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Learning Curve Model: By: Alisab Nadaf

The document discusses learning curves and experience curves. It defines a learning curve as showing the relationship between proficiency at a task and amount of experience, where proficiency typically increases with more experience. It outlines that learning curves can graphically represent this, are applied in different contexts, and are affected by various factors. It then defines an experience curve as observing that a firm's costs decrease the more experience it gains producing a product, and that gaining market share allows firms to develop cost advantages from their experience curve. The document notes experience curves can be used strategically, internally, and externally.

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Ali Nadaf
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13 views10 pages

Learning Curve Model: By: Alisab Nadaf

The document discusses learning curves and experience curves. It defines a learning curve as showing the relationship between proficiency at a task and amount of experience, where proficiency typically increases with more experience. It outlines that learning curves can graphically represent this, are applied in different contexts, and are affected by various factors. It then defines an experience curve as observing that a firm's costs decrease the more experience it gains producing a product, and that gaining market share allows firms to develop cost advantages from their experience curve. The document notes experience curves can be used strategically, internally, and externally.

Uploaded by

Ali Nadaf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Learning Curve Model

By : Alisab Nadaf
BASIC ABOUT LEARNING CURVE
Content of Presentation

• Concept and phases of learning curve,

• graphical representation,

• learning curve applications

• factors affecting learning curve,

• experience curve.
Concept and phases of learning curve

A learning curve is a graphical representation of the relationship


between how proficient someone is at a task and the amount
of experience they have. Proficiency usually increases with increased
experience that is to say, the more someone performs a task, the better
they get at it.
Graphical representation,
Learning curve applications
Factors affecting learning curve,
Experience curve
Experience curve.
• In 1960 management consultants at Boston and Consulting group
observed this concept
• It states that the more the experience a firm has in producing in a
particular product, the lower its cost.
• It has an important strategic implication if a firm is able to gain market
share over its competitors, it can develop a cost advantages
Uses of Experience curve

• There are three general areas for the application and use of

experience curves, Strategic, internal, and external to the organization

• Strategic uses include determining volume-cost changes estimating

new product start-up costs, and pricing of new product

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