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 …show more content…

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Plot the data on an X-Y chart. Label X axis “Units Produced” and the Y axis “Average Labor per Unit”.
Y-Values – LEARNING CURVE OF VISTRAL 4. Are gains from learning realized early in production or at later point?
The gains are realized quite quickly, within the first couple of units. 5. A learning curve applies to improvements in the direct labour portion of a process. How does the learning curve differ from the experience curve?
The learning curve differs from the experience curve because a learning curve applies to the average direct labour required to produce a unit of output, whereby, an experience curve refers to the longer term factors of production that systematically reduce production cost. These factors include the shorter term labour components along with longer term product and process modifications. 6. What are some factors that might prohibit a supplier from realizing learning curve gains?
Some factors that might prohibit a supplier from realizing learning curve gains are high workforce turnover thereby causing the workforce to not demonstrate the anticipated rate of learning/or creating an inconsistent rate of learning. The supplier will be unable to realize labour efficiency that may be factored into the sales price of the unit produced. Another factor may be the inaccurate collection of cost and labour data during the early stages of production of a unit.