...Learning Curve Theory OPS 571 August 22, 2012 Learning Curve Theory In the required simulation, the owner/operator of Mario’s Pizza is considering transferring operations of the pizzeria to a family member. Mario has elected to supervise the business decisions made by the family member with regard to reductions in customer wait times and lost sales. Three scenarios are simulated: adjusting the number of tables allocated for two and four guests as well as adjustments to wait and kitchen staff, choosing to implement new technologies, and a choice between adding seating space or a takeout option. If Mario sees that the decisions made by the family member are sound, then he will hand over operations of the pizzeria at the end of two months. Because measurement in service industries is subjective (Pati & Reis, 2007), progress will be measured in lost sales, lost customers, and daily operating costs. Guests typically enter the restaurant in parties of two to four. The decision was made to set the number of tables designated for parties of two to 8, leaving the remaining 10 tables for parties of four. No change was made to the numbers of wait or kitchen staff. Increasing these numbers would have increased daily operating costs, making any possible losses more difficult to bear financially. Decreasing these numbers may have placed extra burden on the staff members, making efficiency difficult. While some sales were lost (see fig. 1), the losses were kept at a minimum...
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...History The Kendall Group is a keyless entry fob company who has partnered with global companies to manufacture all of the components necessary to create the keyless fob. The Pakistan, China, and Taiwan suppliers have been maintaining volume and product deadlines, while the Vietnam company who is responsible for the control chip, has had an on time delivery rate of 82%. The keyless entry fobs cannot began the final stages of production until all components have been received by the Kendall Group. Due to the amount of units ordered from each supplier, Kendall Group has been able to meet client demands. However, the Vietnam suppliers threaten to cause a bottleneck should demand increase, as the control chips’ untimely receipt would temporarily halt operations. Systems Controls The Kendall Group applied the efficiency metric to initially determine if the global suppliers had the resources to manufacture and ship the parts in the allotted time. The Vietnam business partner has proven that the efficiency metric failed to consider other factors that could create delays in shipping the control chips. The Kendall Group plans to meet with the Vietnam supplier to understand the factors that contribute to the delay in shipping the product. The company is considering transferring two operations managers to improve the Vietnam suppliers on time shipping statistics. Cultural Business Factors Cultural differences and standards will have a significant influence in international...
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...APPLYING THE LEARNING CURVE THEORY Applying the Learning Curve Theory The development of any organization is hinged on components such as technology, structure, documents, procedures and human resources. Viable competitive advantage on any given organization is acquired through organizational learning processes. The processes of attending to clients and preparing orders in Mario¶s pizzeria may be evaluated under the learning curve theory. Mario has the task of improving the service to its clients by reducing the waiting time and queue length while maximizing the benefits of the operation. As a conventional individual, Mario wants to improve the operation while maintaining the business. In the food service industry, the crux of the business is portrayed by customer service, the waiters, the cooks and chefs, the kitchen workers, and the quality food itself. During the first phase of the process modification, only the arrangement of tables was changed, ending with 10 tables for four and 8 tables for two. This modification reduced the waiting time from 9 minutes to 5.87 minutes and the average queue length to 2.54. Profits increased and the loss of sales was reduced. The deployment of the workers was not too high, leaving space for attending more clients. Mario was pleased with this modification since no workers lost their jobs and experience was was further conserved inhouse. After the new arrangement of tables, the equipment and technology used during the attending of clients...
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...Running head: APPLY THE LEARNING CURVE THEORY Apply the Learning Curve Theory Thomas E. Sawyer University of Phoenix CONCEPT OF THE LEARNING CURVE A popular focus of many small businesses, and those looking to start a business, is the bottom line: profitability. The road to profitability involves finding the correct business formula, for the specific business, that will minimize losses and increase sales. The Pizza Store layout simulation, the focus of this paper, requires the user to take a management position and make decisions that impact profitability. As to be expected, making business decisions like this involve a learning curve consisting of repeatedly analyzing decisions. This paper will cover the learning curve theory, the decisions made during the Pizza Store layout simulation, and the best conclusion reached as a result of those decisions. LEARNING CURVE THEORY According to Operations Management for Competitive Advantage, a learning curve is a line displaying the relationship between unit production time and the cumulative number of units produced. Learning curves can be applied to individuals or organizations, but in the Pizza Store layout simulation the learning curve applies to an organization. Additionally, learning curve theory is based on three assumptions: 1. The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken. 2. The unit time will decrease...
