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Inc. Learning Curve Analysis
The "Learning Curve" rule states that whenever the quantity of units manufactured doubles, then the average time to produce a unit is reduced by a constant percentage. Many types of learning curves have been observed, we are using the "Cumulative Average Curve" (Wright Curve) versus the "Unit Theory Curve" (Boeing Curve) because the Wright Curve is a better predictor of purchase prices. Abernathy, William J., and Kenneth Wayne, Limits of Learning Curve, Harvard Business Review, Sept-Oct 1974 Belkaui, Ahmed, The Learning Curve, Quorum Books Cochran, Edward B., Planning Production Costs: Using the Improvement Curve, Chandler Publishing Teplitz, Charles J., The Learning Curve Deskbook, Quorum Books |