A dynamic process-based cost modeling approach to understand learning effects in manufacturing
Informed technology decision-making requires a structured understanding of cost evolution over time. A dynamic approach integrating learning curves and process-based cost modeling is introduced to examine learning in manufacturing. The approach is applied to the case of a hydroforming process, and quantifies the cost impacts of learning improvements in cycle time, downtime, and reject rates. A comparison with cases of automotive assembly and wire drawing illustrates that variation in learning is tied to the individual process cost structure. The results show aggregate cost evolution is strongly dependent on cost structure and that major cost elements may not align with major cost improvement-through-learning opportunities. The analyses can be used to focus intentional learning activities on primary learning operational drivers.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dick, Andrew R, 1991. "Learning by Doing and Dumping in the Semiconductor Industry," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 133-159, April.
- Mula, J. & Poler, R. & Garcia-Sabater, J.P. & Lario, F.C., 2006. "Models for production planning under uncertainty: A review," International Journal of Production Economics, Elsevier, vol. 103(1), pages 271-285, September.
- Jaber, Mohamad Y. & Bonney, Maurice, 2003. "Lot sizing with learning and forgetting in set-ups and in product quality," International Journal of Production Economics, Elsevier, vol. 83(1), pages 95-111, January.
- Michael A. Lapré & Amit Shankar Mukherjee & Luk N. Van Wassenhove, 2000. "Behind the Learning Curve: Linking Learning Activities to Waste Reduction," Management Science, INFORMS, vol. 46(5), pages 597-611, May.
- Dar-El, Ezey M. & Rubinovitz, Jacob, 1991. "Using learning theory in assembly lines for new products," International Journal of Production Economics, Elsevier, vol. 25(1-3), pages 103-109.
- Ron Jarmin, 1993.
"Learning By Doing And Competition In The Early Rayon Industry,"
93-4, Center for Economic Studies, U.S. Census Bureau.
- Ronald S. Jarmin, 1994. "Learning by Doing and Competition in the Early Rayon Industry," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 441-454, Autumn.
- Epple, D. & Argote, L. & Darr, E.D., 1995.
"The Acquisition, Transfer and Depreciation of Knowledge in Service Organisations: Productivity in Franchises,"
GSIA Working Papers
1995-16, Carnegie Mellon University, Tepper School of Business.
- Eric D. Darr & Linda Argote & Dennis Epple, 1995. "The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises," Management Science, INFORMS, vol. 41(11), pages 1750-1762, November.
- Johnson, Michael D. & Kirchain, Randolph E., 2009. "Quantifying the effects of product family decisions on material selection: A process-based costing approach," International Journal of Production Economics, Elsevier, vol. 120(2), pages 653-668, August.
- Jaikumar, Ramachandran & Bohn, Roger E., 1992. "A dynamic approach to operations management: An alternative to static optimization," International Journal of Production Economics, Elsevier, vol. 27(3), pages 265-282, October.
- Joskow, Paul L & Rozanski, George A, 1979.
"The Effects of Learning by Doing on Nuclear Plant Operating Reliability,"
The Review of Economics and Statistics,
MIT Press, vol. 61(2), pages 161-168, May.
- P. L. Joskow & G. A. Rozanski, 1977. "The Effects of Learning by Doing on Nuclear Plant Operating Reliability," Working papers 209, Massachusetts Institute of Technology (MIT), Department of Economics.
- Sangho Chung, 2001. "The learning curve and the yield factor: the case of Korea's semiconductor industry," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 473-483.
- Terwiesch, Christian & E. Bohn, Roger, 2001. "Learning and process improvement during production ramp-up," International Journal of Production Economics, Elsevier, vol. 70(1), pages 1-19, March.
- Jaber, M.Y. & Goyal, S.K. & Imran, M., 2008. "Economic production quantity model for items with imperfect quality subject to learning effects," International Journal of Production Economics, Elsevier, vol. 115(1), pages 143-150, September.
- Dudley, Leonard, 1972. "Learning and Productivity Change in Metal Products," American Economic Review, American Economic Association, vol. 62(4), pages 662-669, September.
- Michael A. Lapré & Luk N. Van Wassenhove, 2001. "Creating and Transferring Knowledge for Productivity Improvement in Factories," Management Science, INFORMS, vol. 47(10), pages 1311-1325, October.
- Marshall L. Fisher & Christopher D. Ittner, 1999. "The Impact of Product Variety on Automobile Assembly Operations: Empirical Evidence and Simulation Analysis," Management Science, INFORMS, vol. 45(6), pages 771-786, June.
- Linda Argote & Bill McEvily & Ray Reagans, 2003. "Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes," Management Science, INFORMS, vol. 49(4), pages 571-582, April.
- Gavin Sinclair & Steven Klepper & Wesley Cohen, 2000. "What's Experience Got to Do With It? Sources of Cost Reduction in a Large Specialty Chemicals Producer," Management Science, INFORMS, vol. 46(1), pages 28-45, January.
- Norman Keith Womer, 1979. "Learning Curves, Production Rate, and Program Costs," Management Science, INFORMS, vol. 25(4), pages 312-319, April.
- Argote, L. & Epple, D., 1990. "Learning Curves In Manufacturing," GSIA Working Papers 89-90-02, Carnegie Mellon University, Tepper School of Business.
- Jaber, Mohamad Y. & Guiffrida, Alfred L., 2008. "Learning curves for imperfect production processes with reworks and process restoration interruptions," European Journal of Operational Research, Elsevier, vol. 189(1), pages 93-104, August.
- A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring.
- Nile W. Hatch & David C. Mowery, 1998. "Process Innovation and Learning by Doing in Semiconductor Manufacturing," Management Science, INFORMS, vol. 44(11-Part-1), pages 1461-1477, November.
- Riahi, Keywan & Rubin, Edward S. & Taylor, Margaret R. & Schrattenholzer, Leo & Hounshell, David, 2004. "Technological learning for carbon capture and sequestration technologies," Energy Economics, Elsevier, vol. 26(4), pages 539-564, July.
- Linda Argote & Sara L. Beckman & Dennis Epple, 1990. "The Persistence and Transfer of Learning in Industrial Settings," Management Science, INFORMS, vol. 36(2), pages 140-154, February.
- Alamri, Adel. A. & Balkhi, Zaid T., 2007. "The effects of learning and forgetting on the optimal production lot size for deteriorating items with time varying demand and deterioration rates," International Journal of Production Economics, Elsevier, vol. 107(1), pages 125-138, May.
- Jaber, M.Y. & Bonney, M. & Moualek, I., 2009. "An economic order quantity model for an imperfect production process with entropy cost," International Journal of Production Economics, Elsevier, vol. 118(1), pages 26-33, March.
- Martin B. Zimmerman, 1982. "Learning Effects and the Commercialization of New Energy Technologies: The Case of Nuclear Power," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 297-310, Autumn.
- Darwish, M.A., 2008. "EPQ models with varying setup cost," International Journal of Production Economics, Elsevier, vol. 113(1), pages 297-306, May.
- Jaber, Mohamad Y. & Guiffrida, Alfred L., 2004. "Learning curves for processes generating defects requiring reworks," European Journal of Operational Research, Elsevier, vol. 159(3), pages 663-672, December.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:223-234. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.