GMS 401 Lecture Notes - Lecture 6: Shared Experience, Experience Curve Effects
16 Jan 2017
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Learning usually occurs when humans are involved. Predict how learning will affect task times and task costs. The premise that people and organizations get better at their tasks as the tasks are repeated. Time per repetition decreases as the number of repetition increases. Takes less time to complete each additional unit a firm produces. Pre-production factors: selection of appropriate tooling and equipment, proper design (product/service and testing, amount of effort spent prior to the start of the work (e. g. appropriate instruction, guidelines) Changes after production has begun: methods, layout, tooling, support services, design. T x ln = time required for the nth unit: t = unit cost or unit time of the 1st unit, l = learning curve rate, n = number of times t is doubled. An activity is known to have a 70% learning curve. It has taken a worker 10 hours to produce the 1st unit. Determine completion times for the 2nd, 4th, 8th and 16th units.
