Learning Curve Theory

Learning Curve Theory

The line displaying the connection between unit production time and the cumulative number of units is known as the learning curve. Estimating a product design and production times for a business requires an almost scientific approach and the learning curve theory provides it. The learning curve theory is also applied in corporate strategic planning, the theory aids in the decision on pricing, investments, and operational cost based on experience curves (Chase, Jacobs and Aquilano, 2006).

The 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 performed.

2.         The unit time will decrease at a decreasing rate.

3.         The reduction in time will follow a predictable pattern.

Each one of these  assumptions have been initiated in certain industries such as the automobile industry, where learning curves have been implemented as the people performing the manufacturing task achieves skills and effectiveness as they execute the same task over and over again (Chase, Jacobs and Aquilano. 2006).

The Mario’s Pizza simulation presents serious problems. The restaurant was letting go potential sales that amount to $1,140, waiting time is too long, balking is excessive, there is lack of proper table distribution, and the process may need to be modified to maximize the business’ benefits. Additional organizational problems involve changes in equipment from the old ovens to the new Plax oven and replacing the old manual service system to a menu point system. The effectiveness of the solutions provided in the simulation were evaluated by primarily measuring a trend line of the waiting time at the restaurant. However, additional factors were measured such as profit and resource utilization.

Process Modification Simulation

The current process average duration from entering to exiting the restaurant takes approximately...