Learning Curve Theory

Learning Curve Theory

Process improvements are actions taken to identify and improve operational processes within a business in order to meet company objectives; it can also be used to initiate improvements, reduction of cost, or operational changes. Process improvements are vital to the success of any business. There are many ways processes can be modified; thus the learning curve theory. Learning curves are defined by R. Chase, F. Jacobs, and N. Aquilano, Operations Management for Competitive Advantages, 2006, as "A line displaying the relationship between unit production time and the cumulative number of units produced". Learning curves are often used to evaluate the performance improvement of a business or an employee. After reviewing the pizzeria simulation on the University of Phoenix course website, this paper will list performance metrics and detail the learning curve concepts to test the changes that were made throughout the simulation.

Mario Pizzeria

The simulation is about Mario's Pizzeria located inside a mall. Currently the pizzeria has four waiters, and two kitchen staff, the shop has fourteen tables which can seat up to 4 people. Because of long wait times and insufficient seating the pizzeria has suffered a loss in sales. Initially wait times were between 10 to 12 minutes, higher than the desired nine minutes. Bottleneck occurs when the capacity or resources are limited; seating at the pizzeria is a bottleneck that will be addressed.

In the part one of the simulation, the tables were decreased to 10 for a table of four, eight tables for two people, four wait staffs, and two kitchen staffs remained the same. These changes eliminated customer wait time for a table and the food prep time.

In part two of the simulation, the manual ovens needed to be replaced, which caused an increase in the processing and wait time. The options were to purchase more manual ovens, or automatic Plax ovens, and install the MenuPoint, a system that allows customers to input his or her own order. The decision was made to purchase two Plax ovens and the MenuPoint, this decreased the wait time to 4.36 minutes with a profit of $1665 and loss of $345. This proved to be a good improvement.

In the final part of the simulation, business was increasing, which presented a need for more space. The options were to rent the cream puff space next door or offer take out counter. The decision was made to rent the cream puff space next door; this decreased the wait time to 2.90 minutes, and increases the profits to $2,050 with a loss of $735.

Conclusion

The learning curve principle is applied to evaluate the performance improvements due to changes to processes, or adding new equipment or services. This pizzeria simulation dealt with wait time, queue lengths, number of tables, number of wait