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Home > QFINANCE Dictionary > Definition of learning curve

Definition of

learning curve

  • 1. General Management

    rate at which new information must be acquired a graphic representation of the acquisition of knowledge or experience over time. A steep learning curve reflects a substantial amount of learning in a short time, and a shallow curve reflects a slower learning process. The curve eventually levels out to a plateau, during which time the knowledge gained is being consolidated.

  • 2. Operations & Production

    proportional reduction in effort when production doubles the proportional decrease in effort when production is doubled. The learning curve has its origin in productivity research in the airplane industry of the 1930s, when T. P. Wright discovered that in assembling an aircraft, the time and effort decreased by 20% each time the cumulative number of planes produced doubled.

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Definitions of ’learning curve’ and meaning of ’learning curve’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’learning curve’ and other financial terms with our online QFINANCE Financial Dictionary.

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