Applying Learning Curve at AME
Prerequisite Conceptual Understanding
Jay Heizer, et al., “Quantitative Module D: Learning Curves”, Operations Management, 9th Edition, Pearson Education, 2008
Synopsis
This caselet is meant for learners pursuing a course in Operations Management. The caselet helps to understand the Learning Curve concept through the dilemma faced by Arup Mukherjee (Mukherjee), the owner of Arup Mukherjee Enterprises (P) Ltd., (AME). The company offered repair and maintenance services to varied types of cars. As a growing company AME received service contracts from individual customers and big service centres of various automobile companies. On January 20th 2015, AME had received an order enquiry from a reputed service centre for the service of diesel locomotive cylinder heads. Mukherjee had to prepare a service contract quote for the same. After recollecting the learning curve concept that he had learned during his graduation he estimated the time required to service the cylinder heads to prepare the quote. However, while preparing the quote, he found a document mentioning the time required to service five cylinder heads. Mukherjee was wondering whether this will change the learning curve and affect the prepared quote.
Expected Learning Outcomes
- • Basics and significance of learning curve
- • Applying the learning curve using different approaches and its effects
- • Understand the strategic implication of learning curve
Preconceptual Understanding and Before the Classroom Discussion
The participants were asked to read the following chapter given as mandatory reading at the end of the caselet to participate effectively and to enrich the learning outcomes:
Jay Heizer, et al., “Quantitative Module D: Learning Curves”, Operations Management, 9th Edition, Pearson Education, 2008
Case Positioning and Setting
This caselet can be used in MBA/Executive MBA program for Operations Management course to illustrate the concept of ‘Learning Curve’ and exemplify its strategic implications.
Assignment Questions
- I. Define learning curve.
- II. What are the strategic applications of learning curve?
- III. How did learning curve concept help Mukherjee in preparing the service contract quote?
- IV. .....................
Suggested Orchestration
The classroom discussion and analysis for this caselet could be summarized and facilitated under two broad sections [Exhibit (TN)-I]...............