Analyzing this phenomenon is done
under learning curves with the use of a mathematical model
Learning percentage is the percentage
by which the total cumulative time taken would reduce when the output level is
doubled
Example, If the time taken to
produce one unit is ‘t’ and the learning curve is 80%
According to the definition above when
producing 2 units, the average time taken for one unit would be,
It is important to understand that
this is the average of producing the 2 units
So the total time taken to produce
both units would be, t * 80% * 2
Using this method we are able to
calculate the times taken to produce when the output level is doubled only.
Learning curve plotted in respect with cum.average time per unit versus number of units |
This linear relation could be used
to derive the formula below
Learning curve formula
Where Y – Cumulative average time
taken per unit
a
= Total time taken for the first unit
X
= total number of units
Learning curve becomes essential
when calculating time taken when the output level cannot be achieved by
doubling the first output level (as done previously)
It is important to keep in mind
that, the solution we get to Y is the cumulative average of the time taken for
one unit,
It is NOT the time taken to produce
the last unit
If the time taken to produce the
last unit is needed, we will have to follow the bellow method,
Example: Assume we need to calculate the time taken to produce the n’th unit, the first unit took t’ amount of time. And the leaning curve is 80%
Now we know the time taken to produce n units. If we find the time to produce n-1 units, the difference between them should effectively give us the time taken to produce the n’th unit.
There for the time taken to produce the nth unit = time taken for n units – time taken for n-1 units
This done by variables would seem quiet comprehensive, but when solving a question with given figures following these steps logically is quite simple. Try to grasp the concept of how we arrived at the solution.
Uses of the learning curve
- In circumstances where the learning curve is likely to apply like complex assembly operations
- When preparing budgets the effect of the learning curve should be considered
- Can be used as a rational basis for price negotiation and cost control
Important points to keep in mind when faced with a learning curve problem
- Learning curve is concerning the reduction of time per unit, NOT the cost per unit
- If labour is working in a machine set phase, for an example in a belt driven lineup, there is no possibility for learning curve to exist
- Learning is assumed to automatic, but the attitudes of the management and the commitment of the workforce would have a great impact in achieving this
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