Learning and Experience Curves — A Review

Abstract

The origin and applications of learning curves. Learning curves were first noticed by aircraft producers before World War II. The time taken to assemble a new type of aircraft diminished with each successive airframe built. Typically, the time taken for assembly had dropped by 20% each time the cumulative output had doubled. Later, similar “start up effects” were noticed in many other industries, and were used for contract negotiations and for cost control. Prices of new products, especially chemicals, often fell with time and output according to some kind of “learning curve”. However exceptions to the “learning curve” were sometimes found. Assembly times sometimes ceased to drop, or dropped at different rates at different sites.

Citation

Howell, S. (1981), "Learning and Experience Curves — A Review", Managerial Finance, Vol. 7 No. 1, pp. 26-28. https://doi.org/10.1108/eb013482