Cost modelling based on experience: do we have it backwards?. (1st January 2011)

• Record Type: Journal Article
• Authors: Hanson, John D.
• Is Part Of: International journal of procurement management. Volume 4:Number 5(2011)
• Page Start: 549
• Page End: 565
• Publication Date: 2011-01-01
• Subjects: cost modelling -- cost reduction -- organisational learning -- case study -- supplier evaluation; Industrial procurement -- Management -- Periodicals; Industrial procurement -- Electronic information resources -- Periodicals; Business logistics -- Periodicals; 658.7205
• DOI: 10.1504/IJPM.2011.042172
• Languages: English
• ISSNs: 1753-8432

Abstract

Case study research is conducted using Kaizen events to study learning mechanisms in process improvement initiatives. It is found that cumulative production experience is not the significant factor that has been traditionally supposed. A forward-looking model of learning is proposed that replicates empirical results at least as well as a classical learning curve. This model has implications for managing buyer-seller relationships on a forward-looking basis.