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 a purchase. In order for Mario to keep all of his customers happy and to continue to bring in new customers, there must be some major changes made. The waiting time must be reduced, down from nine minutes, when a customer has to wait longer than eight minutes he or she become impatient and concerned. According to the Pizza Store Layout simulation, mario’s Pizza Parlor needs to ensure that they have a process implemented that will maintain a balance between the demand for service and the capacity of the system to provide the proper service to the customers. With these two corrections to the business, mario can be closer to a very profitable business. The learning curve Concepts The learning curve process is a very useful for a small business like Mario’s. In the existing process at Mario’s Pizza Parlor, the learning curve concepts can be applied in many ways. The first concepts can use to observe individuals who perform tasks repeatedly. According to Michael Wright this phenomenon yield to three aspects on which this theory can be useful. The amount of time required to complete a task reduces as the task is repeated. In addition, the improvement decreases as more units are produced, therefore the rate of improvement has to be sufficient, consistent to allow its use (Human Behavior Central, 2004, “P.” 32).This concept was found on the Federal Aviation Administration website was very helpful in determining the correct process to choose in the pizza simulation. It shows ways to make better use of the different department by having more staff and use different departments to complete the task. In analyzing the pizza simulation, to satisfy Mario and his customers is to stick with this learning curve idea. The idea is to have more staff on daily where his customer service can be more efficient. In this simulation I compiled some process performance data, which is as follows: I had to choose whether or not to change the current serving staff, cooks, and the amount of two person and four person tables to have to provide the optimal service without cutting into the profits.

|Week |Tables for 2 |Tables for 4 |Work Staff |Total Cost/Day |Profit |
| |Utilization % |Utilization % | | $ | $ |
|3-4 |84.91 |97.11 |2 Cooks |2,218 |1,418 |
| | | |4 Servers | | |
|5-6 |80.19 |89.63 |2 Cooks |2,231 |1,685 |
| | | |4 Servers | | |
|7-8 |77.57 |83.09 |3 Cooks |3,009 |2,061 |
| | | |5 Servers | | |

This table shows that the correct decisions have been made because the profit went up each period, which means that the customers must be satisfied and are willing to spend money. The correct number of employees and the correct number of tables are easier and more profitable for a work day. The reason for this table is to show what needs to be done to make an organization be profitable. The amount of staff, utilization of equipments all that needs to put into accounts to be successful.
Conclusion
The current process at Mario’s Pizza Parlor isn’t a bad process by any means. The process should be updated to serve better their customers and to ensure higher profits. The main goal for any organization is to make as much money as possible without sacrificing unusual time. I have discussed the changes that I would make to Mario’s Pizza Parlor if I were Mario only brother. He had to change the way he operates the business. I have shown that I could make this business thrive and grow as well as keeping all the customers satisfied, especially those who have been around for years.
Reference

Aeron, Lindsay (1998, June). The Learning Curve. Retrieved on February 18, 2010, from http/www.faa.gov.

Charles, Willie (2000, October). Business in America. Retrieved September 18, 2010

From Business Journal: The Effects of Business Today:
Steven P. Robbins. (2009, November 26). . Retrieved September 16, 2010 From University of Phoenix Library:
Scott, Rosenberg (1996, January) Business Wealth in Society. Retrieved September15, 2010 From www.wikiwealth.com