1. Problem recognition, definition and evaluation
Blog Posting is a weekly assignment to be done by team member. After posting 8 weeks of blog, the actual data is presented in Table 1 below. By applying learning curve theory, how much time will it need to write a posting blog in week 24?
Table 1. Actual Blog Writing Duration
Week
|
Title
|
Writing (Minutes)
|
Average (Minutes)
|
1
|
Mahakam13 Team Stage
|
90
|
90.0
|
2
|
Paper Topic-1 Force Field Analysis
|
80
|
85.0
|
3
|
Paper Topic-2 Force Field Analysis
|
80
|
83.3
|
4
|
Paper Topic Force Field Final
|
80
|
82.5
|
5
|
Paper Topic Non Compensatory Model
|
75
|
81.0
|
6
|
Paper Topic Compensatory Model
|
75
|
80.0
|
7
|
EPCI Payment Term & Tender Price
|
80
|
80.0
|
8
|
Billet Price and Gold Equivalent
|
70
|
78.8
|
2. Development of the feasible alternative
The concept of the learning curve was introduced to the aircraft industry in 1936 when T. P. Wright published an article in the February 1936 Journal of the Aeronautical Science. The learning curve method is basically based on concept where [input resources] reduce on [per output unit] basis as [number of units produces] increases. The formula of learning curve is shown as follows:
Z (u) = K * un
n = log (S) / log (2)
Where,
Z = estimated unit time u
K = unit for production time 1
S = efficiency / improvement / learning rate
3. Development of the outcomes
Using those equations, Table 2 and Figure 1 describes the learning process, where K = 90 and S = 90%.
Table 2. Learning Curve Calculation
Week
|
Unit Time (Min's)
|
Average Time (Min's)
|
1
|
90.00
|
90.0
|
2
|
81.00
|
85.5
|
3
|
76.16
|
82.4
|
4
|
72.90
|
80.0
|
5
|
70.47
|
78.1
|
6
|
68.54
|
76.5
|
7
|
66.96
|
75.1
|
8
|
65.61
|
74.0
|
9
|
64.45
|
72.9
|
10
|
63.42
|
72.0
|
11
|
62.51
|
71.1
|
12
|
61.69
|
70.3
|
13
|
60.94
|
69.6
|
14
|
60.26
|
68.9
|
15
|
59.63
|
68.3
|
16
|
59.05
|
67.7
|
17
|
58.51
|
67.2
|
18
|
58.00
|
66.7
|
19
|
57.53
|
66.2
|
20
|
57.08
|
65.7
|
21
|
56.66
|
65.3
|
22
|
56.26
|
64.9
|
23
|
55.88
|
64.5
|
24
|
55.52
|
64.1
|
Figure 1. Learning Curve of Blog Posting
Furthermore, the learning process can be also analyzed using trend line concept using Ms Excel. Figure 2 presents the data and trend line curve, in which equation used is logarithmic.
Figure 2. Learning Curve using Trend Line
4. Criteria of Selection
Using trend line, the selection of equation is based on R-squared number that represent how fit the equitation plotted to existing data. Table 2 presents learning curve calculation using trend line method.
Table 2. Learning Curve Calculation using Trend Line
Trend line Writing Duration
|
R Squared
|
Est. Week 24 (Min)
| |
a
|
Exponential
|
0.6475
|
49.2
|
b
|
Linear
|
0.6416
|
41.6
|
c
|
Logarithmic
|
0.7324
|
65.6
|
d
|
Power
|
0.7189
|
66.8
|
Trend line Average Duration
|
R Squared
|
Est. Week 24 (Min)
| |
a
|
Exponential
|
0.8731
|
60.5
|
b
|
Linear
|
0.8597
|
55.8
|
c
|
Logarithmic
|
0.9815
|
73.1
|
d
|
Power
|
0.9847
|
73.7
|
5. Analysis
The results of two methods in estimating blog posting week 24 are as follows:
Method
|
W24 Writing Duration (Min's)
|
W24 Average Duration (Min's)
|
Learning Formula
|
55.52
|
64.1
|
Trend Line
|
65.6
|
73.1
|
In trend line method, logarithmic is selected as best equation of writing duration since it has the highest R-squared. Logarithmic is also consistently selected in writing average even though its R-squared is less than Power equation, but it is very slightly difference.
By comparing the duration estimated by learning formula and actual duration as shown in Figure 3, the learning formula is overestimated almost in every blog posting. This is because the learning formula using fixed improvement rate (90%) that means activity is assumed as a full repetitive work. In fact, blog posting is not a full repetitive activity, since the blog topic is always different every week. The activity is the same, blog posting, but the contents of blog is not.
Figure 3. Learning Curve Formula vs Actual
6. Selection of alternative
As result of that, the trend line method is chosen since it is better in representing the performance of blog posting activity.
7. Performance monitoring and post-evaluation of results
Learning curve using learning formula is only based on production time 1 and assumed with steady learning/performance rate over time. Meanwhile learning curve using trend line can be based on several data and more representing the actual performance.
To sum up, this shows that applying learning curve using fix formula is suitable for repetitive activity that has same tasks over time. So, it is important to understand the nature of activity when using learning curve concepts.
References:
· Management Accountant. (2012, Oct 4). Learning Curve Theory. Retrieved from: http://www.managementaccountant.in/2007/04/learning-curve-theory.html
· NASA. (2012, Oct 4). Learning Curve Calculator. Retrieved from: http://cost.jsc.nasa.gov/learn.html
· Sullivan, W.G., Wicks, E. M., & Koelling, C. P. (2012). Engineering Economy, pp. 86-89
AWESOME posting, Pak Trian!! Every week I look forward to seeing the great case studies you select and how completely you analyze them. Truly outstanding work and I am very impressed.
ReplyDeleteAlso very thrilled to see you so far ahead in your blog postings. Outstanding "leadership by example"..... There is no more sincere form of leadership than "leading from the front"..... Take 3-4 minutes to watch this movie trailer from the movie "We were Soldiers". http://www.youtube.com/watch?v=h0yUlbAt8Kk Comment on the speech Col Hal Moore and why "leading from the front" is the most effective way to lead.
Would you be willing to do a blog posting on "Leadership" as it applies to this course? To your day to day working environment?
BR,
Dr. PDG, Singapore.