Learning curve theory
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Video Overview
When a product is first made, a worker should be able to learn and become more confident and knowledgeable about how the product is made and, therefore, become more efficient or quicker as more units of the same product are made. A point or plateau should then be reached where the worker is at maximum efficiency and not able to continue to increase efficiency. This gives rise to what is known as the learning curve theory. The learning curve theory states that every time production doubles, the cumulative average labour hours per unit will decrease by a constant percentage up to a maximum point of efficiency. In this tutorial, we will discuss learning curve theory.
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