Mario's_Pizzeria

Learning Curve Theory Team A Brenda Cortes, Oscar Herasme, Katrina Lee-Jones and Garfield Rose OPS/571 June 7, 2010 Shawn Harrs, PhD Learning Curve Theory Mario’s Pizzeria has been in business since 1950(University of Phoenix, 2002). The owner takes a conservative approach to business (University of Phoenix, 2002). From the Pizza Scenario simulation, Team A will define the existing issues, measure processes and performance, analyze the cause of the customer wait time, and improve wait time and quality control. Team A will also complete various scenarios to determine the most efficient method for decreasing wait time, increase customers, and increasing revenues. There were a number of points of process performance data for the performance metrics such as: 1. Total number of customer complaints. 2. Total number of customers. 3. Operating costs, such as manual oven vs. Plax oven, and staffing, such as waiters and cooks.  4. Table Capacity/configuration (groups of four and groups of two).  5. Average queue length.  6. Average wait time.  7. Sales  8. Profit.  9. Losses Mario’s Pizzeria has lost several customers because of excessive wait times and seating accommodations. Prior to the study, the tables for four showed the highest utilization at 99.56%, and subsequently 37 groups of four balked and left the restaurant without being served (University of Phoenix, 2002).   Team A approached this issue by changing the distribution of the tables to 20 tables of four, and 16 tables of two. With this change, the utilization of tables for four changed to 95.53% and tables for two changed to 87.83%. This adjustment resulted in 14 groups of four and six groups of two left the restaurant without being served. By changing the table accommodations, Team A was able to reduce the average wait time for the customers from nine minutes to five minutes and 40 seconds and a queue length of 2.61. This modification proved to be most effective in finding a solution to reduce the wait time.  With this, a profit of $1,488 was made and the loss of sales continued to decrease.  In this scenario, both the wait staff and kitchen staff were maintained. The team decided to focus more on the reduction of wait time as a first issue to be improved. The new configuration has also increased the restaurant’s capacity. Subsequently, this had a positive effect on the number of clients who had decided previously to leave due to long wait times.   The learning curve can help the waiters become more effective each day by repeating and improving the process.  With this data collection team A can recognize errors and behaviors according to their daily experiences and can continually improve processes as part of organizational learning (Chase, Jacobs & Aquilano, 2006).  With a daily report of table utilization and wait time, this process can enhance regularly.  These reports will show how we can improve according to customer demands. Mario’s Pizzeria has manual ovens, which need to be replaced. They require a longer process time than alternative ovens that are available. Instead of purchasing the same manual ovens, Team A decided to replace the manual ovens with conveyor ovens from Plax. This alternative process reduces cooking time from 15 minutes to four minutes. The purchase of one conveyor oven triples the capacity of the kitchen with just one machine instead of two, improving kitchen staff performance through assistive technology.  This action helps to expediting the speed of service without affecting the quality of the products. It also allows Mario to serve more customers and increase turnout at the restaurant. The next process Team A made adjustments to is customer orders.  Team A decided to purchase a Menu Point System that reduces steps in processing orders between the wait staff and the kitchen staff. The purchase assisted the waiters in processing the orders down from 13 minutes to eight minutes. This resulted in a dramatic reduction in wait time for customers. This adjustment reduced the average wait time for the restaurant to 4.38 minutes and the average queue length to 2.49 minutes. This solution ensures the utilization of all servers in the restaurant ranges from 60% to 80% and little to no groups balked left the restaurant unhappy. The Menu Point hand held data collection system also provides the operations manager with specific data of the time it takes to enter the order on the computer, more dishes requested, and wait staff with more efficiency.  This will provide more detailed information to apply the learning curve concepts and obtain better results with constant improvement of the process.  With the reduction of wait times and the addition of new ovens and a Menu Point system Mario’s Pizzeria’s profit and productivity have increased. With the additional efficiency, Mario’s Pizzeria has the opportunity to expand, team A made a decision to rent the Cream Puffs, bakery next door.  By renting a new location, Mario’s Pizzeria permits a continuous growth with additional tables.  Reducing the number of customers that leave the restaurant is a main objective.  The increment of seven tables for four and four tables for two will permit Mario’s Pizzeria to serve more customers in less time and reduce to the minimum balked. This adjustment will reduce wait time to 3.39 minutes and the queue length is 2.84.  The learning curve practice continuous allows staff to keep focus on restaurant objectives for Total Quality Management (TQM).           References Chase, Jacobs & Aquilano (2006) Operations Management for Competitive Advantage, 11th Edition. The McGraw−Hill Companies. Operations Strategy and Managing Change Technical Note 4: Learning Curves Experience curve or learning curve. (2006). In Collins Dictionary of Business. Retrieved from http://www.credoreference.com/entry/collinsbus/experience_curve_or_learning_curve University of Phoenix. (2002). Pizza Store Layout [Computer Software]. Retrieved from University of Phoenix, Simulation, QNT-571 Operations Management website.