Learning Curve Theory

Introduction

The Learning curve is a line displaying the relationship between unit production time and cumulative number of units produced. Learning curves are an important part of many corporate planning decisions such as pricing, capital investment, and operating costs. Learning curves can be applied to individuals or organizations. Individual learning results from when an individual repeats a process and makes improvements in a skill or efficiency from their own experience ("practice makes perfect"). Organizational learning results come from changes in administration, equipment, and product design (Chase, Jacobs & Aquilano, 2005).

Learning curve theory is based upon three assumptions: 1) the amount of time required to complete a given task or unit of product will be less each time the task i undertaken; 2) the unit time will decrease at a decreasing rate; 3) the reduction in time will follow a predictable pattern. The learning curve is applied by repetition. The more an individual or organization performs a skill or procedure, the more the skill level of the individual or organization improves.

This paper will address five points of process data for the performance identified in the simulation. Mario’s Pizzeria is a family-owned business located in an indoor mall in Palm Springs, California. Mario’s opened its doors in 1950 and quickly became famous for its authentic taste and fresh ingredients. As discussed in the simulation, Mario needed to reduce the waiting time in the restaurant and improve customer satisfaction. In doing so, Mario wanted to keep the authenticity that made the business so successful in the past. As discussed in the queue management tab of the simulation, Mario’s realized that customer satisfaction needed to be increased by

The simulation indicated that the owner has been able to identify appropriate metrics early in the project and was used Toyota management to step back and determine a strategy to improve consumer...