Learning Curve Theory

Learning Curve Theory

Sonya Brantley

OPS/571

June 21, 2011

Belinda G. Kennon, MBA

Learning Curve Theory

Organization development is important for the growth and development of a business. Organizational development attempts to improve profit, productivity, morale and quality of work life (The Organization Development Network, 2010). The factors that affect the development of an organization; they are technological development, structural growth, procedural processes, documentation, and human resource development. An aspect of organization development is an organizational diagnosis. “Organizational diagnosis is

understanding the organization for the purpose of changing and improving it” (Janicijevic, 2010, p. 86). Organizational diagnosis identifies the problems within an organization to implement modification. Mario, a prominent pizza parlor owner, is faced with the issue of reducing the waiting time of customers and the queue length while maintaining and maximizing the organizations profits.

A learning curve is a critical issue in a business. “A learning curve is a line displaying the relationship between unit production time and the cumulative number of units produced” (Chase, 2006, p. 135). A learning curve is essential to estimate production time, assembly, and production cost. “A learning curve is a method that has great potential to assist in decisions regarding design and selection of process technology, capacity planning and investment decisions” (Linton, 2004, p. 518). A learning curve makes it possible to implement changes to increase profit. The Pizza Store scenario demonstrates a necessity of organizational learning. The procedures of customer attendance and order preparation in the pizzeria may be evaluated using the learning curve theory.

Mario’s grandson must demonstrate the knowledge of business that will prove essential in increasing the profit of the business as well as decreasing the customer wait time...