Learning Curve

1. Learning curve analysis is a step?by-step method of projecting costs for repetitive tasks where learning is a variable. The theory of learning recognizes that repetition of the same operation results in less time or effort expended on that operation. The direct labor hours necessary to complete a unit of production will decrease by a constant percentage each time the production quantity is doubled. While the learning curve emphasizes time, it can be easily extended to cost as well. The learning curve itself is a graphical representation of increased productivity per unit of time (e.g., per hour) as workers gain more experience with repetitive tasks. A mathematical expression of the phenomenon that incremental unit costs to produce decrease as managers and labor gain experience from practice and as better methods are developed.