Transcription of Cost Estimation - iceaaonline.com
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cost Estimation Chapter 10. Learning Curves: Unit theory Gregory K. Mislick, LtCol, USMC (Ret). Department of Operations Research Naval Postgraduate School Learning Curve Analysis Developed as a tool to estimate the recurring costs in a production process Recurring costs: those costs incurred on each unit of production. There are no learning curves associated with overhead costs, just manufacturing costs. Dominant factor in learning theory is direct labor Based on the common observation that as a task is accomplished several times, it can be completed in shorter periods of time Each time you perform a task, you become better at it and accomplish the task faster than the previous time.
ICEAA 2016 Bristol – TRN 03 Cost Estimation Chapter 10 Learning Curves: Unit Theory Gregory K. Mislick, LtCol, USMC (Ret) Department of Operations Research
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