Learning curve and rate adjustment models: Comparative prediction accuracy under varying conditions
Moses, O. Douglas
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Learning curve models have gained widespread acceptance as a technique for analyzing and forecasting the cost of items produced from a repetitive process. Considerable research has investigated augmenting the traditional learning curve model with the addition of a production rate variable, creating a rate adjustment model. This study compares the predictive accuracy of the learning curve and rate adjustment models. A simulation methodology is used to vary conditions along seven dimensions. Forecast errors are analyzed and compared under the various simulated conditions using ANOVA. Overall results indicate that neither model dominates; each is more accurate under some conditions. Conditions under which each model tends to result in lower forecast errors are identified and discussed. Keywords: Learning curves, Cost estimates, Cost models, Cost analysis, Production rate, Predictions, Forecasting. (RWJ)
NPS Report NumberNPS-AS-9 1-001
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