Applying the Learning Curve Theory

Applying the Learning Curve Theory

Learning curves play an important role in the marketplace today. The principal behind learning curves is the more times an individual or organization repeats a process; there will be an increase in experience and efficiency. Individuals learn when they repeat a task and their skills improve. Organizational learning results from “repeated processes as well as from changes in administration, equipment, and product design” (Chase, Jacobs, & Aquilano, p. 135, 2006). 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 undertaken (2) The unit time will decrease at a decreasing rate (3) The reduction in time will follow predictable pattern. (Chase, Jacobs, & Aquilano, p. 134, 2006). This paper will provide a discussion about applying the learning curve theory concepts by testing alternatives to a process using the Pizza Store Layout simulation.

Application of the Learning Curve Theory

The Pizza Store Layout simulation provides an opportunity to test alternative operating parameters by simulating the decisions to be made as Mario’s grandchild. If I can gain his confidence, he would hand over the running of the restaurant to me at the end of a two months trial period. Throughout the simulation, I have to make decisions based on the average wait time, number of customers, the service utilization and becoming more profitable.

Scenario One

In this scenario, I was given the variables on distribution of tables and amount of wait staff and kitchen staff. In my solution, changing to a table configuration of 10 Tables of 4 and 8 Tables of 2, and a Wait Staff of 4, and a Kitchen Staff of 2, that produces an avg. wait time of 4.72 minutes and avg. queue time of 2.42 minutes. Profit was $1,519 and losses of $495. Mario was very happy with this performance. He is gaining confidence in my decision-making skills.

Scenario Two...