Page 221 - Microsoft Word - 00 Prelims.docx
P. 221

Quantitative analysis





                           Learning curve and steady state




               The learning curve effect will only apply for a certain range of production. For
               example, machine efficiency  may restrict further improvements or there may be
               go-slow arrangements in place.

               Once the steady state is reached the direct labour hours will not reduce any further
               and this will become the basis on which the target is produced.




                             Eventually, the learning effect will cease and the time to make each
                             successive unit stabilises at  a constant time per unit.




                  Illustrations and further practice



                  Now try Objective Test Question ‘Bike Racers Co’  from Chapter 9.





































                                                                                                   215
   216   217   218   219   220   221   222   223   224   225   226