Learning Curve

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introduction to procurement
UNDERSTANDING LEARNING CURVES

ASSIGNMENT QUESTIONS

1. Given the above data, calculate the average labour per unit given the cumulative total labour hours provided. ______________________________ 2 2. Calculate the appropriate learning rate and the overall average improvement rate for this data set _____________________________________________ 3 3. Plot the data on an X-Y chart. Label the X axis “Units Produced” and the Y axis “Average Labour per Unit __________________________________________ 3 4. Are gains from learning realized early in production or at later point?______ 4 5. A learning curve applies to improvements in the direct labor portion of a process. How does the learning curve differ from the experience curve?____4 6. What are some factors that might prohibit a supplier from realizing learning curve gains?___________________________________________________ 4 7. This case describes Vistral as a preferred supplier. What is preferred supplier? What are the advantages of maintaining a preferred supplier list?_________4 8. What type of supply chain relationship supports a buyer and seller working together to identify possible learning curve benefits?___________________5

1. Given the above data, calculate the average labour per unit given the cumulative total labour hours provided. This model is based on the equation y = aXb where y= time to produce the last unit of output, a= time to produce the first unit, and b= the rate of learning. The rate of learning is calculated by taking the natural log of the percentage of learning and dividing by natural log of 2. Ultimately what this equation is describing, is that the incremental unit time decreases at a constant rate each time the quantity of units produced doubles.

VISTRAL LEARNING-CURVE DATA|
Units Total Labour Hours Average Labour per Unit Learning...
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