The Production Rate Impact Model: IRATE

The IRATE model is an analytic procedure for measuring the direct impact of production rate upon a cost improvement curve (CIC) slope. The IRATE process involves a steepening of the assembly’s CIC slope, which is experienced in parallel with or after the installation of all non-recurring items, (e.g., new setups, tool investments, facilities, process changes), specifically added for the higher production rate program. The IRATE effect abstracts the progressive characteristic of recurring events, bringing together the horizontal and vertical “learning” synergisms of production lines.