Performance Improvement

1. Performance Improvement • Learning (Improvement of Performance) = • Reduced Production Time and/or Reduced Errors • Learning = Individual + Organizational • (Manufacturing Progress)

2. Learning Curves • Theory • As people gain experience performing a task, • the time it takes to complete the task decreases. • Specifically, • as the accumulated number of units doubles, • the time required to produce a unit declines • at a constant rate. • Note: Cognitive Learning > Manual Learning

3. Learning Curve Equations • Hyperbolic Yx = KXN • Logarithmic log Yx = log K + N log X • Yx = Cumulative Average Time to Produce X Units • K = Time Required to Produce the First Unit • X = Cumulative Total Number of Units Produced • N = Exponent of the Learning Curve Slope (tan q)

4. Synonyms • Learning Curve • Manufacturing Progress Function • Cost / Quantity Relationship • Product Acceleration Curve • Improvement Curve • Performance Curve • Experience Curve • Efficiency Curve

5. Typical Productivity Learning Curve

6. 80% Learning Curve

7. Learning Curve • Slope LC % • - 0.514 70 • - 0.415 75 Assembling • - 0.322 80 • - 0.234 85 Welding • - 0.152 90 • - 0.074 95 Machining

8. Notes • LC % = 2N where N = tan q • New Production Time (Cost) = LC % x Old • As total number of production units increases and/ • or average production time per unit decreases, • q (tan q) decreases which implies LC % increases. • Shallow learning curves (higher LC %) means • relatively limited cost savings.

10. Learning Curve Solutions Click for Solutions Generator

11. Food for Thought • Was it Agatha Christie’s Inspector Poirot or maybe • Dr. Watson’s comment to Sherlock Holmes • “we often go more quickly by going more slowly”. • Maxim for Computer-Aided Statistical Analysis • Garbage In = Gospel Out