learning curve ratio

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Sanjeev Sharma

Sanjeev Sharma (Querist)
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17 June 2008 sir,
pls tell me what is learning curve ratio?how it is applied in labour overheads?

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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19 June 2008 Learning Curve

Learning is the process of acquiring skill, Knowledge, and ability by an individual. According to learning curve theory the productivity of the worker increases with increase in experience due to learning effect. The learning theory suggests that the best way to master a task is to “learn by doing”. In other words, as people gain experience with a particular job or project they can produce each unit more efficiently than the preceding one.

The speeding up of a job with repeated performance is known as the learning effect or learning curve effect.

The cumulative average time per unit produced is assumed to fall by a constant percentage every time the total output is doubled. So generally learning effect is found in the multiples of 2. If learning curve effect is asked between two even numbers then Learning curve equation is formed ie. Learning curve effect is expressed mathematically as follows:

Learning curve equation =
Y = a(x) -b Where Y = Average time per unit
a = Total time for first unit
x = Cumulative number of units manufactured
b = the learning curve index

Learning curve index (b) = [log (1- % decrease)] / Log 2

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