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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.

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