Learning Curves

Overview The resources required to produce the given amounts of a product tend to decline as output accumulates Cause of decline -- > learning curve. Workers become more adept at a task the more they perform it. This is measured mathematically Cumulative average time per unit/batch decreases by a fixed percentage each time the cumulative production doubles Learning rate = % When does learning curve theory apply? Labor intensive -...

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Cost Planning and Analysis For Competitive Advantage

Cost Planning Continuous improvement Involves a constant effort to eliminate waste, reduce response time, simplify the design of both products and processes and to improve the quality and performance of activities that in turn will result in an increase in customer satisfaction Japanese manufacturers identified two approaches to continuous improvement: Target Costing Setting of a target cost to challenge product designers to produce...

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