Title: Cost modelling based on experience: do we have it backwards?

Authors: John D. Hanson

Addresses: Supply Chain Management Institute, School of Business Administration, University of San Diego, 5998 Alcala Park, San Diego, CA 92110-2492, USA

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.

Keywords: cost modelling; cost reduction; organisational learning; case study; supplier evaluation; kaizen; continuous improvement; buyer-seller relationships; forward-looking; procurement management; corporate knowledge; process improvement; cumulative production experience.

DOI: 10.1504/IJPM.2011.042172

International Journal of Procurement Management, 2011 Vol.4 No.5, pp.549 - 565

Published online: 31 Jan 2015 *

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