Learning curve calculation, experience curve | Free template

Learning curve calculation is a free template that can be used to graphically create an experience curve that show the correlation between time per unit and cumulative number of units produced.

Organizations and individuals improve themselves over time as training or practice gives more experience. As organizations and employees performing tasks over and over again, they learn to work more productively, which reduces the time and cost required to perform the task. Learning curve is a mathematical and graphical method to describe the relationship between time per unit and number of units produced. Learning curve is also called the experience curve, and this means that the time to perform a task decreases the more times this task is repeated in time.

The learning curve has a negative exponential slope and the largest savings in time are made at the beginning because the learning curve is affected when production is doubled. If the learning curve rate is 60% it takes 60% of the time of the first unit to produce the second unit and the fourth unit takes 60% of the time for the second unit.

The learning curve is very useful in the strategic planning as it describes a relationship that it is very important to take into account in all business. The learning curve affects how much work that is required, future costs, pricing, future profitability and the timing planning and more. Different organizations and different products have different learning curves. The learning curve is affected by the management's ability and the potential of the company's processes and products.

A learning curve is determined by the learning curve rate for a process or task, the learning curve rate is given as a percentage for how long the task takes when production is doubled in relation to the time before the production doubled. A learning rate of 60% means that the time required for a doubling of production is 60% of the time for the unit that was made before the doubling. A learning rate of 60% represents an improvement rate of 40% meaning that the time decreases by 40% for each doubling of production.

You can use this template to create a learning curve for a process or task in your company to better plan capacity requirements, time and costs in your business. Learning curve can also be used in negotiations with suppliers in the purchase process to negotiate a better and cheaper price when the volume is higher. Updated: 01/01/2015 | Created by All-templates.biz

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