We explore some of the themes that have emerged in the literature and the contributions of key thinkers like Donald Schon and Peter Senge. Is it anything more than rhetoric? Can it be realized? Two important things result from this.
As discussed in the main articlelearning generally begins with making successively larger finds and then successively smaller ones. The equations for these effects come from the usefulness of mathematical models Learning curve theory certain somewhat predictable aspects of those generally non-deterministic processes.
Labour efficiency - Workers become physically more dexterous. They become mentally more confident and spend less time hesitating, learning, experimenting, or making mistakes. Over time they learn short-cuts and improvements.
This applies to all employees and managers, not just those directly involved in production. Standardization, specialization, and methods improvements - As processes, parts, and products become more standardized, efficiency tends to increase.
When employees specialize in a limited set of tasks, they gain more experience with these tasks and operate at a faster rate. Technology-Driven Learning - Automated production technology and information technology can introduce efficiencies as they are implemented and people learn how to use them efficiently and effectively.
Better use of equipment - as total production has increased, manufacturing equipment will have been more fully exploited, lowering fully accounted unit costs. In addition, purchase of more productive equipment can be justifiable. Changes in the resource mix - As a company acquires experience, it can alter its mix of inputs and thereby become more efficient.
Product redesign - As the manufacturers and consumers have more experience with the product, they can usually find improvements. This filters through to the manufacturing process. As General Motors produced more cars, they learned how to best produce products that work for the least money.
One fax machine in the world can do nothing, but if everyone has one, they build an increasingly efficient network of communications. Shared experience effects - Experience curve effects are reinforced when two or more products share a common activity or resource. Any efficiency learned from one product can be applied to the other products.
This is related to the principle of least astonishment. Experience curve discontinuities[ edit ] The experience curve effect can on occasion come to an abrupt stop.
Existing processes become obsolete and the firm must upgrade to remain competitive. The upgrade will mean the old experience curve will be replaced by a new one.
Competitors introduce new products or processes that you must respond to Key suppliers have much bigger customers that determine the price of products and services, and that becomes the main cost driver for the product Technological change requires that you or your suppliers change processes The experience curve strategies must be re-evaluated because they are leading to price wars they are not producing a marketing mix that the market values Strategic consequences of the effect[ edit ] The BCG strategists examined the consequences of the experience effect for businesses.
They concluded that because relatively low cost of operations is a very powerful strategic advantage, firms should capitalize on these learning and experience effects. According to BCG, the most effective business strategy was one of striving for market dominance in this way.
This was particularly true when a firm had an early leadership in market share. It was claimed that if you cannot get enough market share to be competitive, you should get out of that business and concentrate your resources where you can take advantage of experience effects and gain dominant market share.
Today we recognize that there are other strategies that are just as effective as cost leadership so we need not limit ourselves to this one path. They felt that it encouraged competitors to enter the market, triggering a steep price decline and a competitive shakeout. Using this strategy, you could always stay one step ahead of new or existing rivals.
Origins of the experience curve[ edit ] An example application of the experience curve,Bruce D. Henderson Excerpts of Bruce D. The correlation between competitive profitability and market share was strikingly apparent.
The name, Experience Curve, was selected to distinguish this cost behavior phenomenon from the well known and well documented learning curve effect.• The learning curve can be applied to a wide range of business sectors, including sectors not normally associated with its use.
Almost half of learning curve users work in the service sector. • The key obstacle to implementation by non-users is a lack of understanding of learning curve theory. Typical adult learning theories encompass the basic concepts of behavioral change and experience.
From there, complexities begin to diverge specific theories and concepts in an eclectic barrage of inferences. Up until the s basic definitions of learning were built around the idea of change in. Learning curves are, however, not universally applicable but show most promise in situations where non-mechanized, repetitive assembly operations predominate and which largely use direct plombier-nemours.com called improvement curve, progress curve.
The learning curve is a concept that describes how new skills or knowledge can be quickly acquired initially, but subsequent learning becomes much slower.
Aviation instructors need a good understanding of the general characteristics of learning in order to apply them in a learning situation. lf learning is a change in behavior as a result of experience, then instruction must include a careful and systematic creation of those experiences that promote learning.
Written by international contributors, Learning Curves: Theory, Models, and Applications first draws a learning map that shows where learning is involved within organizations, then examines how it can be sustained, perfected, and accelerated.
The book reviews empirical findings in the literature in.