The fact that Southwest Airlines only flies one type of plane helps make it one of the most efficient airlines in the industry. This approach maximizes the number of repetitions crews get with the ground and airborne processes involved in flying and turning around the single airframe and reach scale economies in the use of personnel and equipment. As such, SWA has reached competitive advantage through .

Experience-curve Effects

Explanation:

The experience curve is a basic, but effective, model of the common decency principle that makes tasks more productive with repetition: the second time a task performed is done a little more effectively, the third even better, and so forth.

Southwest Airlines, uses the same types of aircraft to achieve that effect.

The impact on the development of airplanes and ships during World War II was observed and quantified in industry. For every doubling of cumulative demand, the manpower needed to complete a unit was seen to fall at a fairly steady rate of 10-15 per cent.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o