Applying Learning Curve Theory Essay

1. Change table distribution to decrease wait time and increase clientele which entails profitability. Originally, wait time including queue was 11 to 12 minutes. By applying these changes, wait and queue reduce to 9 minutes approximately. Also, a $454 increase of profit is attained. 2. Purchase the Plax Oven instead of keeping the old unreliable manual ovens. By doing so, product availability is increase and the queue time is reduced. Using the old manual ovens, pizza took 15 minutes to cook. Utilizing the Plax Oven takes 4 minutes. 11 minutes are saved and faster service is provided to customers. Profits continue to increase. After the addition of the oven, Mario’s Pizzeria is at $1,653 in profit. Lost sales reduced to $345. 3. Purchase the Menu Point System. This system aids in reducing the queue. Wait staff does not have to walk the order over to Kitchen Staff. Thus, queue time is diminished and profits continue to increase since the utilization wait staff is reduced from a 95% to 80%. 4. Rent Cream Puffs versus opening a new counter for pick up. Renting is a better decision since no additional operating costs would be required. 5. Renting Cream Puffs allows for the capacity of tables to increase; adding 7 tables of 4 and 4 tables of 2. This aids in reducing both wait and queue time. Wait time is at 3.21 minutes and Queue is at 2.71 minutes versus the original 11 to 12 minutes of the entire process. Profits increased to $2,040 while the lost sales came to $690. Analysis of Alternative Process in Effect Mario’s Pizzeria simulation is a tool that aids in understanding how to apply the learning curve theory. The simulation begins by illustrating the current process used at Mario’s Pizzeria and describing the current issues this pizza parlor must address in order avoid a greater loss of profits and loss of customers. The simulation allows for an alternative process to be created and implemented. By creating an alternative process, one can then analyze why one process is more effective and efficient than the other. At the initial start of the simulation, the table utilization is at a 97% and the waiting time is between 11 to 12 minutes. The goal is to reduce the wait time in order to increase customer satisfaction and increase profits. To do so, the first step was to change the table distribution. By simply rearranging the table set up, customers wait time reduced significantly; wait time reduced to 5.36 and the queue to 2.57 minutes for a total of 7.93 minutes. This means that the current process of the table set up simply created an unnecessary bottleneck approach. In order to prevent this, a performance process was changed and created a more effective way of making customers stay. This is sort of change can be used to illustrate how the learning curve theory is applied. According to Chase, Jacobs, and Aquilano (2006), the Learning Curve Theory is based on three assumptions: 1) the amount of time required to complete a given task or unit of a product will be less each time the task is undertaken, 2) the unit time will decrease at a decreasing rate, 3) the reduction in time will follow a predictable pattern. By applying this theory to Mario’s Pizzeria, it is evident that a small change goes a long way. For instance, the utilization for tables decreased from 97% to 95% on tables for four, but in tables for two the utilization was 88.9%. Although customers still walked away, the number of those who left was not as high as the initial number during the first week. Mario’s Pizzeria continued to face issued when the manual oven broke. The wait time for customers was affected because the process slowed down. As a manager, one has to take immediate action to solve the problem at hand through thought process in order to avoid high additional cost to this small business. If the learning curve theory is applied correctly, Mario’s Pizzeria will not be affected dramatically especially since they have dealt with previous wait time issues. The learning curve theory states that the more a task is done several times, the less likely it will be that a similar mistake will occur. In this situation, the metric that continues to be affected is time and the dissatisfaction of a customer having to stand in line for a long time. By not using this type of performance process and to avoid reaching the upper control and upper tolerance limits, the solution was to replace the manual ovens and purchase the Plax Ovens. The Plax Ovens cook more pizzas in fewer minutes than the manual ovens. If the current manual ovens were not replaced, the cooking time will be higher and fewer pizzas would be available, which in turn the queue would not decrease for the customers. Customers will continue to wait for fifteen minutes versus four minutes. Another option that was used in the alternative process was the purchasing of Menu Point Systems. This system will allow for the process time to drop significantly. Although, the cost of the menu system seems high in price, the return of investment is of 125%. This percentage indicates that in the long run the system is worth its price for the pizza parlor. By implementing this Menu Point System, Mario’s Pizza parlor decreased it wait time to 3.76 minutes and the queue to 2.62 minutes. Additionally, the utilization of their wait staff was at 60 to 80 percent. The utilization dropped since the wait staff no longer had to walk the order over to the kitchen staff. A change was made to the queue system. A step was eliminated in the queue section, thus, saving time. By implementing, both the Plax Oven and the Menu Point System a profit of $1, 622 was earned. If this two performances process were not in place, Mario’s pizzeria would be back to step one, waiting time at its upper tolerance and upper control limit. These are two factors that should be avoided at all cost when trying to aim for total quality management in a business. Implementing the Plax Ovens and the Menu Point System, the learning theory curve is in effect. Now, when the order is placed, it goes directly to the kitchen staff, the kitchen staff then process the order through the Plax ovens which are quicker in cooking time. Finally, after all the great implementations and changes made to the pizza parlor, business continues to increase and more decisions were necessary in order to keep the timeliness and customer satisfaction. Mario’s pizzeria rented the business next to the parlor instead of opening a pick up counter. If a pick up counter was chosen as an option, operating cost increase. However, renting Cream Puffs was the best option. Renting the business next door allowed for capacity of tables to increase which in turn increased profit and lessen the overall processing time of a customer. In the end, Mario’s Pizza Parlor profited $2,040 and the grandchild earned the trust of the grandfather.