The Core Components Of A Learning Curve Analysis Essay

802 Words Dec 13th, 2015 4 Pages
Learning Curves The learning curve, also referred to as the experience curve, is a simplistic, yet powerful, estimating technique which has become an essential concept/tool used for strategic planning within project management (Kerzner, 2013; Lieberman, 1987; Linton & Walsh, 2013). Bailey and Gupta (1999) suggested that the learning curve should probably be called the “forecasting curve” because it is primarily used to forecast the future expenditure of project resources (as cited in McKee & McKee, 2013). This paper will briefly explain the core components of a learning curve analysis, as well as discuss how it can be utilized in project management.
Learning Curve Theory The learning curve concept specifies that as tasks are repeated, a certain amount of learning occurs, or experience is gained, which reduces the amount of time required to perform subsequent instances (Bailey & Gupta, 1999; Kerzner, 2013; McKee & McKee, 2013; Zangwill & Kantor, 1998). Bailey and Gupta (1999) explained that “learning curves are mathematical or graphical representations of how the time taken to complete a task is reduced with repetition” (p.39). The learning curve, therefore, forecasts the cost/time savings as more of an item is produced (Zangwill & Kantor, 1999). Each time a company doubles its output, the required unit time declines by a certain percentage; this rate of decline is known as the learning rate (Kerzner, 2013; McKee & McKee, 2013). For example, a learning rate of 90…

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