Track: Technology Management
A learning curve is a powerful tool for companies producing large lots or cutting-edge products, enabling them to negotiate cost savings. New products and services are crucial for the growth of any business, particularly in the technology sector. However, they also come with inherent risks. One of these challenges is the learning curve associated with new offerings. By applying the learning curve, companies can assess the cost savings achieved through acquiring new skills. A common mistake is to price new products solely based on their initial manufacturing costs. However, if businesses utilize the learning curve effectively, it can be a valuable tool for estimating costs, improving productivity, and achieving long-term profitability. Understanding and implementing the learning curve empowers companies to make informed pricing, resource allocation, and project management decisions. It allows them to optimize their processes and identify opportunities for cost reduction and improved performance. The study aims to determine the learning rate for emerging or exceptionally large-scale products where traditional learning curve theory may not readily apply. This research will show how large corporations and defense organizations can effectively use the learning curve to manage extensive projects involving emerging products and services.