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Learning Curves

Learning curve refers to the process of  representation in the form of graph which is used to demonstrate  the cost per unit of output decreases over time with the increase in experience of the workforce.It is also called experience curve, cost curves, efficiency curves and productivity curves which is used by organization in production planning, cost forecasting and setting delivery schedules.Learning curve helpful in visualizing difficulty that comes in learning a certain subject for a period of time.It is widely utilized by psychologists, students, teachers, employees and employers to plot progress and set expectations to attain competent knowledge of a subject.

Learning Curves illustrates a graphical representation of something which can be kept for a record while managing a task for a long period of time. It is mainly used to analyze improvement in a task for a specific time. It also tells the rate of change in average cost on the statistical findings.The other names for Learning Curves are productivity curves, experience curves, efficiency curves, cost curves, progress curves, improvement curves.

Learning Curves are most important while performing cost analysis, efficiency in cost and cost estimation. This curve is extensively used in cost forecasting, delivery schedules and production planning of the organization. Learning Curves graph shows diminishing rate with increase in productivity. Suppose if rate of reduction is 30% then this curve is referred to as 70% learning curve.

Different types of Learning Curves are listed below:

  • Error Learning Curve
  • Experience Curve
  • Assistance Score Learning Curve
  • Predicted Learning Curve

Learning curve applications are given as:

1) Used for incentive structure
2) Used in Workforce schedule
3) Used for Capital requirement projections
4) Used to estimate future costs
5) Used in Error analysis
6) Used in Tradeoff analysis

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