1956-01-01

Learning Curve Theory as Applied to Production Costs 560066

FOR a number of years the aircraft industry has employed a very worth-while tool in dealing with labor costs. This tool is popularly known as the “learning curve.”
The learning curve traces the reduction in labor hours required for consecutive units produced. This paper discusses the various factors affecting production labor expenditure that determine the pattern of these curves, the mathematics of learning curves, and how learning curves can be used for estimating costs, forecasting labor requirements, predetermining production trends for control, and analyzing actual hour variations and trends.
While these curves are based on aircraft experience, the author believes that the factors involved, and therefore the application of the theory, might well be adapted to any type of production.

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