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Capacity & Operations

Learning Curve Lab

In 1936 T.P. Wright measured something strange in aircraft plants: every doubling of cumulative output cut labour per unit by a fixed percentage. That power law still sets capacity plans, make-vs-buy calls and launch prices. Tune the curve, race a rival factory, and price against tomorrow’s cost.

How to use it

Wright’s learning curve

Your factory

Rival factory (dashed)

Price-crossing solver

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Total run hours
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Avg hours/unit
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Cost of unit N

Unit hours vs unit number. In log–log the curve is a straight line with slope log2(rate) - the fingerprint of learning.

The doubling table: same percentage drop from 1→2 as from 128→256. Early units teach cheaply; later lessons cost thousands of units.

Try these experiments

  1. At 80%, check the table: unit 2 = 80 hr, unit 4 = 64, unit 8 = 51.2. Every row is ×0.8 - the whole model in one column.
  2. Set the rival slower at start (140 hr) but at 72%: find the unit where its dashed curve dives under yours. Experience compounds like interest.
  3. Use the solver to price forward: if the market pays $2,000/unit, how many units until you profit? That’s the logic behind aggressive launch pricing.

About this tool

The concept

Wright (1936) noticed aircraft labour fell a fixed percentage with every doubling of cumulative output. The effect drives capacity planning, make-vs-buy and launch pricing.

How it works

Tn = T1·nb with b = log(rate)/log 2. Cumulative time is summed exactly; the solver inverts the power law for the target-cost unit.

Winning strategy

Bid on tomorrow’s cost, not today’s: with a real learning rate, early losses are tuition. But beware - learning stalls when products or crews change.

Background: Experience curve · Wright (1936), Journal of the Aeronautical Sciences