Apply_the_Learning_Curve_Theory

Running head: Apply the Learning Curve Theory Apply the Learning Curve Theory University of Phoenix Operations Management OPS571 Apply the Learning Curve Theory Introduction This paper is based on a simulation about a pizza parlor, named Mario’s Pizzeria in Palm Springs, California. Mario’s pizzeria is known for its original taste and fresh ingredients. In an effort to test his grandchild’s management skills, Mario temporarily gives the responsibility of operating the restaurant for two weeks to his grandchild. If his grandchild is successful, the restaurant will be handed over to his grandchild. In this simulation, I will need to use my business school experience to properly manage the restaurant. My goal is to decrease the amount of time a customer waits and to increase the profitability of the restaurant and minimize cost. The following paper is an outline of the decisions I made to maximize profits by decreasing the amount of time a customer waits in Mario’s pizzeria. Apply the Learning Curve Theory My first task is to decide if the current table set up is adequate for the environment. During week three through four, I decided to use ten tables of four at a cost of $20.00 a day. Tables of four are being utilized at a percent rate of 95.71. I used eight tables for tables of two that are being used at 87.27 percent, this cost is 16 dollar per day. My waiter staff of four is being used at 86.94 percent, the mean is 8.00, standard deviation is 2.12 and the cost per day is $200.00 a day. My Kitchen staff of two is being utilized at 65.14 and the mean is 3.00, standard deviation 1.00 and the cost per day is 160.00. I decided to not change the numbers of waiters and kitchen staff because I did not see a change in profits when I increased the staff members. My second task is to determine if I should repair two broken manual ovens or purchase a new manual oven or a conveyor oven. The price of a conveyor oven is $4,500 at an operating cost of $30.00 a day. It can bake 8 pizzas at a time and the mean processing time is four minutes per 8 pizzas. The price of a manual oven is $1,100, operating cost is $20.00 a day. It can bake four pizzas at a time. The Mean Processing time is 8 minutes per 4 pizzas. I chose to buy a conveyor oven because it can bake more pizzas at one time, this will help will decrease the amount of time a customer waits to be served. The mean processing time of the conveyor oven is 4.00 minutes and will have a positive change on the waiting time. The increased number of customers will generate more cash and increase profits. I also decided to purchase an automatic order processing system, Menu point. This system will help to expedite the purchase by reducing the waiter s processing time by five minutes. The price of this software and hardware will cost $45,000. This decision has reduced the lost sales amount to $480.00 and created a profit of $1,561. The last decision that I made is to rent Cream Puffs, a bakery next door. This decision increased the space at Mario’s by seven tables for four and four tables for two. The wait time has decreased to 2.82 and increased profits to $2,040 dollars. Conclusion The learning curve in this paper is revolved around improving the amount of time it takes to serve a patient and increase sales. Making necessary changes to the amount of tables, upgrading software and expanding a portion of the business to a next door bakery improved daily operations. The initial process data showed a flaw in the amount of wait time for customers, this caused customers to leave and give their business to another restaurant. The improvement in my learning curve has made a significant change in daily operations and improved profits. During the extend of my two week learning curve I learned how to decrease the amount of wait time for a customer. This was a successful venture because I made smart choices that benefit the business as a whole. References Chase, R.B., Jacobs ,F. R., and Aquilano, N.J.(2006,2004,2001,1998,1995, 1992, 1989, 1985, 1981,1977, 1973) Operations Management for Competitive Advantage. New York. The McGraw Hill Companies “Process Control and Problem Solving Simulation” ,2010. University of Phoenix