Learning Curve Analysis. Learning Objective After this class the students should be able to: Calculate the hours required to produce determinate product.

Slides:

Advertisements

Similar presentations

Cost Estimation Chapter 5 Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Advertisements

Supplement 7 Learning Curves

Chapter 6 Continuous Random Variables and Probability Distributions

Learning Curve. Performance improvement As an organization gains experience in manufacturing a product, the labor inputs required per unit of output diminish.

Class 7.2: Graphical Analysis and Excel Solving Problems Using Graphical Analysis.

© 2010 The McGraw-Hill Companies, Inc. Cost Behavior: Analysis and Use Chapter 5.

Activity-Based Costing: A Tool to Aid Decision Making

Present Worth I Economic basis to evaluate engineering projects.

Hilton Maher Selto. 11 Cost Estimation McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.

Excellence Justify the choice of your model by commenting on at least 3 points. Your comments could include the following: a)Relate the solution to the.

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 6-1 Chapter 6 The Normal Distribution and Other Continuous Distributions.

Learning Curve Analysis

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 6-1 Chapter 6 The Normal Distribution and Other Continuous Distributions.

Reliability Chapter 4S.

Inventory control models

Statistical Inventory control models

Time Value of Money – Part II

State University of New York WARNING All rights reserved. No part of the course materials used in the instruction of this course may be reproduced in any.

Theory of the Firm 1) How a firm makes cost- minimizing production decisions. 2) How its costs vary with output. Chapter 6: Production: How to combine.

Economic Estimation Models Engineering Economics Lecture January 2010.

Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 6-1 Chapter 6 The Normal Distribution and Other Continuous Distributions.

Prepared by Scott M. Shafer, Updated by William E. Matthews and Thomas G. Roberts, William Patterson University Copyright 2007 John Wiley & Sons, Inc.4-1.

Learning Curves McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

Ch 61 IT-390Preliminary and Detail Methods. 2 Design and Evaluation ä Preliminary Estimate requested during the initial evaluation for several reasons:

© 2008 Prentice Hall, Inc.E – 1 Operations Management Module E – Learning Curves PowerPoint presentation to accompany Heizer/Render Principles of Operations.

1. 2 Traditional Income Statement LO1: Prepare a contribution margin income statement.

Learning Curves Chapter 4A. Objectives 1. Understand what learning curves are and how they can be estimated. 2. Apply learning curves to estimate the.

Operations Management

E - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall E E Learning Curves PowerPoint presentation to accompany Heizer and Render Operations Management,

Chapter 5 Production. Chapter 6Slide 2 Introduction Focus is the supply side. The theory of the firm will address: How a firm makes cost-minimizing production.

Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc.,

N A S A G O D D A R D S P A C E F L I G H T C E N T E R I n t e g r a t e d D e s i g n C a p a b i l i t y / I n s t r u m e n t S y n t h e s i s & A.

Reliability Failure rates Reliability

ME - 1© 2014 Pearson Education, Inc. Learning Curves PowerPoint presentation to accompany Heizer and Render Operations Management, Eleventh Edition Principles.

Chapter 1 Introduction to Labor Economics Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Production & Costs Continued… Agenda: I.Consumer and Producer Theory: similarities and differences II. Isoquants & The Marginal Rate of Technical Substitution.

Linear Programming Technical Supplement 3 Learning Curves Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

CLIC08 workshop Cost requirements for CLIC H. Braun, G. Riddone

Statistics for Managers Using Microsoft Excel, 5e © 2008 Pearson Prentice-Hall, Inc.Chap 6-1 Statistics for Managers Using Microsoft® Excel 5th Edition.

Learning Curve Analysis Supplement I Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall I - 01.

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 6-1 Chapter 6 The Normal Distribution and Other Continuous Distributions Basic Business.

1 © The McGraw-Hill Companies, Inc., Technical Note 2 Learning Curves.

Learning Curves McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Curves Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill.

Warm-Up Exercises Evaluate the expression without using a calculator. ANSWER –1 ANSWER –3 2.–

Basic Review - continued tom.h.wilson Department of Geology and Geography West Virginia University Morgantown, WV.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 1.

MANPOWER PLANNING AND CONTROL COURSE INSTRUCTOR: PROF. DR. SHAHAB KHUSHNOOD LECTUTRE # 04 CHAPTER - 05 MECHANICAL ENGINEERING DEPARTMENT UNIVERSITY OF.

