LEARNING CURVE

INTRODUCTION
Learning is a process by which an individual acquires skill, knowledge and ability. When a new product
or process is started, performance of the worker is not at its best and learning phenomenon takes place. As
the experience is gained, the performance of the worker improves, time taken to produce per unit reduces
and the productivity goes up.
It is a fundamental human characteristic that a person engaged in a repetitive task will improve his
performance over time. As a worker learns from experience, and as result of his increased knowledge,
labour requirement per unit of output falls. his enables a company to achieve greater cost effectiveness.
If data are gathered on this phenomenon, a curve representing a decrease in effort per unit for repetitive
operations can be developed.
!efinition of Learning "urve
A learning curve is a graph or equation that expresses the rate of improvement in productivity as more
units are produced.
In other words learning curve is defined as a curve which shows fall in average cost and increase in
productivity as the experience of the operator increases.
#r, the concept of learning curve is that the cumulative average unit cost decreases by some percent as the
production quantity is increased. his is because when the production quantity is increased and the
specific task remains constant, the person performing that task acquires the skill and knowledge. It
indicates the improvement in the performance of a person with the increase in his skill or knowledge.
Learning "urve is also known as experience curve, performance curve. he figure below shows the
learning curve.
It is an irregular line that starts high, decreases rapidly on initial units, and then begins to level out. he
curve shows that there is progressive improvement in productivity as the number produced increases.
his suggests an exponential relationship between productivity and cumulative production. When this
data is plotted on log$log paper, the data plotted is as a straight line. his suggests the relationship of the
form%
&' ( )'
*
Where &' ( effort per unit of production +i.e., man$hours, to produce the 'th unit
) ( constant, which is the effort to produce the first unit
s ( slope constant, which is negative since the effort per unit decreases with production.
he above relationship will plot as a straight line on log$log paper.
"umulative
average
per unit
"umulative output
ake the logarithms of both sides,
log &' ( s x log ' - log )
which is the equation of a straight line
. ( s/ - b
where . ( log &', / ( log ', and b ( log ).
ASSUMPTIONS OF LEARNING CURVE
he learning curve is based on certain assumptions such as%
+a, hat the task is repetitive.
+b, hat only manual labour is involved and there is no automation of processes.
+c, hat staff are fully motivated and there are no constraints.
+d, hat no labour turnovers occurred for a long time, i.e. that staff do not leave the organisation.
+e, hat the products and processes are standardised, no midway modification.
+f, here must be continuous production$ no stoppage.
+g, hat repetitive process will increase production.
APPLICATION OF THE LEARNING CURVE
Learning curve is now being widely issued in business. *ome of the uses are as follows%
Means of Cost Reduction: Where applicable the learning curve suggests great opportunities for cost reduction to
be achieved by improving learning.
Tainin! Po!a""e: Learning curve concept provides a means of evaluating the effectiveness of training
programs.
Mateia# Re$uie"ent P#annin!: As employees become more efficient, the rate of production increases and so
more materials are needed, the work$in$progress inventory turns over faster, and finished goods inventory grows at
an accelerated rate. A knowledge of the learning curve assists in planning the inventories of materials. Work$in$
progress, and finished goods.
Poduction P#annin!: he learning curve concept suggests a basis for correct staffing in continuously expanding
production. he curve shows that the work force need not be increased at the same rate as the prospective output.
his also helps in proper production planning through proper scheduling of work0 providing manpower at the right
moment permitting more accurate forecast of delivery dates.
Cost Esti"ation: he learning curve is a technique of cost pro1ection. It is widely used for forecasting the rate at
which the costs are likely to fall as the scale of production is increased.
Ca%ita# Re$uie"ent P#annin!: he learning "urve is useful in planning working capital requirements. If the unit
price is based on cumulative average unit cost, the revenue from the first few units may not cover the actual
expenditure. 2unds must be arranged to cover such expenditure.
Li"itations to t&e usefu#ness of t&e #eanin! cu'e
he following points limiting the usefulness of learning curves should be noted%$
3. he learning curve is useful only for new operations where machines do not constitute a ma1or part of the
production process. It is not applicable to all productions. &.g. new and experienced workmen.
4. he learning curve assumes that the production will continue without any ma1or interruptions. If for any
reason the work in interrupted, the curve may be deflected or assume a new slopes
5. "harges other than learning may effect the learning curve. 2or example, improvement in facilities,
arrangements, and equipment as well as personnel morale and performance may be factors influencing the
curve. #n the other hand, negative developments in employee attitudes may also affect the curve and
reverse or retard the progress of improvement.
6. he characteristic 78 percent learning curve as originally obtaining in the air force industry in 9.*. A. has
been usually accepted as the percentage applicable to all industries. *tudies show that there cannot be a
unique percentage which can be universally applied.
Factos affectin! Leanin! Cu'e
Learning "urve is affected by following factors%
3. he method of production i.e. whether it is labour oriented or machine oriented influences the slope of the
learning.
4. When labour turnover rate is high management has to train new workers frequently. In such situations the
company may never reach its maximum efficiency potential. #ne of the important requisites of the learning
curve concept is that there should be uninterrupted flow of work. he fewer the interruptions, the grater
will be the improvement in efficiency.
5. "hanges in a product or in the methods of production, designs, machinery, or the tools:used affect the slope
of the learning curve. All these have the effect of starting learning a fresh because of new conditions If the
changes are frequent, there may be no learning at all.
6. Also other factors influencing the learning curve are labour strikes, lock outs and shut downs due to other
cause also:affect the learning curve. In each such case there is interruption in the progress of learning.