Michael A. Lapre

Creating and Transferring Knowledge for Productivity Improvement in Factories

Can a firm accelerate its learning curve if knowledge about the production function is incomplete? This article identifies a production line specifically set up to create technological knowledge about its production function through scientific experimentation formal learning as opposed to learning by doing. The organizational structure of this line was very successful in creating technological knowledge. Formal learning resulted in huge productivity improvements. Replication of this organizational structure on three production lines in other plants within the same firm fell short of expectations. Formal learning did not result in similar productivity improvements. Our research suggests two factors that may facilitate creation and transfer of technological knowledge: management buy-in and knowledge diversity to solve interdepartmental problems.

Accelerated Learning by Experimentation

In most technologies and most industries, experiments play a central role in organizational learning as a source of knowledge and as a check before changes are implemented. There are four primary types of experiments: controlled, natural, ad-hoc, and evolutionary operation. This paper discusses factors that affect learning by experimentation and how they influence learning rates. In some cases, new ways of experimenting can create an order of magnitude improvement in the rate of learning. On the other hand, some situations are inherently hard to run experiments on, and therefore learning remains slow until basic obstacles are solved. Examples of experimentation are discussed in four domains: product development, manufacturing, consumer marketing, and medical trials.

Inside the Learning Curve: Opening the Black Box of the Learning Curve

The traditional learning curve asserts that organizational performance improves as a function of operating experience. The typical example is unit cost decreasing as a function of cumulative production volume. As an organization produces more it somehow “learns” to reduce unit cost. The disappointing managerial implication is that the only way to accelerate improvement in organizational performance is to produce more. This may not be feasible or desirable. I review the literature that extends the traditional learning curve in two ways. First, experience is not the only source for learning. Organizations can engage in deliberate learning activities such as quality improvement projects. Furthermore, not all experiences are equally effective at enhancing organizational performance. Second, the learning curve is not just some black box. There is a process inside the learning curve. Experience and deliberate activities can foster learning. Learning can yield better organizational knowledge. Better organizational knowledge can persuade organizational members to modify behavior. Changed behavior, in turn, can improve organizational performance. None of these steps are trivial. Scholars have merely scratched the surface in terms of studying these steps. No single study has incorporated all steps. I review the literature and identify opportunities for future research that should provide insights for organizations to better manage learning curves.

Teaching Health-Care Operations in the MBA Program at Vanderbilt University Owen Graduate School of Management

This paper describes a case-based MBA elective “Health Care Operations” (HCO) developed by an instructor without prior education, consulting, or research experience in the health-care field. HCO helps MBA students analyze health-care organizations using both qualitative and quantitative principles of operations management. The course outline covers (1) designing health-care delivery systems, (2) capacity planning and decision making under uncertainty, and (3) process failure, learning, and improvement. The paper identifies challenges faced in the design and delivery of the course as well as lessons learned. I hope that this paper will be useful for other instructors who want to teach health-care operations.