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Overlay the slope protractor on the line, and find the learning slope in percent 4. Obtain values of the learning slope from the table 5. 4 Application Examples The learning curve is a primary tool of the Department of Defense and defense contractors in negotiating final prices for military hardware. In many applications, its usefulness in pricing decisions can extend even beyond direct labor costs. The curve is useful in make-or-buy analysis, especially when buying means ordering on a negotiated price basis.

The outline is a general guide and will vary depending on the complexity of the product or system, schedule, quantity to be produced, and technology. Request design data Prepare cost estimating outline Milestones Purchasing Original equipment manufacturing (OEM) Production Test Field engineering Analyze material and labor inputs Use independent judgment where voids exist Prepare MLB (material, labor, and burden) Determine learning curve base for each category: Example: Material—cum. avg. or first-year block Labor—production cum.

2. When special tooling is required, utilize the design concepts of previously well-engineered tools. 3. When special tools and fixtures are required, use low-cost tooling materials in place of tool steel wherever possible. 5 Determination of Facility Requirements The operation process chart, which describes the manufacturing process used to build the product, also defines the layout of the factory to support product manufacturing. The amount of floor space required is a function of the size of machines and of the equipment in the manufacturing process, the area required to work and service the machines and equipment, and the number of units of product in flow and in process at the planned peak production rate.

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