©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
GMS 401 - TEST 2 STUDY GUIDE
SOLUTIONS
Learning Curves - ANSWER✔✔-The premise that people and
organizations get better at their
tasks as the tasks are repeated;
sometimes called experience
curves.
Major Roles in Learning Curves - ANSWER✔✔-employment levels, costs, capacity, and pricing.
Doubling of Production - ANSWER✔✔-when production doubles, the decrease in time per unit affects
the rate of the learning curve.
T x L^n= time required for the nth unit
Page 1/16
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
The Rate of Learning - ANSWER✔✔-depends on the the quality management and the potential of the
process and product.
What Disrupts the Learning Curve - ANSWER✔✔-Any change in process, product, or personnel disrupts
the learning curve.
The steeper the slope of learning curve - ANSWER✔✔-the faster the drop in costs
(75% learning rate is better than 85%)
products that decline more steeply than others - ANSWER✔✔-Stable, standardized products and
processes
Learning Curves are useful for - ANSWER✔✔-1. Internal: Labour forecasting, scheduling, establishing
costs and budgets
2. External: Supply Chain Negotiations
3. Strategic: Evaluation of a Company and industry performance, including costs and pricing.
If Learning Curves are Ignored - ANSWER✔✔-Problems such as
Page 2/16
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Scheduling Mismatches - Leading to idle labour and productive efficiencies
Refusal to accept new orders because capacity is assumed to be full
Missing and opportunity to negotiate with suppliers for lower purchase prices as a result of large orders.
Three Ways to Approach the Mathematics of Learning Curves - ANSWER✔✔-1. Arithmetic Analysis
2. Logarithmic Analysis
3. Learning Curve Coefficients
Arithmetic Approach - ANSWER✔✔-uses the production doubling equation
T x L^n = time required for nth unit
Logarithmic Approach - ANSWER✔✔-Allows us to determine the labour for any unit
Page 3/16
FIRST PUBLISH OCTOBER 2024
GMS 401 - TEST 2 STUDY GUIDE
SOLUTIONS
Learning Curves - ANSWER✔✔-The premise that people and
organizations get better at their
tasks as the tasks are repeated;
sometimes called experience
curves.
Major Roles in Learning Curves - ANSWER✔✔-employment levels, costs, capacity, and pricing.
Doubling of Production - ANSWER✔✔-when production doubles, the decrease in time per unit affects
the rate of the learning curve.
T x L^n= time required for the nth unit
Page 1/16
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
The Rate of Learning - ANSWER✔✔-depends on the the quality management and the potential of the
process and product.
What Disrupts the Learning Curve - ANSWER✔✔-Any change in process, product, or personnel disrupts
the learning curve.
The steeper the slope of learning curve - ANSWER✔✔-the faster the drop in costs
(75% learning rate is better than 85%)
products that decline more steeply than others - ANSWER✔✔-Stable, standardized products and
processes
Learning Curves are useful for - ANSWER✔✔-1. Internal: Labour forecasting, scheduling, establishing
costs and budgets
2. External: Supply Chain Negotiations
3. Strategic: Evaluation of a Company and industry performance, including costs and pricing.
If Learning Curves are Ignored - ANSWER✔✔-Problems such as
Page 2/16
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Scheduling Mismatches - Leading to idle labour and productive efficiencies
Refusal to accept new orders because capacity is assumed to be full
Missing and opportunity to negotiate with suppliers for lower purchase prices as a result of large orders.
Three Ways to Approach the Mathematics of Learning Curves - ANSWER✔✔-1. Arithmetic Analysis
2. Logarithmic Analysis
3. Learning Curve Coefficients
Arithmetic Approach - ANSWER✔✔-uses the production doubling equation
T x L^n = time required for nth unit
Logarithmic Approach - ANSWER✔✔-Allows us to determine the labour for any unit
Page 3/16
