Applying the Learning Curve Theory

PIZZA SIMULATION
Mario??™s Pizzeria is a mom and pop pizza place that takes satisfaction in their authentic taste and unmarked ingredients, but needs to reduce the waiting time in the restaurant and balance the demand to the service. In the process Mario still wants to preserve the same original flavors and recipes that customers have grown to adore.

The new management of the company, which is me, has to be able to identify suitable parameters that cover the improvement efforts focused on business results. The next step is identified work processes and what the company and clientele require. Then widen measurements for the work development and results, also be able to institute principles and performance goals.

CONTRIBUTING FACTORS

The contributing factors in the simulation are the number of two and four top tables, number of wait staff, number of kitchen staff, number and type of ovens to use, to rent or not rent a neighboring room, and finally the question of whether or not to use a hand held system called menu-point.

The simulation covered the bases of utilization that each factor brought to the table. The simulation also processed the amounts of costs involved in running the restaurant, the sales that occurred, and the profit and loss that the business was creating over the time that I took over.
ALTERNATIVE PROCESSES

The first alternative process that I adjusted was changing the seating setup to eight 4-top tables and twelve 2-top tables. This adjustment increased the utilization of the table while decreasing the wait time at the restaurant and decreasing the walk outs that the store was acquiring. The next alternative process was to run a wait staff of 5 and a kitchen staff of 4. These adjustments caused a higher utilization of labor and once again added to the reduced wait time of customers. These first alternative processes provided feedback of higher sales and above all higher profit.

The second alternative process that I adjusted was changing the seating setup to nine 4-top tables and ten 2-top tables. This adjustment decreased the wait time and turnover ratios once again drastically, provided a more pleasant atmosphere for the clientele. I also dropped the serving wait staff to 4 and the kitchen staff to 3. These adjustments lead to increasing the overall utilization of the tables and the staff, and creating once again higher profits and higher sales numbers.

The third and final scenario for my first run was to change the seating to ten 4-tops and eight 2-tops. I next kept the wait staff the same at 4 but adjusted the kitchen staff down to 2 team members. This final adjustment of trial and error gave an all time high profit of $1530, while decreasing the wait time of the restaurant to 4.93 minutes.

TO FAKE BAKE OR NOT TO FAKE BAKE

The next scenario step was to decide whether or not to purchase a PLAX oven to speed up the process and to use memo point to help out the servers and the kitchen get on the same playing field. In these predicaments I decided to go with both upgrades. These upgrades showed to be a huge profit booster and wait time adjuster. Even though these adjustments were huge expenses for the business, they boosted sales and reduced turnover. This reduced turnover definitely reduces the amount of slander that the business gets for the long wait times.

CREAM PUFFS ANYONE

The final scenario was to purchase the neighboring business Cream Puffs. I decided that since we were running at high utilization on our tables and we were still having walkouts due to wait time that this would be a nice way to take care of those issues. This decision turned out to once again be the best decision by raising our overall profits to $2019 and reducing our overall wait time to 3.08 minutes.

CONCLUSION

The overall conclusion of the scenario is that you can utilize the learning curve as a process of improvement over repeated performances. We tend to improve our performance as we repetitively do a task. Learning curves calculate that improvement. This method can be applied to any activity that is repeated many times (tasks and units of production are used interchangeable).

There has been growth in the process of performance in such a way that units of productions gets doubled in reduced span of time after the definite phase of execution. This is also defined as the rate of learning where steady fraction of reduction in time is taken care of.