Learning Curve Theory

Apply the Learning Curve Theory

OPS/571

February 20, 2012

Richard Williams

Apply the Learning Curve Theory

Mario opened Mario’s Pizzeria in 1950 in Palm Springs, California the pizzeria was opened in an indoor mall. One thing that made Mario’s pizzeria different from competitors was the well-known taste and fresh ingredients. Mario was interested in allowing his only grandchild an opportunity of temporarily taking the over the responsibility of operating the pizzeria for two months. Mario felt like if his only grandchild could show is success in the business he would hand over the business to him after the two months was over.

There are countless methods to applying the learning curve concepts to the current process that Mario has used for years. “Learning curves are useful both to cost estimators and analysts. The learning curve is based on three fundamental assumptions: the time required to perform a task decreases as the task is repeated, the amount of improvement decreases as more units are produced, and the rate of improvement has sufficient consistency to allow its use as a reduction tool”(Jacobs & Aquilano, 2006). The following paragraphs include a brief summary of ways to capitalize on earnings; one of the biggest areas will be to look at reducing the waiting time at Mario’s pizzeria.

Alternative Process

After reviewing the current workflow and environment my first undertaking is to look at the current table settings to determine if this is suitable for the pizzeria environment. The first thing that I decide to change is the amount of four top tables, now my four top tables are being used at a 97.04 percent at $20.00 a day. My two top tables which increased from zero to four is now being used 87.27 percent at $16.00 a day. I decided to keep both my waiter staff and kitchen staff the same. At first that seemed like an east adjustment as time was an issue, but when the numbers changed I did not see any change in profits. Currently I have a...