Learning Curve

9 September 2016

Are gains from learning realized early in production or at later point? ______ 4 5. A learning curve applies to improvements in the direct labor portion of a process. How does the learning curve differ from the experience curve? ____4 6. What are some factors that might prohibit a supplier from realizing learning curve gains? ___________________________________________________ 4 7. This case describes Vistral as a preferred supplier. What is preferred supplier? What are the advantages of maintaining a preferred supplier list? _________4 8.

What type of supply chain relationship supports a buyer and seller working together to identify possible learning curve benefits? ___________________5 1. Given the above data, calculate the average labour per unit given the cumulative total labour hours provided. This model is based on the equation y = aXb where y= time to produce the last unit of output, a= time to produce the first unit, and b= the rate of learning. The rate of learning is calculated by taking the natural log of the percentage of learning and dividing by natural log of 2.

Learning Curve Essay Example

Ultimately what this equation is describing, is that the incremental unit time decreases at a constant rate each time the quantity of units produced doubles. VISTRAL LEARNING-CURVE DATA| Units Total Labour Hours Average Labour per Unit Learning Rate_______________________________________________________________________1 6 6. 0 ******2 10. 8 5. 10. 00%4 19. 2 4. 8 11. 11%8 35. 2 4. 4 8. 33 %16 64 4. 0 9. 09 %32 115. 2 3. 6 10. 0%64 211. 2 3. 3 8. 33 %128 384 3. 0 9. 09 %| OVERALL AVERAGE IMPROVEMENT RATE: 9. 4%| APPLICABLE LEARNING CURVE: 90. 6%| 2. Calculate the appropriate learning rate and the overall average improvement rate for this data set.

The lower the percentage of learning is, the faster individual units are produced, and thus the faster average time per unit. VISTRAL learning curve shows data: * OVERALL AVERAGE IMPROVEMENT RATE IS 9. 4% * APPLICABLE LEARNING CURVE 90. 6% 3. ————————————————- Plot the data on an X-Y chart. Label X axis “Units Produced” and the Y axis “Average Labor per Unit”. Y-Values – LEARNING CURVE OF VISTRAL 4. Are gains from learning realized early in production or at later point? The gains are realized quite quickly, within the first couple of units. . A learning curve applies to improvements in the direct labour portion of a process. How does the learning curve differ from the experience curve? The learning curve differs from the experience curve because a learning curve applies to the average direct labour required to produce a unit of output, whereby, an experience curve refers to the longer term factors of production that systematically reduce production cost. These factors include the shorter term labour components along with longer term product and process modifications. 6.

What are some factors that might prohibit a supplier from realizing learning curve gains? 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 labour efficiency that may be factored into the sales price of the unit produced. Another factor may be the inaccurate collection of cost and labour data during the early stages of production of a unit.

Dismissing any process changes which would lead to continuous improvement such as new production methods, substituting labour with advance automated equipment would also decrease learning curve gains. 7. This case describes Vistral as a preferred supplier. What is preferred supplier? What are the advantages of maintaining a preferred supplier list? Identifying and selecting Preferred Supplier is an objective process. Preferred Supplier List helps purchaser’s in selecting suppliers that have completed organization’s review process.

Such supplier should deliver a product or service in the manner that is requested, every time or majority of the times. Buyer should ensure, that the Preferred Supplier has the appropriate facilities and technology to provide accurate and consistent goods and services. This process involves a site inspection. Information required may include financial statement, sources of parts, union affiliation, production volumes etc. Preferred Supplier List solution, allows purchasers retain supplier data, reduces sales calls, marketing emails to save time and lower the overall cost associated with sourcing and recruiting new suppliers.

Good functioning PSL can lead to solid relationship, which can impact production quality. 8. What type of supply chain relationship supports a buyer and seller working together to identify possible learning curve benefits? In the supply chain a buyer-seller relationships is a very important element of supply chain integration. Creating and maintaining positive relationships in all aspects of supply chain has become a foundation of a business success. Customer demands, unpredictable market and unstable retail industry effects global industry production.

Global business is also influence by environmental diversity. Considering those factors retailers are encourage to develop relationships to deal with unexpected market demands and to reduce the dependence on the vendor. *Reference Source Chartered Institute of Purchasing & Supply To enhance performance organizations must build strong buyer-supplier relationship. The above diagram shows that a key driver for supply chain is better understanding of the integration process in learning curve. *Reference Source Chartered Institute of Purchasing & Supply “Managing Purchasing and Supply Relationships”

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