Question

Jericho Vehicles is considering making a bid for a mobile rocket-launching system for the U.S. military. However, the company has almost no experience in producing this type of vehicle. In an effort to develop a learning curve for the production of this new mobile weapon system,

Answer 1

Mobile rocket-launching system

The rate of improvement is strikingly consistent across a number of manufacturers. Workers learn how to produce how to do a job better.

The learning curve effect was introduced in 1936. As workers repeat their tasks, their performance increases. It was introduced in the Journal of Aeronautical Sciences. Direct labour cost decreases as the number of planes produced increases. As workers produce more they become better at their jobs. Other production related factors such as retooling, job redesign, worker motivation, method analysis and improvement.

The learning curve is used extensively in the labour industry. It is estimated to be 85% in the aerospace industry; it is used for estimating the cost of production, and, the time to complete tasks.

The limitations of the learning curve are that product modification negates the tc effect; industry derived the tc rates may be inappropriate. The effect of the learning curve is most pronounced in the aerospace industry as it involves the competitive operations.