Learning Curve Assignment a and B
These factors include the shorter term labor components along with longer term product and process modifications. 6. Some factors that might prohibit a supplier from realizing learning curve gains are high workforce turnover thereby causing the workforce to not demonstrate the anticipated rate of learning/or creating an inconsistent rate of learning. The supplier will be unable to realize labor efficiency that may be factored into the sales price of the unit produced.
Another factor may be the inaccurate collection of cost and labor data during the early stages of production of a unit. Another factor may be not demonstrating any process changes which would realize continuous improvement. 7. A preferred supplier has been through a company’s evaluation process, thereby, receiving the first opportunity for new business. A preferred supplier has demonstrated its performance capabilities through previous purchase contracts and therefore receives preference during the supplier selection process.
The advantage of maintaining a preferred supplier list is that purchasing personnel can quickly identify supplier with proven performance capabilities. 8. A type of supply chain relationship that supports a buyer and seller working together to identify possible learning curve benefit would be a collaborative relationship, in this type of supply chain relationship you will also realize productivity improvements. Assignment: Learning Curve
It is appropriate/the conditions we can use learning curves to estimate prices are when a supplier uses a new production process or produces an item for the first time. The use of learning curve is also appropriate when a suppler produces a technically complex item for the first time or when an item has direct labor content. 3. Why can we use rough estimates when applying learning curves? We can use rough estimates when applying learning curves as quite often we might only have an estimate of data required for a product or service.
This data will still give us an accurate estimation of the learning curve as when production doubles, direct labor requirements will decline by an observed and predictable rate. 4. Why does manual process experience greater learning curves than automated? Manual process experience greater learning curves than automated processes because the manual process involves the human factor, in which both cost and labor is taken into account, providing us with labor efficiency’s due to employee learning. . Are there factors besides learning that can help reduce cost as volume increase? Yes, a factor besides learning that can help reduce cost as volume increases is Value Analysis, this factor examines all elements of a component, assembly and end product or service to ensure it fulfills its intended function at the lowest total cost. Another factor is Value Engineering, which is the application of value principals during production or service design.