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Learning Curves. There is often a systematic relationship between experience in performing a task and the time required to do it. The average time per task declines by a constant percentage each time the quantity of tasks done doubles. Types of Learning Curves. - PowerPoint PPT Presentation
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The average time per task declines by a constant percentage each time the quantity of tasks done doubles.
There is often a systematic relationship between experiencein performing a task and the time
required to do it.
Learning Curves
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Types of Learning Curves
•Cumulative Average-Time Learning Model – cumulative average time per unit declines by a constant percentage each time the cumulative
quantity of units produced doubles•Incremental Unit-Time Learning Model –
incremental time needed to produce the last unit declines by a constant percentage each time the
cumulative quantity of units produced doubles
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Berry Co. makes products requiring labor that follows an 80 percent learning rate. If the
first unit of such a product requires 10 hours, what is the average time for 16 units of this
product?
An 80 percent learning rate:the average time required to make 2 units is 80 percent of the time for 1 unit and the average time for 4 units is
80 percent of the time for 2 units, etc.
Effect of Learning on Cost Behavior
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AverageNumber Labor Time Total Time:of Units per Unit Average x Units
1 1 × 10 = 10 1 × 10 = 102 .80 × 10 = 8 2 × 8 = 164 .80 × 8 = 6.4 4 × 6.4 = 25.68 .80 × 6.4 = 5.12 8 × 5.12 = 40.96
16 .80 × 5.12 = 4.096 16 × 4.096 = 65.536
The graphic presentation of the learning phenomenon is called the learning curve.
Cumulative Average-Time Learning Model
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Learning Curve
Cumulative Production Output
Ave
rag
e L
abo
rT
ime
per
Un
it
Learning effectsare large initially.
Learning effectsbecome smaller, eventually reaching expected final time.
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Cumulative Production Output
Ave
rag
e L
abo
rT
ime
per
Un
it
This is used to help determine investment required.
This is used to estimate ongoing results.
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Learning Curve Formula
2ln
form decimalin % rate learningln factor Learning
produced units of no. Cumulative
1unit produce toDLH
unitper labor time average Cumulative
factor learning
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Question for Discussion 2
•Time to produce the first unit = 100 minutes•Learning factor = ln(0.80)/ln2 = -0.32193
.1What is the cumulative average time to produce 5 units?
.2What is the total time to produce 5 units?
.3What is the time it took to produce the 5th unit?
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Cum.Number Individual Unit Time Cumulative Ave. Timeof Units for X-th Unit Total Time Per Unit
1 1 × 10 = 10 10 102 0.80 × 10 = 8 10 + 8 = 18 93 7.02 18 + 7.02 = 25.02 8.344 0.80 × 8 = 6.40 25.02 + 6.40 = 31.42 7.865 5.96 31.42 + 5.96 = 37.38 7.48
Incremental Unit-Time Learning Model
Using the example of Berry Co. and using the incremental unit-time learning model