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MANAGING LEARNING CURVES IN FACTORIES BY

CREATING AND TRANSFERRING KNOWLEDGE

Reading 7 Presentation
(Management of Technology Transfer & Adoption (MSL 703))
Guided by: Prof. Sushil
Presented by: Group 8 (Akshay Chauhan, Hemant Tiwari, Rishabh Kumar, Shrey Wason, Shyam Kumar & Deepak
Kumar)
 Outline:
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 Learning Curve & Learning Rate

 Barriers to Learning Rate
 Learning Process
 Measuring the Impact of Learning
 Accelerate the Learning Curve by Designing a
Production Line - “N.V. Bekaert Case”
 Replication of Model Line & Challenges
 Conclusion
 Learning Curve & Learning Rate
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The Learning curve (LC) is a relationship between unit production cost and the
cumulative number of units produced. Rate at which it varies is “learning rate”.

 Learning rate varies with across industries, within industries, within firms, and
even across workers within a factory.
 Learning Rate is Sustainable Competitive Advantage.
 Barriers to Learning Rate (Production
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Scenario)
 Dynamic Complexity: Separation of cause-and-effect in time
and space.
 Detail Complexity: Presence of too many variables, which
makes it difficult to comprehend a system in its entirety.
 Ambiguity: Simultaneous existence of equally plausible but
mutually contradicting explanations of a situation.
 Incomplete Technological Knowledge: Lack of a full
understanding of the effects of input variables of a process on
the output.
 Learning Process
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Observe Assess Design Implementation

Symptom Cause Remedy Action

 Learning Process…
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Operational Learning Conceptual Learning

1. Process of obtaining validation of 1. Better understanding of cause and
action-outcome links. effect relationships.

2. Operational learning is high if a team 2. Use of scientific models and statistical

modifies action variables and observes experiments to assess underlying causes
positive follow-up of experimental results. for the problem at hand.

3. Cause and Effect relationship is not 3. Design a concept or theory to explain

clearly understood. the occurrence of problem.

4. Yields know-how. 4. Yields know-why.

 Measuring Impact of Learning
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To investigate the impact of conceptual and operational learning on the

factory’s learning curve, quality improvement projects are classified
into four categories.
Firefighting—
 In projects with low levels of conceptual and operational learning.

 Teams hardly reflect on cause-and-effect relationships.

Artisan Skills—
 Projects with low conceptual learning but high operational

learning create know-how.

 Why is ill-understood, more ambiguity.

 Does not affect global learning curve.

 Less Global Adoption

 Measuring Impact of Learning…
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Non-Validated Theory-
 Science and statistical experiments to assess cause-and-effect
relationships
 Verification of such concept is absent

 Slow down the global rate of learning

 Fine Tuning is necessary

Operationally Validated Theory-

 High levels of both conceptual and operational learning

 Enhanced the global rate of waste reduction

 Knowledge stocks affect the global
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rate of learning…
 Accelerate the Learning Curve by Designing a
Production Line - “N.V. Bekaert Case”
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 Model Line at Aalter Plant (MLA) in 1988 for

Process Optimization
 To Create Fundamental Process Control Knowledge
 Integrated Line
 Hypothesis testing with natural and controlled
variables
 Regression Output used modify limits of
SPC(Statistical Process Control)
 Produced Operationally Validated Theory
 Model Line A (MLA)
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 Higher Stages of Technical Knowledge

 Level 1 (clueless) to level 5 (a scientific model)
 Predict variation in Quality/Productivity with change in process
parameter
 Measuring Impact on Learning Curve
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Total Factory Production (TFP) =Value of Output/Sum of Cost of

Input
 Replication of Model Lines
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 TFP Regression Analysis
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Learning Variables:
1. Learning by doing
2. Formal learning
3. Transfer of learning by doing
4. Transfer of formal learning
 Pitfalls in Replicating ML
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Stable Environment
Eg. Continuity in resources

Organizational Context
 Management Buy-in

 Interdepartmental Problem Solving

 Pitfalls in Replicating ML…
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MLB: Lack of Management Buy-In

MLC/MLC1: Lack of Interdepartmental Problem
Solving
MLC2: Lack of High-Quality Ore to Mine
 Conclusion
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 Managing learning curves in factories is tough task.

 Production personnel should engage in both conceptual
and operational learning to tackle barriers: dynamic
complexity, detail complexity, ambiguity, and
incomplete technological knowledge.
 Local learning can spread globally.
 Learning laboratory in a factory requires knowledge
diversity.
 Learning to learn requires a concerted and dedicated
effort.
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Thank You