Learning_Theory_Assessment

Running head: LEARNING CURVE THEORY Learning Curve Theory Jodi R. Zachary University of Phoenix Introduction There were many business decisions which had to be made in the “Mario’s Pizzeria” simulation in order for the business to maintain success and be more profitable. The following paragraphs will examine the process performance data along with the initial and alternative processes available to the restaurant. The learning curve concept will also be explored and tested to compare the alternative against the existing processes. Process Performance Data There are several points of process performance data for the performance metrics identified in the Mario’s Pizzeria simulation. Several points worth mentioning are: • Total Number of Customer Complaints • Total Number of Customers • Operating Costs o Manual Oven vs. Plax Oven • Staffing (Waiters and Kitchen) • Table Capacity o Groups of 4 o Groups of 2 • Average Queue Length • Average Wait Time • Sales • Profit • Loss Combining the data received from the aforementioned areas will provide an idea to management about each category which directly affects the total performance metrics. The results from the metrics will determine whether or not Mario’s Pizzeria will become more efficient in managing the wait times by ensuring they are not too long, but not too short. Alternative Consider to the Process There were a variety of options and alternatives to explore with Mario’s Pizzeria in becoming more economical in managing the restaurant. Major alternatives to consider were in the areas of staffing, table capacity and the oven utilized. The staffing could be increased or decreased to determine how quickly the orders could be placed and the wait time for preparation. The table capacity of 2 and 4 persons could be modified as best needed by the customers that were dining in the restaurant and oven types factored into determining the processing and cooking time for orders. The first alternative process decisions were whether or not to change the distribution of staffing, tables and to establish a priority rule. This decision would increase the tables for 2 to eight, with the tables for 4 at ten. No change would be needed in the area of staffing, which would remain at 4 waiters and 2 kitchen staff. Making these changes would drop the utilization of the tables for 4 from 99.56% to 95.82% and the tables for 2 would change to 88.89%. As a result, customer complaints would go down, the average waiting time would decrease from 9 to 5.89 minutes and the queue change to 2.62. A satisfying profit would be earned in the amount of $1,519 with sales lost at $480. This is a decision that the Pizzeria’s management should be able to accept as the waiting time has reduced considerably, a reasonable profit would be made, the loss of sales would be reduced and a utilization of all the servers is not very high. Making changes to the staffing could also be an alternative however, Mario would not be happy with this decision as increasing them would have only added to the operating costs and decreased the profit gained. The second alternative process decision was whether to purchase more manual ovens or a new plax oven due to issues with the current ovens which resulted in an increase in processing times of the ovens and waiters. The decision was made to purchase one plax oven and the Menu Point system. Management was happy with this decision since there were very few complaints, the waiting time would be reduced considerably as a result of the new oven, the new system shortened the processing time of the waiters and the average waiting time in the restaurant, and the profit increased to $1,695 and loses decreased to $285. Increasing the purchase in manual or plax ovens or not purchasing the Menu Point system would have been alternatives which would not have made Mario happy because the operating costs and losses would have drastically increased while decreasing the profit of the business. The third and final alternative process decision was whether to rent the bakery space next door, or open a takeout section within the restaurant to accommodate more customers. The decision chosen was to rent Cream Puffs since it would increase the Pizzeria’s capacity by seven tables for four and four tables for two and cost less to implement. Mario was very pleased by this decision, loving the flexibility, which decreased the average waiting time further and increased profit. Application of the Learning Curve Concept A learning curve means that as the steps in a process are completed repetitively, less learning is needed and the process will quicken and become more efficient. This concept can be used on an individual or company basis to test the alternatives against the existing processes and determining whether or not improvement and efficiency within the company increases or decreases. The initial process data was not determined to be efficient and resulted in high wait times, limited seating and lengthy serving time. As a result the restaurant losses began to increase and customers left un-served and dissatisfied. By exploring the alternatives and the process performance data it was able to be determined that with a few adjustments Mario’s Pizzeria will have long-term success. References University of Phoenix. (2010). Pizza Store Layout Simulation [Computer Software]. Retrieved from University of Phoenix, Simulation, OPS/571 OPERATIONS MANAGEMENT website. .