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Performance Improvement

Performance Improvement. Learning (Improvement of Performance) = Reduced Production Time and/or Reduced Errors Learning = Individual + Organizational (Manufacturing Progress). Learning Curves. Theory As people gain experience performing a task,

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Performance Improvement

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  1. Performance Improvement • Learning (Improvement of Performance) = • Reduced Production Time and/or Reduced Errors • Learning = Individual + Organizational • (Manufacturing Progress)

  2. Learning Curves • Theory • As people gain experience performing a task, • the time it takes to complete the task decreases. • Specifically, • as the accumulated number of units doubles, • the time required to produce a unit declines • at a constant rate. • Note: Cognitive Learning > Manual Learning

  3. Learning Curve Equations • Hyperbolic Yx = KXN • Logarithmic log Yx = log K + N log X • Yx = Cumulative Average Time to Produce X Units • K = Time Required to Produce the First Unit • X = Cumulative Total Number of Units Produced • N = Exponent of the Learning Curve Slope (tan q)

  4. Synonyms • Learning Curve • Manufacturing Progress Function • Cost / Quantity Relationship • Product Acceleration Curve • Improvement Curve • Performance Curve • Experience Curve • Efficiency Curve

  5. Typical Productivity Learning Curve

  6. 80% Learning Curve

  7. Learning Curve • Slope LC % • - 0.514 70 • - 0.415 75 Assembling • - 0.322 80 • - 0.234 85 Welding • - 0.152 90 • - 0.074 95 Machining

  8. Notes • LC % = 2N where N = tan q • New Production Time (Cost) = LC % x Old • As total number of production units increases and/ • or average production time per unit decreases, • q (tan q) decreases which implies LC % increases. • Shallow learning curves (higher LC %) means • relatively limited cost savings.

  9. Learning Curve Solutions Click for Solutions Generator

  10. Food for Thought • Was it Agatha Christie’s Inspector Poirot or maybe • Dr. Watson’s comment to Sherlock Holmes • “we often go more quickly by going more slowly”. • Maxim for Computer-Aided Statistical Analysis • Garbage In = Gospel Out

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