LOAD FORECASTING. - ELECTRICAL LOAD FORECASTING IS THE ESTIMATION FOR FUTURE LOAD BY AN INDUSTRY OR UTILITY COMPANY - IT HAS MANY APPLICATIONS INCLUDING.

FACILITY LAYOUT & LOCATION PROF. DR. ORHAN TORKUL M. RAŞİT CESUR.

F5 Performance Management. 2 Section C: Budgeting Designed to give you knowledge and application of: C1. Objectives C2. Budgetary systems C3. Types of.

Theory of the Firm Theory of the Firm: How a firm makes cost-minimizing production decisions; how its costs vary with output. Chapter 6: Production: How.

Prepared by Debby Bloom-Hill CMA, CFM

Chapter 6 The Normal Distribution and Other Continuous Distributions

Cost Allocation and Activity-Based Costing

Supply Chain Management for Non Supply Chain Management Professionals

FW364 Ecological Problem Solving Class 6: Population Growth

Determining How Costs Behave

Cost Behavior: Analysis and Use

Solutions Queueing Theory 1

Cost Estimation Chapter 5

Learning Curves Guanyi Lu November 27, 2018.

Standard Costing and Variance Analysis

Learning Curves.

© 2017 by McGraw-Hill Education

Chapter 6 Introduction to Continuous Probability Distributions

Cost Behavior: Analysis and Use

Statistics for Managers Using Microsoft® Excel 5th Edition

E Learning Curves PowerPoint presentation to accompany

Presentation transcript:

Learning Curve Analysis

Learning Objective After this class the students should be able to: Calculate the hours required to produce determinate product taking account the learning curve.

Time management The expected time to deliver this module is 50 minutes. 30 minutes are reserved for team practices and exercises and 20 minutes for lecture.

Learning Curve Past experience indicates that individuals learn by experience (i.e., get better and better at the job by carrying out the tasks more and more).

Warm-up – 30 minutes The student teams receive a bag containing pieces and are asked to assembly a same set for several times. One team’s member is invited to chronometer the time that your team spend to assembly the set. After the end, each team plots the results in a software (excel) and try to fit an exponential curve.

Warm-up – 30 minutes An example could be assembly the LEGOS airplane model # 6536 used by Ammar & Wright, but any similar assembly model can be used. LEGOS airplane model # 6536 (Fig. from Ammar & Wright)

Learning curve This phenomenon was first reported by T. P. Wright in But, the learning curve theory is based on assumptions such as those listed next Chase, R B., 1981

Learning curve assumptions The time required to complete a specified task or unit of a product or item will be less each time the task is performed; The unit time will reduce at a decreasing rate; The decrease in time will follow a certain pattern, such as negativeexponential distribution shape.

Learning Curve assumptions The learning curve may vary one product to another and from one organization to another. The rate of learning depends on factors such as the quality of management and the potential of the process and products

Moreover, it may be said that any change in personnel, process, or product disrupts the learning curve. Consequently, there is a need for the utmost care in assuming that a learning curve is continual and permanent.

Learning Curve Effects

The Table presents data on learning curve effects in the U.S. industrial sector. An 80% learning rate is descriptive of certain operations in such areas as ship construction, electronic data processing equipment, automatic machine production, and aircraft instruments and frame assemblies. The learning curves are found to be quite useful in a variety of applications, including strategic evaluation of company and industry performance, internal labor forecasting, establishing costs and budgets, production planning, external purchasing, and subcontracting of items The learning curve theory is based on a doubling of productivity. More specifically, when output or production doubles, the reduction in time per unit affects the learning curve rate. For example, an 80% learning rate means the second unit takes 80% of the time of the first unit, the fourth unit takes 80% of the second unit, the eighth unit takes 80% of the fourth unit, and so on.

Result We may write LH m = LH 1 m C Where: LH m is the labor hours required to produce unit LH 1 is the labor hours to produce unit one or the first unit. C is the learning curve slope and is expressed by log of the learning rate/(log2)

Discussion Each team has to present an analyze of its results based on the theory presented in class

Exercise Assume that the learning rate for a certain operation is 75% and it took 90 hours to produce the first unit. Calculate the hours required to produce the fifth unit.

Solution By substituting the given data value into C equation, we get C = log 0.75/log 2 = Using the above value and the specified data in LH m = LH 1 m C yields LH5 = 90(5) = hours It will take hours to produce the fifth unit.

Reference “Engineering and Technology management tools and applications” – Dhillon, B. S. Artec House, Inc Operation Analysis Using Excel – Weida, 2000, Duxbury.