Question

What relationship is there between learning curves and capacity analysis?

Short answer

The costs of production can be estimated using learning curves in capacity analysis.

Step-by-step solution

Introduction

Understanding an operation's capacity is conducted through capacity analysis. In this context, "capacity" can indicate a variety of things, and a genuinely thorough capacity study will assess the physical capacity of your buildings and infrastructure andyour manufacturing and technical capacities.

A learning curve is a graphical illustration of the rate of learning something over time or through repeated experiences. Learning curves serve as a visual representation of comparative learning improvement over time and the expected complexity of a field.

Relationship between learning curves and capacity analysis

A learning curve mathematically represents the relationship between the unit production time and the total output. Incapacity analysis and learning curves can be used to calculate production costs. As the time to create a unit gets shorter, learning will make a system's best operating level higher. The system can create more even if capital resources stay constant because of the impact of learning.