DEFINITION,ORIGIN,METHODS,APPLICATION,LIMITATIONS,ADVANTAGES OF LEARNING CURVES

1. WELCOME TO
OUR PRESENTATION
WE ARE THE
“THE MARKETERS”

2. LEARNING CURVE

3. WHAT IS LEARNING CURVE…?
LEARNING CURVE IS THE EFFECT THAT HAPPENS TO
THE LABOURER WHEN HE PRODUCES THE SAME
OUTPUT AGAIN AND AGAIN AS A RESULT OF WHICH
THE AVERAGE TIME PRODUCE THE OUTPUTS WILL
REDUCE OVER A PERIOD OF TIME.

4. ORIGIN OF LEARLING CURVE
There are two different learning curve models. The original model was
developed by T. P. Wright in 1936 and is referred to as the Cumulative
Average Model or Wright's Model. A second model was developed
later by a team of researchers at Stanford. Their approach is referred
to as the Incremental Unit Time (or Cost) Model or Crawford's
Model.
THERE ARE TWO METHODS TO WORK WITH THE LEARNING
CURVES:
1. TEBULER METHOD
2. ALGEBRAIC METHOD

5. WITH A 80% LEARNING CURVE ( TEBULER
METHOD)…..
1
CUMULATIVE
OUTPUT
X
2
CUMULATIVE
TOTAL LABOUR
HOURS
XYH
3
CUMULATIVE
AVERAGE
LABOUR HOURS
YH
[COLUMN(2)/CO
LUMN(1)]
4
CUMULATIVE
TOTAL LABOUR
COST XYC
[COLUMN(2)*2
0]
5
CUMULATIVE
AVERAGE
LABOUR COST YC
[COLUMN(4)/C
OLUMN(1)]
1 100 100 $2000 $2000
2 160 80 $3200 $1600
4 256 64 $5120 $1280
8 409.6 51.2 $8192 $1024

6. ALGEBRAIC METHOD

7. ALGEBRAIC METHOD

8. LEARNING CURVE GRAPH ( AVERAGE
TIME)

9. LEARNING CURVE GRAPH ( AVERAGE
LABOUR COST)

10. APPLICATION OF THE LEARNING CURVE
THEORY
THE ACTIVITY IS LABOUR INTENSIVE ( RATHER THAN
HIGHLY MECHANIZED).
A REPETITIVE PROCESS.
LOW TURNOVER OF LABOUR.
EARLY STAGES OF PRODUCTION.
NO PROLONGED BREAKS IN PRODUCTION .

11. ADVANTAGES OF LEARNING CURVE
 It will assist in planning for personnel both in terms of number and the
cost.
 It will assist in product pricing by providing better-cost estimates.
 It is used for budgeting.
 It can assist in cost control.
 It can assist in setting labour standards and reduce labour variances.
 Learning curve can ensure better work scheduling and lead to accurate
delivery schedules that would meet customers' expectation and lead to
increased patronage .

12. LIMITATIONS OF LEARNING CURVE
 UNPLANNED CHANGES IN PRODUCTION TECHNIQUES OR LABOUR
TURNOVER WILL CAUSE PROBLEMS AND AFFECT THE LEARNING RATE.
 THE EMPLOYEES NEED TO BE MOTIVATED , AGREE TO THE PLAN
AND KEEP TO THE LEARNING SCHEDULE – THESE ASSUMPTION MAY
NOT HOLD.
 ACCURATE AND APPROPRIATE LEARNING CURVE DATA MAY BE
DIFFICULT TO ESTIMATE.
IT ASSUMES A CONSTANT RATE LEARNING FACTOR.