Page 249 - PM Integrated Workbook 2018-19
P. 249
Quantitative analysis
Learning curves
It has been observed in some industries that there is a tendency for
labour time per unit to reduce in time: as more of the units are
produced, workers become more familiar with the task and get
quicker per unit declines.
Wright's Law
Wright's Law states that as cumulative output doubles, the cumulative average
time per unit falls to a fixed percentage (the 'learning rate') of the previous average
time.
The learning curve is 'The mathematical expression of the commonly observed
effect that, as complex and labour-intensive procedures are repeated, unit labour
times tend to decrease'.
Average time per unit for all units
produced to date
Total number of units produced
241
