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Cost modelling based on experience: do we have it backwards?

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  • John D. Hanson

Abstract

Case study research is conducted using Kaizen events to study learning mechanisms in process improvement initiatives. It is found that cumulative production experience is not the significant factor that has been traditionally supposed. A forward-looking model of learning is proposed that replicates empirical results at least as well as a classical learning curve. This model has implications for managing buyer-seller relationships on a forward-looking basis.

Suggested Citation

  • John D. Hanson, 2011. "Cost modelling based on experience: do we have it backwards?," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 4(5), pages 549-565.
    • Handle: RePEc:ids:ijpman:v:4:y:2011:i:5:p:549-565
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