Statistical Models Commons^™

Cost Estimating Using A New Learning Curve Theory For Non-Constant Production Rates, Dakotah Hogan, John J. Elshaw, Clay M. Koschnick, Jonathan D. Ritschel, Adedeji B. Badiru, Shawn M. Valentine

Faculty Publications

Traditional learning curve theory assumes a constant learning rate regardless of the number of units produced. However, a collection of theoretical and empirical evidence indicates that learning rates decrease as more units are produced in some cases. These diminishing learning rates cause traditional learning curves to underestimate required resources, potentially resulting in cost overruns. A diminishing learning rate model, namely Boone’s learning curve, was recently developed to model this phenomenon. This research confirms that Boone’s learning curve systematically reduced error in modeling observed learning curves using production data from 169 Department of Defense end-items. However, high amounts of variability in …