC % increases. Shallow learning curves (higher LC %) means relatively limited cost savings.
Learning Curve Solutions Click for Solutions Generator
Food for Thought Was it Agatha Christie’s Inspector Poirot or maybe Dr. Watson’s comment to Sherlock Holmes “we often go more quickly by going more slowly”. Maxim for Computer-Aided Statistical Analysis Garbage In = Gospel Out