Learning Curve Theory: Pizza Store Layout Simulation

1470 words - 6 pages

Running head: LEARNING CURVE THEORY: PIZZA STORE LAYOUT PAGE \* MERGEFORMAT 1 LEARNING CURVE THEORY: PIZZA STORE LAYOUT PAGE \* MERGEFORMAT 7
Learning Curve Theory: Pizza Store Layout SimulationOperations ManagementOPS/571August 16, 2010Learning Curve Theory: Pizza Store Layout SimulationThis paper is about the learning curve theory of a pizza store layout simulation. A discussion will be on how the learning curve concepts can be used to test the alternative process against the already existing process. An alternative to the process will be discussed. Finally a discussion will be on how good the initial process data is.Learning Curve Concepts and Alternative to the ProcessWeek 3-4
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00 0.90 0 0

Plax Ovens 58.61 4.00 0.05 60 2

Customers Total Balked Lost Sales ($) Misc/day ($) 880

Group 2 98 12 180 Total Cost/Day ($) 3,009

Group 4 141 15 450 Sales ($) 5,070

Take out 0 Profits ($) 2,061

Cream Puffs Yes

Mario's Take Out No

Average wait (Min) 3.44

Average Queue Length 2.89

There has been a great sign of improvement in the average waiting time for the customers at Mario's Pizza to receive their pizza from the first week until the end of the process. Mario's Pizza had a waiting time of 11.67 minutes for the first week and this average waiting time had decreased to 3.44 minutes in the eight week which is a large decrease of 8.23 minutes. This was done after applying strategies and removing what was not needed in the process (University of Phoenix, 2010).After the fourth week the average waiting time at Mario's pizza was at 5.69 minutes which is a decrease of over half the average waiting time in the first week. At an average decrease of 5.98 minutes in the waiting time would help Mario's pizza reach their goals of decreasing their average waiting time to avoid losing customers. By the time of the end of week six the company had decreased their average waiting time again to 4.14 minutes. This is about 1.55 minutes decrease from week 4 and a 7.53 minutes decrease from week one (University of Phoenix, 2010).There has been a great improvement in the profits of Mario's pizza since week one to the end of the process. The profits started at $1,054 from week one to and great increased rate of $2061 which is a little more than double the amount. By the end of week 4 profits had increased to $1519 which was an increase of $465 from week one. At the end of week six profits had increased to $1,652 which is an increase of $143 from week four and $598 from week one (University of Phoenix, 2010).Mario's pizza can use the average cost for running a restaurant each day for eight weeks to determine ...

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