What are the Assumptions and Limitations of Learning Curve? – Explained!
2. The second factor is the inherent susceptibility of an operation/task to improvement. Depending on the individual operating on a particular task, there is a greater possibility of improving upon the performance.
Assumptions Underlying Learning Curve:
The concept of learning curve is based on following; assumptions:
1. The learning content is assumed to be a known quantity.
2. The learning curve is particularly helpful in new operations where machines are not a part of the production process. Learning curve does not ignore the human element.
3. The important assumption is that the production will continue without any major breakdowns.
4. The fourth assumption is that the individual continues to learn irrespective of the level of his production. Continuity of learning at a constant rate is the fundamental assumption on which the learning curve is based.
5. The size of some specific production lot is known, from which project cost and performance is measured.
Limitations of Learning Curve Analysis:
Learning curve analysis has the following drawbacks:
1. New employees learn faster than old ones.
2. There are substantial and varying differences in rates of production.
3. Improvement in the direct labour functions reduces the direct labour content in the product.
4. Changes are made in the normal size of the production run.