Pizza Store Layout Simulation Alternative Process

Pizza Store Layout Simulation Alternative Process

In 1950, Mario’s Pizzeria opened in Palm Springs, California in an indoor mall, quickly becoming recognized for authentic taste and use of fresh ingredients according to the Pizza Store Layout Simulation (Chase, Jacobs, Aquilano, 2006). Mario, the owner has entrusted his only grandchild, a business school graduate, the responsibility of running the business for the next two months. At the conclusion of the two month period, Mario will relinquish total responsibility of the business to the grandchild subject to the grandchild’s ability to can gain Mario’s confidence. To foster such confidence, warranted is the establishment and implementation of an alternative process to current business practices through the application of learning curve concepts that will increase profitability, customer delight, and a reduction in the average wait time for customers during peak hours of operation.

Learning curves are lines promoting the relationship among unit production time and the aggregate number of units produced (Chase, Jacobs, Aquilano, 2006). Learning curves play a fundamental part in the development of corporate strategy, such as decision-making relating to pricing, capital investment, and operating costs centered on experienced curves. Simply, the learning curves theory assumes that the time necessary to carry out a task diminishes by repeating tasks many times; the amount of improvement diminishes by producing additional units; and the rate of improvement has adequate consistency to permit its use as a reduction tool. When plotting a performance metric, the aggregate yield of the learning curve theory reveals that the

correlation will produce a straight line on a log-log scaled graph (Lindsey, Neeley, 2010).

Currently, an analysis of the initial process data Pizza Store daily operation reflects lost revenue especially during peak hours of operation because of customer abandonment resulting from longer than...