Learning Curves

Learning curves reflect the increased rate at which people perform tasks as they
gain experience. The time required to perform a given task becomes progressively shorter
but this technique is only applicable to the early stages of production or of any new tasks.

The curve is expressed in percentage of reduced time to complete a task for each
doubling cumulative production. Research shows that learning curve percentages are to be
between 60% and 80%. In other words, the time required is reduced by 20% to 40% each
time cumulative production is doubled.

Uses of Learning Curve:

1. Preparing cost estimates for bidding purposes
2. Setting standards and budget allowances
3. Scheduling labor requirements
4. Evaluating performance by comparing progress reports with the accomplishments
anticipated under the learning curve
5. Setting incentive wage rates with due consideration for the fact that labor times will
normally be reduced as the workman becomes more experienced.

One common assumption made in learning curve model is that the cumulative average
time per unit is reduced by a certain percentage each time production doubles.

Example:
Given an 80% learning curve model based on the first assumption stated above, the
following performance is expected during the early stages of manufacture of a new
product.

Cumulative Number of Tasks Cumulative Average time per unit

100 3.0
200 ?
400 ?
800 ?
1600 ?

To answer the problem, we need to know the Cumulative Average Time per unit as the
number of production doubles.
 Cumulative Number of Tasks Cumulative Average time per unit

100 3.0
200 2.4 (3.0 x 80%)
400 1.92 (2.4 x 80%)
800 1.536 (1.92 x 80%)
1600 1.228 (1.536 x 80%)

Next thing to do is to graph the date we gathered with respect to its productivity and
experience.

Productivity

Experience

Meaning, if the average time for 100 units were 3 minutes per unit, the total time would be
300 minutes. At an average time of 2.4 minutes for 200 units, the total time would be 480
minutes.

I therefore conclude that, the additional 100 units required only 180 minutes (480-300),
or 1.8 minutes per unit.
 Written
Report
Learning
Curves
Submitted by: Melissa C. Abdul Karim