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Nonsense, manufacturing learning curves[1] were identified by Theodore Wright in World War II airplane manufacturing, and apply to many types of production: >
by paulsutter 3y ago
Nonsense, manufacturing learning curves[1] were identified by Theodore Wright in World War II airplane manufacturing, and apply to many types of production:
> Wright found that every time total aircraft production doubled, the required labor time for a new aircraft fell by 20%. This has become known as "Wright's law". Studies in other industries have yielded different percentage values (ranging from only a couple of percent up to 30%), but in most cases, the value in each industry was a constant percentage and did not vary at different scales of operation. The learning curve model posits that for each doubling of the total quantity of items produced, costs decrease by a fixed proportion. Generally, the production of any good or service shows the learning curve or experience curve effect. Each time cumulative volume doubles, value-added costs (including administration, marketing, distribution, and manufacturing) fall by a constant percentage.
[1] https://en.wikipedia.org/wiki/Experience_curve_effects https://en.wikipedia.org/wiki/Experience_curve_effects
- deleted 3y ago[deleted]
- scraptor 3y agoAs I understand it the core thesis of this article is that any object which can be manufactured using semiconductor processes gets to share the experience curve of semiconductor manufacturing, which not only has has a unusually high cost reduction per doubling compared to other industries but is also already very cheap to begin with due to the large volume already produced.