Apply the Learning Curve Theory

Apply the Learning Curve Theory

Anyone that inspires to own their own business must be able to differentiate between making practical decisions and optimizing processes. In the Pizza store layout simulation, Mario has owned a successful business for many years inside a shopping mall. Mario would like to reduce the amount of wait time his customers experience when waiting for a table in his restaurant. On occasions the wait time can be so long that is causing people to walk away. Recently Mario has decided to turn the business over to his grandson for a period of two months as long as his grandson can prove that he has the managerial knowledge to successfully handle the business in Mario’s absence. If Mario is pleased with the way his grandson managed the business during the two month trial period he will permanently hand the business over to his grandson.

One of the first decisions that the grandson decides to do is conduct a performance metric that will identify critical work processes and customer requirements. Mario’s grandson has reviewed the layout of the restaurant in its current layout where there are 14 tables that sit 4 customers and 2 tables that sit 2 customers with a wait staff of 4 and 2 kitchen workers. Mario has decided that in order to reduce the critical wait time of 9 minutes he would change the layout of the restaurant to be able to accommodate 10 tables that sit 4 and 8 tables that sit 2 and remain with the 4 wait staff and 2 kitchen workers.

The decision that Mario’s grandson made about the amount of tables and staff reduced the wait time from 9 minutes to just less than 7 minutes but also increased overall sales, but due to the fact that 2 of the ovens are inoperable and the other 2 being slow in the cooking process customers were still leaving without being served.

Mario’s grandson must decide to either fix the 2 broken ovens or purchase a new conveyor oven that would process 8 pizza’s every 4 minutes and cost the restaurant $4,500 and...