Operations and Supply Chain Management The Core

122 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
CONCEPT CONNECTIONS
LO4A–1 Understand what a learning curve is and where learning curves are applicable.
∙ A learning curve maps the relationship between unit production time and the cumulative
number of units produced.
∙ These curves are useful for estimating the time required to produce a product and to estimate
cost.
∙ It is particularly useful for large-scale, capital- and labor-intensive products, such as airplanes.
∙ The fundamental idea is that as output doubles, there is a fixed percentage reduction in the
time needed to produce each unit.
∙ Learning can be due to improvements as people repeat a process and gain skill. Learning
can also come from bigger picture improvements in a firm’s administration, equipment and
technology, and product design.
Learning curve A line displaying the relationship between cumulative number of units produced
and the time or cost to produce the unit.
Individual learning Improvement that results when people repeat a process and gain skill or
efficiency from their own experience.
Organizational learning Improvement that comes both from experience and from changes in
administration, equipment, and product design.
LO4A–2 Plot and analyze learning curves.
∙ Learning curves can be analyzed using graphs or by mathematically using the learning curve
equations.
∙ When a spreadsheet is not available, learning curve tables are used to simplify the
calculations so they can be done with a calculator.
∙ The most common calculations are made to estimate the time to make a particular unit in the
future, and also the cumulative time to make a number of units in the future.
​Y​ x ​ = K ​x​ n ​
[4A.1]
SOLVED PROBLEMS
SOLVED PROBLEM 1
LO4A–2
A job applicant is being tested for an assembly-line position. Management feels that steady-state
times have been approximately reached after 1,000 performances. Regular assembly-line workers
are expected to perform the task within four minutes.
a. If the job applicant performed the first test operation in 10 minutes and the second one in 9
minutes, should this applicant be hired?
b. What is the expected time that the job applicant would take to finish the 10th unit?
Solution
a. Learning rate = 9 minutes/10 minutes = 90%
From Exhibit 4A.5, the time for the 1,000th unit is 0.3499 × 10 minutes = 3.499 minutes.
Yes, hire the person.
b. From Exhibit 4A.5, unit 10 at 90% is 0.7047. Therefore, the time for the 10th unit = 0.7047 ×
10 = 7.047 minutes.