manufacturing progress function

The manufacturing progress function, also known as a learning curve, is an economic concept that describes how manufacturing costs decrease as production volume increases. This phenomenon was first observed in the airframe industry, where manufacturers noticed that producing more of a specific airplane model led to predictable reductions in cost per unit.1

This relationship is often visualized on double logarithmic paper, where the logarithm of cost per unit is plotted against the logarithm of total units produced, resulting in a nearly straight line. While improved operator skill contributes to initial cost reductions, the long-term decline is primarily driven by enhancements in product design, machinery, and production planning. This function is valuable for estimating future costs and identifying operations that deviate from expected cost performance.1