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...Apply the Learning Curve Theory Jeanette Brooks 07/016/2012 When it comes to business every company must identify and find out what are the important ways to improve its operations while reducing cost and increasing revenue. In the case of Mario Pizzeria, we had to determine various ways to improve on his waiting time for his customer. Currently standing Mario Pizzeria queues having customer wait for at least seven to nine minutes during peak hours. At this point customers are frustrated which causes them to the leave without being served. This affects the overall profit of Mario’s Pizzeria. As the manager, we need to look at several aspects to make sure we are operating effectively. First, we have to look at the population during peak and non-peak time. This will allow us to properly adjust and have the correct number of staff members working to support the flow of customers. The second aspect we have to address is the waiting time for the customers. Most customers may be shopping or coming in for their work break. Reducing their wait time to eat allows them to continue with their daily routine. Next is how we staff and service the customers, we have to make sure we are properly staffed and can service any rush that comes along. Finally, we have to understand how to serve our customers in terms of priority. Depending upon the group, this will determine who gets serviced first. Applying the learning curve concept will allow us to focus on improving our performance process...
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...This file OPS 571 Individual Assignment Apply the Learning Curve Theory Part 2 2 includes overview of the following parts: 1. Process Performance Data Initial Report (1st Day) Scenario 0 Process of Waiting Line for Customer Capacity Report Costs Formula for Usage, 2. New Simulation Process Scenario 1 (Week 1-2) Changed process has following Configuration: 3. Impact of new configuration on business of Pizza Scenario 2 (Week 3-4) Capacity Report 4. Process of Waiting Line for Customer Scenario 3 (Week 5-6) Capacity Report 5. Scenario 4 (Week 7-8) Process of Waiting Line for Customer Capacity Report Costs 6. Week 7-8 Capacity Report Customers Costs Business - General Business 1. Individual Assignment: Apply the Learning Curve Theory · Review the Pizza Store Layout simulation. During your review, examine the process in this simulation. Play it at least twice, and pay attention to the learning curve. Do not worry about the statistical control in this assignment. · Submit five to ten points of process performance data for the performance metrics identified in the Pizza Store Layout simulation. · Write a paper of at least 700 words in which you consider an alternative to the process. How might you apply the learning curve concepts to test the alternative against the existing...
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...Course name: Managing Operations Assignment 3 A BRIEF DISCUSSION ON LEARNING CURVE Definition: In General, Learning Curve Theory or Experience Curve Theory is defined as the following: A learning curve is a graphical representation of the changing rate of learning (in the average person) for a given activity or tool. Typically, the increase in retention of information is sharpest after the initial attempts, and then gradually evens out, meaning that less and less new information is retained after each repetition. The learning curve can also represent at a glance the initial difficulty of learning something and, to an extent, how much there is to learn after initial familiarity. For example, the Windows program Notepad is extremely simple to learn, but offers little after this. On the other extreme is the UNIX terminal editor vi, which is difficult to learn, but offers a wide array of features to master after the user has figured out how to work it. It is possible for something to be easy to learn, but difficult to master or hard to learn with little beyond this. The concept of the Learning Curve basically states that there is less and less learning as more repetitive steps are taken. The Boston Consulting Group conducted some empirical studies and below are the conclusions from that study: 1. The time required to perform a task decreases as the task is repeated, 2. The amount of improvement decreases as more units are produced, and 3. The rate of...
