1998
DOI: 10.1287/mnsc.44.7.910
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Toward a Theory of Continuous Improvement and the Learning Curve

Abstract: Continuous improvement (CI) unceasingly strives to improve the performance of production and service firms. The learning curve (LC) provides1988 Department of Industrial Engineering and a means to observe and track that improvement. At present, however, the concepts of CI are abstract and imprecise and the rationale underpinning the LC is obscure. For managers to improve processes effectively, they need a more scientific theory of CI and the LC. This paper begins to develop such a theory. Our approach is based… Show more

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Cited by 206 publications
(137 citation statements)
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References 15 publications
(13 reference statements)
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“…The first stream primarily focuses on finding the optimal control policies to improve the production process while minimizing operating cost, e.g., Porteus (1986), Fine andPorteus (1989), Marcellus andDada (1991), Dada and Marcellus (1994), Chand et al (1996), where process improvement is typically measured in effective capacity (Spence and Porteus 1987), amount of defects (Marcellus and Dada 1991), or general cost of failures (Chand et al 1996). The second stream of the literature focuses on the interaction of process improvement with the firm's knowledge creation and learning curve, e.g., Fine (1986), Zangwill and Kantor (1998), Carrillo and Gaimon (2000), Terwiesch and Bohn (2001), Carrillo and Gaimon (2004). This stream establishes theoretical foundations for the evaluation of process improvement benefits.…”
Section: Literaturementioning
confidence: 99%
“…The first stream primarily focuses on finding the optimal control policies to improve the production process while minimizing operating cost, e.g., Porteus (1986), Fine andPorteus (1989), Marcellus andDada (1991), Dada and Marcellus (1994), Chand et al (1996), where process improvement is typically measured in effective capacity (Spence and Porteus 1987), amount of defects (Marcellus and Dada 1991), or general cost of failures (Chand et al 1996). The second stream of the literature focuses on the interaction of process improvement with the firm's knowledge creation and learning curve, e.g., Fine (1986), Zangwill and Kantor (1998), Carrillo and Gaimon (2000), Terwiesch and Bohn (2001), Carrillo and Gaimon (2004). This stream establishes theoretical foundations for the evaluation of process improvement benefits.…”
Section: Literaturementioning
confidence: 99%
“…Although it might be expected that the graph would have linear character (which would be logical and theoretically acceptable if we do not consider human behaviour factor), presented graph is slightly non-linear and can be better approximated with quadratic curve than the straight line. This can be explained by the 'learning curve' effect [31], as well as by the Hawthorne effect [32] (people tend to work faster/better when they are aware of the fact that somebody is measuring and assessing their productivity), although the latter one is questionable and still a subject of discussions in scientific circles [33]. …”
Section: Coefficient Of Distributionmentioning
confidence: 99%
“…Indeed research into developing better learning models continues (Zangwill and Kantor (1998); Zangwill and Kantor (2000)). The transfer, and use, of learning curve technology from manufacturing to other arenas is also regarded as important, for example into food service operations (Reis (1991)), in pizza production (Darr et al (1995)), and musical instrument and apparel manufacture (Baloff (1971)).…”
Section: The Learning Curvementioning
confidence: 99%