Characteristics of Learning Curve Theory

Characteristics Learning Curve Theory

Learning curve concept is based on the learning of labour during the production process. Learning curve explains that cumulative average time per unit fall with constant rate, when output is doubled. This theory has following characteristics

1.    Repetitive Nature of Job

Learning curve concept is associated with repetitive nature of jobs; where labour get experience & efficiency with passage of time.

2.    Efficiency improves

Learning curve concept explains that with passage of time, efficiency of labour increases and therefore labour cost reduces due to that efficiency.

3.    Unit Cost Falls

learning curve explains that due to reduction in labour cost, there will be a continue fall in unit cost of product, because labour cost is component of unit cost.

4.    Learning process Short Term

Learning process in product is short term in nature, and after some stage, there will be no more learning for labour, and therefore, there will be no more reduction in cost.

5.    Labour Intensive product

Learning curve concept is more relevant in production process of labour intensive product. In machine intensive product, this concept is not relevant.

6.    Doubled output

Doubled output is important feature of theory. Production was double from 100 units double to 200 units, then unit cumulative time may have reduced to 70%. Technically it is 70% learning curve case.