Application of Learning Curve: An Analysis

8 Pages Posted: 6 Jun 2011

See all articles by Dr. Furrukh Bashir

Dr. Furrukh Bashir

University of the Punjab (PU) - Department of Economics; The Islamia University of Bahawalpur, Pakistan

Samina Jahan

affiliation not provided to SSRN

Anum Noor

affiliation not provided to SSRN

Date Written: May 30, 2011

Abstract

The main intention of this paper is to check the application of learning curve phenomenon with the managerial point of view. Repetition of the task is likely to make people more confident and knowledgeable and will eventually result in a more efficient and rapid operation. So to check this concept, actual data on average cost and output of Sial clothing mills in Shuja Abad, Multan has been collected for the time period from January 2007 to December 2009. By using E-views, we have estimated a learning curve equation by regressing average cost against output. The result of our study shows that as the level of output of the company is increased its average cost is decreased, it means firm is gaining experience from past mistakes and successful in decreasing average cost with the level of output. So if managers focus on this aspect then it will help them to reduce the average cost.

Keywords: Learning curve, Sial clothing mills, average cost, total output

Suggested Citation

Bashir, Furrukh and Jahan, Samina and Noor, Anum, Application of Learning Curve: An Analysis (May 30, 2011). Available at SSRN: https://ssrn.com/abstract=1858224 or http://dx.doi.org/10.2139/ssrn.1858224

Furrukh Bashir (Contact Author)

University of the Punjab (PU) - Department of Economics ( email )

Lahore
Pakistan

The Islamia University of Bahawalpur, Pakistan ( email )

Bahawalpur, Punjab 63100
Pakistan

Samina Jahan

affiliation not provided to SSRN

Anum Noor

affiliation not provided to SSRN

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