LEARNING CURVE

Prepared for
Professor Dr. Muhammad Ziaulhaq Mamun
Course Instructor, Managing Operations (P-501)

Prepared by
Md. Sazid Hossain
ZR-17, MBA 53E

Institute of Business Administration

University of Dhaka

Date of Submission: March 29, 2016

A learning curve is a graphical representation of the increase of learning (vertical axis) with
respect to experience (horizontal axis). It basically denotes the extent to which we engage in the
learning process over time and as we gain experience. The term learning curve is used in two
main ways: where the same task is repeated in a series of trials, or where a body of knowledge is
learned over time.
Shapes of learning curves
For a single subject, the curve is a bit erratic; however, it shows how learning improves with
experience.

Figure: Learning curve for a single subject

A learning curve, which is averaged over many trials, is smooth and may even be expressed as a
mathematical function. It indicates that initially, we learn fast (steep curve) but the learning
process gradually steadies with experience.

Figure: Learning curve for an average of multiple trials

Based on the average of multiple trials and the development of the mathematical function, the
following types of learning curves are possible:

THE 70 %, 80 % AND 90 % LEARNING CURVE

A Learning Curve is an industrial tool or formula for the expected reduction of unit costs for
large quantity production of components. Learning curves draw from historic building
experience to determine expected reductions in labor and materials costs. Expected reductions
can be gauged from the labor and materials content of the manufactured item, plus the number of
doublings of the initial production run. Estimators will apply learning curves under guidance
from management.
The mathematical model derived for a learning curve is as follows:
Let

x = cumulative production
y = hours required to produce the x-th unit

Then, y = ax-b

Where a and b are parameters defined as follows:

a = hours required to produce the 1-st unit
b = a value related to the percentage associated with the Learning Curve
= log of the learning rate/log of 2.
Hence, for an 80% learning curve,

If cumulative production doubles from 50 to 100, then the hours required producing the
100-th unit is 80% of that for the 50-th unit.

If cumulative production doubles from 100 to 200, then the hours required producing the
200-th unit is 80% of that for the 100-th unit.

For 100 units and an 80% learning curve, the equation for the Learning Curve is
y = 100x-0.322
Where, 0.322 is the value associated with 80%.

Similarly, for a 70% learning curve,

If cumulative production doubles from 50 to 100, then the hours required producing the
100-th unit is 70% of that for the 50-th unit.

If cumulative production doubles from 100 to 200, then the hours required producing the
200-th unit is 70% of that for the 100-th unit.

For 100 units and a 70% learning curve, the equation for the Learning Curve is
y = 100x-0.515
Where, 0.515 is the value associated with 70%.

Similarly, for a 90% learning curve,

If cumulative production doubles from 50 to 100, then the hours required producing the
100-th unit is 90% of that for the 50-th unit.

If cumulative production doubles from 100 to 200, then the hours required producing the
200-th unit is 90% of that for the 100-th unit.

Likewise for 100 units and a 90% learning curve, the equation for the Learning Curve is
y = 100x-0.152
Where, 0.152 is the value associated with 90%.