APPLYING LEARNING CURVE AT AME

ABSTRACT
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.

Pedagogical Objectives

To understand the basics and significance of learning curve

To examine and understand the application and effects of learning curve using different approaches

To discuss and describe the strategic implication of learning curve

Case Positioning and Setting

This caselet can be used for MBA, Executive MBA or Executive Development Programs in the Operations
Management course Quantitative Module D: Learning Curves To understand learning curve and analyze
how does it benefit in improvement.

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