Accession Number : AD0612803
Title : THE EXPERIENCE CURVES. VOL. I. 67% THROUGH 84%.
Descriptive Note : Revised ed.
Corporate Author : ARMY MISSILE COMMAND REDSTONE ARSENAL ALA DIRECTORATE OF PROCUREMENT AND PRODUCTION
Report Date : NOV 1964
Pagination or Media Count : 531
Abstract : The experience curve, or the learning or improvement curve, is based on the theory that each time the total quantity of units produced is doubled, the hours or cost to produce the last unit of this doubled quantity will be reduced by a constant percentage. A 20% decrease in the effort to produce double quantities is referred to as an 80% slope, a 15% decrease as an 85% slope. The pattern of experience curve is hyperbolic when drawn on arithmetical graph paper and is a straight line when drawn on logarithmic (log-log) paper. Factors that contribute to the decline of the unit cost as cumulative production increases are: (1) workers become more familiar with the job due to repetition; (2) development of more efficient tools and machines; (3) improvement in organization and management; and (4) solution of engineering problems. CONTENTS: What is the experience curve; solution of the experience curve using empirical data; examples of experience curve calculations using empirical data; definition of terms; procedures for the use of the experience curve factor tables; experience curve factor tables: 67 through 84%.
Descriptors : (*ECONOMICS, THEORY), (*PRODUCTION CONTROL, THEORY), (*MANPOWER, THEORY), INVENTORY CONTROL, INVENTORY ANALYSIS, MANAGEMENT PLANNING AND CONTROL, COSTS, TABLES(DATA), GRAPHICS
Distribution Statement : APPROVED FOR PUBLIC RELEASE