Learning Curve Analysis in Project Management Author’s Name Institute Name Learning Curve Analysis in Project Management Large-scale orders, especially those involving more than one business department and large amounts of resources, require sophisticated project management tools. As managers are increasingly burdened to make the right decisions regarding their numerous projects, they must have in-depth understanding of project management control tools and techniques (Monczka, Handfield, Giunipero, & Patterson, 2016). One such highly useful technique is a learning curve. The curve holds such significant power that it plays a key role in making several strategic decisions regarding bid preparation, labor requirement estimation, …show more content…
The components of a learning curve analysis include slope of the learning curve, unit one, unit hours (usually in terms of labor hours), cumulative total hours and cumulative average hours. The slope of the curve represents the intensity of learning or improvement e.g. a curve representing a 20% learning effect will have slope of 80%. Unit one refers to the very first unit produced in a production run. Unit hours are the labor hours consumed to produce any single unit of production. Cumulative total hours refer to the sum of labor hours consumed for the production of all units. Cumulative average hour is the total hours expended per unit for all units (Kerzner, 2013). Usually a learning curve is expected to be negatively exponential. However, sometimes there can be variations. In some cases, a learning curve levels off due to labor dissatisfaction, transfer of labor or elimination of production line. On the other hand, a toe-up or scallop refers to a rise in the curve. It can occur due to substantial changes in business operations such as change of premises or change of business model etc. (Hirschmann, …show more content…
In fact, it holds practical relevance. Using the learning curve analysis can lead to better project management and improved decision making for organizations as well as individuals. However, care must be taken in estimating all the variables involved, as the results will be as good as the estimates. Moreover, managers should keep in mind that the curve does not substitute for actual experience; therefore, they should be open to new opportunities and reevaluations. References Adler, P. S., & Clark, K. B. (1991, March). Behind the Learning Curve: A Sketch of the Learning Process. Management Science, 37(3), 267-281. Retrieved from http://sjbae.pbworks.com/f/adler+1991.pdf Caruso, J. (2002). Project Management Success and the Learning Curve. Project Times. Heizer, J., & Render, B. (2011). Operations Management. Prentice Hall. Hirschmann, W. B. (1964). Profit from the Learning Curve. Harvard Business Review. Kerzner, H. R. (2013). Project Management- A Systems Approach to Planning, Scheduling, and. John Wiley & Sons, Inc. Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2016). Operations Management: Processes and Supply Chains: Global Edition . Pearson. Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage
Vonderembse, M.A. & White, G. P. (2013). Operations Management. San Diego, Ca: Bridgepoint Education, Inc.
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling and Controlling. Hoboken, NJ: Wiley.
From this study conducted, the knowledge, skills and abilities that I need as project manager is very well explained and can help me to focus and achieve success on my career path. No generalization can be assumed from the results of this study simply because the requirements and demands for recruitment vary between countries and industries.
Nigel, S., Alistair, B.J. and Robert, J. (2011) Essentials of Operations Management, 2nd edn., Italy: Pearson Education Limited.
Slack, N., Chambers, S., & Johnston R. (2007). Operations Management. Upper Saddle River, NJ: Pearson Prentice Hall. Retrieved on February 06, 2014 from SMC Learning Resources
...nizations. The article does not tend to use real life examples in current organizations. I have found that learning curves are expedited when theories and knowledge can be presented with and backed up by unique examples. By using examples and specific situations, literature and research articles would captivate and further challenge readers to learn new concepts better.
Kezner, H. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 6th. New York: John Wiley and Sons, Inc, 1998. Print.
As a production manager, it is important to understand the practical limits of this type of cost reduction and the implications of applying such a strategy. As the organization reaches the practical limit of this strategy, it may not have the flexibility or capability to continue to innovate and make improvements in production efficiency. The decision to apply a learning curve strategy to any production effort relies on comparing the potential gains in production cost reduction with the eventual loss in the ability to improve and innovate. Remember that learning curves differ from company to company, from product to product and from industry to industry and can be very
Project Management Institute . (2008). A Guide to the Project Management body Of Knowledge. Newton Square, PA: Project Management Institute, Inc.
Slack, N., Chambers, S., Johnston, R., Betts, A.,(2009). Operations and process management: Second edition. Harlow: Pearson Education Limited
Module 14.5 Production and Supply-Chain Management. (n.d.). http:www.saylor.org/books. Retrieved April 27, 2014, from https://learn.vccs.edu/bbcswebdav/pid-52233385-dt-content-rid-34362940_2/courses/TC295.BUS.280.OZ2C.SP14/Section-14-5.pdf pg 676
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.