Question

Define and thoroughly discuss the Learning Curve Theory and how it applies to project management.

Explain how you would apply the principles of the Learning Curve Theory to a real project in which you are familiar (as a project manager, team member, or one that you have read about in current events).

Answer 1

Answer 1:

Learning curves are used in various business applications, especially manufacturing. It shows relationship between unit production time and the cumulative number of the units produced. As the workers keep on repeating a particular process, their efficiency improves and thus time needed to complete a particular task declines.

The learning curve is constructed based on three following assumptions-

1. The amount of time taken to complete a given task or unit of a product will be less each time the task is undertaken.

2. The unit time needed to complete a task decreases at a decreasing rate.

3. Reduction in time will follow a particular pattern.

It might differ from industry to industry. It is an excellent way to examine the performance of employees. It is used by businesses to conduct production planning, cost forecasting and logistic schedules. Thus, it is an important tool in project management.