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...Running head: APPLY THE LEARNING CURVE THEORY 1 Apply the Learning Curve Theory Gary Adams OPS 571 May 22, 2013 Richard Burgoon APPLY THE LEARNING CURVE THEORY 2 Apply the Learning Curve Theory The Learning Curve Theory is used for pricing strategies, investments, and operating costs. The Pizzeria faces enormous challenges in decreasing wait times, increasing production, and the business expanding. The goal is to track the performance of the pizzeria and use the concepts to improve all processes of the pizzeria. The company uses performance metrics to check areas that show improvement. Understanding how processes work is essential to ensuring the competitiveness of a company. A process that does not match the needs of the firm will punish the firm every minute that the firm operates. Take, for example, two fast-food restaurants. If one restaurant can deliver a quarter-pound hamburger to the customer for $.50 in direct costs and a second restaurant cost $.75, no matter what the second restaurant does, it will lose $.25 in profit for every hamburger it sells compared to the first restaurant. Many factors need to be considered when one sets up the process to make those hamburgers. These factors include the cost of the raw materials, the costs associated with how the hamburger is prepared, and the cost of taking the order and delivering it to...
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...Apply the Learning Curve Theory OPS 571 University of Phoenix Apply the Learning Curve Theory In business and academics students, managers, and employees learn tasks at different rates. One employee may grasp a task within the first attempt whereas others may take several tries to achieve efficient production. The average time it takes for a group of people to adjust is the learning curve. This paper will review the learning curve theory as it applies to a simulated pizza store layout. The learning curve Learning curves can be applied to individuals. Learning improves with repetition generating skill or efficiency. Much of academia is based on this “practice makes perfect” (Chase, Jacobs, Aquilano, 2006) idea. The learning curve in manufacturing and service compares the result of the expected product to the length of time to produce it. As more employees learn a new process, time to produce increases. As employees become efficient, time decreases. At the beginning of the curve, fewer products are produced; at the end of the curve more products are produced in less time than the previous process. Organizational learning comes from combined individual learning, also administration, equipment, and product design changes. A new kitchen staff has high service times as the cooks become familiar with the menu recipes and cook times. If the kitchen adds a new microwave, service times increase again, as cooks learn time and temperatures for the microwave...
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...Applying the Learning Curve theory Beliard, Jean University of Phoenix OPS 571 – Operations Management September 20, 2010 Dr. Alavaro Carreras, Jr. Mario’s Pizza Simulation The learning curve is a very useful tool organization can use to ensure a more efficient and profitable business. This tool allows organizations to manage their entire staff from top to bottom. The simulation help organizations make more educated decisions and ensure that they are doing the best for the company. Furthermore, the simulation help many organizations have a better understanding of how their processes need to be accomplish. According to Nicholas J. Aquilano, Richard B the decisions need to be made and processes changed to enable Mario to reduce its wait time allowing more customers to be served within a reasonable amount of time while keeping balance between the demand for service and the capacity of the system to provide the service. The process must be defined and appropriate metrics identified in which to measure the process efficiently. Mario’s Pizza Scenario In Mario’s Pizza Simulation, Mario is a man who opened the pizza parlor in Palm-Springs, California in 1950 with his wife. This pizza parlor is in indoor mall where there are a group of potential customers. Mario is becoming concerned with the increased amount of time that his customers have to wait. The customers are dissatisfied with the services and there are numerous cases of customers leaving without making...
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...Apply the Learning Curve Theory OPS/571 University of Phoenix March 10, 2010 Week Two Learning curve is a line displaying the relationship between unit production time and the cumulative number of units produced. Learning (or experience) curve theory has a wide range of application in the business world. Learning curves can be applied to individuals or organizations. (Chase, 2006). Learning curve theory is based on three assumptions: (1) The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken (2) The unit time will decrease at a decreasing rate (3) The reduction in time will follow predictable pattern. (Chase, 2006). In reviewing the simulation for this week’s assignment, this particular Pizza parlor is having difficulties in serving the customers in means of long waiting time and lines. Long wait times may cause customers to eventually leave or stay and not to return based on the learning curve as outlined above. This has been identified as poor customer service and the service is being reviewed to better assist the customers. The simulation showed four tables having the highest utilization at 99.5% and 38 groups of four balked or left the restaurants without being asked. To tackle this problem, the distribution of tables were changed and the distribution of tables and established a priority rule. This decision appears to be a good one. After the decision was made, the utilization of tables for four...
