On Predicting Production Costs and Probable Learning Rates from Research and Development Investments by S-Curve/Learning Curve Relationships
ARMY MOBILITY EQUIPMENT COMMMAND ST LOUIS MO
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The learning curve, a dynamic rather than a static concept, is a powerful tool of cost forecasting and control. At present, the surface of its potential, outside the aircraft and missile industry, has only been scratched. Voluminous literature exists on the learning curve, unfortunately most of it is limited to the basic ideas of T. P. Wright in 1936. Cochran, recognizing this malady of contemporary learning curve methodology has been introduced several new concepts of learning curve analysis. One of these new concepts is the S- CurveLearning Curve relationship, developed to determine the cost of the effect of engineering changes in an operating system. The principal purpose of this paper is the expansion of the S-Curve concept of cost estimating to include research and development costs and their relation to production costs.
- Administration and Management
- Economics and Cost Analysis