Applying the Learning Curve Theory

Applying the Learning Curve Theory

With the discovery that Vietnam has a delivery rate of 82% for the control chip for the key remote, reexamining the original process assumptions is essential. The flow chart would change by combining the other three global suppliers to work more as a team while combining control chip from Vietnam last within the process. To increase individual and organizational learning (with the use of the learning curve theory), it is important to use evaluation techniques. Two main effects occur on the evaluation process because the Vietnam supplier is in a different country. First, to gain all the information and data to perform the evaluation involves cooperative strategy on how to communicate the information. Second, the time elapses between the start and end of the evaluation; if the data takes a long time to receive, it may become obsolete. Certain Vietnam cultural business factors may influence the planning and decision-making part of the evaluation process. Relationship building is a process of learning about one’s contacts in a host country to build a mutual trust before conducting business transactions.

The manufacturing company is set-up in the United States; building relationships is not as common in American business as other parts of the world. Americans tend to keep from wasting any time getting down to business. This American approach can be detrimental when interacting with the Vietnam suppliers during the evaluation. Another cultural factor that can impact the planning and decision making parts is the manager’s tolerance level to risk. Although Vietnam managers may have a higher risk tolerance than Belgium or Germany managers, American managers have the highest risk tolerance. It is very important that managers from both countries become familiar with “the tactics and procedures the opposite uses to control the process, make progress, and therefore maximize company goals,” (Deresky, 2008, ch. 5, p. 153).

Statistical Process Control

The statistical process control technique to use for evaluation is process control with variable measurements using X and R charts. The statistical process control determines whether the process is producing items within a prescribed range. For the evaluation process, this type of measurement is as an amount of deviation from a set standard known as sampling by variables. The variable sampling for this evaluation process consists