To explain: The reason why learning curve mainly applies to direct labor rather than indirect labor.
Purchasing and supply chain analysis tools and techniques:
It is essential for possessing the right tools and techniques in
Explanation of Solution
The learning curve is the rate of improvement in the production process or efficiency due to the knowledge gained over time in a particular course of action. Direct labor affects the time taken to develop directly. Indirect labor does not have a direct impact on the development of a product.
Learning curve applies only to the direct labor time involved in developing a product. Usually, a product development time is reduced by cutting the direct labor time with the help of the learning curve. Therefore, there is only one labor associated with the labor curve.
Hence, learning curve mainly applies to direct labor rather than indirect labor.
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Chapter 12 Solutions
Purchasing and Supply Chain Management
- The Learning curve theory is based on which three assumptions and explains?arrow_forwardPredict how human learning will affect task times and cost in the learning curve application of budgeting. Present a scenario and a proposed solution.arrow_forwardAre learning and transfer of training related? Explain why or why not.arrow_forward
- Why isn't the learning-curve concept as applicable in a high-volume assembly line as it is in most other human activities?arrow_forwardState the Techniques a firm can use to move to a sharper learning curve?arrow_forwardExplain how changes in a process, once it is under way, can cause scallops in a learning curve.arrow_forward
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