Apply the Learning Curve Theory

Apply the Learning Curve Theory
As we draw even closer to a new decade there has been one constant about the world that everyone can agree on. That constant has been that technology keeps moving forward and rarely looks back. Businesses use new technology when they want to advance their company and save money on “other than personnel expenses”. Even with new technology people do understand they are not going to make a profit immediately. The corporate owners are looking more long term then short term and are willing to sacrifice money now to make it back in a few years plus interest. People that this new technology is introduced to need to learn how to use it and there is a learning curve associated with a learning a new task. This will also play a role on how soon a company can turn around an expensive purchase to lucrative income. Additional methods of helping to increase profit are by changing how business is done. Some of them include introducing six sigma tools and techniques. As well as adhering to a total quality management philosophy.
When we are born we have to learn how to walk, talk, and even eat properly. We do this until we get the hang of it. Some people get the hang of it faster than other but you can generalize about when that occurrence will become second nature. Each time a person has the chance to do something over again they are learning to get it right. An example of this would be to introduce a new cutting machine to a lumber company. Each time a worker gets to use the new machine they become more proficient with it cutting down on time it takes to produce the product. In technical terms “Consistency in improvement has been found to exist in the form of a constant percentage reduction in time required over successively doubled quantities of units produced. The constant percentage by which the costs of doubled quantities decrease is called the rate of learning. The slope of the learning curve is 100 minus the rate of learning. For example,...