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...Introduction The basic premise behind the learning curve concept is the improvement in performance of process due to repetitive nature of tasks operated by individual or organization again and again. This theory is based on three fundamental assumptions which is as follows: 1. The time required for completion of task decreases as it is repeated number of times 2. The percentage of improvement decreases with corresponding increase in volume of units, 3. The rate of improvement is predictable over the certain time There has been increment in the process of performance in such a way that units of productions gets doubled in reduced span of time after the certain period of implementation. This is also defined as the rate of learning where constant percentage of reduction in time is taken care of. The slope of the curve is calculated by the difference between the rate of learning and numerical value of one hundred. If the timing between the doubling of units are decreased by 10 percent, then it will be connotated as 90 percent learning curve. Learning Curve Concepts to test the alternative to the process The table for process performance data for the metric identified in the Pizza Store Layout Simulation is as follows: Table 1 S. No. Weeks No of Customers for Group of 2 No of Customers for Group of 4 Avg. Wait Time(Min) Avg. Queue Length Profit ($) 1 0 70 106 11.67 3.21 1,054 2 1-2 71 105 6.46 2.56 1,120 3 3-4 71 105 5.53 2.67 1,380 4 5-6 100 140 4.93 2.88...
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...Simulation Introduction “Applying the Learning Curve Theory” simulation regards around Mario’s Pizzeria, a pizza parlor based in Palm Springs, California. Mario’s pizzeria is a successful business in Palm Springs that is known for its originality and freshness in taste. Mario, the owner of Mario’s Pizzeria, examines his grandson’s capability of managing Mario’s Pizzeria. He will test his grandson’s management abilities and will declare his grandson the heir of Mario’s pizzeria if his grandson is successful. In this simulation, one will run the restaurant as if Mario’s grandson and will use his/her knowledge from the previous business classes. The student’s goals are profit maximization and minimization of wait time for customers. Optimization of both factors is the key to success in this situation. Learning Curve Theory First step is identify whether the current table set up is appropriate for this business situation. I set a cost of 20 dollars per day for ten tables of four people. 95.71% of the four table sets are exploited at $20; 87.27% of the two table sets are exploited at $16. The operating staff of four people is operated at 86.94% with a mean, standard deviation, and total cost of $8.00, $2.12, and 200 dollars per day. The operating kitchen staff is employed at 65.14 percent efficiency with two people and a mean, standard deviation, and total cost of $3.00, $1.00, and $160.00. Altering the values of table sets and kitchen/waiter did not increase the profits as decreasing...
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...Stategic Management Boston Consulting Group Toyota World Corporation Alexander Oktaviandri | 008201100007 Daisy Wijaya Kusuma | 008201100025 Ervy Alvionita | 008201100059 Kenny Samuel | 008201100056 Ricky Dhamaputho | 008201100048 Shao Xian | 008201100119 Accounting 3 LITERATURE REVIEW Boston Consulting Group has three main theories regarding strategic management. They are: * The BCG matrix method * Boston consultant group’s advantage matrix * Experience Curve Effects The BCG matrix method The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product’s market grows the better it is for a company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. STARS(high growth, high market) - Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. -Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. 2. CASH COWS(low growth, high market share) - Profit and cash...
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...The Learning Curve Theory In order to apply the Learning Curve Theory to any specific situation, one must comprehend the concept of a learning curve. According to our text, “ a learning curve is a line displaying the relationship between unit production time and the cumulative number of units produced” (Chase, Jacobs, & Aquilano, 2006). Learning curves can be applied and be beneficial to individuals as well as organizations. To be able to effectively utilize the Learning Curve Theory, three essential assumptions must be recognized: 1.) The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken. 2.) The unit time will decrease at a decreasing rate. 3.) The reduction in time will follow a predictable pattern. In order to be able to meet and/or fall below the upper control limits; factors from the process performance data (metrics) are adjusted. • The number of tables for 2 was adjusted • The wait staff was adjusted • The kitchen staff was adjusted • Utilization was changed • Average wait time was lowered By following my recommendations to the above metrics, Mario will successfully meet his goals. The business will increase its profits, (even though more will have to be paid for staff and utilization) as well as having happy customers who will be more inclined to return to the quality service rendered (shorter wait time). This initial process data is valid and can prove to benefit Mario’s pizza business. The...
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