Unit Learning Curve without History

Unit Curve Theory states as the total volume of units produced doubles, the cost per unit decreases by some constant percentage.  An important note for using learning curves when their application is appropriate.  Below are some types of scenarios that learning curve application is applicable:

• A high proportion of manual labor

• Uninterrupted production

• Production of complex items

• No major technological change

• Continuous pressure to improve

Lacking statistical analysis, the following guidelines from “Cost Estimator’s Reference Manual – 2nd Edition” by Rodney Stewart can be used:

• 75% hand assembly/25% machining = 80% learning

• 50% hand assembly/50% machining = 85%

• 25% hand assembly/75% machining = 90%

Or

1. Aerospace 85%

2. Shipbuilding 80-85%

3. Complex machine tools for new models 75-85%

4. Repetitive electronics manufacturing 90-95%

5. Repetitive machining or punch-press operations 90-95%

6. repetitive electrical operations 75-85%

7. Repetitive welding operations 90%

8. Raw materials 93-96%

9. Purchased Parts 85-88%

Please note, the Anderlohr Method function can approximate the effect of any break in production.