Experience Curve
Experience curve refers to a diagrammatic representation of the inverse relationship between the total value-added costs of a product and the company experience in manufacturing and marketing it. The concept reviews the history of the term and explores the relationship between production cost and cumulative production quantity.
Technique Overview
Experience Curve Definition
A diagrammatic representation of the inverse relationship between the total value-added costs of a product and company experience in manufacturing and marketing it (McDonald and Schrattenholzer, 2001). For many products and services, unit costs decrease with increasing experience. The idealised pattern describing this kind of technological progress in a regular fashion is referred to as a learning curve, progress curve, experience curve, or learning by doing (Dutton and Thomas, 1984; Argote,1999).
Experience Curve Description *
* The full technique overview will be available soon. Contact us to register your interest in our business management platform, and learn all about Experience Curve.
Business Evidence
Strengths, weaknesses and examples of Experience Curve *
* The business evidence section is for premium members only. Please contact us about accessing the Business Evidence.
Business Application
Implementation, success factors and measures of Experience Curve *
* The business application section is for premium members only. Please contact us about accessing the Business application.
Professional Tools
Experience Curve videos and downloads *
* The professional tools section is for premium members only. Please contact us about accessing the professional tools.
Further Reading
Experience Curve web and print resources *
Experience Curve references (4 of up to 20) *
- Argote, L. and Epple, D. (1990) Learning Curves in Manufacturing. Science, Vol. 247, pp. 920-924.
- Argote, L. (1999) Intraorganizational Learning. Graduate School of Industrial Administration Carnegie Mellon University, Pittsburgh, PA.
- Ashby, W.R. (1964) An Introduction to Cybernetics, London.
- Ashby, W.R. (1964) Introductory Remarks at a Panel Discussion. In M. Mesarovic (Ed.), Views in General Systems Theory, John Wiley, Chichester.
* The further reading section is for premium members only. Please contact us about accessing the further reading.
Learn more about KnowledgeBrief Manage and how you can equip yourself with the knowledge to succeed on Experience Curve and hundreds of other essential business management techniques