Running head: LEARNING CURVE THEORY
Learning Curve Theory
Learning Curve Theory Learning curves play an important role in today's marketplace. The main principle behind learning curves is that the more times an individual or organization repeats a process, there will be an increase in experience and efficiency. A learning curve graphically represents the rate of improvement in performing a task or function over time (Learning Curve, 2006). This paper will provide a discussion about applying the learning curve theory concepts by testing alternatives to a process. Alternatives to a process will be tested and process performance data will be measured for profit in the Pizza Store Layout simulation to show the affects of learning
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Process Performance Data Ceteris paribus a concept that comes from the study of economics meaning to hold all things constant in an effort to isolate input control parameters to determine the effect of a change on the output of the function. The difficulty is in balancing the gains that could be made by increasing the service capacity of the system against the cost associated with that increase. In theory, each successive attempt is part of a learning curve expected to yield an increase in output that is better than previous attempts (Chase, Jacobs & Aquilano, 2006). To express the point clearly and succinctly, a graph of a profit from each simulation attempt shows how profit improved with each alternative. A graph representing the learning curve is shown in Appendix A. The initial data is a baseline from which alternatives are tested. This baseline data is required point of interest for comparison with the initial alternative test. Because of the lack the of understanding of the process, the first alternative attempt in the simulation resulted in a significant decrease in profit from $1056 to $650. As subsequent alternatives were selected, profit increased. As learning curve theory promised, profit was being increased as more efficiency was gained and more knowledge and attention was given at make choices in our process.